tv Varney Company FOX Business September 17, 2018 9:00am-12:00pm EDT
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all sorts of, ground around it. the capital bank we have not been able to see it. the building that you may know is a significant bank in the southeast, right next to it they were on generator power right now. he lost power over there. the word is the cape fear river which feeds into this or this feeds into the cape fear river, it will have another 10 feet to rise before this is done. will have to give you pictures across this morning in the multiple hours. just so that you can see what's going on.
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hurricane florence may be gone but the damage is still to come. >> thank you very much. let's switch gears to tariffs. the president says that they will be tariff do think it's working? >> i do. first of all he's not bluffing. one of the main things that got obscured is how strong donald trump is on trade. he's not fooling around. i think he is going to squeeze china until they cry uncle. >> what do you think victory looks like? this has been my main concern to be quite frank. at what point do we accept victory understanding china and present xi jinping have to save face? they're showing >> in economy i think i agree with you but what would it look like? >> two things in particular. number one, ironclad
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assurances, enforceable assurances that they will not keep stealing technology, intellectual property. second, just opening up markets. where the life insurance or auto. there is u.s. products that are blocked from going into china. i think those two factors are bigger than an actual dollar amount. >> are the acceptable to china? listen, i think they can agree that they will not steal our technology. i think realistically, they will say we will not steal it in broad daylight anymore. certainly, they will never stop. particularly with made in china 2025, the backbone of their future being centered on technology giant of the world. i think we are behind the curve on that. >> absolute. as reagan always said trust but verify. i think you'll have to be controls put in. this i think will hurt china more than us. it will hurt the economy. you have to stay in the u.s. it is a big issue in the farm bill. a big issue for a lot of republicans, for small u.s. manufacturers that have
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problems now with the supply chain. it will be disrupted but i think in the end it will hurt china more than the us. >> probably the trump administration, more people with commerce and other areas, to that the 35,000 requests. and so many other things so that they can make it run as smooth as possible.thank you for joining us. >> take care. >> not the politics. as we going to the midterms paul manafort will cooperate with robert mueller and brett kavanaugh facing allegations of sexual misconduct. join us now weave a fox news contributor with the wall street journal editorial. james, what does this mean for the trump agenda? >> i think it moves forward. the kavanaugh situation is tough to see how it plays out. i think at this point, it is very hard to evaluate the claim. because it has so little specificity. it was an allegation about potential incident, sometime
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around the summer of 1982. a place that has not been identified. do -- >> do you think will be smart to bring the accuser to face the vetting committee? and then subsequent after that, bring in judge kavanaugh again before they decide to go through with the process? >> it sort of looks like a replay of the clarence thomas trauma. i think that is why conservatives are understandably skeptical of this whole process. i think if there is one thing we know, is that senator dianne feinstein has not served anyone or the country well. had this information, the professor did not want to be identified. eventually it leaked out. the question of why this is coming up now. there was a process, there was a hearing, why out of more than a thousand questions was this
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not one of them? did senator feinstein not take it seriously? so i'm not sure there's really any obligation to conduct another hearing. -- >> he says he is questioning if you get collins, murkowski saying they will be on the fence about it, the numbers start to look like he will not get it done. they may have to do this. considering the backdrop we are in right now in the country also. >> that may have to happen. obviously, the schedule for the republican perspective has been designed to have judge kavanaugh on the court early october. when they start hearing cases. but that could slip. >> thank you a lot.appreciate it. >> thank you. >> present trump tweeting on the economy over the weekend. best economic numbers in a decade. if the democrats take control, kiss your newfound wealth goodbye. say goodbye but you are still here. i want to ask you first. does he have a point? >> i think this is the strongest case for republicans.
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and it is not just look how great the economy is. which it is. it's also, here is how we will continue to freedom agenda of taxcutting regulatory relief that -- and you know healthcare this is how we will make healthcare more affordable. here is how we will keep chipping away at obamacare. the president is underwater as he normally is. but he has a consistent win with the majority paid the slight majority of the us, the american people saying, on the economy we approve.that is his strong suit. >> by the way, we still have great here. i want to ask you. james brings up a great point. the way they asked questions i think is a dubious method. but on the economy, 70 percent saying it is excellent or good. the biggest number by far ever. the republicans have that. not articulating it well. but still, many say they are in jeopardy in the midterms. why is that? >> maybe they have not solved
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it well enough you let me make what i think is the most important point in the election. even if the republicans lost both houses, unlikely. but if they did lose both houses, congress passed a bill killing the trump tax cuts, he would veto it. it would surly be good in the senate. i think all of the talk about you're going to lose all of your wealth, the veto is good for another two years at least. >> i think the idea is that there are still more on the agenda to get through including bigger tax cuts for the middle class could alright guys, thank you much. amazon investigating employees for bribes. >> is interesting. it'sa cutthroat world . certainly amazon being the big one out there. there are reports that employees are selling favors. how? by deleting negative reviews of products. or pushing up where the products are seen in the search on amazon. primarily, reports of this happening in china. also the u.s. employees are under investigation. for 80 two $2000 in china can
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get internal sales metrics provided to you. you can get review emails and service that will delete all of the negative reviews. also, people are being paid, this is interesting. when you search on amazon you want to be on the first page that comes up on the search because that's where the majority of sales are made. theyhire people to click constantly on their site . that will get you on the first page. or just write a bunch of fake positive reviews. either way, it's a problem for amazon that they are investigating. >> absolutely amazing.alright folks, just 20 minutes until the opening bell. slightly down all morning long but nothing catastrophic. it will be a huge day and a huge week for your money. also, the sale of oil and gas breaking records nearly 1 billion in revenue brought in so far. the secretary of interior will join us to talk about that. and tragedy in cape cod. a man attacked and killed by a shark. it has not happened more than 80 years. details when "varney & co."
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steps down from personal reasons and a little pressure there also tesla, let's look at tesla. it has been bouncing around now you can see again under some pressure. and there was a fire at a giga factory under control. not to energy. the government, generating a billion-dollar shattering all records joining us know we ryan zinke.secretary of the interior. where does the money raised from these leases actually go? >> direct to the treasury. i can tell you that earlier i had said we would be the number one oil and gas producer in the world. by third or fourth quarter. we made it last week. the united states is the largest producer of oil and gas in the world. >> what does that translate to? >> a little over 11. we are all of the above. we have an offshore lease on the east coast, looking at the largest offshore lease and
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basically, i don't ever want to be held hostage. by energy needs. i do not to send your kids or my kids to fight for energy. and environmentally, it is best to produce energy in this country under reasonable regulation. >> of course no billions and billions of dollars sent overseas, some of it has gone into -- just to say the least. the idea that american job creation is what blows my mind. on friday we had the projection numbers that passed the utilization calmly look at mining and drilling, it is phenomenal. i mean this is where it has these great jobs is not? >> we are running on full octane no pun intended. you look at commodities, you know, the cost of stills about the same as pittsburgh.the driving economy is affordable, abundant and reliable, all of the above peer certainly energy
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regulation and they say well there is no interest on federal lands on energy. if we do it right, big interest. and you can make sure the environmentalists are taking care of.in other words the concerns will be appreciated and taken into account. >> and what we do is we make sure that the energy portfolio is done correctly. it is better to produce energy under reasonable regulation then have it produced overseas. if you don't believe me i'll take you on a tour of africa and middle east if you want to watch. >> now, we believe you! real quick before changing topics. liquid natural gas. is there a way to speed up the process? the world needs are natural gas. it's an amazing market. you know, we get it so cheap and we can sell around the world for 2 to 4 times what we produce in here. >> some of it is infrastructure. >> the permitting process, can it be sped up?
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i feel like there were roadblocks in place from the last administration. >> we are trying to streamline the process she had one federal decision rather than different bureaus. it's been an enormous effort with the trumpet ministration. they have unwound maybe 22 regulations for everyone they put in. a lot of it is given certain to the market. i'm very bullish on it.you look at the, how clean it is, how abundant and our allies are also having a great demand for it. >> absolutely. before you go i have to ask you, about florence. the role that your department is playing in this. because we know it is still a process.right? we just heard that cape fear, the river will go up another 10 inches or another foot may be. >> yes and the interior role is, love search and rescue. but the response is, look at your neighbors because the response is local, state and federal last. check in on neighbors if you can. do not cross rivers and
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streams. as a former seal i can say when the water starts getting high there's a lot of bad things in the water. powerlines, alligators, in some cases. a lot of debris. you do not want to get trapped. look your neighbors if you can, help them. make sure that you call. make sure law enforcement and first responders know where you're at. hopefully, you have water. but the water will rise. we are out there doing search and rescue. first responders are doing a great job. >> congratulations, great news. people do not know oil and gas is an american story these days. i'm glad you're out there spreading the word. >> all the above energy, made in america! thank you very much. >> real quick now let's get a check of the equity futures. coming up a little bit. probably have a flat open despite news about increased tariffs on china goods. in the meantime, florence slams the carolinas. again, he does her secretary ziggy talk about it.
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knocking down trees, knocking out power. people are now the duck. the president of duke energy will join us and tell us about their efforts to restore that power, next. i'm ken jacobus, i'm the owner of good start packaging. we distribute environmentally-friendly packaging for restaurants. and we've grown substantially. so i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. that's right, $36,000. which i used to offer health insurance to my employees. my unlimited 2% cash back is more than just a perk, it's our healthcare. can i say it? what's in your wallet? a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage.
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lululemon over a wells fargo. want to get back to florence. now duke energy president. sir, if you can can you please update us on where power restoration is right now? >> sure, charles. we have express about 1.4 million outages of homes and businesses that we serve north and south carolina. but we are pleased we are able to make such good progress. we restored of 1.1 million customers with the army resources that we have over 20,000 personnel in the field. we are working to ensure to get power restored. just as safely as we can. we have more work to do here but we are pleased so far. >> i know you've learned a lot, you and your organization have learned a lot from previous recovery efforts, what are you doing different now. in addition obviously to the mobilizing so many people but what are you doing different
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now that you're confident this could be substantially better than previous efforts? >> we are using predictive data analytics to determine when floodwaters will recede sieving into the heavily impacted areas. we are also using a squadron of drones to do aerial reconnaissance of damage so we can complete the assessment. then it will allow us to prioritize resources in ways that ensure that we can get the most restoration as effectively as possible. >> are there any spots right now, any areas, we have a pretty wide audience that you like to share, anything that you want to impart with folks listening right now? >> in the coastal zones we've got a number of counties that still have up to 75 percent of the customers without power. that's where we are targeting restoration efforts currently.
