surviving to life we should give them the same compassion, the compassion that huckabee sanders should have received at the right hand. >> he took up your tomb but thank you for being here john and christina park, that will be the final thought. mr. varney take it away. >> good morning to you dagen good morning en. it is monday and begin first full week of summer yes we do off to a positive start but oh boy it is a struggle today. the president is considering new measures to keep our technology out of china's hands. he wants new controls on their companies investing here, and our technology going over there. trade fight -- this trade dispute is beginning to bite everyone. china takes steps to stimulate its economy. what about the impact of threaten tariffs germany shows signs of slowing. and our own harley-davidson says european tariffs on their motorcycle could mean extra actually 100 million dollars in lost business. trade fight is not helping investors either.

2.5 trillion has been knocked off the value of publicly traded stocks since dispute emerged earlier this year and stocks are going down agained a opening bell look at that. down about 170 for the dow, 13 down for the s&p, and nasdaq coming in with a loss of about 60 points that's 20 minutes from now. that is your trade and money news. in a moment, you'll see how ugly hate trump complex has really become. it is personal. it is in your face. and maxine waters wants more of it. "varney & company" is about to begin. ♪ toxic politics let's get into that i'm sure you've heard of this white house press secretary sarah asked to leave in electioning ton, virginia owner it can a poll of employees and agreed kick her out because of

trump policies and then there's this about two dozen people gathered outside home of homeland security kirstjen nielsen left took hatred to her private residents. maxine waters, democrat, california, encouraged her support rs over the weekend to throw trump people out of public life. to hound them wherever they go. roll tape. >> i want to tell you but these members of his cabinet who remain and rye to defend him they're not going to be able to go it a restaurant. not able to stop at a gas station or shop at a department store but turn on them and protest, they're going to -- absolutely harass them until they decide that they're going to tell the president no, i can't hang with you. joining us now fox news contradict tore james freeman with the wall street journal editorial board my bottom line here is that james somebody will get hurt soon. >> it is a real concern i hope that doesn't happen but you look at this language and i think

it's so corrosive to public life and politics at the core of it, it's a segment of the population that still has not been tiebl accept results of the 2016 election. we saw it way back when the big protest on his first full day in office. before donald trump had had done anything as president there was -- no sense that we had an election it was decided and now, in good faith let's move forward as americans and now this immigration fight i'm for more immigration personally. but these -- these criticisms of his policy and enforcing the law likening them to the holocaust to the japanese americans after world war ii totally over the top inaccurate unfair and leading to -- these kind of overreactions. >> susan lee joins thus morning thanks for joining us susan appreciate it. i wonder would any of us want to get into public life? [laughter] you walk away i think -- >> absolutely, and you know, personalized being now stepped

on as well. i want to have a meal on a sunday night with my family that's hard to do. >> i was surprised to see james -- the washington post editorializing and saying, let our public officials eat in peace. >> yeah so they're not on the side of the demonstrators although they don't like trump but they're not going to go that far. >> i think a lot of people even if they "don't ask, don't don'th president are are asking now is this the kind of country we want? where we separate into tribes even at completely nonpolitical venues are will -- tweeting about are there going to be republican and democrat restaurants cara was talking about how last week we were saying anthony was wonderful -- because he -- encouraged people to learn about other curltures and break bread with people maybe they don't agree with everything and learn from it and this week we're say nothing, separate, separate no one can share a meal if they don't agree on politics. [laughter] >> replace blue plates i think -- [laughter] axelrod said that.

not special. [laughter] right. all right that's ugly politics attack a look at futures here's how we're going to open this market this monday morning of all times. down about 170 points. big loss for the the s&p 500 also for nasdaq as well we're down and across the world today, we are down. tech stocks they're down. that's ahead of the white house plan that we're hearing about -- to ban some chinese companies from investing in high-tech purples here. those tech stockses are down this morning. joining us tom -- no, i did it. i did it. [laughter] i did it. yes i swore i wouldn't do this his name is tom plum plumb he's a good guy. >> welcome to the show. >> thank you. look, we've got a lot of viewers out there who are very nervous and heard trade war trade dispute trade fight should they be putting some more money into the market at this point does it worry you? >> after ten years of -- uninterrupted market a lot of people are nervous, they're

anxious, and this is another one of those thingses that we see as we climb a wall worry for a strong stock market. >> should we worry should i stay out of the market? because of the trade fight tack? >> you always have to be choired but you don't have to stay out of the market. because a lot of positive things are happening and the markets typically don't peak until the federal reserve tells us they're going to peak by inverting yield curve. >> so you're not choired okay. >> i think it is an opportunity i think in this voormt i don't have got some great opportunities especially in disruptive technology, in tech, and in health care. >> now, you brought with you this idea of investing in companies which do well because of mobile payments. you're tells us in china and 20 payments are done by own the the phone there's nowhere near that here. so what do i put my money in? >> obviously, in china you have

alibaba and ten cent and papal and then backbone visa mastercard. those companies allowing this to happen and -- in a growing universe, they're creating market share of each transaction. so -- >> these mastercard -- >> these and master are your backbone used in online purchases. >> they would to well you think regardless of the state of the economy -- regardless of a trade fight. regardless of north korea. regardless of border policy. that's it? >> i think you list all a of the things we have to watch but then when you really come down to it these things have been here for last ten years stock market is hitting new highs i think there's great opportunities and they're going to continue to gain market share, because the world's economy is still going to grow. and these guys are going to get higher and higher market share. >> done very well so far that's a fact. tom plum -- i belt all of your with life people have said that --

[laughter] all your life. >> i think so. right before we went on the air i said to this good gentleman i said i won't do it or make that mistake and first thing out of my mouth yids. thanks for joining us, though, appreciate. we've got more on the trade thing here harley-davidson said that european tariffs could cost the company more than $2,000 per bike. in other words james, they're putting a darn number on their pain not sure where they are on this dispute but that's what they're doing. >> not theoretical to peg it at 31% that's a big number. this has the european retaliatory tariff against the tariffs announced by the trump administration. and this is just -- this is the cost of a trade fight. because it is not just that tariff that's going on harley motorcycles, it's also the cost and distraction harley moving to united states to somewhere in europe and if everyone company has to build plants where they

want to sell because tariffs are too high otherwise very inefficient we want companies building them where they -- otherwise would choose to. right in the absence of government intervention and harley case that's the united states new tariff from europe is forcing them to go over there. >> have these tariffs actually been imposed or just threatened? >> i don't think they're actually raising the price because -- of the extra cost and the bike i think harley-davidson in the end absurd the cost. >> i don't know about the price here. but i think they're say price over there is going to go up. but they will have to absurd there somewhere but not been imposed have they? >> these are coming soon and just like the -- early july we're going to get the new tariffs on china. >> yeah. but they just threatened i mean -- well this is the vote. that's the problem isn't it you threaten them and people take action because of the threat. >> what markets are are responding to is this threat, this concern that it is going to get worse and so far i think the markets are telling you it's a bigger problem for china and

europe than it is for us that doesn't mean it is not a problem for us. as you mentioned, our markets are getting hit too. this is putting a limit on growth. you hope that the end result is that the president called for a no tariff zone with europe for example, comes to pass. but this is dangerous here because we're seeing the cost that are about to be imposed. >> let me get to a subject that i can wrap my arms ease lis and simply and here it is. attention amazon prime members. the exclusive discounts at whole foods are now available suzanne i think everywhere -- >> that's the main catch so they're testing this in florida. six weeks ago and this is a discount for a prime members so yes you're paying $119 a year to amazon but now you have a 10% discount at whole foods across the country. and also discount on select items lots of protein here that could ins the fish, meats, and package nuts if you enjoy it. but as you know, stuart you like

the catch there's a catch always. you have to -- you have to download the app. the amazon app with data or you can also sign up at the desk to get mobile phone details. >> yeah. you would there was a catch thank you suzanne regrettably i have to talk about toxic politics a restaurant that shares the name with one that kicks sarah sanders out said she got so many angry comments and reviews from people who thought they were the same restaurant got so bad the red hen new jersey, had to put out a statement say they were not affiliated with reds hen, virginia. we're talking to the owner of the red hen new jersey, later this hour. check thought, good video -- a whysy distillery spilling river into a nearby river. [laughter] the bottom line is it killed hundreds of fish. well a way to go. two big supreme court decisions could come down any moment. one, on whether workers keapght be forced to pay union dues.

another on president trump's travel ban -- judge napolitano standing by. european leaders meeting over the weekend trying to figure out a solution to the my graduate crisis couldn't reach a deal. there's some parallels to what we're dealing with here we want they're trying to deal with there. more varney after this.

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small increase in production, and the roy's of oil this morning is at 69 dollars a barrel. the let me tell youing ge reportedly near a deal to set a unit with large industrial engines that will be a core part of ge. it is up to sale we understand, g serks at 13 dollars share this morning. in europe, angela merkel fighting for a political life and european leaders -- fail to reach a deal on immigration joining us now former senior advisor to the trump and bush 3 administration now italians have said we're

taking no more immigrants. period, no more migrants either by sea or come over from germany or over land, no more at all. they are split -- do you see a parallel with what's happening in america? >> yes. well in the sense that you have a political class that -- as in the case of our congress is fund mentally unwilling to accept verdict of voters where people want to go in europe, and you know i don't think immigration was the biggest part of intersection 98 but what it was a little part this rebuke of the open doors policy of the european elite and what happened yesterday it shall was stunning it was, you know, italy it wasn't just italy prime minister, saying no to queen angela but basically you know a huge fracture in the e.u. where germany really is had its way politically for so long. >> it seems like immigration is the issue which is going to break up europe and which is a primarily importance here in america. and neither side seems to have -- some any kind of solution to

what's going on here. there is no solution on the table either in europe or in america to my knowledge. >> right italy is a new prime minister -- basically said we're going to stop taking my graduates over the weekend they also turned arranged a ship that was reason by mgo said they're rescuing africans bringing them really it's a way of trafficking more immigrants to europe from africa, of course, marco let many a million of these people changing the character of countries not just in gem but like sweden, for example, and here you know we have a political class that just wants to change the constitution of our country without our con sent. sooner ore later the message will get through merkel coalition who knows when it goes but it is on its last german politics will change fund mentally they have already changed in britain and italy, and you know i think here going into the elections -- immigration has not going to work for the democrats the way they want it to. in fact their going to be to the party of illegal. >> i want to turn to north korea the white house is going to ask for specific things in a

specific timeline from the north koreans. that's going to put well how do you judge this it looks like laying down performance stardz that they've got to come up with. >> it a good sign it's good this information came indirectly from pentagon and good they're involved it hasn't been outsourced not good at driving hard bar gone but begin with inventory before we know all of the steps of disarming north korea and taking away a very complex nuclear program based both on uranium to come out of north korea but this is where rubber meets the road with eat mooing of the minds in singapore not unnecessarily on piece of paper between trump and kim and now starting to put steps in place so we'll test whether north korea is serious. it seems like president trump holds a hardline in foreign policy period. is that right?

