never gonna happen. >> varney, go. stuart: okay. good mornings, dagen. deadline day for canada. the president says get on board with a trade deal, or we'll hit you with tariffs. canada is in a tough spot here. they need us more than we need them. prime minister trudeau, angered president trump at the g7 summit, remember that? mr. trump takes things personally. maybe that is another reason why our president is holding to a very tough line. the two sides are talking right now. we and the market are waiting for announcement. coke getting in the coffee business big time. that is logical. soda sales are falling.

coke needs a replacement. they're buying costa, british-based coffee chain and starbuck's main rival. coke has the reach to turn it into a global challenger. they did pay $5 billion. when warren buffett speaks, people listen. he told fbn's liz claman, apple should not buy tesla. there had been speculation about that. since buffett owns $56 billion of apple stock. when he says don't buy tesla, they probably won't. it is a wait-and-see day on trade. new market highs and maybe a trillion dollar valuation for amazon. we hope that it will all be revealed in the next three hours. thanks for joining us. the friday edition of "varney & company" is about to begin. ♪ >> after the deal was made with mexico, canada came along

negotiated at the white house in our territory. it could happen. we'll see what happens. [cheering] and if it doesn't happen we'll put tariffs on cars coming in from canada. that will be even better. this country is tired of being ripped off by other countries. [cheering] stuart: you heard the president right there. commenting on trade. stocks down yesterday because of some negative news on trade. we're going to be down again this morning. and again i think trade is probably reason unearnty around trade. where we're at. what is the latest ashley. ashley: we hear the atmosphere is good. everyone is making progress, blah, blah. we hear there is still some distance on key issues. canada wants to keep the nafta court, take your grievances if another country imposes tariffs or does something. right now it is set up you can argue the case. the u.s. wants to drop it, it impinges on u.s. sovereignty.

we shouldn't have to go to a court to explain what we do. that's a big issue. also the dairy issue. the issue where u.s. dairy products are taxed to the hilt, close to 300%. the u.s. wants that abolished. canada is hanging tough we understand on some agriculture issues. those are the two biggies. we'll see if we get those resolved by end of the day. stuart: they are talking. we should expect chrystia freeland, canada economic minister in front of the microphones. let's see of the she just arrived. i'm told she just arrived for the talks. ashley: okay. stuart: look at this. this came out of the blue. coca-cola buying the british coffee chain costa. they're paying five billion dollars for it. come on in market watcher, keith fitz-gerald. it occurs to me coke's got the money and got the global reach

to turn costa to a real global challenger to starbucks. what do you say? >> i think you're spot on, stuart. not only will they get additional products. because of this acquisition, they will get a bricks and mortar presence. stuart: i'm sorry, i have to interrupt you, chrystia freeland is speaking. trade on canada. >> [speaking french] stuart: ladies and gentlemen, i'm sorry, she started to speak in english. then she went to french and disappeared. she walked away from the microphone. ashley: see you later. stuart: i don't know what she said at first. i think she is saying they're still talking. things are still positive. ashley: that is what she's been saying last couple days. stuart: briefest of updates i ever seen from a foreign minister. that is what she said. no impact on the market. back to you, keith, you were telling everyone that i was right. costa could become a global

player against starbucks. keep that thought. go ahead. >> no problem, it as your show, stuart. in all seriousness i think that is spot on, because it gives them retail presence. it gives them bricks and mortar and viable channels. if they play their cards right, they can come with pepsi. stuart: liz speaking to warren buffett about apple and tesla. roll tape. >> i support tim cook. i think it would be a very poor idea to get into the auto business. it is not an easy business. stuart: okay. so it is a poor idea to get into the auto business. i think that puts the kibosh on it, doesn't it? >> you know, stuart, i'm very suspect of this because he owns a lot of stock. i think he is sending a message. what he is saying he doesn't care about the automobile industry. apple is arguably already in it with the ecosphere and software.

what he is saying musk is not too reliable partner with apple. read between the lines. that doesn't sit well with me. stuart: you don't think -- there had been speculation, apple has the money. warren buffett is a huge shareholder of apple. doesn't that just end any possibility of a deal to buy tesla? if warren buffett says it's a rotten idea, surely it doesn't happen? >> well, yes and no, stuart. obviously he holds a lot of sway. he is one of the world's greatest investors ever so you would think that would be the case, but, he doesn't play by the rules the rest of us play by. there are a lot of ways you can structure a transaction. you can strip off particular tesla assets, if you don't buy the company, and get the technology. whether it constitutes a car business, he is is manufacturing guy, remains to be seen. stuart: sorry you were cut short by canada's foreign minister speaking french. i do apologize, keith. we'll extend it the segment next

time around. ashley: we understand the foreign minister there was on her way into the building, just stopped by the microphones. was looking forward to meeting with ambassador lighthizer. no news. stuart: no comment. she established a presence she is there. you can expect to see a lot more as the day progresses. it is a deadline. ashley: it is. >> go to politics. president trump freezing pay raises for federal employees. two million federal workers will not get 2% raise they were expecting come january of next year. larry o'connor with us. also with the "washington times." all right, the president says this is to save money. are you buying that? >> i am. you want this in english or -- because i can. ashley: do it in french. stuart: news speak. i will take that. >> politics of this stuart, are multifaceted actually. on broad scale this is trump base. many swing voters voted for the businessman who promised to drain the swamp and bring business sense to how government

works. to them this makes sense. the government is running at a deficit right now. we have debt for many years to come. and it doesn't seem right that two million workers across the board get automatic pay raise. that doesn't happen in the real world. doesn't happen in the business world. doesn't happen in the world of most american employees. couple that president tried to earlier make federal employees to be fired. make it easier for collective bargaining to make place, make the raises tied to merit. that is how we get raises real world. if we're a good employee maybe we get raised, if not we're fired. however there is a problem. that has to do with one congressional district in in area in washington. barbara comstock, republican, she has a whole lot of these federal employees in her district. she could be one of those house seats that could flip to democrats if it doesn't play well with her voters. that could be one of the votes that ends up being, going to a

democrat majority. she came out against this. we'll see how it plays out next two months. stuart: i think you tip-toed around an issue. i don't think the trump base likes federal workers. ronan farrow's former producer says nbc put a stop to reporting on harvey weinstein, the order came, the producer says, from the very highest levels. larry, this is quite an nbc scandal, isn't it? >> it is. noah oppenheim, the president, named in "the new york times" article as somebody standing in the way. within two months this ended going to the new yorker and won a pulitzer. nbc news is in the news business, breaking big stories, getting a lot of attention, getting rewards, that is critical part of the news business. you add to that the fact that nbc is tied to universal and comcast. they had higher end hollywood deals going on with the weinstein company. you have to ask did that come into play with the decision to put the kibosh on the story with

other relationships. let's not forget, nbc news had their own matt lauer problem brewing under the surface. at what point, stuart, does the ceo at comcast, some of the top executives pick up the phone, what kind of shop are you running over there? you're a liability for our company right now. stuart: well-said. larry, thanks for joining us. we'll see you room soon. that is a fact. where will we open the market friday morning. 20 minutes to go, we are down again. triple-digit loss. down 50, 60 points. we're hanging on word about trade with canada. when we get announcement, if it is positive you might see the market move. we have a burger boycott centered on politics. the fast-food chain, in-n-out burger, donating to the california republican party. the horror! democrats not happy with that. my take on the boycott they propose. apple set to release new iphones september 12th, leaked photos and specs of the

new phone already hit the internet. we'll tell you what you can expect from opinion ale es big event. apple's stock is up again. arizona senate race taking the center stage. another pro-trump republican facing off with a far left democrat. congresswoman mcsalary joins us live after this.

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stuart: onward and up -- and onward and upwards. it's friday, come on. apple, what that is i'm trying to say, apple's stock up a buck this morning. 226. that is another new high, that's premarket. how about amazon, if it gets to 2057 a share. smith & wesson, gun company, american outdoor brands, they gave a rosy forecast. look at that, 21% higher for a gun company, just as another gun

seller, dick's sporting goods, went down because they got restrictions on gun sales. then we have this. former enron chief jeffrey skill something released from prison. what happened? ashley: he has. he was sentenced 24 years back in 2006. he was convicted on numerous counts of conspiracy, securities fraud, insider trading you name it after the collapse of enron the energy company, he struck a deal. done 13 years. he is being released to a halfway house in houston. 40 million of his fortune has been frozen. they will be distributed to the victims of the enron collapse. but he is out. stuart: okay. let's get to the arizona senate race. trump endorsed congresswoman martha mcsally, going up against kyrsten sinema. who described herself as a socialist. congresswoman mcsally joins us. the race is shaping up as a straightforward trump versus

socialism. is that how you see it? >> well, absolutely. there is a lot of contrast. my opponent called herself a proud prada socialist. while i was wearing a uniform, deployed in harm's way after 9/11, she is protesting our troops. you may have seen the ad we put out. in a pink tutu. this is, there is a lot of contrasts here. she is cloaked herself, been through an extreme makeover. but ultimately she comes from the radical level. that will be the contrast for the next 67 days. stuart: when you say build that wall, i believe you are in favor of the wall -- >> yes. stuart: how does that resonate with the hispanic voters in arizona? >> well, arizona wants the border secured. i won hispanic voters in my swing district. and i lead on border security issues as the chairwoman of the border security subcommittee. we have cartels trafficking through communities. this is a public safety issue. it is a national security issue.

it is certainly fueling the opioid crisis, killing people in our communities that knows no race or other boundaries this is something unifying issue. we must secure the border. give the opportunity my extreme left democrat opponent voted against border security. just in the last few months. so she tried to reinvent herself. she is against the issues unifying for arizonans. stuart: at the moment polls show you dead heat or your opponent ever so slightly higher. are you expecting help from president trump with a speech in arizona before the midterms? >> that is certainly our hope. we got a strong endorsement from him. we look forward to him. the vice president, others coming out to arizona to energize the race. left is on fire with energy and resistance against the president. the economy is booming in arizona because we worked to cut taxes and roll back regulation. we're very strong military state. we worked to rebuild our military, support our veterans. phoenix va is in my opponent's

district. she was asleep at the switch when veterans were dying. they know so much is at stake, to include judicial appointments and confirmations. stuart: we reached out to kyrsten sinema. we have not heard back yet. >> she is probably out shopping for tutus. stuart: what is your fondest memory of senator mccain? >> well, i'm here in d.c., we're going to have him lie in state and honor him. i came from the arizona service yesterday which was awesome. look i studied john mccain as a cadet at air force academy. they taught us how to return in honor if ever shot down and captured during training as an american hero. when i first ran for congress, he came to an event, here was this icon, this giant telling the crowd the difference between martha and and i we're both fighter pilots, her takeoffs equal her landings unlike me. she shoots down airplanes and i get shot down. here is this man, who is joking about the sacrifice that he

paid, being shot down and tortured for five 1/2 years. laughing with me, fighter pilot banter like we do with others. i think back, i have so many other memories. i'm so honored gotten to know him. stuart: martha mcsally, thanks very much for joining us this morning. senator mccain will lie in state today. moving on let's talk about money shall we? look at the futures market. how we'll open this friday morning. we're going to be down following yesterday's downtrend. we're waiting on some word of trade with canada. plus unheard of in the world of sports, an umpire at the u.s. open gave a pep talk to a player in the middle of the game. that's extraordinary. ashley: coach? stuart: out of the question. ashley: like his coach. stuart: coaching him. roger federer not happy about this. we'll play you his response in a moment. year, i am sorry about that.

