thanks everybody dagen have a great day everybody. "varney & company" begins right now. stuart take it away. stuart: good morning everyone. this is how we love to start a monday. a big record-breaking rally for the stock market. look at this. the dow will be up triple digits, close to 200 points, there's a broad-based rally with s&p nasdaq likely to hit new records as new quarter begins. what's happening? a trade deal request canada, that's what. they give a little on dairy products we agree on how to resolve trade disputes and both countries agree on cars and autoindustry wages. it is a win for president trump. and at 11 eastern he'll make a statement from rose garden and he'll follow that up with a news conference you will see it all. that's a promise. now look at this. tesla stock soaring, elon musk

got a slap on the wrist in a new deal with the fec he stays on as ceo. but mechanisms will be put in place to control mufngs tweet. tesla is back above 300 dollars a share. now look at this. ge stock, soaring, long time since we saw that. the the ceo john flat rei is out, two-year-old turn arngd plan was not going well. mainly because of problems in ge power unit that is going to cost him 23 billion. ge is back above 13 dollars a share. what a day -- glad you're with us, "varney & company" is about to begin. as we said a big rally is coming right at the opening bell here some of the names jpmorgan apple

is unchanged i don't know whether that was happening with it they're all moving moment ago and still are. believe me -- you're going to see serious moves up for the big name stock and bring it to you shortly. now president trump he tweeted this on trade, here we go. late last night, our deadline we reached a trade into the deal reached with mexico. the new name will be united states, mexico canada agreement or usmca it is a great deal for all three countries so is many deficients in states in nafta opens markets to our farmers and manufactures reduces trade barriers to u.s. bring all three great nations together in competition with the rest are of the world. the usmcs a transaction let's go to the man himself the wall street guy i say this is a win for president trump on trade. you're going to take me on? >> you're correct.

it is a win it is a win that the president is -- and his team knew they needed they've had various trade disputes they want him so sew they can dot art of the deal and so ting this is a win not just for the president but for investors you see they're saying not that this is a perfect deal it not that they like all a of the changes. but the downside removed. we're at peace now with our neighbors on trades. [laughter] and i think it is also bad news for china because it is not america fighting with all its friends and with whole world. it is now moving toward trade peace with our friends and focus on china. >> well that is an interesting point because as you say you've got peace with mexico you've got peace with canada. we're talking with japan. we've got peace with the south korean we're talking with europeans. that leaves china, that puts pressure on china because they're the lone holdout opposing president trump. >> that's right, and ting becomes harold or or for them to stand the argument that --

they're not cheating on intellectual property or giving company ation raw deal if it is -- an emerging coalition of the whole world led by the united states, but not just the united states saying that china you've got to change your business practices. >> i'm sorry -- this now has to go to the full congress what happens if the democrats take the house with the senate do they throw a -- wrench into this say it was done by donald trump sabotage it. >> that would be quickly -- it is prolabor right it is proautoa worker -- a labor establish there. i and pay. in canada and united states, and raises wages for workers in mexico. i mean is labor going to pose that? >> very tough for them to oppose it we're going to pay more for cars but there are good things deal for biotech -- better patent protection. >> it sounds like a college top ten football name, though, right?

>> let them see, and a university uh-uh now far easier. okay. 10:00 this morning, larry kudlow on this trade deal 11:00 president trump with a statement and then a rose garden news conference. big stuff coming up. on this program, let's get to tesla. stock is moving high after a elon musk reached a settlement and he's going to pay 20 million bucks a and someone is going to monitor his tweets before they go out. that will be interesting. tesla analyst shaw is with us this morning on the incident. welcome to the show. >> thanks for having me. do you think problems are now over? >> i don't know if they're over. but -- like you said this is like a slap on the wrist for the company importantly for the bulls. elon musk is staying with the company. you've got better corporate

governess with a chairman and independent directors that focus on fund members of the jury they indicated they're very close to hitting profitability which is an important milestone for this company. >> he tweeted he was tweeting this weekend and he did say we're close to profitability. did he say anything about reaching those production schedules for the model three? >> he didn't talk about production but i think that's a key part to getting profitable. i toured their in-free mongt on tuesday and i have to tell you may have need progress with production they made 200 model threes in third quarter we see them make a model three every 20 minutes and so -- you saw that. and emerge at the end of the production. >> we saw it from a bare scrap of aluminum metal on one end come out as a beautiful shiny new electric vehicle on other in -- pretty rapid fashion, and a that

was something that they haven't been able to do for quite a long time. >> he was going to make 5,000 a week was that the production target? >> yeah. if he meets that, does the stock stay at 300 or does it move higher? >> i think in the short-term there's potential for the stock to go higher and not going to stop at 5,000, in fact, we believe that they're probably going to increase production closer to 10,000 as you get into the -- you know early to middle part of next year, and if they're doing that, then -- you know tesla is going to -- be quite successful they're going to i think -- they have the potential to earn a lot more. >> if i'm a tesla stock hold per but many of our viewers are should they be pleated it that -- musk is staying? that juvenile boy wonder -- >> absolutely. if he was leaving, i would argue that this company could not survive on this stand as i loan basis, and people own tesla not for it just being a car company. but for being a business that is

beginning to compete with über and lyft a company to get bigger into energy storage, a company that is going to develop world wide manufacturing. and you really can't see that happening without elon musk so this is a win for tesla shareholders today. fnght got it. thank you very much for joining us. your first time on the show. might not be the last. [laughter] thank you appreciate it. go back to facebook. facing billion dollar fine from european regulators over that data breach that left 50 million accounts exposed now facebook is saying instagram tinder and other apps were exposed as well. back to you james freeman. >> yes, sir. [laughter] >> you look at mark zuckerberg and elon musk -- these guys are indeed geniuses but should they be running major corporations? >> look, i think there's a lot to criticize on these guys. and mr. zuckerberg in particular

questions about bias against conserve withtives on his network is it a -- but i think in this case they are the victims here. because this is an xeak i think it is a qarng you look at the reaction in europe this is kind of a warning to the united states before we enact a regulation. and they're criticized for not providing more detail because they were encouraged to report it right away. now, the big fine up to -- roughly a billion and a half dollars it's based on a judgment it will be a judgment on what is appropriate defense of your network from malicious attacks this is a sort of regulated discretion issue -- test of liability on the part of facebook when they're at who is liable and for how much that's

the the question -- that's what they're going to decide. >> it's up to 4% of annual revenues they can take and i think before we go down this road is -- you know, facebook is having trouble but smaller companies are going to get smack harder before the u.s. we have to study this case. >> we have to tell you about this john flat rei out as ceo of general electric but i think emac you predicted this. >> yeah, because market value of g. e has been cut in half since took over from jeffrey last year. lawrence a turn arngd guy the question is will he cut dividends and lost 170 billion over market values and dropping below 100 billion in market value first time in nine years. power unit taking a 23 billion charge for that. they're in a world of feign right now. but maybe it can turn around. higher that's right. overall this market on this monday morning 20 minutes from now will go straight up nice gains for the s&p, nasdaq and

dow industrials. president trump speaks from the rose garden at 11 eastern this morning he'll talk trade we will carry it plus -- the potentially exemployeesive and riveting q and a that always follow when is president is in front of the media, and massive turnout at the largest e-sports event on east coast 250,000 bucks worth of prizes we're talking to the guys who organized it this weekend's big event. e-sports has arrived and we're with on it. the senate vote for brett kv that delayed. the the fbi now investigating but that's not good enough for the democrats. will anything make them happy? answer no -- a powerful earthquake rocks indonesia followed by tsunami dreadful stuff. details coming up in just a moment.

kavanaugh investigation first vote delayed while investigates

but that is not good for democrats complaining about investigation saying there shouldn't be a time limit on it. joining us now herman cain favorite guest on this program. welcome back herman. is there anything that would make democrats happy i don't think there is but you answer the question. >> i won't give you a short and long answer. no. nothing is going to make them happy. afterall, this is the 7th fbi investigation. now, they are going to be happy for a week. but i will guarantee you they'll find another reason at the end of this to say it wasn't long enough they didn't did their job. no there's absolutely nothing that is beginning to satisfy the democrats with this kavanaugh delay as i call it. you know what a delay is, it never eppedz that's what they're doing, stuart? >> now i call it character assassination, the the

assassination and destruction of this family. the assumption is women especially suburban women will go along with this. i don't think that is correct or have the positive impact on the midterms if the democrats think. what say you? >> i agree with you. i didn't believe his character has been assassinated as much as his character is being attacked because i don't believe that these accusations are sticking or influencing people'sen opinions even lady that asked questions during judiciary committee she wrote eight page report are that said that was no there, there and i listen to all of dr. ford's testimony and questions. i listened to judge kavanaugh and every time she answered a question her credibility went down, down, down. and i think that's what the attorney found out. every time the kavanaugh answered a question his

credibility went up, up, up so this is why i don't believe any of this is sticking in terms of trying to hurt his character. >> i'll say this. and then you can comment, i think it is time for republicans to get a backbone what say you? >> i absolutely agree. although i use a slightly different word than backbone but i know exactly what you mean. they -- look i think that they have tried to appease the democrats and the liberals enough. they need to get on with with it. now hopefully what senator mcconnell said last week is what he intends to do is to move on and he felt strong isly then. that kavanaugh is beginning to be confirm i had hope and pray that he's correct, stuart. >> herman cain thanks for being with us this morning. important day and we appreciate it. thank you. all right back to your money where are we going and a way to open up on a monday morning open up significantly so --

dow industrials will be close to 200 points higher. and about 12 minutes time -- and frump will sweep from the white house on that traitd deal with canada that's the reason market is going up this morning. 11:00 eastern, you can watch that presser right here. kanye west -- booed on "saturday night live" for his support of trump what he said that the that crowd outraged. how do you win at business? stay at laquinta. where we're changing with contemporary make-overs. then, use the ultimate power handshake, the upper hander

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>> monday morning, straight up from the opening bell that's the way the market goes this morning. about 170 higher for dow now deadly earthquake in indonesia followed by a tsunami how bad ash? >> the island is lousy listen, the official total is 832 dead. but this number could go way into the thousands. they haven't got ton area where 7.5 earthquake hit on friday noilgt that's an area with 300,000 people and haven't been able to get there. there's a 20 foot stadium that came into the the capitol of this region, it is an absolute mess, and as we always say in the situations, you know they're now frantically scrambling to rescue people by the way this very quickly among those killed was a 21-year-old air traffic controller who state his post

when the quake struck to get a passenger jet away safely and then had to jump from the the tower because it was collapsing and he unfortunately died one example of what happened. >> that's courage. kanye west says -- positive things about president trump on "saturday night live." and then he got booed. watch this. [inaudible conversations] >> how -- if i'm so -- a long time ago. well i guess you just not allowed to say nice thing about the president. also said we need a dialogue not a diatribe but interesting he was just as interesting as matt damon brett brett kavanaugh segt

routine but kanye is saying to black voters america first make america great on economic values remember they're about social conservative value and african-americans set that aside for the most part he's saying economy that's great that's better for you african-american unemployment at record lows. >> because kownch of his conviction is wasn't allowed to wear a mega hat and he did. good for him. sticking to his guns. not allowed to wear that hat? >> not dialogue, you are going to tell the man can't wear that hat. come on. please. i think we've got to get back to the markets. today is the first day of the new quarter yes it is october the first. a last quarter was the best for the s&p 500 since what, 2013. well now as a of this morning, we've got a trade deal with canada. we've already got a trade deal with mexico. we've got a trade deal with south korea we're talking with japan and we're talking with europeans next stop is china.

