big show tonight. we're talking if markets with with head of capital markets and sunday morning futures on fox news channel 10 a.m. eastern big show join me as we're live on sunday on fox news. have a great weekend everybody. "varney & company" start right now. take it away. >> good morning everyone. another jam-packed news day let's get right to the jobs report. only 155,000 new jobs created in november unemployment rate are holding at 3.7%. here's maybe more important news, wages average alley earnings up 6 cents last month that is only a .2% increase. i'll call that a addition appointing wage number and disappointing jobs number but we'll discuss it now how is this extremely volatile stock market responding to job numbers first of all dow industrial have reversed what would have been a 200 point loss of the open now up maybe 20 points no change for the s&p but nasdaq holding on to

a modest and 10 point loss of the opening bell now we saw a wild swing thursday 800 point loss reversed after wall street journal said that fed would take a wait and see attitude on raising interest rates. question, was that a response to trump's pressure? was that a response to extreme market volatility key question and we will discuss it see that time line there on market what a reversal. oil right now, opec meeting nearing a conclusion, there are reports for the cut of 800,000 barrels per day has been agreed to by opec members. they're also wait for nonopec numbers to announce cuts of their own that is produce the a bump in price of oil we're back up to 53 dollars and 81 cents per birl as we speak that's up nearly are -- 4 and a half percent let's see how this place out in long-term there is still a glut of oil only the world market. now look at the price of gas,

down for the 58 straight day national average is now 2.43 drive to missouri if you want a really cheap fillup average there is only 2.01 per gallon. i'm on my way. but huawei executive arrested in canada appears in court today. with a wrench into the trump china talks did they know about the arrest when they went into that dinner? good question -- and we're on it. welcome ladies and gentlemen, to the "varney & company" friday edition. >> now, that bombshell report about the arrest of the huawei executive sent markets reeling yesterday meng is in court and december first day between president trump and xi jinping

did trump team know about it when they sat down to break bread? we will send a deliberate message to them here's advisor peter navarro interviewed by trish regan last night. >> no one was on the team, and let me be clear and paint the picture for you. prior to sitting down at dinner we met several times as a group. kudlow steve mnuchin ambassador and senator pompeo ambassador myself with the president jared kushner. this never came up and so what i'm just telling you and we don't need to have this be extended conversation is that, we were not informed of that by the justice department and nothing wrong with that. justice department does thing independently on its own that's what happens. >> clean cut he did not know. suzanne did john bolton national security advisor? >> he told npr news he was advanced in advance and given a heads up that the arrest would

be taking place. not sure if that took place if they had heads up on buenos aires on saturday but he didn't tell the regs of the trump administration and president didn't know or was not given advance notice of this arrest. >> so bearing that in mind, there's a separation between the trump team and the arrest and the actual arrest in canada. the two separate events here. that dinner and the arrest. separate. >> that's right. there is a no way -- i can imagine if they didn't know before the dinner that that was -- any culmination between the two. canadian prime minister trudeau given a few issues and justice department issues and nothing to do with diplomacy. >> china see it is as negotiating tactic is this to maybe shave down huawei influence in 5g implementation as part of the future. >> the confrontation on trade talks. by the way trump tweeting about

this china this morning. i'll tell you now it is short and sweet here it is china talks are are going very well. that from the president this morning. by the way, larry kudlow will join us at 10:00 eastern time this morning. and i'm go to ask you about huawei situation i'll also get his take on what i'm calling disappointing jobs report. now, wall street journal reporting that the federal reserve is taking a wait and see approach to raising interest rates swroining now market watcher dennis now is the fed responding to the oven pressure from president trump and the equally oven pressure from a volatile stock market >> not responding to pressure from the president. let us hope from a federal reserves remains away from the presidential pressures that are going on and let's also remember are that fed does not lead rates it is amusing to me how everybody wants to talk about what is the fed going to do? the fed flogs what rates have is already done and always in history and continue to do so. fed does not lead the fed follows that's an important concept. >> so we have tenure treasury yield i know that's completely

separate from the fed, the yield this morning is 2.89%. michael -- >> might go lower. because the jobs report indicates weakness in the economy? >> the jobs report i think is -- actually quite surprising herb else said it i got lucky with let's not mince words. to hit had the jobs report on a number is abject other day i was on tv and said 155,000 it was 155,000 it was luck. >> but disappoint nothing question about it because consensus going in was a tad under $200,000155 is a bit of a disappointment. >> does it make any difference to you as an investor on market advisor? >> not really because let's understand that the -- normal revisions in the monthly jobless number is plus or minus 40,000 to begin with so if you hit 155 a the reality is that it is either 115 or 195 so 155 change my opinion on market no bearish about stocks have been for a while continue to be this

does not change my opinion. >> bearish about fresh none in there. >> i would not been bearish on is to bees since six months i'm going to continue to be a real bare market and if you have careful. >> a real bear market that last more than a few months. >> it teppedz to last a year or two ting this one will -- i think will be see week share prices on to middle of 2019 no question. >> you're a are thed voice on wall street. that's up for debate. tnches that's up for debate. so would you tell our viewers most of who republican longer term investors would you tell them to sell stuff in sell their stock? >> i would tell them to raise cash 10 or 15% percent of their -- >> if you haven't already e done it i think you should do it and serve yourself well, over the course of the next year. strong stuff supposed to be. better to have an opinion than to be equivocal. >> stop that. thank you we'll see you. >> yes, sir. good luck now. >> it has been a roller coaster

week for stocks and i've been maintaining i've been saying computer trading you know, algorithm ares, i think that played a part in parking lot wild swings on the stock market. investors do not like this. joining us theresa goodie former fec attorney. okay, theresa, what role does all gore rhythmic trading play in this volatile market? >> i think that it is starting to really show is that it compromises the integrity of our market. because any time there is some sort of a price movement it is exasperated by algorithms we saw back in 2010 with the flash crash and i think that we need to look at the market da it now to see what's goingen and just how aggressive these algorithms are trading and contradicting to selloff. >> what can fe krrgs do about it? >> they've been looking into it for some time and they have started setting up some safeguards, i mean, it goes years back. i think they need to do more. i think this is really one of those time when is you need

market participants to come together with exchanges and fec so you have regulator and market participants trying to figure out what kind of safeguards need to be in place to ensure that you know these high frequency trading algorithms don't contradict to the volatility in market. it does nobody any good to have it shall volatile markets that people can't trust, and you need investors to trust it and you need the price to actually be -- the true value of what the company stock is and so that needs to take into consideration monetary policy international concerns, and not just swing sws prices. >> i want to talk to you about tesla they've replaced their general counsel with someone described as season trial lawyer. what do you make of that move? >> i'm optimistic. the chairman of williams and conley coming in as general counsel i think is a very good move. and it shows that there is some more sophisticated advisor

sophisticated in things that tesla needs. litigation they're going to have a lot of litigation coming up and they have it started. and also somebody with some security law background because, obviously, security laws is an issue that -- elon musk is run are into. smg probably good news for tesla. they get professional advice, the stock is up to 370. looks like they're home free. >> i don't know if they're home free but they're definitely take some good steps. >> okay. theresa. thank you very much for joining us. complicated stuff but you make it easy for us and we appreciate that. thank you very much indeed. okay. >> not quite sure why that is on your screen at the moment but -- take a look ignore it please. [laughter] there we're going to open slightly higher for dow industrials 33 points up for the dow s&p up about a point. a fractional loss or for the nasdaq. steady she goes when the market opens. anxiety over u.s. trade war, but the rnc says mr. trump is winning despite all of the uncertainty. caylee from the rnc will join us

later to discuss is that. nancy pelosi says border wall funding is off the table. that's what she says she says that wall is immoral. we have a border guy on the show. i want to know how fewer people are actually crossing the border i'll ask is him that question. look at phillip morris. we have the ceo on the show in tv terms that is a big get. i want to know with the growing interest in marijuana investments do they have a plan to get into cannabis? how about that? he's next.

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phillip morris international welcome to the program. >> thank you, and thank you for having me. >> let's get at it shall we. altria is going into cannabis are you? >> no we're not. >> not at all. >> no planses for that today and you know there is a lot of reason ares for that. for us, economic, but also fact that international company, and you know there are many countries that -- they have different views on cannabis. so we have to be very careful about that. >> sure. we have other thing to do in priority for us. >> another one. altria is investing significant money i think they're taking a 45 -- they're taking a big stake in jewel, the the e-cigarette company. what are you doing with e-cigarettes? >> well, the -- we have developed a portfolio product because the problem in a cigarette is not nicotine it is least in causing disease. is the fact that we burn tobacco. that creates smoke and toxins in

smoke. answer to the problem is -- not to burn which is hitting either tobacco or like here or have nicotine sold purely and that's a portfolio of products who have developed, and these are products that have very high ability to convince smokers to switch out of cigarettes into this new category that is less risky. >> smokeless that is the correct expression smoke free products because some have tobacco some don't have tobacco. >> so there's no smoke. that's your rate of products. >> temperature hitting. but you are aa lowing consumer to get that nicotine which is what they want. tfntle they deliver nicotine because smoke is one taste, satisfaction from nicotine try to be close to ritual of using a cigarette as possible. >> with their hands.

to get used to if. >> yeah, and one billion people smoking around the world, and projection are same number by 2025. we're 40 million in the u.s., and key thing is to develop products not only to reduce risk but ability to remove. but -- basically the products we have like now in the markets with with real market -- >> what's it called? >> just a name like a brand name. >> is it available in america? >> not yet e because it is under fda review just now. but it is in other markets like japan -- >> only on our screens right now. that is your smokeless product. cent? correct? >> this is yes. that's the one. >> that's the product that hits tobacco. okay. that's or particular -- >> how's it doing in the 46 markets around the world where you can buy that product? >> it is doing very well and

progressing in every market. there are markets where -- countries where it is higher for example, heat tobacco products in japan are 22% of the market. 22% of people or 8 million smokers have switched that heated tobacco product like the product showed. 22% in. >> smokeless because that generate smoke it is -- a vapor that people inhale. >> so far, the fda has not nicotine is a drug it's outlawed. that's what you're fighting really isn't it? >> no. i think fda has made very clear that nicotine is the least of the problems in cigarettes. it is addictive, and such we have to be very careful and should not start using nicotine most importantly teenageers but the method of nicotine and taste a policy is twofold.

one is to authorize on the market a product tobacco or vai force as we have so that consumers have a choice to switch to product ares other time take measures on cigarettes so -- to facilitate this region. >> thanks very much for coming on this show this morning. >> thank you very much. thank you. phillip morris guy, thank you very much. [applause] let's check out the futures market. i want to see how this -- stock market open this is morning because we've had wild swings recently. that's an understatement okay. i think -- going to be up 20% no wild swings at the opening bell i'll put it that. trump making measures to ramp up american oil exploration and production you can bet the green is not happy about that one. we'll have details for you and propelled u.s. into world war ii changed history. 77 years ago, december 7th, about 1941 today the nation will pause for remembrance ares at pearl harbor.