>> i think so. where weakness is provocative something we learned under obama and it is also provocative in a good way and contagious and whether it was pulling out of the -- poor agreement on climate change moving embassy in israel following through on a promise strengthening the military all of these things are noticed around the globe. especially in beijing and pyongyang. real fast question few you don't mind christian what happens if the union does break are we badly affected here? >> i think the united states benefits because frankly you know west, the west comes back to life. we have healthy nationalism. the west is -- much western europe is on this holiday from history to climate and it could bring it back. >> got it christian thanks for being with us. monld morning appreciate it. thank you. here's how the market will open. down in a single word, down about 170 points for the dow industrials. by the way, james mee man who was still with us he says that the supreme court is decision on internet sales taxes will

actually help amazon squash its competitors. he's going to stay there we'll take a commercial break and make his case after this. ♪

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the wall street journal is james freeman who was still with us and a frequent guest on this

program he says -- the supreme court decision on internet sales taxes will help likes amazon still here gluten for punishment to make his case. what's the -- case here? >> well look there's a common perception that since the supreme court is just given state and local governments the power to reach outside their boarders and force tax collection responsibilities on companies that have no physical presence in their jurisdiction this is bad and a.m. collects ditto wal-mart because they have physical presence everywhere and amazon has warehouses all over the place so who this really targets are small companies. small online merchants so now they have to deal with 10,000 state and local taxing authorities in the united states. and it's not just figuring out what the percentage is on each item that you have to charge. when you're taxed under that authority it means you can be

audited. there could be reporting collections and everything that a state or municipal revenue department can think up to hassle a small business will now be imposed on a lot of little e-commerce offer mom and pop operation it is they make some product and they sell it online so this is -- sadly a huge win for amazon because this compliance burden favors a giant like them. >> anything they don't win at they seem to win on just about every -- >> it is amazing because we have debates about always trump going after amazon washington hab helping for years, the biggest one was when the obama justice department went after apple because it was creating real competition online selling books. they didn't like it antitrust. took out that competitor basically apple had to change its business model. so i think for people concerned about the power of amazon the answer is just -- just get the government to stop helping them. [laughter] that's all you need to know. >> all right open that market in approximately four minutes time

and when we do open it the market will be down and still holding down about 170 point for the dow industrials. stay there we'll take you to wall street this monday morning, after this. they appear out of nowhere.

my secret visitors. hallucinations and delusions. the unknown parts of living with parkinson's. what plots they unfold, but only in my mind. over 50% of people with parkinson's will experience hallucinations or delusions during the course of their disease. if your loved one is experiencing these symptoms, talk to your parkinson's specialist. there are treatment options that can help. my visitors should be the ones i want to see. friday dow industrials were up about 10 points. this monday morning, we're

likely to open down about 150 points. still we're going to kind of balance things out this monday morning in five seconds this market will open -- trade jitters again in the background. that's in the foreground today. bingo 9:30 eastern time monday morning, where are we going in the first early moments we're down 120, 130 -- down 130 points. that's where we are down 128. most of the dow 30 have opened -- and most of them as you can see there on the left hand side of the screen are in the red we're down about half percentage point on the dow. as for s&p 500 lower down to tune of one-half percentage point and nasdaq composite where's that going this morning? down more than that. it is down .8% so not concentrated but tech stocks are taking it look at this list on your screen now intel and video adobe lam research down and now this is in part because the

white house has a plan -- to bar some chinese companies from investing in tech officials here. now look at harley-davidson they say that european tariffs could cost the company more than 2,000 dollars per bike. they're down 2% at 43. ge this is their last day in the dow industrial average after 110 years they're out as of tomorrow. they're reportedly got a deal to sell a unit that makes large industrial engines selling at reportedly it a private equity firm for $3 billion. ge, right another 13 a share. monday morning look at this team joining us now susan lee kristy an james freeman and trade jitters one more time hurting the market. scott have we reached the point where you're prepared to say don't put new money into stocks because of trade? >> not yet. we're getting there stuart because like you said, though, this is another monday where

there's another handful of billion dollarss on the table that we're going to threaten trading partner with. but -- here's the thing you know, the good news is yes, with some of this is starting to come to fruition but let's face it the market overwith all is a bit of a red day today the market overall is taking this in stride with areas of the market that have performed okay energy is one of them. tech is down this morning but largely okay. due to tariff talk to me market is not overreacting for me to say trade is on table or tariffs on table therefore you have to take money out of stocks. >> all right still on china they are easing their credit policy. i believe they're putting 100 billion into their economy. james is that, are they blinking and getting nervous about the impact of tariffs on them? >> they're getting nervous for sure whether they're blinking we'll see. the timing dictatorship has less of a need obviously than republicans do to be popular this november. so they may have a -- a longer window where they can hold out.

but this is another signal that just as you would expect -- it is more painful for the chinese than for the united states. trade is -- in term of percentage a much bigger part of their economy than for ours you have seen the chinese stock market that is to some extent manipulated so you're not sure what you're getting but definitely shown the pain and this is expression that they are concerned about the trade impact. >> what do you got? >> if you look at a recent report coming out from the group say they're in investment in united states has dropped so seeing companies hit. just in the first quarter this have year. so that's a huge hit right there, and then you will see china retaliate with american businesses doing business in china. that's going to be the necks big hit. >> can i make a point as well because actually china this is a great policy towards china if you can want them to yield. it comes at a time when chinese economy and they have a credit, you know, a credit some qowld say and they're trying to reign that back in so at a time when you're trying to limit their

access to technology an they're investment in the u.s., when they're trying to control their own economy, and trying to pull it it is a great strategy. >> trump keeps on his hardline maybe it will have immediate results we shall see. >> u.s. tech stocks are getting hit because of potential restriction on stuff to sell to china. >> okay. and this is a story which intrigues me. morgan stanley, says that president trump's space force could fuel a new one trillion dollar economy. scott martin that is a very big number. >> huge number. and i have a question that i have to be honest guys i don't to be -- debbie downer here but if you look at space rates and some of the space force talk that has been out there. if the space program was so successful, so far -- where are all of the aliens they're not here. we're not there. so to me nothing is going on. [laughter] there's nothing to see here come on. >>i'm glad you brightened up a monday morning with that comment

because we need brightening up and that's a fact. by the way the dow industrials up what five minutes in and down 130 points that neatly cancels out the loss on friday. sorry the gain on friday so kind of a go nowhere thus far 24,400 is where we are. price of oil, though, that's up reached 69 a barrel. following opec meeting -- what do you got there susan. >> oil prices, i mean, we're looking at 69 but they only lift to capacity and production by less than what the market anticipated and reported last week. that's set up to come fridays. 600,000 barrels. >> i don't get that. i don't know why the price is -- >> join forces and work together right because there's concern that iran was going to sidestep it. >> well it is 69 a barrel an price of gasoline keeps on falling look at this now down to 284 that's the the national average for regular. facebook, take a look at that stock this morning. "new york times" great story

actually compiled a list of what they call kind of creepy patent applications. including -- predicting a patent where they predict whether you're in romantic relationship another one -- uses your post messagers to infer personality traits not affecting stock there very much down 1% but kind of big brotherrish isn't it? look at that picture that they use to sell it how creepy is that? i mean everything is being watch, every data is being kept -- that frightens me. >> you're not bothered are you? j i think it is like all of these issues sort of is it creepy enough to get people to stop using the free service? >> nope, nope. so far the market -- definitely not. consumer answer is no. giving up all of our stuff what does it take for us to stop being so complaisant i don't know because i'm using social media platforms. >> i don't use facebook. i'm not on it. but you're an exception but not

likely to get into it bearing this kind of thing in mind. but three of us are on it and others that's the reason why we're not getting off it have. >> a stock you're absolutely right. to me it is big brother. it bothers me. but you're using facebook you're still on there doesn't bother you at all does it? >> aisle actually hoping -- i'm homing for a consumer backlash against a lot of big social media companies qhor increasebly getting into the business of -- editing for politically correct commentary but i have to thooj to this point, there's nothing in the behavior to say that's happening. >> look here's a patent application -- which explores your phone microphone -- this thing and microphone and phone to identify the it tv shos that you watched and where ads were muted. >> they'll record all sounds in your house from one room to next to record through a high pitched sound that humans can't hear. if they're recording our missouri, of course, they're

recording conversations. >> i don't this. do you? do you want this? >> this is an example and you're filing patents this is where technology companies see the future. >> i don't like it. okay. >> you tell them. it's not just facebook either amazon and the like so -- >> and google really get google thank you very much there. scott i know you're listening to this. >> i'm still here. >> quick with on the ge selling its distributor power business whatever that is they're selling it to advent international for three quarter and that news crossing this is last day on the dow. >> yeah. it's kind of a sad -- with american icon great industrial company -- these are two more piece it is that we're assembled by current ceo predecessor and i think the the question is what is the -- plan what is the growth -- path for this company, and is it just -- going to be liquidated really? >> so for -- >> why shouldn't i buy a few shares of ge at 13 and sell it

at $13.50 if it gets there why not? >> i think a lot of people you just like to see where is the earnings power to drive a come back because -- >> railroads are selling their aviation are -- and >> they're planning on breaking up and off the city of possibility and breaking up company selling off 20 billion of assets. >> i'm not going to buy it at 1 and sell it at 13.50 bit coin get into that low of the year 6,100 right now. alibaba papal, amazon still saying no -- to any large scale adoption of cryptocurrency. scott, you manage money. do any of your clients ask you about getting into bit coin or crypto? >> so they did last year, and we did play around with it a bit and maybe made a few dollars and probably lost a few. and now that's kind of died down buzz news is big on built coin is now everybody is asking about pot believe it or not. so here's the thing it goes to

show you these are long-term trends. you know, when you look at the cryptos to me that was like a toy. it was something that put on the side to much qa to have fun with but always said on this show stuart this would turn out to be a bitty situation and i think the price is proving that. >> that was pathetic -- actually. but -- i agree with you. >> second time too just so you know. >> would anybody here touch bitcoin with a ten foot pole? >> 3,700 up tick, and you -- >> i would buy it. james, not at this point i want to see more people using this stuff. but not playing with it as experiment. >> well said with you all of the way. thank you james and scott, oh, scott happy birthday -- i'm told you have got a big one coming up thursday. [laughter] you. >> 21 i'm really excited it is going to be great. >> i have one coming up next month and much bigger than yours. thank you james, thank you scott and good to see you. where are we now down 176

points. look at that down for 24,400 first thing on a monday morning. we have a lot to talk about with the judge today. anti-trump fbi agent struck subpoenaed by house judiciary committee struck deposed this week. two big supreme court decisions could come down at any time -- well excuse me. one on forced union dues -- the other on president trump's travel ban. the judge will sort it all out, next.