so i would suggest this nice stock market rally is all about the trade deal with canada. >> it is but also fundamentals stew let's be honest this is a dark cloud that's been araised we have china the big to do the deal with but president got what he wanted the markets are respond and now we have had a good third quarter and no reason to believe that fourth quarter won't be great either. >> see if china will get a deal going so ash is right this removes a cloud i think a lot a about trade and what's going on you know getting that tesla and ge thing, the confidence is back, and idea that farmers are going to retaliate with and have a problem. that cloud is now taken away with a deal in place. >> is china next we'll we'll have larry kudlow at 10:00 this morning by the way he is on the program this morning. hear if what 35 minutes from now chief economic advisory we're asking him about trade, and china top of the hour.

meanwhile, the market opens very shortly, and we will be up this monday morning. stay there please, it is beginning to be a great opening bell. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

all right. we are what, 20 seconds away from opening bell this monday morning. this is beginning to be quite an

occasion with a whole -- a whole bunch put it like that a bunch of good news for the markets today. we've got a trade deal with canada. the fundamentals are still in shape with more trade within the old nasdaq and here it is 9:30 on a monday morning and we are opening up. right from the get-go we're up 144 points and virtually all of the dow 30 have opened in the green. now we're up 152, 156, 162 okay i'll stop it right there. we've got a gain of two-thirds of one percent that's a big rally and s&p 500 a broader indicator okay. that's up a half percentage point. solid gain. the nasdaq composite is up a half percentage point solid gain look at general electronic there's a change at the top john flat rei out as ceo, they've got to take a 23 billion dollar charge for their power business problems. and it is withdrawn guidance

nonetheless, with out stock close to 13 a share again. e elon musk e agrees to i'm going to call it a slap on wrist settlement with the fec, market loves it 305 on tesla up 15%. big day -- jeff is here. shah gilani is here ashley webster both here as well. the trade deal with canada and mexico that has stocks rallying this morning. shah gilani you've been calling this one. go ahead take a victory lap. >> listen, this is what i think the market was hoping for and they've gotten it whether or not the trade deal as it is on table right now can get through congress it remains to be seen but right now market love the fact that this perhaps is a template for further deals we have a deal with south korea. welfare a pending deal hopefully with china if that is a template for that then market has higher to go. that is what they're viewing this morning and that is why we have a lot of green on the screen. >> do you look at at market in a more positive fashion with trade

things? >> i think the trade situation is improved. but here's the looming threat, it is china. hopefully -- canada and mexico coming to the table will force china to come to the table. i'm not as optimistic about a lot of people i think china is going to stick to their guns. i do think we'll have a trade war with them but for now it is positive. ngt got it. look at tesla. the stock is straight up this morning after elon musk reached a settlement with the fec. back to you, jeff. do you think that tesla problems are now over? >> well you called it a slap on the wrist. i think this was the best possible outcome for elon musk considering the fact that what people were worried about with the tesla fans were worried about about was that he would be barred from seiving as an officer on a publicly trade company. he was hit with a fine that was -- that was not even a rounding error to him that spend more than that on marijuana every year. but the fact that -- >> no, but fact is he really got

off free and the problem with tesla is by march they have a billion dollars in convertible notes coming due the stock needs to move up over 350 dollars in r it to work for them. >> move to pay or that bond in cash. and they have that cash -- for last week immediately put him down price tag 2.58 where it is -- you know, not making money. there's still not making money. >> we have an analyst on the show this morning. hold on a second analyst sitting next to me who went to the factory of the production of the cars last week. and he saw they will roll off the line, one every 20 minutes. very positive interview from the gentleman who was the tesla analyst sorry shaw, go ahead. make quick point. >> well they need to make those models coming out about about 5,000 a week in order for cash flow to be positive.

still going to be problems i think as jeff pointed out they've got 920 million dollars in the coming and never reach the convertible price which was 359 so that's a problem. fe krerks completely folded on this i read the complaint it is damming to the drinking and couldn't have made it impossible to me. they looked at the shareholders and investors in the company and thought if we destroy this man's reputation that company could go down to be at the risk that's why i think they folded it over. but they should never have done it and barred as chairman and coo. >> i have to move on to not spend too much time on tesla facebook is facing a billion dollar fine or more up to one and a half billion, from the europeans over that did data breach 50 million accounts exposed now facebook says, instagram tinder other apps will also expose nonetheless, the stock is up just a fraction. real fast shah would you buy it

at 164? >> accumulating a little bit down here with a 150 target on here and buy a lot more. >> okay. check the big board now we're five minutes into this trading session and we've gone straight up. we're up 176 points as we speak. that's two-thirds of one percent. the the price of oil this morning, i don't think it is really relevant to the stock market, but it has reached 73 dollars per barrel. and the price of gas national average 287 creeping up a little. check out pfizer the ceo will step down at the end of the year no reaction for market it is down 14 cents. big shakeup at general electronic john out as ceo who is going to replace him? >> turn turnaround guy so turning around ge. >> market likes up that 14 points up 13 a share earlier. jeff would you ever buy? >> and he was making -- attempts to cut expenses at ge. ge does a lot of talking no action.

i think this is just another way for they will to prove their it relevance right now they don't have a decisive direction. >> shaw, i take it you would not -- touch ge? >> no. sadly it has become a day trading kind of stock for me no, long-term prospects beyond horizon hard to see where the company will go. smg okay, california is the first state to mandate women on corporate board. you've got to have at least one. by next year, emac i've got to look -- should the government be doing this? any government should you be telling a private company you've got to have this gender on the board? >> no. you do that? >> no because what if struggling company these a talented individual to turn around a company it wouldn't have a board without a talented people to hire that puts the the tech investors who are women in silicon valley say they're worried this would put asterisk you know that's a glass ceiling but that is terrible and

undercut the real or minimize contributions. left-hand side of the screen microsoft all time high. 115 dollars share i do own a little bit it have. did tech stocks are up in general this morning apple at 228 i'm seeing -- let's see they're sharp amazon is up 26 at 2,029 big tech on screens amazon alphabet microsoft all of them on upside really big gains for all except facebook which is just up a fraction. look at spotify it is cracking down on you know, sharing family plans and they're going to ask users to gps locations check up on them. big problem for streaming service one person signs up for family plan shares password with everybody else and everyone uses the service very few people pay the full price. >> causing big stingt people saying look i pay for family plan why should it matter where

my family lives who can access it. legally you know under term of the groament they say listen we require two to five feel in family plan reside at the same address. this is a problem -- had is a problem because many you play for the family plan but there are others out there that share their passwords with everyone and lose revenue because of it. >> fess up ash. >> i don't. i don't i truly don't. >> he doesn't want a crowded household people all listening -- >> even my dogses have it if. ails have you ever shared a pass word? >> yes. thank you. >> is -- >> i have. >> shah gilani have you ever shared password? >> never. good man a little bit of integrity. i play the family plan. >> ever joined any kind of streaming service --

yeah i would probably share the password. >> spotify? you should get it. >> because it is great it's a great service. but like ashley said i think the issue is that -- they need to keep the confidence of people they need people to like them by giving up their family plan this makes people not like them. >> my chrysler van came with xm satellite radio -- >> you shared it with everybody. anybody else in the van with e me. channel 18 the beatles channel. [laughter] that's what i do. oh, dear nearly 9:40 we're with out of time that's a shame actually because it has been a remarkable opening for market on this monday morning so shaman the integrity never shares his password and seeger does. indeed thank you. check that big board we're ten minutes into trading session and we are up 150, 160 point about two-thirds of within percent roughly speaking. rallying stocks are riling on

news of a trade deal with canada and by the way, president trump will give a big speech on trade at the 11 eastern this morning. you'll follow that up with a q and a with media riveting viewing you'll see it here. we also have larry kudlow coming up the top of the 10:00 hour. he joins us live from the white house we're talking trade and he'll preview the president's speech. that's 10:00 with kudlow. but prosecutor who questioned brett kavanaugh and christine ford says if this case were a criminal case, there wouldn't be enough evidence to bring it to trial. she wouldn't prosecute judge napolitano passes judgment on that too. iran files back launching missiles at syria. after that parade attack. there were messages written on missiles we'll tell you what they said after this. (guard) what i've witnessed...

controlled fury. freakish intelligence. wicked seduction. these endeavors will rattle your soul... and challenge the contents of your stomach. if that sounds dramatic... it is.

i have the day this monday morning october the first now up 189 points. 26,647. iran has retaliated for the attacks on that you know the attack on military parade. so ash, tell me who did they blame in therefore -- >> they blamed militants in eastern syria trained by the united states israel, and saudi arabia. so as they launch missiles against mill talents in eastern part of syria they wrote on bombs put on state television things like death to america. death to israel. death to saudi arabia's ruling family kill the friends of satan and state television was there as they launched them taking pictures all of the rest of the typical iran stuff. >> president trump will take note. yeah, people are like that not at all he will look at it and

not like it in response to attack on a military parade in pran an they blame israel for training militants to carry autothat attack. all right ash thanks. kavanaugh investigation back to it. prosecutor rachel mitchell saying she qowld would not prosecute not sufficient evidence judge napolitano is here not sufficient evidence and you say. >> prosecutors should not take cases they don't think they can win, and if the only evidence is the he said, she said -- and if they say it with equal credibility which is pretty much consensus after listening to two of them she doesn't have enough evidence to -- prosecute. now she was hired by the republicans. she was hired by the republicans to cross examine she did a job of cross examining she bolstered the credibility of dr. ford. she did such a terrible job that republicans stopped her midstream when lindsay senator graham's turn, and then they

began speaking interrogating the cells but does not pacify the democrats period it will not. but as a matter of law in my view it is correct. >> okay. drinking and -- judge kavanaugh drinking as a teenager that's now becoming the focus of what the democrats are saying. now i should tell you judge i'm sure you know this, a friend of kavanaugh escape forward long time friend saying that kavanaugh did drink heavily in college, and was at times aggressive. the question i'm asking is -- did judge kavanaugh purge himself when he was talking about drinking under oath? >> that's why -- this fbi investigation is perilous to him because if fbi concludes either that he committed perjury or another crime here called misleading congress. he clearly gave the impression that he was not a heavy drinker who did not -- become belligerent stated he never passed out if there's

evidence to contradict that, that is an independent crime from perjury. that is the worst thing that can happen to a federal judge short of being accused of bribery this lying under oath. >> but what exactly did he say? he didn't say he blacked out. i don't think he denied he did say that on occasion it beers and had gone to sleep he denied to judge -- you know, none of this is criminal over drinking and in your youth collapsing in your youth. but the potential problem is that he's it shall he's given versions of this under oath. which are now going to contradicted by others. so put aside whether it is a crime. does it provide comfort for republicans to vote against him because of this? i mean right now -- if he is confirmed, democrats are not going to want to appear before him. because he attacked democrats. women are not going to want their cases to be heard and this is a mess right now. and if he's not confirmed he's

going to have same issues back on the circuit court of appeals in had he sits now and more or less taking a leave of absence since president announced this nomination. >> terrible thing here is that we're questioning a fine jurist about to go on the supreme court with questioning him about teenage drinking and his yearbook which has frankly in my opinion has very little relevance. to 30, 40 years later sitting on the supreme court of the united states. >> agreed. agreed. so he may have fallen into a trap and a the democrat goated him into that -- >> i agree with everything you're saying, and it is bad whatever the outcome it is perilous for judge kavanaugh if he's not confirmed it is perilous for whoever president nominates in his police and perilous for judge kavanaugh not confirmed and he wants to life appointment already. on the circuit court of appeals to go back there -- and unable to watch this taint

off his skin. >> you can't do that. i don't think he can and thomas after a 27 years -- and extremely admirable record of writing sophisticated opinions, still has had the taint. >> jerrold nadler democrat in new york, says if he's confirmed they'll still go after him on this perjury question or some other question they'll investigate him and try to get him off the supreme court and then off his court of appeal. what congressman knadler if democrats take the house, the the chair of the judiciary committee precisely which would be the lynch pen of any investigation for impeachment of judge kavanaugh, of justice kavanaugh. dare i say a of president trump. >> good lord. thank you judge. so much writing on the next five weeks stuart that -- future of the country literally rides on kavanaugh and the midterms. thank you judge welcome. see you again later. thank you. check out the dow 30 we now have high of the day up 200 points

with 26 of the dow 30 in the the green. one is unchanged three are down. president trump will speak on trade this morning. when it happens at 11 eastern, we will bring it to you. rest may not be good for a brain injury how does that work? rest not good for brain injury? how about that? doc seeing l next on that subject.