and then, as then president franklin roosevelt put it the day will live in infamy. i am a family man.

i am a techie dad. i believe the best technology should feel effortless.

like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. >> opec has released its official statement they have a 3% cut in production from all

members except iran venezuela and libya. that amounts according to "the wall street journal" of a cut of 1.2 million barrels per day but these cuts take effect on january the first. my dollar says, they'll be producing like crazy until january the first and the the glut will continue until january the first. maybe after too. now this -- president trump wants to ramp are up oil exploration are. the greeners will not be happy about this. ashley give me the story on the ground nesting sage -- >> very good they are ground nesting because of that they consider endangered close to pen danger species category for some time, and under obama administration has been tat was basically locked down for any oil or gas exploration with the swipe of the pen. trump administration is opened up essentially 9 million ache percent -- to very rich deposits in the american west. million now having said that they'll produce to protect these birds up some states could stick

with old rules we understand montana, oregon will -- whereas ohio will go with new rules that that's a massive expansion of the 9 million -- 9 million rich deposits i should point of point out that is huge for oil and gas production are down the road. got it. then we have boeing, they're walking away from a satellite project finance by china. is this part of our amendment suzanne to stop them technologically or what? >> stopping technology as well but under export and rules and boeing cannot sell satellites to china that stems from a wall street journal report diving through this there was an investigative piece and looked like boeing was in midst of this deal it less or short to complete this project of selling satellite to chinese owned entity but look like they have now stock stopped this transaction. >> got it cold. going to open this market in

what is it now four minutes time we will be up about 40 point the market really turned around. werps going to be down 200 now we're going to be about 40. we'll be back.

>> all eye on the market when it opens in 18 seconds time.

why? because yesterday we were down 800 and then we swung all the way back to a tiny loss of about 70 points it is called volatility. you know what your stocks are doing right now. well i'll answer that in two seconds because market has openedded it is friday morning, 23u9 30 eastern time. that's yesterday's close down 79 that's the market right now. we're waiting until all of the dow 30 have openedded and then you get a handle on exactly where we are and at this point with about half dozen stocks still to open we're down 33. still got 5, 6 to open and down 41 down 40. i don't see much green in dow 30 that's why we're down 53 points 50 points now. this is a contradiction of what the futures were telling us. we were supposed to open up 40, in fact, we've opened down about 60. with three, 2 stocks to open wait for them and we're down 4959, 60 points at the have very moment in time all right that is a loss of what about a quarter

of one percent. a similar story on s&p. down almost almost a quarter of one percent. that's a mere 4 points there. how about the nasdaq this friday morning, that too is open with a loss of about one-third of one percent so you've got some selling in technology. in the early going -- john leifield david dietz suzanne lee all with me to try to figure this thing out and i'm going to start with a jobs report. in my opinion it was disappointing only 155 new jobs last month i call that a disappointment so david dietz first of all, what does this disappointing jobs report mean for the market? >> well, i kind of like the jobs report to tell you the truth. you know getting over 100,000 job when is you have unemployment at a 49-year low, wageses are up 3.1% year over year that's faster in my view than rate of inflation i'll give it a pass also where weakness was in government that's what we can agree on stuart and also

energy and we know what's happening in energy pack so i think that's okay. when you have i think wage growth david has been anemic and it is like extra six cents in your pay pack every month with thought because labor market is so tight wages would have to go up. in order to retract bigger more qualified workers, that's a great scenario more money in your pocket it hasn't played out like that. businesses have a tight labor -- fielding right now but not paying more for it. >> it gives fed to not raise rates and lock of independent but this was just bad enough that -- going to raise rates good for the market. >> let's be honest. what if market is down why is market down if it is all of this positive stuff. down worse earl whyer in the morning and pair some of their gain and losses heading into this open. i would say this is actually pretty positive and don't forget so you know about when you're not running for safety of treasury yields that also means that yield curving version, are they going to buzz me on that. [laughter] >> not called for but that might

be put off a little bit longer. >> why am i always guy on other side of the fence when jobs report comes out? king thely disappointing because i remember the reagan years, when we regularly produced three, 400,000 new jobs every month after his had tax cuts. and waiting for same thing. >> unfortunately in a new normal and that's bad i agree with you. i think job report was disappointing but enough to get fed to not raise rates so moves up on that. maybe market has been listening to us because we now turned positive dow is up all of 7 points as we speak exhausted jobs moving on. trade, the white house says -- didn't know about the arrest of the huawei executive when they sat down to dinner with china's leader they didn't know they say. john, is this trade fight still a factor in the market? >> absolutely. and no one is going to believe that. even if it is true no one will believe it. >> it is true e by the way. >> that's what they say come on. not going to believe that. let alone last time president

had a meeting with xi in mar-a-lago they bombed syria and now arrest the the daughter they're not going to believe this and timing terrible. i think it is terrible also for the trade negotiations. >> suzanne can you just give me some perspective on this arrest. because xi is -- she is daughter of i think china largest tell come communications make ergs. so basically i would equate huawei to microsoft or telebecause they have a steady stream of profit they're not very flashy but they make a lot of money in revenue. they work with a lot of governments around the world with and this is a company seen as a state championship basically because they've done so well outside of china. a lot of the the revenue comes from global countries. >> china does think that this is linked to the trade talks. >> they see this as -- yeah. that's right they do see this going back and iron curtain that's thrown up against china. they see on global trading

stage, but let's see where it goes it might be a negotiating tactic. >> david you've got that look an your face am i wrong again? [laughter] >> it is not helpful for trade negotiations no question about it. hopefully china doesn't allow this to escalate and tit for tat with u.s. executive over in china. >> what do you got ash? >> headlines from the president he says he will indied nominate attorney general william bar to again head the justice want goes -- it was held that position george h.w. bush he would bring a permanent replacement for jeff sessions also mr. trump will no nate state department spokeswoman heather formerly of fox news to be u.s. ambassador to the the u.n. she would take over from nikki haley who is retiring from that position at the end of the year. >> okay none of that has any impact on the stock market interesting political development on this friday. let's get to big tech. a l has fallen to third place, behind microsoft and amazon in materials of the most valuable company in america.

apple is in trouble. >> well, i don't know about that. i love my iphone. but the fact of the matter is iphone growth is stopped. with new model pick up mantle, of course, we won't know because they won't to tell us how many are being sold and one of the big markets is china and china concern so there's many questions as there are answers at this point for this company. >> apple is in trouble. supply chain disruption what he's talking about with china that is a big deal if tariffs escalate they have a lot of problems. check that big board you know, in a period of extreme volatility, not tboipg to call this a volatile market and this point and time ladies and gentlemen stepping down a bit, now don't jinx it up 24,900 that's where we are. individual stocks here we go. the gun maker american outdoor brands, higher profits there. wow look it go 24% higher not bad. higher sales at lululemon yes they still call i call them the yoga pants people.

they're down a buck 26 at 130 what do you say? efnlg stretchy pants. okay. they male versions by the way. >> they do -- [laughter] >> for christmas -- terrible idea. yoga pant that's awful. >> stew in yoga pants. [laughter] [buzzer] you used it be a wrestler you used to wear -- >> right. [laughter] >> the show has a friday feel does it not? okay let's get to the beauty retailer ulta their holiday sales forecast was not very good and down 6% that's a big drop. look at dollar general, they want to appear to more health conscience consumers offering a lot of cheap healthy food they expand the grocery business. the the stock, though, is down just a fraction. so this is going to work on a growth. >> i think there's a chance to work cheapen and don't want to go together hard to eat healthy

and do it -- that's one was real problems with lower income with schools all kind -- that was biggest complaint to make it work this is huge. >> cheap and healthy doesn't go -- that's right. well -- work with that for kids with everyone and said do you give them healthy food you can't afford healthy food but you can afford prison accident scene cheap and healthy don't go together. >> what is wrong with pizza? >> nothing. [laughter] nothing wrong with yoga pants. [laughter] back there. okay. let's get to facebook, serious stuff here. 90 american based mutual funds have completely sold entire positions in facebook. that seems -- well -- that's the problem for facebook. come on. >> what percentage of mutual fund is 90 funds so you know, you have to know why are are they selling it is it for esg reasons or do they see a fund mentality problem we would like to know that. certainly -- regulation coming down the the

pike adam? >> well, isn't that it? >> i mean, of course, but at this point maybe it is too late to sell and the time to buy because i think a lot of this is now impacting the the price. we will see what house of representatives changing hands -- okay i have another big story for you and i with love this one first time in 75 years -- the u.s. just became a net oil pex porter. john, i love this. >> i think it is wonderful. i grew up in the era in west texas and i had to see how badly country was hurt and had to deal with people because of oil prices we don't have to do that anymore great for our country. >> did you know they are building nine terminals around gulf coast each of had had is capable of taking a supertanker, and they're going to load those supertankers with oil from west texas, the basis. adding 3.66 million of pipeline in next five years in west texas alone it is tremendous. >> i love it.

all right. [laughter] two stories on tesla begun construction process for second gig ga factory in china president trump trade war hurt it says so building plant over there and number two, it is replaced its general counsel with who is called a seasoned trial lawyer. now what do you say to that? >> well certainly i like the fact that it is taking a long view by their business in china, in the wake of what i think is kind of short-term tariff issues i tip my hat to them on that and in terms of changing counsel i like lawyerses who are seasoned i've give them that and whether you want theming focus on trial or trade issues not sure about that. >> this is lawyer who handled around the world back in august about -- taking the company private. he was had the -- one who handled that he is bought. >> look at the stock at 375. this is another one i got it young. i honestly thought that tesla was toast. >> i thought it was too.