low of the day down 230 points now puts us back to 23,300 a trade despite and fight again not helping two and a half trillion dollars has been knocked off publicly traded stocks since this emerged in

mid-february that's the -- trade fight. apple going to cool out with new headphones -- come in nicole to tell us all about it. >> new apple product to tell you about so over the last 24 hour, it has gotten this report an into the downside we're talking new high and air pods all about listening better. new home pods and also studio quality over the ear headphones. now bloomberg supporting this be is all coming out next year that it is actually going to build the air pods as well. and there's going to be noise cancelation and water reare sis taint if you're sweating and running or if there's a little bit of drizzle out there some other quick headlines that happened -- at apple is pumping out 5% more in iphone and iphone 10 will be dishelicopterred for two more coming and then rbc put a 200 -- 210 price target says that

original con at the present time will boost earnings. that would make them a trillion dollar company they get that high. thank you good to see you. chevy blazer will be made mexico all right what happened? >> theyed to making the suv in 2005. but they're going reboot it for this year next year -- and they're going to start making it in mexico. which might not be something that is president trump wants to hear. they employ already 15,000 in mexico gm does a small 10% of the entire 100,000 they employ across the united states but shows that wages are still cheaper in mexico that's where corporations are wanting to build their stuff. >> blazer and in mexico take that. all right thank you suzanne. all right the supreme court let's get there two land mark rulings expected this week. one on president trump's travel ban. and one on union dues. all rise judge napolitano is here start with a travel ban walk us through it the president wants is the president allowed

constitutionally to ban people coming here from predominantly muslim countries? >> this is famous travel ban the first version of which he signed his first week in office. then he signed a second version that got rid of the first and then signed a third which got rid of the second this is third version, this has been up and down, up and down and now back up to the supreme court. each time it has gotten there, the court has narrowed it a little bit. but upheld it by the same five to four vote so if the court decides -- that the language of candidate trump in which he ripped apart muslims is religious discrimination, then the travel ban collapses. if the court decides that the reasons given by president trump for this travel ban, the security of the nation, is well within his power of foreign policies under the constitution, then the travel ban will be upheld. prediction it will be upheld. >> yeah. it will be upheld again that's

just a prediction so honestly i think we're going to know in the next half hour this one is coming down today. but likely he can ban people coming here from predominantly muslim countries the way it will go -- >> i do believe that have having read all of the opinions that i've got ton the supreme court and about 15 opinions now. and one thing is very clear that country speaks with one voice on foreign policy and that's not the courts and it's not the congress but it's the president. >> president not candidate but the president. sm correct. correct he did say very things as a candidate which your frepgdz in ninth circuit in california dwelt on and supreme court prefer nots to dwell on what he said as a candidate but did as the president. >> my friend -- i have to get that in. >> it's monday. union dues let me see if i got this right. can -- it is union membership. union motorbike can a nonunion person be forcedded to pay union dues if they work in a closed

shop that's the issue -- >> we're talking about public employees. the state of illinois, forces all human beings employed in the state local county regional and state to join a public union. can the state force you to do that and right to express directly not to have somebody extract money and express their political views so it's a question of a free association and free speech that's qhat court will rule are on. i also think today -- this will be a tremendous import to many of your viewers. because this will if the court goes the way i think it will go seriously we can labor unions in the country and force them to draw in members it not bit force of law but by whatever benefits they can give to the the member. and also reduce their had income, and it will reduce the income of the union. and their political clout. radically, and you think if that

is t that will go through i believe that the illinois law will be invalidated and the states will no longer be able to force workers who work for them to join labor unions as a condition of employment. >> now this one -- house judiciary chair he subpoenaed fbi agent of peter struck, he's going to depose hem spell out what this means. >> structure saying nothing. and should advise him to take the fifth amendment he's a target, and probably administrative leave i don't think he's been fired but he's going to be asked what action did you actually take in view of your text which were vigorously anti-trump and defending hillary clinton -- what action did you take on the basis of your politics? he's going to be asking -- many, many questions similar to that. where i as lawyer would advise them to invoke the fifth but apparently he's going to answer these questions now it's a secret interrogation so we're going to get a republican

version of what he said, and a democratic version of what he said. rather than just -- interrogating him on television so we can all see it. >> will ever see results of the what deposition? >> i don't know the answer to that i don't know what they're going to do with it but very, very almost i know you hate this word bitterly disappointed that it is in secret i hate government and secrecy government knows more about us than we know about it. but -- secrecy it is not planning war this is exposing wrong -- another story. thank you judge. [laughter] >> tie too tight arranged your neck. >> low of the day ladies and gentlemen, now we're down 246 points, 251 now, 24,300. the the owner of a restaurant in new jersey -- says her business faced online harassment and negative reviews because it shares a name with a restaurant that kicks sarah huckabee sanders out over the weekend. owner of the red hen new jersey is joining us --

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sarah sanders asked to leave a red hen restaurant in virginia. however, an unrelated restaurant with the same name is caught up in the controversy. joining us by phone is elizabeth pope, managing partner of the retd hen in swedesburrow, new jersey to take us through the story. what happened in your red hen when the news came about the red hen in virginia. >> good morning, thank you very much. you know, we just started getting just an influx of calls. initially we had no idea what it was about, and you know i went on read the news feed and a the two and two together and realized that people were mistaking us for the red hen in virginia. >> most of the people that were calling or getting in touch with you were they -- angry that sarah huckabee sanders kicked out of the red hen virginia? and thought that you know, getting at you?

>> they were extremely angry, and you know, most of the calls were really abusive. there was some death threats. to burn our restaurant down -- to watch our backs and then there were odd call to call us to congratulate us for kicking her out which was -- >> so you're trying to get the word out that you have nothing to do with the red hundred restaurant in virginia. is that what you're doing? >> absolutely. yes. >> now what the result this morning -- is anybody are you going to get a lot of business today do you think? [laughter] >> we'll see. we'll see what happens. we -- you know it is a small community it's a beautiful little -- town. and this support from our local community and our regular guests have been absolutely phenomenal. >> that's good news and i'm pleased to hear it. thanks very much for being on the show this morning and sorry about the confusion. okay. we'll be back with more in just

a moment everyone.

stuart: two big stories that we're following for you this hour. left-hand side of your screen, we're waiting for two big decisions from the supreme court. one on president trump's travel ban, the other on forcing workers to pay union dues. we'll bring you the news when it happens. right-hand side of the screen, stocks down 270, the low of the day. t a big day -- it's a big day in politics and your money, and we're on it. now this. political harassment has reached the boiling point. it's not just a few nasty looks. these days members of the trump team or prominent trump supporters cannot conduct their private lives in peace. over the weekend hate was in the air, violence just below the surface. you've surely heard by now that sarah huckabee sanders was asked to leave a restaurant where she had ordered dinner with her family.

did you also know that florida attorney general pam bondi was shouted down at a movie screening? she had to be escorted out by the police. you are a horrible person, one protester screamed right at her. homeland security sec or tear kirsten nielsen forced out of a restaurant as well, and a mob gathered at her private home. trump adviser steven miller at a restaurant, his meal interrupted by shouts of fascist. and then there's maxine waters putting the icing on the leftist cake. trump's people, she told msnbc, they're not going to be able to go to a restaurant, they're not going to be able to stop at a gas station, they're not going to be able to shop at a department store. the people are going to turn on them. this is a new level of harassment. it is hatred raining down on conservatives when they appear in public. to say it's gone too far is a wild understatement. it shouldn't be happening at all. democracies settle political

disputes with debate and votes. the angry confrontation of public officials brings us very close to civil strife. that's not good. it's the left that's doing this. petulantve hillary's loss, they've launched a hunt -- a hate trump campaign. it is rabble rousing at its worst, and it is truly shocking that adults in the democrat party have failed to restore order and decency. will any democrat stand up and repudiate maxine waters? so far none has. somebody's going to get hurt. ♪ ♪ stuart: ah, breaking news, and we've got it for you. new home sales, the number, please. >> yeah, the month of may looking very strong. we're looking at 689,000, that's an annualized rate in the month of may, better than economists had forecast. this is despite the high selling

prices and the low inventory levels. and home building,11-year high. stuart: they're going to build and sell 689,000 homes. that's a bigger number than i can remember for a long, long time. >> yeah. and better than what the commerce department had penciled in which was a strong number. and the summer months, good selling time. stuart: the dow is down close to 300 points and the home builders are down too. let me get back to toxic politics. larry to con far, washington times associate editor, is with us now. i hate to say it, larry, but i do think we're getting so heated, somebody is going to get hurt. >> yeah, stuart, your take was so well said, and i'll add to it. first of all, let's not forget, people have already gotten hurt. it was just over a year ago when a fragile-minded man took a gun and stalked republican congressmen on a baseball

diamond because of their political beliefs. he truly thought they were a harm to the republic. if you believe the left's rhetoric from the last year and a half, if you believe trump is our generation's hitler, if you believe the people who voted for him are nazis, why wouldn't you try to stop those people to save our republic? and it's become dangerous and terrifying, frankly. stuart: i do think that it's -- it's the left that's doing this. >> it is. stuart: this is the turf of the left. >> yeah. stuart: it is incumbent upon democrats, adults in the democrat party, to get out there and say, hey, knock this off, calm down, this is not good. >> i agree. stuart: you've got to get control of these people back again, because it'll rebound on you. >> someone needs to be a statesman here, a leader. i'm concerned as you pointed out, not one democrat has spoken out against maxine waters' volatile language over the weekend about, as she put it, trump people. stuart, here's the problem, and i really do think this boils down to politics, sadly, there's

an election coming up this november. democrats were counting on a blue wave. the fact is this president's policies have been pretty darn effective. at this point they've stacked their entire election on being against trump, on wanting to impeach trump and being against everything that he stands for. the economy is strong, the tax cuts are working, businesses are doing better, employment is better. all they have to gin up their base is this kind of rhetoric or, even more importantly, to try to quiet down and intimidate trump supporters. they want the people who voted for trump for the first time in their lives they voted republican or voted at all, they want them to stay home this november. that's their only hope, and i think this is an intimidation tactic. if you're for trump, we're going to harass you, get in your face, get after you. but i think the people are going to stand up. stuart: what do you think the response should be of conservatives, prominent conservatives, who adopt get harassed -- to who do get haha rahed in public?

