should say great things about the economy. >> kanye west at the white house, i'm loving every minute of it. i'm a big believer of his criminal justice reform. >> president trump, kanye west, disruptors both. enjoy. maria: let it go for it "varney & co." begins right now. charles payne is in for stuart this morning. charles: we have big stories coming in the market, stocks looking like i'll open lower this morning and interest rates continue to rise as you do but again we want to look at the bigger picture. small business optimism continues to soar. tensions rising between the united states and china, a rare public back between mike pompeo and chinese counterpart, it got ugly. the chinese blamed the us for the trigger. google having a rough 24 hours, a rough 24 days. first they announced google plus user data has been exposed and

no one told anyone about it. in fact, the issue has been around for a while and they sat on it but then google made things worse. they pulled their bid to compete for the big pentagon contract, 10 billion-dollar cloud cover for google working with the pentagon is not in line with the company's principal. a lot of people outraged about that one. major hurricane bearing down florence gulf coast and a real big show for you. "varney & co." start right now ♪ ♪. charles: florida panhandle racing for hurricane michael. >> is a category two storm as it moves across the warm waters of the gulf of mexico. looks like it will hit panama city or even 50 miles either side of panama city. it's the right front quadrant. we get to know the stuff with

hurricanes and we been reporting on them so much. areas are exposed. the part of the country that is low-lying and we could have a storm surge of six-nine, may be up to 12 feet and that will do damage and not to mention the winds. they'll be well about 100 miles an hour. when will it hit? probably sometime, best estimate, sometime after noon tomorrow. it could slow down but once it moves on shore it will move quickly to southern georgia and out through the carolinas, 12 inches of rain, power outages expected, long-term power outages and this is a big storm. charles: florida and alabama to connect. >> correct. they been told to get out because if you stay and you are in trouble will not be able to help you. charles: was moved to our money. the spring and michelle mckinnon, interest rates moving higher. stocks will be lower. will this be the scenario for a while? >> yeah, i would say it's short-term but stocks and bonds

do not move the same way and it reminds me of when i first got into the business and it happened and i panicked and i said stocks and bonds move separately. it's unusual and if stocks fall further here, bonds will start to rally. charles: as stocks fall further, okay, at some point the yield continued to go up the pressure in certain parts of the market and what is interesting is those parts, utilities and real estate, were higher. were getting the odd mixed messages and it is fear in and of itself, february as we approach the present in the market cratered and again its cratering, the point to, 3.3, 3.4 these are relatively low numbers. why is market panicking in the first place? >> because of uncertainty and unknown reasons. they move unpredictably. to your point of 3.2% is not

that high. averages 6% over the past 50 years but we think about the .2% it's not that big of a deal and if anything i would be more worried if the tenure cap sitting at 2.4. that would mean with a flat in yield curve and an inverse of the yield curve. charles: so the place and are assigned which is a lot worse - >> yes, inflation is healthy. we want inflation. charles: we love one paychex template. let's ask about small business optimism because it we have a new report that the september index, their highest in the 45 year history, jobs component is phenomenal at an all-time high with respect to the compensation wages in conversation going on. what does it mean for the economy and stock market. >> for small business optimism that is in texas news. i don't think it's getting enough coverage. small businesses make up 60% of all new jobs in country and that is huge. was also part of the job number is the lowest paid americans saw a high% increase in their wages.

that is amazing news. hopefully, were starting to see which growth that should push consumer spending forward as well as market forward. charles: real quick. one component of the market, technology, stocks, of the board of right now they're taking it on the chin. apple got a rare celebration this morning, amazon breaking down and missing netflix and facebook fall apart. is the big tech play over? >> i love to say big tech is over but i think it's hard to make a conclusion for one month. what is concerning is all the headlights. facebook with their data. google last night with their data breaches. that's more concerning than trying to pick a trend of if tech is not the tech might be done if we continue to see the huge headlines. charles: michelle, thank you. the politics, president trump apologizing to brett kavanaugh and his family last night.

rotate. president trump: on behalf of our nation i want to apologize to brett and the entire kavanaugh family for the terrible pain and suffering you have been forced to endure. those who step forward to serve our country deserve a fair and dignified evaluation, not a campaign or personal destruction based on lies and deception. charles: joining us, fox news conservator, charles hurt. democrats obviously already pulling out all the stops and continue to go after kavanaugh and taught now that impeachment just as nancy pelosi put a request for records that relate to the fbi invitation. they will not let the scope. >> no, they're not. in fact, i just rode by the vehicle entrances by this up in court and the jersey gates were up in protesters were lined up there on both sides of the road.

they were waiting for brett kavanaugh to come in for his first day of work. you are right. they will not give up. the fact that you actually had democrats talking about wanting to pursue impeachment charges - by the way, it's an impossible thing to do anyway. the idea that there even talking about it joseph r over their skis they are. i don't see how any of this ultimately helps them. i know it energize their base but their base was already hugely energized. what they did is poked a bear and woke up a lot of republicans and conservatives who were pretty content and probably weren't paying so much attention to the midterms and other paid attention. charles: not only that but there was a poll in survey and this was from cnn that showed a big

majority of independents disgusted with weight democrats when after kavanaugh brought the process so that they keep voting block that they might have angered at the wrong time. >> and that is the voting block the basically made president trump president in the first place. it is so easy for people that cover politics and people in washington to get down into the weeds and follow every little twist and turn but when you step back and look at the big picture it was disgusting the way kavanaugh got handled during hearings and i think he did a good job of defending himself and the president did a fairly good job of winning the overall argument among a group. charles: charles, the criticism probably will remain with justice kavanaugh for the reader of his career, not unlike

clarence thomas, nonetheless the politicalization of this report and you think there's a lesson to be learned for everyone as it's one of the pillars of our foundation of the democracy and the republic which enhances democracy? >> charles, i wish there was a lesson to be learned. there is but i wish everyone were willing to learn the lesson that should be learned here. going back to ted kennedy and chuck schumer, they made a determination to weapon the courts and turn them into an ideological battleground. it started with robert bork, clarence thomas and schumer has picked up the mantle and has been doing it for the past 15 years. it has destroyed one of the most important one of the three ridges of our government. republicans have to and conservatives have to fight tooth and nail to do it again to present it because the upside doesn't care. they want to turn it into a pure ideological or front. charles: charles, thank you.

two big stories. one has dropped out of the cloud competition for the pentagon contract. what's the reason for that? it was a lucrative deal. >> $10 billion but first they say they cannot be assured it was lined with their artificial intelligence principles which basically says they want the principles for ethical use of ai. they would not allow ai to be urbanized and they say there were portions of the contract that were out of scope with government certifications - whatever that means. bottom line, this falls out on the process for google employees over the drone contract and project maven saying i do not believe it's what this company is about and some of them quit over it but bottom line is it's the defense of this country and they live in this bubble in the silicon valley. there are people around the world that wanted to this country and it's up to us to defend her cells. that comes through the pentagon. to say were interested under and not interested does not fly. charles: dragonfly.

on behalf of the chinese government makes the whole thing hypocritical as well. susan, another google story google plus. >> 500,000 years this is after a wall street journal allege that they didn't inform users and relators and authorities that they may have leaked half a million users data. phone numbers, home addresses and google contends that they did not tell users about this very issue because they found that no one gained access to the info according to the privacy and data protection office. it did raise eyebrows amongst users and cyber security officials as well. charles: check the futures for you. we put under pressure all morning long but not unlike yesterday with a push poll that we came in yesterday down 150, down 12, and then we finished hybrid was another one of those days. taking a look at canada stock, growing market, big liquor

companies all looking into making pot in these drinks. the question is does marijuana have a future at our bars. reality host john tapper will join us to talk about that. also, the trump style. we know he's been different than any president we've seen many democrats don't like it. author of the new book the plot to destroy donald trump will join us. the war of words between diplomatic secretary of state mike pompeo gets into it with his chinese counterpart, what does this mean for trade negotiations, we delve into that as well, next. ct securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade.

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charles: netflix opened a new production hub in new mexico. >> basically spending $1 billion to open up action hub in new mexico to create 1,000 production jobs and that's a lot of money over the next decade but they have an incentive back in the state will provide

networks up to $20 in economic development funding in the city has commit for a million dollars on the project as well. we give, you come and everyone is happy. charles: not to china in a very rare public conversation between a diplomat. mike pompeo secretary state strange words with china's foreign minister in beijing on monday. joining us china watcher, steve, author of bully of asia. this comes at a quick moment in us china relations. what does this action and even the photos that we saw the tell the world. >> it was a tense five hour visit for our secretary of state, mike pompeo in beijing. he's a former armour officer in the u.s. army and used to drive in 181 tanks, 70 tons of rolling death he's got a sick height. he said to the chinese we have fundamental disagreements with the way you are doing business. the chinese said back here is

the take away - after the complaining and criticizing and carping, the chinese minister said this, we are ready to talk but we want the us to come halfway. the fundamental disagreements are real and military and ideological and economic across all domains. we have a free-market democracy, they have a one-party dictatorship with essentially still a state plan economy. they built artificial islands in the open vision and claimant for themselves. they are engaged in a military buildup where we are now conjuring up. across all the means we're competing with china and it's good to hear that in a frank fashion because when you express your grievances you come to the table and reach an agreement. it was interesting that he said it is time for us to sit down and talk. we need the united states to come halfway. last week in announcing in the rose garden the president trump said the chinese want to talk but i don't think they're ready

yet. charles: let me ask you. how difficult is this issue? we have to major issues that are revolving at the same time. military, adventurism, the imperialistic ambitions of china simultaneously trying to create a fair trade relationship with them. will there be one solution that ties these together ultimately? or can they both be solved and finally? >> we will reach an agreement, i think, on the trade front without too much for the delay. i said that because the only sector the chinese economy the functions according to free-market pencils that generates a profit is the export sector. that is hurting now. in the last round of terrace it wasn't tit for tat but people said china responded with tariffs on six to billion dollars of us goods but they were only 5% tariffs at most but

were going to 25%. they lost the tariff game. they have no more silver bullets to fire at us. i think they're getting desperate to come to the table and when it reaches a point where they're willing to do something about the cyber attacks and $50 billion in promoting china 2025 where they will dominate 11 high-tech areas in the future because of state subsidies when they stop spying on silicon valley and vine silicon valley startup firms and transferring technology technology - a lot of issues. charles: no doubt but the most valid thing here is it looks like they are bending a little bit and that the most point because i think we do have them over a barrel whether they can wait it out or not remains to be seen. thank you, steve. >> figure, charles. charles: let's look at the dow opening up in ten minutes. under pressure all morning long and about down 70, 100 points at this point. big news is money.

big meeting at the white house, kanye west having lunch with president trump will tell you when that is happening, next.