>> on camera it still could be. and elon muck is highly leveraged personally to tesla stock and kowk margin called that it goes much lower. >> what a day. what a way to start the show we're up 88 point by the way. john, david, many thanks good stuff today. we appreciate you being here. >> again. look at that big board check it out please buzz now we're pup 78 points. we're just back above 25,000. big guests coming up in our 10:00 hour. national economic director, larry kudlow, i'll ask him about the jobs report. china trade, and yes, of course, the federal reserve. riots over a gas tax. anger over the brexit vote. glows days away. europeans simply are not happy my take on that and the risk for our money here in america because of what they're doing over there. but huawei executive arrested in canada appears in court today. the white house says didn't know about the arrest before that dinner with trump and xi jinping we're going to get into that

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president trump speaking now let's listen in. >> hopefully that process will go very is quickly. and i think it will go very quickly and i've seen very good things about him over last day or so when people thought it might be bill barr so he will be nominated for united states attorney general position. i think he will serve with great distinction. i also want to inform you that heather somebody that we know very well who has done a great job at -- as working with mike pompeo and others at the state department, heather nowwart will work with nikki haley to replace niki at the united nations ambassador to the united nations, she's very talented. very smart. very quick, pane i think she's going to be respect ared by all. so heather will be nominated for the ambassador to the united nations. those are two very big wins i have another one for tomorrow.

that i'll be announcing at the army navy game, i can give you a little hint that will have to do with joint chief of staff and succession, and i look forward to telling you and i'll see you later. see you in kansas -- >> it was brief and president did not say anything which i caught that would affected market we did see market move up to a triple digit gain. but president there was talking about the -- anonymous for the new attorney general, and the new ambassador to united nations used to work here at fox we have now a gain of 90 points for big board that puts us above the 25,000 level. take a look at morgan stanley. new york stocks exchange is is accused of letting morgan make afterhours trades. gerri willis at the exchange tell me more about this please. >> all right so -- here is the story that's causing all a of the stock on this floor

of the new york stocks exchange today stocks think on cover of the new york post, what stses about whether or not morgan stanley trade afterhours last friday. busy day, rebalancing going on. this was -- as we were talking about china trade that day. here's what i'm hearing for the seed today they have no comment on this specific trade. they say all complaints of this sort are referred directly to the regulation we have no idea if they're investigating this now. but that's what is happen hadding morgan stanley did not talk to us. we reached out to them pee reached out to the fec. people here on or flue of the exchange tell me this, what what happened is that your trade is time stamped before 4 fm, and the actual close of the trades can go after 4:00. allegations in new york post that they came at 4:08 that's going on down here. big controversy people on both sides of this, with and we'll

continue to follow it today. back to you. >> thank you very much indeed i want to get back to the trade are issue or. the arrest of the huawei executive really sent markets south. very are quickly yesterday -- joining us now economist peter marisi who is a trade guy. now, i don't to get back into this discussion about whether or not the president and his team knew about the arrest when they went into that dinner. i want to simply say that this is put a wrench right into the middle of the trade negotiations. and i'm wondering if it is beginning to be bad news for those negotiations as we go forward. >> well it depends how chinese want to play the ball in their court. they really need a deal if mr. trump goes forward with his tariffs it will disrupt their economy quite substantially and it also gives mr. trump and opportunity to adjust tariffs to make up for some of the mistakes for example, you know, tariffs on bicycle parts but not on bicycles. so that -- it doesn't work against the american industry, and frankly,

it is going to hurt the chinese much more than it hurts us. so you know they have the incentive to do something on traitd in matter what. >> wait a second they take arrest of the huawei executive, as being picked on by -- by president trump and then america taking a very hardline. they may well respond to this with maybe -- some harassment of the american executives in china. that would really escalate things in a way which you and i don't want. >> that's true. however, that might not derail the trade talk. they might do something like that so they can keep the trade talks on track. you asked me about trade talks. but i think president xi is big boy his advisors may be going out of their minds. but i think he understands playing the kiengdz of game he's played with regard to industrial espionage and state espionage regard to theft of intellectual property it take some hits. this woman, this cfo is exactly

a king pen in chinese communist party frankly, you know president xi shown pus people are expend nbl his mind so his loyalty to her will not transcend getting some kind of deal because his survival depends on continuing growth that around 6%. trump puts on tariffs, most estimates indicated slips to 5. that sounds big to us over here. when you've got the kind of, you know, still low incomes they have in northeast of china that's very important. >> okay. peter parisi who approves of hardline trump. peter thanks for being with us. see you again soon. thank you. >> take care. >> better check that majority we've been dancing around a gain of about 100 points. now we're up 88. it looks like a fairly even split between winners, slightly ahead of losers among the dow 30. congress, passes a bill to delay a government shutdown and border wall and border wall fight i

should say. question, can they come to an agreement when nancy pelosi calls the president's wall immoral? i'll get into that next. welcome to the place where people go to learn about

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saying. suzanne. >> over in europe we have huawei saying they would never tolerate any behavior such as what has been accusedded in the arrest of huawei cfo in canada on partial, possible extradition here to the u.s. but also they're saying they've never been asked to disrupt any next and they categorially reject any allegation that we might pose a security threat. smg that's important. because they're looking at this as a security arrest. a judicial arrest, separate look at this is my opinion. separate from the trade dispute. they're not brought into the trade dispute feting apart from that. company is i think separatings two issues it is maybe the media -- and -- >> surprised to hear that. i mean that's fairly good news frankly. got it. thank you suzanne is let's get straight politics. congress passes a bill to delay a government shutdown and a border wall fight for two weeks. joining us now congressman jason

republican from utah. or former congressman frut. jason welcome to the program. >> thanks stuart. >> naption says a wall is immoral. the democrats say you get 1.6 billion dollars for fencing. but not a wall. i say shut it down until we get the wall. what say you? >> i think that's a big question for president trump how hard a line is he going to hold? you know all bad bills that are going to be passed usually happen the week of christmas. so the deadline is december 21st i'm sure congress will do what it always does and go up to deadline and senate will pass a bill at 1.6 billion you're in the right for the border wall and dare them to keep, you know, not sign that bill. they'll fold like a cheap suit and go over to president and then the president's decision on friday december 21st. >> i don't think that -- the democrat position is very strong. at this point with all of these

caravans at the border, to say it is immoral to build a wall, and not give real money for a real wall. i think that position is very weak. >> the federal government is going to spend 4 trillion dollars over the next 12 months. to go out to find $5 billion is not a very difficult thing to do stuart. it is a lack of political will. the part of republicans they don't want to pass this but it really does come down to if 6 to 7 democratic senators qowld they be willing to go up to 5 billion dollars and give the president his money? and this is the high stake, the showdown that we're going to have on the the 21st. >> at the a end of the day, i don't know when the end of the day comes but at the end of the day, so to speak, do we get that wall? >> i want to be optimistic but then republicans should have passed this about two years ago stuart we're two years into the donald trump presidency and they haven't funded wall. we've done a continue resolution

after a continued resolution and they've never produced it. so their hand has been weakened after election i don't know what compels them to do it now. i really don't. [laughter] >> i think that -- opinion in the country has shifted to build the qawl. do you agree? >> i think the reason donald trump are became the president, donald trump is in part because of his tough line on immigration pane i think house and democrat republican -- house and senate republicans having gotten that message. now, the house passed it out at 5 billion dollars. but when they should have been doing is 25 billion dollars like a year and a half ago. and they didn't. and so they try to talk tough now like hey we're going to do something in the house you only need a simple majority. so nancy pelosi doesn't mean as much here. it does come down to these senators -- at least in december. that's the the key. >> fascinating stuff glad you're here sort it out for us. thank you, sir. big guests in our next hour larry kudlow will be on the show

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visit redcross.org now to donate. stuart: almost 10:00 here in new york. of course it is 7:00 in the morning on the west coast. it is friday. the markets right now show a modest gain. we're up what, 67 points on the dow industrials. that puts us back above the 25,000 mark. we're getting important reading how we feel about the economy. it is called the michigan sentiment indicator. ashley: it is. the first reading. came in at 97.5, which is actually stronger than estimates. that is exactly the number we finished up with in november. look, overall, for 2018, this number has been strong throughout. it has been very positive indeed. the first reading of 97.5 is another strong indicator. stuart: david bahnsen with us

bahnsen group cio. apparently we're feeling pretty good. >> my these sus, the key though. the consumer the key is business investment. that is pushing economy through 2018. business sentiment has turned in last couple months i believe because of the trade war. consumer sentiment is there. take it for granted to some degree americans love to spend. business investment what we need, cap-ex. that is what we're watching. stuart: dow industrials not reacting to those numbers. now this. the storm clouds are gathering in europe. okay, that is a cliche but it is oh so accurate. the mess over there will become very evident this coming week. unfortunately, we in america, may well take a big hit because of the fallout from it.

first of all, france. tomorrow, it virtually shuts down. the eye telephone tower is is. common man is in revolt. europe's unsustainable socialism just doesn't work. then on tuesday the brits will vote on prime minister's may's plan to leave the european. odds are it goes down to defeat. political chaos. these are divorce proceedings. the marriage between britain and europe is coming to an end. the financial fallout will not be pleasant. there is italy. they're in a bare knuckles fight with the rest of europe over money. if the brits crash out of the eu, so too could the italians. let's not forget germany, europe's most important country, biggest economy, it is virtually

leadless as angela merkel prepares to step down. add it all up we're looking at existential risk, risk that the european union will cease to exist in its present form. that is the worst case possibility. even if it doesn't get to that extreme, the financial markets in europe will be all over the place this coming week. wall street, our market unlikely to escape. i think europe may have played a role in our recent volatility. after all the events of the coming week, i suspect we'll taking even more heat. watch out. european union is a thing of the past. with socialism failing, the european union will have a hard time surviving. it is not going to be pretty for them or us. the second hour of "varney & company" is about to begin. ♪ stuart: well you heard what i had to say about europe.

i've been saying this for a long, long time. i'm a refugee from over there. tammy bruce with us, independent women's voice president and fox news contributor. look, you heard what i had to say. socialism is not sustainable. they're cracking up. what do you say. >> i'm a refugee from california. >> welcome aboard. >> thank you. socialism because it is so weak, fragile, you never have a good economy, always faults is never prepared for surprises this was a surprise. macron was elected on the paris accord, on doing more green work. the fuel tax was about that. wasn't that they needed more money. it was a demonstration how we're morally superior. that is what sparked this. it was the regular person realizing their livelihood, were they going to work, no one has any money. then others begin to jump in. who destroys a war memorial over protesting a fuel tax. that happened there. they're closing museums.

that is larger. the french don't attack their culture, they don't. what we have after the collapse of isis, 6,000 europeans were turned into the european theater who are fighting with isis. stuart: 6,000 ice is back it europe. >> back to europe. 1800 of which were french, consider brussels in that as well. you have open borders of the european union. it's a nationwide crackdown. they have also arrested and stopped teenagers who have been setting cars on fire in the suburbs. remember in 2015, the priest who was murdered on the altar at a french church. that was two teenagers who did that. so this i think what we have to look for, not just more protests, the failure of socialism, but yes the socialists ironically joining in on this. they're arguing, now the fuel tax is reversed socialists want stricter admission requirements at universities reduced. that is a new demand.