yeah we're still up over 200 point. 207 to be precise 26,665. we've got another all time high for microsoft yeah i own a thin sliver of it nicely higher. even facebook is joined in now, it is up to 5 it is up a buck. now we have the drug maker gilead going to sell cheaper versions of the hepatitis c drug. this is the drug sparked detect over pricing some time ago. doc siegel is with us now. so this means cheaper help c drug you should be pleased, right? >> extremely pleased. when we talk about the price here. these two drugs have -- they actually can cure hepatitis c and over 90% of cases they block protein up tick into the virus it has phenomenal stuff. these drugs have been out about

two years but when gilead came out with this one cost over 90 million for a course of treatment. now because of a new genetic type company they're making up, with a business model, they're charging 24,000 dollars can you imagine that drop in price that will save lives. so that -- cure for hepatitis c has come down to 24,000 that's basically the story. >> right. less than one-third of the prior price this is what fda has been talking about generic slightly change molecules that cost a lot less under a better business model without the hid opinion prices with ?urn companies gilead has done this not like the government said do this. no gilead said we're doing this. >> exactly right but the climate for it and absolutely gilead doing and climate for it. i have to say five. this because i'm intrelsed this rest may not be good for a brain injury. but get become to work as soon

as possible. is that true? >> yes. recent studies in humans have shown that having a little bit of rehabilitation, therapy with your eye, therapy with balance getting back to -- carefully monitored activities rather than bedrest after a concussion or head injury hugely helpful at recovery. new study you're talking about out of columbia is in mice. raise your hand if you've heard of the word whiskerring. so mice like we were fingers mice have whiskers they feel around so columbia studied whiskerring found if they got them going sooner after an injury their whiskers much more effective so that's their fingers. so -- >> if they laid there at rest in the study, they weren't working. and if they got them up and moving -- they were working like our fingers. are we ready to apply this -- you have head trauma and as possible and get back to work are we to stay that what's how

humans should do. it depends what your job is if you're a possible player you get become on the line and head gets shaken. but moderate activity after injury is looking like the way to go. plus medications plus rehabilitation. absolutely. good. well we have two items of good news do we with not? >> we're really happy today. >> have you seen the stock market there? [laughter] thank you, jeff. thank you very much indeed see you soon. all right, now two big events coming up, on this program today -- president trump gives a big news conference from the white house that is at 11:00 this morning and after a the speech on trade, he answer as questions from media you have to see that. and at 10:00 this morning, right here larry kudlow he talks trade and more. all of this two big events coming up here on "varney & company." this monday morning. ♪ i am an independent financial advisor.

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stuart: this is a big day. 10:00 on the east coast, 7:00 on the west coast. 30 minutes into the trading session and we are up. we're at a new high for the day. up 222 points. the market likes the trade deal with conditioned today. now president trump's going to address that trade deal and he will take questions at a top of the next hour. larry kudlow, the president's top economic advisor will be joining just moments from now. first breaking news and on the economy. this is a manufacturing indicator. what have we got? ashley: manufacturing coming in at 59.8. all that means to you, anything above 50 means expansion. that means this is the 24th month in a row, two straight years of expansion of the manufacturing sector in this country. a little shy what we were hoping for, certainly down from august. 61.3. 59.8 we're continuing to expand on the manufacturing sector. stuart: as the news was coming across we moved up a few more

points, certainly on the dow industrials. now we're 225 points. that strength in manufacturing clearly giving a shot in the arm this morning to market. the rally is the trade deal with canada. i want to bring in market watcher keith fitz-gerald. am i right this, rally, this monday morning is all about the trade deal with canada, right? >> absolutely, stuart. and here's the thing, they have got to play catch-up to get ahead of where the market is going. that is why traders are footing their foot on the gas here. a lot were caught short by president trump's policies. market is separated from that. the catch-up, coming in the end of the year. historically strong time of the year even in midterm elections. stuart: this is rally, it stays with us, we're going up even from here, correct? >> we could use a good pipe cleaning. we're long over due for that. we'll go sharply higher into the

tail end of this year? >> you want to put a number on that? >> still working out the math, stuart, i said at the beginning of the year, three five, maybe 7%. i will go out on a limb here. stuart: i'm trying to do the math. you mean another 7% from where we are now? >> no, i'm sorry, maximum extension of seven. probably 4 or 500 points. i'm still thinking 3100, 3200, somewhere in there. stuart: viewers will be delighted to to hear that, keith stay there, keith. will talk to you in a moment. now we're up 239 points. that is very close to a 1% gain. larry kudlow, national economic council director is with us now. larry welcome, back, always good to see you, sir. >> thank you, stu. appreciate it. stuart: the president played hard ball. did he beat up the canadians to win this one? >> i wouldn't say beat up.

sometimes hard ball works. he has been steadfast in his view. nafta had to be fixed. it is almost 25 years old. different economic and trading world. it needs to be updated, modernized, the whole thing. he stood strong. stuart: the president's objective with all of these negotiations is to increase trade, get more cross-border flows of goods and services. so, can you tell us, in what way this deal with canada increases trade between the two countries? how does it do it? >> you know, in a general sense, when you look at the market openings, for dairy farmers, wheat, manufacturing, automobiles and so forth, what you got here is a preservation and strengthening of the supply chains, which is what businesses were really worried about. that was the heart of nafta. tariff-free supply chains and i think not only has that been preserved, it has actually been

expanded. u.s. farm community and manufacturing community benefited. i think all three countries benefited from that. i would also say it sends an important message to china where we're trying to negotiate on trade. north america is together and the usa is moving with europe. we're making progress with europe and japan. so yes, all of these things are designed to lower barriers. tariff barriers, non-tariff barriers. subsidy barriers. state-owned enterprise barriers. all written into the nafta contract. stuart: now that you lined up canada, mexico, south korea, talking with japan, talking with the europeans, this is putting pressure on china. would you say a deal with china is imminent? >> i wouldn't say that i think there are discussions going on, but no, i wouldn't say it was imminent. i would say frankly as the president has said, he is not been satisfied with the progress of those talks, really hasn't

been much progress recently. he has admiration for president she and they may, may perhaps meet at the g20 in buenos aires later this year but, no, we're, nothing is imminent on china but we are willing to talk if it is substantial and significant and serious. always willing to talk. stuart: in the talks with china so far has president trump or the negotiating team made any concession of any kind, any kind of moving back, changing our position to be a little more accommodative? have we done that at all or is it hard ball, hard ball, hard ball all the way down the line? >> stuart, i don't think we're -- you know the conversations have not been sufficiently detailed for me to make a comment on that. it is not about concessions or a accommodations. at this point i'm not sure what it is. we made our asks on you know, market openings and tariff

productions and so forth on technology transfers and i.p. theft. we made our ask but we haven't had anything back. stuart: when it comes to the technology transfers and theft of our intellectual property, what are you asking china to do? >> there were a number of things but one of the key things, stu, is ownership. united states companies operating in china, instead of joint ventures were the chinese own the majority, we should own the majority. we should own all of it. that is are with the technology, the forced technology transfers occur. their board, they own the company. you have to put your blueprint on the table that is unacceptable. why should we give up our technological jewels, innovation and so forth. that ask has not been satisfied, not nearly as far as i know. stuart: okay. "new york times" paul krugman, he has got a new column, it is out today. the economic future isn't what it used to be. he says we're in the midst of the great shortfall. that economic growth isn't

nearly as strong as it should be after the great recession. your reaction to that, please, larry. >> he and his friends had eight years to work on it. didn't do so well. president trump comes in, mr. krugman automatically declares, what a permanent recession and bear market in stocks? i mean he is a never-trumper. that is putting it mildly. look, the state of our economy, is pretty darn good. i mean i think any objective, empirical view, when you take a look at jobs, unemployment, wages, you know, take-home pay, fatter paychecks, blue-collar jobs, business investment is booming for the first time in maybe nearly 20 years. after tax, after inflation income is rising. and the gdp numbers overall are rising. we're running better than 3%. you know, all of these things, they said it couldn't be done. that is really to me, the

biggest story of the year, stu, i have to tell you this. maybe you heard me say this before. reality is, we're in an economic boom that most people, especially our critics said would be impossible. if we, lower taxes for individuals, corporations and small business, rolling back regulations. energy freedom. it is working. stuart: you would agree, larry, surely, when you are expanding at a three to four% growth rate you shouldn't have a near one trillion dollar deficit? >> i think yes, look, i accept that. and we spend too much, but look, growth is going to bring that deficit down quite a bit. i mean the share of the deficit to gdp which is really the deficit burden, you wait, that is going to come down -- growth rate is coming up. real growth will be better than 3%. nominal growth from which revenues are derived is probably coming in 5 1/2%. those are big numbers.

more than any other single variable, those numbers bring the deficit down and bring the deficit burden down. would i stay with that. look, to mr. krugman and others, i respect them i suppose. the reality is, their forecasts have been wrong. they had their chance with big government regulating and taxing and spending. we've taken a different path. we're free enterprise. we reward success. that is what president trump has done. we are growing big time. they could, once in a while look at the data, stu and acknowledge, at least for the moment the united states is doing rather well and by the way good trade deals help us even more. stuart: it is highly unlikely that will be the lead story in "the new york times" tomorrow morning, sir, but nice try. hairy kudlow, always a pleasure, thank you for being with us, sir, appreciate it. >> appreciate it, stu.

stuart: back to the markets, big tech names, look at them go. facebook is a modest gain. all the other big techs are way up. amazon back above a trillion dollar valuation by the way. apple at 229, apple is a dow stock, one of the biggest gainers of all the dow stocks. google up and microsoft a new high, $115 a share. plus facebook facing a billion dollar fine from the europeans because of the data breach that left 50 million accounts exposed. nonetheless facebook is up. look at ge, top gainer in the dow, s&p. liz: kicked out of the dow. stuart: kicked out of the dow. they have a new ceo. the stock is at 12.73. big hour for you on "varney & company." check out this packed arena.

not for basketball, not for hockey, but for esports. it is a phenom. huge tournament this weekend in the barclays center at brooklyn. we'll talk to the guys that ran it. stuart: it is idiotic to put a shot clock on the fbi. i will talk to a former fbi assistant director. my question, why are we still listening to james comey? in less than an hour the president hold as news conference in the rose garden, all about trade. we'll take you there. second hour of "varney & company." it is rolling on big time. ♪ the

stuart: tesla stock at 308.

this is a 16% increase. elon musk settled his fraud charges with the sec. essentially the man got a slap on the wrist. come on back keith fisk. we held you over the break. this is as close to a win-win for tesla, as you can get but you still won't touch the stock, will you? >> no, absolutely not. they have a billion dollars in debt. they have a high conversion price and they have a ceo who is still out of control. the real thing that stinks about this, for investors, they settle, there is no disclosure, no depositions, the public never sees what is going on behind the door. i think tesla has got significant problems why i still won't get near the stock. stuart: supposing this week we come out to say, yeah, we're producing all the model 3s we thought we were going to produce, we're on target, we're meeting the schedule, would you change your mind? >> we heard that before. we have the t-shirt. i would have to see hard numbers and cars rolling off the line.