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mat i can, once ranked 3rd in the world. he essentially plays dead fish. on a couple of aces let the ball go by him. he has history of this. he has been punished before by the atp. the umpire, who is one of the top-tiered umpires, called some. biggest matches, leaves his seat, goes down during a changeover to talk to curios at the time he is trailing three love in the second set. he dropped the first set. the umpire can issue a code violation. by the fourth violation could lose the much. that is what he should have done. he is not his father, not his coach, completely inappropriate. roger federer who curos will play next is disgusted. >> not the umpire's role to go down from the chair. i don't know what he said. i don't care what he said, but it was not just a, how are you feeling. i'm not feel something well, go up to the chair. it was there for too long.

it's a conversation. conversations can change your mind-set. stuart: that is outrageous. no umpire in any sport can possibly do that. >> i'm going to guess game, set match for this umpire. he will not work at u.s. open. i will be shot if i did. curios if i'm commissioner of tennis i suspend the guy. ashley: suspend him. stuart: ever seen anything like this sports? >> no. disgusting. stuart: referee at soccer game, let's have chat with the goalie. you're not playing well. >> so talented. waste the stuff. stuart: jared, take us through it. i found the story. >> i can't wait to play federer. they are great matches. stuart: dow will be down at opening bell. but not as much as we thought it would be down. about 40 odd points after yesterday's loss. we'll take you to wall street after this. alerts -- wouldn't you like one from the market

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♪ stuart: have we got a friday morning show for you. in a moment, a special treat. we brought back a lady who made her first appearance on "varney & company" just yesterday. but she was so good, we liked what she had to say, so we brought her back. she is going to offer commentary

right from the get-go just as the market opens. it will open in about 15 seconds time. basically this is a wait-and-see day i would say. [opening bell rings] we'll wait to see if we come to a deal with canada. we'll wait to see if amazon hits a trillion dollar valuation. we don't have long to wait, three, two, one, 9:30, boom, eastern time on friday morning. we opened lower. we're down 23. we're down 30. do i hear 35? i see 29 points lower. fractional very small loss from the get go this friday morning. s&p down a tiny fraction. .15%. pretty much the same story on the nasdaq. show me that please. down .1 of 1%. still way above the 8,000 level, how about that? big tech names. most of them did pretty well yesterday. draw your attention to microsoft. only down a fraction this

morning. amazon moving up again. $7 higher at 2009. apple it is in the news. we'll discuss it. it is at 226 as we speak. let's take a look at tesla, in the news very much as usual. warren buffett says, apple should not buy tesla. got pour on that, believe me. that is a big deal. who is with me on friday morning, tell you right now. jeff sica, aforementioned but unnamed. melissa armo. kristina partsinevelos joins us of course ashley webster. i want to start on a solid note. so i'm bringing back melissa, because you think the market goes straight up from here. 27,000 on the dow by the end of the year? >> definitely by the end of the year. it could even happen sooner. this rally, even in the s&p, i was thinking 3,000 for the s&p. we got over 290. three weeks ago i said 3,000. today is a critical day. let me tell you why.

we'll find out today if canada is going to agree to these terrorists with the u.s. let's say we do. say everything turns out great. expect the market, even though we're opening down, take off into the close over a holiday weekend. if we don't, i don't think that is a big of a deal because we had such a great rally. stuart: extraordinarily bullish, melissa armo. wait a second. it's friday. you know what that means? jeff sica is on the show. are you pouring cold water on our newcomer, new star of the show? go. >> i was the old star of the show. welcome to the new star. but here -- you know what? i understand the optimism, all this optimism, ignorance is bliss, i get it, the issue i have with the market is now, you know, we have a year, the market is up i think 6 1/2%. the market has done okay. the economy that has done great. what i see now, after this

incredible bull run, with a market that has been driven by five stocks, that account for 50% of the appreciation in the s&p 500, we're beginning to see the possibility of pullback on those five stocks, that will affect the markets. ashley: what about -- >> even if we pull back. stuart: take that zika. doesn't mean we'll turn from bullish to bearish. >> we're so far away from going to bearish, we're so far aware from market going bearish it is unlikely. if it had it would have happened earlier in the year when we had a massive selloff. i have to call it what i see it. i'm looking at charts. >> we have a market up 6 1/2%. hasn't had a pullback in a while. yes i'm looking at charts too, what i see is very narrow market going towards the fangs, big tech companies. what i see a lot of investors who have been starved out of the bond market in the stock market that are anxious to take profits

because the market can't go up forever. >> true. if they won't take profits if they think the stocks are going higher f you think apple going up to 250. if you think amazon is going up to the next number, i forget what analysts came out 2500 a share. they will not get out of here. stuart: we unleashed the whirlwind. i have to move on. ashley: tennis match. stuart: coca-cola getting into the coffee business. they're paying five billion for costa, a brittish coffee outlet. kristina, i think they're going to make, i think they will turn costa into a global rival for starbucks. >> you have the ceo of coca-cola saying this is coffee strategy, not a retail strategy and they plan to possibly open new stores in asia. there is whole another market they can tap into there. they're saying, they have to shift away from sugary drinks. think of it like that. coke has not been doing so well. everyone is talking about fizzy drinks, sparkling water, seltzer

like spin drift. why not focus on coffee? look at the market, it is heavily saturated. there are starbucks everywhere. mccafe does very well as well. it will be tough for them to compete. but at least they're entering the market. stuart: i think it's a very good move, frankly. warren buffett says, apple should not buy tesla. it would be a poor idea, that is what he said. that kills any possibility, doesn't it. >> really hard to disagree with warren buffett. he has been very successful and been around a long time. apple is taking off like a rocket. tesla had so many difficulties why would they get involved with that. stuart: you want to take the other side. >> i know lemonade stands in new jersey make more money than tesla. i agree 100% with warren buffett that nobody, nobody should buy tesla because sooner or later tesla is going to be given free to some company to just take

them, another automaker takes them over, get them into this mess that elon musk created for them. stuart: all right. jeff. okay. moving on, apple is going to unveil new iphones september the 12th. kristina, we have some idea of what they're going to release. >> there is three phones. the iwatch. so some of the three phones, one will be in gold. one will possibly be the iphone x s. shows thatp pell is upgrading that phone. a larger phone. more affordable phone. apple watch will have a larger screen. there is rumors uv index so you know the uv level outside. i want to show it, bring it up, the invitation sent off to those invited to the big september 12th affair, it is a circle called gather around. there is a debate what this circle actually means. does it mean the new apple iwatch -- i like, people like,

they get excited. there is hype around apple. >> i'll tell you what it means. >> it could also be the campus. ashley: what did mean? >> this is my opinion. it means they keep releasing new versions of old stuff. ashley: round and round they go. >> now painting phones. bolting on all the useless gadgets. this to me, yes, the iphone is a trillion dollar product. a lot of people anticipating apple move up. it will not move up by rolling out another iphone. they need more, and the watch -- ashley: they need other products? stuart: put apple's stock back up on the screen, will you, please? it is back to another record high at, 226. i saw it a moment ago at 227. >> it was 228 yesterday. stuart: we're seven minutes in, the dow industrials are down 47 points as we speak. now some individual stocks are moving. i'll start with the parent company of gunmaker smith & wesson.

they gave a rosy forecast. did you see that? the stock is up, rosy forecast, up 27%. look at discounter big lots, profit and revenue falling short. not so rosy forecast, down 9%. look at ulta, series of salons, isn't it, cosmetics is what it is. they're up. up 8:00 percent as wee speak. boeing, they won a big contract to build a navy drone. boeing shares pretty much riding high. do you like it? >> i do like boeing. i think reality of what's happening with drones and artificial intelligence in general, the fact that we have president trump is spending more money on defense will absolutely benefit. >> one thing we might agree on today. >> we built consensus. >> i like boeing. ashley: boeing rides on headlines of trade deal or not. caterpillar, those types of stocks, the trade, proxy for

trade headlines. so it has been a rough ride for boeing but i think, you know the fundamentals are excellent. >> one thing though that stock made new highs before the s&p did and any stock moving ahead of the market which apple did, amazon did, boeing is one of them too, is a good buy. any stock moving ahead of the market es extremely bullish. those are the stocks you want to look for. microsoft too, you want to get in and go long. moving ahead of the market. stuart: do you own boeing by the way? >> no. i'm telling you what i like. stuart: okay. second day. walmart wrapping up its toy inventory. much toys "r" us is gone of course. walmart put toys "r" us out of business in the first place. ashley: they are doubling down. they will put in 30% toys in stores. 40% online. there are 1000 exclusive toys. 300 brand new ones. they are doing massive amount of research, putting a bunch of

kids in the room playing with prototypes. they want to be the toy store. stuart: before we move on, before we close out the opening of the market, jeff zika, tell me a stock you really like, that you would buy todaying a agressive isly. >> i would aggressive buy tj maxx today in line with recovery, i believe, is happening in brick-and-mortar retailers. i would buy tj maxx, as much it i could buy. stuart: they own marshals, don't they? >> marshall's home sense. they have a model everybody thought amazon, i'm a big fan of amazon, would going to annihilate all brick-and-mortar. tj maxx found the magical infreed end which is this treasure hunt. ashley: yes. >> constant, everyday bargains. people are flocking to the stores. lines out the doors. tj maxx is an incredible retailer. stuart: okay. there's fine note to end it on, zika. it is the:40 eastern time.

we have to say good-bye to jeff and melissa. thanks so much for joining us again. i chum you are i will be back and so will you. check out the big board. we're down had 45 points in the early going. look at videogame maker electronic arts took a hit after announcing it is delaying one of its big games. look at that drop. full story coming up. that is a drop 1/2. canada has until the end of this day get on board with a trade deal or face some tariffs. they're in a tough spot. they need us more than we need them. more "varney" after this.

stuart: 13 minutes into the trading session. we're still waiting news on canada. we're down about 40 points.

now look at amazon, $2019 a share. as i keep saying, if it gets to $2050.27, it is worth a trillion dollars. it is heading up again today. let's get back to trade. we're expecting a deal with canada to get done today. we're expecting, waiting the announcement. joining us is curtis ellis, a former trump campaign advisor on trade and on jobs. canada is in a tough spot. they need us more than we need them, right? >> absolutely. their biggest deal is exporting and their biggest market is the united states of america. stuart: so we're playing our strength, in other words? >> absolutely. which is the first thing that president trump realized, the first president in a long time, is that these countries need us more than we need them. we're the largest importer in the world. and they all, their economies are based on exporting to the united states. we hold the high cards. stuart: are we, are you expecting a deal today? >> i am. i'm cautiously optimistic

because the canadians need us and because we've already taken care of the difficult aspects of this deal with mexico. and canada's on board with what we've done with mexico. the canadian auto workers stand to benefit from the new local content rules, and from the 16-dollar an hour requirement. the canadians also can live with the arrangement we made on the investor state dispute settlement mechanism because canada's main industry, one of their big ones is mining. mining is still covered by this investor dispute mechanism that -- stuart: that's a sticking point? >> right. stuart: another one surely is dairy products. they slap a whopping great big tariff on anything we send north of the border. >> dairy is a complicated issue. we export a lot of dairy to canada. we'd like to export more. i believe there are enough moving parts just in the dairy

sector that both sides could say they won. they could increase the quota, increase numeric volume of dairy that comes to canada but not increase it so much it will hurt dairy farmers in quebec as mr. trudeau cares about the que beck. but then we can claim a victory as well. stuart: i want to raise their issue, because at g7 meeting, i'm sure you remember, our viewers remember, there was a real fight between mr. trudeau and president trump. >> yeah. stuart: mr. trump was very angry at mr. trudeau for what he said right after the meeting ended. that is getting in the weeds. bottom line this is a personal beef. do you think the president is taking a hard-line because of the personalities? >> justin trudeau certainly put his negotiators in a tough place by making that ridiculous gaffe that he did. and president trump certainly wants them to believe that he's got it out for them. he keeps them off balance. stuart: it is a tough line.