they're worried what they're seeing in suburbs setting of things on fire, continuation of all of this. this is what europe has to worry about. how many islamic cells are operating. what socialists will do. this will be opportunity for the chaos that the left thrives on. stuart: make a judgment for me here. i have gone to an extreme. i'm saying the european union is cracking up. >> clearly. stuart: its crab-up is imminent. is it? >> i think it is. this is what president trump has been able to do here. when you have a strong economy, you can handle volatility. it is baked in, right? so we can deal with the trade wars a bit because the stock market has become so strong. yes, we'll go down a little bit. but he created an environment where he has got some manueverrability. with socialism what is happening in european union, there is no room for any surprise. so we have president trump to thank, to thank him for us being able to weather this storm. at the same time, the european

union never really could have survived, let alone what they have done with immigration, what happened with terror cells, in addition to economic malaise and problems they have. stuart: tammy bruce, thank you very much indeed. good stuff. david bahnsen is still with us. i don't know when you think socialism breaks up in europe, the eu breaks up but we'll get some serious developments in europe this week. could it wash over to us and hurt wall street? >> so in a short term sense you have to look at this differently than sort of a long term generational perspective. most of tammy's comments are social, cultural, political, and correct, one thing you didn't talk about, idea of a single currency doesn't work with a bunch of different countries with different economy, different strengths and competitive advantages. that is the fundamental flaw. the european will not break up. it is not imminent.

what i believe you're talking about a volatility spillover, but it is entirely possible. i but i want to play the other side. global capital has to go somewhere. we've seen this nine years. other continental weaknesses are u.s. strength. as dollars flow into the u.s. debt markets and equity markets. i believe there is a sense weaknesses they're suffering there can be a benefit to u.s. markets. longer term you have to watch the italian bond spreads. that is a barometer what is happening. telling you the fear. it was greece eight years ago. we could follow that, see what is going on. stuart: you would agree a economic mess is developing, has developed in europe. >> for 20 years. stuart: immediate consequences to america could be money coming in, but longer term, we take a hit? >> here is the thing, very important for our viewers to understand, nobody can make money trying to predict exactly when they're done kicking the can down the road. they have done an amazing job kicking the can down the road but at some point that ends.

it's a failed experiment, the european union. ultimately we can expect there to be more volatility, but i agree long term, european union is a failure. short term we should look to the benefits that are in the u.s. markets. stuart: got it. >> one thing. president trump warned macron about the paris accord what it would do to fuel prices if he acted. president trump has been mocked for everything he has done. he is proven correct with this reaction. macron approval rating is 18%. this is another thing, america is seen as a stable market because of president's leadership. stuart: susan, i'm sorry, tammy, david, thank you very much indeed. talk about dow industrials after 39 minutes worth of business is all up of 15 points. that is all we got. we were up 10010, 15 minutes ago, now we're up 10. big tech names, apple fallen to

third place behind microsoft and amazon in terms of being the most valuable company in america. tesla, jefferies upgraded the stock. they say get out there and buy it. they hiked their price target all the way up to $450. that is where jefferies thinks it is going. it is up 377, up 14. chevron is the biggest gain on the dow. that is because the price of oil is going up. we have announcement of opec, they will cut 1.2 million bears a day starting in january of next year. they might be producing like crazy until january 1st but the oil glut will continue. we're at $52 a barrel. president trump says the china talks are going very well. could the arrest of the huawei executive throw a wrench into the talks? i will ask larry kudlow, he was with the president, was with him during all those talks.

democratic leader nancy pelosi says border wall fund something off the table. she and chuck schumer set to meet with the president next tuesday. question, if trump doesn't get money for a wall, what does that mean for border security? we're on it. mary barra meeting congressman from ohio and michigan. i will talk to a congressman that met with her from michigan. i want to know what she is offering those without a job. this is the second hour of "varney & company." ♪

stuart: there is volatility here. we were up 100 not too long ago. literally minutes ago, now we're down 46 barely at 25,000. look at big lots, cutting full-year forecast. it says the holiday season willing challenging.

ouch. it is down 20%. lululemon going the other way, same-store sales up 18%. sorry not going the other way. same-store sales not going the other way. the stock is down nearly 5%. american outdoor brands, parent of smith and which is son, the gunmaker, higher profits an sales, that stock is going the other way, up 15%. tesla, number one, hired a seasoned trial lawyer to replace the general counsel. the stock is up 11 bucks. >> general counsels todd marin is out, there at five years. close confidante of elon musk. he is replaced by a seasoned trial lawyer from d.c. he represented tesla when mr. musk put out that tweet in august saying, talking about speculating about going private and having the funding which led, actually led to him having

to step down as chairman but that individual has been brought on as the head lawyer. he is a trial lawyer, which tells you something. stuart: tesla's stock doing very nicely, thank you very much. there is a second story, started construction process for second battery factory in china. >> this is a sign of warming times between the u.s. and china. we're looking at a 2 billion-dollar gigafactory, tesla will build in shanghai. they are starting the bidding process, construction process for the factory. looking for partners to invest capital. teslas has been hurt by trade tariffs. and china slapped 40% trade tariffs on cars coming in from the u.s. that includes tesla. tesla sold very few in the past few months. stuart: the stock is up 10 bucks. ladies and gentlemen, larry kudlow is with us, national economic council director. mr. kudlow, welcome pack to the

program, good to see you, sir. >> appreciate it. stuart: this is round two of our jobs market discussion. i think 155 new jobs last month is disappointing. i would have thought it would be much higher, bearing in mind the tax cut this year. you say what, sir? >> that was a good number. we had 250,000 last month which beat everybody's expectations. 206,000 new jobs per month in november of 2018. that is a very big number historically. wages are rising, wages 3.1%. unemployment rate, unemployment rate almost fell, we almost got the unemployment rate to a rounding of 3.6 but not quite, still a good number. you have 4% growth in the second quarter. 3 1/2% growth in the third quarter. in the fourth quarter you're looking 2 1/2% growth. only 155,000 new jobs in november.

that is a nasty downtrend. it is not what we were expecting, bearing in mind all that you had said about the tax cuts in the overall economy? >> stu, i'm going to take the over on your 2 1/2% forecast. so we'll have, we'll settle up the bet later on. but i would also say this, the economy is now in a 3% plus trajectory. since president trump came in, the seven quarters, not the first quarter in 2017, he has no power over there, but the seven quarters we're running, i believe the number is 3.1%. it is 3.3% so far for 2018. that is, look, nobody said we could beat two. obama's was one to 2%. we're running now three plus. so that is a pretty big thing. i might add we're seeing capitol goods were revised higher in the latest gdp report. i think that is solid. i want very much to spend my

time making you happy, satisfying your deepest desires. i'm working on that. stuart: here is how you can do it. tell me we'll get 3% growth next year. >> we're going to get 3% growth next year. we'll get 3%. i'm saying it. again i spend a good part of my day making sure you are happy and satisfied but i actually believe we will get 3% growth next year. i believe that supply side policies, what's happening here, the potential to grow is greater. output is increasing at better than 3%. the inflation rate, with more goods being produced and more efficiently with productivity at two, now. the inflation rate is actually disinflating. that is 1 1/2%. doesn't get much better than that. that is why you see all the fed people now saying publicly, that we're at neutral and they're not going to have to do perhaps anything after the next meeting in, later this month. maybe they won't do anything at

that meeting. so, it is a pretty darn good combination. stuart: okay. i have to settle something about that dinner between president trump and xi xinping, and you were there. it was december the 1st, and on that day, as you know, larry, the senior executive at huawei was arrested in canada. now, the speculation that president trump knew about it, and that deliberately arrested on that day, and that he is taking a very hard-line with china. now, did know, did, peter navarro says he didn't know. who knew? was it known we were going to arrest that executive on december the 1st, when you sat down to dinner? >> president trump did not know. none of us knew as a matter of fact. stuart: nobody knew. >> period full stop. stuart: chinese may be taking it the other way, saying you're having a go at us and that made the trade negotiations more fraught, shall we say? >> i don't know about that.

you're talking about a law enforcement action, not a trade reform action. i could be wrong here, stu, time will tell, but we are in deep discussions with them. i'm sure, i'm not privy to the law enforcement action. we're certainly in deep discussions on the trade actions. i really don't think one cancels out the other. i will also say, at least to my way of thinking, china's, the telecom company, huawei, they violated the sanctions with iran, okay? they violated the sanctions. they had been warned. finally we had to prosecute that. we thank our canadian cousins for helping us out. they had been warned. you can't break american law if you will do business in the united states. i think that is a pure law enforcement matter which hopefully will be corrected. stuart: yesterday as the dow was tumbling, many hundreds of points, down about 800 points,

"the wall street journal" said that the federal reserve was going to take a wait-and-see attitude on raising interest rates. do you think the fed was responding to pressure from president trump who had said, don't raise rates? were they responding to the market which was down 800 points? that kind of pressure is not supposed to be applied to the federal reserve? >> well, i don't think, i don't think the fed is responding to that pressure, at least, the very senior people at the fed have told me, it is not, they're responding to the data. now, look, the president has made his views known. as an experienced, successful businessman and investor. so he was not happy and felt they were moving rates too high, too fast. i think, when this story finally shakes out, the president's view will probably be correct. and there is no need for more tightening by the federal reserve. we're not breaking down the wall of independence. the president has said that many

types. he is just expressing his view. i think what's interesting is, that the very senior people at the fed are coming around to that view, on their own. i mean they're using that word, data dependent. i'm fine with that. whatever their ways and means are. there ain't no inflation. the economy is growing. we shouldn't stop that growth. i'm simple-minded, straightforward. jobs are rising. commodity prices are flat. oil is down. it's a very good situation. again as i spend my time trying to please you we're in very good shape. we're running 3% plus on a smooth four quarter basis. it doesn't get any better than that, stu. stuart: well, okay. you make me happy. i'm smiling right here sir. >> that is what i want to do. i got to do this. stuart: you were in the tech meeting yesterday with some very high level executives from the big tech companies. you were right in it, i believe. did anything come out of it?

can you give me something that came out of the meeting? >> i don't know about concrete and it was a very useful discussion and sharing of views about a number of key issues looking towards the future. stuart: let me jump in with this. the top guy at google was there. >> yep. stuart: google proposes to create a search engine for china which would allow china to censor all of the people of china and go after dissidents. was that raised because a lot of people think google should not be doing that? >> i don't know those details. no, that was not raised. when i meet with the new ceo of google, they talked about china coming back into business there but he said they were quite far away from any deals. censorship is still a big issue. ownership is a big issue. licensing is a big issue. but that doesn't come up at all. i mean, we talked about a lot of

really important future technology issues. how the u.s. should handle things. what changes in reforms should be made. what should stay in the private sector. where the government might help in a modest way. i thought it was very useful. had a lot of outstanding people there, top peep. stuart: real fast, larry. you're managing the nation's economy to some degree. what keeps you up at night? >> i'm managing, i'm helping to manage our own household. the government is not that strong our system. we don't manage it. policies matter, but we don't manage it. stuart: but what keeps up at night? >> what keeps me up at night is probably some of the congressional battles that may be coming. i want very much to see the usmca deal go through. i would like to see some additional tax reform. would i like to see a lot of spending restraint. i think we can do business on

infrastructure. so there is a lot of uncertainties there. the economy, i think it is in good shape. i know the markets have been volatile. i don't think that is a big problem. 8% correction. let's see what happens in the policy discussions with our democratic friends. stuart: larry kudlow, always a pleasure. thank you very much, sir. appreciate it. >> okay. stuart: by the way, the dow is now down 200 points. we should bring that to your attention. i don't think anything that larry kudlow said or i said, but it's a volatile day. but we're down 200. this is pearl harbor day. president trump tweeting about it. this is it. we honor today those that perished 77 years ago at pearl harbor and all the veterans that served the years following that horrific attack. god bless america. we'll be back. s why i've got thr of 1-2-3 medicines with trelegy.