i would have most importantly to see the cash. if they don't hit the 359 conversion price, they don't individual. stuart: good stuff, keith. we'll see how it works out. esports as arrived can i put it like that. a tournament was held over the weekend at the barclays center, was sold out to watch video games. are you kidding me? keith levine, and keith sheldon, bse global programing executive vice president. long titles, essentially, craig, you're the esports guy, keith you're the barclays center guy, is that right? >> that's right. stuart: 10,000 people actually attended and paid money over the weekend? >> we had over 10,000 attend east over the course of the weekend. 15 million people watching live on line. stuart: 15 million? >> 15 million unique people

watching live over the internet digitally and distribution partners to see the best gamers playing counter strike. stuart: that is ratings i would die for. did the 10,000, pay to get? >> that was ticketed event. we worked to great great experience around the competition of the bowl of the arena and a fan fest through the concourse and providing a strong, unique weekend long experience for our attendees. stuart: the barclays center had a pretty good weekend, didn't isn't. >> we love the events. anytime you grow the pie in the live event space. getting 15 million unique viewers with all eyes on brooklyn and barclays center a phenomenal after effect for us. stuart: 15 million watched online. >> yes, sir. stuart: how does that compare to the world series. >> more young people and gen-z and millenials tune in for esports than traditional sporting events. more young people will tune into

the esports championships than the world series upcoming. stuart: how much did you charge people? >> prices range based on the experience. stuart: give me average? >> $100. stuart: wow. are you kidding me, got 10,000 people paying $100 a pop, to sit around watch other people play video games, in this case, "counter strike." >> it is an entire experience. you view the game but we create a festival bizarre atmosphere. stuart: bazaar atmosphere. >> activating partners and fans, giving fans and viewers unique experience inside the arena too. stuart: what was average age inside the barclays center? bet they didn't have anybody my age? >> if they were, they were probably doing a little bit of reporting. between 17 and 34 years old. parents are coming with their

kids as gaming as an entertainment platform is being passed on generationally. when you extrapolate where this is going, how disruptive it is to traditional sports and entertainment and changing media consumption habits of the generation why we're still so excited and it is still so early. stuart: do you think it will become a olympic sport? >> we worked with intel to put on an exhibition at the pongyang olympics. stuart: it is not a sport, craig? it is not a sport? >> who is to say. these guys compete really hard and train at highest level. harder to win one of these championships arguably than a participation sporting event. these guys are the best in the world what they do. millions of people appreciate, want to tune in to see, that is good enough for us. stuart: last one, keith sheldon, are you making barclays center home base are to the esports, i

don't know how to describe it, esports leagues no absolutely. we want to make barclays center aspirational for fans and guests of esports and leagues and content provide that's bring esports to different arenas. stuart: could be anywhere in america, anywhere in the world, couldn't you? >> great being in number one media market globally and epicenter in downtown brooklyn of youth culture. stuart: thanks very much for bringing this to our attention because it is something which i don't quite understand but i'm very eager to jump on board with, maybe make some money out of it, you never know. >> we'll see you next year. stuart: we'll we'll see. craig, keith, thank you. get to ge. ashley: makes good things come to life but not the stock. stuart: they have a new guy coming in. john flannery. he would have the role of ceo for a long time. he is out. the new guy is in. question, can the new guy save ge from the brink?

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stuart: general electric stock is up. pay attention to the big board. 250 point gain for the dow. ge up a buck 40. they have a new ceo. john flannery out. the new guy is in. kristina partsinevelos is here. what makes you think or anybody think that the new guy can save ge? >> they need somebody to do it. larry culp did it at another company, danaher. he was there 14 years. turned the company around. they hope a respected outsider, 55 years old can come into the

company to fix things. the stock has been plummeting for years. the company faced a lot of profit, shrinking margins. the power business is struggling, they're hoping to your question, larry culp, this new guy will come in. that is very unexpected change. the board had john flannery he was there not even a year. august, a little bit over a year. a year and two months. so the reason they moved so quickly they expected some movement. you had his turn around plan, john flannery said would focus on aviation and power. didn't convince investors. still the drop in profit that the company has been faced with. they thought clock is ticking we need to move quicker, let's put the new guy in. if you look at precedents. before flannery past 54 years they have only had four ceos. this is out of character. i have more bad news the company announced. the stock is up now. it could be a terri high, why? the company also said they will

put down a 23 billion-dollar non-cash charge for its struggling power business and they expect to fall short of their free cash flow. so we could have this conversation now. for all the people at home thinking i own g. stocks in my portfolio or pension plan, dividend, possible talk about dividends shrinking as well. a lot of bad news, except a new ceo. let's see. stuart: up a buck 40 now. we'll see how this works out. kristina. stuart: coming up i say the democrats are dug in deep when it comes to kavanaugh. they will never accept him on the supreme court. we'll see if jason chaffetz agrees with me. ♪ the day after chemo shouldn't mean going back to

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♪ liz: i was right for the first time ever. i have never been right. finally. stuart: bravo. liz: finally. stuart: i love it. liz: beatles are mostly irish, the beatles. totally screwed that one up. stuart: you got this right. this is high of the day or up very close, up 250 points for the dow industrials. big tech names all are up, except for facebook down 30 cents. amazon up $26. microsoft right there at $115 a share. you got to get to the kavanaugh nomination. i say the democrats will continue to trash him and destroy his family and undermine the nominating process. they have dug in deep and they can't retreat. that is my opinion. let's see if jason chaffetz,

former utah congressman and fox news contributor feels the same way. i say there is no retreat. they continue down this path. my question jason, is, what impact on the midterms would the democrats trashing a good man and destroying his family? >> well, i do i this that the democrats are overreaching. you see that now with jerry nadler. he is ranking member of the house judiciary committee. he is saying no matter what the fbi comes up with or doesn't come up with, they will go after him had. they're destroying a good man a good family. you know advice and consent said it, gets to dictate those rules. but they make a decision. for him to already say they're going to use the power of house judiciary committee issuing subpoenas and doing those types of things, i think will have reverberations that republicans better pay attention to. stuart: they will say he was indeed a heavy drinker when he with as teenager. he denied that under oath and therefore guilty of perjury.

that is the line of attack. >> that is so ridiculous. they will look at his had high school yearbook? i look at senator whitehouse looking at, calendar entries in a high school yearbooks. what is the definition of a heavy drinker? he said he would like to drink beer. he still drinks some beer and he drank some beer as a teenager. really? i mean i can't believe they think will go back to make that a winning argument in this country. so beneath congress to do that. it is absolutely wrong. stuart: what do you think will happen at the end of this week, when the fbi is supposed to have investigated the allegations? the democrats will surely say that was not a fair and impartial investigation. it was cut short by time. we have to extend. we have to delay. that is what they're going to say, right? >> that's right. all they wanted to do delay and defeat. that was always their go. they got it. they in part got it. judge kavanaugh is not justice kavanaugh and the supreme court

is starting to do their business. i think the decision to extend yet another week to a seventh investigation is absolutely, fundamentally is totally wrong. that is bad call. i still think he gets to the process. i think susan collins and senator murkowski. i think jeff flake is indicating he will be there. the question also becomes, heidi heitkamp, the senator from dakotas and from south dakota, north dakota, i'm sorry, joe manchin, whether or not he will come along. it comes down to those four people. stuart: your reading is he is confirmed on the supreme court? >> oh, yeah, i do. i think so. no corroborating evidence whatsoever. you had the professional prosecutor ask questions for the republicans. she issued a statement last night, sunday night saying there is no way that she would prosecute it. she pointed out the

inconsistencies in the testimony. i think there will be a lot of flailing this week. my guess is that ms. ford might file a complaint in maryland. there are all kinds of things they will try to throw because they're desperate. that is the heart of this. it is resistance movement. a scorched either philosophy. do anything, any means justifies the end as long as they try to defeat this person. that is their only goal. politics of personal destruction and it is disgusting. stuart: give you the last word on this, jason, in my opinion this leave as very bad taste in my mouth and you? >> i think so. i think the way that we have treated good people and good families is absolutely wrong. if somebodies that done something, great go after him, but this was a big huge overstep by the democrats and i think they will pay a political price. stuart: jason chaffetz, thanks very much for joining us today, sir. appreciate it. >> thanks, stuart. stuart: google can very much is

in the news recently. they're ceo, sundar pichai agreed to testify before congress next month. this is a big deal. this is really all about censoring conservative opinion as well as privacy. got that. douglas mcmillan with us, a reporter with "the wall street journal" and he has been following this google story for a long, long time. douglas, welcome to the program. >> thanks for having me. stuart: google denied suppressing conservative opinion. do you believe him? >> well this is a issue that goes to the core of google's business. the vast majority of their revenue comes from their search engine. it's a big problem if half or more of the country believes there is suppression of certain idealogical opinions in their search results. they need to maintain fair and unbalanced search results or at least perception of it in order to keep operating that business. the questioning and perception

of bias is a big deal that google is starting to react to. you're starting to see this with sundar pichai making a trip to washington to meet with lawmakers. stuart: is there any way a company like google could indeed be absolutely fair and straight down the middle when it comes to their algorithms and what we are supposed to read and not read? >> it is very difficult. this is a company that is creating an, an algorithm is not created by a computer, but created by humans at the end of the day. there is some influence, some effect of what those people who are creating algorithms believe can somehow affect the search results. however i think, you know at this point there is no kind of conclusive evidence their search results are biased towards one political ideology or another. i think it is more the perception of bias that google needs to go out to defend itself today. stuart: at the end of the day if

any regulation comes down the pike at google, what do you think that regulation will be? >> i think it is more likely there will be regulation than not and it is more of a question whether that regulation is going to nibble at the edges of their margins or whether this is going to fundamentally alter google's business model. it is looking very likely there will be some kind of privacy bipartisan move towards privacy legislation and google being the biggest online advertising company in the world and probably has more data about us than any company will feel effects of that legislation. there is momentum towards that. there is also starting to be calls towards potential antitrust action looking at the competitive laws around google and its market power which would potentially deal more devastating blow to google in the long run. so there is pretty big concerns for this company in washington, a young leader in sundar pichai, going out there to try to defend this company. how he manages washington will

be a big part of the story of this company in the next few years. stuart: so far the stock has not been negatively affected. it still keeps going up. douglas mcmillan, "wall street journal" guy. thanks for joining us. appreciate it. >> thanks a lot. stuart: facebook, also very much in the news these days. well they're facing a billion dollar fine over that big 50 million accounts data breach. 50 million is the right number. liz: that is not moving the stock. it is the right number. this is ireland's data protection watchdog saying hey, we may slap you with a maximum 1.63 billion fine. that is the fear on wall street. they have 40 billion in cash, equivalents, short term securities on balance sheet. 40 billion versus 1.6 is not a lot. there is no concrete proof users cared. are people breaking into user's bank accounts? are they ruining their airbnb or spotify log-ins because those are built on the facebook

log-ins. users don't seem to care. ashley: europeans want to replenish the old bank account. it is so vague. supposed to notify them, 48, 72 hours. they will nitpick, what safety measures you put in place? not good enough. two billion dollars or euros. it's a money grab and continues to be. stuart: a money grab? ashley: that is how the eu makes its money. stuart: very true. coming up at the top of the hour, president trump speaks on the trade deal with canada. that is propelling this market straight up. we will take questions as well. you never know what the president is going to say or what is going to happen. it is appointment television. make that appointment 11:00 this morning. watch this show. before we get there a former fbi assistant director responds to james comey blasting the one week deadline for the fbi probe into kavanaugh. that is next.