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today we will be bringing in helicopters with aerial assault blades to cut the trees off the high-voltage transmission lines.and we will continue to concentrate resources on the coastal zones. we have about 6000 resources there currently. we will be bringing more in. these resources are working very dangerous conditions, changing conditions. the wind, we're still under a tornado watch here, flooding you've seen. but they are doing really heroic work and we've been partnering with all federal, state and local emergency officials to ensure we are all working to support this response. >> sir, i want to say thank you on behalf of everyone. we really appreciate you taking the time, and of course the effort you have made. dinky very much for your. >> thank you so much. this has been a challenging storm but it's also revealed the character of people in north and south carolina. it is been inspiring to me. it is what gives me confidence we will be able to get through this. >> inspiring to the entire
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to the upside. upper 11 percent. as the weaker performing index. nasdaq up 14 percent, up 12 percent, s&p up. there is an amazing rally going on each week this find a way to go higher. a lot of fear mongering. nevertheless, it is going very well. nellis check the opening bell. we are indicating all morning long you can see mixed reaction on the downside your mcdonald's on the upside verizon, exxon mobil and j.p. morgan chase. relatively a mixed bag. a lot of people watching apple. i think the cautious article over the weekend, last week there were some upgrades and some downgrades. some are still not sure about the new product launch. the number one loser at the moment on the dow jones industrial average.this is the s&p 500 for you. again, we will see some interesting movement there. look under the hood for you. nasdaq has been under an extraordinary amount of pressure.but again, the big names, carry the entire market.
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you live by the sword and sometimes die by the sword. join us we have jeff, scott, ashley webster. right now, i do not think the market is reacting rather to the presidents threat of additional tariffs. scott, would you suggest this is into the market where we do the math i think we articulate this, to be honest we would talk about the $200 billion number. what were really talking about is additional $20 billion potential tax on american consumers. >> yeah, the numbers get a little skewed. what is priced and certainly charles already, is impact to china. look at the chinese stock market alone, down about 25 percent from the high this year. if impact there already. and i think you are right, i think a lot of the rhetoric is kind of going on and on. it's kind of like being on a merry-go-round and what happens now is that as we get the deal done with mexico, a deal with china in the next month, maybe
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a deal with -- by the midterms you will see the market take a relief rally. so far, i think progress made is keeping the market afloat because the fact that there is hope for better times ahead with respect of a deal. >> is almost like the market has become two this. they do believe things will get sorted out. china says we will not negotiate this latest round when we have a gun to our head. they may have a point because the u.s. is being strong. we will continue to be strong. overall the market is not reacting big time because i don't think they believe it is going to be pushed over the cliff. at some point in agreement will be reached. >> china, they are saying there's a gun to their head but the fact of the matter is that, it's good for public -- even where media does not want donald trump to succeed no matter what but all you have to do is google the stuff. there's a time and a lot of people were against this or for
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this. nevertheless, jeff, it's interesting because the market has done very well from the march 23 low. we have been a stealth rally. last quarter american corporations had over $2 trillion of profit. a potential $20 billion in tax on goods. that is essentially what we are talking about. >> i think it could. i agree with what both of you are saying. what scott is saying is that there is an anticipation. ignorance is bliss, there is an anticipation that there will not be an escalation. the threats have been basically a paper tiger to the market. what i do see is if beijing follows up with taxes on auto and any threat against apple, we will see and escalation and consumer prices that could possibly erase a lot of the benefit of the tax cuts. that is my concern. right now the market does not anticipate that. >> to put into perspective, i did the math. on apple along from repatriation, if you say apple
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has 200 billion offshore, repatriation is a 39 billion. in a june quarter, because of the difference in tax rate this a 1.3 billion. essentially, we're talking about one single company saving $45 billion versus overall tariffs, the latest round being 20 billion paid one company alone saving $45 billion.20 billion could really derail the economy? >> the repeat generation changes everything.we have to see the repatriation come to fruition in a way that it negates any effect of the tariffs. when it comes down to it, if beijing does not back off, there is an anticipation they will back off. if they don't back off will have a sentimental problem. a psychology problem.we may lose some momentum. >> is talk about amazon. investigating employees leaking data for bribes. it's to help merchants increase sales on website. actually, walk us through this. >> it's quite fascinating because apparently workers in china for amazon are lower
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paid. always looking to make a buck. selling information, internal metrics. but also, they can start deleting negative product reviews but maybe they can start pushing merchants product for the on. if you search amazon those items that come up on the first page tend to do the best. they are there because more people click on them. >> there is a revelation that it can be manipulative. individuals have this argument that is algorithms.>> you can pay someone to pay their and click on a product all day long. that is what they are investigating peer they are saying, are we for sale? because there are brokers now the go to you selling paint and the broker will say i have a guy working amazon that can make sure the paint gets on the first page of the search.how much do you want to pay? >> maybe some of the american workers on food stamps make it
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the idea. >> they are investigating. >> another amazon story to share that we get the thoughts on all of this. opening up storefronts. new stores where customers shop exclusively from small and medium-size businesses that sell on amazon. jeff, is a something of a peace offering? in all of branch to the small companies that you know the amazon effect has been carnage for a lot of small business. >> yes, keep in mind, the greatest criticism against amazon has been that they have annihilated a lot of small businesses. which they have. this is clearly an olive branch. it does give small business owners access to the platform. it opens up to small businesses the vast number of prime customers that allows small businesses to sell to people that they normally couldn't. this is a major, major initiative for amazon. it is a victory for small businesses. small businesses that cannot afford to advertise, if they really learn the platform, it can make a lot of money. >> and now scott, we saw jeff
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bezos last week talking. you have this tax named after him by bernie sanders. he is the richest man in the world by far. he is saying if the companies worth 1 trillion i am worth 160 billion. i created 840 billion and wealth for other americans and other people. there is some truth to that but it will take a long time to add up all the wealth that was destroyed from him and the hundreds of thousands of jobs. with this peace offering work, do you think? >> i'm not sure. the guy looks good looks like he's been spending a lot of time in the gym to boot. i kind of agree the comment that was made about destroying or annihilating small businesses. but i have to tell you guys, i have a handful of clients that put product on amazon that were small businesses that are to medium-size businesses because of the amazon platform. they found the outlet. there are other places doing well. for the similar businesses. they are coexisting if you will on the internet.
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i am just not so sure the amazon has been that big of a destroyer. there are all of these antitrust talks and monopoly things. but the increased convenience, lower prices for consumers, provide more access to products. i'm still a believer in amazon and that is why we own it. >> i own the stock but i wonder, i dobelieve eventually they will face some sort of , some administration maybe not this one but somewhere down the road i think they will face antitrust pressures. i think the tipping point was getting into christmas trees. okay? [laughter] seven foot christmas trees. >> stay away from holidays! people wait all year long for that christmas tree gig. you can't take that money from them. they needed! [laughter] and twitter, they say the company, employees do not feel safe to express opinions. this is a hell of an admission! >> it is pretty wild. you know what's funny? when i think back in my life about times i've been scared to
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express myself it's been rare, i will be honest. you know, the desire to express yourself and fear one has to do that is a product of your environment, right?wherever you are if you are behind enemy lines or in a case in a liberal environment and conservative and scared to do that, it's really a product of really where you are. in this case twitter and now unfortunately, what we saw last week may be google as well. and other social media companies in silicon valley. it's unfortunately because is becoming more and more to light. it's a very liberal -- >> he does say is not fair nor is it right. so he is not saying that it is something you have to live with. >> and he is not doing anything about it. he is just saying it's happening. >> good point! >> i spent a lot of time in silicon valley. i've actually gone to meetings -- >> what would you like them to do? >> first of all, make sure everyone knows there practicing what they preach and conservatives are free to express their opinion with no
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threat of retaliation. and if he does that, and stands by it, and stands by the fact that he is okay to say that he doesn't agree with them. but he is not okay to let any of his employees retaliate against people. as if they are standing on jack dorsey side. >> right. i will take him i met with jack dorsey twice. it seems like he's looking for these answers but i am glad at least he admits that there are problems. there are people who are saying that it does not exist so it's good to hear it straight from him. let's check on the big board. we been open for 10 minutes. the dow more or less in a holding pattern. we are likely under and remain there. then of course there is apple. apple you know how the big product launch last week. some say they loved it and i think goldman sachs is a little concern for then a cautious article over the weekend. a little pressure on apple. you cannot forget tesla, right? elon musk says tesla is not delivering logistics hell.
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not sure what that means with the stock under pressure. then coca-cola in talks with aurora to make marijuana infused beverages. aurora has been one of the hot names along with others. everyone, limitation, construction workers stopped me on the street last week and they are buying the stock and others like it left and right also this morning tyson foods chief executive tom hayes , stepping down for personal reasons. a longtime insider has been named as replacement. thank you very much, as always great having conversation with you guys. starbucks laying out plans to go green. they say it will actually end up saving the money. it always does, right? we also have details on florence still wreaking havoc on the carolinas. we will be talking to the former director of fema. how does he think the agency right now at this moment, is handling this disaster? more "varney & co." after this.