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♪ susan: anyone think it's a friday song though? stuart: this one, a friday song? susan: too deep. need something more bouncey. stuart: you didn't like this song, susan? susan: i didn't say that? remember everyone, these are volatile times. this is a volatile day, this is down 150 as we speak. big tech names all over the place. all of them are lower, facebook, amazon, alphabet, microsoft all on the downside. we had truly wild swings this week. a lot of people in our audience

want to know how on earth you invest in a volatile market like this one? jason rotman, lido isle advisors is with us. tell us, jason, almost all of our viewers, regular investors, longer term investors. how are they supposed to invest when you're getting whipsawed like this every day? >> that's right. it's a pleasure to be on once again, stuart. what i focus on, in as you said, volatile times like these, stock picking number one. but under that umbrella, i encourage everybody to do what i'm doing, look at undervalued companies that are growing earnings, going to be around for a while. such as, as i think there are a couple. alibaba is an incredible example. if they can do tens of billions of dollars in one day and i can buy them at 30s 40% discount

protheir highs, i am all in. stuart: i tell everyone that i did buy alibaba stock in the low 140s. i still own it. still hold it. i got to say that. you think this thing is going higher? >> i think you could say that safely, yes. i'm owner of alibaba. i don't plan on selling it for a long time. i plan on telling my kids i bought it in the low 150s. so you did beat me. we'll go well above all-time highs 12 to 18 months. this is incredible company at fire-sale price. stuart: i bought it after the china singles' day when they brought in 30 billion in one day. >> that's right. stuart: that is pretty good signal they're in business today, that is impressive. 30 billion in one day. >> i wholeheartedly agree. this is incredible company as more incredible price. stuart: i got one more. i don't own this one, i may after talking to you. newell rubbermaid.

i remember outfitting kitchens 50 years ago with those kind of things. you like it? >> exactly. they do billions of sales per year as well. this is another, kind of story where the stock has gotten beaten down to smithereens. i feel like if i would draw analogy to put it in context for people, i think newell is having the march 2009 moment. meaning now is the time to buy. sentiment is horrible. it has already been through the crisis period dropping over 50%. you're having icahn family buy tens of millions of dollars of this stock. other newell c-suite executives are buying. when you have insiders buying millions and millions of stock and it is down, that tells me something on the surface that earnings are going up again. stuart: this is a company our viewers know quite well. >> it's a major brand. stuart: has their product lineup

kept pace with modernity? >> mr. coffee is not starbucks. but they have numerous other brands. rebar made -- rubbermaid kept up the pace. they're culling the fat. they're making a leaner, meaner company. if we buy newell in the low 20s, i know you like this, stuart, 4% dividend. stuart: now you're talking, lad. you're tempting me there. >> pull the trigger. stuart: alibaba, newell rubbermaid he likes them both. jason, see you soon. >> thank you. stuart: now this, nancy pelosi says border wall funding off the table. by the way she meets along with chuck schumer meets with the president next week. roll tape. >> would you be willing to support some degree of wall funding if you got a permanent bonafide solution on daca? >> no. >> why not? >> two different subjects. most of us, speaking for myself consider the wall immoral,

expensive, and president said he promised it, he also promised mexico we would pay for it. even if they did it is immillion still. they're not going to pay for it. stuart: we need to bring the border council security president. nancy pelosi says a wore is immoral. would you like to respond to that? >> good morning, stuart. i want to give a shoutout to every border agent on the southern border. every american appreciates you're doing but they need tools, stuart. they need to augment some of that wall, no question about that stop looking at fourth century solution to a 21st century problem. we need technology on the border tells the wall what is approaching. to give the front line border agents the tools necessary to give then situational awareness. know how to respond, force multiplier effect. really we don't know what is approaching our borders knowing

some of the wall is many cases hundreds of yards on u.s. soil. we need better intelligence what is approaching our borders. stuart: i'm told the number of people coming across illegally this year is almost double the number that came across illegally last year. is that accurate? >> that's correct. i'll tell you, so the biggest issue are asylum-seekers. organized crime in central america actively advertising a free pass, 4 to $7,000 a head to deposit you on the front line, our borders. they are seeking border patrol for asylum. they get processed, released in the general population waiting for a court date that maybe two or three years down the road, which is less than 9% ever show up. so that's a problem. then they remain in the united states. so there is a loophole here, that needs to be shut down and like many people say. it will require congressional action to the immigration system, to be able to close these loopholes.

if not wall, technology, whatever it is, soon as they touch u.s. soil, they will continue coming over. stuart: what proportion of those people coming towards the border trying to get across the border what proportion of them spent 4 to $7,000 on guides and coyotes to get them across? >> stuart, everyone. this is so organized, no one crosses that border by mistake or by happenstance. they absolutely pay. if they don't pay, a family member pays back home. so they're extorted. there is human trafficking. they are raped, young women. so they put them on birth control before they start the journey. these parents are desperate but they also know what they're being faced with on this journey. these are serious issues, unless we close those loopholes with congressional action, it will continue coming in. they have found a loophole and there is no stopping them now. stuart: nelson, thank you very much for being with us. important information. we appreciate it sir. >> thank you very much, stuart. stuart: quickly look at the

market. we headed south big-time. we're down 269 points. the volatility is not over. susan: pick ups on the kudlow interview. the market is interpreting he says the data drives the federal reserve, not president trump's intentions or his comments, right? that may have some impact. it is 3% gdp growth. stuart: our interview with larry kudlow is picked up, a partial reason for this selloff because larry kudlow says the fed responds to data, not pressure from mr. trump and data shows some weakness. that is the underlying theory. >> yep. stuart: we're at 24,700. cdc, centers for disease control, says romaine lettuce still making people sick. tell me about that. >> you thought it was safe? not the case. nine more people became sick after eating romaine lettuce amid a e.coli outbreak according to the cdc. a total of 52 were sickened

across 15 states according to the cdc. highest number of cases reported in california, and new jersey. be careful stu. six in new hampshire. 19 people hospitalized. suffered from kid any failure. no one died. stuart: lettuce industry around the romaine lettuce, a tough challenge. now this, i said it earlier this hour, looks like the storm clouds are gathering in europe and the mess could become very evident this coming week. i will put that to our next guest in our next hour, i should say, steve hilton. but gm's steve, mary barra, on capitol hill. been there talking to lawmakers affected by her plans to shut plans and axe workers in ohio and michigan. i want to know, what she is offering those workers to make them whole, if she can do it. we're on it. ♪ .

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at your local mercedes-benz dealer. mercedes-benz. the best or nothing. ♪ ashley: president trump's top economic guy larry kudlow join us this morning. here is what he had to say about the u.s. economy. roll tape. >> seven quarters we're running i believe the number is 3.1% and it is 3.3% so far for 2018.

look, nobody said we could beat two. obama's was, you know, one to 2%. we're running now three plus. so that's a pretty big thing and i might add we're seeing capital goods were revised higher in the latest gdp report. i think that's solid. i want very much to spend my time making you happy and satisfying your deepest desires. i'm working on that as best i can. ♪

stuart: we're down 224 points. that is almost 1% down. this might be the reason for this sudden downturn. peter navarro, top trade guy with president trump told cnn we would walk away if china tray talks are not resolved in 90 days. very hard-line. down goes the markets. then there is this. fiat chrysler set to open the new plant, wait for it, where is the new plant? detroit. how does that grab you. the stock is down 1.3%. general motors, they're closing plants, they're cutting jobs. listen to what ceo mary barra said about this. roll tape. >> made the announcement to give them maximum opportunity for other opportunities within the company. we're working to make sure, for

our representative workforce we have a plan for every car and there are other services to provide to our salaried workers part of transition we're making. the industry is transforming. it is important for general motors ma make necessary but incredibly different changes to make in a leadership position. general motors is strong, provide manufacturing, provide leadership in the transportation industry as we move forward. stuart: difficult changes she says. joining us michigan congressman tim wahlberg. congressman, you were in the meeting with mary barra. did she make any pledge to keep those plants open or keep the workers working? >> stuart, good to be with you. she made no pledge specifically to keep those plants open, though she did say, she intended to make sure that all the workers that could be employed who had lost jobs would be employed somewhere in

general motors or some of the white-collar workers would find opportunities for training, retraining, assisting them finding jobs. that is all well and good but we have a challenge ahead of us. stuart: that is kind of a tough stance still because if you got a family, you're working for general motors, they say your job is gone, oh, you can have a job in alabama or kentucky, someplace, that is not really a strong offer, is it? >> that is unsatisfactory. i appreciate the fact, and you and i would agree, the best way for governments to deal with corporations and businesses to give them a lot of latitude to do what is necessary. i appreciate mary barra making forward thinking plans rather than getting caught behind the curb so they don't come back for a bailout but that was a company with a bailout. that says something about the need for them number one to communicate effectively. that was terrible communications that they did, time of year they did it, for those many, many employees impacted by this, and

secondly, when we see that there are still jobs and production going on in other countries, that aren't being shut down, and yet here in michigan itself, the birthplace of general motors, we see plants being shut down and more importantly lives being touched by this in a very difficult way. stuart: well look, you have a very strong position to take, but my question is, can you do anything about this? >> well, we'll see what happens. i think it is up to a big deal, what the president decides to do, forcing, giving encouragements, incentives, whatever. in turn as we tried to display in unified effort yesterday, republicans and democrats in our delegation we expect general motors looking for any way possible to make sure jobs stay here in the united states. that if any way possible, we keep people employed close to the place they're employed now. i'm blessed, stuart, with a plant in my district at one of the most forward designed plants

of all of gm's fleet. that makes the cars, trucks, suvs, crvs people want. but that plant also has capacity available for more people to be employed there. why not think about that so people at the very worst would have to move from the hamtramik area to eaton county, my district in the delta township? i hope mary, rest of the team heard our concern, but our expectation that american employees will come first. stuart: i would imagine the reputation, the image of general motors in michigan and ohio is at rock bottom. is it? >> i would think so especially when it was bailed out by the u.s. taxpayer. stuart: especially when there was enormous, general motors benefited enormously from the tax cuts, corporate tax rate cuts earlier this year. they were enormous beneficiaries. >> don't forget about the regulatory reforms we did as

well this past year. amazing stuff that was done to help corporations like general motors and many others, small businesses, et cetera, but gm is a special place. i hope they heard all of our words that if we want to work with them, we want them to succeed, but we want them to do the right thing for employees in the best way possible and make sure the jobs stay here or come back here in the united states for us yesterday and i'm delighted to hear fca they're bringing a plant back, opening a plant back in michigan for the jeep. nonetheless, general motors needs to do the same type of thing. stuart: that was quite a surprise, fiat chrysler going to detroit to build a jeep. that is something. congressman tim walberg, republican, from michigan. >> great to be with you. stuart: yes, sir. something we talk a lot on this program, the labor gap, jobs available but no one is qualified to take them. one company is doing something

attractive to attract workers, helping pay for the student debt. that is pa pretty good story we'll have for you after this. ♪ chevy also won a j.d. power dependability award for its light-duty truck the chevy silverado. oh, and since the chevy equinox and traverse also won chevy is the only brand to earn the j.d. power dependability award across cars, trucks and suvs-three years in a row. phew. third time's the charm...

