midterms. that will have impact on market potentially before the star report 98 and market fell more than 19%. but then recovered all of that even during inpatient proceedings end of november. >> lots to watch great show thank you so much. dagen, james, morgan have a great day everybody. cease the day. "varney & company" begin now. take it away. stuart: cease the day i like that and grab it off you. okay good morning maria. [laughter] and good morning, everyone -- first thing today, fresh out of the box, we have a presidential tweet and it's a sharp edge to presidential tweet on the migrant caravan. he's upping ante look at this in addition to toking payments to countries who have no control over their own population i must in the strongest of terms ask mexico to stop this onslot and if i'm able to do so i'll call up u.s. military a close southern border. i call that pretty strong stuff and at this point caravan is growing in size and heading for

u.s.-mexico border if it is not stopped it arrives right around election day. more news from the president, he's going where no politician really wants to go. cutting government spending. mr. trump are is asking for a 5% spending cut by almost all government departments. and there's more news coming from the white house later this morning. mike pompeo will be there to brief the president on saudi situation. what did the powerful crown prince know and when did he know it? and "new york times" today says intelligence officials are increasingly sure of the crown prince's involvement as for markets quiet as we move toward start of trading a loss on the dow of maybe 09 maybe 100 points roughly around 25700. now then, please do not take this as an ad for the lottery but the mega millions jackpot will be close to 1 billion dollars for tomorrow's drawing. i'm not an antigambling putin

but way of taxings people don't give them your money. "varney & company" is about to begin. ♪ >> going to cut some spending. we are going to cut spending absolutely and we have -- it is not as tough as you think and frankly there's a lot of fad in there but we had to get the military donees last time. >> he said it that was the president during our interview yesterday at the white house. about an hour after we spoke, he told his cab knelt he wants 5% cuts in all departments except the military. we'll have more on that throughout the program because that's news. first, though, new fox polls for you, let's start with the approval rating ash. >> pretty good. up to 47%. that's almost up to the 48% level that was the actual high since he took office back in february of 2017. so 47 approved.

the low by the way was 38% back in october of 2017. so year ago it was down to 38% he's up nearly 10% from there. i'm seeing 49% handling of the economy that is the approval rating for the handling of the my which is his strongest category by the way according to fox news. 73% of republicans rate economy positively. even 33% was democrats rate it positively. i'm trying to put it 67% don't. however, the economy is strong suit in the -- outlook donald is dying to get into this. the president trend line sup for him and he's about where reagan was in first term at this point including obama. and clinton better than obama right now. >> elizabeth pique as in liz pique is here this morning you saw polls that we ran there. would you say this is the result of the president's media blitz? >> i think absolutely more that he's out there touting the accomplishments of this white

house the more people startle and say they have cut taxes. they did all of this deregulation. when he talks the economy that's, obviously, his strong suit. and what he really needs to be reminding people is it can go the other way, wall street journal had a good editorial this morning saying this is not baked in the claim but continue, the democrats take office they're going roll back deregulation move they're going to roll back the tax cuts and we're going to see a change in this so it is important that he's out there. i think it is better what he -- energizes his base and people voted for him by minding him that trump agenda is intact but there's a lot more to be done and infrastructure, there's making these tax cuts permanent. all manner of things that are on agenda and if the democrats take even just house it is not going to get done. >> got it liz stay there please. let's go back to that trump asking cabinet members to cut 5% off their budgets. joining us now brian brenburg business professor at the kings college in new york.

i have this strange idea if you're going to cut government spending way to do is is through executive branch and say cut it opposed to going through legislative branch saying cut it and they won't. >> any way to get it done go for it. i'm not convinced that will work but ultimately congress these to be a part of this. democrats are going to howl. they do not president to balance budgets based on spending cuts they want taxes to go up. one thing you cannot do is raise tacks i would love he's going of a this before midterm putting on the table. that is what we're about balancing this budget. >> but you know, it's that's what a business guide doesn't it? you say to your vice president says you have to cut the budget. >> especially when you're running deficits like this we're talking about 5% i would love to see the left howl about this. because it shows just how fiscally responsible they are. >> he's showing leadership to your point. >> but you would be starving

children and poisoning water and throwing old people under the bus. >> of course you will you can't cut spending doapght you know that. whfnlg debt rises by 16 trillion in ten years, then you tell me what kind of problems we're going to have and they're a lot bigger than problems that we have now if we start cutting budget responsibly. >> i think it was 10 trillion in eight years. >> i think we're -- no 16 trillion dollars increase in the debt in ten years already going up. >> yep. just ten years and 11 trillion of that from entitlements stuart. >> okay. >> numbers. supposed to make you happy. cut that spending all right got it. i want to get to minnesota. where two gop candidates have been assaulted in suspected politically motivated attacks. liz. that's you've written about this. i mean, this is very close to the midterms what impacted it? >> wellening this all sort starr came to be a topic during kavanaugh hearing where you saw not just agitator and activists

protesting in sometimes violent ways but also the leaders of the democratic party calling for more. meaning you've had cory booker and maxine waters eric holder all talking about give them more. tbet in their face, you know what americans don't like this americans like to think what aware going to settle our disputes at negotiating table or in debate but not slugging people now the bad news about something like these two minnesota candidates being physically assaulted is a little bit tree falling in forest if there's nobody there to report it maybe it doesn't make a big wave so other than fox, bill very interested to see who actually reports on any of this. i checked on "new york times" it is not there. you know, it's not washington post, it's being carried on right wing conservative news organizationses that unfortunate because i don't think think a lot of americans are going to see it. >> cumulative it is a sort of growing tendency on the left to bad behavior reckless behavior and now physical violence i

don't know anyone can condone that that is absurd. j backfire dreadfully for the left. let's be honest. to your point liz, tactics like that backfire and seeing that, we saw kavanaugh hearings and now getting individual tax all of that plays right into the gop. >> ashley point elections are one in the middle this makes people feel unsafe. and picture worth a thousand words and other picture we're about to get is this caravan of 14,000 people or something -- i'm sorry 4,000 coming towards the border. that freaks out americans and rightly so. the idea that we have absolutely no way to deal with it and we're unprepared for it and here they come, about i think those pictures are very disturbing to people. >> very powerful -- those pictures are powerful politically. >> yeah, it is a lack of rule of law this is a rule are of law nation. that's what we're supposed to be -- used to be. exactly. that's what i would say this morning the a block thank you very much indeed i'll tell you what we've got going, opening

the market of course we're down about 100 point. 25,600 will be roughly where we are. two dow component reporting today. travelers we've got their numbers they beat on profits, the market, though, as stock is dead flat this morning. that's travelers american express they come out out with their numbers after bell this afternoon and what we've got there is another dead flat stock 104 on that. tesla manufacturing chief, has reportedly left the country. down it goes again. now tesla is back to 268 for loss of three bucks that's premarket okay. netflix after yesterday's blur out numbers they did very -- they go up or down yesterday? >> they went up initially yeah on big numbers yeah so they went with up yeah -- 8, 9, 10% this morning there's a pullback down three bucks down 361. now, president trump he says he'll close the southern border that stop that caravan from entering america.

we'll get into it with the rnc spokesperson and we'll have ask general what would he think about using military to close the border as caravan approaches. we have this also most displayed computer game in the world league of legends. there's an international competition about that game and it is underway. this is the e-sports revolution we'll get into it, for you. 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.

better profits better sales at phillip morris make marlboro cigarettes investors like it it is up 3.5% nice gain there. mitch mcconnell says senate republicans might revisit an obama care repeal. tell me more. >> he's saying it is a disappointment we didn't do full obama care repeal chuck schumer and democrats are saying you're attacking middle class families watch this obama care premiums have drop 1.5% but that's

because it is compared to the prier year when ensures jacked up premiums but that's a context here. but it is sharp reaction from schumer is it a talking for democrats as they go into mud term so watch that democrats have more seats to defend 26 versus republicans nine. there's partial repeal they've got rid of the obama care mandate and waivers alike so he wants full on repeal. >> full on repeal stopped by late senator john mccain. that stopped in the senate. well, senator mccain is no longer in the senate he's passed. maybe mitch mcconnell thinks with a different majority in the united states senate, it can repeal it. >> that's 20 million people have gotten obama care coverage the fact is that premiums higher and deductibles are higher across border looks like yes so senate republicans have case there. inch hope they have a plan. in its place that would be good wouldn't it in president trump did caution against blaming

saudi arabia for disappointment disappearance of khashoggi before an investigation is completed. roll that tape. >> hopefully it is looking out we'll find out we'll get down to the bottom of it. i hope that the king and crown prince didn't know it be. that's a big factor in my eye and i hope they haven't. >> secretary of state mike pompeo reports to the president about the situation like on this morning joining now is jack this is all about retaining an ally to help contain iran. that's what this is all about, isn't it? >> well, yes. that's certainly one of the central challenges that we have. certainly in the middle east it's also about the fact that, clearly we need regional stability and you're talking to that. but also oil is sustaining the global economy. half had of the world depends on oil coming out of the middle east and we're also trying to keep a lid on islamic terrorism and the new lease that is breeding ground for all of that

so you put all of that together, and we've had a 70 plus year relationship with saudi arabia and this largely about trying to maintain stability in the middle east and being anchor for last pl years against iranian aggression. >> no matter what whatever punishment we meet out to scraib saudi arabia we're not going to break thatdon't think there's as calling for that except very few congressional leaders will advertise that. as a policy, it doesn't make any sense. look, something horrific is happened here. it is beginning to set back to relationship for sure. i think stuart it will actually change a relationship to a certain degree. because i believe our policymakers once all said and done and facts are out there will set some conditions to this relationship going forward that are different than what we have held them accountable to in the past and by that i mean we're

going to want this regime to be more transparent with us to be more accountable to us so we can trust them more than what has been had happening. and i don't think we're going to just continue on the way we have been in the past but we will not get a divorce speak with this relationship. >> general, as a military man, i want to quote the president's tweet on the migrant caravan this morning. and just a few minutes ago this is what he had to say in addition to toking all of those payments to these countries which seem to have almost no control over their population, i must in the stroppingest of terms ask mexico to stop this onslot and if i'm unable to do so, i will call up the u.s. military and close our southern border. would you like to see the military get involved in this, general? >> well as best i can tell there's nobody coming across border to have guns in their hands and threatening the american people directly and that's the job of the united

states military to protect us from that kind of an onslot. i share the president's view 100% that we have an open border and we don't have the sovereign country with an open southern border like that where people can come across to seek refuge any time they want. so what we really need is the congress to pass laws that can support the border patrol and custom agents and therefore enforce a border policy that makes some sense. >> it sounds almost like -- >> it just sounds almost like not desperation that's the wrong word. but they're approaching, they will be at the border if they're not stopped they'll here what 18 day election day and this is a crisis. >> well, i also think there's likely some political things going on here. but i'm not an expert where they're coming at a time when election is arriving i do think he's right to appeal to the countries that we -- are providing aid to solicit

their support and stopping these people from coming across and certainly from mexico itself. but listen, yoim, this problem is -- is so much larger than these 2,000 we with just -- we just heard from the -- secretary of home ladged security and services say we have 13,000 youth no entered krnlgt by themselves last year and we are with taking care of them. that is the problem we have with this open border. we -- the congress of the united states has to act so our law enforcement officials can do what is prowngt and united states military to do something like that. >> general a pleasure having you on the show thanks for being here sir, appreciate it sir. smg good talking to you, stuart. check futures we're going to open down about 120 points another huge loss. but we're with on the downside this morning.