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more. things like this came out of nowhere. how did it happen? reporter: nothing like trying to track down kanye west news at the white house. we were initially told that kanye west would come to my house to have lunch with the president today instead were told this gathering will take place on thursday. this is a statement the white house put out a little while from sarah sanders huckabee. i know we laugh about this of the top but don't doubt that kanye west could get something done or something tangible could come from this because as you remember his wife, kim kardashian west, came to my house earlier this summer and was able to get the sentence commuted for alice marie johns johnson, because she had taken

up. were told kanye west will be meeting with the president here on thursday. i will see you then, charles. charles: finished her coffee, by then. thanks. strong words from a google executive over the kavanaugh nomination. >> strong does not cover it with white hot anger. he describes himself as google's you ask design lead and he put this out on saturday. he was angry . charles: little bit. >> he deleted it and said i should've been more eloquent and less condemning but google said their personal capacity has no bearing on the way we build or operate our products.

this comes on the hill of google being accused of anti- conservative bias. charles: this google does not bypass white house. target looking like the dow jones industrial average remember yesterday was wild session, brace for another one. we'll be right back the day after chemo might mean a trip back to

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charles: opening bell in about 16 seconds away. we had the same thing happen the last three days. a lot of pressure on the market particularly and buyers have materialized midway through. enough in fact internalize that the dolphin attire so it could be a real interesting session to see. caterpillar biggest news thus far, walmart on the other end of the spectrum, your loan biggest winners of our. let's check on the s&p 500. broader index. under some pressure not a lot down three not present on ten points but nasdaq has been under a huge amount of pressure lately and the big tech names. should come under extreme pressure. apple got a real downgrade to sell this morning. i would say a midtier firm. check on the tenure. 3.22 and we will see how much

pressure in the session today. more on google. in fact, there is the stock but so much news. joining us now mike murphy, susan lee, ashley webster and we will back up to rates are up, stocks are down so how long will this continue? >> i think we will grow out of this very quickly in the marke markets. you and i both know that if the economy is going the strong doing this while an extra ten basis points will not matter in general. the money has gone defensive over the past week and a half enough been what has been driving this. i don't see it left a long. charles: here's the thing, people know history. is it that it's moving up fast, is that the pace of the rise it can be 3% yield. >> no, it's not. it's what people are focusing on all the market is having a temporary holding pattern. charles: [inaudible]

>> it simply that is not going up in a straight line forever. we had this when we first crossed the present earlier this year but the point to do will not scare anybody out of equities. charles: when we had this in february it was more of an indictment or? and i think we've heard from them enough to understand he's on the side of the economy investing. >> absolutely. as long as the underlying fundamentals are strong and we continue to see growth and profits growing market has a long way to go. >> historical trends. i looked at the research and they said in the periods of the year during a rate rising environment usually you see gains out 12 out of 15 times, 80% you see 12% on average when yields and interest rates are going up. that is positive. charles: interest rates are going up.

>> exactly. >> such a low interest rate environment for a decade now and it's the most hated bull market in history. it's almost like it's the reason now to get out of it. it's like a trigger. this is that it good days are over, finally, push the sell button. >> if anyone is at home pushing the sell button they better hope no one pushes the buy button. i would advise against picking tops and bottoms. charles: people to meet their millions of people who will buy the march 2009 low but it was never retested. i hate to say it but people without including professionals, by the way. most professionals have missed this rally. a lot are afraid of a variety of things including the federal reserve it let's talk small business optimism because that was the first indicator after president trump was elected. first real-time the things would change and keep exploding.

the september number, third high in a 45 year history good vibrations on the economy, is it a harbinger for the stock market mac. >> it's a sign of more good things to come. we are looking for the next great startup business, small business. what we're seeing is great ideas, great aunt winners and people who feel confident in the us economy and a lot of money out there to support these businesses and help them grow. this number right here, small business reading is something that people should take very fiercely. it bodes well for the economy and the market. charles: compensation part is the highest ever. >> and the third highest rate on record. i like to believe when larry kudlow before he became the national advisor says the tax cuts are still working their way through the system and through the economy to the small business to pay out and hire more people. >> one number i like better than all of them. better than competition and optimism and that is capital

spending. they are investing in their businesses, charles. that is what gives us the next leg up. capital expenditure that's going on in big and small companies will bear fruit in the months. charles: i agree. that's the on some part of the tax cuts and regular tray cuts that you don't hear a lot about but it's the one that is the long-term coattails. let's talk google. a lot of news including dropping out a competition, cloud competition, for the big contacted ashley, your the details. >> they dropped out because they don't agree with it. they don't like having artificial intelligence beam weapon eyes, they say, and are not comfortable with the contract, 10 billion contract and basically putting the information the pentagon has up into the cloud. it is strange because let's be honest. this is the contract that any company would love to have and they are hiding by the fact that we don't like what they're doing with our technology. >> the building a fence or search engine.

>> and a lot of hypocrisy. wait a minute, shouldn't we be helping defend our country. that's what the pentagon does, whether you like it or not. and to hide and say . charles: i know people don't want to invest it has something to do with - >> that's fine. charles: but the last five years the dow jones industrial is up 72% and lockheed martin up 170% and general dynamics up 134% so if you are inclined to make money it's good to do business with the pentagon. >> absolutely. to come out against the us government they are careful in their words here but you live in this country and you want to support what's good for the government and was good for the country and get for all business. we have to remember that. charles: take that into account. it's been real tough - going back to september 1 they did not show up for the senate hearing and then you have the delete video with the executives of google where they were

crestfallen of the fact that donald trump was elected. they do not like this and ministership it but that plate into it at all with investment analysis? >> it does. the things i said before about not dealing with the ministration in particular you pass up on contracts that the next in ministration comes in you not get back into that game. i think they are passing up on business opportunities that will have long-term impact on the stock. charles: one business opportunity they did not pass up. google plus. >> big failure. meant to be a competitive to face the 2011 but the big deal yesterday was they did not alert users did not alert authorities when they found out that may have been data leakage of half a million users on google plus. they're setting it down but raised eyebrows in the government round in cyber security that you did not even mention this to people that may have been at risk.

google says there was no data leak however it makes you think again about your privacy of information. charles: they suggested they did not like it because they did not want to come under government scrutiny. that's not cool. none of us want to be under government scrutiny but sometimes a call for. >> there could be fire where the smoke is for google. they need to tread lightly with what they are doing. while there in this country they have to abide by the country's laws and we need to be careful. >> the data was breached so someone who should not have been in there was - >> it was at risk. not necessarily a breach. >> so they say there's no data. >> by the way, it was a wall street journal that viewed this internal memo that suggested maybe there was concern about regulatory. charles: it ever took off anyway. let's talk about the market. [laughter] let's take a look at the big board. down 73 points on the big board take a look at oil.

crude oil is breaking. couple factors, momentum that it has an storm and iranian sanctions are starting to bite there. we could see a major breakout. meanwhile, national average for price of regular gas, $2.91 a gallon. we are not mentioned tesla yet. they say you are less likely to get searcy injured in a model three-car than any other car. great news for them. meanwhile activist hedge fund is looking to perhaps make a bid for a papa john's which is but it's about their. also, latest get it from facebook is a video chat who works with your camera that'll follows you so this is weird. the other day i was watching the nfl and they showed from john brady, tom brady looking up imagine if we look went through life looking like that. >> i don't think it is a terrible thing. [inaudible conversations]

>> it is interesting tech. instead of you sitting there you can move around the room and it will intelligently follow you. it can't follow you outside the room but it will be a big yawn for facebook. >> as a facebook shareholder i hope it will not be a god. for spending a lot of money on marketing but it's the first time since their phone attempt to get into the hardware market. charles: what do you think will get it back because it looks like it has lost steam with facebook and we don't know what with the founders leaving but what's next big thing and facebook to keep the momentum that they lost or regain it? >> monetizing the 2.2 billion users. they don't have to change. if you look at their quarterly - were back recessing this level there earning support a much higher stock price. they keep doing what they're doing the stock will be back at

200. >> getting outside of the us using the same intelligence that they did to get the average ad revenue for every user. i love the stock and still own it. charles: mike, thank you very much. quick check of the big board. dow up 91, 92 points, 93 is the lower the morning but still early. meanwhile, mark fighting over billions of dollars in retail following the collapse of toys "r" us. the question is will it work. will ask the former ceo of walmart and taking a look at the markets, interest rates continue to weigh heavily on stocks and later in the show will ask market watcher dennis what he thinks it means for the economy. microsoft getting into video games, streaming service and you won't need the fancy graphic chips anymore. is this the future? will get into that as well.

charles: let's check on the big board. the dow up 110-112 points. we'll see keep monitoring that for you. best buy going after the senior citizens market. what's going on there? >> a lot of senior citizens, more than 50 million here in the us. this happened back in august best buy decided to buy it biggest acquisition ever, $800 million cash company called great call. they make those jitterbug phones the ones with the right screens and big buttons that are great for senior citizens but this is a push by best buy into that market and also a push into healthcare in a way you look at wearables and heart monitors and the like. best buy can use their massive

showroom and therefore space and their human people to sell this type of technology that is one way the best buy can win over amazon. charles: interesting. thank you, lauren. microsoft watching a video game streaming service all your xbox games could be streamed into your phone or computer, no fancy graphic chips are needed. using a netflix model or streaming video games seems logical but how will this play out? >> good morning, charles. it will play out pretty well. they've taken certain steps to combat the latency issues because they're using a first party called service and instead of just having the latency issues what you'll see is have a single blade shift processor that will probably cut that latency issue to five seconds which is approximately what a

human being can organize in terms of latency. it looks like when you have your gps system and it tells you to turn right and you've missed her turn, that's the same idea. charles: so from a competitive point of view does this change the link to the document. >> i think it does change the landscape. with google announcing this weekend and having their play on their project stream, microsoft is adding to competitive play to allow people to gain a game anywhere anytime. we don't know how much it will cost but it's a tease now and a perform later but there are issues to be concerned about especially when it comes to latency and in terms of high-speed internet quality in terms of google's project stream. it will change the landscape, undoubtedly. charles: where are we because this entire space moves so fast. new news everything they.

each player making a new attempt or announcement. from a consumer point of view what is a mean for us? >> well, i think it gives you the ability to be mobile and play any game you want anytime. this is about the competitive casual market. this is not for pro gamers. if your family really a game on the council and the child was to take over your counsel you can quickly put an adapter on your xbox and go continue your game. i think it's a process we are looking at in terms of having games and anytime and they have 40 years of experience with pc gaming i would bet they will wait and pull it out until 2,019. charles: gail, thank you. let's check on the markets.

