what a show thanks ever been. great see you gary b. smyth rachel el, >> three words sunday morning pooch. >> on sunday. have a great weekend everybody. for being here. stuart take it away. >> are you ready for this trump versus the world and the action is about to begin. our president is taking his hardline on trade to the g7 summit he's actually on his way. there's already been exchange of tweets france's macron warning that america might be left out of the final, it has not g7 but g6 plus one. president trump not letting that go by without a response. he's going after the, quote, massive tariffs the years and canadians levee on us, and trump is leaving the summit early. he's flying off to singapore for the summit tomorrow morning. you could call that -- well a hostile trade environment -- investors not that concerned

apparently there's been some stock selling take the dow down about 80 odds points of the opening bell and with all of the uncertainty who wants to buy right before a weekend when literally anything can happen. the outraging story of the day. google will not allow its artificial intelligence technology took used in weapons. stated differently, google won't help defend america. my opinion , google founders worth more than $50 billion. they should be hold before congress to explain why they don't have country that allowed them vast wealth and power and freedom that is my opinion. it is a big show "varney & company" about to begin. ♪ >> the trump macron bromance is

going to be over -- meet pavers in the 11:00 hour this morning you'll see it trump tweeting this morning -- here we go. canada charges the u.s. a 270 tariff on dairy products they didn't tell you that, did they? not fair to our farmers this came out too looking forward to straightening out unfair trade deals with the g7 countries if it doesn't happen, we come out even better. then the president got upon camera and said this, roll tape. >> i may leave a little bit early. it depends on the timing but i may leave a little bit early. canada charges our dairy farmers 270 tariff. we don't charge them. we have massive trade deficit with almost every country. we will straighten that out and in the end we'll all get along. [laughter] >> in the end we'll all get along. well you're going to see the trump macron interaction on our

program literally anything can happen. all right let's have a look at futures. how we're going to open up this friday morning i'm going to call it a modest loss and quite a big loss for technology stocks. brian is with us chief economist with trump trust advisors brian i cans unthe reluctance to buy stocks with two contentious summits within a week. right? >> right. absolutely. stuart, you know, i mean, it's a famous line right markets hate uncertainty. and i'm not going to argue that there's not uncertainty out there. but i do believe once we move through all of this we're going to end up with lower tariffs around the world. the united states on average has lower tariffs than canada, japan, china, south korea, the e.u., we have lower -- we have the lowest tariffs in the world all president trump is trying to do is to get countries to lower their tariffs and i just look at this foe outrage we

hear from foreign lead percent because he wants to put a tariff on, their tariffs are already higher they immediate to cut their tariffs -- we're at 3.5 canada is at 4.5 on average. e.u. has got 5.2 tariff on average. china is 9.9 . they need to bring them down. >> okay. and i sure hope world doesn't go up in tariffs and i don't think we will. i think we're going to see tariffs come down in the years ahead. >> more optimism from brian stay there for a second back to you in a moment staying on g7 throe. the trump macron bromance i said before surely it is over. look at that. that was -- let's see how it looks when they meet face-to-face in our 11:00 hour. in the white house -- my how times might be changing. lawrence jones is with us with the campus reform people. what do you make of the president's very hardline?

>> well, i'm not sure if it's a hardline. i think that president starts from this extreme position. i'm a free trader. i don't believe in believe in tariffs because i think they're attacks for american people and undo a lot of good that the president has already done as it relates to tax reform and getting rid of regulation. but i think that president starts at this hardline position, and he just wants to get something. to improve the trades a little bit. i think that there's this tendency of the media to hype this up because i know macron they didn't like the bromance or think that he was going to be a president to get along with world leaders, to begin with -- so i think we should just take a step back and allow trump to be trump in this situation. >> he negotiates. right. he does same thing already every time starts out a very, very strong position, he is prepared to give a little bit. but he wants something. bottom line. >> at the a end of the dayst it is always for the best of the american people that's one thing that you can give this

president -- credit for, and i'm confident with the cut e low of the world in a white house a free trader that he won't go go to extreme but a negotiation tactic and i was critical when he started this whole tariff thing but i do think that the president has shown that he is -- you know, successful in this type of strategy and negotiation that has been -- >> lawrence stay there for a second more for you in a second and back to the economy with the the latest fox news poll. look at this. more than half say they approve of the president handling of the economy 52% and 59% say they're optimistic about the economy. brian west these numbers seem to confirm you've been positive about the economy for a long time this confirms the people's view of the economy. >> exactly. we have expected gdp to accelerate this year and we're looking for 3.2% for the year as a whole.

and that's pup from 2% which we have for eight solid years one of the slowest recoveries and at the end of this month in june we're looking for four and a half percent real gdp growth. 4.5%. it is beginning to be a -- a huge quarter. that's when -- what's that the second quarter the one we're in now? >> one we're in now that ends in june so we have 2.2 for the first quarter. then we're going to have 4.5 you put the next two quarters together we think we're going to see 3.2 for the year so that's a 50% acceleration in the economy from this slow growth we've seen for the past eight, nine years. so -- on top of that -- yeah. hold on a second i have to -- just this huge number that comes from the federal reserve. it says that household wealth has talked 100 trillion for the first time. what do you make of that? >> entrepreneurship is unbelievable, isn't it stuart?

we have created massive new stock market wealth in the last 18 months or so. house prices are are going up. we're seeing the average american household -- sees income going up. sees wealth going up and it shall america is winning. and that's the amazing thing about all of this. and so yeah, there are a lot of fights going on. don't forget ronald reagan put tariff on cement conductors george bush put tariffs on steel every three or five years it is on canadian lumber and all of this is just because what's going on is the whole world is moving and has been for 75 years to lower tariffs and i think this president is going to continue that. and what that means is, wealth will continue to rise. and so -- we live in a great environment. stocks by the way, a still cheap investors should still stay long. the fed can raise rates. they need to.

they're too low. we're going get inflation they don't raise them. i think that stock market looks good and that -- that wealth number 100 trillion is going to go even high nor the years ahead. >> brian west bury voice of reason are and optimism as well thank you very much on a friday morning. appreciate it. thank you, much. i want to get to hawaii and the kilauea eruption. it is now officially the worst disaster in hawaii's state history. tell me more, ash many >> -- >> 600 homes because lava continues to pour out to take away homes and then just pours into the nearby ocean. this snot going to -- you know the scientists and geologists have absolutely no idea when it is going to end show nothing sign of since eruption on may 3rd triggered including 6.9 earthquake ash into the air 30,000 fete and we've had 9,000 earthquakes since then and rumble on 600 homes two seaside communities

completely obliterated the problem is those evacuated thousands, it's not cheap. just to repair one mile of road that has been destroyed is $5 million. so there's going to be a lot of money there's needed to help these people with no home to go back to and they have no idea where their future lie. >> some of that video -- mesmerizing. it is essentially that lava stew is going into a bay and filling it in as we watch it. >> wow. on camera. it's -- remarkable. thanks very much. where are we going on the market with we open in 20 minutes time we'll be down but not much. down about 70 odd point for the nasdaq falling back again technology stocks down this morning. all right, then look google. really caving to the pressure on its own employees. says it is not going to allow its artificial intelligence to be used by our military. so one of the most valuable american companies founded by multibillionaire americans will not help defend america.

what do you think about that? pope francis holding meeting next week with executives from the world biggest oil companies he wants them to start taking climate more seriously stop it right now. politics unemployment at hispanic lows. household wealth high, but nancy pelosi keeps hocking the trump economy. you'll hear her latest dig at the president in a moment. and some very sad news to report for you. select chef and tv host anthony bourdain found dead in a hotel room in france and he committed suicide but he was 61 years old. ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪

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>> now this is premajority look at apple. that stock is down i believe it's below one or right at 190 there's some question about part suppliers and how many parts and

how much how big orders are for those parts. that's affecting some of the parts supplies as you can see, they're all down. a is in the news this morning. let's get back to president trump's comments, before he left for the g7 summit in canada listen to what he had to say about involving russia in future summits. roll tape. >> i would recommend and it's up to them but russia should be in the meeting should be a part of it. you know, whether you like it or not and it may not be politically correct, but we have a world to run. and in the the g7 which used to be the g8 they threw russia out they should let russia come back in. because we should have russia at the negotiating table. [laughter] >> wow. what will the conspiracy theorists make of that. got that line from ashley. come in republican from indiana, involve russia -- make it the g8 again. what says the good congressman

rita? >> i agree with the president let's give this man some slack. he is -- he is turning from night into day our position in the world. this idea that president obama had this we were going to lead from behind which stu is another way to say we're not going to lead president trump is turning on its head. you look at north korea, look what's happening there. let's give this man some space if he says to have russia back to the g7, 8 again i'm for it. i wonder what conspiracy nears is will say about that. let's wait until they say something. house had minority leader nancy pelosi really blasting the trump economy. roll tape. >> terms of national stability and america's working families, unless we have an increase very significant increase in wages and -- bigger paychecks we're going to increase the frustration america families because they'll be

saying hip hip hurray unemployment is down. what does that mean to me and my life? i need a bigger paycheck. >> all right. how about this? new polls show an up hill battle or for the gop in november. look at that we've got -- democrats leading republicans in a generic poll -- kind of genetic 4839 that's the new fox poll. congressman rikita what do you do about that? >> first of all i get up every day, and thank the lord for nancy pelosi. she is the gift that keeps on giving. i mean whether it's the crumbs act that thousands dollars back into peoples 'pockets back, but to make those bonuses tax free for 20189 or it's this nonsense. unemployment is at a record low. the last 20 years -- stu you know this. and may alone we have quarter of a million new jobs.

so the nonsense about stag nangt wages you get unemployment low and then wages will go up naturally as supply and demand dictates the fact of the matter is nancy pelosi and obama socialist policies haven't been able to do anything near as good, in fact, they're reverse of what's happening now. and -- president trump in a year has turned this country around. has turned the economic forecast arranged, and i think we're going to be rewarded in the fall for it. >> thanks for joining us sir. >> thank you, bye. >> now i have a bee urnghtd my bonnet google won't allow artificial intelligence in military weapons give me quick details on this. >> they pulled out of the project -- with the pentagon because they said they didn't want ai artificial intelligence recognized, though, being used on drones. that used this image recognition technology, that actually is designed to save lives because it can better identify tariffs

while cutting down on collateral damage, however, the bigger picture is here. the google says we have a mantra of don't be evil. and apparently sharing their breakthroughs with a.i. breaks that and release 8 word ethical bottom line and bottom line is they want to manage a.i. and do not want to share it with pentagon if it is going to be used in weapons. >> lawrence jones fit to be tired. >> i have to mention this is how we got president trump right here. because this is an anti-american stance. it is our job as businesses and people that are in the private sector to contribute to this country and they can do this by saving lives and for the employees to be able to run companies at this point. i mean, i don't know where we're going. >> exasperating. google says don't do evil it is clear silicon valley doesn't see the evil in the world and their bubble world and you know, some other companies going to step in or china or russia will step in and do technology. >> i shall have a forceful

editorial and it is in the 10:00 hour i can't wait. check the futures market where are we going on opening bell down about 70 point that's not a huge loss. president trump says he's considering another pardon -- this time from muhammad ali you'll hear what he had to say about that, with next. how do you win at business?