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27 points per reopened under a little bit of pressure. not much. that's where we have stated thus far. starbucks going greener. susan, what is going on here? >> okay so remember when they said they wanted to end the use of plastic straws? by the actual -- by wellfleet. now they have environmentally stores, by the year 2025. they want to generate solar and sustainable energy.they expect to shave $50 million off of the utility bills over the next 10 years. starbucks though, 28,000 stores
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around the world, 10,000, you do the math is not that much. back to. >> thank you. a man dies after being attacked by a shark in cape cod. >> the first time this has happened since 1936. 26 year old, arthur medici, originally from brazil has been in the u.s. a couple of years. he was boogie boarding with his girlfriend's brother wellfleet in cape cod when he was attacked. they say they saw him kicking violently. what appeared to be a shark, his friend managed to drag him onto the beach. as you can see from the pictures they tried cpr, he was rushed to cape cod hospital. unfortunately, he died from injuries.i'm certain at this point it is believed to have very well been a great white shark. the beach is closed and the problem is, there's been an explosion of seals in the area. that attracts the sharks and that is where we had the conflict between the swimmers and the sharks. unfortunately again, the first time in 80 years someone has actually been killed by a shark on cape cod. >> thanks a lot. back to florence. want to bring you to the former fema director.
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david, we want to get your take on how to think fema is going right now? >> i think they're doing well. they've done all the right things. working closely with the governors, working with the local mayors. they moved a lot of equipment and and people in, they have got 25 search and rescue teams. they have water capability put all the pieces are in place to do a really good job. i think it's really important is that the local and state governments are on top of this also. it's tremendous for fema. you cannot do by yourself. the fact that the state governments, local governments are really on top of this they are doing the right thing. the coordination is the best it can be, considering the amount of devastation and flooding. we will continue having this for a while. >> there is some confusion over the role of fema.
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and it has become murky. what are they supposed to do before, during and after the storms. particularly after peter a part of the rebuilding process?can you explain to the audience exactly the role that federal emergency -- i think is where a lot of criticism is coming in and maybe often can be misguided. >> fema is not a first responder. that is a state and local responsibility. fema is there to help supplies and money to do damage assessment. we are in adjunct to what slayton local government are supposed to be doing. that is working very well in this particular disaster. in the past has not but this is very well. fema is up to help for people to register, help them with losses. there is a lot fema will do and we will be there alongside the governors office and state and local government to help them on the way. >> david paulison, thank you very much. indeed, from everything we've
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seen so far fema has done an extra ordinarily great job considering the circumstances to thank you for your service and thank you for spending time with us this morning. let's check on the markets. walgreen has been negative, mcdonald's the biggest loser. caterpillar looking really good here. by the way they put out retail number last week that were phenomenal. that this is the best moving economy in the world. we have a pretty mixed bag.>> so much for trade tensions when you've caterpillar leading the way. >> it is really amazing they are doing extraordinarily well. we will keep an eye on that for you. meanwhile, the woman accusing judge kavanaugh of sexual misconduct says she's ready to testify. now top top advisers say she should be heard. we have judge napolitano next. how do you win at business?
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should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade. >> kellyanne conway says the woman who is accusing judge kavanaugh of sexual misconduct should be heard. listen to this. >> absolutely, she should not be insulted, she should not be ignored. she should testify under oath and she should do it on capitol hill. but that is up to the senate judiciary committee. they need to decide. and judge kavanaugh should also testify as to the 36-year-old allegation. >> judge napolitano is here. her attorney says that she is
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willing to testify.the white house think she should be heard. >> i agree with kellyanne conway. you cannot ignore. you cannot mock her. you can challenge her because these events, the event that she claims she was involved with, with judge kavanaugh is 35 years old. which of course, raises antenna for law enforcement. how can you sit on the 35 years? the answer is and she is a psychologist, i repressed memory, i did not tell anyone about it until it came out in 2012. long before donald trump was running for president. or anyone thought of brett kavanaugh seriously is going on the supreme court. in a counseling session with her husband. >> she did not mention his name specifically though. >> that is correct.>> she said there was an incident. >> there are defects in this. which the republicans will explore. now here's the question, when anita hill testified against the then judge clarence thomas, they went for the jugular. then the former philadelphia da was a classic destructive
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cross-examination. i do not know if they can do that in this #me too era and survive politically. it is not easy for me to say which way will go. but i am certain that senator grassley 's proposed telephone interview will not come to pass. this will be in person on national television. this lady -- >> national television? >> i can't imagine it not being. this lady making allegations, judge kavanaugh making his denials. look, he could lose the vote in the senate judiciary committee. and still go on the supreme court. it is not necessary for the senate judiciary committee to approve him for his nomination to get to the floor of the senate. the obvious the common necessary if they have 51 votes. >> at this point i think there is no way you go to full senate vote without -- >> well, you have two
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republican members of the committee. lindsey graham and jeff flake saying, i am not voting in favor of this until i hear this woman. >> right. >> so this will happen. >> the trump campaign former aide, paul manafort cooperating with the mueller probe. just how worried should president trump be about this? >> very, very worried. i will tell a couple of things. i've never seen this before. when paul manafort pled guilty to two crimes witness tampering and conspiracy to defraud the government. basically not paying taxes. he also admitted to 18 other crimes. many federal crimes of which are allstate crimes. what does that do? it makes this bulletproof from the point of view of a pardon. if president trump were to pardon paul manafort, to prevent him from spilling the beans against the president to bob mueller, he would be immediately indicted by the attorneys general, appropriate authorities in the four states where the bank fraud occurred!
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so this is part of the mueller method of operating. to make this bulletproof from any trump pardon. >> all right. the saga goes on. judge, thank you very much. flooding the main concern in the carolinas as florence continues to bring heavy rain to the region. a congressman representing one of the hardest hit regions will join us in the secondhour of "t edit" when we continue. -- the second hour of "varney & co.". . .
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charles: 10 a.m. on the east coast. 7:00 a.m. out west. the market has been trading now for about 30 minutes. dow jones industrial average off 33 points. maybe the low of session. very tight range. president trump wrapping up the trade -- ramping up the trade war with china, if countries he says will not make fair deals with america, they will be tariffed. florence producing catastrophic flooding in the carolinas. one area there, a record 30 inches of rain. over the next hour you will hear from a person helping to lead
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the rebounding efforts, head of u.s. army corps of engineers and person who helped lead the rescue mission over weekend the head of the "cajun navy." i'm charles payne in for stuart varney. this is hour two of "varney & company." ♪ charles: start in fayetteville, north carolina. jeff flock, show us what you're see there jeff. reporter: trying to get you a different view charles. i will try to get it next hour. this is modular home community in fayetteville inundated by floodwater. some good news or maybe not good news, as we reported cape fear river continues to rise. although seems to not rise as fast as they thought. i talked to marianne here working in the house behind us, you've been cleaning out your
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refrigerator. >> my freezer. reporter: freezer. no power. not rising as fast. >> it is going down some. reporter: they say this community, charles, it was worse in hurricane matthew that would be good. the great thing about this is, look at that up there. look at that isn't that good? >> that is a good thing. god is so good. to seat sun. reporter: if we could get drying in here. that could go a long way. all you lost was food? >> i didn't lose any food. i put it in the cooler to put extra ice on it. reporter: you're one of the lucky once. >> thank you. reporter: we'll talk to you a little bit later. sun is out. first time i've seen sun charles in a month in a week. not exaggerate. it has been a week. looks good. charles: all right, jeff, got to tell you, that is the quote of the morning, god is so good. buddy appreciate it. reporter: yes, sir.
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charles: look at this map, fayetteville, north carolina where flooding is major concern sits just outside of congressional district. representing that area, republican congressman george holding. can you give us an update what you saw from the weekend, how things are going right now. things are looking better, but i have to tell everyone that the flood levels will continue to rise on numerous rivers throughout the east. they don't expect flood levels to peak until wednesday. the cape fear will continue to rise. the little river will continue to rise. the the the neuse is beginning to go down a little bit. as we go to the western part of the state. there are a lot of roads closed from flash flooding and the
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governor warned be on the lookout for mudslides in the western part of the state as rains continue up there. we'll have more rain here in the east later today. the cleanup will take months and recovery will take years. charles: we know people always eager to get back into their homes. we had a buddy visit me yesterday from myrtle beach. he evacuated his family to southern jersey, he is looking to go back today. has the all-clear been given yet norfolks to go back home? >> no. not at all. parts of i-95 are still closed due to flooding. parts of i-40 due to flooding. these are major interstates f they're closed, i saw an estimate some 700 roads closed in north carolina due to broading. my brother is down in new bern,
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north carolina and that is cut off. people want to see the damage, assess the situation. don't take a risk f you're in a safe place, you need to stay there right now. charles: we had a chance to speak to former direct are to have fema. he talked about the cooperation. are you satisfied because unfortunately we've gone through some of these tragedies in this country, that, that fema, local authorities, federal government, everyone has really done the best job they could to not only prepare for this, but now that it is actually happening to take action? >> it has been amazing. the first-responders, federal, state, local, have done a phenomenal job. there has been great coordination. i have been through the state command center a few days ago. yesterday, or day before yesterday i was at the wake county command center. folks from all agencies are sitting there coordinating the effort. plus we have the non-government
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agency, red cross, samaritan's purse, baptist men are doing a phenomenal job. you look at new bern where there were several hundred water rescues affected down there. you have the "cajun navy" down there. it has been tremendous. it is bipartisan. i staffed a united states senator in the aftermath of flood, he was republican, he came together with the governor of north carolina who was a democrat and his arch rival and they did a phenomenal job working together. the governor here is doing a great job. this is a time when all partisanship is put aside and we come together to try to help all the people here in north kiril line. charles: we're always reminded we're all americans when these things happen. congressman, thank you very much for your time this morning. >> thank you. charles: back to your money on the big board here. the dow is off 22 points, very narrow trading range although in the red since the opening bell. big tech names we check every day for you.