it is always the tough line. he doesn't retreat in public. may retreat in private. but in public, no, hard-line trump. >> why we love him. stuart: you like this? >> yes. stuart: i didn't realize you're such a trump supporter. >> absolutely. i was on the campaign. i was on the transition team. i was there, for trump before trump was trump. stuart: in the intro, that is the truth. curtis, thanks for joining us. we appreciate it. we're expecting a deal. we'll see. >> all right. stuart: check the dow 30. we come back quite a bit. we're only down 20 points and it is a pretty even split, winners and losers, among the dow 30. now president trump is going to sign an executive order this afternoon. it's, i think it will be very good news for aging baby boomers like myself. ashley: oh. stuart: we'll explain it all in a moment. we'll go to the white house. mercedes schlapp is going to tell me and others how big a deal it is for people like me.

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stuart: this is what happens if you give a rosy forecast about your sales and profits in the future. your stock goes up. lululemon gave a rosy forecast and the thing is up nearly 15%, $20 higher at 157. all right, let's go to the white house. this is a story that i am interested in. mercedes schlapp, white house

communications director joins us now. mercedes, forgive me for droning on but i want to set the stage here. at the moment when you reach 70 1/2 the government makes you take money out of your 401(k) and your ira. when the money comes out it is taxed. if you're still working at the age of 70 1/2, you're going to get taxed to the moon. i mean you will lose most of your pension money. the good news here that i'm trying to work up to, the president wants to extend that, doesn't he? make it not 72 or 75, something like that. am i on the right track? >> yes. what we're looking at right now, what the president is going to sign in north carolina, basically retirement security executive order. this will direct the department of labor and the department of treasury to basically review our regulations that would allow businesses, small businesses, to be able to ban together to come, to be able to insure that they

can afford retirement plans. i have to tell you, when you're looking at the fact too many of american workers, talking about 1/3 of american workers have no access to retirement plans, that just, it is very difficult for some americans, and so this is going to be able to provide them the, what they need to insure that they have that safety net, as they grow into their golden years. stuart: look, i am 70. come january the 1st -- >> no, you're not. you don't look 70. come on. stuart: that's fine, mercedes. flattery is the mother's milk of television but you don't have to use it on me. i am 70, come january the 1st, i will be 70 1/2. i do not want to take money out of my care care and ira. i saved for my entire lifetime. i don't want to take it out. thank you very much indeed, mercedes. thank you very much, president trump. i think you will help me out. not deliberately but i think you

will help me out. >> the good news the department of treasury is going to review these rules to insure that more individuals, more american workers could keep their money longer, from their 401(k) or their ira's. it is very clear, it is a step in the right direction. we know that many americans are concerned of not having enough money as they grow older. this is very similar to, and modeled after the associated health care plans, which as we know again is allowing the small businesses to ban together. always a problem has been not only are we increasing access, but the problem has been the high cost associated with retirement plans. and so this is going to lower costs to small business. so it is really going to provide the small businesses the relief they need because of the fact these retirement plans are so expensive and because of course, small businesses have administrative and overhead costs they have to worry about. stuart: sounds weed did i. very important. >> i'm excited. stuart: i know you're not the

trade person. can you tell us if there is a positive feeling in the white house at the moment about canada coming to some kind of a deal today? >> well you know, i tried to model larry kudlow every day but i don't know if i'm doing good enough job. they're making progress. as we know the united states and canadian negotiating teams have been meeting the past several days. this is part of the negotiation process. obviously we want to continue making headway here on the trade deals. we did this week with mexico, which was a huge success. and at the end of the day, we do want to be able to have more free market access and insure that we're able to push forward free, reciprocal trade. that is the goal of the president, i have to tell you, stuart, you know this, no one thought president trump could get this done. his critics were basically saying it is impossible. how could he get the deals, trade deals, renegotiate them? we know for a fact this is why

this president is successful, not only for pro-economic growth and helping our american workers but also insuring that we have the trade deals to protect our american workers and our farmers and that is what he is pushing forth. we've been success with mexico. we look forward to keep workingg with canned to make progress, make the deal. stuart: you're a pretty good spokesperson on trade. >> i try. stuart: her said, thanks a lot. >> see you soon. stuart: how about this? in-n-out burger, great company. ashley: fabulous. stuart: great food. they're facing a boycott from california democrats because they have the nerve to give money to pro-business groups and republican party. the horror. my take on that coming up next.

...

>> steve: i like my fast food. well, i like it fast, okay? when i want a burger, i don't

need a lot of choice i just want it now. so, on the west coast, i go to in-n-out burger. a well-run chain that does what its name says it does, you're in-n-out fast. that's not good enough for california democrat oh, no in-n-out has committed the sin of giving money to pro-business groups and to the republican party as well, the horror. on wednesday, eric bowman, who heads the california democrat party called for boycott and by thursday the democrats were back -pedaling fast saying the boycott call was just mr. bowman 's personal view, too late. [laughter] the left has again shown its hostility in the business but it's more than just hostility to business, in-n-out put bible versus on its packaging and was founded 70 years ago on christian principles, oh, that's going far too far. you've got to boycott them. this reminds me of chick-fil-a, the fast food chain that also

displays bible versus and also by the way puts out a pretty good product, served with a smile. when they opened their first outlet in new york city, the far left mayor, called for a boycott and imagine that the mayor of a city, rejecting new business. there's been a line out the door ever since his honor told new yorkers not to go near the place the in-n-out and chick-fil-a stories may seem trivial and local, but they show a lot about politics today. they show that the left is intolerant. they have no time for business. in california, new york, profit is a dirty word even though both desperately need the money that business produces and they have absolutely no type for christianity. i ask you honestly, who are the real haters in america today? the second hour of varney & company is about to begin.

>> steve: i'm calming down from my rant because we have some breaking news on the economy. it's all about consumer sentiment. ashley: it came in as a 96.2 what does that mean nothing to anybody but what it does show is it remains i'd say relatively strong to be honest the consumer sentiment has been on a bit of a slide. we hit the my in hard, we're down from june and july but still better than what we expected but bottom line is we know that consumer confidence is at record highs and people are going out and spending there's an economy that relies 70% on consumer spending the economy is still good so the sentiment number is just fine. >> steve: no impact on the market but it reinforces the view the economy is doing just fine here is another story that we're following that is the deadline for trade deal with canada both sides are optimistic , so we may get word of a deal very soon, if we do, you'll be the first to hear it you'll get it right here and that's a promise and some individual stocks in the news,

we're following for you. coke buys the british coffee chain costa, paying about $5 billion for it, and look at starbucks, no reaction to the coke news even though costa could become a global competitor to starbucks and the stock is up to what $0.25. look at amazon is racing towards a trillion dollar market valuation it's close if it gets to 2,050 it'll be worth a trillion up $16 at the moment and a rosey forecast from smith and wesson's parent company american outdoor brands it's a gun company of course look at what happens when you put out a rosey forecast the thing is up 35%. big deal. back to my take on the left boycotting in-n-out burger. here to comment tammy bruce fox news contributor and our market watcher david bronson. i'll start with you tammy did i rant too much or what? >> no at in-n-out you can order animal style you can get a

special sauce that was an animal style opening and look i'm a california and i love the free market and in-n-out is an incredible company. this a microcosm with the problem with the democratic party striking blindly because of ideology, hurting their own base. at in-n-out, the minimum wage in california is $11 an hour they pay their workers $13 an hour. you can work yourself up regardless of your educational background to being a manager at $160,000 a year. that is more than the average lawyer in california, more than the average worker in silicon valley who makes 114,000 a year the average lawyer makes 117,000 glass door says that in-n-out is the fourth best place to work in america, beating out google and microsoft. it is the benefits are extraordinary. the democrat party in that with the leader of the democrat party calling for a boycott strikes at their very own base where they can make enough money to support their own candidates, to live their own lives best it's a

perfect example of why california is going down the drain, why democrats destroy people's lives especially the lives of their own people because they do not think it is an immediate emotional rage, this company will not only survive it will prevail, and it will clearly for workers across the country and certainly in california, it's a place where you can make your own decisions and make a good life for yourself and your family and shame on the democrats and it is why california goes down and why the democrat party will fail in november, because they think of no one but themselves. >> you know i thought i delivered a rant that was pretty good. >> ideal in special sauce myself and animal style myself today. >> let's turn to david bronson who happens to live both in california and new york and i think you know in-n-out burger not as a customer so much but you know the granddaughter of the founder. >> so she's the ceo and has been for some time in her 30s tremendously successful. do you think they could take this company public? have you seen what multiples have done in that smart fast

food you look at some of these great fast food chains hamburger habit has gone public, she won't do it they don't need to do it. they don't want that extra scrutiny for no reason, it's things like this but tammy's point is exactly right. first of all i want to say selfishly i hope they go through with the boycott. the less lines in the drive-thru when i bring my kids saturday afternoon, i'd rather have a little less time there, but it's well worth it. it's the greatest burger at a fast food restaurant in america. >> and you know, when i go to fast food, i want it fast. >> so the problem is it's the only food in california over new york. it's the only one. but all i have to say, this is an insane thing for their own ideology. they say they want higher labor wages, this is a company doing everything you would think they want. >> and they've also given to democrats and it is the only restaurant chain in gloss door's

top 50 of the best places to work the only restaurant chain. >> but the fact they did this after a very small contribution to the republican party they've also given to other democratic groups and so forth and played bipartisan but it's a hostility to the faith and that's what i believe this is coming from. >> stuart: well said, hold on i'll check with you later right now check the big tech names, we're following closely, look at this. facebook is down a fraction, amazons up $16, 2,018 and microsoft is a new high, 112.54 and google is down a bit but apple is the standout at $228 a share; however my good friend david brohnson sitting next to me here finished his california rant, he says, you say these big tech companies have gone as far as they're going to go. sell them? >> no i don't say that about apple so we've put all of the names up there together. look at that one of these names is not like the other. apple is trading at a very

reasonable market multiple, tons of cash on the balance sheet, tons of dividends being returned to shareholders. you know that's what i talk about the ability to shareholder s to monetize their investments not just depend on more and more put it pull expansion. who would have thought amazon was at $16 today and it's .8%. the stock is trading through the roof, and i'm not saying it can't go higher. i'm saying on a risk reward basis, there are better opportunities in the market. big tech is relying on more investors piling into get a higher multiple expansion that's not an investable thesis for me. >> stuart: your whole investment philosophy is dividends. >> dividend growth based on the ability to grow the dividend that they pay to us because the free cash flow of the company is growing so it's not just dividend and not just a high dividend but a growing dividend indicating a growing company. that's what we do. apple is doing it but other names are not. >> stuart: can you give me a couple of stocks where the dividend is growing and where the dividend is safe?