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>> that is a go nowhere commodity hovering around 1300 an ounce and gold is still at 1302 as we speak. now president trump he met a lot of news this morning just ahead of the g7 summit including this. he's considering a pardon from muhammad ali roll tame. he was not very popular then and mile is popular now. i'm thinking about muhammad ali. >> lawrence jones nobody has been to complain ab pardon from muhammad ali are they? >> i'm greatest athlete ever i love the pardoned because he doesn't wait until the end of the presidency to get this done but we have to get from celebrities and people connected to celebrities from being the only people to give partens.

the president should say thousands of them cooling in. his advisor should say these are good ones and president look at it saying my gut tells me i meet or meet their sentence. >> you could do judicial reform through pardons he's evolving when it comes to criminal justice reform as i often say if he really wants to get become at jeff session -- start doing criminal justice reform because there's no one that is more posed to criminal justice reform prison reform than jeff session. >> welcome to new york lawrence you did a fine performance on a friday morning see you again soon. [laughter] we ever have a bromance -- [laughter] we're working it. check the market down about 70 point at the opening bell remember please -- we're coming into a weekend lots of uncertainty with two contentious summits in the works. that's why the market is down a bit i think -- we'll be back.

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>> in 30 seconds trading begins on wall street and close out what has been extraordinary week. the key point to look at today is those big tech companies. we followed them for years, they've gone straight up.

yesterday and the day before to some degree they took a dip so here's the question do you buy the dip? if you bought the dip in the past, you did well. because big tech went straight back up again. well it work this time let's see. it's now boom, 9:30 eastern time on a friday morning and we are off and running. we should be down 60, 70 points in the very, very early going and we're down right now 39 point. the s&p is down 5 points and so far i don't have a reading on nasdaq is looks like unchanged that can't be right but a reading shortly we have opened slightly lower and dow jones average at this pingt and nasdaq has now opened 6 points lower but the dow is only off what 29 points that's not a big loss when you consider the uncertainties of surrounding the g7 or the headlines. i mean, much uncertainty and we have an even split on the dow 30 are up and half are down roughly speaking. the yield on the tenure treasury for benefit of our radio

listeners at the 2.93%. we've got close to 3% yesterday. down to 293 today. again, now let's see how the tech names have opened up. down facebook amazon, with apple alphabet on downside microsoft a a bounce back but big techs are lower this morning same question are you or viewers are you ashley liz and david dietz going to buy the dip? we'll see. elizabeth macdonald ashley webster david dietz awflg them here on a friday mornings. you first, david. if you bought the dip in the past you did well. should you buy the dip today? >> unfortunately this is not dip with a capital d and seen two days down nasdaq set a record. i mean, i think the problem is they have great businesses, but what will regulation mean and certainly the news we're seeing about another privacy breach from facebook antimilitary anti-our own government from -- coming out of google and, of course, apple talking about cutting backed or terse that

doesn't bode well for a tip you're buying on. >> amazon back to 187 and amazon is 16 -- case retreated from 1700. we've got couple of orr big name stocks on the downside this morning. let's see if they are bought -- let's see how they close. now, trade jitters, i mean, how many times have is i read that headline? trade jitters? look to me david let's go to yours look like we have uncertainty let's put it like that uncertainty through the weekend about g7 and on into next week about the meeting. smg well i think certainly there's uncertainty but what we have seen now in the past is the market seem to be in to this geopolitical uncertainty and trade war uncertainty i think the good news here is investors are focusing on fact that earnings could be up 19%. year over year which, of course, is mothers heiling for stock prices. >> yeah, i mean look we've got all of the hostility about traitdz we've got a fights on our hand here. >> we do.

let me say one point jpmorgan chase says one in a trillion off value already since march of the s&p 500. wait for it. that's a value of all of the u.s. trade to date. one in a quarter trillion it's so overblown it doesn't take, wait a minute jpmorgan announced take into account have oil majors have gone down retail ice stocks have gone down biotech songs in that index have gone down so this is overblown analysis and hysteria picked up by other media and i think it is a analysis and way off. it i mistakes correlation for causation off-base. intoompleghts this g7 meeting and absolute flat out trade hostility. and dow industrials are down what 18, 19 points. that progresses because once mr. trump gets there there's more rhetoric and we'll see. but bottom line is i think u.s. is only game in touchdown with

the economy. and slowly going along japan we know about about -- the best place to put your money. >> watch out for the overreaction. we'll attack that. show me google please. how is google trading as of this morning because it has more or very bad i think very bad publicity. not going to allow its artificial intelligence technology to be used in weapons. authorized, what i'm saying is they refuse to defend america. i think at respondent that reflects on the value of the stock. what do you think am i out of bowngdz here? >> you have to wonder what is google thinking and how do they get paid not for contracts they live in a bubble world of don't do evil. apparently they doapght see evil that the -- about good guys in our military are fighting and won't other companies step in and pick up contracts isn't russia and china and other countries doing this kind of work? i mean i don't know why they're putting themselves on the sidelines here and can think military is evil i'm sorry the military protects them and what they do in silicon valley.

>> i think and lare rip paige founders both worth more than $50 billion. put them in front of congress let's see what do you have to say about not defending america when you're über rich and you run a very rich corporation all of it american? and you won't defend the country? >> their work has protected civilian casualty tried to stop it. >> let's bring in the voice of reason what about affect for ?ok >> wall street will see right through this basically they're walking fine line between several audiences one is the engineer who is work for them who are very upset about project and helping the united states. and, i mean, helping artificial intelligence potentially for the military. this is also going to play well in china which is a very important market for them and are they really drawing a bright line against using ai in the military. just looking at all 8,000 words. it is fuzzy there. stuart: i won't look at all of the words but i'll take your point dow industrials are now

down 50 points. that's after five and a half minutes worth of business 51 there. 25189 change at the top verizon. executive vf has been appointed new ceo -- the market is down take it is down 1% there on verizon. that is at 48. you know, some of the these rei tail stocks have been doing very well recently look better sales -- the stock is up okay 1.5% at 2740. there's more reare tail stocks which are doing well bring them to you later. 21st century fox just hit an all time high right there at the open -- 3990 on 21st century fox parent company this have network. look at the price of oil holding at 65 a barrel. gas down a little -- 293 is the national average today. it is beginning to retreat from that near $3 a gallon level more privacy problems with facebook -- it had a software bug for ten days in may. that set the audience for people's post to public --

even if they have intended to share them with just friends. again, will that affect the stock doesn't it it, this is a stock. >> at the a end of the day people still like facebook. ting they can argue that this was an innocent mistake not a malicious intent to steal privacy but a software error gotten fixed my guess is people won't be talking about this in a month. >> stocks at 187 the high was i think 195. >> in the headlines -- exactly. yeah. how about mcdonald's -- cutting jobs to cut costs -- what are they doing? >> they're going to be cutting corporate jobs of the regional offices mcdonald's recognize ares that it has too much bureaucracy so middle management jobs lost. how many we don't know they haven't told us but in the middle of a three year turn arpd plan because u.s. lost market share to rivals, and this is one of the ways they streamline half a billion dollars worth of what they say administration costs -- >> you know, the the strategy is

to have cheaper product on dollar menu the question is why not put french price to have more peopleing it. looking at the dollar men eye i would have bought it -- >> pay more -- exactly. how do we get on to discussion of the dollar menu and french fries. how do we do that? never too early to eat a french fry. >> look at the stock 169 down 10 cent ares on a tear. really has. hey watch out tesla. mercedes beans launching electronic trucks big guys are ramping up electric here. >> interestings they believe that tesla claims on its 18 wheeler being electric an how far it can go 500 miles get another 400 mile bos on just a 30 minute charge they believe that is absolute rubbish they're going to buy two take one apart and test it because they don't believe it can be done. that's interesting. but look bringing out their own version to do half of what tesla

is semielectronic truck can do. >> look at tesla now up $7, 323 after announcing they're going to build ten of the factories to build batteries which is -- i think it gained about $30, $40 since that announcement on batteries. usage. >> i did not -- in the market please -- an asian paper reporting that apple is asking its suppliers to make 20% fewer parts for iphones. >> okay. the review is often bearish on apple understills apple. an the production here is what's going on. they're saying apple or some anonymous sources are saying apple plans to make 100 million in the second half and made 129 million in the second half of last year. all right so then they're saying off of that 100 million 20 million less dropping it to 89 million . but market believes it. a time and again the the bearish call to asian review are wrong

because apple is always conservative and it is production supply chain. and it's i think this is off base for apple -- off-base says liz. watch review for years -- years call it wrong. on apple. j let's remember o.c. that the world smartphone market is down. and -- a big 20% down drift that's sizable. listen they're saying again 100 million in second half were apple that's what he's saying 129 many million iphone sals last year in the second half. >> apple defender elizabeth macdonald. >> and other question is to what extent to try to bring in house some of their part production and, of course, driving apple stock is not iphone sales but the potential for getting into services, plus that massive stock buyback. >> so buy it at 190? >> any pullback on this news absolutely. >> you would. all right krkt time lemonade buy fine and permit fees for kids

lemonade stands some kids have been prosecuted not prosecuted but no license. >> tax dollars at work in the -- >> incomes craft hines which makes country time lemonade and pay any finings that kids have to pay. bottom line is they shouldn't have to in the first place. put into the context kraft heinz struggling with outdated consumer brands with with products that are perceived to be less healthy so trying to get attention in a different direction. how many times does kids lemonade stands have to be fined. 1.2% the cheapest pr move ever in history. and it worked -- brilliant it's that time. david dietz i'm sorry but 9:41 eastern time and for an extra minute and a half you're out of here. time is up. thanks very much, dave. let's see down now 37 points for the dow strils that's it with all of that trade tension we're only down 30 point. holding right there at 25. .