17 minutes, dow off 160 points and you can see caterpillar is a big loser, walmart holding in there. we open just like this yesterday. down 150, 15 or 17 minutes into the session. google plus shutting down after a bug may have exposed hundreds of thousands of users data, personal data. if your information was stolen what's the recourse? judge napolitano is on next.

charles: kroger cut to sell. let's get back to google because there's a company shutting down, google plus social network after failing to announce there was a bug that may have exposed hundreds of thousands of users personal data. all right, judge napolitano is here. what liability are we talking? >> no statute that says the minute you are hacked you have to tell your customers. there is a common sense that if a customer was hacked and harmed and sued google because google did not tell them the jury will award a substantial verdict to the customer. does google have an obligation to inform the customer? does at&t? does chase does anybody that has been hacked?

yes. absolutely. it's a self-serving allegation because the sooner they reveal it, the lesser is their exposure. by not revealing it in by thinking they can get away with it and by thinking they can apparent before the customer finds out, they made matters infinitely worse. the cover-up is worse than the crime. charles: another part of the cover-up is they thought it would invite government scruti scrutiny. i mean, that's kind of tough. i understand they're going through and antitrust issues in the eu and they don't get along with the congress or the white house but i don't know. >> charles they will invite more government scrutiny. can you just see the examination and he waited two months? why did you wait two months? don't you know you have an obligation? >> i don't think it's that big of a deal because it wasn't that many people but this will explode in their faces and rightly so. charles: x1 for you, judge.

let's take a look at the tweet. democratic socialist alexandria cortez wants to eliminate the electoral college and calls it - judge, do you think the founding fathers might have disagreed their? >> founding fathers would have disagreed nearly 240 years of history would disagree. look, she is better, i think. i don't know the one personally but hillary clinton got a few million for popular votes that donald trump and donald trump became president. he campaigned and was published in rich states that mrs. clinton and the democrats took for granted. the electoral college retains power in the states as ronald reagan said in the third paragraph of his first inaugural address, let me remind you, the states created the federal government and not the other way around. it was the intention of the framers to retain certain power

in the states. charles: but this movement is picking up steam. what they are saying is that kavanaugh is only popular with - the senators that approved arch capital were only voted in by 40% of the publishing. >> that's because they reject the concept of state sovereignty. they reject the concept of that in the senate the states are equal because they all have two senators, whether wyoming which has one member of congress and calpurnia or 45 members of congress. when they created the federal government the states were given a place at the table and it's a three sided table. the concept of nationhood is the president. the concept of the people as voters is the house of representatives. the concept of the senate representing sovereign states is the third side of the table. they want to get rid of that. analogizing this to slavery is horrific. we fought the most destructive war in our history and

immediately enacted three constitutional amendments to be rid of slavery. i know, you know, better than i was taken more than 100 years to get rid of the vestiges of slavery but to analogize the electoral college to slavery is a new leaf left. charles: we can also argue that because the condition was written to prevent the tyranny of the majority that we would ultimately come to this place is a country. >> cannot have that better but one of my favorite phrases. varney hates when i say that. tyranny of the majority. [laughter] b1 it is official. kanye west going to the white house and will have lunch with president trump. latest details on that big meeting coming up next. [laughter] my show, making money with charles payne, moving to 2:00 p.m. eastern on monday october 15. more varney after this.

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charles: 10:00 a.m. on the east coast, 7:00 a.m. out west. it is tuesday. i'm charles payne. i'm in for stuart varney. we're all over your money. we're about a half hour into the trading. dow jones industrial average down only 46 points. in fact we came back 100 points during the commercial break. still about interest rates. they're weighing heavily on this market, just as the economy shows no signs this boom will ever let up. big day in washington. day one in fact for brett kavanaugh on the bench. a few scattered protests outside the supreme court but nothing major. the president will reportedly meet with kanye west, prison reform, manufacturing resurge answer in this country and we're all over it. plus drew brees making history, passing peyton manning for all-time record on passing yards. wait until what he says to his sons after breaking the record. it will give you chills. you're watching the second hour of "varney & company."

♪ charles: this is deja vu all over again. yesterday we were down 150 points. clawed our way back. we're down 150 points. we're clawing our way back. the dow and other two indices are higher. and check on walmart. deutsche bank rather, raising the stock to a buy. they're saying the online grocery business will thrive over amazon's. deutsche bank cutting grocer kroger to a sell. that is putting pressure on that stock. checking ge the shares soared 20% in the past six trading days after naming a new ceo, up fractionally. they have been under a tremendous amount of pressure. google on the focus after a major data breach announcement yesterday. president trump, president trump on the way to iowa he is expected to announce new rules

that will allow more ethanol gasoline. joining us scott shellady. many are considering this a big win for farmers. >> well, it is kind of -- well, it has got three things. there are three boxes to check. yes, it's a big win for farmers. we're blending more ethanol into the gasoline. they will sell it year-round. 40% of the corn goes to ethanol. that is a big, big deal. number two it can help the struggling governor in iowa slightly behind in the polls. number three, he could throw his arms up saying i'm a green president. there is a lot of things at play here. obviously biggest one will be the farmers. he will have a little bit of problem with the oil industry, right. grassley against cruz on this one. but at the end of the day he has three boxes to pick and that is going to be a good thing. charles: i find interesting with corn.

people will bring up trade tariffs and maybe not so transparent effort to help out farmers. the price of corn peaked in 2012. it is down 56% by the time president trump was inaugurated. i think for a long time we try to find a way to figure out what is going on in our farming community because these crop prices are in a freefall, scott. >> we have family farm. i can tell you the real issue there, unfortunately our farmers are the most efficient business people in the country. that is the deal. they have been able to take technology with their hybrid and things that they put on those crop and we're getting more out of an acre of land today then we did in 1930, 1940. give you numbers. 1930, 1940 early part of last century, 40 bushels of corn per acre. now we're over 200, right? charles: wow. >> getting so much more out of the same spot. it is the most inflation-proof

out there. they're so good at their jobs. almost like they're penalizing themselves because they're more efficient. it is a great industry to be in, inflation doesn't really help them because they're so food at efficiency. charles: talk about that, maybe things being too good on inflation and interest rates going back up. it put a lot of pressure on markets last few sessions. how long do you think lasts, rates going higher, market stocks under pressure? >> got one word for you. all about the velocity. the velocity of the move in interest rates will dictate what happens to the equity and asset prices. if the velocity is fast, sharp, it will be a bumpy ride over in the equity world. if the velocity is slow and steady, because markets don't like to be surprised i think equity market digests that. earnings season, earnings numbers come in good it will be

okay. equity market wants slow and steady, digest to see good earnings. if we see sharp rises all of sudden at beginning of the year, equities don't like that. charles: at some point it slows down. we had knit february. there was a lot of turmoil in the markets. we're going through it right now but i looked yesterday, for instance, utilities were up big, real estate was up big. those are not supposed to be up if interest rates are continuing to go higher. >> you're right. here is what i think the market is telling us. number one, the market thinks the china tariff tantrum we're in middle will not go on forever and it will be done relatively soon. number two, they don't think the fed will really overplay their hand here. it is still mildly accommodative. they said that last meeting. i think ultimately that is probably the biggest risk, the fed could be the one that puts this party out. if they continue to be mildly accommodative, keep a look at things, don't overplay their hand because they're

traditionally ones that can end this party. charles: sure. >> things will be just fine. charles: right now i think powell and company understand that pretty well. they tried to telegraph it. >> i agree. charles: scott, thanks a lot. thanks for information. i did not know that about the corn and efficiency of farmers. it is amazing. thank you very much, appreciate it. >> all righty. charles: to the supreme court, justice brett kavanaugh is hearing cases as we speak. joining us lawrence jones, conservative commentator. we know the left still not giving up the fight. in fact they're going as far as perhaps wanting to rip up the constitution. >> yeah, charles it seems like they now want to impeach him too. i don't get this. you know i've been reporting on this for a while at the leadership institute of campus reform about the mob on college campuses don't believe in due process. don't believe you don't have the right to face your accuser. definitely don't believe you're innocent until proven guilty.

this is bad strategy move for the democratic party, they have gotten republicans that would have traditionally stayed home during the midterm election to go out and show up. i haven't seen the republican party so unified in a while especially after election of donald trump. still the never trump crowd. now you have gotten us all on one page. i think it will hurt them in the long term. charles: you think this unification of the gop party will last? you know we saw a little bit of it with gorsuch. when you see someone like brett stevens, hey, trump was the difference maker, you think this is something that really jell and keep gop together, not just through the midterms but up into 2020? >> i definitely look at numbers. the gop is having record-setting fund-raising numbers. when you look at excitement going on. as i said, people that were in the never trump crowd, who said they would never get on board with donald trump, now it is no longer about donald trump.

this is about protecting what we call america. the constitution. just foundation, foundational principles that we once were able to agree on, despite party. if we can't agree on due process charles, this country is going down the drain. that is why you've been able to see so many republicans come together on this issue. charles: to your point, we have seen a bump also in the dnc side on donations. nothing like the republicans but middle, independents really seem to be appalled what they just witnessed calf now family going through. >> charles it, was a disgrace in this country. the guy did everything he was supposed to do. maybe he made mistakes in high school. we're literally evaluating his yearbook, not his judicial record, not all the opinions he has written all over the years. to be fair conservatives that

thought he wasn't conservative enough but again this is what the president picked. this is what we could get confirmed and you would think some people, lindsey graham, who i have been critical for years about, confirmed voting for both president obama's picks. he was infuriated because the democrats wouldn't do the same thing. i think this is new ballgame in washington, where you will not see a lot of bipartisanship anymore, you see republicans standing their ground and democrats resisting as they have done the entire administration. charles: lawrence jones, thank you very much. >> thank you, brother. charles: "axios" says u.n. ambassador nikki haley resigned. ashley: bear in mind they reported that they reported rod rosenstein resigned. nikki haley has resigned. the report says that nikki haley discussed her resignation with

president trump last week when she visited him at the white house. according to these sources. it has shock ad number of senior foreign policy officials. the report goes on in his administration. she was easily confirmed to this position. she has been highly praised for her performance at u.n. she has been dealing with a lot of policy shifts from the u.s. to the u.n. we'll have to wait and see whether this is confirmed. but it is coming out of left field. charles: shocking news. she has been a lion at u.n. ashley: she has. susan: general assembly was front and center. charles: maybe she waited for that. hurricane michael category 2 storm. residents in the florida's panhandle they're preparing to board up or ship out. janice dean has the latest storm track. secretary of state mike pompeo meeting with his chinese counterpart and let's say it wasn't pretty. i want to know the endgame and what it means for our negotiations with north korea. we're on top of that.

now that toys "r" us are gone, holiday season two month away, retailers are trying to figure out how to fill the void. we'll talk to the former head of walmart usa. you're watching the second hour of "varney & company." ♪ your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today.