i think sarah huckabee sanders responded with real class. is that what we should all do? >> incredibly classy, and we should use that as a model, frankly, stuart. but at the same time, there's a reason why i was inspired by people like andrew breitbart and, frankly, donald trump because for the first time i saw conservatives in my lifetime who didn't always take the high ground, who didn't always act like they were at a country club and saying, well, i'll just go about my business. no, we saw people stand up and rhetorically fight back. and i like people to actually stand up for themselves, use their words and push back a little bit. we don't need to be violent, but we can at least stand up and stand for something. stuart: well said, larry o'connor. >> thank you, sir. stuart: and by the way, 2 p.m. eastern time, 2 p.m. eastern this afternoon on fox business former governor mike huckabee on "the intelligence report" with trish regan. it's his first opportunity to talk about what happened to his

discussion off the record at that restaurant over the weekend. 2:00 this afternoon, this network. check the big board, we're down 300 points. that's about 1.25%. back to 24,2. harley davidson says european tariffs could cost the company more than $2,000 per bike. they're putting a dollar number on their pain, and the stock is down 2.5%. tech stocks mostly down, the white house wants to ban some chinese companies from investing in technology firms based here. the ones on your screen, tech stocks, all down. starbucks, our next guest is a seattle guy. he's questioning how much staying power starbucks has. the stock and the business, that is. he's an old friend of ours, you've seen him before, but he rarely comments on the individual stock. his name is keith fits, he's from seattle, and he's talking about starbucks. what's the problem? >> well, stuart, i think they've got big problems. i went to the original starbucks

location, and i saw something for the first time i haven't seen in years, i can never remember, empty counter space. there wasn't a line. people weren't taking selfies in front of the store. you combine that with 150 store closures, three times the normal rate, all kinds of movement in their menu, it makes me wonder whether starbucks' day has come and gone. stuart: do you think politics is a problem for starbucks? their ceo, the founder, he's a liberal. he may be running for the presidency. he stepped aside from starbucks. they have a tradition of introducing causes into their business. do you think that's putting people off or not? >> you know, stuart, i've thought long and hard about that one, but there's some lines from the ceo that make me think it might be part of it or at least they're not drinking their own kool-aid. here's the thing, 150 store closures in high growth urban areas where you've got high beiges and regulatory -- high wages and regulatory pressure. it doesn't fit the social mean

that they're supposedly advancing. whether that affects the business or not, i don't know. but what i do know is for the first time i didn't see as many customers in that store a i've seen in a long time. stuart: i see the stock at $50 a share. i've not seen it that low for some time. i take it you wouldn't buy it at this point? you wouldn't buy it? >> no, not only that, but my family and i are looking to sell it. stuart: okay, got it. the market overall once genre acting to trade figures. what's your thoughts on that, keith? >> >> you know, stuart, it's one thing to talk about the fear of a trade war, but it's another thing to get darn right combative. i think the president's latest tweets about prohibiting foreign direct investment is putting down a gauntlet of sorts, and i think traders i've talked to, that is the most concerning bunch of tweets we've seen yet because it's antagonistic. there's no room for discussion, it's like, hey, this is what's going to happen, and that's not good for capital markets. stuart: so for our viewers who

are nervous about the trade fight, the trade dispute, would you tell them hold off for mow? don't put into stocks just yet? is that what you're saying? >> sort of. don't panic, take a deep breath, think about what stocks you want to hold on to and make a beeline towards those. buy low, sell high, that's how the game works. most investors would have profits because they've ridden this rally, so be select arive. let the market force your hand, but do not try to second guess it, because that never ends well. [laughter] stuart: i know what you mean. thanks for joining us. we're down 300 on the dow. some of the last remaining toys r us stores are about to close forever and ever and ever. what's happening, susan? >> yeah. so we do have liquidation, an iconic toy retailer, announcing a round of markdowns, and they're going to give discan counts before they close forever, so you could get 50-70% off with limited exceptions, they say. stuart: 50-70%, i know people

who would go across the country for that. [laughter] okay, thanks, susan. history in jake ya, women are now allowed to drive. look right there, that's saudi arabia. more on that for you just ahead. can you believe this? increased threats to workers at the department of homeland security. threats. in one case a dhs official found a burned animal carcass on his front porch. not funny. check the big board, now we're down exactly 3 -- well, 298, 302 points. more "varney" after this. td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪

trade 24/5, with td ameritrade. ♪

stuart: still town about 300 points on the dow, that is well over a 1% loss. look at the dow 30, please. we've got 26 of the dow 30 are in the red, they're down. only four winners amongst the dow 30. now this, women in saudi arabia are now allowed to drive. tell me more, susan.

>> yeah. so this went into effect on sunday, and it ends a multi-decades ban on female driving in saudi arabia. interesting numbers from bloomberg economics, as i just told you. they said this move could impact the economy and add $90 billion to saudi arabia by 2030. stuart: oh, okay, by 2030. >> yeah. if you think about it, that's 5% of saudi aramco. stuart: that's a lot of money. i don't know where they get that number -- >> questionable. stuart: because women can drive between now and the 1 years to 20 -- 12 years to 2030. i think the good news is they can drive. >> they can go and get their own food. stuart: that's a good thing. i'm not sure they're allowed to travel around without a male escort, relative male escort. that'll come later. the latest presidential tweet, here it is: we cannot allow all of these people to invade our country. when somebody comes in, we must immediately -- with no judges or court cases -- bring them back

from where they came. our system is a mockery to good immigration policy and law and order. most children come without parents. congressman andy biggs, republican from arizona, is with us. the immediate response to that tweet was the president is abandoning due process. what's your response? >> well, actually, if you're an illegal immigrant, i'm not sure you're entitled to due process but for the law. the reality is we have 50,000 people crossing the border, we've got a massive surge. you have 500 at least unaccompanied minors a day, we're looking at 30,000 more coming in. i understand exactly the frustration that the president feels. congress has dithered on building a wall. it's a huge problem, and he's right, it is a mockery. stuart: well, you're on the border. you're a border state congressman. >> yep. stuart: there's not going to be a fix for the immigration situation anytime soon. i don't care what happens in

congress, it's not going to happen. there's not going to be a new system introduced suddenly, and yet we have thousands of people coming to the border as we speak. it's going to be absolute chaos, isn't it? >> well, it's already absolute chaos. if you talk to border patrol officers, you have people who are deliberately now crossing the border and going to the border patrol officers. it used to be they'd have to chase them down, but now they're going to the officers and saying i want asylum. so you've got the asylum issue as well. instead of going to the port of entry, which would be the normal, legal way of doing it. so it is a chaotic situation, it's going to continue with chaos until you secure the border, you start putting up a wall, start serving people back. stuart: we're not going to do that, and the fact that we're not doing that encourages more people to come. look, i think there's a crisis here. you know, it reminds -- i keep saying this, but it reminds me of europe when that army of migrants marched on europe for humanitarian reasons or whatever. angela merkel let 'em in.

we're in the same situation. we've probably got hundreds of thousands of people coming towards our border, and i don't know what we're going to do. >> well, and that's why i'm with president trump on this. you have to start sending them back. you can't let them in because one side of our country says, well, just let them in, that catch and release is a disastrous policy, and it's an incentive for more people to come. you've got, no doubt, the guy who's going to be the president of mexico when he's elected, he's a marxist, he has said let's empty our cities and towns and march them up to the united states and let 'em know that they can't have a border, they can't have a fence, they can't stop people. something has to be done immediately, and his -- i'm going to call this a virtual border wall, which is what he's trying to create. that's what he's trying to do, i think. stuart: do the democrats have any be plan at all? i know you're a republican, and i shouldn't be asking you this -- [laughter] do they have a plan other than open borders, met 'em in? -- let

'em in? >> well, their plan is -- yeah, yeah, they want to let people in, number one. and the second thing is they want basically general amnesty for everyone who's already here illegally in the country. so it's a twofold plan; erase the border and grant amnesty if you've been here illegally. that's their plan. stuart: congressman biggs, thanks for joining us, sir, on a tough subject. it's hard to get to grips with. we appreciate it. >> thank thanks, stuart. stuart: the supreme court just ruled for american express in an antitrust case against the state of ohio. that will be the last decision it hands down today. we will not hear from the court on trump's travel ban or the union dues case today. stay tuned for tomorrow, okay? that's just coming at us right now. how's this for a number? $1 trillion. that's how much trump's space force could add as a new sector in the economy. next we have a few of the

companies that could cash in on it. we'll be back. ♪ ♪ welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early