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for about 30 minutes and then you take a nose dive. i mean, this is sustained energy that gets you through the rest of your day. - [narrator] you would have to eat over 90 fresh beets to get the functional benefits found in one canister of superbeets. - [narrator] call now to find out how you can get a 30-day supply of superbeets free with your first order. call the number on your screen now to take advantage of this limited-time offer. - what you've just put in your body is actually going to help you sitting at your desk for eight hours. it's this long-lasting battery life. - [narrator] for a free 30-day supply of superbeets with your first order, call the number on your screen. that's the number on your screen now. stuart: peter navarro told cnn that america would walk away from the trade talks if there's no deal in 90 days.

that did it. down goes the market. we're off 225 points as we speak. the trade deal factors into the volatility and you're seeing it right now. then there's the construction industry. they've got a hard time filling empty positions but our next guest has a plan to fill those jobs. he's offering his workers to repay their college loans. i like that. come on in, patrick murphy, vice president of coastal construction, the largest construction company in florida? >> in florida, yes. stuart: what are you doing? if i come to you, i want a job, you're going to pay my student loan? >> we are going to help you out with it. worker retention and quality workers are one of the most important challenges most company face. construction is no different. it's a very challenging marketplace right now. like many companies, we are trying to attract and retain millenials. millenials have a tremendous amount of student debt. on average, they say about $37,000 when they graduate

college. stuart: what are you offering them? >> once you work at our company for one year, you vest. then we are going to start to help you pay down your student debt. stuart: how much? >> starting off with $100 per month, then $125, then $150 after a couple years of working there. most student debt payments monthly are about $350. so we are going to pay about a third to 50% of our employees' student debt. that will end up amounting to millions of dollars in reduction and could be, you know, help them cut their debt in half. stuart: how many people have signed up or are going to sign up? >> we're expecting about 100 employees to sign up with our company. so we're pretty excited about that. stuart: what kind of jobs? what kind of skills are being filled with this offer? >> so there's really no limit. if you have student debt, we will pay it. it could be in a degree nothing to do with our company. if you have student debt, we want to help you out because we know it's such a burden. we know it's holding you back. stuart: you're desperate. you can't get people to fill

your jobs. you have orders up the wazoo in florida, i know you do. you haven't got the people to fill the jobs to build the buildings. >> we have great employees, we have a great team. we want to keep them. we are investing a tremendous amount of money in training and benefits program. stuart: are there people already in the program? >> yes. stuart: if i have a student loan outstanding and i'm already working for you, you will still help me out? >> exactly. you have been there seven years, you start at the $150 amount, the higher level. you don't have to put in more time. stuart: sounds good to me. >> hopefully your debt is paid off. stuart: patrick, thank you very much for joining us. we appreciate it. thank you, sir. now, for the first time literally in decades, america is a net exporter of oil. that means more crude going out than is coming in. it's something you're not going to hear about on the evening news, because the big win for president trump. my take on that, coming up. (toni vo) 'twas the night before christmas,

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edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do. stuart: well, for the first time in decades, america is a net exporter of oil. that means there's more crude going out than coming in. that means we are energy independent. i'll bet you didn't see that on the evening news. of course not. because it is a big win for president trump. if you've watched this program, you will know why this is happening. it's all about the new american inventive drilling technology, sometimes referred to as the fracking revolution. do not underestimate this achievement. even five years ago, it was thought to be an impossible dream. energy independence, forget about it. now it's real. and think what's about to come. on the gulf coast, nine terminals are planned which could accommodate supertankers.

there's only one that can do it now. they will be loading crude from that giant underground ocean of oil known as the permean basin in texas. by the way, the geological survey just reported there's much, much more oil there than previously thought and we can get at it with our new american technology. that's just texas. now think of the implications of this. we no longer depend on countries which hate us. the iranians no longer have us over a barrel. we can pressure russia. their economy is heavily dependent on oil. they're suffering. and we are clearly pressuring saudi arabia. make no mistake, it is american frackers who played a large part in driving oil down to the $50 a barrel range and gas way below $3 a gallon. i haven't even mentioned our gigantic and growing production of natural gas. i'll save that for another time. let's leave it at this. america rules the energy world and all americans benefit. thank you, frackers and thank

you, mr. president. the third hour of "varney" begins now. stuart: well, you heard my little rant there about energy independence. don't you love it? let's get some reaction from john lonski, managing director at moody's. you say what? >> that is a great story. that's so true. this brings attention to the importance of technology and government regulation to performance not only of the economy but also the geopolitics. the balance of power. stuart: but some people see very, very cheap oil as a bad thing for our stock market. i don't understand it. >> well, that's absolute nonsense. the aim of technological progress is to provide you with more output, higher quality output at lower cost. you want this to happen over time. it's not sensical to worry about oil becoming too cheap.

stuart: what about cheap gas? i thought it would give a huge shot in the arm to our fourth quarter but i see these new jobs numbers. in november we only got 155,000. what's with that? >> that's a big disappointment. maybe in part that's telling us we are running out of qualified workers. it wasn't that long ago, month or two ago, they told us we have far more job openings than the number of people unemployed. it's something to go ahead and consider. if we are running out of workers, that necessarily implies labor productivity will be going higher and that will be beneficial to the real wages of those working. it may be more of an incentive for others to -- stuart: i've got to say we had, what, 4% growth in the second quarter, 3% in the third quarter, 2.5% in the fourth quarter. only 155,000 new jobs. i don't like that down trend. >> i don't like it, either. i think the time has come to bring an end to fed rate hikes. do you know, i looked at the fed funds futures contract before i came on the show and fed funds

futures now assigns a higher probability to a fed funds rate that is less than 2.38% at year end 2019 than to a fed funds rate that is above 2.38%. stuart: what does that mean? >> that means at most we get one rate hike, according to the futures market, moving forward. we get it in december, perhaps no rate hike in 2019. that could give the economy a chance to regather some steam and thanks to technological progress in oil and whatnot, inflation should remain well contained. stuart: you are out on a limb here. i don't know any other economist or market watcher who is saying don't raise rates, we don't need any rate rise. >> this is what the fed funds futures market is telling me. this is what the market is telling me. i'm not making this up. i'm not delusional. it is telling you that there's a very limited upside for interest rates and the fomc was getting carried away when they were

predicting a 3.13% fed funds rate by the end of 2019. stuart: that's good news. let's see if you move the market. john lonski, thank you very much. >> my pleasure. stuart: let's get to the arrest of the huawei executive, who will be in court today. it's a bail hearing. in our last hour, larry kudlow commented on the huawei situation. roll tape. >> could be wrong here, time will tell, but we are in deep discussions with them. i'm sure, i'm not privy to the law enforcement action. we are certainly in deep discussions on the trade actions. i really don't think one cancels out the other. i will also say at least to my way of thinking, china -- the telecom company huawei, they violated the sanctions with iran, okay? they violated the sanctions. they had been warned and finally we had to prosecute that. stuart: so larry kudlow was also

saying that president trump and his team did not know about the arrest of the huawei executive when they were having that dinner with xi jinping. didn't have prior knowledge. in other words, we were not trying to provoke them with an overtly hard line and then confront them at the dinner. that was not what was happening. got that. i want to bring in capitalist pig guy. jonathan hoenig -- >> john bolton did know about that arrest. stuart: yes, but he said he had not informed the president or the president's trade team. the people at the dinner were not aware of it. you got that look on your face. >> well, there's confusion. there's confusion out there in the market about a lot of what's coming from the white house. i think that is some of what is influencing stock prices here today, stuart. trade is really -- flash back to monday long before president bush's funeral. stock market futures were

dramatically higher. the market was dramatically higher on hopes of a trade resolution. we are back here down in the dumps and i think we are still in a bear market. stuart: by the way, it was peter navarro who told another network today that if we don't get a deal with china in 90 days, america walks away from the talks. when he said that, the market headed south. now as you note, we are down 305 points. back to that volatility about who said what and when about the trade situation. let me move on, because you like utility stocks, because they pay dividends. in particular, what's this aqua america? what's that? >> yeah. it's not so much they pay dividends but they're strong. in markets like this, you have this any port in a storm, any safe haven. utilities, despite the fact a lot of interest rates have risen, not so much government rates as of yet, but utilities have been a strong asset class. aqua america is a water utility. those haven't done as well as some of the nuclear utilities and the more traditional but this is an asset class writ

large that's doing quite well. you're looking for a port in a storm, this might be it. stuart: okay. now, you have often said invest in agricultural commodities. our viewers don't do that. we don't buy commodity contracts. tell me that there are etfs, electronic traded funds easy to invest in for corn, wheat and soybeans. tell me, please. >> yes. i think this is a great idea right now. if you are looking for our asset classes, this is what i'm doing at capitalistpig.com, looking for asset classes that are doing well besides stocks. think back to the early 2000s. gold went up every year for a decade. stocks didn't. you could see the same thing with agricultural commodities right now. as you said, it sounds esoteric but corn, c-o-r-n, is an etf that tracks the spot price of corn. less expenses, do your due diligence, but investors now will be served by looking if you will a little bit off the radar screen towards commodities and asset classes that aren't

correlated with the rest of the market, agriculture is that. stuart: are you on to something because those three etfs you mentioned, wheat, corn, soy, are all up today in a very strongly down market. capitalist pig, we think you're all right. okay. >> see you next week. stuart: yes, you will. thanks. here's where we check individual different markets. first off, bitcoin all the way down to $3,300 per coin as we speak. but gold i believe is still going the other way as the market volatility rolls on. we are up seven bucks an ounce at $1251 for the price of one ounce of gold. other stories on our radar. in europe, riots over a gas tax increase in france, that was last weekend. they are gearing up for more tough stuff this weekend. anger in britain over the brexit vote which is now just a couple of days away. and a big budget fight in italy. europe in chaos. believe me. here at home, congress passed a bill to delay any kind of government shutdown and the

border wall fight. they delayed this for two weeks. it funds the government through december 23rd, that's it. then comes the fight, of course. eremember president trump will meet with senator schumer and nancy pelosi on tuesday of next week. pelosi has already said there will not be money for the border wall. the president isn't budging, either. despite the market anxiety over the trade war, the republican national committee says trump is still winning on trade. stay with us. so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all...