>> i can give you a couple three stocks all in my portfolio >> [laughter] >> the two i'd highlight are blackstone and verizon. verizon is a great example. they're not getting cute and panicking going out trying to buy cable companies and leverag ing up $170 billion of debt. not that i'm making a reference to at&t or anything, but black stone's case again high free cash flow growing the dividend to shareholders. >> stuart: what you're seeing on your screen at the moment washington d.c., senator mccain on his way to the capitol building where will lie in state and you'll be seeing this throughout the day. dignitaries will be assembling, some will speak including vice president pence and that i believe is coming in the 11:00 hour, and you'll be seeing a lot of this throughout the day. there will be more varney after this. i get it all the time.

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>>stuart: all right, we're now up 17 points, we have reversed ourselves and now we're up 18 points above the 26,000 level again. you better look at apple because it keeps on making new highs, and we're at another new high, as of right now i think we're about $228 per share on apple. look at electronic arts, a video game maker, we know that, they dropped big time because they delayed one of the release of one of their big titles. they took a huge drop yesterday. ashley: they're down a bit more today battlefield 5 and you're saying why would you delay the release? analysts are looking saying maybe a smart move because that release were to come at the same time as call of duty: black ops 4 and apparently two very popular video games and so releasing in the middle of those other two games they may have got lost in the shuffle a little bit. they say they delay because they want to make final adjustments.

>> i love those games. >>stuart: the graphics. >> they're incredible. >> look on civilization, that was a remarkable accomplishment. >>stuart: that is so realistic. >> it's remarkable. >>stuart: you're in control of what you think. ashley: oh, yes but eaxe will take a hit but in the long run it may be a smart move. >>stuart: don't delay battlefield v. look at that. okay, so tesla, look at that one , $300 a share or slightly below we're right at 300, our next guest has this to say about elon musk, stop whining. tesla gets a better deal than gm and ford. andrew berry wrote that he's the bear on barron's associate editor and he's with us now. what's this all about? is it about subsidies that tesla gets and ford and gm don't? >> it's not about the treatment

that elon musk and tesla gets from wall street and wall street has been very generous and forgiving and patient with tesla and less so with major auto companies right now. >>stuart: why, why did tesla get a free ride? >> because it's a cold stock and people think that ultimately it's going to earn a lot of money even though it's operating in the red, so and the rest of the industry actually very profitable and is actually the most out of favor industry in the whole world. >>stuart: gm and ford are out of favor, make a lot of money and tesla is in favor makes not a dime and they do get subsidies. what kind, green energy? >> yeah, green energy subsidies which are actually starting to run out but they do get that, yeah. >>stuart: do you think elon musk should get out of the way? >> no, i think that he is the key person there. i think investors want him to stay there. he personifies the company and if he were to leave it would be very negative for the company. >>stuart: with all of the mess he's gotten the company into? >> he's the man, he's the jeff bezos, he's the mark zuckerberg,

i mean, he's everything rolled into one in tesla right now. >>stuart: but he hasn't been very successful in actually putting cars on the road. >> but he's been very successful at getting a $50 billion market value for a company that makes no money. >>stuart: that's true too. let's move on to this. warren buffett told our own liz claman on fox business, he said look, apple should not buy tesla it would be a very poor thing, a very poor move if apple were to buy tesla, so i guess apple's not going to buy tesla. >> apple has never been a major acquisition like that before i doubt they want to get involved in the car manufacture business like that. i think that's something that tim cook does not want to go into. >>stuart: do you think anybody will buy tesla? >> i don't think so. the rest of the industry thinks they can put tesla out of business eventually by making electric cars that do better than tesla, coming within the next couple of years you'll see a wave of electric cars from the rest of the industry which could be a major challenge for tesla. >>stuart: major challenge indeed

give me an end game here, musk is still there, the stocks still at $300 a share, he's under a great deal of pressure, apple is not going to buy them out, not going to give him the money what's the end game? >> i think they have to wait a year or two and see how things come out in terms of the production of the model 3 and how profitable it is is and how they do with their other business including the battery business that's the ultimate determination of how the stock does. >>stuart: you've got a nugget on buffet? ashley: this is interesting warren buffett took a 10% stake all the way back in december 2008 a company that by the way makes is releases luxury electric cars, makes batteries, under byd is the name of the chinese company just throwing it out there. >>stuart: if apple is not going to buy it do you see it on your screen a new high for microsoft $112.70 a share? ashley: yes, your smile gets wider every day. >>stuart: not retired yet.

andrew thank you very much for joining us this morning. >> happy to be here. >>stuart: do you enjoy it? >> yes. >>stuart: we're fast. >> i survived. >>stuart: you don't care if you come back next week. now this, a balloon showing london's mayor in a bikini is going to flow over london this weekend in response to another balloon of president trump, who protesters flew in london last month. question for our guy in london. do they really hate trump? we'll have an answer on that one i think they do. and look at this britain's prime minister dancing at the u.n. campus, quiet on the set. she's been getting a lot of criticism on social media for her dance moves. she is actually dancing about 200-yards away from where i was a teacher at a school for african boys back in the mid- 1960s. ashley: you weren't a dance

teacher. >>stuart: no i taught soccer in america in nairobi. good for you pad am prime minister. we'll be back.

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and give you tax-free cash from the equity in your home... and here's the best part... you still own yohome. call now! take control of your retirement today! stuart: we just keep ongoing up don't they look at this apple is at 227.87, it just touched 228 a moment ago that's a new all-time high microsoft at 112.68 that is another all-time high, and the two together, they're both dow stocks, the two together add about 25 points to the dow's gains. the new york times is reporting that a former nbc producer says nbc tried to block ronan's story on harvey weinstein. tammy this goes all the way to the top doesn't it? >> it does and he just left the

network a couple weeks ago. this is why you're hearing this now there was some sense of this when it first occurred because it didn't make sense. ronan is attached to nbc and they are thinking why isn't this story at nbc that finally got to the new yorker but this individual is saying that they effectively were told from the top when they were going out to california to interview rose mcg owan to not do it, do not do this interview and their argument was well she won't say weinstein, she won't name him and there wasn't enough visuals for the story. it's a strange dynamic you've got a remarkable story usually undercover stories are stories where people have been frighten ed to speak. you are going to have fewer visuals these though effectively were excuses and that it was killed from the top and now, andy lack, the head of nbc news, is under fire. ashley: but repercussions they didn't say it was a strong enough accusation at the time? stuart: or they didn't want to

go there. ashley: yeah, exactly. >> some of those were the arguments and others are suggesting they pandered to mr. weinstein but i think at some point we may find out. stuart: i want your opinion on this one because california has passed that bill, but with the mandate that companies put at least one woman on their boards. now you're a former president of the la chapter, i take it you approve of this? >> also as a free market person and as somebody who likes companies to succeed i think it's a good idea. we know boards that have women that are good performers do better, to have boards that reflect the diversity of your community where 70% of the buying power in california, it's not a bad idea as long as it's the right woman and for the right reasons. ashley: but if you're a free marketer, tammy wouldn't it be the free market based on performance? >> well i don't think the two are mutually exclusive. you could say look it's a good idea to have a woman on your board and you could find a woman , thank you very much, whose a good performer.

stuart: i mean, slippery slope argument where does it stop how about black folks, asian folks, episcopalians, vegans, one on the board, come on. >> i think when you're looking at the nature of 70% of the consumer power an a majority of the population it's not unusual to suggest maybe we should have representation on a board and i think that we can have a good argument. now california does tend to go overboard but in this case i think that companies will do better and there's lots of women who will of course do a very good job on those boards. and you don't also, the other argument is saying that you get rid of a male whose on the board no they're saying you can actually add a seat so it's not like you're going to be refusing someone in a position because of their sex. i think it's a good alternative. even a broken clock is right twice a day. stuart: [laughter] you're covering yourself very well tammy. you were good on in-n-out burger but i'm not so sure about woman on the board. >> you'll find out i'm good there too. stuart: let's get to the florida

governor's race, this race will say a lot about the state of our politics, and we're covering it. we're also waiting for word on a possible trade deal with canada this is deadline day, and we're also looking for any subsequent presidential tweets might happen and we'll bring it all to you as soon as we possibly have it in our little hands. any minute now, senator john mccain, his casket, will be carried into the capitol rotunda , and it will lie in state it is a big day here on varney & company. we have a lot for you. ♪ as moms, we send our kids out into the world, full of hope. and we don't want something like meningitis b

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stuart: you're looking at the he

arse carrying the casket of the late senator john mccain down constitutional avenue in washington d.c. on the way to lie in state at the rotunda on capitol hill. you'll be hearing and seeing a lot of dignitaries arriving and that will be a feature throughout our program. connell mcshane is there setting the scene for us. connell? connell: i tell you it's really about the american people and their chance today to see senator mccain's body as it lies in state of the capitol rotunda becoming the 30th person to do so that hearse you spoke of just coming into our view within the next minute or two in front of the east front steps of the capitol where i'm standing and then once the family, as widow cindy mccain and the rest of the family gets out of the vehicles they will be taken up those steps and then about 10-15 minutes from now the way its been scripted to us and what we expect to happen it will be carried up the steps behind me and the family will be there to greet the body and then it will be taken inside. at about 11:00 eastern time so basically a half an hour from

now the ceremony that will take place in the capitol rotunda will get underway and there are some speakers that will be speaking there the senate majority leader mitch mcconnell and paul ryan and also the vice president of the united states i believe arrived just moments ago mike pence and as i look over my left shoulder but i'm sure you're able to get a better camera shot than i we can see that hearse slowly pulling into the famous capitol steps behind me and once it does come to a stop that stuart as i said is when the family gets out and we'll see senator mccain's children and then just after that, the hearse will be carried up those steps and the family meet it there before they go into the capitol dome and to the rotunda where the senator will lie in state. stuart? stuart: connell it's a very sole mn occasion obviously and carried out with great precision you mentioned a timetable it will indeed be a very strictly- kept timetable i notice

they're almost on time almost to the second at this moment right? connell: they were. we were looking at our watches when the vice president's motorcade was supposed to arrive at maybe 10:26 when it pulled up behind me, senator mccain and the family here that are arriving with the hearse behind me was a 10:30 eastern time arrival and that's exactly the time it has pulled up behind us and now the full military salute from the officer standing in front of it and then the body will be removed and the hearse is the only car in front of the east front steps of the capitol. everybody else cleared out the motorcycles guiding it have pulled in front of it and are stationed in front, so just the one gentleman who was driving the hearse has gotten out and there's really nobody around. if i look out to the right side which is the left front steps of the capitol you can see the military honor guard from the different sections of our military standing there and awaiting the body to be taken out. the other cars that were in the