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take a look. they're all under pressure, amazon say some of their employees are leaking confidential information to sellers in exchange for cash bribes. amazon is investigating. apple is one of the bigger drags on the dow. cautious article in "barron's." talk about mastercard. goldman sachs is adding that to conviction buy list, always good for any stock. oil making a nice move. some resistance at 70 but higher this morning. president trump tweeting about his tough trade policies this morning saying quote, tariffs put the u.s. in very strong bargaining position with billions of dollars and jobs flowing into our country, yet cost increases have thus far been almost unnoticeable. if countries will not make fair deals with us they will be tariffed. joining us keith fitz gerald. knot real any reaction to the latest trade developments. we saw thursday, news came out,
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algorithms, reacting selling on that it hasn't that much of an impact. if these tariffs are strong bargaining position from your thoughts? >> politically, charles they may be a strong bargaining chip, but economically traders just don't see it that way. i think there is almost a trade war burnout if you will. a lot of algorithm traders are sitting back and there is an implicit assumption cooler heads will prevail. charles: although, you have got a president here who says what he means, means what he says, he followed up on everything. and the market usually takes that into account, right? the market usually is always looking at the possibilities t would seem odd to me the market would ignore the fact that president trump would follow through on these threats? >> i think it would be too. i've been thinking a lot about this over last couple weeks. these have continued to
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escalate. i think it is burnout and sentiment, charles. traders are trying to avoid just like individual investors trying to avoid costly mistake of making a knee-jerk reaction. it has to be measured response and think through if you will survive this. charles: despite the tariffs you like boeing a lot here, don't you? >> well, i do. technically speaking it has gone through a great consolidation. we have 99 aircraft orders in august alone. making airbus a nonstarter. i think it has a seven-year backlog. there is a lot of things to like about the stock despite the trade war rhetoric. charles: agree. i tell people for years it is never sell stock for your portfolio. they have 20 years of visibility. china is not buying boeing for all true is i can reasons. they love the product. maybe this recent pullback an excellent opportunity. one a little bit more volatile though, i have to ask you about it, we're hearing people are leaving netflix, they say they will if they start to put ads on
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the videos. i think you're in that group as well? >> yes, i am. as a matter of fact, my family and i had a discussion about the very topic around the dinner table. i know this is not an isolated situation. the last thing i want to see i got away from cable television come back. charles: why would they do that? pressure to keep the stock going, momentum going? they're doing extraordinarily well. i can't imagine they wouldn't do this other than to keep bottom line growing fast enough to appease wall street? >> i think there is another purpose. for every advertisement they show they get ability to learn about their customers. one there is a revenue tradeoff. i think their marketing intelligence is what is driving this. if they can understand who is watching and focus in and earn more money. charles: keith, always great talking, buddy. thank you very much. >> thanks, charles. charles: we have a lot of news for you on this monday. twitter ceo jack dorsey admitting conservative employees at twitter don't feel save to
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express their opinions. this is at his company. he is admitting that. we're all over it. another day, another bad headline for elon musk. he says tesla's problems aren't production anymore. now it is delivery. we have those details. we keep hearing about a blue wave in november. club for growth got their hands on data that shows many contested races are in fact winnable for republicans. they will make their case. the worst may still to be to come in the carolinas. it will be a big rebuilding effort. we know it will be. the army corps of engineers is there to help with the mission. we will speak to their chief next.
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people tweet we know. he will get into with people that tweet directly to him. he said, someone, my car, took a picture of a bunch of tesla cars. she bought one. i was told delivery would come on 8th. 15th, 20th, 22nd. now i will not see it indefinitely. this is crazy. make it right, elon. he responded. sorry we've gone from production hell to delivery hell. we're making rapid progress, should be sold shortly. he has gone from production hell to delivery logistics hell. there is a lot of hell involved apparently getting teslas built and shipped. charles: that one year may cover elon's life for the last month. to florence, new storm video from the storm homes destroyed.
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cars underwater. we have lieutenant-general todd seminite, army corps of engineers. what is going on right now with respect to the recovery effort? how is it boeing? >> charles, first of all, thanks for having us on. the recovery effort is going well for the department of defense. i was with senior leader of northcom, general shaughnessy, and general milley they continue to reiterate the department of defense is all-in. what we can do for local and state governments, evacuations or help with moving of supplies we certainly can do that we're postured to step up to make that happen. charles: i was reading yesterday about a race to build an emergency dam in conway, south carolina, how did that go? >> it went well. there is highway they asked us to provide materials a mile long. we do this when the state and local governments see a need to put a flood fighting structure in.
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we also about 8,000 local dams. think about the magnitude of that. so if we see anywhere where there is a dam in any way stressed of overtopping or perhaps breaching, we've got reaction teams. we can come in and help those out. so there are techs right now on all of those local dams to be able to make sure we're monitoring that water. i think the other thing, charles, key to know here, this is a seven-state problem. we've been dealing south carolina and north carolina. as we think through this storm, all the way till friday, multiple different basins. you have stayed, federal, local and private dams. that water could easily come into a state from two or three states away. so what we're trying to do in the corps is to model where the ramifications will be, local people know to evacuate early. if there is stress on the structures, get on top of those right away to make sure we're protecting everybody we can. charles: everyone is saying that the biggest challenge is yet to
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come. of course there is still more flooding in some of these rivers haven't hit, haven't crested yet, haven't gotten to the peak, even beyond there, what is the role of the army corps of engineers in weeks to come, perhaps months to come? no so past this water issue which is with us next five or six days, we have couple other missions for fema. we are fema's engineer. it has to go back to do on temporary power. we do depreremoval to augment what states need for debris. if there are challenges with housing, we have the ability to come to provide housing support. there could be facilities like a fire station or police station that need to have some repair. we can also do that infrastructure. also be available to advise and assist and states and local governments. some of these storm we'll be engaged in this three or four more months to help out. we're proud to step up on behalf of the department of defense to
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do whatever we can to help fema. charles: general, i'm not sure if this is the right time to mention this but seems like it could be, one of the bipartisan issues from citizens of this country, our infrastructure is in trouble, our roads are crumbling and dams are vulnerable and overall grade from society of engineers is a d plus. could it trigger something in washington, d.c. to finally come up with a plan to help so the flooding in the future isn't as bad, damage issues aren't as bad? the road cracking up, those things are not as bad as we're seeing right now? >> charles, that is excellent point. some has already begun to turn around. what happened in harvey, irma and maria, massive devastations, congress just passed an unbelievable supplemental disaster response bill. they have provided us $17.4 million in the our lean in
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the corps of engineers, to go out to affected state, six states specifically to start rebuilding infrastructure. we have already got projects we started a couple months ago on those storms. it is premature to say what happens after this storm. we have about 95 -- charles: all right. lieutenant-general sermonnite, he was cut off with radio interference. i have got to say he is absolutely remarkable. he stayed in touch an communicated with everyone. i think he has done a great job. ashley: he ex-quds confidence, charles, that is what you need. he is in charge. charles: also great the "cajun navy," they will be with us later this hour. they sent more than a thousand volunteers to the carolinas to help with the rescue effort. they have saved dozens of people. we'll speak to the head of the "cajun navy" later this hour.
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charles: breaking news for you. judge kavanaugh released a new statement on the sexual assault allegations. blake burman at the white house. blake. reporter: charles, i want to read the statement in full from brett kavanaugh released to the media in the last few minutes. it says, and i quote, this is a completely false allegation. i have never done anything like what the accuser describes to her or to anyone. because this never happened i had no idea who was making this accusation until she identified her shelf yesterday. i am willing to talk to the senate judiciary committee in any way the committee deems appropriate to refute this false allegation from 36 years ago and defend my integrity. that from brett kavanaugh just moments ago. you know how this story has evolved over the last 24, 48 hours or so christine ford came forth. said she is the one that was sexually assaulted by
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brett kavanaugh 36 years ago at a party, a high school party just outside the washington, d.c., proper area in bet these today, maryland. we now have reports that brett kavanaugh is indeed here at the white house. we do not know exactly what he is doing here, who he is meeting with. whether this is scheduled or not, but notable, charles, that kavanaugh is here. you saw in his statement that he says that this is a completely false allegation. as for the white house itself, kellyanne conway says she spoke to president trump about this issue. she says that ford should not be insulted, should not be ignored. the official position from the white house is that christine ford should be heard, whether or not the white house also says, charles, that should be left up to the senate judiciary committee as to how that should go about. by the way ford's attorney says that she is willing to testify before the senate judiciary committee. if that happens, when that
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happens, still one of the outstanding questions as this is a fast-moving story on this monday, charles. charles: really is. blake berman, thank you very much, appreciate the update. let me update you on the big board. now turned positive. we were town about 35 points at the worst. up fractionally, you see buy on dips crowd making their early move. want to check coca-cola reportedly in talks with cannabis inducer aurora to make marijuana infused beverages. the stock is unchanged. lululemon getting a upgrade at wells fargo. new price target is 200. previous price target was 144 a share. we're staying on kavanaugh. fred barnes joins me on the political fight he is facing next.
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charles: quick check of the big board. getting a little traction. still a tight range but we've gone from negative into the plus column. big tech names under pressure early in the session. they remain somewhat under pressure. amazon most noticeable down 57 points. there is twitter. jack dorsey say why conservative staffers stay quiet about their views. here is what he said. he said twitter is so liberal in fact that conservative employees don't feel safe to express their own opinions within the company. joining us now, jim anderson, social flow ceo. this is i think is a heck of an admission from a ceo who has been under fire but who is also got a lot of cover from the liberal media and others who say the idea is preposterous. that conservatives have been targeted and people have been mistreated. >> this is remarkable and commendable. he is talking about it.
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everybody understands that there is liberal bias to some degree in employee base. he knows his employees far better than i with. he says, he wants conservatives which are in the minority to not be afraid of speaking up. i think that commendable. charles: i think it is. it adds insult to injury you tell all these people, just your imagination you are not being discriminated against. the question, how do they solve some of these issues? >> we have town pack this the conversation being had in most cases i think is the wrong conversation. people say my voice is not being heard. that is a fair complaint but if i found a local cable access tv show and i complain my ratings are not as good as yours, that is the way it works. just because your voice isn't heard doesn't mean you're being censored. you have to compete. charles: if you go to sleep, 500 followers, aunt betsy and you have 300 had followers and aunt
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betsy and uncle george are gone you have a different complaint. >> it was probably not aunt betsy and uncle george. if was vladimir. charles: i have spoken to jack dorsey at lunch. he asked me to take it up on the with the entire company. when you say it is robot, not the aunt, they will say you're not credible. that you are dissing them. you're brushing aside tear concerns like everyone else. >> fair point. i can't prove a negative, right? i can't prove that is negative. charles: you're calling people liars. >> i'm not calling people liars. i'm saying we're having wrong conversation. you're complaining with people not getting enough attention. charles: no. what we're complaining about, people are saying is there a settle of rules for these social media platforms? is there a set of rules for search engines? if it is can we know what it is?