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know, the conversations have not been sufficiently detailed for me to make a comment on that. it is not about concessions or accomodations. at this point i'm not sure what it is. we made our asks on, you know, market openings and tariff reductions and so forth, on technology transfers and i.p. theft. we made our asks but we haven't had anything back. ♪

stuart: check the markets. we're up 249, 250 points, it is a rally. the big techs are all higher. some of them making very significant gains. microsoft is up a buck at 115. i believe that is a new high for that stock. yep. i own a small sliver of it. i will take a look now, you too, a couple of quotes from a new op-ed by james comey, you know the fbi guy. here is the first quote. it is idiotic to put a shot clock on the fbi. fbi agents no time has very little to do with memory. they know every married person remembers the wedding on wedding day, no matter how long ago.

significance drives memory. i guess he is trying to say there should be no time frame on the investigation, open-ended if you like, but they can do what they need to do. i think that is what he is saying. bill gavin with us, former assistant fbi director in new york. first of all, bill, why on earth are we listening to james comey in the first place? >> i suspect, stuart, because he simply wrote an article, op-ed piece. it is very difficult for me to listen to any comment made regarding the efficacy of, efficiency, effectiveness of the fbi from jim comey when somehow in the hillary rodham clinton email case he acted as the prosecutor, when he should have acted soulias the director of fbi, investigative agency. i think that is difficult. what he says, some of what he says is absolutely true. the fbi can complete that investigation to the best

possible at this particular point in time in a week. they will have all the resources they can possibly garner to do what needs to be done in this particular case. that is not to say, stuart, somewhere along toward the end of these interviews they're doing, some other questions might arise, that are going to take you outside of that one week frame. that is always a possibility. what fbi agents are so good at tag. they know how to pose questions. what is more significant, stuart, they know how to interpret the answer to draft the next question immediately to the person that they're interviewing. so i'm sure, that with, now interview of miss rivera and anybody else that comes on the screen as a result of that interview, there will be a lot of work to be done but they will put all their efforts they possibly canoe doing it. stuart: but the point is, they can do it in a week? >> well, they can do it.

of course the time frame depends on the volume, stuart, as we all know. if in fact, the, there is a limited scope on who has to be contacted, what has, how many people have to be contacted then of course they will, if it takes 1000 resources to do it, with analysts and support personnel and agents, they will get it done. as i say there is always something at the end of an interview or the last person to be interviewed on the last day might provide additional information that requires some additional investigation. that's all. stuart: but you don't expect the democrats to be satisfied? >> you know, i think bureau almost in this case is almost caught in the horns after dilemma. no matter what, one side will be happy, the other side will be unhappy, what is found during the course of this background investigation depends upon what's found and which side will be upset. stuart: really, can you investigate something that was

35, 36 years ago? you're not even sure of the precise location where the event was allegedly, where it allegedly took place. you don't know the right day. and you have no witnesses and there is no evidence from the scene of the alleged crime. how do you investigate something like that? >> most of that is true. but, take for instance, if somebody during the course of this week, with the fbi working on it, starting on friday last week, if in fact something, somebody remembers something that they didn't remember in prior interviews, but you're right, there is no forensic evidence. nobody ever filed a complaint, a sexual abuse report. all of those things are very difficult. some of them you may never arrive at a conclusion. but in interviewing people there might be some additional facts that pop up that can be worked with and resolved one way or the other. but it is difficult 35 years. this stuff about remembering the

weather on your wedding day, i'm hard-pressed to do that. stuart: that says it all, bill. bill gavin, thanks for joining us, sir. always obliged. >> my pleasure, stuart, thank you. stuart: check out the big board. we're holding on to a gain of 250 points. that is pretty much a 1% gain. big jump for stocks this monday morning. next hour, brit hume. i want to know if he agrees that democrats will never accept kavanaugh on the supreme court. i'm going to ask him. brit hume in the next hour. we're gearing up for the president's news conference at 11 this morning. on this program. ♪ your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank

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stuart: 26,700 on the dow. yes, folks, it is a rally. similar gains on the s&p and the nasdaq. stocks straight up this monday morning. at the top of the hour president trump is going to speak about the trade deal with canada. that's what's propelling the market higher. then he will take questions. this should be interesting. howard kurtz with us, host of "media buzz." howard he will make his

statement about trade but i suspect the media will then ask questions about kavanaugh. this is going to be explosive, isn't it? >> well i think a couple of kavanaugh questions will certainly get snuck in there, depending how long he goes. remember he had that 80 plus minute marathon news conference at the u.n. just about everything came up. but it is fascinating to me, i know you talked on this program about how the press often doesn't give president trump credit for economic developments. in this particular case i have got here lead story in the "washington post," canada joining mexico u.s. trade accord. "new york times" above the fold, says the deal represents a big win for president trump. so because this just happened. because of the last minute drama surrounding it, in this case the press giving him credit. will they be back to kavanaugh by the afternoon? that is possibility. stuart: shocked, shocked, deeply shocked journalism going on here. you're laughing, howard, i got to say i am surprised when "the new york times" says it is a win for president trump, put

the flags out, because that is a revelation i have not heard, lad. i can't remember a single occasion where an economic success has been put on the front page above the fold. it just doesn't happen. you know, they're going to get on to kavanaugh. i don't think, the first questions will be about canada or trade or the economy. it will be about kavanaugh. >> well i mean look, in fairness we'll see what happens at the news conference. the spectacle of brett kavanaugh, christine blasey ford, and fbi investigation utterly dominated the news. a story everyone in america, even people that are not political junkies are talking about but that doesn't let the press off the hook. one of the reasons the press doesn't understand this president, this is a perfect example, is that, you know, media take has been, well, he says all these nice things about kim jong-un, but making war with justin trudeau because the way that donald trump negotiates is what he did in business, he is

always threatening to walk away. always threatening to cancel an agreement. so he hated nafta. he got mexico to sign on to the new deal. last minute he got canada to sign on as well. so, all of the premature obituaries on trade turn out to be wrong because this is the way this president does business. stuart: i do hope that this press conference is similar to last wednesday's press conference at the united nations which went on for what 85 minutes or something like that? >> you're going to lose your 11:00 hour, stuart. stuart: i don't care. that is gripping television. ashley: television gold. stuart: i love it. howard, thanks for joining us. i'm out of time. i'm sure you will watch this along with the rest of us. >> good to see you, stuart. stuart: president trump moments away from the statement on trade. then the press conference. gripping tv. we'll take you there in a second

stuart: this is a win for president trump. america and canada have reached a trade deal. without going into great detail, they gave some, we gave some, so there is a new nafta and it's called the united states, mexico, canada agreement. got it. our president played hardball. he took a strong position. come to the table and make a deal, or you get hit with tariffs that will hurt you. plenty of people objected to the whole idea of tariffs but that was america's leverage. we used it and it worked. we have already seen a trade deal with mexico and a trade deal with south korea, outline of a deal with europe and talks with japan have begun. hard line trump, movement on trade, more trade. this is good. now it's on to china, the big one, and again, president trump is holding a firm line. he has the advantage. their economy is slowing, ours is booming. the deal maker in chief is doing what he said he would do, that is rearranging the world trading

order that he believes was out of whack. the man is on a trade deal roll. in a moment, the president of the united states, as the third hour of "varney & company" rolls on. stuart: look, it's going to start any moment, the presidential press conference and statement about trade with canada. blake burman is at the white house. he's going to take questions, blake. my betting is the first question is about kavanaugh, not trade. what say you? reporter: we'll see. if we get -- look, they are both two major issues that are i don't want to say hovering over the white house because that's the kavanaugh issue but as far as trade goes, it's a big win for the president and it's the big two issues of the day. what we are about to hear from president trump, i believe you will see a spiking of the political football, a celebration as this was indeed

the president saying he was going to do this. a lot of people said he couldn't renegotiate nafta, couldn't get a new deal and he's done just that. but i do not think you will see the president come out here and say well, canada lost or mexico lost and we were the big winners in all of this. the administration, in fact, senior administration officials we spoke with last night to larry kudlow, who you spoke with this morning to kudlow who spoke with us in the driveway after your interview are saying this is a win all the way around, for the u.s., for canada, for mexico. bottom line, it is a political win as well for the president, though there are still many questions over this white house at this hour as to what exactly happens with the supreme court nominee. questions we are led to believe we will get one. stuart: stay right there. i know you have to. charles payne is with me now. i'm calling this a big win for the president and i think a big win for america. you say what? >> a grand slam. it's a grand slam in the bottom

of the ninth, bases full. you got to win this thing. it is a huge win. i'm watching all morning long and toggling all the different stations. you think about all the hype going into the weekend, there's not going to be a deal, we are going to fall apart, just the anger, the anxiety, the nervousness. then this morning oh, yeah, we got a deal. no. this is absolutely amazing. it is a win/win for everyone involved. stuart: you are the kind of guy who does his homework. i know you read this stuff in detail and apply your brain to it. when you do that, are you convinced there will be actually more trade between the united states and canada, canada and the u.s. and u.s. and mexico, more trade from this? >> absolutely. let me give you -- let me go to my notes. on the de minimis part, if you sent $20 worth of goods to canada, in canadian dollars which is normally 15 bucks u.s., it was -- you had to have a tariff on it.

stuart: if i make something in america -- >> you were going to sell something on ebay or etsy to a canadian and it was more than $20, they would tax it. stuart: really? i didn't know that. >> it was crazy. ebay put out this report saying canada, you lost your mind. this is a couple years ago, by the way. we are talking about people in their homes, $800 versus $20 canada, those kind of small things that seem small help everyone. it's not just the dairy farmers, not just manufacturers, not just auto workers. it's someone with arts and crafts to make a few extra bucks. stuart: tell me about wages which in north america and mexico for car workers, because i think this new deal lays down the law on what they got. >> $16 an hour. you would think progressives and democrats would love this. it's interesting because when the people who, you know, the proponents of so-called free

trade, when they complain about president trump's efforts, what they have been saying particularly with china is don't just move the supply chain somewhere else. essentially what they're saying is big corporations will find cheap and/or slave labor in another country. the world is getting hip to that so they need to be careful about bragging about those kind of things because it will start to come back and backfire on them. stuart: the dow industrials up 272 points. we did get positive news on manufacturing but i'm inclined to say that that big gain is entirely, almost entirely the result of the canada trade deal. >> the market is speaking loudly and it's also, to your point, also remember, it's a forward-looking mechanism so saying that hey, we think president trump will also get a deal with china. a deal that will be a win/win for everyone but fair, if you ever want to use the term free, will be allowed to use it in a more sensible way once we get better terms. stuart: larry kudlow was on the show with us this morning at 10:00. i pressed him about china.

he mentioned no progress at all. he wasn't going to say anything about it. >> this morning, two manufacturing numbers came in for china, one that covered the big manufacturing areas. it was significantly lower than they thought. the other one was small manufacturing, the lowest number in many, many months, perhaps in a couple years. they are feeling a tremendous amount of pressure there. all of the tools that people say they have like lowering the currency would backfire on them tremendously. you can't be the world's reserve currency and play around with your currency, you can't keep all your billionaires to keep their money in if you keep devaluing it. they have some issues at home that stop them from using some of the game gimmicks they might have used five or ten years ago. stuart: hold on a second. do we still have blake burman with us? okay, there you are. blake, this is being held in the rose garden. reporter: right. stuart: as i understand it, that's the place where the big events take place.