motorcade have pulled around the driveway to the other side and now they are being greeted there but it doesn't look if anybody has gotten out of the car. stuart: connell yes we are waiting for that to happen our viewers are seeing hearse and the casket of senator mccain and it has pulled to the stop in front of the capitol hill steps there we are waiting for the hea rse to be taken out and moved up the steps and i should add there's a very strict protocol as to how you handle this kind of ceremony. ashley: absolutely every precision down to the second but also down to every movement. stuart: now we're seeing some of the family members coming out of their cars, as they've arrived there. we've not yet seen the casket removed from the hearse taken up to the rotunda building. we're going to see that any moment now that is an honor guard of the military and they will be handling that casket with great care, calm and

precision. ashley: yes. stuart: mike baker is with us this morning mike, you're a former i'm going to call you a military guy i know you're in the cia but i'll call that a military guy and right inside this is a very strict protocol arrangement for taking the casket out and moving it up the steps and for the lying in state it's a very strict protocol regimen is it not? >> no, it is. look the military, law enforcement, capitol police unfortunately, it's obviously a sad occasion but they do this sort of thing extremely well. i've had family buried at arlington national cemetery and despite how sad or grief- stricken the occasion may be you still spend some time amazed at the precision of the individuals that are assisting and doing this sort of thing, so yeah, it's obviously thoughts and prayers going out to the

mccain family and it's a sad day senators and congressmen come and go with some reg you lauer it. you rarely get somebody with this background, this history, so it deserves to be noted. stuart: well yes, indeed. the man was a national hero. he was in prison in north vietnam for five and a half years, tortured on a regular basis, comes out of it, comes back to america, runs for congress, becomes a senator, what an extraordinary career for a great man and by the way he is only the 30th person to lie in state in the rotunda building and our long nation's history, nation's long history i should say, only the 30th person. >> it's surprising you hear that number and you think of all of the great leaders and folks that we've had over the years, it's a surprisingly low number, but look, senator mccain had

that ability to reach across the aisle, and we don't see that much very often, and we're see ing it now and the praise and the remembrances that we're getting from both sides of the aisle and some people all all across the political spectrum and it's because senator mccain, he charted his own course often. sometimes that irritated people, but he stuck to it and we need more of that frankly. i don't know that's going to happen. stuart: but in the senate, he was a vigorous supporter and defender of the military. that's what he did. i think that's where he made his mark more than almost anything else. >> he was a patriot and you can't really, i know that's not particularly eloquent but there's no better word to describe senator mccain. that's what it came down to. love of country, love of what america means, and the

sacrifices that people over the generations have given to preserve the freedoms. he felt that to his core and he demonstrated it every day. stuart: yes. hold on a second, mike i'm going to move away from this, our viewers will still be able to see what's happening in the nations capitol. you'll see that but i want to tend to some other business. first of all, money. we're now up 11 points for the dow industrial just shy of the 26,000 level, it's sort of a go nowhere market. ashley: it's a wait and see market. stuart: that's a much better expression. it's a wait and see market as we're waiting to see if we will get some kind of trade deal with canada today which is of course deadline day, so that's hanging over the market, marginally higher at this point. president trump went after the democrats at a rally in indiana last night big time. watch this. president trump: we need republicans in congress. >> [applause]

president trump: today's democrat party is held hostage by left wing haters, angry mobs, deep state radicals, establishment chronies, and their fake news allies. stuart: that was the president in indiana last night, and i believe tonight he goes on to charlotte, north korea. now i'm going to show you a bell weather race in florida the governor's race a new poll shows democrats andrew gillam, now he is a socialistic that leads republican ron desantis that's in the race for governor that's extraordinary stuff. lawrence jones is with us, editor in chief, are you buying that? are you buying that a socialistic holds a lead over a trump guy in the race for governor of florida? >> well, i'll say this, stuart. i've been telling a lot of people this on the ground, that you should not underestimate the socialistic agenda. yes, it's wrong.

yes we don't like it, but again, i remember a time where republicans laugh at a junior senator named barack obama and he ended up being the president of the united states. we think facts and figures aren't right, libertarians, conservative, republicans think about the fact that it just doesn't sound real when you look at the numbers but when you have people that are voting with their hearts and not their minds , the way that they're packaging socialism today is a little bit different than they did before, and so i think that it's something that we should take very seriously. look at the state of texas, my home state, where beto is neck and neck with ted cruz. do i think he's going to win? no but i think he has a shot and something we should take very seriously. stuart: i take your point entirely and i think sometimes because i come from england in the 1970s and it's a socialistic background i tend to dismiss

socialism in terms of today but you know lawrence you are right. if you ask a young person someone in their 20s do you want free college, do you want free healthcare, do you want stuff given to you, the answer is frequently "yes i do" and i understand that appeal. >> yeah, stuart and you know you had me on every week to talk about what's happening on the college campuses we've been reporting at the campuses a lot about socialism they've having all these clubs and expansion on college campuses and we also now reported now they're advocating for more teachers to teach this socialistic agenda so it's on the rise and something we should take very seriously and what the response should be is how is the right going to change their message the way that they deliver the message. not the message itself, that where we destroy the narrative and we show these young people from a historical standpoint where socialism has failed. stuart: well said lawrence jones

thanks so much for joining us. i want to take our viewers back to capitol hill. connell mcshane is there. connell am i right to say the mccain family has arrived already? connell: they're standing at the tops on the top of the east front of the capitol waiting to greet the cheryl: pet of senator mccain which moments from now is going to be removed from the hea rse, that had been pulled up last time we spoke stuart seconds before you came to me the honor guard from our military made the slow walk up to the hearse, and just started a light rain that begun maybe 10 -15 minutes ago has picked up in intensity here on a humid washington day. we can see cindy mccain the senators widow standing at the top of the steps flanked by her sons jack and jimmy who have been by her side in arizona last night at joint base andrews and here today at the capitol and we see his daughters, he and mrs. mccain's daughters megan and bridgette, just to the side of one of the pillars his children from his first marriage

, doug, and cindy on hand as well today and what's also notable about this the hear se is being removed right now senator mccain's 106 year old mother roberta is also on hand even though she's not seen in this particular camera shot. stuart: well, connell our viewer s are seeing casket now being removed from the hearse, and taken with great ceremony about to move up the steps of the capitol building, to be received by the mccain family, and then placed in the rotunda where dignitaries have been assembled. some will speak, all will pay their respects, as the rain begins to come down there. the armed forces represented is there, from all of the branches of the services. they are moving up the steps as we speak or about to at least, and that's what's happening right now in our nations capitol as i said earlier, john mccain is only the 30th person to lie

in state in the rotunda building and the long history of this country, only 30, or 29 other times has this happened. i think that's a testament to the stature of john mccain. ashley: absolutely. stuart: and what he occupy, governor huckabee is with us. governor? this is a state of great ceremony as we speak. ashley: would you describe it for us, please? >> well, i think what you've said, stu, is so very accurate in that john mccain deserves this kind of hero sendoff. he didn't just serve in the senate. he did that for 30 years. he was a congressman, he was a sitting senator at the time of his death. all of those things are very significant, but this is a person who was a naval i've crate or, shot down, prisoner of war, tortured for this country, faithful to the last breath, he embodies and really exemplifies everything that we honor, everything we hold dear in this

country in terms of a person who is heroic and who sacrificed and served so for him to get this kind of ceremony is absolutely appropriate. i think it's the way that we should honor those who have given above and beyond, and i'm grateful to be able to see this country pay their respects to an extraordinary human being. stuart: i don't know whether you ever met him, governor, but i know that he was a jovial man, that he had a sense of humor, and he didn't take politics with a grain of salt necessarily but he saw the humorous side of some of the battles that go on on capitol hill. did you ever meet him, governor? >> well, you know, stu, you probably are seeing me smile. did i ever meet him? i was one of his opponents in 2008 in the presidential campaign. i shared the debate stage many many hours with him, and when he

defeated me, which was not the most pleasant moment of my life and by the way thanks for reminding me of that, then i spent the rest of the campaign on the trail with him and on many occasions traveled with him and his campaign team, and then sometimes traveled independently campaigning for him, right up until the day of the voting in november of 2008 so i've been around him quite a bit, spent a lot of time both on the public stage as well as sometimes in the private moments, and i found him to be a man of a great sense of humor. he was also a man who could be c ontankerous, a contrarian, all those things said about him are very true but it did not in any way taint the extraordinary human being that he was, and a person who loves this country, as much as anybody i've ever known has loved this country. that evidence for the fact that when he could have gotten out early due to his family connections in the navy, he told

his north vietnamese captors, no i'm going to stay here just like everybody else and that says a lot about the character of a human being. stuart: our viewers are watching inside the rotunda where the casket is about to be laid. we're seeing a procession of dignitaries. we're just seeing general kelly chief of staff to the president, we've just seen senator lindsay graham, a great friend of senator mccain, rod rosenstein, we have jeff sessions. anybody who is anybody in politics in the capitol hill today, they are there. subsequently, some, whether it's nancy pelosi i see? ashley: yes. stuart: subsequently there will be some speeches, including vice president mike pence but all other to pay their respects to a great man and mcsally is there. nancy pelosi is there. i'm trying to identify all of

these people, their faces are well known to anybody who follows politics in america. chuck schumer of course, orrin hatch, and in comes some of the family members who will be at the front there observing the proceedings as they go forward. again, this is only the 30th time that this has happened in our nations history. i think that says a lot about mccain. ashley: it does. we saw yesterday and people speaking about the senator in arizona they did talk about his sense of humor. i met with him many times and spoke with him. i worked in arizona as a young reporter and he gave me the same respect as he would any hot shot reporter from anywhere but he always had a good joke and i always loved i got to meet his wife cindy as well and interview ed her of course we had megan mccain on this show so you felt like you knew the mccain family and they did appreciate a good humor was a part of his makeup. he was a maverick and he loved

that title. stuart: on a personal note i would really like to see john mccain's mother. ashley: yes. stuart: she's 106-years-old. i believe she's there, i think she's there and that is a remarkable thing to be 106-years -old, and to have gone through life like this, heaven knows what she was thinking when john mccain was in north vietnam ashley: i can't imagine. stuart: shot down. tortured heaven knows what was going through her mind at that time. she got through it. ashley: for more than five years stuart: saw him go into the senate. saw him perform for our nation in the senate and now, she's saying goodbye to her son. this is a moment for a woman of 106. ashley: remarkable. stuart: moments from now the casket will be brought into the room and laid on the center there, and the dignitaries will pay their respects. let you just look around for a moment at that scene.