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this way perhaps, perhaps, when things that you know, when someone puts out a tweet and there is no retweets despite maybe having 200,000 followers, because has wrong words in it, maybe we can figure this out. if silicon valley, if the social media companies just continue to brush it off, then how will it ever get resolved. >> algorithm disclosure we talked about before. we need to see inside the black boxes. that is a very fair concern and very fair focus for congress and regulators globally. charles: we know these are private companies. we respect they can do whatever they want. they can take their ball with it, go with it, right? but they are the ifing getting to the point to influence cannot be ignored. they have more influence than the traditional media, under a tremendous amount of scrutiny and regulatory control. any point the regulatory scrutiny and control should be applied to social media? >> there is. you're raising antitrust issues.
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google, facebook, apple is a different kind of company, netflix. you're starting to get large companies with tremendous influence. all have individual dependencies on al gorisms and technologies. there is very legitimate conversation. how much disclosure should we require of big tech companies. charles: you think it will happen? >> i do. just a question of when. charles: shah very much, appreciate it. president trump tweeting about the economy saying quote, best economic numbers in decades. if the democrats take control kiss your newfound wealth good-bye. joining us fred barnes "weekly standard" executive editor. fred, republicans don't seem to be able to articulate the job we're seeing with the economic boom. it is absolutely phenomenal. before i let you jump we had headline was median income was all-time high. real story to me, number one bracket, highest income bracket, every single race saw the percentage of people in that bracket at the highest level ever. it is soaring.
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people are doing well across the board. >> well, they are. it is quite amazing. i can't remember the economy being this great except maybe during the third or fourth year of the reagan presidency, just amazing. but you know, there is something the president has done, president trump has done for most of his presidency and that is step on a good story. he is trampling all over this economic boom that his policies really have triggered. i think he needs to be giving serious economic speeches. forget about these rallies out on the stump. charles: the rallies seem to fire up the base who ultimately probably make the difference in some of these campaigns. listen. almost everyone he has done rallies for in the primaries won. so his, this is the party, the republican party is the trump party right now. and unfortunately i don't think that some of these local politicians would get-out-the-vote without him showing up but having said that, what responsibility does the
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party have? what responsibility does the individuals have? i get a chance to ininterview them a lot and they don't seem to be able to sell the consumer sentiment number i saw from the university of michigan on friday, they don't articulate it very well. >> they don't and, look, i don't know that there is enough time for them to learn how to do that. so trump has to do a lot of that but he needs to take, have serious speeches that serious people are going to listen to. and it is i don't think the rally format helps that. you know helps candidates running in primaries that are backing trump but, that alone is not selling the story. charles: fred, i need to you just hold there for one moment if you can. >> okay. charles: i want to get back to the brett kavanaugh, facing allegations, sexual misconduct from a california professor. listen to what the accuser's lawyer told "the today show." roll tape. >> she believes that these allegations obviously bear on his character and his fitness.
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denials of course also bear on his character and fitness. >> does she think he is lying about this? >> well, she knows what the truth is and if he is denying an event she knows to be true, he is not telling the truth. charles: fox news legal analyst bob massi is here. all right, bob, kavanaugh's accuser says she is willing now to testify before a senate judiciary committee. how do you see it all playing out? >> well, i think it is necessary. the timing of it we know exactly why they held this long because of the midterm elections. if i woman has these accusations it is open market, chars, i think we have to remember in this season of these allegations there is no more burden of proof. it is the way, it is the optics, it is sincerity, it is all the things that go into making somebody, whether they're believable or not believable. that is what cavanagh is faced with. when you want to become justice
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of the supreme court, someone comes out with these you have to face it. charles: do you think we'll get a repeat what we saw with the clarence thomas confirmmation process? or, will it be a certain level of civility despite the nature of these allegations? >> i got to tell you, charles, it is a different time. whenever thomas was in the hearings we didn't have these type of allegations happening every week from years and years ago. that is not to undermined or underscore the importance of it but there is such a level of toxic dialogue anymore. i don't see civility anywhere. as a result, i think the best way to handle it, look this is a justice. he was a litigator. he understands these things. put her up, swear her in, see what she has to say, put him back, let him testify. let the fall the way it going to fall. what i don't see happens, continued after midterm. if in fact we lose, democrats take control, then it's bye-bye.
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charles: you know, bob, so essentially this is going to come down to a gut feeling. >> yes, among senators after hearing both the accuseer and kavanaugh. they will have to hear both sides and make an assessment perhaps knowing there is not really any true evidence per se. i think there is a third person involved. maybe he will testify. they will have to make a gut decision. >> you know, when you try a case, and i have tried many, the bottom line is, it comes down to believability. now in this particular case you have a partisan politics being played. this woman is getting up there to testify. she was a professor. there is always that dialogue. we heard it, why didn't she come out earlier? many women have said they're intimidated. they're afraid. that is real emotion. can't underscore that. when all saved and done this is the thing remarkable to me is the fact you could have a man or
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woman by the way, who has amazing credentials, amazing resume's, and allegation like this comes out, again, must be looked at and their entire career, credibility is gone. that is, the trouble with this. charles: bob massi, thank you very much. really appreciate your thoughts on this. i want to go back to fred barnes who is still with us. fred, kavanaugh has been vetted by the fbi six times, six full investigations from 1993 to 2018. nevertheless these allegations are front and center right now. would i assume there is no way he could become justice of the supreme court without hearing from the accuser and then kavanaugh again himself. how do you think it may play out? >> wealth first thing is the whole powerball lance in the nomination of brett kavanaugh has changed. he was supposed to be confirmed at least by the senate judiciary committee on thursday.
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that's gone. republicans are running out of votes. they're running out of time, and democrats think they're loaded for bear here. charles: all right. thank you very much, always a pleasure talking to you. >> thank you. charles: next hour, more on the fight over kavanaugh's nomination. brit hume will join us on that. but first, poll after poll shows democrats have the advantage when it comes to november but club for growth got their hand on data, many contests, contested races are winnable for republicans. at the will make their case. hi, i'm joan lunden with a place for mom,
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♪ ashley: interior secretary ryan zinke joined us last hour and he gave advice for the flood victims in the carolinas. take a listen. >> don't cross rivers and streams. as former seal i can tell you when the water starts getting high there is a lot of bad things in that water. power lines, alligators in some cases. a lot of debris. you don't want to get trapped. look at your neighbors. if you can, help them, make sure you call. make sure the law enforcement and first-responders know where you're at. hopefully you have water in there. but this is going, the water is going to rise. charles: sure. >> we're out there doing search-and-rescue. first-responders are doing a great job. ♪ now i'm thinking...i'd like to retire early.
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republicans 52-38%. pretty big lead. joining us david macintosh, club for growth president. david, your organization you guys say there is other data out there suggest races will be tighter and tight enough for republicans to pull some of them off? >> yes, charles, we did an extensive poll of 40 different house incumbents on the bubble, they are the swing races with 7-point or less lead for republicans. with is showed they have a slight lead, plus 2% overall. more importantly, these are mixed, rural and suburban districts so they have got a problem with suburban republicans not liking trump. they also have a problem with rural republicans not being motivated to come out and vote. in fact that lack of interest, there is about a 12-point advantage for the democrats in our poll. they are more interested in coming and voting f they show up and republicans don't, they will
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end up winning. charles: right. >> we also found some key issues that help motivate republicans to vote. do more tax cuts. support the president's agenda on i.c.e. and the border. and frankly support the president if they're threatening to impeach him. then we found some issues that will help win the persuadables, the skeptic republicans, the independents and the few moveable democrats. again, tax cuts was the number one issue that helped win those over to the republican side. so the bottom line is it's still winnable. it's tough, it's a tough environment but they have to run smart, skillful campaigns that stress the issues that are successful for them. charles: well, interest, that is normal, right? the party out of power typically has the most motivation and particularly now, more so than ever perhaps because already president trump has been able to appoint a significant amount of federal judges.
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he has got potentially a lot of supreme court judges if he serves two terms. how do you, how do you, how do you individualize this theme then? in other words, these are pretty broad, they cover a lot of area, do you go to each individual candidate, hey, reshape or potentially reshape your message this way? >> what our poll had enough data in it that you could break it down by districts. not districts, i'm sorry by regions. so for example, in the midwest focus on the economy, focus on tax cuts that will keep jobs, focus on cutting back regulations that will build up jobs here in america. in other areas in the south and the some of the other swing districts, focus on the immigration issue. that is not a club for growth issue but it does motivate the republican voters in rural and suburban areas. they don't want to see sanctuary cities, for example, because to
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suburban voters that means crime will be coming out to the suburbs if they don't prosecute the criminals. charles: what about simplicity of the message? again, we're seeing retail sales through the roof. we're seeing consumer sentiment and consumer confidence through the roof approaching levels not seen in 30 years. we're seeing all of these things happening, and listen, i drive by anecdotally, i see help-wanted signs everywhere from strip malls, it is out there. seems like it needs to be nudged and highlighted i about politicians for whatever reason seem incapable of doing that? >> the republican message, is right, should be simplified. if you want to give up economic growth, jobs created, kids going back to school, your 401(k) is growing, retirement is healthy again, if you want to risk all of that put the democrats back in power because we know their agenda will stop that growth.
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in fact they will start taxing you and taking it away from you. charles: david, always great to talk to you, buddy, see you soon. >> thank you. charles: now there is this. sign of the times as we head into the holiday shopping season. there are more job openings in retail than people to fill them. ashley: absolutely remarkable. 757 job openings in retail in july. and now it is getting competitive because there just not enough people, heading to holiday seasons not enough to work in stores. kohl's, jcpenney began hiring seasonal hiring in june. they are offering profit sharing, week's paid vacation if part-time worker this is fascinating, good for workers, they are in demand. first time in decade, charles, between march and june, openings beat number of people hired in retail. that is the first time that's happened in a decade. they are desperate for workers.