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stuart: we are still down 300 points on the dow industrials, that is 1.25%, and that's taken us down to 24,200. that's where we are. by the way, today is the last day for general electric as a member of the dow 30. and it's down 1.5%, back to $12 a share. morgan stanley says the president's space force, remember that? the space force could fuel a new

trillion dollar economy. not sure i understand all of this, but susan lee -- [laughter] i hope you do. >> i was looking through some of these names, some questionable. ing space is already a $350 billion economy or roughly half a percent of the world gdp. morgan stanley doubling down saying it could be a trillion dollars in the future especially if you throw in satellite are, internet, rockets, space tourism, asteroid mining as well. so some of these names i would say obvious, you know, the lockheed marthes and northrup gum mondays, but the ones i was a little skeptical on, shopify? stuart: i don't get that. i'm not sure about amazon either. why would amazon -- >> blue origin to. stuart: oh, of course. >> that's a private enterprise that bezos puts all his money into. but they're also arguing godaddy, you know, the provider e of online web sites and internet names. stuart: i don't get it. >> apparently they're a software

supplier -- stuart: i guess morgan stanley is saying you combine -- so the private efforts to put satellites in space, combine that with president trump's organized state-run space force, get it all together, and you've got a trillion dollar business. >> correct. stuart: that's a long way in the future, i take it. >> i think so, especially starting from where we are, and we're not each going to the moon anymore. stuart: especially when you're starting from $20 trillion worth of debt -- [laughter] anyway, that's what morgan stanley says, and that's what we're doing on this program. ambassador john bolton visits russia this week. maybe he's trying to set up a trump/putin meeting later this summer. maybe, but he is going to moscow this week. and it's a running theme on the program, people fleeing high-tax blue states for low-tax red states. top of the hour why one democrat says that spells big trouble for democrats in future elections. ♪ ♪

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♪ ♪ [laughter] stuart: super, which one of the beatles right at 1030. >> okay, now i know. stuart: do you approve? >> i approve. can i make a request? stuart: yes, you can. >> hard day's night. stuart: okay. tomorrow, producers. the market's coming down a little bit. we were down 310, now we're down 260. still a better than 1% loss. price of gold still edging lower. it's down $2 today at 1268. now this: a 15-year-old

migrant boy has walked away from a care center in texas. police still looking for him at this hour. officials at the facility say they cannot stop kids if they decide to leave. joining us now texas attorney general ken paxton. the left will -- their going to have a -- they're going to have a go at you. they're going to say you're not taking care of these kids. you can't win, can you? >> no, this is the law. i mean, these kids after a certain period of time are free to go where they want to, so there's nothing these detention centers or facilities can do to keep the kids from leaving. look, this is a 15-year-old kid. he's a teenager. he can make his own decision. we know that teenagers sometimes don't make the right decisions. stuart: you've got to keep them for a certain length of time, how many days do you have to keep them? >> so there's a 20-day period, and this was negotiated by the clinton administration back in 1997. this is what created this whole separation issue is this consent decree that was initiated by the clinton administration only allows 20 days, and that have

that they're free. stuart: so for 20 days they've got to be kept9 in which implies fences which means, to the left, cages. again, you can't win. >> yeah, exactly. i mean, as much as the trump administration is trying to do the best they can with the law that they've been given, you know, it's the hand they've been dealt, and they're trying to handle it the best they can. stuart: what do you make of the president saying just send them right back at the border, no judges? no long hearings, just they arrive, you send them right back again. are you allowed to do that? >> yeah. if they're within 100 miles of the border and it's done within 14 days, yeah, you can do that. i think it's a good idea because, obviously, we have a hard enough time keeping up with going through these processes and keeping these people in places that are safe and comfortable. so if you can send them back immediately, why not do it? stuart: but are you -- can you do that? the left is saying no due process.

the president is abrogating due process, they're entitled to a judge, they're entitled to a hearing. are they? >> no. the rules are, as i said, 100 miles from the border, 14 days. after that period of time, then the law says they have to have some type of hearing process. but if you can do it immediately and within a certain distance of the border, you can do exactly what the president is suggesting. stuart: we're told that thousands of people are coming to the border. what are we going to do? >> it's a frustrating issue, and that's part of the reason i think that we need to push forward on building a wall in the places that it will help. it certainly helped in el paso. we changed what happened down there years ago under the bush administration, and this is certainly more border agents. allowing them to do their jobs and using technology where technology will be helpful. stuart: you could, i i mean, if there were enough of them, enough people trying to get across, you could be overrun. i don't mean to be alarmist here, but that's not out of the question, is it?

>> no. there's no doubt that's probably something the president is extremely concerned about, because at some point the resources that we have down there are not enough. and we don't even have enough border agents now, so it is -- we're already experiencing that to some degree. and if there's more people coming, it's going to be more difficult for us to stop a massive amount of people from crossing the border. stuart: department of homeland security workers are being warned that their personal safety may be at risk because of the backlash over what's happening at the border. have we come to that? >> you know, this is horrible. we've got that going on, we have the threats against, you know, pam bondi in florida -- and i talked to her yesterday about what she had to go through and, you know, being screamed at as she came out of the movie theater with her boyfriend and being blocked in her car, and what happened in lexington, virginia, with sarah hawk bee sanders and, of course, kirsten nielsen. we've had hate groups before in america, we've gotten through it. this feels, to me, like a hate

group that is intolerant of anybody having a different opinion over something they disagree with. stuart: it's not going to stop though, is it, ken? >> no, unfortunately there have always been people like this, they can't stand if there are people that disagree with them. they have to take the anger out on other people and, obvious, we've seen that over the weekend. stuart: well, i hated to say it, but at the top of the hour i editorialized on this, and my conclusion was the way things were going, somebody is going to get hurt. again, i hate to say something like that, but i think i'm on to something. what say you? >> no, i'm concerned as well. just the level they've already gone to. and this has to be some type of organized effort. the fact that it happened to three women and they're verbally assaulting women, women that have, you know, a big role to play in our country, and so where does it stop? you can definitely see the possibility that these people might cross the line beyond even that. stuart: attorney general of the great state of texas, ken

paxton, thank you for joining us, sir, we always appreciate it. >> hey, have a great day. stuart: national security adviser john bolton heads to moscow this week planning for maybe a meeting between president trump and vladimir putin. come in, bill parker, east-west institute coo, bill, welcome back. >> thank you, good to be here. stuart: do you approve of this kind of personal, one-on-one diplomacy? >> back in 1961 john f. kennedy caught a lot of grief because he was going to talk to cruise -- khrushchev. 1962 came along and, what, he already has a communication window up to khrushchev, and i think it made a huge difference. i think today if you look at the relationship between the united states and russia, we need to continue to communicate. remember you can communicate with your friends and your enemies. and not that russia is an enemy, but we can communicate with people that we're close to and people that we aren't. stuart: the president says if you've got a personal relationship with somebody, you can be pretty harsh with them

but at the same time stay on good terms. he says he's got a good relationship with president xi of china, but we're still in a trade dispute with china. he's got a personal relationship with kim jong un, but we're still going hard to make them change their policies. it works, doesn't it? >> i think it does. we've talked about diplomatic information, financial intelligence and law enforcement, and all of those are being used. stuart: now, the u.s. is going to present north korea, as i understand it, with a list of requests. do this in a certain time frame to keep on track with denuclearization. any worries about that? >> absolutely. we talked about this before, that the proof is in the pudding and in verification process service and so we're just starting that verification process. we're going to give them a list and say we want you to present us a list of all of your facilities. if they provide that, then, okay, they're telling the truth here. we are providing a lot of different requests to them, and they're going to come back with these list lists. as they come back and they're

verified, that means they're telling the truth. if they're not, then i think we have to back off and apply more pressure in other ways. stuart: you, on this program last week, i think you broke the news that we were discussing with north korea -- or south korea was discussing with the north about the removal of the artillery pieces from the dmz on the northern side so that seoul would no longer be in direct line of fire to high explosive military devices. >> that's right. stuart: this still ongoing? >> absolutely. stuart: and this is part of the whole thing? >> this is part of the whole thing. there are a series of requests that are going to happen from the north and from the south and from the united states and others as we build this relationship and figure out what it is that we can get to to finally get to denuclearization. it's a series of steps, and verification is a huge part of this. stuart: do you think that the president deliberately goes out for a personal relationship? >> i don't know what the president's personal thoughts are -- stuart: with these leaders. >> well, i think -- stuart: it's can diplomacy.

>> it's not just president trump. like i said, go back to president kennedy, just about any of our other successful presidents throughout history have reached out to other countries whether we like them or not and had communications with them, and i think that's what he's doing here. stuart: it's interesting that he's reached out primarily to rivals; xi of china, kim jong un of north korea, putin of russia. that's his way of doing it. >> right. remember what we said before, he's read the art of the deal, and he's read the art of war. stuart: yeah. do you think he should go meet the mullahs of iran? >> i think conflict prevention -- stuart: but his hard line is holding up. @not softening anywhere that i can see. >> i agree with you. stuart: bill parker, thanks for joining us. >> thank you. stuart: good luck, sir. listen to this one, surprise, surprise. chevy will be making the blazer in mexico. how will president trump take that? well, we'll discuss it. and, yes, maxine waters and political harassment -- i said it at the top of the hour -- we need to restore order and

decency or someone's going to get hurt. we have a congressman to respond to this in just a moment. ♪

♪ ♪

>> the "wall street journal" said last hour that even people who disagree with president trump are starting to question the toxic division that we are seeing in nonpolitical venues. roll tape. >> well, i think a lot of people, even if they don't agree with the president, are asking now is this the the kind of country we want where we separate into tribes, even completely nonpolitical venues. ari fleischer tweeting there are going to be republican and democrat restaurants. last week we were saying anthony bourdain was wonderful because he encouraged people to learn about other cultures and break bread with people maybe they don't agree with on everything and learn from it. and this week we're saying, no, separate, separate. no one can share a meal if they don't agree on politics. ♪ ♪ i have to tell you something incredible. capital one has partnered with hotels.com to give venture cardholders 10 miles on every dollar they spend

at thousands of hotels. all you have to do is pay with this... at hotels.com/venture. 10 miles per dollar? that is incredible. brrrrr. i have the chills. because you're so excited? because ice is cold. and because of all those miles. obviously. what's in your wallet? i'm not sure. what's in your wallet?