stuart: any comment, governor heck a pea? >> one thing that i note is that while it's a very public ceremony, and the whole world is watching, it's also still a very private moment for the mccain family and my heart goes out to them for having to live their grief in front of millions of eyeballs who are watching it, and they understand that they've been through a very public life, but truly, i pray for them to be able to have some peace and comfort and i hope that all of the attention does not make it impossible for them to have that very private time where they can

say goodbye for cindy, a husband and for megan and the other children, a father, and for roberta, whose a wonderful woman , for a son. they deserved also that moment to have their dignity preserved as well. stuart: governor forgive me for raising this issue but the president of the united states is not there. what do you make of that? >> well, i think there's no dispute that these two, while they had a lot of policy agreements, there were a lot of personal disagreements. i think the mccain family, probably made it clear, that it would be best to not have him at part of the ceremonies. he respects that. at the same time, i think people forget that he ordered the military and every asset of the government to be available to assist the mccain family, to bring them back to washington on an air force plane, to make every arrangement that they needed, so this is not a president who though he's been accused of it, has been tone

deaf to the extraordinary achievements of john mccain and the sensitivities of his family. there are a lot of people that maybe for whatever reasons were not invited to attend the ceremonies and services, and that's a family decision. funerals and weddings are very private personal things and families have a right to say this is who would bring comfort in us being there. this is who might provide a distraction. i think quite frankly the president's appearance would be a distraction that they wouldn't want and the president wouldn't want. stuart: just moments ago, vice president mike pence and his wife walked into the room and walked over to roberta mccain, the 106-year-old mother of the late senator. she is 106 and has lived through some extraordinary times and the vice president pence touched on the arm, paid his respects and went to stand, awaiting the

casket and its arrival in the center of that building. as you can see, mitch mcconnell is there with his wife. the dignitaries are from every branch of government and they are all there, waiting for the arrival, paul ryan is there, speaker of the house. they're there. senators, congressman, they're all there and here comes the casket itself, with the american flag over it and there are representatives of all branches of the service carrying the coffin into that stand in the center of the room. it's not a tense moment, it is extremely solemn moment, a time in our nations history and you're observing it. we'll watch as the cheryl: pet is placed in the center of the room.

stuart: senator john mccain is now the 30th person to lie in state in the rotunda building. mike baker, you're a military guy, and so was john mccain. i have to say that the precision and the style of the military is on full display and i think it's a superb moment of how they've handled this ceremony. mike? >> yeah, it is. again i think anyone whose witnessed something like this or has been part of it is struck by the solemn nature of it and the precision the dedication and focus of the people that provide the support it really is whether it's the old guard in arlington

or anywhere else, it's a moving part of the ceremony and again, going back to what you'd said it is remarkable. you think about senator mccain and his experiences and everything that he packed into his life and then he's only the 30th person in the history of the united states to lie in state there. i think the one prior to senator mccain i believe was another senator, from hawaii, who was medal of honor recipient. it doesn't happen very often, presidents and former presidents , but other than that, nobody is automatically granted lying in state. it really is held for those in the highest regard. >> serve as inspirations for all americans to be their best in service to god, country and neighbor. this day, we honor a true

american hero, senator john mccain. stuart: the service has started. i'm not sure i don't know how to describe that that it is the invocation it has begun and john mccain is lying in state and will lie in state this day, and the assembled dignitaries will be making speeches and they will be paying their respects. vice president pence will be, he is already there, along with his wife, he will be making a speech , mitch mcconnell will be making a speech and so too will paul ryan, they will be making speeches a little later coming up in the 11:00 hour and that's where we stand as of this moment last word, mike huckabee a? >> as i just reflect one this i'm thinking the most important speech today is the speech that won't be by words. it'll be the speech that john mccain himself gives, by the testimony of his life. it's louder than anything that could be said by any of the

people who will line up to speak about him, what his life says, is really an american story that all of us can lift up with great pride, admiration, and gratitude stuart: connell mcshane at the arrival of the casket, i believe you're still outside the building, connell? what's happening? connell: well stuart i've got to tell you it was almost eerie, when the cheryl: pet arrived because just as it arrived a light rain turned into an absolute downpour, but just as the casket went inside and now the ceremony is set to begin the rain now has all but stopped so it was a kind of experiencing that in real time but as you twice have been going through, just remarkable the pageantry being afforded to senator mccain, really almost something we would see when presidents have died in the past and there are, i have to say as i look past the

camera, as i look pat it out on to the street i can see people lined up by the u.s. capitol visitors entrance. i would say by the thousands. i can't get a clear shot of them. we expect tens of thousand of people to file in the capitol, when the ceremony ends, 1:00 this afternoon, people of our country get a chance to pay their own respects to senator mccain. in numbers we don't know how many people turn out today. it is hot, muggy, we expect more thunderstorms this afternoon. in the past when presidents decides president ford, 50,000 people paid their respects. when president reagan died in 2004, his body was lying in state in capitol, more than 100,000 people came to pay their respects. there are a lot of people here already and we expect more people to line up today. that is what today is about. stuart: connell mcshane, is there. we showed you arrival at the casket of rotunda building. we've shown you the lying in

state. we have shown you assembled dig nair at thises. dignitaries. some of the dignitaries will make speeches. mike pence will make his speech in the 11:00 hour. when he makes his speech, we'll bring it live here. we'll take you from the particular ceremony, bring you back to the world of money. you see a market in limbo. waiting news on trade. this is deadline day for canada. the president says if they make a deal today, that's good. if not, here come tariffs. the tariffs are likely. go nowhere for the market. three, four points higher. that is where it is. i will start with trade, canada's foreign minister here for the talks. come in chad pergram, fox business senior capitol hill producer. chad, you have new info on the trade deal. go. >> i am told they don't file here on capitol hill that they

have to get the letter today. the deadline is 1st of september, so they can do it by december. i'm told this could come over the weekend? if they get a good agreement from the canadians they will bring them in later. is this about substance or process? if members don't like what they have done, with canada in or canada out they may bulk on the process if the letter comes in next week. if you miss the deadline, that is a problem with us. if they like what happens with canada, keep it in mind they have to get a vote framework down here, you don't do it at the white house. you might have lawmakers saying that's fine. we like the deal. if they don't like canada being out of it, we'll balancing on that because you didn't meet the deadline. that is the key thing to watch the next couple days. stuart: back to your news at the top of the hour, both sides say you don't necessarily have to have today as the deadline. you don't have to have that

letter of agreement today. you could miss the deadline. is that correct? >> that's right. and that's why, you know, what the substance is, if people like it, they will give them fudge room on that. they don't even have something yet on mexico. that is what was agreed to earlier this week at the white house, let alone conditioned today. when i talked to some experts on capitol hill. there was no way they thought they could get an agreement in four days with the canadians. stuart: however, what we've seen so far be looks like it will be attractive to both sides of the political aisle, am i right? just with the mexico deal. >> absolutely. mitch mcconnell, the senate majority leader when i asked him about this, there was a sigh of relief, thinking about some of the farmers, people concerned about tariffs, when it comes to textiles in the south. they really like that. because they said all right, maybe they get relief in the tariff quarter. at the end of the day the devil is always in the details. that is what chuck schumer, the minority leader pointing to. there are a lot of democrats don't like nafta.

they talk about income equality. you get income equality through trade deals. some democrats they want to see what the trade pacts would look like. it is always so hard to move the trade deals through congress. think about what the obama administration went through with the trans-pacific partnership. it was never agreed to. they struggled just to approve the framework. cafta, the central american free-trade agreement pass the house 217-215. you flip one vote, the thing fails. these things are always on a razor's edge. stuart, guess what, no way they consider this late this congress. we don't know what the makeup of the congress will be after the midterm elections this is project for next year. the disposition on capitol hill could be much different regardless. stuart: chad pergram, right in the middle of it as usual. thank you very much, chad. ash, what have you got. ashley: 90-day deadline is with mexico, nothing to do with mexico. they're trying to do this before the left-wing president obrador

comes in. canada not so much, you can maybe fudge with the deadline on canada. stuart: that deadline appears to have been fudged. the market doesn't mind. we moved up a few points. i will not make a direct comparison here. ashley: they're still talking. stuart: they're still talking. maybe they don't, the canadians don't have to have the letter of agreement today. ashley: right. stuart: that is mildly positive i guess. the dow is now up 21 points. still on trade, jonathan hoenig with us, capitalist pig hedge fund manager and fox news contributor too. jonathan, you are not a big fan of trump's trade policies, are you? >> we're sitting around, look at the market, stuart, twiddling our thumbs to figure out if we have permission to trade to buy maple syrup, what price, what tax, what redistributive wages. the whole point of america is laissez-faire capitalism. that means hands off. what worries me, has certainly worried the market is the

prospect for more tariffs. the president loves tariffs. keep in mind those are taxes against americans. any resolution to this trade dispute would be a benefit at least you know for the midterms would be off. stuart: hold on a second, jonathan. what the president said would like more trade less tariffs. he really welcomed the idea that we would get rid of tariffs on all kinds of industries and just trade freely. that is what he wants. >> stuart, you follow these negotiations quite closely, is that what the president is advocating for with mexico, with canada? is he calling for in these negotiations for abolishing of all the taxes? no, even look at mexico. he is setting wages. people have to make $16 an hour wages or aluminum has to be sourced from this country or that country. you keeps say he advocates free markets but he is not advocating a second. stuart: hold on, jonathan. chrystia freeland coming out to

approach the microphones. do we have news? let's listen in please. >> good morning. both the canadian and the u.s. team have been working hard this morning. as we have been for more than a year now on this very important negotiation. we are not there yet. as has been the case from the very beginning canada is a country that is good at finding win-win compromises. having said that in trade negotiations, in this negotiation we always stand up for the national interests and that is what we're going to continue to do. we're looking for a good deal, not just any deal and we will only agree to a deal that is a good deal for canada. we're not there yet. [speaking french] stuart: okay. this is an important

announcement just coming from canada's foreign minister, christie yaw freeland. she said both sides are working hard but we're not there yet. she said she wants a good deal, not just any deal. as she was saying that, the market retreated, up 20, now down a point and moving lower. jonathan, this market want as deal on trade. at the moment we don't have it. am i right in saying that is why the market is down? >> certainly. and we're waiting for those answers. and the irony here is, stuart, that a lot of what was agreed to with mexico was already part of the nafta deal that the president had previously struck down. what we might end up seeing here, similar to what we had with nafta. it is hard as an investor buy companies that are directly affected by trade. we all are with canada, not knowing exactly what the rules are going to be. forget 10 years down the line. we're talking about six months,

six weeks or less. stuart: i will listen in for some questions. [speaking french] stuart: ladies and gentlemen, if you've been following the program last couple days, every time i go to canada's foreign minister for a statement she starts speaking in english, then immediately goes to french which i do not understand. now she is answering a question from a french journalist. i don't know what the question is or was or what her answer is all about. i think she will translate into english at some point in the very near future. i think she will repeat what she said in english earlier, which is we've both been working hard at this, both sides. we haven't got a deal yet. we have not there yet. we are looking for a good deal. we're representing our country's interests. we want a good deal, not just any deal. back to english. >> i think it has been an important foundation for the hard work both of our teams have been doing this week.

that we're not going to be negotiating specific issues in public. i want to underscore, this is a negotiation that has been going on for more than a year. it is starting position of both side were quite far apart at the beginning. we have over the course of that year been working very hard. there have been moments of drama throughout. so a lot of you have reported those moments. we are committed to speaking for canada, to a deal which is a good deal for canada, not just any deal. we are very good as canadians, at finding win-win compromises. at the end of the day though we are only going to sign a deal that's good for canada. [shouting questions] >> are the americans negotiating in good faith? do you think they're negotiating in good faith?