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to request this free guide. and learn about plans that could give you more benefits. call now. charles: major breaking news. u.n. ambassador nikki haley has resigned. want to go to ashley on this. ashley, this is -- ashley: we just said, it began with a report from "axios," fox news confirmed indeed this is the case. she handed in her resignation which the president accepted. apparently she was in town last week talking about this with the president. so obviously the president knew quite likely that it was coming. charles: sure. ashley: i think it is shocking. she has been as you said the

lion as u.n. ambassador. charles: blake burman at the white house. the latest? reporter: nikki haley walked right by me in the west wing, stuart, sorry, charles. i was standing outside of sarah sanders office awaiting official response. haley walked right by us. we asked her to comment. she smiled. we know why nikki haley is here. there is 10:30 meeting we're told with the president and former u.n. ambassador. we believe the president has accepted the resignation of nikki haley. i'm not entirely sure, charles, if this is effective immediately or when. either way we will soon get details we believe in about the next 15 minutes or so 10:30 the president and nikki haley meeting. this came out of nowhere. haley a couple weeks ago interviewed by fox, said she

would be championing the president for 2020 election and his cause as he hits the campaign trail. she has been a supporter of this president even though these two have not seen eye-to-eye during the 2016 election. they were clearly able to put that past each other as the president named the former south carolina governor to the top post for united nations for the united states. 10:16. i send it back to you, charles. we should know more soon with president trump and nikki haley meeting at the white house. charles: van hipp joins us. i don't think anyone saw this coming at least at this time. we don't want to speculate too much. we'll hear from president trump and nikki haley shortly but your initial thoughts? >> she has been such an effective u.n. ambassador, one

of best foreign policy teams this country had in recent memory. not miss a step, not miss a beat, someone who can fill her shoes. she has done so much with north korea. the things she has done there, with the general assembly and on the security council with the sanctions. she is, been a great u.n. ambassador. she has done a lot of little things that you don't see. i give you a case in point. it was nikki haley who led the way and got this president to appoint another former south carolina governor david beazley, to head the world food programme. you don't hear much about that. that is making a difference. this guy brought business management principles to a 8 billion-dollar subagency if you will of the u.n. he has carried the fight to radical islamic terrorism in africa where they tried to expand and recruit people with food. he is on the ground to counter them. he went to north korea right before the trump-kim jong-un

summit. got in there. i talked to him when he got back and told me could sense a real difference, i mean things were happening there on the ground in north korea we've not seen before. she has done a lot of things like that you don't normally see. this is a shock. charles: van, people have been talking, america's version of margaret thatcher, the iron lady. she has been at the u.n. reading the riot act. she has stood tall against the tyrants of the u.n. it is amazing. people have looked, everyone looks up to her as, the emerging star in the administration. you know of course everyone will guess what her next move is, but it will be tough to replace her. >> it will be. people already underestimated her. i remember when she was a state representative in south carolina. she came from bamburg. her parents were immigrants. they always underestimated her.

she was a good governor in south carolina. she becomes the u.n. am bass do. people said does she have any foreign policy background and experience? look what she did. what a learn-up curve. we have not had a u.n. ambassador like that since john bolton was a u.n. ambassador. charles: brought back sense of importance to the position. i think a lot of americans, particularly republicans don't have a great feeling or the u.n. it has been always anti-american, anti-west, anti-israel. we wrote it off, it was becoming a tool, very effective tool to implement some of our vision, some of this administration's vision. >> that is a very good point. shows that position could be effective once again. i mean it wasn't just a ceremonial post as it has been in some administrations. she actually did things. working closely with the allies like great britain and others, to, also to put pressure on china, to enforce sanctions against north korea. let's not forget, a lot of money

laundering were taking place through chinese banks into north korea for years and years. even our treasury department will tell you that largely has been shut down. yes, she has been a very strong u.n. ambassador who actually accomplished much. charles: intense negotiations with north korea and china. the timing seem as little bit unfortunate. do you think it will interfere at all? >> i don't think so. secretary pompeo what a sense of history he has. he was, don't forget the cia director that started back channel to north korea we found out afterwards. foreign policy with this president is one of his strength and. he has personal engagement. he doesn't show up at the summits and meet world leaders

as part of a group. he picks up the phone, calls them, to get to know them. that makes a difference. look what he has done with abe in japan and done it with leaders across entire globe. this caught the chinese a little flat-footed. charles: president trump put a tweet out. let me share it with you and the audience, get your thoughts. big announcement with my friend, ambassador nikki haley in the oval office at 10:30 a.m. it's a tweet that suggests amicable -- ashley: or maybe something else in store for her. charles: could be something else in store. i was working my way up to that with you, van. i don't know what positions are open per se but what other role could nikki haley stay in this administration? >> stay tuned. i think she has a bright future. charles: i don't doubt that. i think we all agree, nikki haley, i loved her as south carolina's governor. i have to be honest with you, she made decisions there that

rubbed some conservatives the wrong way. she was also very independent at the u.n. there were times she pushed back against the president. i think that galvanized her as being a strong person, a strong american who, to your point has a very bright future. in a way, she is like him, it's a chess game and you wonder what nikki haley is doing, what president trump is doing. you figure out, they are two moves ahead of you. charles: maybe we'll catch up to learn what the next move or two might be. >> that's right. charles: again it is really remarkable. because we're talking about van, where we have an administration a year ago, we go back a year ago, the complaint was president trump is ham-fisted. the tweets weren't presidential. that i was -- he was going about things in an unorthodox way and he was bound to fail. we have trade deals with south

korea. we made progress in north korea, yeah, north korea and now you don't hear those things anymore. no one is saying the approach is wrong. no one is saying that the aims are wrong. felt like president trump for a lot of the establishment, you know them better than anyone else, his goals were so lofty and his tactics were so, for lack of a better word, crude or unstatesman-like, now everyone believes he can achieve it all. >> i think the establishment is dumfounded. let's look at it, this president put america back to work. he put this country back to work and he kept us safe. he strengthened, i believe he strengthened our relationships with allies and he reached out to people who in the past who haven't been our allies to try to get them on board. that kept folks like china off balance. they haven't figured him out. they haven't figured him out yet. charles: van, stay with us.

walid phares is joining us on the phone. your initial thoughts on breaking news. >> it was not expected. i think that is the common ground of all those who are going to be reacting especially ambassador nikki haley was in line with the administration on so many issues. she was leading trump administration foreign policy out of new york to change the course of the united nations. she was so far successful. i and many like myself are wondering first what were the reasons? we want to know if it was a political reason or personal reason. that would be my first question. charles: of course we, we were reminded she recently said she is going to champion president trump through 2020, his ideas, his agenda. so i don't know that, it doesn't seem on the surface it would be anything so idealogically, that she would be so idealogically opposed to this she would want

to resign from her job. makes her believe there could be another opportunity out there for her, walid? >> absolutely, another opportunity is possible. we know that is how our system happens. after the midterm would be time for these changes. that is what we learned in our system the past 25 or 30 years. the end of the first mandate for the president. to happen before the midterm, i agree it could be a opportunity but better be a big opportunity if that is the case. charles: there is no doubt about that. let me ask you, we came in this morning with images, photographs, tense photographs, secretary pompeo, his chinese counterpart, going at it, rare loggerhead if you will for high level diplomats amidst of tensions that involved man-made militarized islands, china aggression in the south china sea. china's grand ambitions to dominate the world and america pushing back. so we're in a very tense time

diplomatically. this will certainly be critical what we hear at 10:30, isn't it? >> i think it will. as you just said we have the entire, i call it east asia crisis would involve two koreas, china, the south china sea. we have the whole iranian policy of the united states now developing i think we had a possibility of that the u.s. would declare the middle east strategic alliance would involve the u.a.e. and egypt and saudi arabia. now the tension between saudi arabia and turkey, on and on, in addition with the arab-israeli conflict. i'm naming just a few. for ambassador haley to resign job or change jobs it must be a important reason amid all the diplomatic battles, or a reason we will know very soon. charles: walid, stay with us. i want to go back to blake burman. blake, any details now what the announcement will be?

reporter: we'll hear from the president in about five minutes or so, charles. my colleagues are pulled to the oval office awaiting the announcement between the president and nikki haley. we know nikki haley resigned. there are a lot of questions around this one. was it a resignation because of policy difference? was it resignation of personal matter? is sitting she wanted to move on from? we don't know. we'll hear from nikki haley soon. we know nikki haley is here at white house, will make the announcement next to the president here at the oval office. appears she will leave here on friendly terms. she will leave the administration on friendly terms. will the resignation be immediate or something happening over time? what we know in the aftermath of all of this, no matter what is said, charles, there will be a whole lot of speculation

involving haley and her future political ambitions, possible ambitions. remember haley and president when he was running did not see eye-to-eye. in fact there was very public back and forth between then. haley said she would support president trump in 2020. but now appears she is on the way out if not today but relatively soon from this administration, charles. charles: go back to walid. i'm not sure how long a typical u.n. ambassador stays in that particular role but it was unlikely nikki haley would have stayed there perhaps until the 2024 election or anything like that. at some point maybe she would move on. her political star became a supernova if you will. the idea of her moving on it? farfetched. the timing of it is curious, right? >> that is what i was trying to message. the timing is a little bit unusual. usually u.n. ambassadors, u.s. u.n. ambassadors last four years. that is what we've seen over the

past many years and the second after the re-election of the president they would seek higher job such as secretary of state or national security advisor. this has been the case or the tradition. for the ambassador to now, to stay in the realm of politics that would mean there is either a domestic position she is thinking of, or a role she was thinking of or international one has to do with the international institutions. so we are not sure. everything is possible. we will know very, very soon. charles: what institution would be on par with this, walid? >> i don't want to make speculations as all. the u.n. has many institutions of the nato has institutions and positions. the sky is completely open here, the sky is the limit. it a little unusual that the u.s. ambassador to the united nations resign, stay in good relations with president, apparently is the case, hopefully is the case, could also be personal reasons.

charles: you're right. >> really big questions. charles: we'll find out very shortly. go back to van hipp. you have listened to walid and i, we got a update moments ago from blake, any further thoughts where this is taking us? the dow is down 150 points this morning is now positive. all three major are in the green right now. van. >> if the resignation is effective today, i would have her go to ohio, south carolina, where seats are. she can be very effective on the campaign trail and helping the gop keep control of the house. charles: no doubt about that but i'm not sure that why she would be resigning. ashley? >> there has been some suggestions, she was left out of the historic summit in singapore

between the president and kim jong-un. she was not invited to the u.n. opening in jerusalem. there were suggestions at the time, maybe her star was fading and moving toward another direction. those were two big landmark events that she could very well have been a part of and she wasn't. there were questions raised at time. susan: report in the "huffington post," a watchdog group in washington calling for a probe of nikki haley and flights funded by business men. that story came out two hours ago. relates back to a few flights that were taken in 2017 not listed on some public disclosures. charles: thanks a lot, susan. keep delving into that as well. van, i come back to you, again it is one of these things where so far the news hasn't jarred the stock market. i think it's a great time to underscore we seem to be on an amazing diplomatic move here.