stuart: when you cut your profit foreca, when you look to the future and say, you know, it's not so rosy as we thought, your stock tends to go down. that's what happened with carnival cruise lines. the stock is down 8% back to 58. california congresswoman max keen waters encouraged her supporters to fight back against the trump administration and keep aha rahing trump staffers. watch this. >> i want to tell you that these members of his cabinet who remain rain try to defend him,

they're not going to be able to go to a restaurant, they're not going to be able to stop at a gas station, they're not going to be able to shop at a department store. the people are going to turn on them, they're going to protest, they're going to absolutely harass them until they decide that they're going to tell the president, no, i can't hang with you. stuart: they are absolutely going to harass them, so says maxine waters. joining us now, ohio congressman jim renacci. your reaction to that right off the bat, please, jim. >> well, good morning, stuart. again, it's just ridiculous. this is just the kind of stuff that just divides us, not brings us together. our problems are american problems, we need to work together. it's a great frustration for me being a business guy for almost three decades to see something like this, but this is normal washington. she's a washingtonite. she lives and breathes being in washington, and this is a problem. we need to work together. we don't need this nonsense. stuart: but this is not normal. i don't know the give and take in washington, d.c., but throwing people out of

restaurants, screaming fascist at them, screaming at the attorney general of the state of florida, forcing her out of a movie theater, that kind of -- this is not normal. i think we've entered a whole new level here, surely. >> well, i would agree, and that's what i said, it just gets worse and worse. it's people like maxine waters that really causes these issues. let her do her job, represent her people and move forward. there are a lot of people who like this president. sure, there are people who dislike this president, i understand that. that's politics. but in the end, he's moving our country forward. the tax cuts and jobs bill is working, let's move forward. stuart: i honestly think it's time for an adult in the democrat party to stand up and say, hey, knock this stuff off because somebody's going to get hurt. will you join me? >> i do. november's coming up very quickly, and they're not gong to do it. -- not going to do it. stuart: surely this does not work in the democrats' favor, does it? ordinary, average americans, do they want to see our public

officials in1u89ed and run out of restaurants publicly? i can't believe that's what americans want. >> well, what i'm telling you is there are some on the far left democrat base who want to gin this thing up and cause this to occur. i do believe that's a key. i see that all the time. i see it myself. most people know i'm a supporter of the president and believe we need to move these policies forward. i get it all the time too. but in the end, this is about moving our country forward. it's an election year. we've just got to get past it and move forward. i always tell people if you don't like the president, don't vote for him in three years, but i think people are going to have a problem not voting for him if we continue to move this economy forward. stuart: i want to talk to you about the supreme court when they ruled that states do have the right to collect sales taxes when they do online business. you're a business owner. how do you feel about this one? >> well, look, i've been a big supporter of this. right now in ohio we have something called the usage tax which nobody even -- many people don't know when they're signing their state tax return they're

saying i did not buy anything across state lines, so i don't want owe any taxes, but clearly they do. now we're putting the responsibility -- taking it off of them and putting it on the business. the good thing about this case is it also said we're not going to overburden the small business, which is really important as well. some of these small businesses. think about this, stuart, now you have the business who has to compete with the online business who couldn't compete. the brick and mortar store, now they're going to be able to compete because many people would say i can buy that on the internet for 7% or 5% cheaper because i don't have to pay sales tax. it's now going to help small business and those brick and mortar businesses in small town america. stuart: on the other hand, jim -- [laughter] the days of the free internet are gone, and it's us consumers who will be paying more, and it's state governments which will be taking in more. how do you feel about that? >> well, remember, this is already a tax -- this is a collection process, not a taxing process. i can tell you a personal story

about me where i was, i had the state sales people say to me you hadn't paid enough taxes in one of my businesses because i was buying across state lines. wasn't even aware. i was just paying the invoice. so in the end, this is a way that helps collect taxes and make a more even business across state lines. stuart: but if i'm a small business guy and i'm selling online, am i not going to get harassed by state authorities because -- on a compliance basis? how do i know which of these 10,000 different taxes you've got to pay? it's going to hurt me as a little guy, surely. >> well, certainly, and this is where the federal government should step in. this is interstate commerce, this is something i've been push anything the marketplace fairness act that my friend kristi noem is a big supporter of this as well. we need to make sure we don't hurt those small businesses. we've been pushing and pushing this for years. now the supreme court just got ahead of us. we need to fix this in washington as well.

stuart: how's the economy doing in ohio? >> the economy's doing great if ohio. unemployment's down. the big issue is always the same thing, trying to find enough workers for the jobs that are available. companies here are reinforming, the jobs tax -- reinvesting. the -- tax cut and jobs bill, of course we have the opioid crisis that seems to be bringing some negativity here. we've got to fix this, but the this economy's growing. that's why i'm so supportive of the president's policies where my opponent is an obstructionist. we need to continue to move it forward. stuart: jim renacci, thank you very much for joining us. we're obliged to you. >> thank you, stuart. stuart: this was kind of a surprise when we read this one. chevy, they're bringing back the blazer. you can see it on the left-hand side of your screen. nice vehicle. however, it's not going to be made in these here united states. >> no. stuart: where?

>> mexico. gm already has three plants, they employ 15,000 people in mexico, compare that to over 100,000 in the u.s.. but the united autoworkers union, they are not happy about this because mexican plants pay less than $3 an hour for these workers. and don't forget, you know, if they export over 80% of the vehicles back to the u.s., i mean, you know, that's not fair for autoworkers here in the united states. stuart: i wonder what president trump will think about this? [laughter] >> what do you think? stuart: he's not going to be happy. >> no, he won't. the uaw already isn't happy. stuart: i wonder what would happen to those blazers, you make them in mexico, they come to the united states. if nafta doesn't work out, they'll pay a that tariff coming back here. >> right, as president trump has threatened. can you imagine how expensive that would be? stuart: why general motors would make that decision in the first place. >> that's a very good question. stuart: if they can't sell them at a decent price -- >> yeah. but they make other vehicles in

mexico. three plants, 50,000 workers. stuart: could be they think nafta will eventually be sorted out. [laughter] >> a little optimistic. stuart: a few minutes ago we were down 300 points on the dow, now we're down 252. a netflix show so popular that it could influence your choice in breakfast? be i'm a little skeptical, but we'll deal with the story. it's a slow news day. we will deal with it, believe me. more "varney" after this. ♪ ♪ e for the 'lowest prices of the season' on the only bed that adjusts on both sides to your ideal comfort, your sleep number setting. does your bed do that? don't miss final closeout savings on the queen c2 mattress. now only $599, save $300, for a limited time. visit sleepnumber.com for a store near you.

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stuart: the white house plans to ban soe chinese companies from investing in tech firms based here. deirdre boll on the has -- do you have any details on this plan? >> timing is, this is supposed to be announced by the end of this week by the treasury department, and it may actually be less than 25%. we know the areas that are going to be targeted, tech, aerospace, electric vehicles and biotech. but the bigger picture is china keeps saying we don't just want to be the world's manufacturer of cheap toys, electronics or t-shirts while you, the u.s., get to have the brainy, heavy,

fast forward stuff. so we're going to try, as some experts have said, to steal about $50 billion worth of ip per year. some estimates are showing that, so that is why the trump administration is saying, okay, let's try to just block direct investment which a lot of people are saying, actually, this is more effective than all the a tariff back and forth we've heard about. because this, actually, is where this kind of transfer of intellectual property happens. by all accounts -- stuart: doing something about it at this point. >> at least my sources say it's a lot more effective than just fighting in the headlines about tariffs. stuart: investors don't like it, but a lot of people do like it. >> yeah. stuart: do something about it. deirdre, thank you very much, indeed. people continue to flee, that means get out of, leave high-tax blue states. that could mean big losses for dell accurates. we'll deal with that as the top of the hour as hour three rolls into view. ♪

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stuart: for a generation, some states have gone the european route. more government, more taxes. the europe new jersey, california, connecticut are the biggest adventures here. date income taxes, sales taxes, property taxes higher in those states in all of them have been run for a long time by democrats. time is. they're about to get a shot. a population drift to low tax state is becoming ours going to become a real flood. art laffer who will join assuredly calculates in the next three years 1.3 million people will leave high tax states for low tax. not that many people but it's a great deal of money appeared wealthier people who are moving, taking their money with them because they are fed up with losing half of it are more to the government. it becomes a flood because of

all those estate taxes used to be deductible. now they're not. why are high income earners supposed to do? they are already paying through the nose another expected to pay more. when the taxman demand 60% of your income, wouldn't you think about moving? the exodus will leave high tax states in a real mess. they promise all kinds of goodies and they promised skyhigh pension to state workers that they can't pay. some like new jersey will try even higher taxes but that will only make the exodus worse. in short, democrats will have a huge problem. they don't know what to do and some voters are abandoning their ownership and jumping aboard the trump agenda. it will take years to play out but the ball is rolling. fire up the moving vans. texas, florida, tennessee nevada coming here they come.

the third hour of bernie & co. is about to begin. ♪ "varney & company" is about to begin. ♪ stuart: former reagan economist art laffer and fox news contributor doug schoen. art, to you first. the exodus is about to start. it will become a real flood. i'm sure you agree with me. >> i do. i moved for exactly that reason and now with these deductions he really makes it much much more. saved identities in the marginal tax rate of 10% in the state. now instead of getting to deduct 4% of that and paying only met 6%, he now has to pay the whole amount. there is an alternative minimum tax clawback that he won't be affected, but a huge thing for states with high tax rates and also a large proportion of the people paid -- earning income of $500,000 or more. those states will be hit hugely

and those are you listed plus another few. d.c., maryland that are related. they will all come to tennessee where im. stuart: stuart: there's no state income tax in tennessee. >> you notice that appeared no state income tax either earned or unearned. low property tax. the only problem is we are growing so rapidly with such a big budget surplus in our credit rating is the highest in the nation. other than that we are an awful state. we have a huge surplus to its credit rating in the nation and the provision of public services improving enormously, especially in education. stuart: just wait. more people coming. doug schoen is with me. have a conversation. you say and i said this is going to hurt democrats but that is in the long run. in the short run it could hurt some republican congressmen.