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real fast where's the price of gold this morning 1,227 per

ounce. barely changed all right let's get to this mega millions jackpot. ♪ what a scheme. there are here we go. 900 million dollars right now second large willest jackpot ever. let deal request this fast what are the odds? >> for mega millions one and 302 million let's not forget that powerball is up to -- 430 million. so what are the chances of winning both which would come out of 1.3 billion and they take numbers on this one many 88 quadrillion 88 and 15 zeros. keeps dreams alive. >> first of all odds are irrelevant. how do i look at the odds i don't think i'll manage those odds i'm not -- rubbish. don't buy odds who in their right mind would buy a lottery ticket? point number one, you put in a dollar, and only 50 cent that have dollar comes back in prizes and if you're win you're taxed

to the hills so government will take probably 75% or told of everything that comes into the lottery. >> it really hurts the poor. it hurts the poor. >> take away our dreams stu. >> what are the thrill of scratching off the thrill for that moment to spend a buck or five bucks to get the thrill are you against thrills? [laughter] >> a thrill of -- gets a thrill of saving one dollar. >> i love -- i hope we have 30 seconds i want something. ever heard of numbers game that was illegal betting on last three digits of the dow jones industrial average every afternoon used to be runners all over new york city every major city in the united states of america. you sign up and want these three number use play numbers. there was they paid out like 90% of everything that came in, and you're winnings were not taxed that's a deal. so government takes over, and it is -- government got involved they wouldn't -- i digress. that is the worst. [laughter]

>> going it open down about 100 points. be there for it after this. there you go down about 120. we'll be back, i promise. i think those my numbers.

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morning. dow was down about 90 points yesterday by the close that is. and what we're looking at now is a future's market that indicates another loss of roughly 90 to 100 points so we're around 25,600 level as soon as that bell stoppings in my ear and now ladies and gentlemen we're up and we're running a horse race, check the big backward and other gang we're down -- okay 65 points 71 points, 68 points okay we're down 75 that's not a huge loss on a 25,000 index down 830 as we speak. that's about what a third of one percent. the s&p 500 where is that in the early going? it too is down about a third of one percent. similar los. nasdaq composite always say it that's the technology companies, and that is down to same amount one-third of one percent so we're dun a third of one percent across the board. tesla, down today. the company is vice president of

manufacturing has reportedly left the company. we'll have more on that in a second but that stock is now down again. who is with me keith fitzgerald is here brian and brian stick arranged thank you. liz claman and ashley webster altogether now. so obvious question has the storm passed? keith. what do you say? >> not quite. traders are still sorting out their or short-term vision. but longer term their earnings are going to drive this. >> okay not quite done yet. when it is done, where do we go? up? >> i think we have a sharp run into 2019. once traders get them out right now. [laughter] >> technical term. >> no are on that. >> what do you think sports fan is worst over brian? >> i think there's too much uncertainty with the fed here. these guys don't know what they're going to do in 2019 and investor don't know and getting worried on a weekly basis this

does not end for a while. stuart: should i sell my microsoft. >> you're not going to -- >> i was reading note this morning traders upset with feds saying way too aggressive with with rates going up but tightening their balance so they're taking liquidity out of the system when they don't have consumer or wage inflation and no need for them to be as aggressive if you believe they're being aggressive as they are that's upsetting market. >> ashley webster fine answer -- what a job. liquidity? >> no buzzer on that either. let's get serious let's look at tesla as we mention the vpght of manufacturing reportedly has left the company. keith, this is a stock of mounting of news and bad publicity the stock at 268 what do you ?ai >> delusional. human resources, about county

out lawsuits all over the place. to me this is a stock that is -- fueled by nothing more than hope and dreams because reality certainly is a very different equation. >> looks like more than about 40 executives have left tesla this year alone. you know we're talking number of levels but here's the thing is elon mufng the reason why tesla is to raise a billion in cash and wall street analysts estimate so elon musk will raise to go out to raise the money that it needs. >> if he wasn't there they wouldn't be able to raise the money is that what you're saying. >> but elon musk is a unicorn he needs someone to manage him and yes, i have is unusual jeff can manage the company. so tesla needs somebody to help manage company along with elon musk with his genius ideas. >> liquidity unicorn we have it all on this show. ebay suing amazon allegedly amazon was poaching sellers on ebay.

i'm not quite sure i got it. >> details of this are really harsh toward amazon. ebay is in a sangt clara court saying weapt jury to punish amazon for systemically operating out of head quarters push by dozens of its basically -- people who were trying to poach ebay third party sellers that's how ebay model is. it is based on third party sellers i think half of amazon unit sales so those are guys who keep the money in coming in, and ebay is saying you infiltrated our messaging system amazon. and started trying to poach our guys cut it out and they're suing. >> that's interesting now i got it, liz well done. hard for me to understand that. but that was very good. now we're down 150 points we're 4 and a half minutes into the session down 154 that's about .6% that's a lot. netflix check them out this is remember there was a pop yesterday because they expanded their subscribe or base.

they're down 6 buck this is morning at 3.58. ibm were way down yesterday their revenues missed down a bit. look at that 132 on ibm down a buck 34 as we speak. now travelers they reported it their numbers earlier this morning. their profit was up because of catastrophic losses which were lower. less -- the stock, though, barely doing anything down 50 cents. better at aluminum company of americas look at that up 8% 39 dollars share on alcoa. data breach that was discovered at facebook was spammers. not hackers. and these spammers were not working for a nation state. does that make -- no. >> who cares? >> better from a spammer than a hacker doesn't it make it worse because you think nation state would be more sophisticated at doing this but these are smallers 30 million who cares who it is from fact is facebook

is getting mit on a regular basis here. >> keith this thing hasn't rebounded i remember facebook was up at what 220, 30 at one pongt now it is right -- 150. what do you make of this? >> i think there is serious trouble. you know, i think zuckerberg is in over his head spammer hacker or third party all about semantics problem is they can't control their data or the security and it is still -- >> that's the bottom line isn't it? they can't control -- trying to get in. to get in. can we stand another apology tour from mark zuckerberg about it. they can't. it is enough already. it has apologizing for ten years. >> there's mutual funds which hold facebook stock right and some of them are getting together and saying disuk disuk disuk -- you're out. no impact on the stock except it is around 150 there you have it. look at the price of oil this morning. facebook now is 156 where's the

price of oil this morning about what 71, 72 a barrel. no -- it is 68 a barrel. >> stocks are bringing majority down with tech today. >> i'll bet they are. meanwhile price of gas just edges slightly lower 280 per gallon and not going to get to 3 a gallon. >> we can i think we are. we have things going on with scraib and middle east this does not help when it comes to price of gas it is going up before down. >> down to 68 -- i don't know. trouble in all of the rest are it have. i have short-term move i think longer term this issue will stick around with saudi arabia to push oil up. >> you think. >> i think so. let have a look at the market we're now down 157 points in the very, very early going. this intrigues me. president trump asks cabinet members to cut 5% off their budgets. if that would have happened, keith -- we were talking there with the

president yesterday about cutting spending, and this came up cut budgets by 5% in government departments. if this would have happened keith you think that would be good news for stocks? >> it depends on how it is cut stuart if they're talking about underwater and no value to the consumer economy, then there's not going to be a blink but if it is serious stuff where you're talking about defense spending talking about certain kinds of insurance million technology near and dear to how this economy works then it has going to be a significant impact. >> into trailer rental -- okay. >> actually is just a hot story. iewber is not making my money and supposed to go public at 120 billion are they a one trick pony with just passenger rides über is saying no. small to mid-level truck arers through the waiting arranged with empty trailers, and über saying come to us. you can work with us to basically get money, make money,

by trading cargo across the country, and anheuser-busch is hooking up with über trailer division to deliver to get iewber to deliver beer. >> a good idea. >> good idea what's with that? nothing. nothing über 120 billion dollars. buy a lottery ticket. [laughter] >> you have to do it. sorry. sorry i think i'm right, however. it's that time ladies and gentlemen i have to say thanks very much indeed to the good professor and you keith out there on the west coast where it is not raining apparently. >> great to have you guys with us. i'm in a sarcastic mood. don't buy me one and give me one. i'll take it. [laughter] truth finds out there we have. down 150 point check that big board we are nine and quarter minutes in. got it. look at this. ♪ what you're looking at is the mashed potato index grocery store guy steve says sales have

prepared food like mashed potatoes they go up. when the economy is doing well, if you get your potatoes and you have to peel them yourself, that means the economy is not in good state. i mean that makes sense to me that makes sense. >> mashed potato index. there you have it. man many himself stew leonard is coming in on that one. how about this, u.s. treasury employee arrested believed she leaked information to media about former trump campaign staffers we have details on that for you and caravan migrants from honduras growing 4,000 now marching towards america. what needs to be done about this? well we're asking the question we'll answer it clearly. every k questions. is our money in the right place? what am i really being charged? and is it eating into my returns?

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all right we're holding on to a loss of 100 point for dow industrials 25,500. now, mcdonald's and others getting failing grades that's my headline that i'm reading here. suzanne down at exchange pending grades for what, suzanne? >> tome antibiotics in its beef patties that they use failing grade an p for sonic jack in the becomes and even in-n-out burger which i frequent when i'm in california so that's a bit disappointing but on flip side the only two burger chains a rating is shake shack and burger fi no medication, no antibiotics in their feed for their livestock that's an a for them. wendy's gets a d because 15% of some antibiotics in their feed that they go into their beef patties but you know let me leave you with this stew so a failing grade f for mcdonald's but i'll give you an a for your show yesterday in d.c.. >> suzanne thank you very much indeed thanks a lot. that's how i appreciate that.