2 what does that tell you quell said. extraordinary story a geologist think its he's found a huge oil deposit in alaska. he think he's found it yes it is actually. he risks his own money to cross tun da in alaska and set up a drilling rig he hits what was a gusher -- he did ab friend of mine this guy on the show he risked it all and he won i'll call him american hero talking to him in our next half our a different story from venezuela yes sitting on a huge pile of oil they wept into chaos that they don't sphrur or workers to get to port and sell to somebody. full details on that one as well. here we go. before i had the shooting,

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15 minutes on a day when we're supposed to be inundated with trade tension and down only 46 points a fraction .19% that's it. how about this? this caught my attention. sprint has a 15 dollar a month unlimited plan. suzanne lee is down there at the new york stocks exchange there's got to be a catch. what? >> yeah. there are always catches. they're not that bad, though, in this plan they're calling the lowest when it comes to the tell come wars. okay the first catch is you don't get mobile at the timering no free hulu or hd streaming services and no monthly installment plan to a pone. springt will not pay you to get you out of current contract and only works with your phone so stewart i think you have an iphone 7 that works but no flip phone okay and they will not give you a discount in order to upgrade your phone in the future. but just shows you how severe

competition is to get them to subscribe. >> an awful lot of catches referring to my flip phone which i used to be. now this -- pope francis meeting with some of the world's leading oil company executives -- talking about the dangers of climate change. john is with us former president of shell oil -- did you ever meet with the pope when you ran shell may i ask? >> no i did not stuart, i missed that opportunity. >> okay. are we going to see the oil company executives cave to any demands made by the pope? >> well i think it's a good opportunity for his holiness to learn how many billions of people have been taking out of poverty and countries done well because of energy investment and energy development. i don't think the holy father understands fully that the reason that world has achieved such a level of wealth and creative opportunity is because of energy. and there's still two billion

people in the world that have almost zero access to energy as we know it. so yes climate change is an issue, and the energy companies will hear wholly father view that's fine but i think the holy father and his associates need also to learn about the scale, scope, and importance of energy poor people all over the world. >> tough to talk back to the holy father, though, isn't it? he'll state his case. will he executives state their case forcefully or begin, will they cave will they say yes holy father you are with right. you're rights, you're with right taking steppings here and that step there. they won't put themselves out forcefully will they? >> well, the oil company executives stuart have to render under caesar that which is caesar wool holy father can render under the lord which is the lord and i think they'll have a spine when they go in there because holy father completely missed the importance of global development to the poor people of the world.

and yes there are tradeoffs in the climate arena that have to be dealt with over time. but to suddenly fossil fuel in the world of tomorrow makes absolutely no common sense whatsoever. and we cannot live without common sense. >> i'll -- i'll toast that one. [laughter] better -- it's, you know, so bad in venezuela absolutely into chaos, they have got a back log of oil deliveries i don't know if they've got the infrastructure of the workers to get the oil out. that's no surprise to you i'm sure. but it seems to me that venezuela will never get its oil out. i mean, venezuelan oil is essentially off the market now, with isn't it? >> it's getting there. but when you're at the bottom of a hole and you don't know when to stop digging you're going to only create a duper problem and that's exactly what these incompetent lackeys appointed by the government are now doing. they don't have a clue how to

get themselves out of the hole they're in and a it's unfortunate to have the head of a military organization running a major oil company which was the developing world and now it's all but toast. you're right there's 80 some vessels waiting for oil some times three, four po months delayed -- off the coast of venezuela. and they've lost the right to some of their infrastructure because of the arbitration loss to conoco phillips and they are -- finding themselves really -- you know on a ship without masks without sails and sailors and going to get worse much worse -- than it is today before it gets better. >> hard to see how it could get worse. john, thanks for joining us sir, always appreciate it. where are we on the big board down 40 points on this friday morning after 20 minutes worth of business. the department of justice dealing what might be the final blow to obama care, really? they say if the health care law

is challenged in court they will not defend it i'm told that's a big deal. so we're getting the judge on the phone to sort it out. we'll be back. [music playing] (vo) from day one, we always came through for our customers. 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.

>> president trump's justice department says obamacare is

unconstitutional. judge napolitano joins us by phone. did the department of justice just kill obama care? >> i don't think so good morning stuart good to be with you i don't think so i'll tell you why because be the court will not hear a case challenging the constitutionality of a statute when there's no one there to defend it. stated differently, you're not going to like this the court will will appoint someone at taxpayers expense to defend the statute if the d.o. jment is not permitted to do it. now as for its constitutionality i've been arguing and you have as well and many of us have for years that it is unconstitutional. but in a very famous case named after kathleen, the then secretary of -- health and human services the court found that it is constitutional so the remaining challenges have to do with its

tweaking and its interference with the health care delivery is in the united states. it's the doj doesn't show up some lawyer that we'll be paying for will cost us a lot more than the doj lawyer will be there. >> you sound a lot like me some lawyer will have to show up. >> no -- [laughter] that's from hanging out with you so much. it's, there was a time i don't to get into the historical weeds when the court would rule for the side that would show but the court must rule on merits not to address the merits it needs legal arguments from both sides, and if the government doesn't walk into the courtroom with a lawyer -- then we're all going pay some private lawyer to do it for the government. prchg hopes dashed yet again we all thought well maybe this is it. maybe the end of obamacare who it is but no judge napolitano says not a prayer of that happening. let you get to back wherever you

are see you soon, son. next we have got the market down 43 points very much a go nowhere market at the this point. because you've got a weekend coming up -- on uncertainty over the g7 summit and then the summit in singapore with kim jong-un -- not a time to be actively trading up or down it that's my guess. google says it will not allow technology to be used for weaponry. i say they're using ethics as an excuse to cover the anti-pentagon and anti-trump sentiment of thousands of their employees. my take on that, next. ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪

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google will not allow its cutting-edge technology to be used by america's military. it won't allow its artificial

intelligence products to be used for weapons. they have issued a lengthy ethics statement saying google doesn't want its new technology to have harmful side effects. wait a minute? is there such a thing as a weapon without harmful side effects? of course there isn't. they are using ethics as an excuse. i suspect there's a lot of anti- trump sediment there. google will not help defend america when you get right down to it. that simple. the about that. an american company that has grown very rich and powerful will not defend its homeland. this will not go down well. michael bloomberg, no friend of president trump said google's decision is a defeat for national security, patriotism and the cause of limiting civilian casualties of war. that bit is a reference to the

use of drones to hit only military targets. ugo once no part of it. youtube has been a platform for i isis terrorist activity. google has been getting some very bad publicity recently over its use of data, it's near monopoly position with android phones and search and now it won't help defend america. the founders are both worth more than $50 billion. they should appear before congress to explained why they won't help defend the country which has showered them with such massive wealth and power. the second hour of "varney and company" is about to begin.

not much of a reaction to all the trade tension. we are down 20 points. 25200 public those tech names. apple is the biggest loser in the dow. no balance yet for any of the big tech names after yesterday. apple has warned suppliers or there is a problem with the supply they're looking for 20% drop in new iphones ordered. that has affected the supply. all are down significantly. verizon is dragging down the dow. there's a change of the top but it's only down 16 cents. that's one third of 1%. from general electric, dividends are up 12 in half cents. share. that's the biggest percentage gain or on the dow. it's almost $14 a share. google not going to allow their tech to defend america.

timmy bruce joins us now, fox news contributor. i am outraged. >> you should be. obviously this is a company that's been argued it has monopoly, it does unique research and creates unique products and keep in mind, there may be a little bit of backlash. google is also bidding for multibillion-dollar project to lift the pentagon's data into the cloud. maybe there are other companies that deserve that kind of work. this also goes to show you, when you're dealing with the reaction that this is their staff that doesn't like the military and that would speak to the nature of their comments that they then don't want to create anything that can cause harm. for some people in the world, defending the united states causes harm in our national security is a harmful thing. this is when leadership matters. company leadership has the responsibility to do the right thing for country that their

company relies on and exist because of. >> the ceo, he caved. >> yes. they succumbed to the pressure. >> hold on for a second i want to bring in david monson. do you think, i'm outraged, do you think it affects the stock? >> generally it doesn't. even if it does for a short while, through time, obviously the market is too efficient to let headline things hold it back. i agree with you and tammy about this, it's outrageous, i think it speaks a lot more to the culture of the company than it does the specific calculus in the decision but i don't think investors make the decision through time on anything other than earnings outlook, but it speaks to the fact that there's a problem from the rank and file of the

company that this kind of thing were not only happen but would be popular. >> it is a cultural issue. will it be a decision-making process not just on a single decision but on other decisions. this is a signal that google has changed and someone other than leadership is calling the shots. >> we have an fox pole. i want to show you that. 59% are optimistic about the trump economy. back to you. that suggests the economy is looking pretty good. i've got steak that is an economic indicator. >> it also suggests that 41% of people don't how to read data. the economy is doing very well and it's nice to see the sentiment behind that to back it up, but i think it's a byproduct of not just the

stock market. it's a byproduct of low unemployment wage growth that is not inflationary. wages are going higher because productivity and growth in the economy are real and i'm telling you we are just getting started. >> hold on a second. more from you in a second. now this. president trump, as he was about to leave for the summit commented on the nfl kneeling controversy. >> they are not proud enough to stand for our national anthem. i don't like that. what i'm going to do is say to them, it's all talk, instead of talk, we have a great country. you should stand for national anthem. you shouldn't go in a locker room when our national anthem is played. he is holding onto that, hard line on trade, hard line on the anthem protest. >> isn't a guy who just talks. he likes negotiations. he likes to solve things. i wouldn't be surprised if this is an entrée to actually

find solutions instead of talk. i think this is a first up and he clearly likes being successful and his approach in solving these problems range from foreign policy to economic problems, the pardoning of people, he has success in solving things so this could be the unlocking of a door that says let's move past this nonsense. i don't know what it could mean but he seems to have a lot of answers. >> the players, if they feel there is social injustice, they have a right, free speech rights protest. i just don't know if we can go into another season of kneeling during the anthem. i don't know if the american viewers go for it. >> the game suffers. people won't watch, they don't like it, they're angry about this. >> they just want to two men -- >> it's a huge american business. i can't believe the president

isn't interested in making sure that a large uniquely american business and entertainment source doesn't continue to set survive. watch for this to become a little larger with the president looking for a solution. >> about this one. the washington capitalist won the trophy. some people call it the best trophy in sports. the stanley cup. closing out the golden night in game five, the captain getting to state -- skate around with the trophy. it was an nhl veteran who touched everyone h when he spoke meaningfully about his father battling alzheimer's. >> he doesn't remember a lot of stuff these days. this one will stick with him forever. you can guarantee that. >> a big night indeed. coming up, g7 summit starts

today. the president will sit down with emmanuel macron. last time they were together it was a romance. now, different story, the gloves are off. an unbelievable story. a geologist but he spotted a big pool of oil in alaska that nobody else spotted. he wrist a big chunk of his own money. he was right, he went after and he got a gusher. he'll join us later this hour. life on mars, nasa announcing they found the building blocks of life on the planet, we are all over it. we cover it all. life on mars. you are watching "varney and company". ♪ ♪ ♪ ♪ ♪

so you and your company are ready for today.

we brought you the story last hour. president trump is considering a pardon for muhammad ali. here's the statement from his attorney. we appreciate his sentiment but a pardon is unnecessary. the supreme court overturned the conviction and the nine unanimous decision in 1971. there is no conviction on which a pardon is needed. check out the big board. we are down. 25 points down at 25000 and we just got this from ge. they have set a dividend of 12 and half cents. share. that is the biggest percentage gain or in the dow industrial. the stock is up about 1.3%. sears has been down but it's a winner right now. we play the organ music occasionally. it's up to percent but how about this one. nasa has found the building blocks of life on mars.