just by holding it there, the president is raising the importance of the canada deal and the event that he's about to take part in. the rose garden is important, i'm saying. reporter: absolutely. one of the more significant spots on this campus. i would even say it's kind of the side of the white house, the southern portion, where the big events take place. you remember after tax reform when they brought many members up from capitol hill here to the white house, they did so on the south lawn a few months ago when it was gdp at 4% or 4.1%, whatever it was, it was on the south lawn. here we are just about, i don't know, 50 yards west into the rose garden and they have brought us in here. normally, i'm not sure normally, but many of the times when we are here in the rose garden and there's an event like this, it leads to questions, just sort of the way we are, the format, et cetera. no doubt about it, being in the rose garden, something this president loves to do. if there's an accomplishment, get out before the cameras, get a crowd, talk about it and celebrate it. stuart: okay. i just want to bring our audience up to speed on what we

are seeing for your money so far this morning. we opened up this monday morning at 9:30 and the dow went straight up. by 10:00, we got a gain of about 170 points, 180. now it's about ten minutes past 11:00 eastern time, 11:08 eastern time and we have a high of the day. now we are up 270 points. this really is all about the stock market's response to this trade deal. bear in mind, last week we heard that we've got a trade deal, free trade deal with south korea. then we heard that we have opened up bilateral talks with japan. then we heard we've got progress with the deal with canada. today we hear we have got a deal with canada. we have got a deal -- not a deal, but are talking positively with europe. what else you got? >> what's interesting, there are so many good things in this deal. labor unions can't fight it. it raises wages for car workers in mexico. there's also exchange rate

curves, in other words, countries in this deal can't weaken their currencies in trade fights. there's a dairy bargain. we didn't think canada would bend on the dairy issue, but they did, and canada wins the dispute resolution process. looks like a win/win all around. justin trudeau will say it's a victory for canada, too. stuart: charles payne is still with me. he raised something, i didn't know this, he talked about the de minimis. let me see if i have this right. under the current system before we did this deal, if i'm in america, i'm selling something on ebay, that is bought by a canadian in canada, my product goes up there to canada and if it's worth more than 20 canadian dollars, they slap a tariff on it. whereas if a canadian product comes down here, we don't slap a tariff on it until it reaches the value of $800. is that accurate? >> that's accurate. stuart: now what have we got? >> the new numbers, i think i

read 177. something comparable to america's. >> that's the lowest in the world. i think for the u.s. it was $800 but really, it's the lowest in the world. stuart: which means if you change that, everybody, it's not just the big companies, the big farmers, it's not. it's everybody who is buying and selling. >> it's interesting, because some organization, i don't know if they represented ebay, etsy, took out a big ad against president trump's negotiating tactics about a month ago. it will be interesting to see if they would like to have a second opinion about it. i think another point with the market that we should point out to people, bank of america merrill lynch do this big management, they check on these big-time managers around the world. they manage about $750 billion. in january they were bullish on equities at 55%. it dropped all the way down to less than 20% because they were afraid of tariffs. so they are so underexposed to equities that as we start

breaking out, they have to chase performance. they are in an awkward position. very awkward position. stuart: how many times have we sat around this table, said oh, trade troubles, market's down because of trade trouble, market's down because we might have tariffs with china. >> this is the point that many people miss. since the battle really began, march 22nd, then china announced retaliations on march 23rd, that was the low of the market, march 23rd. we have been in a stealth rally this whole time, this entire time the dow is up over 3,000 points, about 13%, 14% throughout all of this so-called fear. it wasn't that the markets were afraid. it was that the market mavens were afraid. >> the headlines would trump would lose a trade war. they escalated to a war. when it was just talks. it was talks. there was nothing on paper yet. so the media headlines were pushing this, too. stuart: bottom line, the more this goes on, the economy is

humming along. one of the estimates for s&p earnings in the third quarter, 19% up, that's remarkable. >> after the performance of the second quarter, when they were up over 20%. >> the first quarter, too. first quarter was the high water mark. stuart: now we are up 274 points as the market waits for president trump's statement on the canada trade deal and then takes questions from the audience -- from the media, who are assembled there in the rose garden. charles, i'm reading between the lines. i followed you for a long time. you think the market's going up from here. >> absolutely. absolutely. i think it's a so-called smartest guys and gals in the room who have to chase this performance and help push it up. i will say in july, they started to move more into u.s. equities but they were so flat-footed and they were afraid, they were worried about, you know, upsetting the apple cart. the baddest quotes serve wall street very well. they don't care how you get to the bottom line and bolster the margin, even if it is so-called cheap labor. trillions of dollars have been satisfied by the status quo.

they are okay with it. they were afraid and they are underinvested big time. they have to catch up. stuart: still the most hated of all time? >> it's the rodney dangerfield market. doesn't get any respect. >> it impacts individual investors. the american association for individual investors has neutral, 44% of us, not bullish or bearish. stuart: i want to bring in fox news senior political analyst brit hume. i want to make time for brit hume because he's an important guy and will comment on a very important upcoming event. we are told we are three minutes away from the president's press conference. i am hoping for another performance like we saw last wednesday, when the president answers rapid-fire a whole bunch of questions on a variety of subjects and changes the whole way we do presidential press conferences. you with me? >> well, it was certainly fascinating to watch. whatever you may think of president trump, his news conferences and even his rallies

are kind of fascinating because we have never seen anything like this before, and he seems to have something, some new way to approach everything every time we see him. for better or for worse, he's interesting. stuart: i believe that he will come out, i see the crowd applauding there, not sure who they are applauding for. it's not the president at this point. i think the president will come out and do a celebratory presentation on the trade deal, but the first question from the media will be about kavanaugh. am i right? >> that's probably true, although -- it's not guaranteed, i don't think, that he's going to take questions. he seems to like to do it and he seems, at the end of news conferences when the staff are saying thank you very much, meaning it's time to go, people still shout questions at him and he often chooses to answer them. we will see what happens. i think you're right, he's going to come out and have a lot to say about this trade deal. he will be telling us how wonderful it is and i must say this. i have to study in greater detail, looks like a great deal for american agriculture and for the american automobile industry

and the fact that it averts a trade war with two of our major trading partners is going to be viewed as i think it is now by the markets as a very good deal indeed. stuart: but it is a win for president trump, his style. he never wavered from the hard line. >> i think his insight into this has been in his eyes that the united states has enormous leverage in these trade relationships. we are such a big market and such an important market that countries can't afford to screw around with us. you are seeing with iran, for example, the imposition of sanctions, we are telling countries in europe and elsewhere you can trade with iran but if you do that, you can't trade with us. you will violate the sanctions, you can't trade with us. people have to choose between our giant economy and their tiny one, they choose the big one. i think that's in part what happened here with these two other countries and of course, the question arises will the same magic work, the same idea work with china. stuart: the president is doing this, is taking this hard line, is winning with this hard line,

because we are america in a very strong position. our economy is growing roughly 4% a year. china is beginning to slow down. we could exercise that power, we could be america first, because we have strength. that's where we are. >> i certainly think that's how the president looks at it. the intriguing question, of course, is whether whether the chinese look at this, remember they are not as responsive, that government is not as responsive to popular opinion as, for example, the government in this country or canada or even mexico. so if the chinese decide they are going to gut out a trade war with the united states even though they are losing more than we are in it, they might be able to do that in a way other countries can't. this remains to be seen how that will play out. that's huge, of course, but this i think is going to be a feather in his cap politically. stuart: i never had so much fun covering a president and i think you are exactly the same way.

am i right? >> never seen anything like it in my life. we have often said covering news in this white house is like drinking water out of a fire hose. it never stops and it's overwhelming. stuart: just a wonderful world. thank you very much indeed, sir. we are told the president is beginning his presentation, is literally just a few seconds away so let me set the scene. here's what we've got. you are looking at the assembled dignitaries of the administration gathered together in the rose garden. that's where very important events tend to take place, and this will be made into a very important event, because the president is going to detail and report on and trumpet his win in the canada trade deal. i don't think he will put it like that. as brit hume said, not going to see the president say the canadians lost and we won. he won't express it like that. he will say that everyone won, that we are going to get more trade, not less. it's not restricted. this agreement doesn't restrict

things, it opens it up. i think that's what the president is going to say. i don't know how long his opening presentation will be. just a few minutes, probably. then he will open it up to questions from the assembled media. i have to believe that the media will just immediately go to kavanaugh. >> you know what's really interesting, we were talking about this unexpected surprise of a trade deal on a monday morning. what was really striking about nafta which is no longer -- it's going to be named that, that name goes away, it hasn't been updated since 1994 and that predates the dot-com era and ebay, etsy, all the internet companies that faced all that red tape of if you sold $20 of goods into canada you were hit with a tax. the bureaucracy that was built around the old nafta deal is not, is not adequate for today's new world and it really needed updating. that's what was going on. stuart: ladies and gentlemen, the president of the united states emerging there from the

white house, walking towards the podium. this will be a statement followed by a news conference. let's listen to the president of the united states of america. >> thank you. thank you very much. please sit down. it's really great to see everybody on this beautiful, beautiful day in washington, d.c. some people say the swamp but i will not say that today. i refuse. this is too important, what we're doing, one of the most important deals, and the most important trade deal we have ever made by far. i want to thank senator joni ernst for being here. thank you very much. of iowa. i will be there very soon. we will be doing something very important in iowa. but this is maybe more important than all of it put together, right? i want to thank you for being here. congressman holding, congressman

rowe, congressman newhouse and congressman meadows, thank you all for being here. we very much appreciate it. you have been very instrumental. thank you. i'm thrilled to speak to the american people to share truly historic news for our nation and indeed, for the world. i want to thank vice president pence for joining us this morning. it's my great honor to announce that we have successfully completed negotiations on a brand new deal to terminate and replace nafta, and the nafta trade agreements with an incredible new u.s./mexico/canada agreement called u.s.mca. usmca. that will be the name i guess

that 99% of the time we will be hearing. usmca. has a good ring to it. i have long contended that nafta was perhaps the worst trade deal ever made. since nafta's adoption, the united states racked up trade deficits totalling more than $2 trillion and it's a much higher number than that. with canada and mexico, it lost vast amounts of money and lost 4.1 million manufacturing jobs and one in four auto jobs, about 25% of our auto jobs, even more than that. throughout the campaign, i promised to renegotiate nafta and today, we have kept that promise. but for 25 years as a civilian, as a businessman i used to say how could anybody have signed a deal like nafta and i watched new england and so many other places where i was just the factories were leaving, the jobs were leaving, people were being

fired, and we can't have that. so we have negotiated this new agreement based on the principle of fairness and reciprocity. to me it's the most important word in trade, because we have been treated so unfairly by so many nations all over the world. we are changing that. just signed a much better deal with south korea, we had a horrible, horrible deal and we just signed at united nations and that's worked out well and they're happy, we're happy. good for jobs, good for a lot of things. when that deal was signed they said 250,000 jobs. will be given by signing this transaction. they were right. i have said it before, they were right. 250,000 jobs to south korea, not to the united states. so that's changed and very much for the better. this one is a brand new deal. the agreement will govern nearly $1.2 trillion in trade which makes it the biggest trade deal in the united states history.