>> it could because the republicans have that risk may be 20, 25 seats in the high tax state and the loss of the deduction will make them in the short term more vulnerable. long-term the states are going to be impacted adversely appeared largely governed by democrats in the makes the argument for democratic rule no matter how beneficent it may appear, and makes it unsustainable given this whole impact. stuart: if you live in new york city and i know that's a small number of people. i know it includes you. if you make seriously good money, you pay a tax rate of over 60%. >> i do. and i would tell you my event is fired up. i've been going down to florida more and more and i have fiscal smarts that art has. i'm not going to tennessee, but

i'll be in south florida and new jersey. stuart: seriously. >> i am serious. stuart: the suppose you earn a million dollars. 600,000 of that million goes to government. >> that is correct. it's almost more expensive to operate in a place like new york with more regulation and you want to be in a place where people welcome he rather than to investigate you. stuart: it's very true. fire at the moving van. a lot of furniture. >> as to why. i love both of you to stay there for a second here to want to check money because the dow industrial right now down 300 points. 298 to be precise. just stocks are actually up. wal-mart, coke and procter & gamble are up here the other 26 are down. by the way, treat seems to be

beginning to bite because as i understand it, since the first trade jitters appeared, dropping to the value of $2.5 trillion. that is what has happened because of the trade fear. should i be worried about my investments are laffer? >> we saw the strait issue really concerned about the market. i trust trump on economics. he knows what he's doing and he's doing it to get lower tariffs not higher tariffs but frankly it scares the bejeebers out of me and i hate this type of pocket trade. i was in the nixon white house when the stock market fell by 50%. the examples are everywhere about how protections really is the buzz killer in the markets and the economy. >> the argument is these terrace proposed are just a negotiating

tactic. you can't guarantee it, can you? >> i can't guarantee it. he told me he is a free trader all the way and i believe him totally. he ran an international corporation. he knows how to get the best value. all of that is really very true but it's still scary. you just can't help but feel that queasy feeling that it's coming back again. >> is a democrat and you are still a democrat. >> a free-trade democrat. stuart: is there such a thing? >> are used to be. we are sort of going out of business. this is the best thing that could happen to the democrats because trump's approval numbers were having not been as the stock market goes down short-term, the argument for republican control of the house in panic gets weaker and weaker. i agree with art. the president is playing with

fire here. i would tell him to back off. he's the president did not need. short-term, this is the firm has been for a democratic dirty was no message, no strategy and no plan. this gives us an argument were nonexistent. >> you can afford to be the democratic dirty. and if you love to the democrat party, no republican would touch with a 10-foot pole. >> now that your citizenship you are prepared to run and i'd be prepared to join your party and support you. stuart: you are truly crazy. doug schoen, art laffer, thank you for joining us. there will be more on this i guarantee it. more after this. look at the tech stocks place. most of them are down. these are not the big-name tech stocks. the white house reportedly says that is going to bar some

chinese american technology companies. stop the drift of technology over there. tech stocks down. stephen minich and -- mnuchin just redid this. investment restrictions and "the wall street journal" are false fake news. it either doesn't exist or not the subject very well. it'll be a not specific to china but to all countries trying to steal our technology. look at harley davidson. this is reacting to the trade stuff as well. european terrace could cost than $2200 per bike. it is moving some production to europe they say. the stock is down nearly for .5%. ge is the last day in the dow for the stock has been there 110 years. it's supposed to be selling its power business to a private equity firm. three and a quarter billion dollars not helping the stock out of the dow was up tomorrow

back to $12 a share. white house press secretary sarah huckabee sanders kicked out of the red and restaurant in virginia because she works for the president. after that, people gathered outside the home of homeland security secretary kirsten nielsen chanting and protesting outside of her private residence. the left knows no bounds but it's okay. maxine waters approves and encourages more people to harass members of the trump administration. fox news brit hume responds to all of this next. ♪ a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one.

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stuart: this is indeed a toxic political atmosphere. some examples about. white house press secretary sarah huckabee sanders asked to leave a restaurant in virginia because of her work with president trump. also, dozens of people protesting outside kirstjen nielsen home in response to the border policy. they took the protest to her private residence. california democrat maxine waters said about fighting the trump administration. roll that tape. >> i want to tell you that these members that this cabinet who remain and try to defend him are not going to be able to go to a restaurant. they're not going to be able to stop at a gas station. do not build a stop at a department store. the people will turn on them and protest and absolutely harass them until they decide that they are going to tell the president know i can't hang with you. stuart: absolutely harass them the words that were used.

senior political analyst brit hume. i editorialized about this at the top of the hour and i concluded by saying somebody is going to get her. >> certainly a distinct possibility. this is being pushed beyond the limits we've ever seen before. we are reaching out to the depths of incivility we had previously experienced. i would attribute it to the extreme reaction to this president. people regard him with a kind of paranoid loathing that you might reserve for a tinpot dictator taking charge in this country. this is what a lot of people believe he is an intense tv. you see people like former obama is saying that he's destroying the rule of law. stuart: the language that's being used. the word not say, the word concentration camp.

violent language. >> it is. even as reasonable and intelligent a man of medicaid and come a former cia has been a wonderful public servant for a long career in the military and intelligence lake and in a tweet that he posted some of the children been separated from their parents at the border to auschwitz. they posted a photo of the train tracks rolling into auschwitz. this is derangement. even mike hayden has come down with it appeared remarkable. stuart: isn't it time for adults within the democratic party to stand up and say enough? calm down, people. i don't hear anybody saying that. i don't hear anybody take on maxine waters. >> that is true. i don't think a lot of quarters by democratic politicians. but i think that this kind of behavior will do nothing to help

the democrats in the upcoming midterm elections. if they are portrayed as crazed extremist willing to hound people out of restaurants and harass them in their homes and make hitler analogies, i think i will drive people away from the democrat and make mr. trump and his people who work for him trying to do the best they can more sympathetic. i can't help them. stuart: i think sarah huckabee sanders and the other women who were harassed all responded with real class and dignity and style. i think that is the way conservatives should react. >> it can be hard to rise above these things sometimes. the president has a terrible time doing now. but the people working for him had done so. stuart: thank you for joining us. very difficult subject. i hate to see america come to this. i really do. >> don't we all.

thanks a lot, sir. by the way, trish regan will be interviewing sarah huckabee sanders. mike huckabee will be on "the intelligence report" today at 2:00 p.m. find out what governor huckabee thinks about what happened to his daughter. a couple of other markets. more in the price of oil at $68 per barrel today. i should also tell you that the price of gas continues to edge down. the national average for a gallon of regular is now $2.84. down a fraction from yesterday. down about 10, 12 cents in the last couple of weeks. illinois, do they have a state pension problem. $130 billion worth of unfunded benefit. they haven't got the money to do it. coming up, joined by illinois governor. i want to know, what can he really do about this?

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stuart: at least four wildfires burning in northern california are the largest north of sacramento destroyed more than a dozen buildings. hundreds have evacuated. high wind in the area. officials don't know when it will be under control. the last toys "r" us store in the entire country will close friday. the final liquidation sales wind down in many stores already have the most popular items like playstation or nintendo. you can say this is the end of an era. a story that i think is interesting. "the new york times" has compiled the facebook patent applications and some of them quite frankly appeared to me at least to be really kind of creepy. tell me all about it. >> a lot of people. 5000 patents in 2012 and other future to elegy. to detect whether your border

surprised him a c. on your news feed. another one uses your phone's microphone to determine which television show you're actually watching. stuart: wait, wait, wait. i've got a phone. there's a microphone on this phone? some technology could apply to this file and listen to what tv station and probably watching? >> yes, what show you're watching. stuart: sorry i interrupted. >> and if you're in a relationship with someone depending how often you visit their page. there is something there. another one actually tells you whether or not you would get married soon. stuart: to me that is just big brother stuff. i've got to divert your attention because this is clearly a new low. now we are down 360 points. the lowest since may be 24,218 lowest level since may the eighth.

this really is all about trade. a new trade worries. president trump reportedly going to stop some chinese companies with investing in american technology companies. the nasdaq is down 2% at this point. we also have oil, $68 a barrel not really affect in the market to my knowledge. the real problem on the stock market is the trade fix. the trade problem. we've got a new low down 365 points as we speak. energy stocks are down. not quite sure why because it got oil at $68 a barrel. the story here is down 360 on the dow industrials. next, we've got two items for you. number one, joined by a constitutional lawyer who said the more investigation is tainted by political bias right from the start. peter strock fbi guy will be subpoenaed.

but what does this mean for him in the investigation. judge napolitano on not one. -- on the fact one. ♪ ♪ it's time for the 'lowest prices of the season' with savings on the new sleep number 360 smart bed. it senses your every move and automatically adjusts on both sides to keep you effortlessly comfortable. and snoring.... does your bed do that? for a limited time, save up to $500 plus free home delivery on sleep number 360 smart beds. ends june 30th.

stuart: trade is the problem. if you look at the market, the lord today with 360 points. trade is the big problem. there has been a report that president trump will restrict the inflow of money from china into america's technology companies. technology stocks are way down. however, treasury secretary stephen mnuchin treated this early this morning and i'm going to quote it directly. on behalf of president trump, stories on investment restrictions in bloomberg and "wall street journal" are halted. fake news. the leaker either doesn't know exists or doesn't know the subject very well. not specific to china, but to all countries trying to steal our technology. that does not help the market. go back to the nasdaq, please.

way, way down. we've got a lot from the nasdaq which is where the companies are concentrated down over 2%. that is the biggest one-day drop is seen in a long, long time. 166 points down is the nasdaq. the technology companies were some of the money coming into those companies may be restrict it by the president and that's why -- have i got this right? >> you absolutely have the right. let's put things in it. we've been hitting record highs for the technology index. today the chipset to her and the taliban and the like and also the chinese list of firms here in the u.s. but the likes of alibaba, i.t., happy to clients. interesting they haven't listed it from that tweet from stephen mnuchin. with the clarity of the administration they will rethink this. stuart: the restrictions or

money coming into american companies would apply to all countries. not just china. if that's the case, a bigger restriction than we thought in the first place. we are up exactly 1.5% on the dow. 370 points in dow down 2% on the nasdaq. the technology companies being the biggest losers. the headline coming into us from "the wall street journal." the poisonous tree was written by our next guest, david reagan. a constitutional lawyer served in the reagan-bush 41 administrations. welcome to the program. i believe you are saying that the more investigation was tainted by political bias right from the start. make your case, please. >> that is correct. based upon what the ig report tells us and the facts are quite damning. a number of people who manifested bordering on hatred

towards triumph, the same people peter stzrok and the lead with the russian investigation that was code-named crossfire hurricane and there are a number of other issues relating to how it was initiated. the use of informants et cetera, to federate. the fact that there's really no basis to go out to the trump campaign. i'll assigned to investigate the russians, particularly in the context of using force. i would suggest we pause the investigation. as a line of supreme court cases that talk about the standards. if the governments actions, particularly in the law enforcement context of absolutely shocking and having a bunch of fbi people trying to impart presidential election is about as shocking as you come. the remedy is suppression. stop all the prosecutorial efforts from going forward.