extraordinary day i have to tell you. more on that, of course, in a moment. now there's a treasury employee who has been arrest ad it charged with leaking financial information. tell me more. >> financial transactions known as suspicious afnght reports this individual her name is natalie edwards 40-year-old treasury department worker -- these are financial transactions involved with trump campaign chief paul manafort and richie gates and russian embassy what's kind of dramatic about this she was arrested late tuesday. and apparently had a flash drive on her containing allegedly information literally in hands. so it would be hard for her to explain why she has that information on her and flash drive but accuse of leaking this information to the media. got it. >> thank you very much ash. >> you're welcome. >> let's get to that my graduate caravan headed to our southern border and president was tweeting about it. strong stuff, first thing this

morning here's the tweet. in addition to stopping all payments to these country which is seemed to have almost no control over their population, i must in the strongest of terms ask mexico to stop this on slot and if i'm able to do so i will call up u.s. military and close our southern border like i said that is strong stuff. steve hilton is with us he's the host of the next revolution, that's the show on the fox news channel. all right steve. i say that is pretty strong stuff. and i mean i don't know what had else the president can say because here they come you can see it coming at us. >> yeah. i think it is strong stuart but reasonable. given what happened look i'm proimmigration. i think it is good for the economy, it is good for our society but it has got to be controlled you can't just have a free after all that anyone who shows up at the border comes in. that's not actually fair to the people who we want to give priority to in terms of their skill or their need or whatever hardship they're in so you've got to be tough and you have to be fair but you have also got to

be competent that's one thing to remember because when the president and his administration put in place that policy earlier in the year which again was tough. trying to deter people from coming in but ended up in a mess and that wasn't good for him or administration so he's got to back this strong start up with really competence administration. >> but he's also pointing out that democrats he's calling out the democrats, in fact, because they don't know what they're going to do but actively encouraging these migrants these caravans. there's a heavy dose of politics in what had the president is saying look at that video this extraordinary stuff they're just marching north. this is very political. >> yes. and that fair enough as well you have a very important election coming up. congress actually, controls immigration policy. and so perfectly reasonable to point out the choice here. that if you elect democrats, you're going to get a party in power that for whatever they say, they really do by their actions and votes show that they

believe in open borders. now, they say oh, that's too extreme we don't believe in open borders come on stand up for the president's idea of blocking border if this continues. >> i think we're exactly on the same page on this both immigrants we're both immigrants from the united kingdom, and i think both of us have some sympathy for immigrants and we also have -- some humanitarian feelings, i mean, the poor and oppressed. come on in. we like that. but at the same time, we want some order in the immigration process. and we don't have it at the moment. >> it has been a mess and a shamble but out of control for years. it is exactly right stuart. i think generally that's where the public are. there's real consent for immigration if you have control of immigration. but you have not had that control for a long, long time, and president trump i think, will have the public's backing if he imposes that control in the fair and reasonable and above all competent way. >> forgive me for saying it steve. but i felt pretty good yesterday

sitting in the white house and having the president of the united states just drop in and put his arm arranged me and about say, you're not so short stuart, you know, and i think -- he did. he towered above me. [laughter] in the shots -- have you ever been in the white house? >> i have enough i was there the other week i met some of the policy team there we have really good discussions and you're right it is a complete thrill and privilege that makes you feel very, very special. >> we feel special don't we, ?eef we're on fox. [laughter] steve hilton we'll watch your show and that's a promise thanks for being with us sir. >> good to see you still down 100 points coming back a little now we're down 10. remember that deadly boat accident over the summer. dreadful tragedy, the operate is being sued that operator is trying to use a 167-year-old law to get out of it. you've got to hear this one.

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well the lows of the day but still dun a half a percentage point and dow is off 120 as we speak. we are spending less. we are saving more. i'll hear more about this. 66% of americans stu are are

spending less. now why are they doing that? some would say biggest reason is a lot more people have debt to service right now but many more people are saying i need to save more 36% of americans are actually saving money for their not spending in other words putting aside because according to bank rate.com you're not so sure about these surveys like lottery. but -- of the remarkable number of americans 5-50, 60% could not cover a 1,000 emergency. which is a real problem when you start to think about people retiring are they going to have money to retire and be able to live comfortably i wound per we're getting fed up with buying all of this stuff. you know how matter of stuff. >> consumer fatigue and of the generationings millennials are most likely to put money away now for a rainy day. >> millennials very good. 40% of millennials are tightening belts and saving money. fascinating? you go.

doing much of aligned -- >> not playing lottery but salasing saving money. serious subject there that deadly dock bet and operator is being sued trying to avoid liability with a really strange legal maneuver. >> it is messy they filed a complaint to combine lawsuits 17 people died and this is they're going to use a -- 19th century federal law they're going to try this. basically, that law limits the liability against ship owners in maritime casualties basically to the value of the sunken vessel. >> awe. so that would massively reduce the amount of payout now 17 people died in july when this duck boat sunk in a storm on that lake in branson, missouri. they've tried to the company is richly entertainment tried to settle alleviate out of -- with families affected. that is not helped. not been worked out so they're

going to a unique 18, 19th defense law from a law that reduces liability to the value of the vessel that was sunk. it is a maritime law. the question now is whether the court in missouri will say, yeah. that is -- that's okay. also whether the jury would actually say okay that's fine. you can limit the liability on that. but was there punitive damages could that be introduced because of the operatorses you know, actions on that day when the storm hit the lake? >> that's an interesting maneuver in itself. >> obviously we'll continue to cover it because it's a dreadful story. >> all right hillary clinton, elizabeth warren, cope making hell hads and every tim they do, it seems to hurt the democrats. meanwhile, president trump is on that media blitz and that seems to be helping the republicans. quite a contrast. my take on that is coming up next.

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stuart: what a contrast. hillary clinton, elizabeth warren, they keep maked headlines, they won't go away and they seem to be hurting their fellow democrats. and then, there is president trump. he is everywhere. he makes three headlines a day but he seems to be helping the republicans. who would have thought? could it be america is getting used to our larger than life president? could it be america is tired of former candidate clinton and probable future candidate warren? sure looks like it, doesn't it? i never expected to read these two headlines in "the new york times" but here they are today. number one, hillary clinton master class in distraction in the "times"? two weeks since clinton said you can't be civil with republicans. that statement keeps popping back up. look at this one, again in "the new york times," elizabeth warren and the folly of genetic ancestry tests. it has been a week since her dna was splashed all over the media.

it won't go away, it is not helping her or the democrats. what a contrast with president trump. right from the moment he came down the golden escalator to declare his candidacy, he has been provocative, outspoken, insulting, oh, so different from anyone we've ever seen in politics. recently he picked up the pace as the midterms approach. he has been all over the place. dramatic news conferences, huge, raucous rallies. he never misses an opportunity to make a headline. like clinton and warren he won't go away but unlike clinton and warren he is helping his party. i think america is getting used to him. it drives the trump haters crazy but the trend is clear. the republicans under trump are gaining ground. the democrats distracted by clinton and warren are losing ground. 18 days to the vote. second hour of "varney & company" is about to begin. ♪

stuart: this is happening, breaking news. secretary of state mike pompeo is at the white house right now he is briefing the president on the saudi situation. what did the crown prince know, when did he know it, was he involved? we'll bring you any headlines as soon as we get them. first though, just got the latest -- this is important, got the latest read on mortgage rates. ashley: they have been going up every week, actually going down this week. 4.35%. that is down from 4.49%. these rates going up have softened housing market. rates are above 5% in some areas. demand is there. prices are going up on housing. hard to get a down payment. with higher rates on mortgages, it has an impact on housing market, but a slight decline this week. stuart: we're not quite at 5%. ashley: 3.85 is not bad. stuart: i thought we would get there. we're not quite there at this

point. got it. as you see on the screens, selloff of about 2/3 of 1%. we're down 166 points. caterpillar is the biggest drag on the dow. it's a dow stock of course, down 2 1/2%. check out ibm, big drop yesterday, it is down some more today. ibm now at $132 per share. as for big techs, all over the place recently. check it out today, all of them are down, facebook, amazon, apple, alphabet, microsoft, on the downside. not huge losses but they're down. now this. president trump has asked each of his cabinet members to cut 5% off their budget, except the military that is. kellyanne conway actually broke that news on this program. roll tape. >> he is asking them to cut the fraud, the waste, the abuse, cut the fat, not cut the essentials. this is president who signed the last omnibus, don't send me something like this again i won't sign it. he felt it had a lot of waste in

it. stuart: he is cutting. wants to cut. gary kaltbaum, kaltbaum capital management guy. fox news contributor to boot. ain't that right, gary? >> correctmundo. stuart: you have to love love this you've been banging the drum on deficit and debt bomb, maybe we'll get some spending cuts. >> i'm thrilled. let's see if it gets done. the biggest problem, we talk about it a lot, they don't start running after entitlements the whole bloated government. the last year of clintons federal government spent $1.8 trillion total. this year it will be like 4.2. we're only going to send them 3.2. that is where you get the trillion dollar deficit. all i can tell you, these deficits are running up on zero percent interest rates or higher. if interest rates going up with a lot of short-term bond coming due, replaced with higher rates, look out. stuart: you have to like the idea that the president is leading on spending cuts.

that is the third rail of american politics. >> it's a first. i haven't seen this in a long time. to come from the president, i am hoping all the republicans get in line. i'm not sure the dems will even though they should. the size of government is a gargantuan headwind for the economy. i know the dems won't -- stuart: kaltbaum, there isn't a democrat in this country will cut period. they're in for raising taxes. that is how you take care of the deficit. that doesn't work either. >> i got to tell you, i'm so amazed, midterm election, their mantra the democrats we're going to raise taxes. they will win elections? the messaging from the republicans i would just be yelling and screaming that one line. i don't know why they're not. money out of your pocket, we're taking money back out of your pockets. stuart: they don't look at it that way. >> looks that way. stuart: taking it from you rich guys, giving it to all the rest of us. >> got news it comes from everybody when all said and done, economic going slows because of it. it hurts everybody from bottom to top.

stuart: you're right on that, gary. >> yes, i am. stuart: i will ask you this, is the worst over after this volatility? >> early september i told you if we get past september and october earnings i think we have good end-of-year rally. i think we have a good end-of-year rally in september. there is nothing i like the way the market is trading now. one little thing showed up yesterday. netflix, boffo earnings. up 30 on the open. finishes only up 17 and is down more today. we don't want to see more of that. we're in earnings season f we see poor reaction to earnings more of ibm, unitedhealth goes up $10 on earnings, drops six yesterday. not good news. the market is flushing out higher rates. flushing out higher energy prices. i think you see some guidance the next two weeks come down a little bit. so i'm not thrilled. stuart: should i sell my microsoft? >> you've been asking me for about a year. no. the ceo is doing a magnificent

job. the size of this company the growth they're getting is magnificent. they were able to segue into the cloud. a great future going forward. stuart: that is microsoft, one stock. >> right. stuart: address our other viewers who probably have other investments which have done rather well for them, lighten up on other stuff? >> i think tech hit a big top in the last few weeks. stuart: oh. >> not because anything is that bad. it is just that, valuations got crazy. they got overowned, overloved, over leveraged. a lot of margin there. that is coming off right now. that is doing the damage. still apple, amazon, great, great companies. the future will be great but sometimes valuations get stretched and it is time. i think you're seeing it right now. stuart: yeah, i just don't want to sell microsoft pay the tax. >> no reason to right now. still acting very well. one of the ports in the storm when a lot of techs get hit hard. stuart: come back any day you like, son. what are you doing in new york? >> my father's 87th

birthday. stuart: good shoutout. herb, 87 years old today? excellent. got our best wishes. hope you're watching. >> thanks gary. secretary of state mike pompeo is meeting this hour about about his meetings with the saudis and turks. come in please, congressman from florida, francis rooney, seems to me the president is taking a wait-and-see attitude, you approve of that? you're on the foreign affairs committee in congress, correct? >> yes, i'm vice chairman of the committee. i think what the president said is accurate. that saudi arabia is an important ally, we need to get all a the facts before we rush to judgment. but i also feel that we need a clear and transparent presentation of all the evidence of who may or may not have who had complicity what happened. stuart: what kind of punishment would you think would be okay if it is clear that the saudis did it? >> well, if the saudi leadership, particularly, is complicit in something like this, i don't think we can treat saudi different than any other country that does these kind of

international atrocities. i would say magnitsky sanctions and maybe look at some of this trade. stuart: but they will turn around, the saudis will turn around, don't sanction us, we didn't have anything to do with it, we don't care what you say. you sanction us and we will meddle with oil or not be in the alliance against iran. they will take action against us if we take action against them. we're in a difficult position here. >> we are but you have to be principled. we're beating up european leaders not wanting to sanction iran against their companies and we have to confront saudi's behavior and have the world back us up. stuart: do you approve of president trump's foreign policy? he has taken a hard stand across the board? >> i think he has had a lot of successes. he has had nor success with north korea than any predecessors. he has done a great job getting nafta improved and preserving

it. he has china's attention and right to focus on china is probably the biggest threat we have right now. stuart: quick question, sir, in your district, when you're running for re-election, what is the key issue in your district? >> well our district is a particularly environmentally sensitive area and which have had the hurricane that you and i talked about at the time president trump came down last year. we had a lot of pollution been discharged because of excess rains, created some red tide and pollution props in our waters that we're working very hard to remediate. stuart: okay. congressman francis rooney, thanks for joining us, sir, appreciate it. >> thank you, sir. stuart: yes, sir. we may not be at the white house today but we've still got a big hour for you coming up. you heard my take, top of the hour i think america is getting used to our president, president trump and the democrats distracted by clinton and warren, i think the democrats are losing ground. i wonder if charles hurt agrees with that. he usually does. let's see, because he is next.