our foreign policy overall, whether on the economic front, getting nato to pay their fair share, pushing against russia with sanctions and economic actions, what we've been able to do with respect to strayed deals and new nato and usmca. the administration is on a foreign policy role and nikki haley has been an important component of that. >> absolutely. ronald reagan said it best. personnel is policy. the right people go in there and do the right job they effectuate your policy. that is what we've been seeing with her. it is important the administration move quickly and have someone prepared to hit the ground running at the u.n. look, this is, she has made this an active job, not a ceremonial job, but a job actually doing something and engaging with our allies. charles: would there be someone because it has, the luster of the position has been restored,

the power of the position has been restored, van is there someone with a name recognition and resume' that would command respect nikki haley has been able to carve out of this position? >> i think president will have a number of people with real gravitas to pick from. charles: go back to you, walid, your thoughts on possible successor to nikki haley? >> i would not vent you are in terms of name but i would venture in terms of men names could be considered. there are many good candidates. i'm not sure at this point in time these candidates would leap to the position of ambassador haley after year-and-a-half of being the top diplomat at the united nations for u.s. but i'm not concerned about a successor. i want to be first reassure, what were the reasons and what is the future step for the ambassador. ashley: it hasn't been easy for nikki haley because previous u.n. ambassadors have not had to carry the kind ever agenda

president trump does, america first. goes against everything that the u.n. and collective globalized outlook stands for but she is the known as person that gets it done to van hipp's point. she is a get it done kind of ambassador. she has been praised for surrounding herself with incredibly proficient staff. she created a real niche for herself where she has been very, very effective. she will definitely be missed in that position. susan: executing unfavorable policies in the u.n. $285 million in funding from the u.s. that did not make her popular of her and executable and deliverable for potus and the a u.s. president. charles: van, that is another important point here. nikki haley really fought hard for the trump agenda. she fought hard for the america first agenda against, you know, tremendous opposition, very, it was very rare we had any real friends at the u.n. on any

topic. think more recently. we had european allies talking openly about circumventing our sanctions against iran, about somehow ditching the financial knitting that allows the dollar to be the currency that carries the world's global economy that keeps it alive, somehow circumventing that so they can do business with iran. we don't have a lot of friends at the u.n. on any given day. >> she was such a strong communicator for this president and his policieslook at his speech on iran and look at the speech for north korea and helped set the stage for the tone and the stage for. i think this president will seek counsel of ambassador john bolton and secretary of state mike pompeo on the kind of ambassador we need to replace her. charles: john bolton. ashley: mike pompeo. charles: there is no doubt about that there must be major conversations going on right now. remember, folks we were told initially that we would hear comments from president trump

and ambassador or former ambassador nikki haley at 10:30. obviously it could happen at any point. anytime. we'll bring you there when it happens. it is major breaking news. on that note we want to bring in our friend, brian kilmeade, "fox & friends" host to discuss this and other things. brian, your thoughts on the breaking news. >> charles, just moments ago, jonathan swan who broke the story was on with us, booked ahead of time, he said i have this stunning news, nikki haley is resigning. obviously a friendly. bottom of the hour. could be happening now. sending in the pool cameras. they are slightly delayed when they come out to us. i don't know that anybody argues she was just on the "fox & friends" couch next week. how do you explain the fact you get along with the president? we have disagreements. i have a direct line to him. i pick up the phone to talk it out. only time i saw her

disillusioned that larry kudlow made a statement she was confused by something. she called him out. i'm not confused by anything. besides that, she had a chance to bring a lot of prestige to that seat. i thought she has been brilliant. charles: everyone agrees she has been brilliant. even her retort to larry kudlow got a real quick apology for larry. stick to the economy, but don't mess with me. that is the whole thing. don't mess with me, don't mess with america. >> just to speculate real quick i want to get on the record, this was not my idea, allison mansfield, the great radio producer who i never met in person, you fill in for me, charles, what about lieberman comes out of retirement to take this? how good is that? charles: that would be great. that is why she is the greatest radio producer out there. allison, great call. we'll see what happens. he certainly would be something that this country would need right now, right? it would be a great bipartisan

moment. >> right. charles: in a nation ripping itself apart along idealogical lines. we'll keep that one open. other than that, the market is held up throughout this news. in fact we edged a little bit higher. right now despite how shocking the timing is, everyone is sort of hoping like you are, that it will be a positive announcement? >> here is the thing. she is not secretary of state. she has a spokesperson for a position. secretary of state kind of does their own thing. i think it was pompeo resigning it would be a much broader reaction. with her, she is making an impact by following through on the president's policies. i would think she is part of atry up very rat. i asked -- a triumvirate. i asked john bolton, how do they get along? they totally get say long. bolton used to have that job and knows what it is like to be only person there not really popular. something else nikki haley said to me on "fox & friends," said to us, she said, i asked the

president to have a couple of cocktail parties so he can meet the other ambassadors. it would mean so much to them. he did it to me two years in a row, even though the advisors telling him you need to go, do other things. he said if she wants me to do it, i'm doing it. that is their relationship. i think that is mute all respect we asked nikki haley ever running for president? certainly i would never run in 2020 against this president. she never ruled it out. governor from south carolina who spoke up for civil rights. we also know what she has done as a family person, whose husband is in the military. she goes to get international credentials in the position she has, man, she leaves high. the question is, can you leave this position not do anything in public life and then come back in 2024? that makes me think, the fact that he tweeted out friend of mine, big announcement. i get the sense this may be the hiatus. maybe family or health-related.

maybe she will be back. ashley: starting to get some headlines from the pool meeting. there the president says that nikki haley has done an incredible job. the president said haley told him six months ago at the end of the year or two-year period coming up next month, she wanted to take some time off. those are initial headlines coming out of the white house. she said six months ago she was ready to take -- charles: so, brian, with that in mind, everyone again will be speculating to your point. what does she do for five years? she has become a political supernova. she is a superstar. she pushed back against the president when she has to. more coming in. ashley: the president says hopes nikki haley comes back in a different role and quote, you can have your pick. charles: your thoughts? >> gary cohn similar press conference. gary cohn felt he was smarter than the president. he was source of woodward's

book, if you read the book. nikki haley never has done that. she is her own person working for a president who personifies single-mindedness my way or the highway. she thrived in a way i haven't seen anybody else thrive next to him. i see for her to come back. this is a sprint. even though ainsley making it look easily from going from south carolina to new york is not especially with a young family and husband in the military. i sense that she comes back, takes a pause. see who sticks around in this high octane, highly demanding field. bolton, pompeo, something international like that. there is a lot of prominent positions could be coming loose in the next few weeks. i'm sure she will do whatever works best for her family works best for the president. charles: brian, of course, she restored prestige to this position which really lost a lot of its prestige for a long time. we've been speculating outside of perhaps of lieberman, who

would fill this role? you think it would have to be someone with really good name recognition, a long resume', hit the ground running with the presence because she reelevated this position. >> you would like to think, i don't get into gender roles, she was the most prominent woman outside of ivanka for the president. having another woman in there would be great. i think kelly ayote has been and around circles of republicans. lost a heartbreaker for her senate seat. she has been courting around the judicial nominees. i'm thinking she might be someone brought in. i don't think it was that big of a deal made comments about the president, tone and tenor in 2016. president gotten over that with including with marco rubio and rand paul. she is very talented. i know internationally lindsey graham and joe lieberman think the world of her. so did john mccain. she did a lot of work going into battlefields two years after lieberman left. that might make sense.

i don't know if she would be willing to do it. if she wants to run for the senate again, didn't work, why wouldn't she accept position like this again? charles: nikki haley had early issues with president trump and role as ambassador to the u.n. she was never afraid to speak her mind or push back against the white house when she thought there was a difference. all this in mind, and considering how tense we are in certain relationships, particularly with the china and north korea, throw iran in there, allies on certain things, this will be critical, isn't it, brian? >> i think so. either the secretary of state overwhelms the position or works with the position. she was there first. pompeo, they respect each other. that is why you have to pick the right person to go in there. he or she has to have respect of bolton, secretary of defense and

secretary of state. therefore if they do have that the seat doesn't shrink. the shrink didn't shrink with ambassador haley, it grew but there are a lot of ambassadors to the united nations have to think twice, who are they? susan rice was. there she was invisible. samantha power was unmasking people than sticking up for america internationally if you ask me. nikki haley in there, every statement she made, every policy she trumpeted seemed to make headlines. this president is a disruptor, and rebalancer not easy to accept the position unless you brief what he believes. what about governor mike huckabee? synthesis of thought. that would make sense. charles: that is really good. >> i'm really helping your show. charles: that is why we booked you. if the president's press conference started right now we would finish this with you this segment. unfortunately we run out of time.

you were fantastic. >> you seem really nice too, charles. charles: till allison i said hi. >> if i ever meet. ashley: more headlines coming out. nikki haley the countries may not like what u.s. has done but they respect it. on more personal level, nikki haley said she will not be running in 2020, there would be some speculation. she will be campaigning for president trump. charles: wow. good stuff there. i think we still have walid phares on the phone. we're starting to get headlines out. apparently nikki haley already told president trump, it's a grueling job. a big change. a big life change. i made adjustments. i have a family. after we get some of these critical things done, after almost two years i want to take a break, time off, personal time. does that sound like a pretty good deal to you? >> yes, if it's a good deal if the ambassador has a vision for at least after 2020.

not candidate for presidency only it would make sense. in those cases when ambassador at the u.n. stops their job in new york, move immediately to another job which would be in washington. she is deciding to take maybe two or three years of a break to prepare herself for the other job. that is possible. charles: apparently will be very active as particularly a surrogate for president trump and republican party. she can be effective on the campaign trail with especially gop running behind democrats with support for women voters. she could play equally important role between now and 2020. >> i think this would be crucial. very good point. because she already traced the direction at the u.n. position, any successor would continue with direction advised by her i would imagine.

you're absolutely right, what is crucial for the trump administration is to survive. to have majority in the next midterm elections and be reelected. a role by her, would be freer and she already had very -- charles: i think we just lost walid. ashley? ashley: we're getting more just general comments out of this meeting at the white house. all sorts of things being said. the president saying u.s. secretary of state pompeo meeting in north korea was quote, great. also says at some point iran will want to make a great deal. charles: turns out there is always substance to those little teases he puts out there. ashley: sure. charles: apparently the pompeo meeting went well. he said it went well. immediately north korea said it didn't. susan: president goes on to say we have number of people would like to do the u.n. job.

you have to give credit to nikki haley, she stood down putin, iran, that is tough job for past 18 months. charles: nikki haley, america's iron la i had did i. we got news out of this. we're starting to understand how this works. president trump saying nikki haley doing incredible job. she told him six months ago she needed to take time off. hopes she comes back to the administration and can have pick of any job? >> that is pretty strong. something walid i said i would think she is great surrogate on the campaign trail. i would appoint her to house races that are tight in north carolina, ohio, pennsylvania. something brian said i like, when he brought up one of his sources i think, the radio commentator mentioned joe lieberman as a possible u.n. ambassador. charles, this is a time in

america when we need harry truman democrats again. america needs harry truman democrats. harry truman democrats believe in america exceptionalism. joe lieberman is a harry truman democrat. i think that would be a brilliant pick. charles: no doubt about it. senator lieberman is thought highly of both sides of the aisle but would he be a great advocate for america first policy? ashley: that is the issue. >> america first, go back to what president trump said at u.n. america first doesn't mean america alone. it means we work with allies on common areas of, like, for example, working with the brits and others, to put pressure on china, to bring north korea to the table, on sanctions and so forth. so i think he gets that. i mean, that, if you go back to look what harry truman democrat is, a harry truman democrats puts america first.