stuart: now, we've seen the text damning indeed. they couldn't stand trial. is there any proof we can point to that they actually acted on their bias? >> excellent question. we cannot definitively ascertain is not a direct impact. she alleges sexual harassment in the corporation we did everything by the book or we fired her because she was incompetent and rediscover a bunch of messages from senior people in the corporation. manifesting the most hideous agenda of bias. which way would the jury look at this matter as we mentioned vices naturally base human behavior to believe. so no definitive evidence yet. but pretty bad.

it's looking pretty bad given what we are ready now. >> last question. if you want the investigation paused or put on hold or in some way stopped, who does that? does that have to be in order for the president of the united states? >> call me naïve, my hope is this is something the deputy attorney general rosenstein would consider if you look at the facts. someone being prosecuted by mohler by subject to subpoena. i suppose the president can do that. probably would not be politically ideal, but it is the right thing to do. the ig investigating this matter. let's posit and see what comes out. i will be the first one to see them up again. stuart: david, thank you indeed. i've thank you indeed get a better segue way for now because the dow industrials now down 400 points. the biggest drop since may the

fourth. quite concentrated in technology stocks because we have a suggestion from the president that he will stop the inflow of money from some countries, maybe china into american technology companies. that is really hurting the sector. down 405 points. the nasdaq down 2%. >> it is now dropped below the 15 moving average and that usually is a signal to a lot of these funds out there. there is some that may be distorting these values with the end of the month rebalancing, which was on friday. there might be some distortion with some new stocks have play. there is the money being taken off right now. stuart: trade is the problem of the day close to 400 on the dow. bob goodlatte, judge napolitano

is here. what's the significance? >> one of the people david rifkin was talking about manifested, let's be candid, a hatred of president trump. not unusual for one for his mid to hit the target of its investigation. you don't want fbi agent to be choirboys. but why he is complying with the subpoena is beyond me. he's still being paid. he doesn't have his badge, gun. he doesn't have a security clearance is really neutralized, but he is the target of the inspector general investigation and probably a criminal referral. whatever he says in the suppose it's a great can be used against him. what will come out of it? leaks. they will make their narrative. he should either get the

subpoena cost or invoke the fifth amendment. he's told them he is willing to speak. what can he possibly say to justify those texts. >> not the legal charge, but we've seen these tax where he expresses genuine hatred for president trump that suggested he will stop him. >> i imagine he has in his own mind some justifiable explanation. stuart: no, doesn't have an explanation. he can come and truly say i did know anything about it. i don't like the guy but i didn't do anything. connect the inspector general whose the most neutral high-ranking person here has said what's the bias? plenty of it. did it affect major law enforcement decisions? it did not. so why are they interrogating him and why is he willing to be interrogated? we will find out from the leaks on wednesday afternoon.

i thought the supreme court decisions for coming today. the three remaining hot potatoes thursday. transit got it very thank you, judge. a couple markets to check for you. and overall downside move for the dow down 380 odd points. gold is not moving. they claim show me that i did low for some time. actually up 13 bucks. 6000. we have keith fitzgerald with us on the phone to talk about the latest downside move. earlier this morning you were seeing you are very worried about the trade situation. you are ready to call it quits and start selling. are you now? >> you know stuart, that is always the risk of being in the market. you want to let the markets make that decision for you and today they've clearly done that. you aren't selling mode today.

stuart: how long is this going on for? i know you can't really tell us that. if we keep doing this tit-for-tat stuff coming this is not going to go away, is it? >> the president went for nearly threatening things is belligerently so. that never ends well. i think we need to brace ourselves for the very serious prospect that this is going to be with us for a little while until cooler heads prevail. stuart: unless somebody blinks. we get the steering wheel out of the window. thanks for joining us. well appreciated. go industrials down close to 400 points. that's the market story and we are of course on it.

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>> i'm nicole petallides victor fox business brief. the sob is underway. the dow jones industrial average more than 400 points at the lowest point down four of six. the major sectors are selling off including technology. that is one area really under fire. this has the u.s. plans to bar some chinese companies and their investments in u.s. tech companies. you are seeing tech selling off. mcdonald's, caterpillar are among the big lagers. caterpillar and boeing accounting for a big chunk. trade relations comments you see adobe down 5% of the dow is now down 1.5%.

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stuart: big fella from the market right now down close to 400 points. why? we are beginning to get response from china to president trump trade threats. vis-à-vis china. according to "the wall street journal," president xi, china slater told a group of ceos including many americans that beijing plans to strike back. he's got a lot more. what else? >> you have a notion that if somebody hits you on the left cheek, you turn the other cheek in our culture we punch back.

stuart: that's harsh. a harsh counterpunch he said to a group of ceos. that is why this market took not exactly a plunge, but certainly sold off down about 250-point, then sold off to a minus 400. that is where we are now. punch, counterpunch. president trump, all happening right now in the markets paying the price. i've got a totally different story for you. serious stuff. huge pension problems. about $180 billion with the unfunded pension benefit. we've got to pay out on the future, but they don't have the money. join us now is the governor of illinois. welcome to the program. the obvious first question, what can you do about this? >> stuart, good morning. we have a huge debt problem in illinois. we have almost $200 billion of debt, pensions and other forms

of debt. there are three solutions to her challenge number one we need significant pension reform and we put that forward in our legislature. number two would need to shrink the cost of our government privacy. we have the most expensive, largest government bureaucracies of any state in america. number three, we make our economy more competitive, grow faster, more good paying jobs. stuart: three responses to your debt challenge that you have to get them through the legislature. i know you're laughing, but you're not going to get much done, are you? >> we had a supermajority against me when i ran for governor, became governor three and a half years ago. we were able to pick up six seats in the general assembly in springfield in 2016 even though president trump lost illinois by him with 17 points. i'm committed to picking up nine seats in the general assembly this election cycle. if we do that, our corrupt

political boss michael madigan has been an legislature since 1971. we get him gone and will make big changes. stuart: do you have to pay these pensions? is it the constitution that those pension payments are sacrosanct so you've got to pay them. that means you've got to cut existing government services are existing government workers so you can pay retirees. that's the situation you're in at the moment. >> that's pretty accurate. we do have that obligation. it's more obligation as well as financial obligation. their constitutional changes we can make to can make our pension system that are fair to everyone. i put forth a plan that would save us $2 billion a year, so that would be a material budget savings and help us balance the budget and get to a funding number one. number two, with some of of the most expensive government bureaucracies are more than 7000 units of local government.

i sued my first month in office to change the way they force government employees to pay union dues. the supreme court here in washington right now. if we win our case that i started we will transform the way government is structured and compensated and help our employees and taxpayers. stuart: that's the case is the supreme court right now. >> that's right. i started that. i sued them and i signed an executive order on that 3.5 years ago. they kicked me out of the case after six months. i'm a volunteer. we can transform the balance of power between taxpayers and government workers all over the country. stuart: i do want to pile on the bad news for the negatives, but you do face an exodus of wealthier, better paid people out of illinois because of the new tax law. >> that's exactly right.

you know what, what we can do is pick up a few seats in the general assembly. we only need a few and we can make it more competitive. if we reduce the regulatory burden with our workforce, location, transportation network, we could become one of the fastest-growing states in america and will grow our way out of our problems. stuart: i like to end it on a positive and you just did. thank you for joining us. we appreciate it. check the big board. we come back a little bit off the lows of the day. down 400. now we are down 330. president xi says china is ready to punch back hard on trade. harley davidson put in a number in the terrorists. they say they are going to cost them $2200 per bike. it cost early $2200 per bike. we will tell you what they are doing in response after this. ♪

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stuart: harley davidson getting hit in two ways by this trade spies. number one, the cost of raw

materials which they use going up as we impose tariffs on imported steel. number two, the europeans are going to impose tariffs on our bikes going over there. that's a problem for harley. jeff flock is at a harley harley dealership there. what's going on? i hear that they are going to send some bike production to europe. is that true? >> that is true. even though the price of a harley won't be going up here in the u.s., the problem is it's going up overseas. the tariff was 6%. they made a bike here, shifted to europe by 6%. it is now 31%. that is reported earlier increases the cost by over $2000. the company can jack the prices up and expect to sell in a vexing europe which is a growing market for them. here is the regulatory filing from this morning. harley davidson will be implementing a plan to shift production of bikes from the e.u. -- before the e.u. from the

u.s. to their international facilities to avoid that tariff. that means they'll stop making the bikes for your pure in the u.s., which is what they were doing and instead make them in brazil, india, australia and thailand and that ultimately can cost jobs. as you point out, the great american company and they are getting hit twice both ways. you know, not an intended consequence of these tariffs but that's what it is. stuart: what's the mood of the dealership? >> well, little bit. as you point out, they are not raising the price on a bike here. the problem is for the company and for jobs here in the u.s. not so much the dealership but the guys to make the harley is because they are not able to make our leaves for europe anymore because they cost too much. jobs is obviously one of the key reasons for this whole thing. stuart: one more time in the right place at the right time.

jeff flock, see how later. thank you very much indeed. the dow down 340 points. there will be more "varney" after this. ♪ alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. my secret visitors. appearing next to me in plain sight. hallucinations and delusions. these are the unknown parts of living with parkinson's disease. what stories they tell. but for my ears only. what plots they unfold. but only in my mind.

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>> we will show you what happened today on the cell up as you can see i got progressively worse. and hit a selling so to speak. they made some harsh comments about trade with america. that is hurting stocks. netflix down 6%. each such a significant selloff. 6% down on netflix.

there is a significant loss we are much obliged to you. >> thank you very much. so far he hasn't responded. you know the threat that's on the table. if the chinese dare consider a response to the $200 billion of additional tariffs. he will up at another $200 billion so what we hear is this idea that he is not happy and he plans to fight back in the west. if someone hits you on the left cheek you turn the other cheek. he has not indicated how or exactly or how he would punch back.