another black eye for elon musk, losing his vice president of manufacturing. that already wasn't the company's strong suit. we're on it. the gaming revolution, we've been following a phenomenon here on "varney," 24 international teams heading to south korea to compete in one game. we have someone who is helping to put that show on. you're watching the second hour of "varney & company." ♪ a once-in-five hundred year storm should happen every five hundred years, right? fact is, there have been twenty-six in the last decade. allstate is adapting. with drones to assess home damage sooner. and if a flying object damages your car, you can snap a photo and get your claim processed in hours, not days. plus, allstate can pay your claim in minutes.

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stuart: well this is pretty close to the low of the day. know we're down 178 points. 25,500 is where we are. look at philip morris. 4 1/2% gain. better sales.

they make marlboro cigarettes among others. look at gap, gap, inc., down 4.6%. why? jpmorgan putting a sell on the stock. warning of continued weakness in sales. telling you to sell it, some people are. it is down 4 1/2%. back to my editorial at the top of the show, hillary clinton, elizabeth warren keep making headlines, seems to be hurting the democrats. president trump makes all kind of headlines helping the republicans. charles hurt, "washington times" opinion editor and a fox news contributor. all right, charles, do you think that we're getting used to this president, larger than life president? i think in a lot of ways we are. they put some more of his outlandish things into perspective. don't pay as much attention to the stuff that the press is, spends inordinate amount of time focusing on. but i also think that there is, has been a little bit of discipline out of the

white house, a little bit more discipline out of the white house. when he is talking about spending cuts and things like that, that is very good for the republican base. when he is talking about judges, and putting good judges on the courts, that is really good for the republican base. meanwhile you have elizabeth warren talking about her indian heritage and hillary clinton talking about her husband molesting interns in the white house. that is not going to be very good for independent voters or democratic voters. stuart: sarcasm, young man, is a low form of wit. >> that is why i practice it. stuart: the president also seems to be politicizing that caravan. he has had three tweets this morning about that caravan that is headed toward the border. here is one of the three. i'm watching the democrat party led, because they want open borders and existing weak laws, assault on our country by guatemala, honduras, el salavador, whose leaders are doing little to stop the large flow of people, including many criminals from entering mexico

to the u.s. that is making an election issue of the caravan that is approaching for election day. >> he is reliving an issue that i think is certainly in the top to or three issues that got him elected in the first place. the one problem here though is that republicans in congress haven't been as good on this issue, as strong on this issue as the president is. that is a real problem because, you know, i think the whole reason that donald trump won the nomination in the first place is because he addressed this issue head on after many republicans had, you know, they won't touch it with a 10-foot pole because they're afraid of it, but i do think it is a very good election issue. it would be very good for republicans to actually come together, find common sense ways of addressing it and fixing the problem once and for all. if trump can convince voters that the republicans will do that, i think that will be a huge boon for them electorally. stuart: the video of those

marching, that column of marchers coming, that is i think threatening to many americans. you know, charles, it remind me of the march across europe in 2015, a million strong, and angela merkel of germany just let them in and that led to her political demise. >> it is not just threaten, stuart. it is maddening. it is so frustrating to think that we have a government, we have laws and all the laws are in place but we have all these people who think, we'll ignore them, people ignoring them, talking about migrants, officials in charge. talking about the idea of sanctuary cities, it is insane and i think that, it really does, it is a very animating, electrifying issue for, and not just for, you know, hard right-wing voters. it is a, among independents it is a very good issue. stuart: i do want to thank you very much, charles, for your

performance yesterday, during our big show that came from the white house. >> that was a great interview. stuart: your interview or the interview with president trump? >> i was thinking of the one with president trump. stuart: modesty is a good thing. as i recall, i think i was interviewing, just finished interviewing you when the president walked in. >> i got the impression something was going on behind the scenes. stuart: the president walks in the room, yeah, there is something going on. charles hurt, thanks for being with us today and yesterday. we always appreciate it. >> you bet. stuart: i will stay on the caravan by the way. i want to know if this helps republicans in the midterms. newt gingrich says yes it will. newt will be on our show in the next hour. check the big board. we're back down a little, not much. down 119 point. 25,500 is where we are. ♪

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stuart: we like to check various markets. look at this, oil at $69 a barrel. how about gold? where is that this morning. not too far away from $1200 an ounce. 1227 to be precise. i hope you know, we were live from the white house yesterday. we had a very special guest. listen to what i asked president trump about his tweets. roll tape. has anybody ever said to you, mr. president, let me have your phone, i want to take your phone away from you for a brief shining moment, we don't want anymore of these tweets, anybody tried that? >> no. i don't think i would be talking to you if i did that. we have a fake news. everyone is fake. ashley: that is great. stuart: straight answer, no.

no. knob ever tried that. ashley: we were getting used to cavalcade of tweets coming out, someone said get ahold of that phone. to your point earlier when you asked charles hurt, are we used to it. i think we are. i think he is right. we are getting used to it. stuart: sort of. ashley: it can be a bit jarring. he realizes the power of social media to speak directly to those that support him. it was working in the campaign. liz: i was talking to dan henninger at "wall street journal." president trump is blotting out the sun. democrats can't get the message out. the president tweets out. is it a distraction when he does indelicate, inaptly worded, being. >> dish us here these tweets. he is talking about the can't get his own message out but is the tweets distracting it. stuart: media won't give him

time of day. liz: they're reporting on his other tweets. see my point? stuart: i see your point. he is communicating directly with america, jumping over the head of media with discusses his tweets. liz: the tweets are considered official statements from the white house. a federal court found that. ashley: even if he didn't put out those questionable tweets, would the mainstream media reporting on booming economy? i would say no. liz: i think they would. i think they would be. i think they would be covering. yes, they would be. we beg to differ. ashley: we do. stuart: conventional establishment media holds this president is absolute contempt. they detest him. you know these people. liz: but i have seen the headlines out of other media. they are reporting on the economy. we'll just have to disagree. stuart: which other media? liz: cnn, msnbc. i see it at cnbc, i see it at bloomberg. stuart: i don't sigh anything. you've seen at msnbc report on the jolts report which was a stunner? liz: i will check for you. they reported on cnbc.

stuart: abc, nbc, cbs, their evening news shows did not report. liz: that is evening news. i'm talking about other media. stuart: talking about extraordinary performance in the jobs report. liz: i hear you. stuart: you're totally wrong. [laughter]. at this moment president trump is meeting with secretary of state pompeo about the visit to saudi arabia and turkey. who knew what and when regarding the missing saudi columnist. if we get any headlines from the meeting now underway, we'll bring them to you pronto. tesla executive exodus continues. the head of manufacturing out. we'll talk to someone who called elon musk a jerk on this program before. ♪

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♪ stuart: i like this song. it is a good one. what is the name of it? liz: getting better. stuart: getting better. ashley: that's a good message. stuart: we'll look for it tomorrow. did we play the beatles yesterday at the white house? ashley: no. probably in the interview. stuart: out of respect for the office we did not play the beatles. ashley: cues me, mr. president, we have to play the beatles. stuart: yes. we're down a little bit. we are down 118. we were down 180 not that longing a, a few minutes. tech on the downside. facebook is back to 15 6. amazon is down. microsoft down. microsoft at 109. i will city take it. we're awaiting headlines

from the president's meeting with secretary of state mike pompeo. here is what the president told me about the missing saudi columnist. roll tape. >> hopefully it is working out. we'll find out. we'll get down to the bottom of it. i hope the king and the crown prince didn't now about it, that is a big factor in my eyes and i hope they haven't. stuart: bill mcgurn with us, "wall street journal" editorial board kind of guy and a former speechwriter for president george w. bush. what is the impact on our relationship with saudi arabia from what is been going on? pretty gruesome details here. >> looks more and more that we know he was killed in a particularly brutal way in the consulate. it is tremendous. this guy we bet a lot on. stuart: mbs. >> the crown prince. i don't think his reputation will ever recover. that doesn't change the strong interest in the region. the irony both the crown prince and the man that looks to be

murdered were sometimes presented as liberal democrats in the way neither was. stuart: i could never call the crown prince as liberal democrat. >> liberalizing, freeing up restrictions, letting women to drive,. stuart: we placed so much hope on him because he seemed to be liberalizing. but we probably have to retreat from that. >> we have to retreat in some ways but we hope we don't jeopardize strong interests there. saudi arabia has a enemy in iran. that is a real menace in the region. they're hoping to capitalize on this poor man's body. turks would love, though they're not arabs, they would like to take the crown of saudi leadership in the region. stuart: do you think the turks are exploiting this? >> of course they are. they are only exploiting it because the saudis gave emthis chance. stuart: they are the ones,

turkish officials reporting on audiotape of the killing itself. they're the leakers here. >> they seem to have most of the information outside the saudis. stuart: who else is playing in this game? is israel doing any of this. >> i don't know what they're doing now. they're probably concerned because the israelis and saudis, i wouldn't say they moved closer but they're not quite each other's main concern anymore. stuart: do you think the president and mike pompeo and all others concerned will spin this out? wait until we know exactly -- >> i hope they don't i hope they don't spin it out but there is a case for not letting our interests just go to hell because of on ought rage just murder. i'm old enough to remember, i was in asia for many years when we had a tumultuous relationship with the military government in south korea, right? a lot of our troops there, flashpoint. at one point the military government tried to kill a man named kim jung wrapped him in

anchors and cia helicopters stop i had it. it was a terrible thing. he became prime minister later on. stuart: we nowknew about this and -- >> there are big interests in the region. and a lot of lives depend on it. i don't think we want a region dominated by iran. and not necessarily by the turkey that we have now. stuart: just got to get over it, somehow or other. defend our interests. >> we have to make sure that he doesn't do it again, right? i mean we have to send a signal, this is intolerable. i believe after tianamen square, i think president bush senior dispatched nixon to go over this to tell them, you guys messed up in a big way an it will take a while to get back where we were. we need someone to send the message to the saudis. stuart: i wonder who it will be? any bets? >> my old boss, george w. bush