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stuart: talk about a really good p.r. move. fiat chrysler's going to open a new factory in detroit. workers at the plant are going to make a new jeep suv.

they are going to hire thousands of workers. there's no word yet on when it's going to open. chrysler's stock is down a little bit. ain't that a good move, though, as gm is closing things down? let's get to that chaos in europe. they're bracing for more riots in france this weekend. paris will be virtually shut down. the eiffel tower, closed. the louevre, home of the mona lisa, closed. now look at britain. looks like theresa may's brexit plan is going to fail. they could, could, crash out of the european union. as for italy, they've got a huge budget fight with the rest of their european compatriots. steve hilton is with us, former strategy director for prime minister david cameron. it looks to me like europe is unravelling. i know we have been through this before, but to me, the unravelling process is speeding up. what do you say? >> i think that's right. it's really coming to a head but i think fundamentally, for good

reasons, because what people are reacting to is bad policy that for many, many years, in some cases decades, has hurt working people, undermined their elected democracies and people are expressing that in different ways. if you take it one by one, in the uk, i know there's a conventional wisdom that it's a problem if theresa may's brexit deal gets voted down, which everyone expects it to be voted down. actually i think that's not correct. the fact is that her deal isn't really a deal, because what it actually does is postpone everything. it doesn't settle anything. it actually guarantees more uncertainty, which is terrible for business, and it's not even brexit, because under her deal, the european union still has sovereignty over key areas like particularly in relation to the supremacy of european law and other areas. so it's very important that it is voted down. stuart: okay. hold on a second. if it is voted down, and i agree with you, i think it will be, i think there will be a lot of

financial fallout over here. you will have political chaos in britain. we don't know what they will do next. we don't know who the next prime minister is because presumably it's not theresa may. we dmoon't know if they will ha a second referendum. that kind of uncertainty will surely affect us here. >> it is, but i think in the long term, you are going to have to go through that to get to the right result, which is the referendum result that people voted for two years ago actually being delivered, and in fact, one thing i have argued, i was actually over there arguing it just now, when people -- you used the term crashing out. there's a sense that if there isn't a deal, somehow that's bad news. i don't think that's right. i think that actually, if you make a clear decision to leave the european union as the voters called for, then spend time properly preparing, plus take action to counteract disruption. for example, to cut corporation tax, to cut regulations, to make the uk more attractive to

investors and business, then you can help overcome the disruption and make it a positive story. but there's no sign that you've got a leader in the uk ready to do any of that. that's the problem. stuart: okay. i've got to talk to you about google. as you know, they are preparing and planning a search engine just for china which would allow the chinese communist authorities to censor every person in china and go find dissidents. now, i think that's a terrible idea. i know you are closely connected to the googles and facebooks of silicon valley. what do you say? >> it's a complete outrage. i have actually called it economic treason, because we have got to understand that china is not just another player in the global economy. it is our enemy. it has a stated intention to topple the u.s. as the global superpower and impose its values on the world. this is a really serious issue. it's not just a question of doing deals here and there. what google is doing in this way

is actually helping to entrench the authoritarianism of our biggest enemy. it's got to be stopped. stuart: good. i like to hear you go straight at it, steve. you do it every time. good stuff, young man. thank you very much. see you sunday night, i think. >> good to see you. stuart: yes, sir. again, let's look at big tech, please. apple is now third in the race to become or to be the most valuable company in america. they are third behind microsoft, amazon and then it is apple. who would have thought? look at facebook. more than 90 mutual funds have completely sold their positions in that company and the stock is down $1.38. back to the big board. new low of the day. this is volatility. we are down 350 points, that's 1.4%. watch out, might change in ten minutes. if you're looking to move, chances are you are moving to this one state. not necessarily the one on the screen. it's attracting more new residents than any other. we will tell you which state we

are talking about. first, this famous scene from national lampoon's "christmas vacation." hold on. we may have found the real life clark griswald. this van was caught on a traffic camera hauling an absurdly large christmas tree on its roof. this is in britain. the police tweeted the image. they said hey, you drivers, consider the car's capability before you load up. the truth is, you get it all on "varney." we'll be right back. insurance that won't replace the full value of your new car? you'd be better off throwing

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stuart: president trump tweeting moments ago, here's number one. i am pleased to announce that heather nauert, spokeswoman for the united states department of state, will be nominated to serve as u.n. ambassador. i want to congratulate heather and thank ambassador nikki haley for her great service to our country. number two, i am pleased to announce that i will be nominating the honorable william p. barr for the position of attorney general of the united states. as the former a.g. for president

george bush and one of the most highly respected legal minds in the country he will be a great addition to our team. i look forward to having him join our very successful administration. no impact on the market from those tweets. before the break, we asked you to guess which state is attracting more new residents. the answer is florida. according to lending tree, that is the number one destination for home buyers moving across state lines. they say florida's low cost of living, high real estate values and weather are the main reasons. what about taxes? get with it. texas, number two. same story. >> no state income tax. stuart: what about the taxes? california. california is number three. what about the taxes, he asks. washington state and arizona round out the top five. now this. got a new survey that looks at how much money you need to earn to be considered rich. i think it depends on where you live, doesn't it? >> that is exactly right. the calculation is made at twice the median income.

if you have that or more, you are considered rich. we will show you cities here. anchorage, alaska is number one on the list, $164,542, there you go, is what it takes to feel rich. that's the top. we will go down to the bottom which is detroit. to feel rich in detroit you need to make $55,676. i have to say i have visited detroit recently. it is a good, fun city, great for entrepreneurs. they have a bunch of -- they have a beach installed downtown. you can play ping-pong, good stuff. new york, got to put that in there. little plug for the hometown. top ten, not surprisingly, $115,564. there you go. new york city, the big apple. charles schwab says $2.4 million, if you are in the united states, that's 30 times the mean of u.s. earners. stuart: $2.4 million. >> that's what charles schwab says. stuart: that's interesting. >> slightly different number.

detroit, you can really party. stuart: the dow is down 425 points. you can see it there on the screen. 424. next, we are joined by rnc spokesperson kayleigh mcinerney. even though the media says it couldn't be done, president trump is winning on trade. she makes her case in a moment. the markets, let's get to it, down 400, it's a selloff, 431 points. this is volatility. but our next guest says the market's overly pessimistic. he doesn't see any sign of recession. he will be joining us after this.

stuart: it's a loss of precisely 400 points and we have 28 of the dow 30 in the red. we're not quite at the low of the morning but we're pretty close. remember, this is a volatile market. i have no clue how we will close. however, our next guest says this market has just been far too pessimistic. he doesn't see any sign of recession on the horizon. he's back. mark chandler, chief market strategist, welcome back. good seeing you. see that screen? it says the dow is down 400 points. >> ugly, huh? stuart: why? >> i think we have had a lot of

bad news. we have got oil prices, trade. there's a lot of things weighing on sentiment. i don't think there's a recession coming. in fact, jpmorgan had a model this week that said they revised up the estimate of recession to 20%, one in five chance. today's employment number is relatively strong even though it missed expectations. stuart: give you an argument on that one. 155,000 jobs? >> i think you're right, people will be disappointed but really, in the business cycle, we have created more jobs this year than last year. i think this is just a little bit of disappointment but hourly earnings, 3.1%, still very solid. i still think the fed will have to raise rates later this month. stuart: let me come at you with this one. second quarter, 4% growth. third quarter, 3% growth. fourth quarter, we are told 2.5% growth. that's a down trend. you telling me don't worry? we are going towards no recession? >> don't worry about it quite yet. we have had a sugar buzz from the fiscal stimulus, tax cuts and spending and we peaked in q2. now's the coming back down to trend, the federal reserve, it's

like a noninflationary pace of growth over the long term, little below 2%. we are still above trend. that's what the federal reserve is focusing on. stuart: larry kudlow was on this program about an hour ago and i asked him what about next year, 2019. i said 3% growth? he said yes, 3% growth. >> he's a little optimistic. i'm not quite there. there is some late cycle data accumulating, 12 month moving average, auto sales, 12 month moving average peaked. we will slow down but i think slow enough for the federal reserve to pause around the middle of next year. stuart: we just touched fresh lows, down 420 just a moment ago. i guess that's trade and not recession fears. >> it's not clear which sector is getting hit the hardest, those most affected by trade. the domestic side, not so bad. stuart: it could also be the europeans will really mess things up this weekend and next. >> they have serious problems.

have you t you have the vote in the uk, they talked about postponing it but looks like it will be tuesday. you have minority government in spain that will have problems passing their budget. stuart: all that is separate. no recession. >> no recession in the u.s. next year. stuart: thank you very much. appreciate you being here. i have dramatic video out of france. just wait a minute, you will see the drama. police rounding up protesting high school students. what's this about? >> there's outrage about this. this is west of paris, students are upset across the country over educational reforms trying to be put in place by president macron. 700 students across france were arrested yesterday alone. if you stick with this video you will see kids with school backpacks lined up facing a wall, some being forced to kneel in the mud with their heads bowed and hands behind their heads. you don't see it. stuart: that ditch. >> see that? french police carrying riot shields and batons.

you can hear one french officer saying quote, now this is a class that knows how to behave. this is causing a lot of outrage. overreaction, some believe, by police to these protests from kids. stuart: you are going to europe tomorrow, i think. you are covering the vote. you will have a firsthand -- >> it's chaotic. it really is. we don't know how it will work out. neither does the uk government. it will be very interesting to follow that vote which we expect to be defeated on tuesday. maybe they will try to postpone it but i don't think they will. stuart: what's going on in europe could be a factor in our market today. down 370 as we speak. trade's not good, either. by the way, come on to the show now, someone who says president trump is winning on trade. rnc spokesperson kayleigh mcinenny joins us. you have a hard road to hoe on this one. tell me how president trump is winning on trade with china. i got the canada mexico thing. i got the europeans. china.