charles: kelly ayote, brian mentioned her. i thought that was very interesting and very well-thought out. do you think gender will play a role picking success for nikki haley. >> i don't think so. he will consult with secretary pompeo and ambassador bolton. i will say about secretary, or senator ayotte, worked closely with this administration, particularly shepherding nominees around on capitol hill that required senate confirmmation. don't forget she was a very effective and astute member of the senate armed services committee. she understands those national security issues. charles: i got to tell you, van, we're all of course still waiting for a joint press conference. we know nikki haley on her way to the white house, initially scheduled at 10:30. it will happen perhaps at any moment. we're getting commentary out

here. nikki haley herself, seems extraordinarily cordial. she said countries may not like the united states but they respect us. that is something that was very critical. hold on one second. ashley: yeah. we have more. she basically says today, it has been the honor of a lifetime. countryies now respect us. u.n. nato countries need to continue to pay their fair share. let's not forget that. north korea aid packages, we will put our embassy where we want to put our embassy. the u.s. is strong again. she cannot say enough good things about jared and ivanka. she thanks her team at the u.n. nothing is set where i'm going to go. she was governor six years in south carolina. eight years intense time. i believe in term limits. she says she is not running for 2020. will be supporting potus, president of the united states.

she said, donald trump foes on to say what a fantastic job she has done. if she wants to come back, she can take a pick what she wants to do. >> absolutely. van, there you have it. these countries may not like the united states but they respect the united states. nato paying fair share. north korean sanctions. the u.s. embassy in jerusalem many. she rivered to that, that is what she was referencing there. ashley: more news what is it going on with north korea president saying meeting with secretary of state mike pompeo and north korea was great. coming out on that, the president says they are discussing three or four different locations for another summit with kim. probably not singapore. next meeting is looked at right now. susan: president trump says he will name haimly's successor in next two or three weeks.

charles: she will stay on until the end. year. van, everything we talked about, extraordinary job there. everyone is sort of sad. we understand, to ashley's point much eight straight years of governor, u.n. ambassador, moving your family in a fight, in a battleground where we had given up causes. united nations. >> major part of restoring that respect. we don't have an administration apologizing for america. our friend respect us. when president trump became commander-in-chief, this administration inherited most complex, foreign policy and national security situation a u.s. president had ever faced prior administrations both democrats and republican kicked the can on north korea.

we were facing a readiness crisis of the military. on multiple fronts we had major problems. what the president problem miss, i don't think best supporters would have thought he could accomplish what he had in terms of foreign policy. richard nixon will be proud what this president has done on foreign policy. charles: interesting when you apply american muscle. blake burman at the white house. blake. reporter: we have some of the gaps filled in, charles. many questions are answered. nikki haley appearing in the oval office we believe on going still. haley saying simply put it was time to move on. she will be leaving at the end. year. the president was made aware of this months prior. this appears not to caught him off-guard. haley pointing this out she has been at this close to two years. before that she was in public service six to eight years. whether that be as governor of south carolina. she was in state politics as

well. simply put, time to move on. she will take time off at the end. year. she will officially hand over answer of u.n. ambassador, to the u.n. ambassador from the united states. she was very amicable, complimentary of the president and his administration and agenda and his children, saying nice things about ivanka trump and jared kushner. she addressed speculation at some point she wants to run for president. haley said she will not run for president in 2020 and she will support president trump. when you take a step back from all of this, charles. >> nikki haley leaving at end of the year, supports the president, his administration, but now the white house will have to find a new united nations ambassador. that needs to go through, senate confirmed. you know politics that is taking place right now up on capitol hill. one of the big questions is, what might be the make-up of the

senate, come at some point next year. we're told nick at this haley did not inform her staff of this until earlier this morning. she came with the announcement still ongoing with the president. it appears one the calculations was let the white house get past the kavanaugh news. that was last night with the ceremonial swearing-in. kavanaugh at the supreme court today. nikki haley at the white house announcing her intentions to leave her post at the united nations. charles: blake, before i let you go, the guessing game began obviously when the news broke. have you heard anything about possible replacement. 10:56 here. we're only 26 minutes into -- speculation at this point. the short answer is no. they will take time to -- charles: do we have it? in a moment, wee be able to see,

blake, thank you very much. see this for yourself. tape from the white house. coming out very quickly. ashley: donald trump said a couple of meetings with china has been canceled. that rumbles on. charles: really? ashley: yes. susan: asked about the disappearance of the saudi journalist that took place. he has not spoken to the saudi officials about the missing journalist. he knows nothing more about it at this point. nothing new about this. they are asking questions about everything at this point. charles: that cames at critical time where he is pressuring saudi arabia bringing down price of crude oil. susan: opec. charles: he talked openly what would happen in his opinion if america was not providing military cover for saudi arabia. you know, they simply wouldn't exist. they would be overrun by their enemies. susan: he is repeating the threat to impose tariffs on

additional $257 billion worth of chinese imports if china retaliates for existing measures. there you go. we're still talking tough on chinese trade. ashley: interesting to follow the market on those headlines. down 30 point. doesn't seem like we're close on any sort of trade even meeting right now. charles: after the meeting with secretary pompeo and his counterpart and what we saw, it was pretty obvious. the point has been it was pretty obvious, but the point has been brought up earlier in the show by a couple of guests at the for tat hasn't necessarily been now. we take china lot harder with respect to the volume and the numbers appeared anywhere from 10% to 25% on these tariffs. china's tariffs to 5%. ashley: it has been muted, cold muted for some time. charles: probably on the fact their economy is not as robust as you think it is and their consumers not able to withstand 25% tariffs on any american goods. >> if you're looking for market

reaction to the nikkei healing is, they were pointing to the current markets with instant reaction and we are. the loss against the u.s. dollar losing a bit of strength versus the european currency and the euro also gaining a bit versus the yen as well. that is where you see most of the instantaneous moves. charles: right, we didn't see it in the s&p markets because the nasdaq went much higher. s&p was negative when the news broke and even momentarily that i went positive. yesterday we had the same trading pattern without the newspaper top 150 points came all the way back and lost it all once the rally attempt faded. we went down more than 200 points and somehow between bat and the closing session there was a big enough rally to finish the delicate positive territory. we might see that again today. lot of moving parts to the market. speculation on trade, speculation on federal reserve. interest rates going higher.

a lot of questions. wall street. wall street does not like questions. they do not like uncertainty. we are not sure what will happen near-term under the next u.n. ambassador is going to be unaware we go with u.s.-china trade relationships. we hope the north korean meeting with this project to a secretary pompeo says. we are hoping everything can happen in the next couple days and we hope it starts shooting up -- stop shooting. ashley: as such slightly lower. all the major currencies because of this move up on interest rates. but a lot to digest from the market and for the most part it is just troubled water. charles: seeing rotation back. the tech names are taken a hit. nasdaq is higher, but that has been exchanged under the most pressure so far. >> we were down 234 yesterday. picture shows you how much cash there is, how much buying interest there is in u.s.

assets. charles: the irony of course is any given day we could go from panic selling to panic buying in one session. i would not be surprised to see that happen. remember folks, we're promised a press conference at 10:30. we will give it to you in about 10 seconds. nikki haley announcing her resignation as ambassador to the united nations. it's amicable. president trump knew about it. here it is. >> we are very well prepared in the incoming hurricane. we have another one coming so we've done very well. north carolina, south carolina, texas, florida, puerto rico in so many places. another one coming, and much bigger than anticipated a week ago, seven days ago. i heard for the first time it was a very small drop of whether that looked like it was swarming and now it's pretty close to a category three. we are very well prepared. fema is ready.

spoke with governor scott, spoke to everybody and i think hopefully we will get lucky, but maybe that won't happen. we are prepared. i wanted to do this because nikki haley, an ambassador to the united nations has been very special to me. she's done an incredible job. she is a fantastic person very importantly, but she also is somebody that gets the. she has been at the united nations from the beginning and work with us so they campaign. it's been a long time, very intense. she told me six months ago she said, you know, maybe at the end of the year i want to take a little time off. i want to take a little break. she's been a very successful governor of south carolina. great years.

and then she did this and this is possibly the more intense with what is going on in the world and very dangerous in a lot of things. but she's done a fantastic job and was done a fantastic job together. we solved a lot of problems and we are in the process of solving a lot of problems. at the beginning, north korea was a massive problem and now we are moving along really nicely. i can speak for secretary of state mike on pao. he thinks the world of nikki. we think the world of view. hopefully a become an ambassador at some point. maybe a different capacity. you can have your pick. so at the end of the year, nikki will be leaving and we will be in constant touch. i know whenever you have any ideas go comey because you know all the players. i was anything she did best.

she got to know the players. china, russia, india. she knows everybody on a first name basis and the like are. except for maybe a couple. and i think maybe more importantly they respect her. we will miss you. we will miss you nevertheless and we have done a fantastic job and i want to thank you very much. >> well, i want to say first of all i want to thank the president for allowing us to come out this way. it has been an honor. i am such a wealthy girl who's been able and survey country i love so very much. it's been a blessing and i want to thank you for that. we will get what is happening two years on foreign policy.

they may not like what we do, but they respect what we do. we follow through and the president proved that. whether it was made of sand and other countries want to pay their share. and the trade deal that has been amazing. they get the president means business and they follow through with that. just two years at the u.n. 1.3 billion the un's budget. we've got an arms embargo, which is a long time coming. north korean sanctions, which were the largest in a generation done in a way that we could really work in north korea. the iran deal bringing attention to the world that she can't overlook all the bad things you're doing. you have to see them as they

are. the president started moving the embassy and we will put our embassy where we want to put our embassy. all of those things have made a huge difference in the u.s. standing, but i can tell you, the u.s. is strong again and the u.s. is strong in the way that should make all americans very proud. i do want to say that it's not just the president i want to thank. the first lady has been nothing but very, very kind to me. i can't say enough good things about jared and ivanka. jerry do such a hidden genius. to redo the nafta deal the way he did. what i've done working with him on the middle east peace process, it is so unbelievably well of things behind the scenes that i wish more people knew about.

they are in this administration. i also just have to say, certainly thank you to my family. my two little ones, i adore them. they sacrificed a lot. they put a lot of time and energy into it, but they have a lot of heart and really wanted to make america proud. with that, i'm not leaving until the end of the year. my goal is to make sure everything is in a good place and for the next ambassador to come in. it is a great day in the united states and i am proud to have been part of the team. i don't have anything set on where i'm going to go. the main thing was i was governor for six years and we dealt with the hurricane, 1000 year flood, church shooting, school shooting. two con men and tutors of russia, iran and north korea. it's been eight years and i'm a believer in term limits. you need to be selfless enough

to know when you aside and allow someone else to do the job. thank you. it's been an honor of a lifetime. i will say this for all of you asking about 2020. i can promise you we are campaigning for this one. i look forward to supporting the president in the next election. trained >> thank you. >> you have a long list of accomplishments. why would you want to leave? is it really a personal decision because he been away from your family for so long? >> my family is very supportive. there's no personal reason. i think it's very important for government officials to understand when it's time to step aside. i have given everything i've got these last eight years and i think sometimes it's good to rotate and other people who put the same energy and power into it. a lot of people want to say there's a lot of reasons i'm

leaving. the truth is i want to make sure the administration, the president -- it was a blessing to go into the u.n. with armor every day and defend america and i'll always do that. i'll never truly step aside from fighting for our country. but i will tell you i think it's time. >> mr. president, why make the announcement now? >> well, nikki will be staying until the end of the year, which will be just about two years. i just think and as nick he was speaking, i was thinking when we came into office, it was almost inevitable in the minds of many that we were going to war with north korea. if you ask president obama come i'm sure he'll tell you that was by far the biggest problem with that admit right here. that looks like a real problem. iran looks like the real problem. it was a question of when they would take over the middle east prior to my coming here and now

iran is fighting for their lives. it's blowing up their inflation. their economy is in tatters. and at some point they will want to make a real deal. the ridiculous deal they made was unacceptable to me. we will see what happens. the day before and also if you look at north korea, and it was a potentially devastating problem and now the relationships are very good. secretary of state mike pompeo had a great meeting. also in china, also spoke and had some good meetings, but had some very good meetings with north korea and chairman kim and we just meant so many also. as nick he said, the world disrespect them.