had close relations with the arab countries. they need to hear the message from someone they trust, they can't just spin this and try to cover it up. stuart: we're waiting for headlines to come out of that meeting now in progress. >> yes. stuart: presumably secretary of state pompeo has found out what happened. >> right. stuart: we'll find out what happened for us too. >> right. stuart: bill mcgurn, thank you very much indeed. >> thank you. stuart: sure thing. another executive has left tesla. i believe this is the 40th -- liz: that abouts. that's right. stuart: gilbert pason, tesla vice president of manufacturing. jeremy owens, market watch san francisco bureau chief and he is their tech editor. jeremy, this is another bump in the road for tesla, yet another one, but the stock is holding $250 a share. it's a teflon stock, isn't it? >> it sure is. when you talk about another executive leaving tesla, i mean that is about as much news as elon tweeted at this point. happens with the same amount of

frequency, right? but again this is something we'll have to see if they can recruit replacements and that is going to be the real big question. everyone here in the bay area knows what kind of shop tesla is, especially over the past year with production hell as elon termed it, funding secured, all this noise and constant work and everybody out here knows they will work you hard, burn you out, toss you aside. now they're getting to a point where they really need to bring people in to solidify what they're doing, can they recruit with that type of reputation around an area that has a lot of opportunity? stuart: they're going to need to raise a lot of money. can they raise a lot of money if elon musk is not at the helm? my answer would be, no they can't because everything depend on musk? >> it could be, but, you know, he is also insulted a lot of these huge banks and are they going to want to give him money at this point knowing he could

go on twitter to ruin it at any point, right? can they raise money with elon? can they raise money without elon at this point? without elon who will they get to replace him? this is the question for tesla right now. if you lose an exec, who will replace that exec because they don't know if they can recruit. stuart: you're saying they have a bad reputation as an employer, work you very hard, chuck you out the door, is that the way california sees it? >> it seems like it. you know. even more so than some of these other tech companies. you know, depend on what area you're looking at, what you're going to do, yeah, they're known out here as somebody if you go in there you will work 12 hour days, you will work some weekend. you are expected to go down to the livery center to push out cars on the weekend to keep this company going because where they're at. i don't know if we'll see model 3 producing, if that kind of contracts a little bit. it would be smart to bring down the pressure a little bit.

that is not elon's style. he is a hard-charger. i think he will keep on going. stuart: talk to me about facebook. they reportedly found the data breach they discovered in september was done by spammers, not hackers representing a foreign state. spammers. does that make it better, jeremy, that it was done by spammers and not hackers? >> makes it less of a intrigue i would guess but i think for normal person, now they actually know what these people were trying to do, they're trying to spam them. get their information, use it in that way. i think a lot of people, nation-state actors have the weird disconnect, i don't know what they will do with my information, with spammers everybody knows what they will do with that information. it will be annoying. in terms of normal people what they think about it, if they know it is spammers they would be more annoyed than hackers from korea or north korea or russia or china. you know then they are, what are

they doing with my information. with spammers they know exactly what they do with the information and they're not going to like it. stuart: facebook is a teflon stock because when earnings report comes out, they will make billions of dollars, have a huge impact on the advertising market. that is why the stock is always up there, right? >> last quarter went down 20% after their earnings, when they warned about, you know, potential troubles down the line. now we're going to see next week or two weeks from now, what they are going to say actually happened, right? the big fall last quarter was off of a forecast. so if they're able to beat the forecast, show a lot of returns and not forecast as poorly for the next one, they could see a big bump. stuart: we shall see, jeremy. thanks for joining us. >> thank you, stu. stuart: got it. we talk about all kind of economic indicators on the program, of course we do. lately most are very positive. but there is another one pointing up, another positive

indicator. it has to do with mashed potatoes. how about that? i will talk to the ceo of stu leonard's about it, the mashed potato index. the gaming revolution, we're following that one here. 24 international teams head to south korea to compete in one game. we have someone at the center of this major development. that is next. ♪ vo: old and even inaccurate search results can

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unfair, call reputation defender at 1-877-492-6705 and join our campaign at righttobeforgotten.org ♪ ashley: the megamillions jackpot is nearly a billion dollars but don't tell stu. he thinks the whole thing is rubbish. a tax on the poor he says. he prefers another game instead. listen to this. stuart: have you ever heard of the numbers game? illegal betting on the last three digits of the dow jones industrial average every afternoon. used to be runners all over new york city, every major city in the united states of america. you sign up, these three numbers. you play the numbers, paid out 90% of everything came in and winnings were not taxed. that is the way to do it. that's a deal. ashley: stu was fired up. charles payne was watching. had to say this on twitter. when i was growing up i played

numbers, was really good. spent lots of time in the numbers hole. people always asked me what the next number would be. thanks for watching, charles payne. more "varney" after this. rceful, ingenuity, and grit, we're not only capturing energy from the sun and wind, we're storing it. as the nation's leader in energy storage, we're ensuring americans have the energy they need, whenever they need it. this is our era. this is america's energy era. nextera energy.

stuart: have we come back or what? now we're down just 45 points. we had been down 180. we're back to 25,600. quick look at videogame makers, all of them are sharply

lower today, look at those in percentage terms, way, way down. activision blizzard a, that is the biggest loser in the group. we don't know why they're all down today suffice it to say videogame makers are not in good shape this morning. i have more on the videogame phenomenon. an international esports competition is underway in south korea. the gamers play, the league of legend. the most played commuter game in the world. chris hopper, head of north america riot games which produces this league of legends. >> thank you for having me. pleasure to be here. stuart: we've been trying to tell viewers scope and size what we think is new industry, competitive egaming. tell me how many people you will get to go to this one in south korea, how many will stream it? >> for finals, we're looking to fill one of the world cup stadiums in south korea. probably 50,000 in attendance there. stuart: wait, wait.

you have 50,000 people in soccer stadium with giant screens? >> absolutely. stuart: with competitive teams playing "league of legends" on the big screen? >> centerfield. stuart: how much do you charge. >> we tend to have prices low because we want as many people possible. stuart: how much. >> events in the u.s. not sure conversion of korea. 30 to $60, depending how premium seating. stuart: is that cheap? >> we want to make it as accessible and most of our fans are 18 years old. stuart: the real market is people watching around the world online, how many people watch. >> last year for one of our semifinals, 80 million viewers tuned in for a single show. that is the biggest we've had. finals was 56 million, korea, versus korea matchup. when two different regions go at it, that is the peak viewership because you get the whole global audience. stuart: tens of millions of

people? >> yes. stuart: presumably you get revenue from tens of millions of people simply because they're watching? >> simply how nfl and nba uses multiple channels in different languages we do the same thing. 18 different languages in 18 different languages, charging for tens of millions of people, charging for mid roll, instead of putting economic burden on viewer but put it on the sponsors reaching out to the audience. >> i quite admit i'm behind the times. i am. when did this start, this competitive e-games, when did it start in big stadiums, that kind of thing. >> in big stadiums, started with star craft, specifically in south korea, 15, 20 years ago. stuart: you're kidding me? >> airplane hangars, 100,000 people showed up to open event with no tickets on a beach in south cree. they have organized esports 2.0

six years ago, when riot cited lcs. we created regular season leagues. consistently accessible, high quality production. teams with contracts, players well-taken care of. we've seen that scale to we have franchise teams. similar to nfl or nba, you have teams permanently in place. that is similar system what we built. our players in north america, average starting player is making $330,000. stuart: wait, wait. average starting player. >> yes, sir. stuart: 14 years old? >> at least 1 years old. we have 17-year-old age requirement because of contract all laws. they are signing contracts with teams. they have sponsor appearances. requirements with the league as part of that media likeness, ip rights. the contracts are pretty thorough. we need ad higher age limit. stuart: off the top of your head, you may not be able to answer this question, how many people are in this industry making $300,000 a year as competitive gamers? are we talking thousands?

couple hundred? >> couple hundred. stuart: that level of income. >> at least 50 in the u.s. are averaging 30,000. take the chinese, korean, european leagues, quadrupling that number. on top of that other leagues have stars. top players could be earning into the low seven figures as well. stuart: doing the math. seven figures. >> millions. stuart: millions? >> millions. stuart: you have to win? >> not even necessarily. when we look at players in north america and in china, one of the big additional aspects of their competition is streaming. so they have their games but imagine if lebron could turn on a camera and show his practices to people, explain how he shoots his, how he shoots his jumper or how he takes a charge or play defense, that is what these guys are doing. in addition to practices going home, turn on camera, reaching out to the community. that community is monetizing them. paying subscriptions and donations. tightens the loop between the fan and pro-athlete to emphasize

superstar culture. stuart: you're with riots? >> riot games. stuart: league of legend is one of your games. >> we're producer, developer of league of legends. stuart: how big is your company? >> 3,000 people at this point. stuart: 3,000 people working at riot games? >> promoting the title, and r&d titles as well. stuart: that is extraordinary. thank you very much for joining us. >> glad to be here. stuart: nothing i new b big new industry. appreciate it. great stuff. >> thank you. stuart: moments ago secretary of state pompeo briefed the president on the saudi situation. he is about to go to the microphone. liz: he is. reports are crossing that he told the sauds you have 72 hours to finish the probe. so there is blunt talk behind the scenes from the secretary of state. he had flown to ankara and riyadh. he is ostensibly saying to the media we'll not prejudge the outcome. behind the scenes blunt talk is coming out of the secretary of

state to saudi arabia. ashley: basically telling the crown prince, own the situation, wrap up the investigation. that is according to some media outlets. that was the message. ashley: take control and own it. stuart: what we her so far, not a soft line on the crown prince, it is a hard-line on the crown prince, holding him to account? ashley: to lizzie's point, 72 hours. that was said yesterday. wrap this thing up. don't let it drag on. liz: they want to determine the facts and insure accountability before they make a decision how to proceed forward and act. stuart: the camera, on left-hand side of the screen is wavering all over the place we try to decide which door he will come out of. he will come out of that door on your screen right now. he will walk across the front, go to the microphone, i presume make a statement. whether he answers questions or not, that is another story entirely. ashley: yeah. stuart: if it were president trump out there, yes he would be answering questions. ashley: he would. bottom line, pompeo said look, we are intending to give the saudis the benefit of the doubt. what we don't want for this

thing to be dragged out with all of these little snippets of information being released to the media. the turkish media have been particularly gruesome with details what happened in the consulate and that is not helping the situation. stuart: no it is not. i'm looking at the front page of "the new york times" today, they're all over it. the headline is this quote audio said to give gruesome details of critics killing." that section of the story goes like this, saudi agents were waiting for khashoggi when he walked into the consulate. ashley: oh, yes. stuart: here is the secretary of state. he is approaching the microphones after the meeting is over. >> good morning. i briefed president when i returned last evening where i traveled to both ankara and riyadh. i talked with the king and crown prince, foreign minister, all united states counterparts there. we made clear to them we take this matter with respect to