that would be organic material. does this mean there was life on mars in the past or there could be in the future? >> it means both. these are the building blocks that life needs to survive. the discovery really says that it's on the right track to find that this was the case. they know mars was habitable in the past, there were oceans on mars. this robot has found that. all the pieces are coming into play. the latest discovery kicks it into overdrive. >> does that mean, there are tens of billions of planets out there, does that mean therefore that odds are there has been life on other planets. >> finding the conditions that are right for life on another planet really set the stage. we know there are thousands of known confirmed planets that

we've discovered with telescopes, and that's just in a tiny fraction. >> does this excite you guys. >> everyday. just the idea that there might be life on another planet or there might've been in the past and that we have the tools necessary to find it, this discovery, they've also found a messing cycle on mars as part of this announcement and that is happening now. they don't know what it could be. it could be something else more organic like critters or microbes creating a methane gas. they don't know. they can't say that's what's happening but it's something that could be happening. finding moss on mars would be

exciting or just a pile of goo. i guess whoever finds it will win a nobel prize. by studying whatever it might be, two rovers are launching in the next few years and they are going to be built to actually look for live now. the actual evidence. these are the next step. >> how long does it take to get a new rover tomorrow. >> they been building these for the better part of a decade. >> , year's trip. >> it takes about six months. it will arrive in november. once they get to that point -- >> six months, it used to have been much longer. there are windows that come up every few years. >> a quick one, the private space race, elon musk, spacex

versus blue origin. who's winning. >> spacex seems to be in the lead because they are launching active rockets for customers. they are serving a different market and their building a spaceship to go to orbit. jeff said he's selling a billion dollars worth of stock to keep blue origin going and he's targeting a very different thing. >> wait, wait, would you go? >> if it's safe, of course. would you go. >> yes, in a heartbeat. >> to see that view of the planet. >> just to be the guy who did it. no sales tax on mars. [laughter] elon musk wants to build colonies in mars. they will need a lot of money.

we have a picture of this emmanuel macron and justin trudeau. they are sitting down in about an hour or hour and a half. president trump will arrive and he will have a one-on-one with justin trudeau. emmanuel macron will sit down face-to-face with president trump are the two have been at each other's throat recently. very different from the state dinner where they all had a wonderful time together and it was a romance. my how times changed. i promise we will be back.

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by the way, we just turned positive on the dow. we been down all day and now were up one point. look at paypal adding that stock to the best ideas list. they've up the price target. they think it will go to $100. share. it's up 1% at the moment at 84. here's the headline, will california's new water rules push people out of the golden state? it's a fox news opinion piece written by tammy bruce who is with us now. tell me the story. >> there's a lot of reasons why people are leaving california. the high price of housing, traffic, the homeless problem, tent cities. governor brown just signed a bill to limit household water used to 55 gallons. day. the average household uses 90. they've just been a through a huge drought. the argument is this is really

a revenue scheme. this tells people that you really have to limit what you do and that you really would go over that limit if you washed your laundry, took a shower, cleaned your house, if you have a tub or a teenage girl, 55 gallons is ridiculous for the average uses about 40 gallons for an average laundry load. there are civil penalties but the state said it's not against individuals. they penalize the utility which of course utility will pass that on to the customer. either your water bill will increase or the be an individual find depending on what they see in the district, but it's even worse than individual finds. maybe you are complying with the limits and someone else in the district is not, but everyone's water bill will increase. >> it's a hidden tax. >> that's what jerry brown is known for. the increased taxes on gas and

they want to have another increase in sales tax but when californians look out the window they see people on the street, human feces, drug needles, they can't drive anywhere because of traffic. prices go up while the quality of life goes down. >> that's an interesting story. i wanted to talk to david barnes and who is still with us. when are you going to move? >> i've been in new york over half the time. i go to manhattan to get tax relief and regulatory relief. what do you think about that for the fact of the matter is i'm looking out the window in newport beach, one of the most affluent cities in the country. we don't have those conditions that tammy is talking about here. it's the whole rest of the state outside the affluent area. the only thing i would disagree is that j brown isn't just good at hiding taxes he's

good at showing them. the 14.3% income rate we pay. there's an abundance of reasons for people to want to leave the state and unfortunately, what they are doing is creating an environment where only the very wealthy can afford to stay or the middle class that's being hollowed out. they border on the absurd. the water issue is absurd. but, you have to keep in mind this is the same legislator that tried to make it a criminal offense for a waiter to bring a straw to you in a restaurant. this is what were dealing with and i'm not exaggerating. it's absurd. >> you lived there, you have a house there, what do you think the chances of john cox being the republican governor of california after the november election. >> there's no chance. i wish that wasn't the case. i know him well and i'll be

supporting him but the fact of the matter is we know the reality in the state for now and were not there yet to be able to meaningfully pull it back into the freedom column. we will get there eventually but this isn't the time. i'm sad about that but it's the reality of what were doing. >> thank you very much. we appreciate you being here. next case, google is not going to let their ai technology to be used by america's military. not in their weaponry. they are basically saying they won't defend the homeland. we have a lot more on this one. it's outrageous. coming up an 11-year-old activists who fought cancer at seven years of age and now she's making legislation and she is next.

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♪ ♪ ♪ i thought we played she's got a ticket to ride in the past 30 days. maybe not. we briefly went up an hour down 25 points. there's all kinds of trouble on trade. big tech is universally lower again today. it doesn't look like anybody's buying the dip at this point. facebook, amazon and microsoft all on the downside. now this. in a fox news opinion piece, our next guest writes if democrats decide to pivot from trump and run on an economic

message they are doomed. i guess they believe if they have their own message they won't be very successful. by the way, there's also a poll that shows 48% believe the democrats are going to win the house in november. joining us now is andy. you say it's a richer act trump economic plan and the democrats run with their plan they will be doomed. what other plan to they have? >> they really don't have a plan. that's really the point. when you talk about a plan for the economy, you're generally talking about something that generates economic growth. they don't have a plan to generate economic growth. they don't even talk about it. in fact, nancy pelosi has been demeaning economic growth. what they have a plan to increase taxes on people who have been successful, even though the top 10% pay about 70% of taxes now. redistribute those benefits to people who might vote for them, in other words buying

votes or expanding the size and scope and then going on tv and make speeches that use phrases like fairness and decency. they're not talking about that for the broad range of american people, they're talking about giving money to people who will support them for there's no economic plan on the democrat side for growth. today's democratic party is bankrupt on economic growth. >> they will not retake the house, are you want to make that prediction. >> i think it will be close. newt gingrich was talking about a red wave opposed to a blue wave. forcing people, people are really beginning to realize that the economy, the growth in the economy is positively impacting them. 67% of americans said it was a good time to find a good quality job. that's a highest percentage ever. it has never been over 50%

before president trump was elected. it's never been under 50% since he was elected. the american people are beginning to understand what's going on. you could see the democrats not take the house and thank god because listen to the comments nancy pelosi makes and you wonder what planet she's from. >> i want your opinion on google. as you know in our viewers know google will not allow its artificial intelligence technology to be used in pentagon weapons. my interpretation is they will not defend the america. what is your opinion on that. >> and he gets terrific. you think about all the americans who have died to defend our freedom and our liberties and then you have these snowflakes at google who don't appreciate at all what they've been given in life because of the system that people have died defending. refusing to support our national defense so that for facing an enemy overseas we get use their technology to limit our losses, that's

disgusting. i switched to being a couple years ago because i don't like how google deals with holidays and religious holidays. switch to being. they are just as effective as google. we don't need google. it's more like you're on a campus at berkeley than a serious company. >> that bad? >> being is the search engine of microsoft. i know you're not a stock watcher, but do you think at some point all of the publicity will be reflected in the stock? >> you will be. particularly people began to stop using google products like their search and in and their customer base drops or that will have an impact on the stock. when you have publicity it's generally a temporary impact so they could take action to fix this but i think the ceo of google actually believes in what his people want.

i don't think he's out there, i think you made a mistake by going out and issuing this policy but i think it supports what he honestly believes and i think the public, the consuming public should react to that. the left does this all the time. i think it's time for people to do this with companies on the left. >> thank you very much. we will see you soon. the star acts, it's a bill that provides $30 million a year for childhood cancer research for the president signed into law. 11-year-old former cancer patient and congressman michael mccourt from texas will vote their and both of them and join me now. just explain to us what this bill, what does it do? >> it stands for survivorship, treatment, access and research. it's the most comprehensive childhood cancer bill ever passed by the united states

congress. it will provide 30 million. year but more importantly the information sharing, the registry file specimen and research data, it's very comprehensive. i'm so glad sadie is here today. i met her three years ago when she was in remission and now she's out of remission and we were just at the white house two days ago. she was right next to the president of the united states signing this bill into law that she works so hard to get past. >> sadie, i hope you can hear me. i want to ask you, what did you do to help push for this star act? >> i lobbied on capitol hill to tell congressman about the star act and just to hopefully get help with passing it and that was just one of my goals to help more kids survive and

help more kids like me get better treatment and not have so many side effects. >> i understand you were diagnosed with leukemia when you were seven years old. you're now 11. you are out of remission. can i say you are cancer free? >> yes. i am cancer free and i finished one year ago, over one year ago from chemotherapy. >> and you feel good? >> yes, i feel very good. >> you have a fabulous mile and that's a fact. >> thank you. >> on a friday morning, we would love to see that. back to the congressman, recently we've had this right to try act or bill. no i think it's an act. do you thoroughly approve of that? >> yes. that came up at the bill signing ceremony with the president. anyone who is terminally ill,

gives them access to potentially life-saving drug they would have access to if they're not in the clinical trial. think that's a big breakthrough for people who have cancer or other diseases that are life-threatening. this star act, i'm very excited about it. it will change the way we treat children. sadie is a survivor. we need to deal with survivorship issues as well. a lot of people don't recognize that chemo is a world war i chemical agent derived from mustard gas. that is what we inject in our children and adults to kill the cancer before it kills you. there has to be a better way to do this. >> it was a pleasure. what a pleasure to see such smiles. what a pleasure to see success for hope in something positive. you've done a great deal for

all of our viewers, sadie, and we really want to thank you very much. thank you very much. >> back to business. money. we are down 26 points on the dow industrial. this is a friend of mine who is a geologist. he thought. [inaudible] he thought he spotted a big pool of wellin alaska and he wrist a big chunk of his own money to go get it. well, he found it and he will tell us his story moments from now. also coming up, remember this, president trump wiping lint off a manual brown suit the last time they were together. oh how times have changed. now the clubs are often their meeting in less than 30 minutes in canada and it probably won't be so friendly. ♪ ♪ ♪ ♪

♪ ♪ ♪ ♪ congressman todd is out there and he has told us he's very thankful every day for nancy pelosi because he claims she continues to show voters how out of touch the democratic party is. >> i get up every day and thank the lord for nancy pelosi. she is a gift that keeps on giving.

whether it's the crumbs act that washington elites attitude, thousands of dollars in people's pockets were crumbs and i have the crumbs act are correct that and make those bonuses tax-free for 2018, or it's this nonsense. unemployment is at a record low the last 20 years. you know this and in may alone we had a quarter of a million new jobs. brighthouse financial allow you to take advantage of growth opportunities... with a level of protection in down markets. so you can be less concerned about your retirement savings. talk with your advisor about shield annuities from brighthouse financial- established by metlife. with expedia, you can book a flight, hotel, car, and activity... all in one place. ♪ everything you need to go. ♪ expedia®

>> don't forget gold still hanging around $1300. ounce. 1302 to be precise. ) imagine this. a geologist wrist a big chunk of his own money. he thanks he spotted a large pool of oil in alaska. he spends the money, builds an ice road to get the equipment across the tundra, because you can't damage the tundra and he starts to drill bingo. he hits what was used to be called a gusher. i'm going to call him an american hero. he's a friend of mine. welcome to the program. >> it's great to be here. american hero, yes, that is you. i hope my wife and kids are watching. you have a hunch, you're a

geologist by profession and you just were going through some records and you have a hunch. what did you see? >> is probably more than a hunch because i have a small company out of denver and we have a dozen really good technical guys and we really tear apart an area and the north slope of a alaska has sort of been left behind. everybody believed that all the big wells had been found. we had kind of confirmed, geologists are funny. i need to become a prisoner of what they think they know and we went up there and said we think they left something behind that may be really big. we assembled a bunch of land and went looking for partner. we had a fantastic partner out of spain and we started drilling these areas. >> you chucked a lot of your money into it. >> i put a lot.