how come he's winning? what say you? >> well, peter navarro noted that when they went into that meeting it was a discussion between the president and the chinese president exclusively and the chinese president came in and for about 45 minutes, laid out how he wanted to move towards the united states on trade. he had a 142 point item list that he would reduce auto tariffs, we would have this 90-day period of negotiation and there was a deal there among others. it's a 90 day period, we are going in with eyes wide open. nevertheless, this is a very big thing that happened, this meeting with the chinese president. stuart: it would not be a win on china trade if, as peter navarro suggested today, if there's no deal after 90 days, we walk away. that's not winning. >> but i think that we're at this point, it is certainly winning when we put it in historical context. you had michael pillsburry on earlier in the week and he said

for 40 years, the united states has been at the raw end of the bargain with the chinese, but for the chinese now to come in and have this conversation, it's a conversation for four decades we haven't been able to have. put it in the context of history. we are winning with china, not to mention the eu deal, the usmca and so many others. stuart: i put it to you, at the end of the day if you want to get a deal with china, you have to have a deal that allows both sides, especially china's side, to save face. >> that's right. it will have to be a win for the chinese. he will have to be able to sell it to his domestic populace as well. they have to fundamentally restructure the way their economy works. all the intellectual property theft we're seeing, they have to restructure how they do things and become a good actor on the trade stage internationally. stuart: okay. we are holding our breath and that's a fact. kayleigh, thanks for joining us. appreciate it. >> thank you. stuart: dow is down 406 points. got it. there are some companies in

america which say they are really starting to feel the pain from these tariffs. deirdre, spell out which industries are feeling the most pain. >> soybeans have to be number one on the list. this is our biggest agra export, between $15 billion and $18 billion every year leaving the u.s. for the past five years on average. so there's also some other factors. brazil has been growing soybeans like crazy and they have a record crop this year so china actually can just hang out and buy soybeans from brazil and not us. i have looked at some stats, actually our exports of soybeans this year down 43% year on year, four-year low. that's really an area that's getting hurt. that's what china wanted, right. china picked those states precisely in part because the ones that produce are the once who voted for president trump. stuart: who else is suffering? >> look at the metals, anybody connected to aluminum, anybody connected to any of the metals, those are the ones really in the crossfire as well. we know the trump administration feels like they are working

steel and aluminum, lot of other businesses are saying perhaps otherwise and tariffs paid by u.s. importers has doubled since may. that's really hurting a lot of companies. now, what they are doing is going directly to foreign suppliers saying hey, let's make a deal, give me a price cut because i do want to keep buying from you but i can't do it with what's going on punitively on both sides. so some companies have been able to negotiate one-on-one but overall, anybody connected to metals or soybeans is hurting. stuart: got it. deirdre, thank you very much. dow is down 370. by the way, we have two stories on tesla for you. the stock is doing very well, i might add. number one, it's replaced its general counsel with a seasoned trial lawyer as they put it. number two, they started the construction process, i should say, for a second battery plant in china. this after tesla said the trade war hurt its foreign sales. look at that stock. it's up eight bucks now at $371.

teflon tesla. say it every day. check morgan stanley. the new york stock exchange is accused of letting it make after-hours trades. the stock is down a buck 20. boeing is backing out from a satellite project financed by china. the stock is down six bucks. it's also trade-sensitive. trade's got something to do with that stock decline. nancy pelosi says border wall funding is off the table. she says the wall is quote, immoral and that she will not accept a daca deal in exchange for wall funding. that's what she said. she said all of this ahead of her meeting with the president and senator schumer on tuesday of next week. the president is not budging. so what's the end game here? we will ask the question and give you an answer, too.

last hour we spoke with national economic council director larry kudlow about the jobs report. here's what he said about gdp growth. >> with more [ inaudible ] produced, the inflation rate is actually disinflating. that's about 1.5%. doesn't get much better than that. that's why you see all these fed

people now saying publicly that we're at neutral and they're not going to have to do perhaps anything after the next meeting later this month and maybe they won't do anything at that meeting. so it's a pretty darned good combination.

stuart: ah, the golden state. california was the first state to require all new homes to be built with rooftop solar panels. new rules take effect in 2020. officials say the move will save residents thousands of dollars in the long run on their monthly energy bills but they do admit homeowners will have to pay more up front. lucky people. president trump will meet with senator schumer and nancy pelosi on tuesday of next week. they are going to talk about funding the government. pelosi says there will not be any money for the border wall, which she says is immoral. joining us, matt schlap, chair of the american conservative union. matt, immoral. have at it. >> yeah. i guess it's immoral to follow our immigration laws. i think that's one of the things democrats are trying to sell to the american people. you know, the good news is that i know nancy pelosi had a big

night on election night, and the democrats are taking over in the house even though her position within that -- within the house is still a bit uncertain. the good news is that she really doesn't have a role to play as we are in the lame duck. remember, the republicans will have a big majority in the house until the new congress is sworn in, in combination with a majority in the senate so the key thing is can we pick up a few democratic senators in the senate to vote for robust wall funding. that's what it will come down to. stuart: do you think any democrat in the senate is going to say yeah, i'll give you the money for the wall? i don't think that's going to happen. >> you know, i think it's going to be hard to get all the funding we all might like, but by the same token, with all this caravans and the one that's going to come after the next and the next one and the next one, i think the american people are beginning to realize that donald trump's approach to immigration has really nothing -- its main

focus is simply making sure we have an orderly process at our southern border. the politics on this issue really do benefit the republicans and donald trump. stuart: now, nancy pelosi i believe she says that she's okay with $1.6 billion for fencing. not a wall, fencing. $1.6 billion. you think president trump will accept that? >> barack obama and hillary clinton voted for fencing. it's why people hate politicians so much. they are playing word games. why do you need a fence? you need a fence because we have chaos at our southern border. with donald trump saying if we have chaos, why build a fence when you can build a wall. it's not that much additional money to make sure that people only come into this country legally. they are playing a game and at the end of the day, i think president trump should stick to his guns on the wall and i think he should try to get as much money as he can get for it. if he has to shut down the government for a period of time, i'm okay with that. stuart: you chair the american conservative union.

are conservatives united in demanding and wanting a wall? >> they were divided probably a couple years ago on this proposition because they didn't understand how bad the situation was at the southern border. i think as they have watched the images, i think certainly conservatives and republicans are very unified on the concept that we need to build a wall, we need to have a secure southern border and the president always says that wall will have a door but you will only be able to come through the door if you come legally. stuart: i say shut it down unless you get the money for the wall. >> ronald reagan has shut down the southern border before. as you know, sometimes you have to shut down the government in terms of funding in order to get your priorities done. stuart: matt, thank you for being with us. appreciate it always. thank you. check that market because we have come back a bit. literally five minutes ago, we were down 400. now we are down 314. our next guest just made a deal with walmart to fight back and try to take some market

share from amazon using, guess what, block chain technology. we explain in a moment. first i want to show you this. a handwritten letter by albert einstein sold for nearly $3 million at auction in new york. einstein called the so-called god letter, 1954. in it, he takes issue with the belief in god. it is seen as a key statement in the debate between science and religion. take note, ashley. ashley: i was going to say the same to you. stuart: we'll be right back. only half the story? at t. rowe price our experts go beyond the numbers to examine investment opportunities firsthand. like e-commerce spurring cardboard demand.

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looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ stuart: our next guest is a founder and ceo of a technology company which focuses on block chain. the company is now using block chain to help walmart take on amazon. i want to know how this works. joining us is this lady, susan, welcome back. >> thanks for having me. pleasure to be here. stuart: spell this out, very simple. our viewers are pretty much like me, not that big on technology. how is walmart using block

chain, and your company using block chain to help? >> walmart is using block chain in different capacities, for inventory management systems, tracking many things. however -- stuart: wait, wait, wait, wait. they're going to track how much inventory they've got. paper towels, for example. >> yes. stuart: how does block chain track paper towels? >> so there are many parties involved when we are talking about inventory management, from point a to b to c to d. if you want to use this using excel sheets or traditional inventory management system, it's not efficient, it's not cheap, because every movement needs to be tracked and to be recorded. so block chain is helping to make everything automatic and very efficient and fast without back office services that cost

retailers. stuart: it's so simplistic, i think of inventory management as all about bar codes. >> it is. stuart: has that got anything to do with block chain? >> there are bar codes, there are, as i said, many parties involved, many partners involved, so you really need to track all of these systems together, and block chain makes it fast and very quick, very cheap. stuart: you are the ceo of mavatar and you are working with walmart. you sold them a product, you sold them your technology? >> no, in fact we are helping them to partner with traditional media companies and actually power their products with the power of content, which is helping two industries, two transitional industries that they are both affecting -- affected today. they are bringing content and walmart and other brick and mortars bringing products and we are creating amazon-like marketplaces fueled by the

content of the media. so we're licensing our software to media companies to lend content to promote the product sales and we're tracking through block chain everyone who is influencing those product sales. i will give you a very nice example. stuart: make me understand. go ahead. >> remember the j-lo dress in grammys 2000? it broke the internet. the ceo of google said that that search inquiry made us think about creating image search for google, right? but no one, including j-lo, cbs, grammys, and the designer even, versace, didn't gain a penny out of that. today if you go and search that keyword in google, you see still google sells advertisement for the counterfeit and similar dresses online. stuart: what's block chain got to do with that? >> block chain is tracking that influence and our technology to

every one of those influencers and use the value they create and the commission they got from versace between all of them forever. forever. stuart: i think i got it. ashley: think you got it? >> guess what? cbs and disney and all of these guys are promoting millions of products every year. you guys don't have to even use push advertisement. stuart: okay, okay. you got your foot in the door. susan, thank you very much. >> thank you. appreciate it. stuart: all right. i think we better take a look at the stuart: the dow is down 415 points. that is the chart of the week. don't look too great now, does it? now this, forbes releasing its list of highest earning musicians this year. take a guess who came out on top. not going to tell you now, but i'm not sure i will know who it is. we're back in a moment.

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♪ stuart: i think i know that. i know it is u2 and the song is vertigo. because u2 earned more money than any musician, musical group. forbes says made $118 million, most of it from touring. coldplay, 115 million. ed sheeran, number three, 100 million. katy perry rounds out the top five. >> we're in the wrong business.

>> ed sheeran everybody said he couldn't have the career because he didn't look like a pop star. stuart: even i know that. the dow is down 400. david asman in for neil cavuto. >> stuart you are in the right business because you're in the best in the business. thank you very much david: welcome to "cavuto: coast to coast." i'm david asman for neil cavuto. hiring is slowing and matching last month's 3.1% pace. blake burman at the white house. reporter: talking about peter navarro making comments on cnn which he essentially said, if there is notra