mr. khashoggi very seriously. they made clear to me they too understand the serious nature of the disappearance of mr. khashoggi. they also assured me that they will conduct a complete, thorough investigation of all of the facts surrounding mr. khashoggi and they will do so in a timely fashion. and that this report itself will be transparent for everyone to see, to ask questions about, to inquire with respect to its thoroughness. i told president trump this morning we ought to give them a few more days to complete that, so we too have a complete understanding of the facts surrounding that at which point we can make decisions how or if the united states should respond to the incident surrounding mr. khashoggi. i think it is important for all of us to remember, a long, since 1932 a long strategic relationship with the kingdom of saudi arabia, they continue to be important counterterrorism partner. they have custody of the two

holy sites. they are an important strategic alliance of the united states. we need to be mindful of that as well. when i traveled and met with president erdogan, he talked to me about the incident. he told me they were conducting their own investigation. we had a chance to meet with some of the team involved with that. he assured me they would share their results with the saudis as well. so we do believe that between these two efforts a complete picture will emerge for what actually transpired here. and we're working toward that we're looking forward to that wrapping up quickly. we expect it will be done in that way. [shouting questions] yes, sir. reporter: why should saudi arabia be trusted to conduct a fair and impartial investigation when they're accused of disappearance and apparent murder of jamal khashoggi? >> we'll all get to see the work product. we're all getting to see the kingdom of saudi arabia gives to us. all of us, we'll get a chance to make a determination with

respect to the credibility or work went into that. whether it is truly accurate and fair and transparent in the way they made a personal commitment to me and the crown prince made a personal commitment to the president when he spoke with i am the night before last. reporter: mr. secretary, there are a lot of stories what happened. -- >> there are lots of stories. reporter: can you tell us anything? >> a lot of story what is has happened. we're going to allow the process to move forward. allow the facts to unfold and as they unfold, as we make a determination for ourselves about what happened there based on facts that are presented to us, the united states will determine what the appropriate response is. thank you all for your time today. [shouting questions] stuart: let me recap exactly what the secretary of state had to say there, following his meeting with president trump and his own visit to saudi arabia and turkey. he said we made it, we, america, made it very clear that we take the situation very seriously. the saudis, they take it very seriously. he was assured that the

president, mr. pompeo was assured of a complete, thorough and timely investigation but they would be given a few more days to come up with that investigation. at which point it would be open and complete picture will emerge. it will be open and we will all be able to see the investigation and assess its credibility. ashley: yep. stuart: that is what he just said. liz: jamal khashoggi was not a u.s. citizen, a resident with green card. the u.s. jurisdiction over where the crime took place. thus, senate foreign relations already asked the white house, sanctions or pull saudi diplomats or other choices are up there. congress can move, congress can move without the white house. stuart: that has to wait until we get the investigation -- blake burman. what do you have to add to this, please? you were there? reporter: hi, stuart. you're coming to me, this was impromptu moment from the secretary of state. sorry was rushing over here, the secretary of state as he met with the president inside of the oval office you heard what the

secretary of state there said and the bottom line is the administration, the trump administration at this point not going to rush to judgment as you very well know speaking with the president yesterday. there is a couple different issues they need to balance out here, at least the president wants to balance out first. saudi arabia is an ally. saudi arabia is a business partner. but also this investigation that needs to take place. this was the briefing president trump wanted to get face-to-face. the secretary of state coming into the oval office after he was just in riyadh and just in turkey. he just got it. the secretary of state talking to us moments ago. now he is off to panama i believe. the administration will have to sit back and wait to see how everything unfolds in the middle east with jamal khashoggi's disappearance. stuart: got it. blake burman, thank you very much indeed, sir. yesterday, i will call it extraordinary for this program and the network and for me especially, half the cabinet sitting down talking about deregulation, half the cabinet, then surprise of surprises,

president trump just dropped in. tell you all about the top of the experience next hour. here we go. touch shows how we really feel. but does psoriasis ever get in the way? embrace the chance of 100% clear skin with taltz, the first and only treatment of its kind offering people with moderate to severe psoriasis a chance at 100% clear skin. with taltz, up to 90% of people quickly saw a significant improvement of their psoriasis plaques. don't use if you're allergic to taltz. before starting, you should be checked for tuberculosis. taltz may increase risk of infections and lower your ability to fight them. tell your doctor if you have an infection, symptoms, or received a vaccine or plan to. ..

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your screen. the call is free. and licensed humana sales agents are standing by. so call now. drained a 24 hours ago this program came to you from the white house. half the cabinet came in to talk the regulations, jobs and growth and the president himself just dropped in. we've been hoping you would join us but we weren't absolutely sure he would have the time. i was in the middle of an interview with larry kudlow anywhere the president goes it has to be secured. any president is an imposing figure. especially when he walks in the door stands next to you. you quickly realize why he's such a great communicator. he looks at you, look statue in in the eye and he answers any and all questions and he made

news. he told me he's going to tackle government spending. we haven't heard much about that before, have we? he's going right out it, demanding a 5% spending cut for most government departments. he stayed with us for a good 10 minutes. that is an eternity for an impromptu presidential dropping. he would've stayed for the entire show if he hadn't had to go to cabinet meeting. what if there was. unique. i can't remember so many top-level officials and the president himself sitting down for questions within a single show. let me tell you, foreign immigrant, this is a very big deal. we hope you're able to watch and we hope we can do it again. the third hour of "varney & company" is about to begin. president trump just walked into the room.

i sit up, shook hands and knees with us right now. mr. president, thanks for being with us. stuart: that's only because i like your show. stuart: thank you very much indeed, sir. liz: he likes the show. he is taking leadership. he's trying to fix the country through this to 300 things he's gotten done. i understand his frustration, but he is getting things done and we tried to do our best reported on your show. ashley: we report a booming economy. these are real figures that come in daily and we report them. no wonder he likes the show because he can't find that in too many places. sure into it was a real shock sitting right next to him. before we started the interviewer said mr. president, a tower above me. there's nothing wrong. the president of the united states is a big guy. ashley: very natural guy.

stuart: totally. a remarkable occurrence. so nice to be there. i want to tell you the president did say he wants to cut -- he wants his cabinet to cut spending in their departments. roll that tape. >> you cannot cut some spending? >> absolutely. it's not as tough as you think. there's a lot of fat in there. stuart: managing director john lonski. you've got to prove a base. equity prices would soar if we have these types of inopportune time. after all then we have unemployed individuals. >> it seemed to me running government is like a business.

because the president at a a company, you say to your vice president, cut this, cut back. just do it. run it like a business peer >> got the way it should be done. we are taxpayers paying for this business and we have a right to have a more efficiently run government. stuart: we do. do we think were going together? i think we would be very lucky to limit government spending growth to 1%, nevermind a 5% cut. that's going to be very politically unpopular among those who have some linkage to government spending. stuart: you're getting the money. >> it might make markets happy. think about perhaps raising the retirement age for those that are perhaps right now in their 30s. in the future were gradually going to ratcheted up to maybe 70 years. they had a lot of time to get ready for it. changes such as that would be positive for financial markets.

stuart: for the first time i think it's been 10 years we have the most competitive economy in the world bar none according to the world economic forum i believe. what you make of that? >> it makes sense. when i hear something like this, i scratch my head and wonder about these forecasts out there that are telling me that the dollar exchange rate is about to enter into a prolonged. how could that possibly be? stuart: is it accurate? you're an economist. over time we're going to see more foreigners want to invest in the united states and invest in manufacturing plants. >> is a primarily the tax cut peer >> that's what it's all about. another thing we have to look at

would be education. they have to go beyond arguing in favor of just charter schools on the education front. i think they have to take a look at what's being taught to students and see to it that our standards are up to par with the rest of the world. stuart: all you've got to do is fight the teachers union. thank you very much. >> my pleasure. stuart: check out the big ward. all the way back to a minus 20 i think it was. now we've gone back down to a minus 115. joining us now, fox news contributor scott martin. what the devil's going on? i blame this down up down. what's going on? >> it looks like i picked the wrong week to quit smoking. i'll tell you what. i really can't put it another way. the market is really embracing the volatility right now because you have the lets say erudite

gary kaltbaum online seller who is talking about how they deal with a lot of cross currency and one thinking going on right now as we see interest rates in the movement therein day-to-day, week to week really change the outlook for stocks as go up in as thumbs up or they bumped down, stocks tend to react the opposite direction. >> is the worst over? >> i don't think so. i do think the worst is not bad. let me put it that way. i don't think things are going to get terrible, but like gary kaltbaum said i do feel like there's another flush at him because the netflix reaction in some of the reactions from adobe after earnings after-hours and selling thereafter as far as the next couple days tells me this murder was to go down before it's going to go. stuart: hold on a second. i want to talk about faith vote. some investors and facebook like public pension funds and some state officials want zuckerberg, mark zuckerberg to step down as

leader of the company. are upset about the data scandals at facebook. do you think it's time for zuckerberg to step aside? >> if you want the stock to go down, yeah. the funny thing about these pension funds. if you're talking about taking a zuckerberg maybe a zuckerberg libya couples or executives. cheryl samberg is one who has her neck of the line with this privacy issue. facebook named zuckerberg and so do the investors. i think he's had a little bit of trouble dealing with the controversies they are. he's been behind the curve, but he is the best for the company and we young face look at these levels. stuart: you're not selling at this point. >> i think it's too late to tell. facebook is that a reasonable valuation to it so we would be added the volatility to settle down. stuart: we hear you, scott martin. thank you for it much.

we'll see you soon. phillip morris did have higher sales may make marlboro cigarettes. last time i checked the stock was up 4%. show it to me now. philip morris there. a 4.5%. three bucks higher. look at the gap. there's a gap where the gap. i'm not sure actually. jpmorgan putting a sell rating on the stock. continued weakness in sales not doing the stock much good. down 5%. 25 bucks a share. the caravan 4000 people could be arriving by election day and the president is laying down the law on this now. and he will call the military that's what he says is going to do. coming up he says the caravan would get people fired up at the

polls three weeks from now. president trump's approval rating at 47%. is the president style beginning to work? it's showing in the polls. stay with us, please. this is the third hour of "varney & company." ♪

the economy doing better than it has in history and they don't talk about it. that's because they have their opinion and the to keep their opinion going the way they have. they do not treat us fairly.

i can talk about it myself. stuart: when he does. i was president trump talking to me about the media of course. this is a fox news poll shows the president's approval rating at 47%, up three points from just last month. another fox poll shows 49% of people approve of mr. trump's handling of the economy. big number. joining us now, much like the nature of the american conservative union. i think people are getting used to this president. he's taken two years and i think they're getting used to him. he almost like that style. what say you? >> at the ethos of getting used to having this job. it's the only toughest job in the universe and we've been involved in politics before. i think it took some time to get used to the scrutiny and every word you say gets magnified and so the american people are getting more comfortable with president trump and president trump is getting more used to the fact that he's the leader of

the free world. stuart: we see a lot of him. a press conference or rally or impromptu statement to reporters virtually every day, sometimes twice a day. it's a media blitz. could i say that it's working? >> you definitely can say it's working. you can't look at all these polls. things are getting better for him and republicans and i will tell you for the people i know who work there right but the president every day, they can't get over his energy level. they are exhausted when the rallies getting ready to start in prime time and he's just getting keyed up for escape or six public have for the day. the man is inexhaustible and i think it's because he's liking what he is doing in a flakiness success. stuart: he really likes it. he just loves it. >> you saw that. >> i've got to talk to you about the disappearance of the saudi

columnist. sco a few minutes ago secretary of state spoke with reporters. the disappearance will be transparent and it will be quick. the administration is walking a fine line here. >> easy carrying for the administration to do in this case and for secretary pompeo and the president to do his will he give it to the saudi's. this is a pretty brutal regime trying to move to a concept of working with the west. let's face it. they have a long way to go. they would be to really ostracize for this apparent disgusting behavior. a president has to be careful as well. when the doors are closed, i'm sure they're delivering this message, that they also have to make sure that they don't do

anything that permanently damages our relationship with this country that is a counterweight to iran which is the world's biggest menace. >> we rely on them to some degree. they rely on us to some degree. we all rely on each other in the middle east to contain iran. so you can't divorce. there is no divorce from saudi arabia. you can't do that. >> this is exactly right. this is the trickiness to diplomacy and i thought the coverage of mike pompeo's visit to meet with the crown prince was inexcusable because they said he was cordial. that's what campaigns do when they greet you. the cameras are off i'd guarantee of mike pompeo isn't going to take any of this lying down and i think we have to give them the running room as america's chief diplomat. >> this report whenever it comes out is going to be open. america's going to see it. there is no backing away.