>> i'm not going to ask you how much, but i do believe it's at least 50 million to drill one wellin alaska. >> that's right. >> so you figured out the well was there, off you go, you get the money and what's this road. >> the way you drill in alaska in the wintertime, it's really dark and cold. it's above the arctic circle so in the winter the sun never comes out. as soon as the ground freezes in late december, you have to know where your location is and in our case it was 17 and half miles away. you pour freshwater on the tundra and it freezes. we basically made a 17.5-mile ice-skating rink and you go all the way out there and you build your pad and when all that's frozen you mobilize your rig and all your people's places to eat and live, whatever, and then you drill

your wellin your test your well and then ice road melting you can never tell you are there. >> that's amazing. >> you have to do it that way. >> you built the ice road, you have your equipment, it's the dead of night, 40 below zero or whatever. you do the test drill and what were the result. >> only drilled the well we can and it is only were chasing. we drilled into it and we saw what we were hoping to find and late at night my chief geologist calls me up and says we hit it. it looks great. he said that were out of it. i went to bed. the next morning we get up and get a phone call and he said we weren't out of it. >> what does he mean. >> the pay zone with the oil in it. he said i was wrong, we want out of it.

it's three times thicker than we thought it would be. we knew right away immediately it was a big deal. our entire office was wasted by 10:00 a.m. >> you weren't even in america at the time. >> i can't remember where i was. >> but you could follow the results of the test drill on your phone. there was a moment you knew. >> it was one of those things we had it you just knew. we knew it was big but it just kept getting bigger and bigger. it was terrific. >> i called it a gusher because i see those old movies. this didn't gush oil. it doesn't do that anymore. that would be bad for the environment. >> so in the area that you drilled it, the area where you thought you had the hunch that it was there, roughly how many barrels of oil. >> so i'm thinking, in that area where we found the first well and we were so excited about it it had subsequently gotten bigger and bigger and a couple years ago we decided

that based on our analysis, when you step away from the field, normally it's like a mile if you're really risky used about 2 miles. we stepped out 21 miles and found the same zone, same pay zone. >> so it's a lake. >> yes, 40 miles long, 3 miles wide, we think there'll be about 3 billion barrels. >> you, bill armstrong, you discovered 3 billion barrels. >> in my guys, and my partner. i can take all the credit. >> but i take it you had a large piece of the action. >> yes we do. >> it's funny, i learned early on to be careful to try to get into a poker game if you can't

afford to stay at the table. this thing was just too big for me. i brought in a partner from australia and they're now helping move it forward. >> you've taken a big chunk of money out. >> that's correct. >> what's next west mark. >> it's kind of in your blood. >> but you're not a fracture. >> no, i'm a driller. >> is there a lot more oil left on the north slope. >> we think there's a ton. we found a new zone and i think it's repeatable time and time again so it's pretty exciting. >> i call you an american hero. a man who risks it all and wins on oil in alaska is my idea of a good guy. thanks for being on the show. >> can i say one thing. >> you may. >> i am so proud of you the way you love america and you love capitalism my love that about you.

>> what are you doing on monday? you can come back. >> bill armstrong is a good man. thank you very much. as you seen, president trump landed in canada. here's what he had to say earlier this morning as he was on the way to the airport. roll tape. >> i may leave a little early. it depends on the timing. they're charging our dairy farmers 270% in tariffs. we have massive trade deficits with almost every country. in the end we will all get along. [laughter] minutes from now president trump and the president of france are set to meet for the first time since there april meeting at the white house. joining us now is robert charles secretary of state for bush 43. the brome answer is absolutely flat out over, is that

correct. >> and what you're witnessing, you've got to keep historical perspective. what you're witnessing is the president is speaking about a substantive g-7. he sang i'm going to talk true to my allies and the truth is you subsidize at two levels. the french subsidize the teleco telecom, the transportation, aviation, and what he's saying is you do this at the national level and you disadvantage us there economically and then you do the same thing at the eu level. notice they lower their barriers for each other but they don't lower them for a spread he sang there has to be honesty and fairness in this operation and i'm going to provide it. in terms of france, i think it's coming to grips with reality and the president is forcing them to come to grips and the same is true in canada. i'm reminded, and i'll just tell you a brief story which is fascinating, years ago after i left the reagan and bush 41 white house, i visited ronald reagan and he retold the story which is fascinating. he said on the first g7 he walked into a room and there

was maggie thatcher, prime minister of great britain and bent over her was the father of the french prime minister. he was advising her that the french capital would never work. reagan went over there and said maggie you had no right to say those things to you. why did you let him get away with that part she said, she looked at me and smiled and said ron, a woman must know when a man is simply being childish. he laughed out loud and thought that was the funniest thing. at the end of the day this is what's happening. the british, french, the canadians, other g7 members are saying you're calling us out, this is unfair, you're doing this on the national stage. the tariffs are just an answer to an unfairness that has existed for decades. >> president trump said that

he's going to be leaving tomorrow morning. he will leave the summit early. i take it you don't expect anything concrete to come out of it. you don't think the europeans or the canadians will give a little when it comes to some kind of compromise in the middle? you don't think that will happen to you. >> i think there will be an honest discussion like a discussion in a family that's having a disagreement to borrow from larry kudlow and i think the discussion will be quite real. what the president is saying is historically you draft the communication ahead of time, you all agree you say nothing, you maybe oppose china or give a warning to russia but bottom line is you'll just keep it as a showcase event and what the president, like he does in the united states again and again what he's saying is it's time to be real and to do it now and to speak honestly and not keep playing a game. it is hurting us in the united states that the obstruction,

you can call it subsidy, tariffs, quotas, bottom-line the eu raises barriers and makes it difficult for american businesses to do business. so he sang i'm going to be honest, and by the way, do i expect anything meaningful to come for it, probably some straight talk from everyone "after words", but they are our allies. we been allies for ages and this is just an honest discussion in the family. >> one thing on tariffs, when an american car made in america goes to china there's a 25% tariff on it imposed by the chinese. when an american call car does to europe there is a 10% tariff. when one of their cars comes here with the two and a half% tariff, that's it. i think that's what the president is getting at. >> you are pointing, it's absolutely right. what you're pointing to is there should be a unified position by the european allies in the united states against the chinese

extraordinary state-controlled economy the way they disadvantage american businesses and european businesses in china. they should open that up. at the same time it's disproportionate that the tariffs put on cars by europe. it's time to say we understand there's a set of rules and you want us to play by the rules, but every decade or two you need to look at the rules and start over and say what is fair. the president is being completely straight up. this is what's so remarkable about him. he is authentic. he is direct and authentic, and frankly truth spoken to friends can be discomforting. >> to think we will ever get used to him? foreign governments, the canadians and europeans in china, do you think they will get used to a man whom you really have a hard time predicting? >> i think what they will eventually learn is this is a man who speaks the truth spontaneously which is quite

discomforting for people who do everything by protocol, but in time and in the dark the night i think they know what he is saying is true. i don't think there's a double thing going on but privately they know he's right and hold on for a second, the president just emerged from air force one and is walking down the steps and will set foot on the soil of canada. here's what we expect. he's got to be greeted shortly as he steps foot on the tarmac. he will then go to the resort where the summit is going to be held. our understanding is he will walk very quickly into a direct one-on-one meeting with the president of france. that's the layout of the groundwork of what we are expecting for the rest of the next hour. after that, i believe how long that lasts, i don't know. >> it could be short. [laughter] you never know. stuart: you simply don't know. ashley: no.

stuart: it'll probably be quite contentious, that sit-down all together now. ashley: of course. stuart: and then there's be a dinner. and then the president, our president, leaves. fairly -- middle of tomorrow morning. ashley: he's got a big summiting next week. stuart: in fact, he is going to go directly from canada to singapore. ashley: the reception will be a lot warmer than it's going to be here. stuart: isn't that interesting? here you've got a summit with our allies -- ashley: i think the significance of the g7 is starting to fade away, i really do. stuart: yep. ashley: clearly, it's important these countries get together, but the president is laying down the daunt let, and he's wanting to take these agreements line by line are, country by country and saying -- to your point on those auto imports and exports -- how can that be fair? elizabeth: you wonder who he really will listen to. stuart: but you don't hear the

president's point of view in the media. i didn't read that about the car tariffs in "the new york times" or "the washington post" or on ab, this use. -- abc news. elizabeth: your point is well taken. now, theresa may will be there, and it appears that the president does listen to theresa may. stuart: but i believe that he's not going to have a one-on-one with theresa may. elizabeth: we don't know that. ashley: let's not forget, the tension is not all about donald trump. europe has plenty of tension by itself. europe is divided, there's a messy divorce between the u.k. and the e.u., and the italian rise of populism in that country, look, there's a lot more going on here than just donald trump. he gets all the headlines. elizabeth: the use of the term trade war is wrong. this is a trade trade dispute. he's resetting the trade table. he brought up the canada tough trade tariffs above tariff quotas in canada, you know? canada does hit our dairy products pretty stiffly.