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wages are going up and perks as well. charles: thanks a lot, ashley. ashley: yeah. charles: well the "cajun navy" to the rescue, sending more than 1000 members to help the rescue efforts in the carolinas, they have saved dozens of people. we'll talk to the head of the "cajun navy" next. well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement. coming decade. the mineralset to inresources that are needed toe supply this coming demand are plentiful but not necessarily easy to unlock. the smackover formation in southern arkansas
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charles: check this out. brand new video from the coast guard, evacuating resident from rocky point, north carolina. the coast guard rescued 26 adults, 11 children, seven dogs and four cats from the neighborhood. while you're watching that joining us is shaun boudreaux, "cajun navy" relief president. thank you for the work you're doing. it has been amazing. just explain to us some of these efforts, i've seen images and read stories over the weaken and phenomenal. >> thanks for having me. i do appreciate it. the situation on the ground has been dynamic. you can imagine as you're trying to chase the weather, figure out where it will go, who will be impacted, you find yourselves doing everything from animal rescue to people rescue. whatever you need to do. charles: describe rescues you guys already have done? >> thus far i know we worked
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with -- had a crew working in laurenberg with local fire department. continue to offer people means to evacuate that didn't have means to do so. they involved medical nodes. also a few folks needed help in the, besides laurenberg but a few people in lumberton. we continue to cooperate with the eeoc and help them get their jobs done. charles: 1000 ships or boats in the "cajun navy," is that number accurate and are more people volunteering? >> yes. i wish i could give you an absolute number. there are other people who come out and spontaneous. volunteers are hard to track. they are important component of civilian rescue. it's a force multiplier. allows us to be more effective. in our organization i can garrity we had over 500 sign up. charles: first-responders, fema
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others, mentioned you guys. are you communicating with them on constant basis? are you part of the process now? >> there's a fine line, where we want to work within the structure of incident command, we want to work with officials but we also have access to social media and things that may be outside of their base of none at least in an immediate sense, take things beyond what they know b it is our objective to let them know, so we don't duplicate effort and cross over each other. charles: shawn, we appreciate it. you guys have been remarkable. >> my pleasure. charles: amazon is investigating employees that allegedly leaked internal data in exchange for bribes. the judge will give us his take on this in the next hour.
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. . y) i was there when bob barnett made the first commercial wireless phone call. we were both working on that first network that would eventually become verizon's. that call opened the door to the billions of mobile calls that we've all made since. i'm proud i was part of that first call, and i'm proud that i'm here now as we build america's first and only 5g ultra wideband network that will transform how we all live, once again. (bob) the first call that we've made on the cellular system.
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dow up 33 points. ii want to bring in john layfield, john, president trump he says he's going to probably announce tariffs in another $200 billion worth of chinese products and that will be, quote, tariff if they don't make fair trade deals with us. the market not really reacting to that, what's your reaction to the nonreaction? >> the nonreaction makes sense, you're talking $20 billion if that's the total, so it's less than 10%. that's a overall gdp, fraction of a fraction, it's not that big a deal and not that big a deal to china. less than 10% of what they do as well. to me what worries about this is both sides have overestimated their position, i think china has overestimated that the u.s. is so fractured, that midterm coming, a recession could hurt us, we have overestimate how things are in the chinese economy. that to me is this could be
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standstill for some time. charles: estimated how bad the economy is or pressure for life? >> pressure the president for life. to me what concerns me is that we are playing chess and they are playing golf. i'm not sure if it's even if same game. we have legit arguments. so they are play to go me a much longer-term game. charles: if you start manipulating currency you lose credibility if you want to be the world's reserve currency. >> absolutely. very dangerous game. charles: okay. >> so it's a small percentage but they are getting to the scale right now and if they buy into saudi, they could pressure to oil, but you're right,
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charles, the fact that they manufacture their economy is not a free economy and so also their currency that hurts it being reserved currency. charles: i want to ask you about robert shuller is saying stock could go up before it goes down and people questioning whether the economy is going to do well now giving back-handed documents, we are doing great but -- >> you have to put a caveat, you can't say too much about it if you're negative in total outlook. earnings are up so much, 35 to 45% appreciation comes from tax cut. tax cuts are helping the economy. do i worry about the trade war and inflation but this economy is doing well. charles: you worry less about inflation than the trade situation? for me ultimately the fed is the greatest risk to this economy and -- and the market but i feel good in the sense that i feel like jay powell knows that.
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>> yeah, charles, i agree, whoever is going to be president ms. clinton or mr. trump they would have deal with rising rate economy. eventually we've got to. the difference between the bull market now and the bull market that ended in 2000 tax cuts happened before the bull market ended. it took the bush tax cuts to get it over 3% three years later. charles: what are you concerned about, in other words, what would be the yellow red flag for maybe okay time to ease up, time to start to look for the exits or at least less risk to exposure to equities? >> to me oil prices, not a perfect storm but a black-swan event, you have the sanctions in iran, a million and a half barrels, million barrels of oil off the market per day, that's a big deal and with the capacity pipeline problem in west texas, you're not able to add extra
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capacity like we were able to do. so to me the one spark that could cause the problem. not saying that it would. charles: $74 a barrel would be the red flag area? >> i think up to 80 or $90 a barrel. charles: wow. >> before this could be a problem. if it gets that high. [laughter] >> i am too. charles: thanks a lot. now back to florence, tropical depression and moving north into the mid-atlantic but flooding remains serious problem, jeff flock in fayetteville in waist-deep water. >> checking out another neighborhood, it's not catastrophic here at this point, if you live here, you know, catastrophe can be personal as opposed to the entire operation, this community, most of the houses pinned down in here, there's obviously no power, i will say a positive here and we are fairly near a creek and that's what's flooding this and
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if you look at this i will show you positive note on this mailbox, you can see the high watermark where that got, we are 6-inches from that and that to me says good things about the creek flood and this is not as bad as it was in matthew they tell us so far, the problem with this whole business is that you still have the cape fear river rising, we checked in the last hour, it was up 6-inches and that's the big river that these things all either feed into or back up from and, you know, until we get to the crest of that which they now say could be pushed into wednesday and that's what happens, they say it's going crest tuesday, no, not yet because we still have more water coming in. so i think certainly bears a lot of watching but we will get away here. charles: thank you very much, i want to stay on florence and talk about the issue of flood insurance, major concern, coming in howard mills, global insurance regulatory leader, let's talk about first of all, i
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know it's early, what kind of damage are we talking so far? >> 3 to 5 billion-dollar estimates but as charles, we've just heard it's hard to tell because we have not seen the crest of some of the major rivers and that will go into 2 or 3 days, this event is still playing out. charles: a lot of articles last week on how few people in carolinas have flood insurance, it's shocking, fewer than a few years ago, we are talking multibillions of dollars of repair, rebuilding, who foots the bill for that? >> well, now we are hearing about maybe they'll be some federal bailout but that's a misnomer because the federal bailouts in the past are low interest loan that is need to be repaid, so many people to your point, charles, are going to be without coverage, tragically, this storm has moved so far inland and every mile you move from the coast you see decrease, the amount of take-up of flood insurance, it's been a problem getting people aware of the fact that the standard home owner's
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policy does not cover flood, they need to do that flu flood insurance program on their own and we will tragically see many people without many coverage for this event. charles: should taxpayers be responsible even if it's a short low-interest loan to helping people rebuild these homes if they didn't take out flood insurance on their own? >> well, the fact that all u.s. taxpayers are impacted by the national flood insurance programs in rates are subsidized. they are not paying justified rates, so all taxpayers are impacted, that's a question for congress obviously, there's no shortage of ideas on how to reform the national flood insurance program, there are bipartisan bills in congress right now that would do a lot of common sense that the industry has putin put on, we haven't seen congress take that up yet. charles: i think we will get nervous when the industry has a lot of input on these things. are they going to -- are they going to take risks off their
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balance sheets and force it on american taxpayers? >> no, would like to assume more risks. there have been programs and proposal that is would allow the national flood insurance program through fema, federal emergency management association to do reassurance which they currently don't use. every time a piece of property is bought or sold in floodplains and every time a property is bought or sold, you have to get new certificate of elevation the old fashion way, their common sense proposals such as creating database of elevations that all people could access, that alone would simplify getting flood insurance and would increase consumers who go out and do it and make it less confusing. charles: well, we know something has to be done, there's a sense of urgency, has been for a long time and it's going get greater, howard, thanks a lot.
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appreciate it. tyson foods, chief tom stepping down, no one has renamed as replacement. check out twitter, jack dorsey says his company is so liberal and conservatives don't feel safe expressing opinions. i want to know will new homes be built and can they withstand storms like florence, we looking and speaking to ceo of home builders. woman accusing brett kavanaugh of sexual assault should be heard and her lawyer says she's willing to testify and all ten democrats on judiciary committee says thursday's vote on kavanaugh should be delayed, coming up bret on whether this keeps kavanaugh on getting confirmed? most americans aren't filling the effects of the strong economy, remember, this is the same guy who also said this roll
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tape. >> you have done very well in this campaign so far by promising to build a wall and make another country pay for it. >> right. >> send 11 million people out of the country, cut taxes ten trillion dollars without increasing the deficit. >> right. >> and make americans better off because you're greatness would replace the stupidity and incompetence of others. >> that's right. >> let's be honest -- [laughter] >> is this a comic version book of presidential campaign?