>> ambassador lighthizer and his team throughout this negotiation have been working really, really hard. as i said, our starting positions at the beginning were very far apart. i think at this point we know what each side needs and we're working hard to find a way -- my job is to find the deal that works for canada and i'm working very hard to do that. i know that ambassador lighthizer has a very good understanding of the canadian position. bob and i joke sometimes we could switch chairs. we know each other's positions so well. and we're working hard to find that win-win, that win-win space. i think that, as we have said from the beginning we know that canada and the united states are partners to our extremely

important for each other. we have the largest unmilitarized border in the world, larger than china, japan and the uk combined. we do more than $2 billion worth of business every day. of course this is an important relationship for both sides. i know that both sides understand that. and our job now, as the canadians in the room is to work really really hard to find those win-win out comes and at the end of the day always to stand very clearly for the national interests and for canadian values. we will be back later today. we can talk then. >> what time? stuart: okay. the foreign minister there has turned away from the microphones. this particular part of her day, responding to reporters questions is now over. but she had something interesting to say.

one of the reporters asked her, are they, i believe that's the americans, are they negotiating in good faith? that expression was used. ms. freeland -- ashley: she did not answer it. stuart: she did not answer. she said we're working, very, very hard. our job, the canadians job is to work very, very hard to get to a win-win situation. we're not there yet. ashley: she said look, the u.s. knows our position, we know their position, so much so we could swap sides. that is the joke. is there any compromise in there? we'll not discuss any specific issues in public. all she comes out and says we're working hard, we're protecting canadians. stuart: issue they don't want to discuss was the tariffs which canada lays on american dairy products which go north of the border. >> correct. stuart: it is 300%. ashley: yes. stuart: that is a sticking point. they're unwilling to discuss that publicly. ashley: exactly. stuart: as we've been speaking, as ms. freeland was speaking, the dow went from a 20 point

gain, to a 10, 11-point loss. i think that is because of what is happening in these trade talks. a little disappointment there. most people wanted to see or expected to see the two sides come out and exchange, say yes, we have some kind of a deal going here. that did not happen at this point of the by the way, vice president pence is now speaking speaking on capitol hill at the service honoring john mccain. we were going to bring you that. however he is almost over with his remarks. and we stayed with canada's foreign minister instead. that has in fact moved the market. that is what we're all b. jonathan hoenig, i want to go back to you. do you have any comment now, because we have not got an agreement with canada at this point? >> i think the minister's comment about the longest demilitarized border and two billion dollars worth of trade a day. she said a few times canada is working towards mutually

beneficial agreements. stuart, that is what trade is. it is in their best interest. it is always a win-win relationship. i think the sooner we get to some type of conclusion with these agreements the sooner you will be able to see investors whether they're big or small make some plans what's going to be the trading mechanism moving forward. stuart: i think i got more information coming through on the trade issue from blake burman who is now at the white house. blake, what do you have? reporter: one of the more interesting parts there from what we heard from chrystia freeland, from canadian side or united states side was operating in good faith. she didn't answer the question. there is warm and fuzzy feelings between united states and canada last couple days, but that appears to be dialed back at least a little bit. we potentially starting to get an indication as to why. remember yesterday at the white house president trump did an interview with our colleagues

at "bloomberg news." much of it focused on trade and specifically to canada. well, somehow "the toronto star" got ahold of some off the record comments made during that interview, generally the way these things go, you have an on the record portion with the subject, in this case the president, and sometimes that subject will talk to you off the record. it doesn't get printed. not supposed to see the light of day, not supposed to get outside of a very tight 19 circle. according to "the toronto star," they got a hold of some of those off the record comments, according to this report that made its way back to the canadians, that at least according to "the toronto star," might be giving canada some second-guessing as to whether or not the president and the administration is operating in good faith. just potentially one piece to the puzzle here, stuart, as we barely toward this deadline, but very clearly, and what you just heard from chrystia freeland,

talking to folks here at the white house, i did earlier this morning separate from this other issue i just brought up, the general feeling all those warm and fuzzy feelings from earlier this week are starting to get dialed back a little bit, stuart. stuart: i have to ask you, blake, has this anything to do with the dispute and the anger displayed by president trump after the g7 meeting a couple of months ago where our president was indeed upset with canada's prime minister trudeau? seemed like he was almost personal. is that what "the toronto star" article is talking about? >> no. it is about the interview here yesterday inside the oval office with bloomberg. there was that interview with bloomberg yesterday. there was some off the record comments. the toronto star has somehow, says it gotten ahold of it, the canadian side gotten ahold of the comments as well, according to one article, at least that could be giving the canadians pause as whether the u.s. is operating in good faith. we saw chrystia freeland

essentially not answer the question when the u.s. was operating in good faith. stuart: you're right. it was poignant question and it was not answered. that is very interesting point. blake, we'll get back to you shortly i'm sure. william goldstein, brookings institute senior fellow. william, what do you make of this? hard to say. everything seems to be up in the air. they're negotiating all over the place. what do you make of this? >> well, they're negotiating against a deadline, but they haven't reached the deadline and there's an effort on both sides in end stages of a difficult negotiation to maximize its own advantages. i am not at all surprised that chrystia freeland did not come out and announce an agreement. i would expect an agreement much later today if it's reached at all. stuart: do you approve of president trump playing hardball in these trade negotiations, whether it is with the europeans, with mexico, with china or canada? because that is the president's

position, hard ball, he sticks to it. >> there is no question about that and from my standpoint, the real issue is the goal towards which the president and his team are negotiating. if that goal is good for the world trading system, and certainly the multilateral relationships that are so important to the united states, here in north america, then the tactics i think will recede into the dust-bin of history but if it turns out that the president and his team are negotiating toward goals that would accurately be described as protectionist, then i think a lot of people including people in mr. trump's own party who have given him a lot of running room will be extremely disappointed. stuart: do you think that the president, our president, actually wants more trade or does he want to appeal to his base which is vigorously

anti-china and probably, pretty much anti-nafta as well? >> i don't think he wants to be forced to choose between those two objectives because the republican coalition includes not only the people who put him over the top in 2016, but also the traditional base of the republican party, which is very much protrade. i might add, pro-immigration as well. and he understands that it took the support of across that coalition to get him even to 46% of the vote in 2016. he doesn't want to have to choose between them. very much hopes that there will be not just one agreement, but a series of agreements that he can take back to his base in the midwest of the country, former manufacturing heartland of the country, see, i did what i said i was going to do, but also show the business community that he didn't sell them out. stuart: in other words you

expect him to come up with some kind of a deal, even if in private the president has to give a little? you think that it is a good idea for him politically to get a deal of some sort? >> i absolutely think that it would be in the president's best interests to get a deal because if he doesn't get a deal then he can't go back to his manufacturing base and say what a good deal i have gotten for you. he will have gotten no deal. it is not clear to me that a trade war will be good for any piece of the republican coalition. stuart: got it. thanks for joining us, sir. we appreciate it. thank you very much. we continue to follow two big stories out of washington today. senator mccain lies in state in the capitol rotunda. the ceremony is wrapping up. and trade, today is the deadline for the deal with canada. they're still talking. we're on it of course and it is all happening this hour. ♪

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saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. stuart: a half hour ago the dow jones industrial average was up i think about 20, 25 points. ashley: yep. stuart: then chrystia freeland came out of the trade talks with

america's representative, mr. lighthizer, she addressed the microphone. most of us were expecting some kind of progress to have been made. not so. she was asked, has any progress been made? she replied, not yet. we're still working very hard. that was the expression. ashley: we're not there yet. stuart: we're not there yet. she said she represents canada's interests. they want a good deal, not just any old deal. they would not discuss individual issues in public and those issues would be resolution of disputes and the dairy tariffs which canada imposes on our dairy products. they will not discuss that in public. i don't know why she comes out so often? ashley: she comes out and says the same thing, nothing. we're working hard protecting canadians interests. we get that we're miles apart when we began this process a year ago, she said. we're working hard. she said, there have been

moments of drama throughout. making the thing blake burman was talking about, off-the-cuff remark made by the president in interview with bloomberg. could be latest example of drama, the question of good faith which she never answered anyway. it is frustrating, we get hourly update that tells us nothing has changed. stuart: william gholston economist from brookings institution, told us moments ago he would not be a signal of a deal has been made by the end of the day. that kind of put a floor for the market, at least moment. we had been up about 20. that was about a half hour ago. so trade at least is the still the dominant story this hour where money is concerned. we're down 34 points. we'll be back in a moment. ♪

stuart: almost 11:30 eastern time, two stories that we're watching. today is the deadline for a trade agreement with canada. we're following that. in washington, senator john mccain is now lying in state. colleagues are paying their last respects to the late senator. connell mcshane is there. vice president pence just spoke. we missed it. what did he say? reporter: he had some personal remembrances, stuart, of senator mccain from his own time, mike pence in the congress and times they spent traveling overseas. he was the third speaker in what was a solemn and respectful ceremony at capitol rotunda, the period of lying in state for senator mccain begins. senator mitch mcconnell started that off, senate majority leader, followed by speaker paul ryan said he thinks about in a future time visiting senator mccain's grave in annapolis, maryland, and thinking about what he would say with his children or grandchildren that are with him. he paused. he will tell them this is one of

the bravest people this nation ever produced. those remarks were followed by the vice president. here is part of what mike pence had to say. >> in the long history of our nation only 30 americans have lain in state in the united states capitol rotunda. today as a reflection of esteem which his colleagues and our country hold him, senator john mccain joins those ranks. reporter: those were part of the remarks. at other moments, stuart, they turned more personal. we heard this from other members of congress served with senator mccain. when vice president was member of congress he told a story about traveling over to iraq. it was a long day, they had gone through something like 18-hour day. pointed out senator mccain was more than 20 years older than him, the vice president had been falling asleep literally as he told it with a group of iraqi officials. after the meeting was over,

senator mccain tapped on his shoulder, said you know what mike, you need to turn in a little bit early today. that got a few chuckles from the family members gathered there. speaking of family members, as we were watching many of them, beginning with the senator's widow, you -- kennedy mccain paid respect to the casket, the senator's 10 of-year-old mother, roberta mccain was wheeled up. a remarkable scene here in washington. as soon as current and former members of congress and other dignity terries paid their respects the capitol rotunda will be opened up. people by the thousands who lined up here on hot, humid, at times, storm any day will have a chance to file in, pay their final respects to their hero senator, john mccain. stuart: connell, thank you. good stuff. check the big board. we're down 36 points. we're down because of some confusion over trade. we're still talking with canada.

no deal yet even though today is supposed to be a deadline. the market heading ever so fractionally south. douglas holtz-eakin with us. douglas, i try to get it right, i promise you. >> good morning, stuart. stuart: good morning, sir. you don't like the trade business, do you? you don't like tariffs? you don't want to upset nafta, you're happy with the way things are, aren't you? >> i think nafta could be improved and there are improvements on the table. there is no question, but i'm not happy about the expansion of tariff and non-tariff barriers to trade. the administration's stated position, we'll use tariffs as strategic tool to get to better trade deals which have fewer barriers to trade. the deal they announced with mexico has higher non-tariff barriers to trade. it has minimum wages, domestic content, steel and aluminum rules, and did not get rid of the steel and aluminum tariffs. that doesn't seem to be the outcome they promised. stuart: we wanted to go, i think

the president wanted to go towards much more free trade, much more trade. absence of tariffs on all sides but, we're not going to get there, by the looks of it, we're not going to get there. so are you saying that when we wrap all of this stuff up, it will actually be a negative for america, our economy, and our consumers? >> i think it is at the moment a negative. what it is is a deal for higher auto prices. that is not good for us. it doesn't really do anything for the business community in terms of the dispute settlement issues and i think we could have done better. the good news, stuart, it's not over by any means. and i at least don't think today really is the deadline for a deal. today is the deadline for a deal the outgoing president of mexico could sign. i don't think that's the ultimate consideration. the incoming president had a team at table. they're on the same page. what matters is a good deal.