ashley: 270% -- elizabeth: yeah. double or triple or quadruple, nearly quadruple, you know, on dairy products. stuart: the president surrounded by greeters, if i can put it like that, entering the presidential limousine is. he'll be brave driving off to the resort. that is marine one in the background. i'm sorry, it's not a limousine, that is marine one, the president's helicopter. he's in and he's going to fly away, and that's what's going on. ashley: we're going to get a lot of awkward group shots. that's about it. stuart: all right, everyone, it is all happening this hour. here's what you're going to see. president trump landed at -- is about to land, he's just taken off to land at the resort in canada where the confrontation on trade will actually take place. a love fest is not expected. canada and the europeans are united in their opposition to our president. a few minutes after he lands at the resort he holds a you were on one -- a one-on-one with

france's emmanuel macron. we're going to be watching this closely. they got along very well when they met in washington in april, they were very close. mr. trump even cleaned up macron's suit. it was, as they say, a bromance. watch this. there you go. flicks the specks of whatever it is off his shoulder. they're having a good time, they're happy with each other. what will it be like today? bearing in mind that france's president has already said mr. trump may be left out of the final communique, and our president has said he's leaving the summit early, saturday morning he's gone, off to singapore with what may be a more friendly meeting with north korea's kim jong un. [laughter] get ready for a fight. it's trump versus the world as we roll out "varney & company"'s third hour. ♪ ♪ stuart: all right. come on in, blake burman. you're at the g7 summit. you're right there in canada. looks like the bromance between

the president and macron is over. what say you? >> reporter: april 24th seems a lot longer than, what, five, six, seven weeks ago, stuart. now you have emmanuel macron talking about isolation in regards to president trump and his trade policies, suggesting that the united states doesn't share the same economic values as those that are here at the conference, the other six nations and some of our allies all across the country. president trump though on twitter yesterday and again before he left the white house today pushing back on this notion saying, hey, look, even though you are our allies, you are not necessarily innocent victims here in this equation. this was the president from earlier this morning, watch. >> they're trying to act like, well, we fought with you in the wars. they don't mention the fact that they have trade barriers against our farmers, they don't mention the fact that they're charging almost 300% tariffs. when it all straightens out,

we'll all be in love again. >> reporter: potentially here, stuart, to maybe even needle some of the members here at the g7 the president also said this morning that he thinks this should be expanded to the g8 including russia's vladimir putin. as you know, they were kicked out of the g7 four or five years ago after the annexation of crimea. chuck schumer saying in his words he feels it is an international joke, what the president suggested. even though this is the g7, some believe, stuart, this could be called the g6 plus 1 as in the u.s. being off to the side. larry kudlow suggested that this was just a family quarrel that was taking place. will be very interesting to see when the president lands there how he is greeted by that family. if it's maybe bear hugs and high-fives or potentially even cold shoulders. stuart? stuart: blake, stay there, please, we need a lot more from you on this because it's such a big story. i want to get to the markets

real fast, come on in jonathan hoenig. he joins us now. first, look, the dow industrials are down 15 points, and we've got all this talk about trade tension, trade hostilities. doesn't seem to be working as a big negative for the market. what say you? >> not yet, stuart, but i tell you, it kind of depends on, i don't know, what mood the president is when he sits down with all these leaders. you can't underestimate how big this summit is because of the arbitrary nature of it. often times it seems like the president's ideas on specific tariffs -- and let's not kid ourselves, tariffs are taxes on americans. we've got to get by that. but the very arbitrary nature of them, every day could be this, could be that, i think that puts a lot of fear in investors and one of the reasons why the bull market in many stocks has all but stalled out. stuart: hardly reversed. if they're that worried, i don't see a great deal of selling at this point, jonathan. >> look, it's a bull market,

we're seeing new highs in all the major indices, but i don't think you can discount the potential for -- say, you know, a trade dispute, but what we've seen is more and more tariffs. tariffs on the u.s., tariffs from canada and real damage, in my opinion, being done to these international relationships. you know, the president might pooh-pooh it and say is, well, they fought in a lot of wars, but they charge us a lot of tariffs. a lot of foreigners, stuart, who we do business with, they find that quite insulting. truly, our friends to the north. trade is positive. trade is always win-win, and you know who should be upset about the tariffs are the canadians, because they're the ones that have to pay more for a chevy, a corvette or anything else made in america. stuart: let me digress for just one second. a hot of our viewers want to know about big tech. as you know, jonathan, we were down almost across the board for big name technology companies, and some of them are down again today. now, my question is should you

buy the dipsome. >> no. stuart: had you -- okay, hold on. >> no. stuart: if you bought the dip in the past, you would have done well because we always bounce back to new highs. why are you saying, no, won't work this time? >> we don't always bounce back to new highs. if you had said that in march of 2000, stuart, you were waiting 17 years to bounce back from new highs. and back then the big cap was, you know, u.s. robotics and cisco and digital. those are the big stocks of the era. i believe you should not buy the dips. it's a controversial status, but, stuart, you'd rather buy it higher. markets move in trends, trends that persist over time. so for me, weakness in a stock -- and we've seen it in apple, we've seen it in a number of other big cap names -- to me, that's reason for worry. doesn't mean you sell out, but i i think ironically you'd rather buy it higher because that's the indication the trend's going to continue. stuart: you looking for a choppy week over the next five, six, seven trading sessions? because we've got this g7 thing going on today and tomorrow,

then we're looking to the singapore summit with north korea. choppiness, uncertainty all the way through til the end of next week? >> and there's another factor, and that is really tumult in a lot of the emerging markets whether it's the turkish or the brazilian, we could potentially see if trade talks goer terribly awry, i don't want to be a cassandra, but a repeat of the 1987 emerging markets currency crisis where, essentially, there was a major liquidity call. for a decade people on both sides of the aisle talked about the wash of liquidity from years and years of quantitative easing. i think if we start to see these emerging markets really have trouble, that could shudder around the worldwide. stuart: all right, we hear you, jonathan hoenig. we'll see how this thing plays out. >> be well, thank you. stuart: i shall. the state of play, the president's in marine one, he's off to the meeting with macron. he's taken the hard line --

elizabeth: it's going to be uneasy. and what jonathan just said, his point's well taken about it feels ad hoc and on the fly, the trade policy, right? the approach to it. i think it's a signal -- well, i think it's a sign of what's going on behind the scenes. robert lite heiser, peter very pro seeing be tough, and then mnuchin saying let's get negotiating. you know, so it feels a little bit slippery, what's happening behind the scenes. but i think -- stuart: ash? ashley: i think at some point if, indeed, the numbers are as we've suggested, then it is uneven trade, and what motivation do the other countries have to change things as they stand? none. they're going to defend their turf because they're enjoying those relationships they have with us. i will say i think angela merkel -- once he started talking about bigger taxes on foreign auto exports, when you start talking about mercedes and bmw, i think angela merkel may be more willing to do a little

trading there. that's the whole point, to push them to a point where maybe we can get a more favorable term. and why shouldn't you do that? stuart: i'll say this, for years and years and years g7 has been a talking shop. elizabeth: yeah. stuart: nothing, that i know of, nothing comes out of it. elizabeth: i agree. stuart: we're all having fun. this is different, and it's different because of trump. elizabeth: it's going to be tough talk but no ultimatums there, nothing really coming out of it. you know, so is this the back story, that our allies have been is used to and comfortable with a soft, such shi status quo -- cushy status quo for years. stuart: they're so used to us caving. ashley: exactly, no motivation, thank you very much. you're going to get a lot of awkward group pictures. stuart: by the way, we've turned around. i mean, the market was down. the president lands in canada, is of off in his chopper off to the resort, and the market's turned up.

now, look, it's not a huge rally, obviously. it's 6 points, 7 points higher. elizabeth: but we were down in negative territory. i have to revisit again because it's still in the headlines, jpmorgan said there was a 1.25 trillion dollar hit to the s&p 500 since march because of what trump is doing on trade. that is -- listen, the s&p 500 stocks are getting hit by retail ice age, the oil majors. that report hit the stock market early. the headlines crossed at our competitors finish. stuart: and we've gotten over it. elizabeth: it was a mistaken correlation. listen, it didn't take into effect what was really the other stocks dragging down the dow and the s&p. stuart: 13 points up for the dow industrials. we've got to take a commercial break. somebody's got to pay the bills, and we're going to do that right now. live action coming up. ♪ ♪ [music playing] (vo) from day one,

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stuart: on this day when our president s arrived in canada for the g7 meeting, we bring in kayleigh mcenany, spokesperson for the republican committee. always good to see you. >> thanks, institute. stuart: what evidence do you have the president's hard line will show any results at all? >> we've got no giveback from the europeans or canadians thus far. i know it's early, but thus far we've gotten no response. >> we have gotten responses from other countries. you know, president trump announced these sanctions in march. he gave these countries until june to come to the table and negotiate. south korea came to the table, australia, argentina. our european allies did not, so it's time for change because the era of weak-kneed trade policy is over. stuart: do you think the

republican party, that's who you speak for, is the republican party onboard with hard-line trump? >> we are onboard with it 100%. you know, ronald reagan, of course, leveled tariffs, so it's not something that's necessarily foreign to our party. you know, why is it okay for qanta to put canada first and germany to put germany first, but america cannot put america first? there are times when you have to sit down and reevaluate the status quo. and right now the status quo is america is being beaten over the head with an $800 billion trade deficit. stuart: do you think anything will be done here? the president leaves the summit tomorrow morning. he's not going to be there for very long. do you see anything happening, any kind of giveback from the canadians or europeans in these meetings? anything? >> i think so because, you know, these countries have a trade surplus with us, we have a trade deficit. the country that has a trade surplus has a lot more to lose than the country that barely has access to the european market. so i do think that by virtue of that fact alone, we might see

some movement. and we also have the great negotiator who knows the art of the deal, and i think we'll see that at work. stuart: as he was on his way to air force one, president trump suggested it wouldn't be such a bad idea to bring russia back into the g7 meeting. they were kicked out, i think, after they went into crimea. and so it's g7, not g8. he might want to bring them back. immediately after that senate or schumer -- senator schumer, democrat, he says president trump is turning foreign policy into a joke, that we can't distinguish between our allies and our adversaries. what's your response to senator schumer? >> senator assume iser, that's ridiculous because president trump has expelled russian diplomats, leveled sanctions. he has done a lot to come back at russia. but nonetheless, he recognizes they're a power on the world stage. we have to talk to russia, we have to work with russia in syria and elsewhere and remedy that situation along with many others. they're a player on the world

statement, and i think president trump is just pointing that out. stuart: but it was an off the cuff remark. it didn't seem like he'd been planning this announcement. it didn't seem like he'd gotten together with his staff and said should we have the russians back the in again. he seemed to just say it. how do you deal with a president who just off the cuff says stuff? >> it might seem that way, but president trump always has a method to what he does and says at any given moment. we said that with north korea when the media said fire and fury, how dare he say that. that was a means to a bigger end. i think with russia. i think he plans this out a lot more carefully and cautiously than the media gives him credit for. stuart: well, let's ask the media, shall we? blake burman is in canada waiting for the summit to given. what do you make of what seemed like an off the cuff invitation to russia to come back to the g7? >> reporter: it also could be a little bit of a statement as well to those who are here.

emmanuel macron, justin trudeau and others, you know, they're going into this thinking maybe this is the g6 plus 1 with the u.s. being the 1. macron talked about isolation, hey, if we have to put together a statement which isolates the u.s., fine, so be it. and before all of this begins, then you've got president trump saying vladimir putin, maybe he should be there as well. not necessarily a aligning himself with vladimir putin. the president saying, look, i've been russia's worst nightmare. whether he has or not, we can leave the politics to others. but clearly, you have the president -- before this begins -- saying, you know, maybe others should be involved and trying to shake up the status quo of what this event actually is. [laughter] by the way, stuart, i should mention you've got quebec on the left side of your screen. looks beautiful. i couldn't tell you because i'm not there. we're 80 miles away in quebec city. so what you just saw from the president was landing in a

nearby area. he's got a chopper on marine one over there. the reason why i bling that up is because at 11:18 a.m., the president was supposed to hold this bilateral meeting, very clearly that is not going to happen at 1:120. and then at 11:50 was supposed to be the family photo of where you get the seven leaders, and they're all sort of chummy, we'll see how that works with the president. but the schedule here is being thrown off potentially at least by the president's timing. he showed up late because, in part, he had that news conference on the south lawn earlier today in which he dumped all of that news right in our laps. [laughter] stuart: you must be having a lot of fun there, blake. look, we've got to take a break -- >> reporter: it's not boring. stuart: no, definitely not. we'll be back in a moment. right now the dow is still up 8 points. back in a second. ♪ ♪ l over doozeldorf, doozles are dozing.