in many, many decades. i just want to thank nikki and i thought this would be an appropriate way of doing it. this is the right way to do it. we really think somebody is done a terrific job. i felt this was an appropriate way of doing it. i just want to thank the ambassador. i just want to thank nikki. we have a number of people that would very much like to do it. it's a great position. vicki realized that. i think she's helped make in a much better position.

i think it's become maybe a more more glamorous position than it was a few years ago. she's made it a very glamorous position. she's made it a more important position. many people want to do it and they're very good people. i'll be talking also to nikki about that in the general about not in my staff. we have many people that are very, very much interested. [inaudible] >> not only am i not frustrated. i think it's incredible what's happening. it is amazing the way the media -- who are you with? [inaudible] >> it's amazing the way the media says for 80 years they couldn't do a thing and what are we in three months of

negotiation. it is ridiculous. as i've said about a thousand times, you have no rocket slime, no missiles find coming on the air testing. you have nuclear closings closing of different areas for north korea. are we getting the remains back to 30 started of our great heroes where we have our hostages back and i didn't pay $1.8 billion like the previous administration. i paid nothing. but i have agreed to spend time. how long has it been since we left singapore? three months or so. people say -- that is the media saying how can we be negative. are you disappointed with this? i think it's amazing. no nuclear test. no rocket spirit we have a good relationship with chairman kim, which is very important. i like him. he likes me. the relationship is good. mike pompeo had a very good

meeting. i spoke to him at length yesterday and he'll be coming back. he'll be coming back tonight. just the opposite. we've made incredible progress. jan incredible. some of it covers that accurately and right, but some of the press really doesn't. >> you want to take this opportunity to tell us when -- [inaudible] >> it is happening and were setting it up right now. part of the reason mike was going over they are setting up the meeting and we will be announcing a different locations in singapore was fantastic but will do a different location. he probably liked that. i think it would be good. we will see. we are talking prayer for different locations. timing won't be too far away. people don't realize the importance of the meeting. we sent point number one d. nuclear station.

but that was actually point number one. they've agreed to d. nuclear station. and they continue. we have to remove sanctions as you know. people said what have we done. we have very big sanctions. i'm of to remove them but we have to get something. [inaudible] u.s. soil? >> i don't want to embarrass anyone by asking. i think eventually we will have lots of meetings on u.s. soil and on their soil by the way. i think that the country of north korea is going to be a very successful country. it's going to be incredibly economically successful and i want to make it that way. i think it's going to be good. other countries, other people, entrepreneurs, things. i will tell you they are calling wanting to go there and wanting to invest. at some point when chairman kim

makes that decision he will unleash something that is going to be spectacular. really spectacular. i think he knows it and that is one of the reasons we have very successful conversations. he wants to get on with it. [inaudible] >> excuse me? [inaudible] >> i would say we will name a successor within the next two or three weeks. maybe sooner. >> mr. president, have you spoken -- [inaudible] >> i have not, but i will be at some point. i know nothing right now. i know what everybody else does. >> was her response to hillary clinton saying [inaudible] >> i guess that is why she lost. she doesn't get it. she never did. i knew that a long time ago. hillary never got it.

that is why she lost. anything else? >> what is your predicament now for the gop? >> i think we will do well. if you saw there was a 5% drop-off coming you would say there's something wrong with the president. but tonight we have a big, big crowd. but make a big announcement tonight in iowa. will make a very big announcement and i have to say the farmers are so thrilled with the u.s. mca. i don't use the word not because nafta was a disaster for our country. we lost millions and millions of jobs, thousands and thousands of factories and plants. look what happened. farmers over the last 15 years have only gone down. now they're going to go out. we just open up mexico and

canada is great for farmers. i'm going to iowa tonight and we'll be talking a little at the mall tonight. got some great things going. if you look at industries come in the steel industry's country is nothing i've ever seen before. six months since we started doing what i'm doing. they have literally revived. u.s. is opening up a plants. nucor is waiting up -- waking up everybody. it is really, really high. i'll be going to iowa tonight. [inaudible] >> very well. we have a very good relationship with china. he took out 500 billion out of our country for many years each year. we just can't let that happen. this should've been talked about by people in this chair for many

years. for years and years, and they would take about 200, 300, 400, $500 billion a year. we help to rebuild china. if we don't do that, china is not where they are right now. that is fine with me, but were not doing it any longer. [inaudible] >> 100%. if they do that, if they retaliate. they party retaliated. they take $500 billion. that's the ultimate retaliation. look, china wants to make a deal. i say they are not ready yet. we've canceled a couple of meetings. i just say they're not ready to make a deal. we can't have a one-way street. it's got to be a two-way street. it's been a one-way street for 25 years. was i to make it a two-way street. we've got a benefit also. okay, thank you.

any other questions? i just want to finish because the reason for this is mickey this is mickey, you're fantastic to me then my friend. on behalf of the country, i want to thank you for a great job. thank you very much, everybody. trained to very, very touching into this press conference. you can feel a lot of mutual respect in the room. president trump announcing that nikki haley will be leaving as u.n. ambassador at the end of the year. he had nothing but complimentary things to say about her, including at the end that she has been his friend. also acknowledging she brought a certain glamour to this job and a lot of people are going to want to fill her shoes. i want to bring now ceo global fiduciary governor, also author of the new book, a plot to destroy trump. let me have your initial reactions on this breaking news. >> well, i'm the one hand you

have a surprise announced man. i don't think anyone expected her to leave as soon. people don't stay in these offices for years and years. on the other hand, i'm not entirely surprised. nikki haley is a lovely person. she's a good worker. she's been done an excellent job as the president has said. she was never a member trumper. the fact that she's stepping out -- charles: are you suggesting it had something to do with her leaving the job? >> i'm not sure it had anything to do. i think she's tired of doing it. there is a theory on the internet going around adjusting that lindsey graham, the other senator from south carolina will step in as attorney general after the mid-terms and the governor of south carolina will appoint nikki haley to be then senator from south carolina. i can't say there's any credibility to that, but it

doesn't seem that far-fetched. charles: i saw the same thing as we were watching that feed. it's ironic because many consider him a never trumper as well. >> i think he proved his value last week. charles: it's interesting because so did nikki haley. she did a great job. i don't think we can under appreciate what she did because i've given up on the united nations. i really did. i thought it was this building taking up a lot of valuable space in new york city where people didn't pay their parking tickets. she read elevated the role and how important was to get some on the global stage. >> she has done a very good job in the security council were she's taken america first, principled realism to the world. trump has pounded the u.n. i wrote about it and gateway pundit. it was a fantastic speech. he's talked repeatedly about sovereignty bringing back this

notion of patriotism. it is not always popular in such a globalist institution for multilateralism and world government ring supreme. i think the tama trump team of south korean trump has done a credible job during the short period. >> let's talk about globalism versus trump is a peerage certainly also driving policy and politics around the world. is globalism waning? is it losing? >> it's like standing at the beach and watching the todd to go out. -- tied to go out. >> when you take the 30s house and -- and a look at world history in the context, you see a very big sea change taking place. trump is some were sovereignty, patriotism is really coming not to fruition just in the united

states, but obviously in the united kingdom. the high knee we have right fit. you see what's happening in italy and other european countries. you have the election in brazil over the weekend. you are seeing this kind of economic populism to the right as a worldwide phenomenon. that is because globalization has not produced the economic and if it that we were told for the last couple decades that would produce. charles: ted, we've got less than a minute. it's a trillion dollars enterprise. they control everything from the media to banking. they are not going to go out without a fight. what did they do that pushed back against this? >> well, you see soros and people of that and others in the united states. i would say the entire left-leaning part of the democratic party who is very globalist, multicultural, multilateralist really wants a democratic socialism. they are not going to just stand by idly as trump rushes in.

they are going to contest all of these elections coming up in the midterms. they will take on all of our candidates. i suggest whoever trump actually appoint to be his next ambassador in the united nations will find a real contest when he or she goes to be confirmed to the u.s. senate. trim to thank you very much. really appreciated. guys come in before the nikki haley "newsweek" that the biggest headline this morning would be kanye west going to the white house. the market moving between positive and negative. the other indices have stayed in the green. interest rates to focus. we still have half an hour of "varney & company" and it is still jampacked. we will be right back. ♪

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charles: repeating the major breaking news that just unfolded right here on "varney & company." u.n. ambassador nikki haley has resigned. she joined president trump in the oval office this morning. she says she's leaving at the end of the year to an amicable split on transplant. president trump said he would

welcome her back in some capacity since you can have a pic of which position she wanted. more on that coming up. the market down 91 points. just about five minutes ago. a seesaw session in the major indices higher as well. take a look at the 10 year treasury yield. higher yields of courts have been plaguing this market, pressuring after a week or so. joining us now, dennis gartman and economist peter morici. how concerned are you about these deals? >> charles, they are going higher there's no question. if you're asking whether tenure will be a year from now, 50 maybe higher. if you ask where rates will be a week from now, maybe perhaps a little bit lower. we've had a relatively excited rally in decline in bond prices probably got a little extended the very short term. a year from now i would not be surprised. charles: what does that mean for the market? >> you can be good.