i want to congratulate u.s. trade representative bob lighthizer, who has worked -- nobody understands how hard he's worked. [ applause ] no matter when you called him, he was in the office or he was in somebody else's office doing the same thing. bob lighthizer's great. i have heard it for years, i said if i ever do this, i want to get lighthizer to represent us because he felt the way i did. and the entire team at the ustr standing behind me, and some right here in the audience, i want to thank you all. fantastic job. peter navarro, everybody. thank you all. fantastic group of people. they love our country. i also want to thank secretary mnuchin, secretary ross, secretary nielsen, secretary

purdue, jared kushner, peter navarro and the united states ambassador to canada, kelly kraft. thank you, kelly. i also want to thank president pena-nieto of mexico who we had a few disagreements but i really like him a lot. i think he may like me, i'm not sure. but i think he's a terrific person and he will be leaving soon but he's really done a good job. wonderful, wonderful person. and the mexican president-elect, who has given his support to this agreement and we are developing a really good relationship which i think is very important for our country, frankly, and for mexico, and so they worked together on this. this was done by both. i said look, i don't want to sign an agreement and then a new president comes in, they don't like it and we have difficulty. they worked very much together

on it and i appreciate it from both. i have to certainly give my highest regards to prime minister of canada, justin trudeau. lot of stories came out about justin and i having difficulty togeth together. we did over the trade deal but i'll tell you, it's turned out to be a very, very good deal for both and a very, very good deal for all three. it puts us in a position that we have never been in before. it's very good when you look at the world and what the world is doing and when you look at the unfair trade practices, that countries are using against the united states, this is a terrific deal for all of us. once approved by congress, this new deal will be the most modern, up to date and balanced trade agreement in the history of our country. with the most advanced protections for workers ever developed. if you look at the reviews, people that would normally not

under any circumstances say good things, because automatically they have to say bad, even some democrats say that's amazing. we had some -- they haven't been given the sound bites yet, i guess, but actually you had some democrats say this is really amazing if he really got all of that. but by tomorrow, i would suspect they will change their tune but that's okay, because people know how good it is. it's an amazing deal for a lot of people. likewise, it will be the most advanced trade deal in the world with ambitious provisions on the digital economy, patents, very important, financial services and other areas where the united states has a strong competitive advantage. mexico and canada have agreed to strong new labor protections, environmental protections and new protections for intellectual property. so important. this new deal is an especially

great victory for our farmers. our farmers have gone through a lot over the last 15 years. they have been taken advantage of by everybody. prices have gone way down and we are working on some other deals that are going to make them very happy also, but this is a very, very big deal for our farmers. mexico and canada will be opened up a lot more than they are now, and i think there will be a better spirit between the three countries which is important for our farmers. the agreement will give our farmers and ranchers far greater access to sell american-grown produce in mexico and in canada. the deal includes a substantial increase in our farmers' opportunities to export american wheat, poultry, eggs and dairy, including milk, butter, cheese, yogurt and ice cream, to name a few. i want to be very specific. i want to be very specific. right?

and many other products, but those products were not really being treated fairly as far as those that worked so hard to produce them, and now they are going to be treated fairly. these measures will support many hundreds of thousands of american jobs. this is also a historic win for american manufacturers and american auto workers, who have been treated so badly. we have lost so many jobs over the years under nafta. under the current new deal, and if you look at the current nafta deal, the new deal is taking care of all of these problems because nafta, foreign companies have been allowed to manufacture many of their parts overseas, ship them to mexico and canada for assembly, and send their foreign-made cars into the united states with no tax. so we let all our people go, we fire everybody, they make cars,

they make products, they make everything, in another country, they send them into the united states, no tax. and the cost, there's very little difference. sometimes it's more for those people that like to talk about cost. with this agreement, we are closing all of these terrible loopholes, they are closed, they're gone. they were a disaster. for example, we are requiring a large portion of every car to be made by high wage workers which will greatly reduce foreign outsourcing which was a tremendous problem. that means more auto parts and automobiles will be manufactured inside the united states. we will be manufacturing many more cars. and our companies won't be leaving the united states, firing their workers and building their cars elsewhere. there's no longer that incentive. before the nafta deal, they had that incentive. they have the opposite incentive now. we're not going to be losing our companies. that was to me the most

important thing. i don't want to see our companies leave and fire our workers and our workers never get jobs to replace those jobs. those days are over. this deal will also impose new standards requiring at least 75% of every automobile to be made in north america in order to qualify for the privilege of free access to our markets and that's what it is. it's a privilege. we don't take it as a privilege. we don't take it as a privilege. it's a privilege for them to do business with us. i'm not talking about mexico -- i'm talking about everybody. everybody. it's a privilege for china to do business with us. it's a privilege for the european union, who has treated us very badly, but that's coming along, to do business with us. japan, every country, it's a privilege for them to come in and attack the piggy bank.

this will have a result of much more happening right here in the united states. it means more than anything else, far more american jobs and these are high quality jobs. there are also strong provisions to enforce what's called the rules of origin requirements. this will incentivize billions of dollars in new purchases of u.s.-made automobiles. once approved, this will be a new dawn for the american auto industry and for the american auto worker. they will see. they understand. they voted for us in large numbers, even though their leadership always goes democrat. couple of them said to me i don't know how i can do it again. many of them, the leaders would back democrats and would tell me you are going to get most of the votes from union workers and we got most of the votes from workers, period. but the american auto worker was

very much behind what we were doing, as one primary aspect. it will transform north america back into a manufacturing powerhouse. if you remember the previous administration said we're not going to have manufacturing jobs anymore, essentially. we're not going to make things anymore? no. just the opposite. going to be a manufacturing powerhouse and allow us to reclaim a supply chain that has been offshored to the world because of unfair trade issues. we also provide brand new intellectual property protections for biologic drugs which will make north america a haven for medical innovation and development. we want our drugs to be made here. when you talk prescription drugs, we don't like getting them from foreign countries. we don't know what's happening with those drugs, how they are being made. too important. this landmark agreement will send cash and jobs pouring into

the united states and into north america. good for canada, good for mexico, instead of jobs leaving for overseas, they will be returning back home and we have already had it. we have many, many car companies, i was with prime minister abe of japan, he said we have sent many car companies to the united states over the last year and a half. it's true, big expansions. and very importantly, he said many more are coming. because they have an incentive now to be here. people want to be back in the united states again. as i say, the united states is respected again but it's also respected as to trade and industry. this is a truly extraordinary agreement for the united states, canada and mexico. president pena-nieto, it's so important that the president and i have developed this sort of a bond, a bond on trade.

pena-nieto, a man who has done a very good job for mexico in terms of trade, and prime minister trudeau, who i just spoke to, just spoke to both of them a little while ago, they love their countries. they want to do right for their countries and that's what they've done. and we, if you look at this agreement, we formed a great partnership with mexico and with canada. and i plan to sign the agreement by the end of november. by then we will submit it for approval to congress, where in theory, there should be no trouble but anything you submit to congress is trouble. no matter what. the single greatest agreement ever signed, they will say well, you know, trump likes it, therefore we're not going to approve it because that would be good for the republicans so therefore, we can't approve it. but it will be sent to congress pursuant to the trade promotion authority act. this agreement follows on the heels of our successful

completion of a new and balanced trade deal with south korea. tremendous difference in that deal from what it was. it was a disaster, as i said. to improve the old deal that had killed so many jobs, it also follows on our announcement last week of a new trade negotiation with japan. japan would never negotiate with the united states. they said they won't negotiate. they told the previous administration we're not going to negotiate. i said you don't have to negotiate but we are going to put a very, very substantial tax on your car if you don't. by the way, without tariffs, we wouldn't be talking about a deal. just for those babies out there that keep talking about tariffs. that includes congress. oh, please don't charge tariffs. without tariffs, you wouldn't be here. we wouldn't be standing here, i can tell you. bob and all of these folks would not be standing here right now and we are totally prepared to do that if they don't negotiate, but japan is wanting to negotiate. actually, they called about

three weeks ago and he's a terrific man, terrific, just had a tremendous victory, and they said we would like to start negotiations immediately. india, which is the tariff king, they called us, they say we want to start negotiations immediately. when bob lighthizer said what happened, he would never do this, they said no, we want to keep your president happy. isn't that nice? that's true. they have to keep us happy because they understand that we are wise to what's been happening. india charges tariffs of 100% and then if we want to put a tariff of 25% on, people will call from congress but that's not free trade. i would look back to people and say where did these people come from, where did they come from. so because of the power of tariffs and the power that we have with tariffs, we in many cases won't even have to use them.

that's how powerful they are and how good they are. but in many cases we're not going to have to use them. in many cases, countries that are charging massive tariffs are eliminating those tariffs. as you know, we have $250 billion at 25% interest with china right now and we could go $267 billion more, and china wants to talk very badly. and i said frankly, it's too early to talk. can't talk now, because they're not ready, because they have been ripping us for so many years, it doesn't happen that quickly. if politically people force it too quickly, you're not going to make the right deal for our workers and for our country. but china wants to talk and we want to talk to them. we want them to help us with north korea. we want them to continue to help us with north korea. that's very important. the european union has been very tough on the united states. last year and for many years,

they have lost in the vicinity of $150 billion a year. they have massive trade barriers. and they didn't want to come. they didn't want to talk. jean-claude, great businessperson, head of the european union, jean-claude, my friend. i say jean-claude, we want to make a deal. he goes no, no, no, we are very happy. i said you may be happy but i'm not happy, because we have one of the worst deals of any group. we have one of the worst deals with the european union. and they just didn't want to come because they were happy with the deal. i said but we're not happy with the deal. finally, after you know, going through a whole process, i said look, we're just going to put a tax of 20% on all of the millions of mercedes and bmws, all of the cars, millions and millions of cars that they sell here that they won't take over there. farm product that they won't take over there because there are barriers, you can't sell, you're not allowed to. our farmers are not allowed to

sell over there many of their products, much of their products, most of them. so i announced that we are going to put a 20% tariff, could be 25% on their cars, coming in, and they immediately called and said we would like to start negotiations and we are having a successful negotiation. we will see what happens. who knows. i always say who knows. but we'll see. i have a feeling we will be successful. a pillar of national security is economic security and trade. national security is not where we lose hundreds of billions of dollars a year. over the last five years, we have averaged $800 billion a year loss on trade. how dumb is that? $800 billion. this group doesn't know about those numbers. i don't even want them to hear those numbers. but the united states in its trade deals has lost on average almost $800 billion a year. that's dealing with china, dealing with european union,

with everybody, with japan, mexico, canada, everybody. and we're not going to allow that to happen. we have to have a strong manufacturing base and manufacturing sector. we need a thriving economy. those are all really essential ingredients to national security. we can't allow what's been happening over the last 25 years to happen. we are building our military like never before. it will be the strongest it ever was. all of those jets that are made and rockets and missiles and ships, they are all being made in the united states, jobs. our economy is booming like never before. jobless claims are at a 50-year low. the stock market is at a all-time high. think of that. over 50% since my election.