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stuart: republican congressman adam kin, republican from illinois, joins us now. congressman, welcome to the show. >> thank you, good to be here. stuart: it occurs to me that president trump might get

slightly more friendly reception in singapore than he does, than he's getting now in canada. what say you? >> yeah, it might be the case. i'm glad he'll get good reception in singapore. asia's a very important area, and i like that we're putting a lot of focus on it because under the prior administration, although they had the pivot to asia, it was largely neglected, and we hear that from our allies. in terms of canadian, mexico, european issue, there's a lot of us out here that are very uncomfortable with some of these trade things that are happening, especially when it comes to tariffs against our allies, you know, canada, mexico, europe. i hope the president can navigate through it. i know he's good at this -- stuart: do you not approve of the hard line that president trump has laid out this? would you rather him go in softer? >> >> no. no, no. i think the president coming in -- here's the thing we have to realize and why people are so fended and because for eight years we had a president that wanted to go and be extremely

nice to everybody. we are a quarter of the world's economy. we can come at economic issues from a position of strength, not necessarily from a position of humility, and that's new to people because they're like, oh, this arrogant american thing. it's not arrogance, but it is coming here and saying we have a right to demand fair treatment because of what we do. and on top of that, our navy protects the global shipping lanes all over world. so i do think coming in with a hard line and a strong position is good. we do worry a little bit about the long term, especially representing an agricultural district of what tariffs could potentially do. stuart: adam kin sinker, republican of illinois, thanks very much, sir. okay, the markets dead flat. all the action is right there in canada. the president at this moment, i believe, is on marine one, his helicopter. he's flying to the resort where the actual summit will take place, and we've got an absolutely dead flat market. we'll take a break and return after this. ♪

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stuart: we've got a dead flat market. this is all kinds of stuff -- ashley: it's a wait and see market. stuart: i think you're right there. [laughter] let's face it, if you're an

investor, bigtime investor and you're answerable to shareholders, are you going to put money into this market right now when you've got a weekend coming up with a summit in canada, lots of uncertainty, and then a summit coming up in singapore between america and the north koreans? are you going to jump in with both feet -- ashley: no! stuart: -- and buy that market? elizabeth: you might at the end of the day. you know, it's fairly valued right now. stuart: maybe. whatever you say about fair value, but i don't think i would be jumping in at this precise moment in time. peter morici is with us, former university of maryland business professor, and he joins us now. all right, peter, president trump has gone right out there with a hard line. we're imposing these tariffs. do you expect the europeans and the canadians at this summit to come back and give way on anything at all? >> oh, i think they'll put in place some kind of process to resolve things. i don't think they want to be perceived publicly as caving many to mr. trump. stuart: so nothing, in other words. i mean, it'll be an an no dine

can statement at the end, work on the process but absolutely nothing other than that, right? is. >> that's my best guess. stuart: do you approve of president trump's approach, hard line, we're here to negotiate, get on with it? >> no, i don't. stuart: why not? >> no. i've written that there would have been gentler ways to nudge the europeans forward and to enlist their support with regard to china. china's the big issue. we certainly have issues with the europeans, but those are largely germany. they're the very same issues that gave rise to a trump-style government in italy, and it's causing internal strife there. i think we actually could play that internal strife to our advantage through diplomacy, and i would have put in place some alternative measures to help the steel industry with regard to trade as it related to our allies. stuart: okay, fair point. but look, we need china's help with the summit with kim jong up. we do. we do. >> well -- stuart: and if we go hard line against china just as we're

going against the europeans and canada and mexico, yeah, you're really taking on too much, and they could easily retaliate with the noko summit. you've got to bring that into the equation. >> i think the chinese have as much invested in getting those nuclear weapons out of north korea as we do. and i think we're being very foolish to let them use it as a lever. you know, if you look at the map, north korea's missiles are closer to china. and, you know, it's a very erratic regime there. i don't think it's really smart. my feeling is, is that we have been too timid with regard to china. also we have yet another lever, and that is those islands in the south china sea. we could put pressure on those. that would really get mr. xi's attention. stuart: okay. i want to bring back jonathan hoenig, he's with us. now, he's our market watcher, hedge fund manager with the delightful name of capitalist pig. [laughter] welcome back, jonathan. >> great to be with you. stuart: i was saying a few moments ago that i wouldn't be a

buyer of stocks today, any stocks, on the grounds that i don't know what's going to happen with this summit over the weekend, and i don't know what's going to happen with the summit next week. why jump in when you've got this uncertainty? i think you're with me on this. >> uncertainty and weakness. i think that's an element here. i mean, listen are, this market has been tremendous and really a record-setting market especially since the president was elected. i'm not going to deny that. but it's been a nine-year bull market, stuart. it is the second longest in history, and, you know, we're starting to see some examples of investors, i think, getting a little bit complacent. probably the best answer is credit card debt not far from its all-time high, but even something as benign as individual investor sentiment index. tends to be a contrarian indicator. and given the true unpredictability, i mean, you have friends, allies squabbling on twitter about trade policy. given that uncertainty, i think your advice to maybe sit on one's hands is pretty shrewd

coming into the weekend. stuart: okay. left-hand side of your screen, everyone, that is angela merkel, the chancellor of germany, along with mr. trudeau, the prime minister of canada. back to you, peter. you want america to go after angela merkel on the issue of cars. you want stronger action against germany, do you? >> not just cars, but across the board. germany's economic policy, like china, is based on having a large trade surplus with us and with the rest of the european union. and that's why places like greece, spain, italy have so much trouble, because they have to have deficits. germany has surpluses. and the other northern european countries like holland and so forth, austria, follow very similar prescriptions. that is what's holding back the eurozone, and it's to our advantage to play that cleavage, to bring germany around. and in turn, we have real issues with the chinese, and the europeans recognize those are real issues. but these are also politicians.

and the fact that mr. trump is so much in their face, i mean, look at how he called out theresa may, it really makes it difficult for them to cooperate. stuart: okay, i want to bring back kayleigh mcenany, rnc spokesperson. we did have a bromance -- i hate that word -- [laughter] but there was a solid, friendly relationship between president trump and emmanuel macron. that was in april. now, it seems, that friendly relationship is anything but. does that disappoint you? does that pose a problem for america's foreign policy? >> not at all, because we recognize that these european countries, they are our allies. that's not changing. we are together on the world stage. but just because you're our ally and our friend doesn't mean that you can take advantage of the american worker. it's not fair, it's not just, and it's particularly interesting to look at the double standard where the europeans are crying out about america imposing this, you know,

robust trade policy when, in fact, they're leveling tariffs at us that are four times the size of our tariffs on cars, for example. it's a real double standard, and our friends and allies need to take an inward look. stuart: yes, but we are isolated from just about everybody on the trade issue, from canada, from mexico, from the european union, from china. we stand opposed and at odds with just about everybody. can't be real happy about that. >> well, negotiations have growing pains. this is the opening salvo of what is going to be a lot of talks that will bring us to a better conclusion. you know, an $800 billion trade deficit is not sustainable. every billion dollars costs the u.s. economy 6,000 jobs. it's not a sustainable scenario, so it's one that, yes, there will be growing pains, it may be tough, but the conclusion that we get to will be better off for the american worker. stuart: jonathan hoenig, i can see you on my monitor, you're jumping up and down all over the place. go. >> i have to push back a little

bit. if you care about the american worker, you're against tariffs. tariffs cost jobs. this isn't my estimation, this is what adam smith said, this is what henry haslett said, this is what george bush found out in the early '90s when he tried steel tariffs. so i think to put it out that this is somehow a benefit, and this whole notion of a trade deficit, i think it's salacious on its face. it's the budget deficit, that's the money we owe. but trade is always win-win, and that's why so many people shop on amazon, because they get a tremendous benefit. stuart: you get the last word on this. >> the solar panel tariffs, the washing machine tariffs, we already saw jobs come back to the united states, steel and aluminum tariffs, we have a plant opening in kentucky, there's another one opening, u.s. steel's putting one in, century aluminum. we're seeing jobs come back. and ultimately, you know, our

end goal is not to have these high tariffs, it's to get an equal playing field. and if the tariffs are the means to get to that end, it is worth it. stuart: we'll have to plett you go, thank you very much for joining us. >> thank you, stuart. stuart: on your screens, that is the resort where the big summit is going to take place. i'm not sure whether the president's helicopter has landed there or not. he was certainly on his way. any minute now, i'm told. more "varney" after this. ♪ ♪

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♪ ♪ [cheers and applause] >> welcome back. yeah, live from the new york stock exchange, and right now we're looking at the g7. it looks like markets are flat with the dow down 22 points, the s&p lower by 3 points. traders are telling me everything's holding steady as we await for some news from the g7. and if we get past these trade tensions, maybe we'll see some more action on the markets. let's take you through technology, of course, the focus this week, technology. apple, microsoft hitting intraday records yesterday, coming off a little bit. possibly a rotation into other blue chip sectors like financials and energy really catching a lot of attention. but for the week the dow is up 2%, we're back above 25,000. the s&p and the nasdaq hitting

record highs, the nasdaq hitting a record this week, we're up over 1% each. back to you. ♪ ♪

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some point during this g7 meeting. [laughter] so when you read into that, they're working on potentially doing something, and add into the fact that the president has scheduled now to leave early tomorrow, so you've got the president showing up late, missing a meeting with emmanuel macron and leaving early tomorrow, all of this asthma krone and justin trudeau yesterday continued to publicly blast the president and his trade policies. did president trump blow off this meeting with emmanuel macron? right now i don't know, i can't tell you, i can't answer that. what we know is the meeting right now isn't happening because the president isn't there because he showed up to the g7 this morning. stuart: well, that's important information, blake. the president shows up late, the meeting with macron may or may not take place later during the summit, but the president leaves tomorrow morning. that's a very convoluted time frame if ever i saw one. ashley: that's a very donald

trump thing. we know that macron's been saying we don't need you. i can see the president saying, why am i going to rush to meet with this guy? stuart: art laffer, you're on the phone. thanks for joining us. >> my pleasure, stuart. stuart: you just heard that latest information. >> i did, i did, i did. stuart: doesn't look like there's anything going to come out of this summit from either side. you'll agree with that? >> i think that's correct. i mean, as far as i can tell from all the information there isn't anything coming out. stuart: okay. now, look, you don't like tariffs, i know you don't. >> no. no, i don't. stuart: you don't like 'em. but they do give america leverage to rearrange the trading relationship with canada, mexico, europe and china. they're useful for something so long as they are a negotiating tool, right? >> yeah. i mean, you know, tariffs are taxes, stuart, that's all they are, and i don't like taxes when

they're up necessary and small based, large rates. those things make no sense from the economic efficiency standpoint. from a negotiation standpoint, that's a different game. stuart: okay. now, you've just heard that the meeting with mr. macron may take place, but it'll take place later in the summit. >> yeah. stuart: there's a very limited time frame here. the president leaves tomorrow morning. again, this is kind of unexpected. it looks like a really hostile environment the president's walking into. >> i wouldn't say it was really hostile, but i would say it's -- there's a conflict going on here. i mean, there really is a conflict going on, and larry kudlow, i think, described that. it's a bickering, fussing amongst family members. and i think that's to probably the correct way to describe it. there's nothing super serious so far from this g7. stuart: so you're -- >> i did like your way robert charles, by the way. the president told me that exact same story that he told robert charles. it's amazing.