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>> i talked to economic advisers who have served presidents of both parties, they said that you have as much chance of cutting taxes that much without increasing the deficit as you would of fly get away from that podium by flapping your arms around. >> then you have to get rid of larry kudlow who sits on your panel who came out the other day and said i love trump's tax
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plan. charles: well that was one of several memorable exchange between cnbc john harwood and then candidate trump and harwood is saying that they aren't feeling the strong economy, brit, what do you make of this? >> well, the polls to the extent there are any on this indicated that people give trump pretty good marks on the economy which suggests a lot happier than there was once were. there's always issues at all times and all places and you can always find a certain measure of discontent. the economy is never quite perfect but broadly speaking the economy is a plus for trump and in an atmosphere which he doesn't in terms of polling have a lot of pluses. charles: the quinnipiac poll, the number 70, all-time high, excellent 21% of americans, it's never been that high and this is not a poll that's necessarily
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favorable the president trump, the way they stacked the questions, having said that last week we saw consumer sentiment number the highest in 30 years, john harwood is saying there's going to be inflation, brit, people aren't buying cars, they are buying suv's, crossovers, what we sea -- see doesn't match actuality. >> one of the things you try to do as journalist set personal preferences aside so you can make a neutral judgment on the information before you, the facts that you cited seem pretty compelling and would suggest that john is off base here. charles: i want to ask you about this, of course, brett kavanaugh denying sexual misconduct allegations, he says he's willing to testify on the allegations, now do these accusations, do you think, ultimately they will stop from being confirmed or is it too
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early to know? >> it's still early to know. my guess probably not but that's just a guess, everything will depend upon what is almost certain to be a public hearing at which with kristin ford will testify and see how strongly she recalls the things and impression to be followed by brett kavanaugh again who will no doubt repeat emphatic denial that anything like this ever happened and, you know, there's a real likelihood that they'll be a no-decision unverifiable allegation, you can't prove it one way or the other and then we will be back to where we were with anita hill and clarence thomas, she made the allegations that he made improper sexual conversations with her, he denied it, said it never happened, she couldn't prove it either way neither could he actually and in the then democratic controlled senate confirmed him by a narrow margin, so my guess is if that's
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how it turns out his nomination will probably survive but all depends on handful of republican senators, enough republican senators as you know, charles, to confirm him but if they lose any, it's democrats, i think, if any republicans break ranks i don't think they'll get any democrats to vote for him. charles: you talk about the ability of journalists to be impartial and we see a lot less of that today than we ever have perhaps in lifetimes, the same thing seems to be happening in dc both even worse, the ideological dividing line and so you have to wonder because this is going to be a gut call after both accuser and accused get a chance to speak and you just have to wonder how much of them -- how many folks the senators will listen to what they're hearing or already made up their minds? >> well, i think they the overwhelming majority of senators will made up their minds and will come to a handful. and the atmosphere will be likely to be much different from
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the atmosphere from clarence thomas and anita hill. back then congressman personally accused of perjury, i don't think there's any chance anybody in the republican the same, she's likely to be treated very gently, i mean, she may get some probing questions, but you're not going see the rough house stuff on house that you saw back then so a different atmosphere and it'll all come down to whether a handful of senators on the republican side decide determine that they cogo forward. charles: all right, brit hume. >> thank you, charles, you too. charles: let's take a look at the big board, red arrows, particularly amazon, story about employees selling positioning data there, they are investigating that. let's check on gold, gold, again, hanging around the 1200 level but it's been mostly
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sideways commodities and then there's bitcoin, bitcoin at 6,255, looking for some sort of help if the security's and exchange commission allows etf's that may be the life they are looking for. overall looking at the big board, we are down only 7 points, we will talk with someone who says president trump can keep the positive economy, this economic momentum going if he follows a few simple steps, those include getting more young people into vocational programs and apprenticeship, also back florence footage, the extent of flooding in new bern, north carolina, hundreds of people had to be rescued and that one town alone, up next we will talk to a county leader there to find out if anyone has been -- if everyone, rather, that is been accounted for.
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this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. ythen you turn 40 ande everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade. charles: back to florence, new drone video into fox business shows the damage from the storm, joining us on the phone north carolina lieutenant governor forest, lieutenant governor, you guys aren't the woods yet with this flooding, are you?
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>> no, we still have a long way to go actually. some of these rivers aren't even going to crest for another several days anyway, so you obviously have the issue -- you start with the water coming in from the coast and then as all the rains move to potential parts of the state up into the mountains and gravity takes them back again, we are dealing with continuing rising rivers, i'm actually in lumberton right now and trying to, you know, find our way around roads that are flooded out and trying to get through the state almost impossible. charles: what about rescue efforts, we have seen heroic rescue efforts and to be quite honest i'm quite surprised at how many people did decide to stay in their homes. >> yeah, it's always surprising, it's unfortunate, you know, you hammer that drum beat for as long as you can and telling people this is the most serious and many end up going through
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hundreds and hundreds of rescue efforts even down here in lumberton where i am right now just heard that there was water rescue just a minute ago, we are trying to make our way over to that area right now. that's still going on, that will continue as these rivers rise, trying to get people evacuated, you don't ever really know where the next flooding is going to come from and what area that's going to be in so, yeah, there's people that's still in rescue phase and people that are starting recovery phase, there's obviously thousands of linemen from all over the country that are working to restore power as fast as possible but we are going to continue to deal with rising flood waters for several days now. charles: lieutenant governor dan forest, thank you for taking the time and good luck weferg, thank you. >> thank you very much. have a great day. charles: staying on florence, wilmington, north carolina, another one of those communities hit hard by the storm, officials plan to air lift food and water to residents, up next live report from the ground to see what conditions are like there,
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charles: check the big board split evenly, winners and losers caterpillar at the top, apple, and let's talk about the economy because it's obviously humming along very nicely. take a look at this headline from market watch, quote, what it will take to keep the trump recovery going, joining us now the author of the op-ed peter m marici? >> on the government said we have to make the personal tax cuts permanent and we have to keep the deregulation train rolling, after all there's a lot more work there that needs to be done, on the business side, they've been rolling out a lot of training programs, many of which are certified by the department of labor, they'll be called apprenticeship programs and great opportunity to earn
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$15 an hour while you learn significant skill, i'm not just talking about welding, hospitality, lead to 60,000-dollars a year for a job. as semiskilled workers with machines, they are not laying them off these days, too hard to find workers, instead they are training them up, people going to $30,000 a year to $90,000 a year by going through a year's worth of training that the company pays for and that's extreme but plenty of towpts upgrade skills, businesses are providing them, we need to see more of that, let's face it, there's a limited amount of labor at 3.8 amount unemployment. charles: peter, it's interesting because government does get involved for incentives for buying equipment and things like that, any notion that they should get involved for incentivizing the companies to do more to ramp up job draining? >> i don't like that sort of
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thing on either side, either incentives to buy equipments or incentives for job training, the best thing you can make is make corporate taxes as low as they can so america is attractive to invest and deregulate and that you have proper trade policy, so all those things are in place and we are moving in that direction, given that businesses will do that and labor for the first time is really scarce in like several decades, so that's an adequate incentive if businesses did the right thing. you start putting out incentives and all people start gaming them, of course, it goes through the legislative process and unions want a piece and so many of this group and so many of that group, before you know it you have to sell it by design. charles: real quick, peter, how are you feeling about the economy and markets right now? is this move self-sustained? >> the basic -- the fundamentals are there, the real question is
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how does the market respond to to a republican debacle in the midterms, if the democrats take back the house and the senate, you know, we can expect they will spend the next two years harassing donald trump in every way possible. look at what feinstein pulled with kavanaugh, she knew about this six weeks ago, she throws it out at the last minute, you know, this is not going well, she could have called kavanaugh in, she's behaved in not the most stelar manner, my feel asking that if the elections go the wrong way that could really throw sand in the gears. other than that, i'm very positive, the basics to have economy are very sound. charles: peter, thank you very much. i want to get back to florence in wilmington, north carolina, one of the hardest-hit areas by the storm, the high water cutting it off for the rest of the state, rick levanthal, we go to rick. >> yeah, charles, they will have
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to fly in food and other supply because it's virtually impossible to get anywhere from here right now. one of the reasons is because of the roads being so damaged. mostly because of flood water cutting off roads but in this case, this road forgive me it is middle sound loop road which is a few miles north and east of wilmington, you could see it was completely washed out by the storm, the storm drained right here that connects a new development up there up to the body of water and there was apparently a water pipe that overwhelmed too, drainage pipe and you can see the marina over here which is higher than it would normally would be, that has to be dredged out. the gentleman here who owns a piece of the marina is pretty upset about all of this because the road is washed out, you can still get out of the neighborhood on either side but this would have to get prepared because it might likely get worse before it gets better and
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max davis is the home owner and he is right here. you were here thursday night. >> yeah. >> friday morning you get up and what happens? >> i saw piles in the marina, looked out and saw the road gone. >> and your first reaction was what? >> i didn't really know what to think. [laughter] >> you're smiling now but you're not too happy? >> what do you do, kind of upset, marina is gone, it's all filled in with sand, dock is destroyed. i think a lot of it could have been avoided -- >> that's going to cost you some money. >> hopefully not, i don't know. probably will, though. >> and you think this could take weeks if not months before they get this -- >> probably months. >> yeah. >> probably months. >> good luck to you, sir. >> thank you. >> conditions are at least better today, charles, it's sunny, it's hot, the clean-up crews and the utility crews can get out and get to work but the flooding isn't over yet. you know, the storm has moved to
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the north and all the rain still coming down and coming down rivers and other bodies of water and inundating north and south carolina, they are concerned about more floods and they are trying to get the power back on. we drove by a gas station up the road here, charles, the line was i don't know probably a quarter mile long, cars lined up trying to get fuel after 4 days of waiting. charles: rick, thank you very much. well, we want to stay on florence in new bern, north carolina hundreds had to be evacuated. joining us on the phone amber parker, public information officer. thanks for joining us. what's the latest with the situation in new bern and surrounding areas. >> well, new bern has a lot of work to do, we are currently still doing rescues as needed and many welfare checks, hundreds of welfare check that is we are still working on completing, we have roughly 487
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people still in shelters, we have 5 shelters that are open, on top of the current situation that we are facing we are also preparing for additional flood to go come our way as flood waters from the northwest actually drain into our river basins so we know that we are not out of the woods yet even though we are focusing on recovery we have damage assessment teams out right now looking at what kind of damage is out in our community as well as internal damage assessment because not only are we dealing with assisting our community but us as county government we've also taken a hit and have damage to our own facilities. charles: amber, how are you accounting for folks who stayed behind, stayed in their homes and now find themselves in a situation where they may need to be rescued? >> that is certainly a difficult situation, craven county issued mandatory evacuation, voluntary tuesday morning and by 2:00 o'clock p.m. tuesday it had
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turned to mandatory evacuation, county wide, we really worked hard to encourage residents to get out of craven county before the hurricane florence hit and the flood waters came this way. we had an inland shelter established in sanford, north carolina, we put alert out to public and let them know anyone who needed transportation to that shelter we went to their homes, picked them up and bussed them to the inland shelter and only 107 people went to inland shelter and we had 1,440 people at the highest count in our craven county shelters. charles: good luck with everything, thank you very much. >> thank you. charles: all right, folks, let's check on the big board, dow off 10 points right now, we have been in narrow range, peek intoed the plus column and pulled back down. meanwhile athletic retailer lulu lemon getting upgrade, prior target $144 a share. now there's this, volkswagen
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announcing major push to make all electric cars. ashley: they are, someone in the company said this could be the most important projects in the history of having wagon why because of the omission scandal and they are trying to recover the brand and to do that they are going all in on electric vehicles, we are talking exact cars, suv's under volkswagen name and audi and much talked about car producer under the volkswagen name, look, they are -- they have modular electric drive matrix, meb, it will revolutionize electric cars and this could be the rebirth of the company. 27 models by the end of 2022, that's just about 4 years from now, ambitious. charles: right around the corner. major race. ashley: four years that's nothing in car terms, volkswagen trying to come out from under
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the omission scandal. charles: ashley, thank you very much. we have been reporting on strong economy and appears to be firing in all cylinders, up next we will talk to ceo of national association of home builders and i want to know if -- if it really is a seller's market right now, meanwhile major retailers like macy's, target, kohl's all of them planning to hire more workers this holiday season, they are even offering perks and higher wages, the trouble is they are still having trouble finding new employees, all the details in just 90 seconds.