that's my reading. >> that's right. remember, these regimes in the middle east, even saudi arabia, these are brutal regimes. the love rights and human rights is not really understood like we understand in america. we've got a hold them accountable. they treat their citizens terribly. if your lgb teach you or your women you don't have the right to should have really pushed them to get better but we do want to break the relationship because the consequences would be terrible. trinity of god appeared to see you again soon real soon. checking for you regularly, first up bitcoin. the price of gold above $12 an ounce. the price of oil below $70 a barrel. we are 69.63. that's where we are. the price of gas edging lower. i thought it was on its way to

three bucks a gallon, but it's edging lower. two dollars and 87 cents as the national average as of right now. coming up, we will talk to us to london junior. don't laugh. he's got a mashed potato index. if the economy is doing well, consumers buy premade mashed potatoes. how's that for an indicator. we will understand by the end of it. i've got to share this piece of nostalgia. limited edition golden girls sold at target but reportedly very hard to find. if you're looking for a job, some cities may be better for you. one look at affordability. we will tell you which city came out on top.

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stuart: moments ago we asked you which city is fast, the answer number one pittsburgh good to

study the factors like happy employees. number two, st. louis. rounding out the top five, indianapolis, cincinnati and hartford. who knew. another news that he the most unaffordable states. number one in on affordability, hawaii. the studies from go banking rates.com. hawaii's median income doesn't match the states very high cost of living. the second most unaffordable on the top five, california, new york and maine. where did that come from? virginia is the most affordable media and income exceeds the cost of living by $5000. momentarily were going to talk to newt gingrich. he says two things are firing up the gop base and look at them to the polls in november. what are those things? we'll find out. the big word going down again

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stuart: not quite the load today, but pretty close. down 170 points. this has been a real volatile session down, up and not down again to the tune of 170 points. two thirds of 1%. we will straighten it out somehow. this is completely different. look at this graphic. this is the potato and wine index. the big supermarket chain in the northeast. the index has been peopled by prepackaged mashed potatoes, the economy is doing well. but if the economy is not doing well, they make their own mashed potatoes. that sounds logical to me. the man himself, ceo and president of stew leonard. before we go any further, i want to tell our viewers again when i first came to america, i walked in to the store and the road in

connecticut. that's on the show today. i don't know what the state of the economy was. >> i know you could. utah may, what is this index telling you now? you make it sound like it doesn't work. we've just looked at it. here's some potatoes, 1 dollar a pound. you put some butter and cream and with it. here's mashed potatoes that are chefs make that $5, $6. so when the economy seems to be better, more of our customers by these mashed potatoes. so it doesn't sound like it correlates that much, but we started looking at it and it actually does correlate to the dow jones. stuart: we are feeling good. more people are buying mashed potatoes right now. we then decide what look at wind and see if the more expensive wine. does that make sense? people spend more money, by

better wine. so we have to know we are buying turkey right now. we've got to invest like millions of dollars. stuart: and laughing. you're a marketing genius. that's a piece of marketing genius in and of itself. are you trying to sell this? i didn't raise the mashed potato index. when did she start doing this? >> i think three of four years ago. >> you advertise that? we've been talking about events getting more popularity to it. stuart: you came to me and you thought he'll buy it. >> that makes sense, doesn't it? stuart: i guess it does. how close is it? >> you do have thanksgiving with a huge spike in mashed potatoes. you know, stew leonard with a

straight face telling me you better watch out for the thanksgiving spike in mashed potatoes. >> tomkins right now. 100,000 pumpkins. what is happening now is you had these courts, which are like the white ghost pumpkins. those are 25% of pumpkin sales so you have no way before this season. he started just wrote your head should you invest that money. stuart: that the package of mashed potatoes. you've got the price on it. thirteen dollars for mashed potatoes? >> this package of mashed potatoes cost me $13? >> it's heavy. stuart: you're all right. i've got a tweet. stuff coming in from secretary

mnuchin. this is a quote now. we have decided i will not be participating in the future investment initiative summit in saudi arabia. >> he said he would make a decision by the end of the weekend didn't wait that long. decided not to go as with many others. stuart: is it possible the market is reacting to this? >> i think what we see in the market as we've had a number of industrial companies supporting profit that were a bit disappointing. aircraft parts, that type of thing would suggest perhaps on the industrial side of things and the things are slowing down. that's having an impact. stuart: i just want to bring in dan hemminger with us this morning. this saudi arabia thing, pompeo is reported that. where ghana --

[inaudible] stuart: we are playing hardball now, are we? >> we are trying to not abandon a long-time ally in saudi arabia. sundays are under tremendous amount of pressure and i think on one hand it's right to give them more time to investigate and on the other writing probably mnuchin pulling out at this point makes sense as well. the material that everyone's been talking about is based on one thing, sources inside the turkish government. not anything else. the turkish government in my mind is not the most reliable player, credible player at least in without a lot of problems with the erdogan government. we need more corroboration for what happens before pulling the plug. train to judge napolitano is with me. do you have a legal on this bearing in mind that khashoggi,

demand has apparently disappeared, he was an american resident and a resident of america, not a citizen. >> under federal law the federal government has the authority to prosecute the deaths of american citizens and the deaths of lawful american resident that the deaths are intentional and committed in another country. stated differently, it's somehow the people who actually killed him were to get here, lawfully or unlawfully can't tell you about that in a minute tried and prosecuted here would be punished here, whether executed or whether it was incarceration for life. stuart: but we are playing hardball at this point. >> i don't think we're playing hardball at all. mike pompeo started yakking it up on the cameras look ridiculous on a time like this. i would've been grim faced and very stern. you better find the people that did this. danny makes a good point.

very limited sources here to which i would not american intel believes those sources and this is more than enough to get an indictment under american standard. it's more than enough to get an indictment. stuart: as for discussing this and as we reported treasury secretary mnuchin is not going to the top post in the desert, the market continues to fall. this is now very close to the lower today and this decline has occurred in the last few minutes literally as the news on saudi arabia was breaking. now we are down 224 points, 25,400. it is hard for me to imagine what connection there is between the saudi situation in the stock market decline. we are down 280 points and i can't think of another reason why this market is declining. >> i can neither. the saudis are our primary oil producer for sure. they can use oil as a weapon if our alliance with the saudi's to

grade if not collapse is coming to u.s. strategy in the middle east contained iran is put at risk. so the middle east once again becomes extraordinarily volatile. that sort of thing can move markets. stuart: you of everything dan just said. he also had the fight against the very hawkish commentary. quite happy to continue to raise interest rates. yield in the tenure grew up with had some misses on profits today. profit guidance warning from the industrial stocks but the overall market down. i think it's a combination. stuart: to be clear, this is what mike pompeo, secretary of state said. he approached the cameras and said look, they've got 72 hours come a couple days to finish the investigation which must be thorough, timely this investigation. give them a few more days. we've got to have a complete picture. we demand the complete picture will emerge.

a questioner said, why trust the saudi's? pompeo replied, we will all see the investigation and assess its credibility. that's why i'm saying there's an element of hardball here. which you may not accept. we're going to get to the bottom of it and find out who the devil did this. to dan's point, all these leaks coming from the turks who have a vested interest in getting more and with us in creating a rift. stuart: that's what i'm trying to say. >> a lot of saudi investment in turkey. stuart: i just can't quite see how what is the market declines on this. >> susan li down on the trading floors in the volumes are quite low today which shows absolute volatility. liz: should decide this is normal market behavior. stuart: that's true. let's not get carried away. the lowest volatility and 90

years. stuart: newt gingrich who scrambled to get in the chair for us. i know you are there. i'm not going to ask about connections between the stock market in saudi developments. i want to know what you think about the saudi developments. >> well, i think it's all very weird and we need to get a lot more information. obviously, we are going to take some fairly strong steps, but the president is right in saying let's make sure we know what is happening before we jump to doing something and let's make sure whatever we do doesn't damage the united states. iran is a dramatically different problem than saudi arabia. sundays are major allies in the region that we should be careful how we respond to it. whatever it turns out happen, we will no more tolerate killing a saudi journalist in istanbul

then we would tolerate russians killing people in great britain. but in both cases i think you take a measured, decisive response. you don't do something which does more damage than good. stuart: you can't divorce saudi arabia and our relationship. you can't just say were divorced, were gone. it's over. >> you could, but then you'd cause a catastrophe. $200-barrel of oil, you want the russians and the iranians to dominate the middle east. again, some people in congress go running amok and say strong words without having looked at the facts. i have to say, and my next novel, collusion is about the russians trying to poison u.s. senate. and so i look at these kind of examples and i don't understand by the saudi's to send a 15 person had too much as the

turkish team. i don't understand why they would do it in the saudi consulate, which is the most obvious visible place you could imagine. they know the turkish intelligence people are watching them all the time. this whole story would not work as a novel. there's something fishy about the whole thing. stuart: fascinating. would you just stay there for a second. i want to revert to the stock market. shah gilani assigned the line. is there a connection between that and developments in saudi arabia? >> there most definitely is, stuart. the saudi's have a history of fighting back financially when there's something that happens that they don't like. every stock in every canadian company they own. the markets are looking at the something if they retaliate are

they going to sell american tariffs. stuart: okay, we are selling. 277 as we speak. shah gilani, thanks for joining us. appreciate your input because there may well be the market decline of what's going on in saudi arabia. back to you, newt gingrich again. thank you for being with us and jumping into the chair there with very short notice. i wanted to talk to you about the election because you've got what you say are two factors, which will propel republicans to the polls. tell us more, please. >> as an historian, current drop in the market doesn't strike me as a very big panic. with the saudi's are going to cause a panic with a several thousand point jobs. anyhow, i think there are two words that are going to define this election and will lead to a shocking, positive republican results on election night. the first is kavanaugh. i think the reaction to the way the judge, not just is kavanaugh

was lied about them is smeared and character assassination, the behavior of some of the democratic senators in the senate behavior as though they were teenagers in a tantrum. all of that has coalesced for the country. a newsletter came out yesterday talks about the effect kavanaugh honda. the bigger effective cabinet was to remind everybody in the country, this is a team sport. when heitkamp or tester or some other democrat doesn't really a moderate, the first question is are you voting for schumer? if you're voting for schumer you're not a moderate. you seen a dramatic drop all across the country in virtually every state as people begin to realize these are all radicals. the second word i think is just now emerging and that is caravan. this 3000 person caravan is a direct attack on american sovereignty. this is a caravan coming out of central america.

it raises two big questions. one, who's paying for it? laura ingram estimated $7000 a person for three dozen people. $21 million. where did the money come from? all of our liberal friends who are anxiety ridden about the border, if you allow them, tell me how big the next caravan will be. 5000, 10,000? once people figure out americans are really stupid then they can figure out a group is that you owe us coming into your country. imagine this is your home and people down the street decided you owed them. you'd think i was crazy. stuart: the president treated three times about the caravan, took a very strong wind and told mexico, stop it. if you don't i'll put the military in the southern border. he's making it into an election issue. it's a political issue for the

president and as you say, sounds like a winner. >> attend historic question of whether or not america is going to survive as a sovereign country. people like senator feinstein who introduced an open borders bill which every democratic senator cosponsored. speaker pelosi will pretend she doesn't say she's against doing anything which would control the border. the fact is the democrats have made this and it's not political. it's about the survival of the united states is a country in the world in which people want to claim the right to come here no matter where they are. these are not refugees. these are classic human migrations exactly like the people who came out of central asia to overwhelm the roman empire. stuart: real fast, you did a year expect to a surprise result that the republicans will keep the house and increased their majority in the senate. that's what you just said?