stuart: the one with margaret thatcher in the corner -- >> i got a slightly different version. in fact, i recorded the president saying that, and i had dinner with thatcher, and i played the recording, and she started crying afterwards. thisit was -- she said we girlsw when boys will be boys. perfectly thatcher. stuart: okay. you compare ronald reagan and donald trump. go. >> yes. number one, they're very similar in policies, very similar in strategies. ronald rye began is a much more -- ronald reagan is a much more gracious, much more gentlemanly person in his negotiations. donald trump is in your face. he's a much more aggressive person in these conversations. and i think it comes from family background, it comes from personal wealth. ronald reagan was not really wealthy, and he hung out with a lot of people who were. very major industrialists. and donald trump is the industrialist. finish the rest of the group in the reagan sort of inner circle were much more like trump than reagan was.

stuart: okay. >> and that is really just a style difference. but i see the two very similar in their strategies, their actions and the goals they want to achieve. stuart: all right. art laffer, former reagan economist himself. art, thanks very much, indeed, sir. >> it is my pleasure, stuart. thanks for having me. stuart: now, before the president actually left for the canada trip, he held an impromptu press conference i guess you could call it. he covered a variety of subjects. he was all over the place covering lots and lots of things. he mentioned russia and g7. roll tape. >> i would recommend, and it's up to them, but russia should be in the meeting. it should be a part of it. you know, whether you like it or not -- and it may not be politically correct, but we have a world to run. and in the g7, which used to be the g8, they threw russia out. they should let russia come back in, because we should have russia at the negotiating table. stuart: there was a quick

response to that from senator schumer who leads the democrats in the senate. he said that he's turning foreign policy in america into a joke, his word, and that we can't distinguish between our allies and our adversaries. congressman chris stewart is with us now, republican from utah. what do you make of the whole -- not the whole russia thing, but russia in the g7 and the president mentioning it this morning? >> well, i want to know how much thought he's put into this. it was a bit of a flip remark. look, i want to have positive relationships with every country, including russia, but i don't think we should reward them for the behavior they've had in the last generation, frankly. it's not just crimea, it's ukraine, it's cybersecurity. there's a number of concerns we have. maybe we allow them to enter the g7 and make it a g8 once again, but i think we should do that as a reward after they've changed their behavior that many of us are quite concerned with. stuart: okay. now, congressman, as you may know, president trump was supposed to hold a meeting with

many macron of france -- mr. macron of france about a half hour ago. we've heard that meeting may be held later in the summit, and we've just heard from some of macron's people, he is saying that european unity during this summit so far has been, quote, striking. in other words, it really is six against one. that's an extraordinary division, congressman. >> yeah. it is. you know, i would say a couple things. one is, these are our allies and our partners. when we first began, i want to have positive relationships with all of them. but you have to give this president credit, he seems to be taking the view that some of these trade agreements and some of the, some of the economic outcomes from that have not been to the benefit of the american worker. and many of those people feel like they've been ignored and pushed aside for a long time now, and he seems to be taking their side. he's said and has done some things that i would not have done. but if he's using that as a

negotiating tool in the short term to get a better economic outcome, i would support that. but you have to give him credit, he's willing to shake the tree. he's done that here in d.c., he seems to be doing it with the g7 and some of our partners, and i hope and i'm optimistic we get a good outcome from that. but there are some speed bumps along the way, there's no doubt about it. stuart: that's for sure. congressman stewart, again, many thanks for appearing with us on very short notice. >> yeah. thank you. have a good weekend. stuart: okay. elizabeth: what's really interesting, the president -- it's not just tariffs. the president time and again says it's bad trade barriers in the form of regulatory red tape that's an issue as well. stuart: and he wants more trade, lower barriers. all right, the dow is down just two points. we will be back. ♪ ♪ hi.

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stuart: let's see now, that is marine o. it is just arriving at the resort where the big summit was -- it will be taking place. that is marine one. the president will emerge shortly. now, he was supposed to come out of the helicopter and almost immediately meet with the president of france, emmanuel macron. that meeting is, a, late and, b, delayed until sometime later in this summit meeting. i see a lot of troops coming out of the back of the helicopter. he might not be on that plane. i believe there's always two. that may be the second and not the one carrying the president. ashley: he's coming heavily guarded, apparently. [laughter] stuart: blake burman, you broke this news earlier that the meeting with macron, yes,

delayed and possibly delayed until maybe sometime later in the summit. do you think it's going to take place at a all? >> reporter: well, i don't want to suggest that he has blown off the french president because the indications that we are getting is that this could take place. when you look at the schedule that the white house has laid out for the president on this day here in canada, there are some holes that the president could certainly meet with macron. keep in mind that this was initially scheduled to be a meeting for about 20 or 30 minutes or so, so that they could sneak it in. but the reality is, stuart, this was supposed to take place at 3 1:20 -- 3 1:20, and the president kid not show up -- did not show up on time. he spoke to reporters, which we are grateful for, but i'm not sure e emmanuel macron is too pleased on the flip side of that because president trump has missed the meeting. as for what we are watching right now, you're right, there's often an advance team that gets there ahead of the president, so i believe that's what we're looking at.

either way, the president should be there shortly. but another thing to keep in mind, stuart, the welcome ceremony where the leaders show up, they shake the hands of each other -- in this case it would be justin trudeau, the prime minister of canada -- is set to start in about two minutes. so whether the president makes that on time as well i guess we wait and see too. stuart: live action television, blake burman, welcome to the club. thank you very much, sir. couple more points from the people around emmanuel macron. number one, they've said that european unity has been striking during this summit so far. that means it really is six plus one, one being the americans, the six being europe and canada. and a second item coming from those same people surrounding emmanuel macron, they say that the conditions are not there for russia to return to the g7. elizabeth: yeah. you know what's striking about this fight between macron, trudeau and trump, it's coming out in a twitter war.

they're tweeting at each other. check of twitter's stock, it's up about 4% this morning. [laughter] stuart: is it really? there you go. the market not concerned by all of this. ashley: it's more of the same, let's be honest. stuart: there's a great deal of uncertainty. elizabeth: fears over that and apple, but we're trading flat. stuart: that's exactly right. peter morici, still with us. hang in there, lad, hang in there. [laughter] you're not working any longer, emeritus only, so you've got time to spend with us, right? >> well, i'm writing two columns a week, one for dow jones and two for the washington times, so i am a busy guy. stuart: we like to keep your hand in it, lad. this looks to me like a flat-out split. six plus one. it's the canadians and europeans versus americans, and never the two shall meet at this moment. >> i don't agree with that. i think that macron has overplayed his hand. ashley: aha. >> the europeans are hardly united. they're one election away from

the italians bolting because of the inconsistencies i talked about before. stuart: well, wait a minute, peter -- >> i've got to believe -- stuart: they are united in their contempt and dislike of president trump. >> well, that may be nice, but i have to tell them something. the italians are even more united right now in their contempt for the germans. so my feeling is that macron really shouldn't have said what he did, and trump is behaving the way trump does when he hears something like that. oh, you think you're bigger than me and you've got a group of guys that are going to gang up on me? let's see you do it. stuart: it's fascinating, isn't it? just fascinating. >> this reminds me -- remember, i grew up in the same place that donald did, in the suburbs of new york city, this reminds me of the schoolyard in queens. stuart: left-hand side of your screen, that, i do believe, is marine one. now, we saw a helicopter land earlier, looks like that was some of the heavily-armed advance troops, actually, who spilled out of the back. they always have two helicopters so the bad guys don't know which

one the president's in. the president, i believe, is in that one. that is marine one and it's about to land. landing at the resort -- i'm not going to try to pronounce it. it's in canada. it's way away from any population center so you don't have the rioters too close. he's landing right there. ashley: something else. in that time when he left washington to go to canada, he threw this one out too which is completely off script, he says he's likely to support then end of a federal ban on marijuana. stuart: what? ashley: he says he'll support the end to the congressional crackdown on marijuana. stuart: now, that is finish. ashley: a oh, by the way. stuart: that is big, big news and i didn't know about it. whatever you think about the legalization of recreational marijuana, think what you like, that doesn't matter. the fact is there are many states in america which do have recreational marijuana, and lots of states are being held back by the federal prohibition. ashley: correct. elizabeth: and it goes against

jeff sessions' position on it. stuart: it does. so now the president comes right out there and says° jonathan hoenig, i know you want to get into this one. >> i'm actually taking a look at some of those marijuana-related stocks. we've seen it time and time again when freedom comes, prosperity comes. so i think given this news, really shocked given jeff sessions' previous comments on marijuana, given this news you're going to see major growth opportunities. and this is a lesson on freedom -- stuart: wait a second. i know that right before we came to you, you got your held stuck into your phone, and you were looking at marijuana stocks. [laughter] what is the leading marijuana stock in your opinionsome. >> well, it's a relatively new and oftentimeses small industry. i don't want to give out any names, but the rising tide lifts all boats. let's say it's been all big cap

tech during this effort, but we've seen it time and again when technologies become legal, when they become widespread, you know, that's where prosperity really grows. this is a pretty major announcement from the president and i think one that there will be opportunities for investors. stuart: he let it slip right out there. a. ashley: he gets a lot of stuff covered in a small amount of time, let's be honest. >> i know they have relaxed laws in canada, maybe he stopped in the gift shop on the way to canada. [laughter] stuart: stop it, jonathan. let me backtrack a little bit. the president, op his way to canada, stopped and gave an impromptu press conference. he covered a lot . he is taking a very hard-line, including maybe inviting russia back in again. they were drop ad few years ago. the president wants to bring them in.

all of a sudden out. blue, maybe we will have marijuana. remove the federal prohibition. >> i would like to sit next to jeff sessions. stuart: peter morici, jonathan hoenig, thanks for great performance. live action news. ashley and liz, you didn't do bad either. neil, it is yours. neil: president arriving in canada. a short-lived venture a little more than 18 hours before he is out there with a big summit with the north koreans. he alienating a lot of folks, so-called g6 plus one. alienate some of our colleagues there. but the fact of the matter he is brought attention to trade issues and the like, according to a lot of people that crunch the numbers benefiting a lost allies. that is way it has been many, many decades, before his presidency, before the last presidency, before the prid