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cme group - how the world advances. ♪ >> susan li in the floor of the new york stock exchange, big holiday hiring season, big retailers like gap kohl's, and target looking to add tens of thousands of jobs, gap offering 65,000, target hiring 120,000, that's 20% more than last year, also macy's says they will match last year's hiring plan 80,000 jobs are up for grabs, in the meantime we have kohl's bucking the trend, not disclosing hiring plans, also not just the retailers but shippers are looking to add jobs, fedex looking to hire 55,000 workers, that's 5,000 more than last year raising hour ifs the holiday season, ups are looking to hire
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100,000 seasonal workers and 35% of those that are hired during holiday season eventually get permanent, more varney right after this. medicare cards are changing. with new, more secure numbers. but con artists, they never change. they'll always try to steal your medical identity. so, what can you do? guard your card, just like a credit card. don't give your medicare number over the phone or email. and remember, medicare never calls unless you've asked them to.
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to find more ways to guard your card, go to medicare.gov/fraud. don't let your guard down. ♪ takes more than just investment advice. from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional, is committed to working in my best interest. i call it my "comfortable future plan," and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org. >> well, flooding remains a huge problem in the carolinas in the aftermath of florence, joining us jerry howard, national association of home builders, he's the ceo there, jerry, i want to get a sense of how are you building new homes, you
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know, are home builders now taking into account the severity of the storms because each subsequent storm seems to bring another level of damage and people are saying, can these homes be built better? >> well, every locality or in some instances every state has a building code and home builders and insurance professionals, they all have input into the building codes in the different state, yeah, they are getting better and better, more effective, we are seeing in the storms last year that the homes that were built most recently are the ones that are withstanding the storms better than the ones who built home earlier. charles: another criticism that home builders build to the minimum, not beyond the standard, right, some home builders, i don't want to paint the brush, you know, a lot of folks say they prefer older homes, myth that the older homes are built better and more
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sturdy? >> oh, yes, in some areas there weren't codes 15, 30 years ago, people could build whatever they wanted. home builders will build to the codes if the home buyer wants to go above code, a home builder is willing to do that. charles, i will tell you, home builders can build to withstand virtually any kind of storm situation, the question is could a home buyer afford to buy a home that's built like that or would a home buyer want to live in a home like that. charles: i livered in guam, i lived in concrete houses, so, yeah, we want them to be beautiful, functional, not expensive and also withstand storms, it's a tall hurdle but we do need something approaching that it feels like. >> that's where the code-making process so important, every 3 years some cases every 6 years the codes are revised, examined
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and improved upon and process which we take great pride in participating in. charles: obviously the aftermath of the storm they'll be needs of home rebuilding, homes are going to be washed away, we already see one of the big industry issues for you lack of labor, tight labor constrictions. this is going to magnify that problem, isn't it? >> no question about that. in fact, unfortunately some of the areas that were impacted last year and in louisiana, hurricane katrina, some of those haven't been fully rebuilt yet, the tight labor standards are going to hurt and the cost of materials is really going to hurt too. charles: of all sectors, all niches of the economy and i've watched it very closely, i come through all the data points and i know you housing index coming out tomorrow morning u why -- why does it feel like the housing market is at least inconsistent at best right now? >> well, we never fullery recovered from the recession, only 66% capacity and there are very strong headwinds which are leading to that inconsistency,
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you mentioned one labor, the other is the cost of materials from the tariffs, canadian lumber prices, they have come back down but above what they should be, the tariff that is the president put on chinese goods in august, there are some 500 products that are used in home building that are impacted by those tariffs and then interest rates are going up now too, so we've got sort of a triple threat that makes us a little bit uneasy. charles: one issue i'm worried about beyond short-term tariffs and things like that, the lower end, there's no supply there, where is the starter home coming from? how do we get a young family into the home owner system without any starter home, average home 300,000, that's expensive for a young family who wants to move out of the city or want to get out of the rent trap.
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>> it's a national crisis right now, housing affordability again because of the cost of construction, the cost of complying with some of the very codes we are talking about as well as cost of materials and financing is becoming a real, real issue. i expect this will be an issue in the '16 elections but more important in 2020 election, housing affordability and the ability of americans to get the american dream of home ownership will be front burner. charles: midterms and 2020. appreciate it. let's check the big board, folks, we are still down 25 points, dow is positive for a split second but a little bit of pressure, of course, don't forget tesla, musk says that tesla is now in a, quote, delivery logistics hell, also amazon investigating its own employees allegedly leaking internal data and other confidential information to independent merchants in return for cash bribes, the judge will weigh in on that next.
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sales. >> there was a time when this was just a fireable offense, now it's a felony, it's called commercial bribery. there's a great deal at stake here, now, according to amazon this is ramping particularly in other countries, more chants are playing employees of amazon to jigger the way the amazon -- the merchant is perceived to get rid of negative reviews and they add positive reviews to change standing with their -- with their competitors. this, of course, delutes amazon presentation of honesty a neutrality. charles: also to me interesting is that it also sort of goes against the notion that this stuff is out of their control, only algorithms can do it, if you have employees that are able to manipulate this for money, they can manipulate it based on
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ideology. >> and one would think that the manipulation would leave finger prints so to speak, you are going to fool around with algorithm because somebody put $2,000 on your pocket, there's going to be evidence of that. i think there is and i think amazon is finding it. look, it's a great company. we all -- we all utilize it and it's enormous and it's not surprising that these things are happening. are they happening in the u.s. where it's a felony or are they just happening at other countries where there may not be the policing of it the way we do here? charles: also culture, a greater culture of this kind of things in other countries, right, in terms of -- from local officials on down. >> i'm smiling because i was talking to gasparino, he and i believe that there should be no thing of insider trading, while in some countries this type of thing is a commodity for sale, hey, can you find a guy in the inside for me that can make me look better, yeah, here is what it'll cost you, do it.
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obviously it's a crime here, it's not a crime there, amazon has to stop it because people will stop believing those rate that is we all see. charles: absolutely, judge, appreciate it. >> all the best. charles: coca-cola getting into the cannabis industry. ashley: it's the real thing. [laughter] ashley: actually they are looking to get into the drinking business in the cannabis arena, they are trying to look at drinks infused with cbd, it treats pain but doesn't get you high and they are doing some work with aurora cannabis, company in canada that's big in cannabis market. coca-cola is another example of a company, massive soda company that has seen sales drop off dramatically and looking at all options to try and see what they do next. corona. charles: last week busch,
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everyone wants to get into this business. ashley: it's a big business. charles: the stock is up 110% since. something is going on here. ashley: i think you're right. [laughter] charles: more varney after this. - [narrator] at athene, we think it's time for the financial world to stop acting the same old way. in today's complex world, you need a partner that is driven to provide you with better solutions for these challenging times, one that is willing to disrupt the industry, and break free from conventional thinking. (thudding) we are a different kind of financial company. we are athene, and we are driven to do more.
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>> coming up tonight, "making money." one thing is great, south carolina representative rob norman on the small business committee a lot to ask. keep it right here on fox business. 6:00 p.m. eastern time. i want to get a check on the big board. really interesting action in the market or inaction. the dow has been essentially sideways, mostly down all session long. it is not a panic situation.
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sort of a wait-and-see kind of thing. this is not unusual, but the market looking for some sort of a impetus and catalyst. we're down slightly. well, dow off 21 points. neil cavuto. take it away. neil: maybe clarity on some of all this stuff going on. here is what we know. brett kavanaugh, president's choice to become next supreme court justice of the united states. apparently he is at the white house. he is saying he is prepared to fight fire with fire. he is eager to get his side of the story out. that these allegations coming from christine ford are completely false. and the allegations have no merit. nevertheless the committee, the judiciary committee that would take up his nomination on thursday might push it back. there is no word on that, as whether christine ford will get an opportunity to testify and after that, much like clarence thomas and anita hill, remember that soap opera back and forth. he got to state his case.
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