>> yes, absolutely. just as in 2016, everybody in the elite currently projecting a democratic victory is going to be stunningly shocked election night. stuart: thank you very much indeed. the selling continues now is use on your screen a moment ago down over 300-point in the selling did speed up, picked up pace when the news from saudi arabia came out. secretary of state pompeo has taken a hard-line. he wants to see a thorough and timely investigation. they've got a couple of days to do it. then came news that treasury secretary mnuchin will not be attending the stylus in the desert next week. he's not going. a lot of people pulled right out of it. we are down 328 points. as a shah gilani pointed out to us, he thinks there is a connection between the stock market selloff and developments in saudi arabia and as i say there, the selling continues. any inputs?

>> i have a lot of input on what speaker gingrich said on the legal aspects of it. this president has two tools. he has the ability to refuse genetic foreign aid payments. stuart: you're talking about the caravan speared >> his ability to spend money is discretionary, not mandatory. once they put their big toe on american soil, they're entitled to a hearing. and that could take six months to a year. that's the problem with the statutes. stuart: by all means have legal representation. but when you're swamped by tens of thousands of people crossing the border illegally, you know perfectly well you can't administratively do without. you just can't. >> he almost as the permissions but american personnel in mexico so that these people don't get their big toes into texas. stuart: keeps it says on the phone. i believe that correct spirit, name, please. when you establish a connection

to train developments in saudi arabia and the stock market selloff. is there a relationship? >> there is a relationship. it's a little more subtle, but traders are very, very concerned. lots of buzz from traders i talked to around the world. stuart: with their concern? >> the concern is uncertainty. it doesn't matter how it gets there her work comes from, but the fact of the matter is anything that creates uncertainty means they have to realign portfolios. right now that means unloading docks or give them cause when it comes to leverage. they are in up to their eyeballs. individual investors don't have that problem. stuart: do you think this is overdone? $25,000 index. the dow was down 1.2%. the selling continues. but do you think it's justified? jitters over saudi arabia justify this kind of selloff. do you think so?

>> know, do not. earnings are front and center. the stock market is in a rational place that's highly computerized 80 plus% of all trading bodies driven by all the rhythms that humans can keep up with. this is about the buy sell programs right now. it's unfortunate we have to do with it but that's a factor today's markets. stuart: thank you, keith. but we are juggling with is a sharp stock market decline could 1.3% down from 330 points. dealing with developments in the saudi arabia situation and we've also got coming to the front now this caravan situation. president trump taking aim directly at it. he wants it to stop. he is not happy at all. he's making it an election issue. we are juggling all these issues enough that treasury secretary mnuchin not going to that saudi conference. blake burman at the white house. come in on secretary mnuchin. reporter: tedious releases on twitter within the last few minutes to treasury secretary

saying he's consulted consulted with the president. he's consulted as well with secretary of state and they've decided steve mnuchin will not be heading to the investor summit in saudi arabia. there had been a question for many days now as to whether or not that treasury secretary would indeed go. many people from all the world, have been pulling out and in fact i believe france's finance minister announced today he would not be going and now that the secretary has gotten back from saudi arabia, the president and secretary of state have decided they will not head to this day conference in saudi arabia. by the way, i should note that fbn is a sponsor of the conference and participation in it is currently under review. stuart: just a real fast question. is it correct to say that treasury secretary mnuchin spoke with secretary of state pompeo and with the president before he made the announcement that he pull out of the summit?

>> history says we have decided. you can take this as a group decision among the three. stuart: you must've heard something about what went on in istanbul that made him pull out. stuart: until this is resolved maybe it's best to hold back. stuart: this is what's going on. questions being asked by many company, chief executives, leaders around the world and that's why they're pulling out. stuart: it's not out of the question that whole conference will be canceled. there have been some talk about. >> you've got to wonder as ashley said, who wants to go at this point as there are many outstanding questions. we just heard from secretary of state mike pompeo saying that he still wants a few more days before, for getting answers from the saudi's. so you've got to wonder what is going to come out over the course of those two days and what the response might be not only from the saudi's, but of

course are president trump itself. stuart: thank you very much indeed, blake. any more leaks from the turks were whomsoever the situation gets worse, doesn't it? >> it gets worse in terms of publicity to trying to get to the bottom of it, secretary pompeo says will give them 72 more hours. secretary mnuchin didn't want to be in saudi arabia when bad news happened in the middle of the conference. stuart: we are down 391 points. stuart: watching the other the tenure got back up to three twentieths now drop back to 317, briefly touch 316 from which means safe haven money going into bonds. stuart: investors are coming out can be now. senate foreign relations has sent to the white house a request to invoke the dynasty acts. they could do sanctions or paul diplomat whatever the choice with the end apparently the senate could ask about the white

house and asked david in saudi arabia. >> that have to override a presidential veto. lindsey graham may have the numbers to do it. the senate and the congress is not in session. what happened after the midterms. stuart: they do something but at the same time they don't want to do anything which would upset the apple cart of our relationship with saudi arabia. >> or we step out away from saudi arabia, someone else will step in such as russia or the chinese. mohammed bin salman when he announced reform program made it clear he wanted to affiliate with the united states. he wanted to lean west. if that doesn't happen, he has to survive them up elsewhere and that means leaning east. stuart: is an embarrassment for the relationship which america

has to saudi arabia. ashley: it makes it awkward. bottom line it's awkward until we get to the bottom of what happened. stuart: this is not stable by any means but we are now down 325 points. that's where we are at this moment. we've come back a little from where we were. stuart: the nasdaq taken it on the chin down 2% of the big tech stocks really getting hammered. stuart: i've got a point not if we were in an abnormal market of no volatility for five straight quarters that the records. this is rental market behavior when you have geopolitical headline risk. stuart: that's a drop in a house. 141 points is a big decline. as we talk about saudi arabia, pompeo, mnuchin, and although senate does there come a stock market decline, i don't want to lose sight of the other significant story developing today about is the caravan. we've touched on it briefly with the judge, but the president treated this morning three times about the caravan.

stuart: and about mexico. what is mexico doing? is mexico helping? mexico is sending as police officers, some 500 or so. they are basically to keep the peace. it appears they are going to not stop people from trying to reach the border. stuart: they won't stop and turn them around. >> they could. all you need is a national i.d. card to go for a al-salman or to honduras. all we need is an i.d. card. once you get to the border of mexico then it's different. stuart: mexico, stop them. and if you don't, american troops on the border. >> of ashes has come of mexico versus mexican law, not an extraordinary version, not a single one of those people get into mexico. stuart: the mexican federal

police commissioner says our federal forces on the border is not to stop migrant, but to help immigration officials maintain order. so this is the height of the mexican federal police commissioner. he said that on mexican tv. >> political matter as newt gingrich was suggesting, not to issue simply for republicans. brett kavanaugh and this caravan. "the new york times" is reporting democratic strategists are telling their candidates come to stay away from this immigration issue, especially in states trump carried, meaning a lot of states a lot of states for their democratic senatorial incumbents on the bubble in close races. they do not see this immigration thing is the winner for them at this moment. so suddenly got this caravan of several thousand people coming up to the border and trump saying he won't let them in. it could be a winner. liz: i mean come if you have the powerful "new york times"

advising candidates do not talk about the border, it's not a winner for you. we are talking the third way and center for american progress, reportedly candidates to avoid talking about the border. stuart: we been showing video. >> why would you finance another caravan at this point if you're anti-trump? >> because if he does what he says he's going to do any usually does not, this will help him and help republicans. mexico has two boeing 727 full of armed federal officers to the southern part of mexico. now maybe the president's threats will cause mexico to stop this confrontation from coming north. >> they just signed a new nafta deal. why do you need -- they need this mess after moving things over.

stuart: isn't it rather rich the democrats are not talking about it because they haven't done anything on the border policy. does this signal that the american states and latin american states, south american states are saying the border is because there is no border security? stuart: it signals to me after furor separating families over the summer, we turned full circle and immigration is no longer a winning issue for democrats. liz: can i quickly point out under obama 21,000 children separated from their parents and put into forced foster care in activity fifth and 2016. according to health and human services data. that happened, separations have been happening under a number of presidents. this needs to be more context and facts given into this debate. stuart: remind me of 2015 when we were running video of europe that column of -- >> yes, yes. stuart: pouring across former yugoslavia, pouring into western

europe and angela merkel let them in. just like that. >> she welcomed them. stuart: that was a fine humanitarian gesture. i got it. liz: understood. stuart: i got it. but she didn't ask anybody else. they went all the way through europe and it was wildly unpopular. and her political demise can be spelled from that moment. >> what happened, suddenly european countries supposed to have wide open borders started putting back their old borders from preeuropean union. that was reaction. stuart: american political president says come on in is not going to win the day with voters am i right? >> fully agreed. fully agreed. what would "the iron lady" had done? any doubt in your mind? maggie thatcher? stuart: i wouldn't want to speculate. [laughter]. the great lady, margaret thatcher. thank everyone for being here on this active news day. judge, dan henninger, many

thanks indeed. it is extraordinarily active business day. now the dow is down over 300 points. we have the treasury secretary steve mnuchin stepping away from that davos in the desert conference coming up next week. and we have the caravan as a major news story as well. plus, developments in saudi arabia. neil, it is yours. you have a full news plate. neil: you're not kidding, buddy, thank you very, very much, stuart. we're covering fallout as steve mnuchin will not be attending that summit in saudi arabia. obviously something came up at the white house, it was thought, you know, secretary? good to hold off on the flight plans. that he did. what was once a who's who cast of investment characters, defense industry characters, politicians, global thinkers, so-called davos in the desert as stuart was saying are not attending this event. i want to show you an interesting inflection point. it turned what was a gain for

defense stocks for reversal