canada needs a deal with the united states. the u.s. should want a deal with canada. this is our largest trading partner but that deal has to be in both sides interests. that is the ultimate goal. if it isn't today, it could be next week, or week after. you have got to get there eventually. stuart: do you suspect the president is okay on the economic side of things? he will take a deal but what he really wants is a political win, to fire up his base, which doesn't care for china and doesn't care for nafta? do you think that politics is at the root of all of this? >> i would be shocked if the president, who is the finest politician in the land isn't paying attention to the politics of this. any president would. yes, politics enter into this. they enter into this on the canadian side as well. prime minister trudeau doesn't want to go back to canada having given away the store on dairy and lose a subsequent election. you have to thread the politics into the economics of this deal. and that is what they're trying to do. >> douglas, thanks for joining us. i think you're absolutely right

and i'm going to take a look at the market which proves the point. douglas holtz-eakin. see you soon. look at this, now we're down about 50 points on the dow industrials. as the problems with the talks between canada and the u.s. progress, as we're learning more about it. ashley: yes. stuart: the market is on the downside again. ashley: yeah, perhaps a little more pessimism finding a compromise. not over yet but we're not getting a whole lot out of canadian foreign minister. stuart: as doug said, canadians have to worry about politics as we do. ashley: of course they do. >> how can trudeau the prime minister, go back to his people, face another election if he has given away the tariffs on dairy products entering into canada? ashley: there is not compromise on agricultural issue. that is a big stumbling block. politically more important for the administration. stuart: they are talking. >> they are. stuart: we have had various commentators on the program, wait a second, we have the whole day to go. it ain't over until it as

friday. friday, still only 11:30 in the morning eastern time. who knows. we're down 50 on dow industrials. jonathan hoenig capitalist pig kind of guy still with us. i have exhausted trade. i want to talk amazon. any doubt in your mind that eventually gets to a trillion dollar market capitalization? >> well you can't, talk about amazon. amazon is a trading machine. how does amazon succeed? it succeeded becoming a global world marketplace. it's a good point, stuart, trade is really integral to amazon's success as is innovation. a trillion dollar market cap with eye-popping, seemingly a couple months ago. "fang" stocks, apple new all-time high and amazon up again, a trillion ain't what it used to be. what worries me, i'm not a naysayer, stuart, is a couple things. narrowness of this decline. it is all technology decline. if you look back at amazon there is a gap on that chart of about

$1000 lower. this is area historically the market tended to go back and fill in. these are bullish time for the economy and these stocks. it just makes me a little nervous we've come too far, too fast for technology. stuart: i think amazon is one of the best, most impressive dynamic companies in the world bar none. what say you? >> yeah. that's why jeff bezos is where he is. not because of stimulus programs or tariffs or any type of help from government. he created a service, stuart, that we all willingly flock to, many of us several times a day. he succeeded by that innovation. what started out simply a bookstore is an indelible parts of hundreds and hundreds of millions of americans lives. that is how you become a billionaire. get to be one of the few, few trillion dollar companies in the world. stuart: before we chose, jonathan, you like, now we know that the company, everybody knows the company, canada goose. it is not a major leagues player

by any means but you like it but i would have thought there was a problem with canada goose because they're hit hard by chinese knock-office, not the real thing, fake stuff coming in. you like the stock? >> stock has been on a roll. this is brand, not a lot of people actually know this brand, stuart this i believe could be the next j. crew, l.l. bean. this stock is on a roll. it makes the point once again trade is good. a company from canada, consumers in america, many shareholders and employees are in america. trade is good. canada goose is a stock on a roll especially when retailers are looking to differentiate themselves. being that hip brand matters more than anything else. goose goes higher from here. stuart: goose goes higher from here. i've got one, by the way. too big for me but i've got one. jonathan, thanks very much. before we move on, i want to read this, this comes from the

"the wall street journal." ashley: yeah. stuart: ford scrapped plan to import china-built small cars because of the tariff cost. there is direct impact on the china trade deal on us as consumers in america. and ford motor company as well. all right, we were near the lows of the day. now we've come back a bit more. now we're down 35 points. this really so far today is all about trade, whether we get a deal with canada or not. we have a lot more coming up for you including warren buffett who says apple should not buy tesla. and there may be an underlying reason for that. more stories today coming up for you. ♪

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if you can't afford your medication, ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. stuart: this just in from prime minister trudeau of canada. he says no deal is better than a bad deal. maybe that is why the dow just dropped a little bit more.

now we got news on ford. they're not going to import subcompact cars, the focus model, from china because they will pay tariffs on it. ashley: they will post tariffs on it. this is crossover vehicle made in china, as you said, stu. the company said it will not cost any jobs in the united states or not have significant impact from u.s. sales numbers for ford. they said it boils down to resources. why put resources into something that could be heavily tariffed. one, they're trying to save money on something they could lose money on. two, tells me they're not optimistic a deal will not get done with china. stuart: that is the point, isn't it. they would not do this if they thought they would get a deal with china. ashley: correct. stuart: they are doing it because they don't think they will get a deal. the stock was down moments ago. later today the president trump heads to sar lot, north carolina. he will sign an executive order,

all about retirement savings. blake burman standing by. what is in this executive order? what's it mean? reporter: 401(k)s, stuart, really two separate issues. first off if you have a 401(k), 70 1/2 years old or older than that the government, at least rules they read say you have to start withdrawing from money from that 401(k). what the executive order, what the first part will do instruct the department of treasury to look at that regulation, look at that rule, say, wait a minute, is that exactly how things should be going forward? part of the argument is, thankfully we're living longer lives. they want to look into whether or not you should scrap that all together. maybe delay the age of which you have to start taking money from your 401(k). that is part one. the second part is for those who do not have a 401(k). many small businesses don't have that program set up. many large corporations do. but many small businesses don't. and what this executive order

will do, will instruct the department of labor and department of treasury to look into whether or not smaller businesses should be able to ban together so they can come together and put forth 401(k) plans for their employees. stuart, you might remember associate health care plans? the thinking there was band businesses together so they could offer health care plans for employees? same concept except on the 401(k) side. president trump set to leave the white house about an hour from now. he will be in north carolina at 2:00 hour to unveil this, stuart. stuart: that is good news for me, you realize that? i will be 70 1/2 hon january 1st of next year. i do not want to take out money from my 401(k). it will be taxed and added on to the tax i already pay for the job i got. reporter: i want a stuart varney-like 401(k). i can only imagine the size. stuart: if you start early enough, you're of at the age you can start early. i started in my 20s.

reporter: max, max, half. stuart: half a century ago. blake blake you're at good on stuff like this. warren buffett says it is not a good idea to buy tesla. why? ashley: auto business is not easy one. you could win in auto one year and lose the next. he said i support whatever ceo tim cook does at apple but, quote, that would be a very poor idea. stuart: very poor. ashley: he owns about $56 billion worth of apple shares. he is the second largest shareholder. what mr. buffett says does carry weight. stuart: i'm surprised tesla stock held up as much as it held up. ashley: with the amount of things thrown at it from every angle. stuart: we put it up on the screen. it was 298. just dropped below 300. $300 a share -- ashley: considering everything. stuart: i think tesla is worth more than the ford motor company, even though ford makes

money and sells 10 times as many cars. ashley: yes. stuart: trying to check this one out. low of the day. here we are, low of the day for the dow industrials. down 62 as we speak. 1/3 of the dow 30 up, 2/3 down. more "varney" in a moment. well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement.

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stuart: i will say the market is in a state of limbo. we're waiting for some time for an agreement between canada and united states. we haven't gotten a agreement today yet although today is the deadline. we heard a couple times from the canada's foreign minister running to the cameras. ashley: we're still working, blah, blah. this is wait and see market. it has gone a little negative because we haven't seen anything encouraging from the canadian minister where we stand. they were far apart a year ago. we still have major issues we will not discuss publicly, probably smart, feels like who will give, where is the compromise? that is what we're working on right now. how can we do this? as you say about the chinese, how can we get out of this and save face? that is true for any negotiation. it is true for trudeau. president trump has the upper hand here. how canada can agree, save face,

bring something back to the canadians they can get on board with. stuart: that is precisely right. almost at the low of the day, down 60. ashley: correct. stuart: i want to repeat the news on motor company because this is related to trade. they will not import the subcompact cars from china, is the focus model. >> the focus active, which ford called a crossover. will bring to the market, not going to happen. look the trump administration already has 25% tariff on auto imports, on chinas-made vehicles. they don't see it getting better. they will cut losses. will cut jobs or sales. this is not something we'll put our resources on. we'll put it somewhere else. stuart: ford's stock down 2%. i see this as a hit on china. ashley: now they're making these cars, have to find another market. they probably will. the pressure gets ratcheted up a little bit more. stuart: you're beginning to see fallout from stalled trade negotiations. ashley: yes. stuart: it is there.

ashley: yep. stuart: dow industrials low of the day, 61 points lower as we speak. now, coca-cola, very interesting story. coke is going to buy a coffee company, costa. tell me more. ashley: one of the world's biggest coffee chains. not particularly one owned in the u.s. in uk, there are 4,000 stores, they're like everywhere, much like starbucks on every corner. what what this says coca-cola rao legal is people are getting away from sugary drinks, physicianing drinks and diet sodas. this is probably a good move for focal la. they paid a pretty penny for it, five billion in cash, dollars. they get a big, big retailer to get their products out there and change maybe, what the products they're putting out. stuart: i keep going back to this. coca-cola is global, first global companies. ashley: one of the most recognizable brands in the

world. stuart: why not bring on coast costa to make a global market? >> analysts look at this, makes sense. it is a lot of money to spend. stuart: they are the current owners of this costa organization, they are brewers. they brew beer. that's what they're famous for. with did you tell me they -- ashley: bought costa, two guys, brothers, costa brothers for about, i think they bought it for, i'm trying to think, five million pounds. stuart: three million pounds. ashley: 3 million-pounds or $5 million. had 39 stores. bought it for that amount of money in '95. has 4,000 stores. sold it for 5 billion. that is the great investment for whitbread the brewers. stuart: why didn't i see that coming? check the big board. down 58 points. waiting for some kind of news, more news on china and trade.

all right. how about bitcoin? where are we this friday right before the labor day weekend? we're up about 35 bucks. $6900 is the bitcoin price. where is gold? just over $1200 per ounce. we've been there for a long time. more "varney" after this. . .

stuart: well, ash and started out this morning at 9:00 o'clock and at that time futures were pointing just a little lower. ashley: yeah. stuart: the market opened and the market moved higher, dow is up about 20 points. ashley: a bit of optimism that things were moving with canada. stuart: out came crista, canada 's foreign minister.

prime minister trudeau said we would rather have no deal than a bad deal. we are down 73 points. as we go to neil, here you go. >> thank you very, very much. weird every time she comes out there's nothing really new to say, why do you say it, maybe it's weird, maybe i'm the only one who notices that? welcome to coast to coast, i'm neil cavuto. we are following back and forth as to whether canada will sign on anything today by the end of the day because no one is really sure and canadians are missed that off record comments about bloomberg that the president not budging an inch really boiling prime minister trudeau and they must walk away from the talks and that means that canada is part of new nafta deal even though they are not using