it's probably deleterious to stock prices on balance no question. charles: i want to ask you about trade or the topic came up in the press conference to president trump suggesting that china keeps pushing back, 267 billion comes into play. you think we should all be prepared for some form of a stalemate. how about both? >> we should be prepared for 25% terrorists across the board for a long period of time. the chinese will be reluctant to make the kinds of concessions we need, the kind that would be acceptable to lighthizer in the pharaoh. they want real systemic change. it will be very difficult for the chinese to conceive of how the system can accommodate that. my feeling is they will try to wait out trump. they will bear the 25% tariff, depreciated currency so we need

to just buckle up and bear down because this is a long slog. charles: the chinese media has taken -- i'm sorry. they know what they're dealing with. they won't give out. the implications that the trade were goes into 2019 and even longer. >> we will just hope that it doesn't. professor morici is absolutely right. the chinese will buckle down and stick to their guns. navarro and lighthizer are absolutely wrong with their intentions. an increase in terrorist in populism is the wrong type of government. that's where we're going to not ever were going to be heading. it's deleterious to prices on balance going forward. charles: but would you tell them how to rectify the situation that everyone acknowledges has been unfair? >> returning -- making the statement that he really does intend to go to zero tariffs across the board, that we are

better than 70 others, as our economy is strong enough we can absorb tariffs from other people, we should be announcing stronger proposition on trade. anytime i hear fur trader gets scared. >> another one from you guys. small business optimism. third highest level ever. another great sign of economic strength. small business optimism something different happening in the business community. what happens from here. >> you have to look at all the sentiment indicators. they all indicate businesses fail in more robust economy and deregulation is having a powerful consequence. going forward regulation goes further with kavanaugh on the court because he's very skeptical of supreme court precedents which will be reversed like chevron to basically give regulatory agencies free reign to do whatever they please anytime they like. i think that there's going to be a very favorable court for

deregulating the economy. mr. trump can hold on to stay in office, they'll like it best. after all, what is regulation hurt the most? people least able to afford to manage it. train to dennis coming your thoughts. >> is absolutely right. what is done with the regulation should be applauded. that's exactly right in the professor is correct the people hurt most by regulation or those who truly can't afford it. charles: it comes emotive around those politics claimed they're trying to hold back. gentlemen, great stuff. peter and dennis, thank you. our next guest is working to help revitalize distressed neighborhoods across the country. they are called opportunity zones. federal tax incentives for developers to invest in them. jim scott steele, ceo of the home or commercial academy. sorry about that. we've heard about the

opportunity zones. a big component of the tax cuts. tim scott was really a big opponent and help push it through. now what happens? >> really what they are waiting for the final verdict coming in from irs so they can understand exactly how they in the treasury are going to treat the opportunity zones. a ton of pent-up demand, tremendous amount of need to president trump and his team have been extremely bullish on building in the urban core and reinvigorating what we believe is a major economic engine that can really make a big shift in our economy. charles: from what i've read it's urban core, but also rural areas. you generally don't find the capital going in. here is what some people are concerned about. he put tax-free havens in there and they tried these things in places like detroit and it does attract business, but it doesn't necessarily do anything for the locals. you bring in young professionals from the outside. they get tax breaks that nobody

gets any job skills. if you people heard the secretary of security, is there a way to make sure there's some job skills and serious upside opportunity for people in the zones. >> absolutely. what you're talking about is rebuilding the infrastructure. apartments, distribution, jobs manufacturing, construction jobs. it's sustainable. they are not able to pull out quickly. there literally is no benefit less than five years. you've got to stay in for the long haul and that is kind of the tipping point as to whether developers will move forward with this because you got to be in for 10 years. how is the federal government going to work with the banking industry to make sure you can incentivize this woman cannot penalize developers when you get to the second stage of life within a nasa lifecycle. charles: where do you see a plane out the most? there is already select cities. the fine print is being done, but as soon as i heard the deal,

i would imagine a lot of people started raising their hands. >> a lot of folks who interested, lot of large hedge funds developing to take advantage of this. the key is 8700 separate opportunity zones out there identified. >> 8700 identified by the various governors of each state and more still being added to the list. urban areas and rural areas, also first ring communities that have kind of suffered from a little bit of functional obsolescence as well. it could have a major impact and it's going to be an unbelievable program. charles: great news to hear understanding any moment now we will hear that amazon will get a 60 to $50 billion break but the richest man in the world is going to get the ultimate tax break here and we understand why localities and municipalities do this. it is good to see the end i to say hey come with got to also find a way to make similar investments in people who may

not have an opportunity right now. >> there's no doubt about it. in fact what is happening it is doing a lot of optimism. people are stepping up, lot of projects on the drawing board. many of them will not take flight but a significant number of projects that are already really ready to be released as soon as they open the stalls. trained with better wrap it up here but i know magic johnson is a big player in this. tony robbins a big player in this another's good >> will be speaking with them at san mateo at the xo this weekend. charles: thanks a lot. kanye west will be meeting with president trump on thursday. when he plans to talk about a few issues here. it's going to talk about job opportunities and prison reform. remember, kanye's wife kim kardashian that with president trump this past summer and encourage the president to commute the sentence of allan

ray johnson and he did that. google having a rough 24 hours. thursday announced google plus data might have been exposed and they knew about the issue and sat on it. they never said anything. google pulling its bid to compete for the big contract. they say working at the pentagon is not in line with the company's principals. can you believe it? a lot of people upset about that one. we will -- both have connections to the tech community. microsoft getting into video streaming service. a big disruption rather on that industry. we've got a lot more on that tory and 90 seconds. -- story in 90 seconds. ♪ cal: we saved our money and now, we get to spend it - our way.

♪ valerie: but we worry if we have enough to last. ♪ cal: ellen, our certified financial planner™ professional, helps us manage our cash flow and plan for the unexpected. valerie: her experience and training gave us the courage to go for it. it's our "confident forever plan"... cal: ...and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org. >> i'm lauren simonetti on the floor of the new york stock exchange. we are watching the shock of microsoft having a pretty nice day today. up almost 2%. here's the news. they are working on a project. basically this is the ability to play video games on any device. the freedom of the device whether it's a console or a phone. yes, you will eventually be able to play games on your phone.

they're going to start beta testing next year. based on the quality of the video you receive on your phone. that is the latest on microsoft. again, i'm lauren simonetti on the floor of the new york stock exchange. more "varney & company" after this.

charles: quick check on the big board. now meandering around the unchanged line. s&p and nasdaq are higher this session. google shutting down google plus after user data may have been exposed. here's the thing. they knew about this issue for months, but they didn't say anything. joining us now, ceo sultan interactive group 30s also worked on cybersecurity for the trump campaign. thanks for joining the show. >> thank you. charles: when you make of this idea there were some vulnerabilities here that they knew about them. they didn't want extra scrutiny from the government. >> at a little more complicated than that. the breach goes back three years. they've been spending the last seven months basically running a pr campaign to not have people look into this. they are saying finally are shutting it down. you have a deprecated to whomevt

to have that. in the face of what's going on with facebook as well as other hacks today, it just doesn't out well for google. it also doesn't underscore the trust that people seem to have had in google and the alphabet corporation previously. charles: the haste in which these products are being developed and put out there. we always understood silicon valley the first iteration of something, they always have bugs, but it was okay when it is hardware. when it something like this and we are exposed as consumers is there some to be said about the wild wild west attitude they are common with get out there, be first to make it in the game and worry about the problems later. >> i'll give you an example. my friend amanda blaine had a million dollars on google plus

was one of the most popular people out there. it was a channel you could use parallel to twitter, parallel to facebook your would have been was google decided they were going to continue to invest development dollars into it appeared as sort of fell off. the user base al austin is that there appeared the problem we have at these companies do so by something, it will sit there and forget about it and all the sudden you have access through developer apis are leaky backdoors or a variety of different poor coding practices. information becomes available. >> the users end up being sitting ducks. stay right there. we've got some more headlines from google. a top executive went on a twitter rant against republicans for their support of just as kavanaugh. the tweed is on your screen. it included multiple profanities. steve hilton, host of the next revolution. we know this is another example of liberal bias in big cat, but it's unnerving the vitriolic

nature in how embedded this attitude is. >> we've seen it all before. before you get into a come as we always do this for my connections. close friends i went there in the middle of silicon valley. i've got my own opinion and here it is. this is well known. we know that a vast overwhelming majority of those who work at google and other tech companies. the data to show that in terms of the political donations. the real point in actually this kind of really aggressive nasty language we saw that in some of the material that was published around the genes to more friendly when they published internal messages from google's own internal systems about how people dare talk about others who have different political views. the real point is there's only one real response. if you want a democracy where you have different opinions can

have equal weight. i think we need to push for a fragmentation in tech, just as we sing a fragmentation in media and that's the problem here is these monopolistic tech companies. we shouldn't want such engine google. that is the goal we should have. charles: that's a good goal but it may not be economically attainable. they have with their employees they can do in their personal capacity has no bearing on their products or how they approach business. i want to bring up one other thing that ties all those together. google announced that they were dropping out of the competition, employees we know how to check into working with the military and apparently with the dragonfly product, seems like they're okay working with china. >> this is really, really so offensive and should be to every american. google is not prepared to work with her democratic governments to advance democracy.

but they're perfectly happy to cooperate with the world's worst authoritarian regime to crush democracy. these are the people that stand up and lecture the trump administration on its values and ethics. charles: it nuts. we heard a lot about this dragonfly yap and even vice president pen asked google, please just give it up. here's a pentagon contract obviously would've been very lucrative and they turned it down. >> we talk about china as steve mentioned us as a country destroying churches, pitting muslims in internment camps. you know, destroying everything we can to stand for in terms of our values. they are happy working with them. on the same token they are not happy working with the dod. not happy supporting our government. they are not happy supporting american values. the challenge becomes theirs. it's also a battle for cloud companies. we are now moving into the next phase of this which is cloud and blocking technologies.

charles: but the point is the lucrative area despite that google's animosity towards this white house is so -- they don't even want a part of that. i've got us a thank you both very much. appreciate it. the midterms of course within a month away in one topic you want to republicans talk about is upon the care. the gop at all but abandoned the issue. individual enrollment is down. first, we have this for you. check it out. an astronaut captured these friend the international space station. the sunrise 220 miles above the earth. you only get that kind of stuff on "varney." stay with us. ♪

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and again saying republicans don't care about preexisting conditions. of course that is not true. the republican replacement for obamacare provided the money to care for people with preexisting conditions. here is what has happened right now. 3 million people dropped out of the individual insurance market. on the cost of uninsured. the middle-class people ineligible for subsidy earning more than $46,000 for a table can't get even a partial right much less a free ride they are stuck by an introduced. charles: republicans don't touch it because it's the idea you guys are in charge now. >> it's a complicated issue. the basic story as is democrats wanted to provide for people with existing conditions by forcing insurers to charge healthy people. for that reason, premiums went very high in healthy people got nothing but good all of their

money was going to take care of the sick. republicans have another solution. general revenues, tax revenues to care for people with preexisting conditions in five states are doing that very successfully bringing premiums way down. down or denying an. unfortunately, they were unable to convey that, so they've given up their big selling point now is the economy. stock market up 42%. charles: at some point you've got to come back to health care. because the economy is going so good, this is remedy. everyone with preexisting conditions using general revenues and brings premiums way down the way they been brought down in several states. alaska, oregon, minnesota, maine, oregon. charles: you are the expert. you've done more work on this than anyone else. great work. great seeing you.

listen, more "varney" after this. ♪ . .

charles: quick check of the markets. remember yesterday, folks t was really a remarkable day. we were down 150 points out the gate. the dow crawled all the way back. it clawed, got into the positive territory but could not seduce any extra money off the sidelines. consequently we dropped almost 250 points. came back again. we're in the midst of something very similar to that. that is the big news along with nikki haley. susan, what do you think? susan: nikki haley is great female roll model, she was eloquent in the u.n. and stood strong in the u.n. security counsel aamongst iran, syria, north korea, and china.

charles: when she went to work every day she had to put her body armor on. she was amazing warrior. to your point, president trump said she made the job glamorous again. a lot of pressure whoever fills those shoes. neil cavuto, we give you a little bit of a rally. neil: we're following the nicki haley developments. people are stunned at news and taking it at face value. they are be looking at housing market and housing-related stocks back up in rates. first on the nikki haley fallout, what happens now. blake burman at the white house with. reporter: seems every friday afternoon a departure would come at the white house come via tweet or some breaking news, in some other form. the white house moved to the press releases that were rolled out. today instead the u.s.