50%. people, the 401(k)s, they have 401(k)s and they were dying with them for years. now they're so happy. i was telling the story i often tell of a policeman in new york came up, his wife was always very upset with him as an investor, because he wasn't doing well with the 401(k)s. now she thinks he's a genius because the numbers are so crazy. but we're up over 50% since the election. and you heard me say this many times but african-american unemployment, asian unemployment, hispanic unemployment, is at record lows in history. not, you know, for the last two years. the history of our country, african-american, asian, hispanic. young people without high school diplomas, all at historic, that's a very important sector,

all at historic lows. the lowest in history. it's really something that's great. this is helping so much with people to get out of prison. we have a tremendous problem. people come out of prison, they can't get a job. employers don't want to hire them. the economy is so good, they are hiring them and they are turning out to be incredible workers. they are given a chance, they are really given a second, given a third chance in some cases, but i have had numerous employers come up, say i'll tell you what, i have taken people that were in prison and we have hired them. he wouldn't have done this in a normal economy or a bad economy. only in this kind of an economy. now he's like the biggest fan. one man in particular has taken numerous people. he said most of them have been unbelievable, you can ask, but most of them have been unbelievable. that's a great thing. that's a really great thing. it gives them a chance. so before we take questions, i want to extend our warmest

condolences to the country of indonesia. friend of mine, we are going to be calling up the leader who is a great leader indeed, but they got hit by a giant tsunami, like people have not seen, this part of the world hasn't seen it so much fortunately. they say that's the worst of all. you look at the tornadoes, the hurricanes, you look at all of the different natural disasters, friend of mine who studies natural disasters, i don't know why he does that, but he does, he says that tsunami is the worst of all. they got hit very hard and probably thousands of people killed. we have already sent a lot of first responders and military and others to help, but it's a really bad, bad situation, and finally, before closing, i want to send our thoughts and prayers to the victims of the las vegas

shooting. that was a horrible, horrible time in the life of our country. took place exactly one year ago today. all of america is grieving for the lives lost and for the families they left behind. so to all of those families and to the people of las vegas, we love you, we are with you, we are working with you very hard. it was a terrible, terrible event. so thank you very much for that. i want to ask bob lighthizer, who is just a terrific individual as well as a man that knows a lot about this subject, to come up and say a word about the usmca, the new agreement, and if you have any questions, we will take some questions after that, please. bob? [ applause ]

>> thank you, mr. president. before i start, i would just like to -- i think it says something about working for the president. august 15th of last year we started this process and i'm at a hotel in washington, there's like, you know, hundreds and hundreds of people waiting to have the introduction of myself and my two counterparts, one from canada, one from the united states. and i get a call that says the president wants to talk to you so i go in a little anteroom and have the cell phone, he starts talking, everyone is waiting and he's talking, going through what he wants to get done with nafta and his problems with it, all of it he's quite familiar with. then he finally says two things which i thought were telling. one, he said bob, i will back you up like no other ustr has been backed up in history. then the second thing, he did that, by the way, and the second thing he said was, he said now go out there and have fun. i thought well, it's probably

not going to be as much fun from my side as it will be from your side but i'm proud to be on your team, and i'm really proud to have followed you through this and the other trade changes. as you have said, mr. president, this agreement is historic in many ways. the usmca will cover $1.2 trillion, easily making it the biggest agreement in history. we have done this in 14 months and believe me, in trade negotiating terms, that's like warp speed. when we began these negotiations last year, the president's instructions to me were precise and straightforward. protect american workers, fight for our farmers and ranchers, preserve america's competitive innovation edge, secure greater access for our businesses and above all, bring back jobs to america. i think we have succeeded with this agreement. the usmca will accelerate the

manufacturing renaissance our country has enjoyed under president trump. it will bring our trading relationship with mexico and canada into the 21st century, and it will protect america's competitive edge in digital and innovation across the economy. the new agreement will also serve as a template for our trade agreements under the trump administration in the future. this paradigm-shifting model rests on three pillars. the first pillar is fairness. we have negotiated stronger roles of origin for automobiles which will bring billions of dollars of manufacturing back to america. we have secured greater market access for our farmers and ranchers. we have agreed to unprecedented labor standards that will help level the playing field for our workers. we have also agreed to a first

of its kind review and termination provision, which will ensure that the usmca, unlike nafta, will not become unbalanced and out of date. the second pillar will consist of a host of ambitious provisions on digital trade, intellectual property, services including financial services designed to protect our competitive edge. the third pillar consists of new provisions designed to eliminate unfair trade practices, including strong new disciplines on state-owned enterprises, on currency manipulation, relations with non-market economies and much, much more. we wouldn't be here today if it were not for several people who contributed so much to this endeavor. first, the president's key adviser and my good friend, jared kushner, was my partner in leading the u.s. negotiating team. i've said before and i will say

again, this agreement would not have happened if it wasn't for jared. so thank you very much. i would like to thank my counterparts, the secretary and minister freeland as well as many mexican and canadian government officials including the secretary, the ambassador, jerry and katie and so many more. i would also like to thank the wonderful staff at ustr, many of whom who are on here. i like to think of us a little bit like we were the marine corps. ustr is about 250 people and they are all devoted and they are all exceptional and they all work around the clock. many of the people you are looking at spent more than one night in the office over the course of the last few weeks, and they have enormous ability and this president has unleashed them. finally, i would like to thank president trump.

your leadership, vision and grit made this agreement possible. no other person could have done it. millions of americans will benefit for years to come because of this vision and probably even more important, this grit. thank you, sir. >> thank you very much. thank you. thank you very much, bob. thank you very much. some questions? yes. steve? question? reporter: thank you, sir. you have had tensions with prime minister trudeau. how did that affect your ability to get this deal done? >> i don't think it did. he's a professional, i'm a professional. we had very strong tensions. it was just an unfair deal, whether it was mexico or canada, and now it's a fair deal for everybody. it's a much different deal. it's a brand new deal.

it's not nafta redone. it's a brand new deal. i just spoke with him, we have a great relationship, able to work as a partner. don't forget, the rest of the world is looking to take advantage of us, and as a region, you might say, and we are going to work very closely together with canada and with mexico, because we will be able to compete with anybody. we have things that nobody else has. we have energy that nobody else has. we have timber that nobody else has. we have things that no other part of the world has to the extent that we have. so we are going to do very well together. i think we have -- there was a lot of tension, i will say, between he and i, i think more specifically, and it's all worked out. you know when it ended? about 12:00 last night. but he's a good man. he's done a good job and he loves the people of canada. reporter: you mentioned the $267 billion in possible mortar ie ts on china. what does china need to do to

avoid that? >> we will see what happens with china. we have lost $375 billion in trade deficits. they have a surplus of $375 billion with a "b" with the united states. it's been that way for years and years and years. i always say we rebuilt china. they took that money and they built fighter jets and they built bridges, they built more bridges than we built in the last hundred years, probably, big ones like the george washington bridge, like big bridges, and i'm not going to take, you know, look, i don't blame china. i blame our leadership. they should have never let that happen. i told that to president xi. i said you know, i was making a speech in china and i was really hitting china hard and i'm in china, i don't know if that's a good thing to do, but i looked at him, i said you know, i don't really blame you. i blame our leadership for allowing this to happen. he knew exactly what i meant. we had no deal with china. i asked one of the top people in

china, a representative at the highest level, came to the oval office, i said let me ask you how did this ever happen. he's a pro so he understands. he doesn't have to be cute. he said nobody ever did anything from the united states. when we put on a 25% tariff on every car that comes from the united states into china, we thought we would be rebuked. we thought it would be terrible. nobody ever called. nobody did anything. that was years ago. and we charged them nothing. 2.5 but we don't collect it. we do now, by the way. but we don't collect the 2.5. so they charged 25, we charged essentially nothing. but i said how did that happen? he said nobody ever called. we don't have a deal with china. there's no deal. they do whatever they want. so we have a tremendous problem with theft of intellectual property with china. we have a lot of other problems with china.

we have primarily trade problems. and as you know, they are having a much more difficult time now. i don't want them to have a difficult time. and we are doing better than we have ever done. everybody talked about the tariffs, oh, the tariffs, tariffs. you know, tariffs ended in 1913 and they then went to a different system in 1918, totally unrelated, and then in 1928, you had the great depression. for a lot of different reasons, not necessarily our country's fault but a little bit our country's fault. then in the 1930s, they said we had better start charging some tariffs, we need money to come into our country again. okay. so i'm not advocating tariffs. i will tell you this, our steel industry will grow stronger than it's been in 25 years. just taken six months, because i charged for the dumpers. they were dumping steel and dumping aluminum into our country.

i charged 25%. that's a lot. could be more. but that's a lot. and if you look at u.s. steel, newcore just announced a billion dollar plant, brand new. already started construction. u.s. steel is building eight or nine plants. they are expanding plants. i don't think there's any industry like what's happened to steel in the last nine months, ten months since i really started doing what i'm doing. it's been really pretty amazing. aluminum also. and we need steel. we need steel for defense. what are we going to do, go and say we will get our steel from like another country? can't do that. we can't do that. so we need steel and we need it badly for defense. i'm very proud of what's happened with the steel industry. okay, question? yeah, go ahead. she's shocked that i picked her. a state of shock.

that's okay. i know you're not thinking. you never do. no, go ahead. reporter: in a tweet this weekend, mr. president, you said it's incorrect to say you are limiting the scope of the fbi investigation. >> what does that have to do with trade? i don't mind answering the question but you know, i would like to do the trade question. reporter: it has to do with the other headline in the news, the kavanaugh accusation. >> how about we talk about trade and we will do that a little bit later? anybody have a trade deal? reporter: you think your trade deal with pass through congress? >> i think so. if it doesn't we have lots of other alternatives but i think so. if they're fair, which is a big question, if it's fair on both sides, the republicans love it. industry loves it. our country loves it. if it's fair, it will pass. i think it will pass easily, really easily, because it's a great deal. nafta passed, it's one of the worst deals i have ever seen. inconceivable that it was made. fair question. any other? reporter: i would like to go forward with my kavanaugh question. >> let's do that later. i will call you a second time. go ahead, please.

thank you very much. reporter: thank you, mr. president. you have described india -- >> india charges us tremendous tariffs. when we send harley davidsons, motorcycles, other things to india, they charge very, very high tariffs. i have spoken to prime minister modi and he will reduce them very substantially. nobody ever spoke to these people. he said nobody ever spoke to me. in other words, we have had leaders here, i'm not, you know, trying to be overly dramatic, we have had presidents of the united states and trade representatives, they never spoke to india. brazil is another one. that's a . if you ask some of the companies, they say brazil is among the toughest, maybe the toughest. we don't call them, hey, you're treating our companies unfairly. you're treating our country unfairly. india is very, very -- they charge tremendously high

tariffs. on motorcycles it was 100%. so you send a motorcycle into india, there is 100% tariff. now that is so high like a barrier. in other words, who is going to buy it? costs you so much. they reduced that substantially but it is still too high. my relationship with india is great, with prime minister modi is great. they called us to make a deal. we dent ion call them. they called us to make a deal. which is like shocking to people. yes, sir, go ahead. yes. reporter: i don't -- there we go, i do have a second question on on kavanaugh thing. >> let's go? >> you take that now. >> no. question on trade. >> on trade, does this mean the end of tariffs if you spell that out to canada? do you think it will pass? >> no, the steel is staying where it is and aluminum, but it means we probably for the most

part won't be having to use tariffs unless we're able to make deal with the country. if we can't make a deal with the european union we will respectfully put tariffs on the cars. the united states will take in billions and billions of dollars into its coffers. isn't that nice? you don't hear that. >> only from carl sagen. >> yeah from, sagen. billions and billions of dollars. they make the cars in the united states, they don't pay the 25 or 20% tax. >> can you -- >> i don't think you use the tariffs too often. there will be cases where countries are absolutely not willing to do what's fair and reciprocal and if that case they will pay tariffs. you know what? the united states will do very well. either way we will do well. reporter: do you think it will pass in canada, mexico, more importantly here in the united states? >> i don't know. all i can tell you we made a deal. highly respected presidents and

in the case of canada the prime minister are satisfied with the deal. they are good for canada, mexico. good for all three. this is good for all three. that is good. just that fact makes it good for us. this is good for all three. this is a much different deal than nafta. this is much more of a reciprocal deal for the united states which is really good. yeah, go ahead, peter. reporter: are you okay on kavanaugh briefly? >> no. we'll do the kavanaugh questions. i mean, you talk about being treated harshly. we'll do that in a couple, let's finish up trade, a lot of people want to run over to the "wall street journal" and start writing. [inaudible] >> i can't hear you is it. >> mexican journalist? >> go ahead, sure. reporter: you keep the tariffs on steel and aluminum and mexico and canada -- >> until such time we can do something different like quotas,