>> 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 not a trade deal between the u.s. and china, with

next 90-day window, tear levels would escalate. go back as they should have been. apparently moved the market. to be honest i'm not entirely sure why that is newsworthy? that has been the stance of this administration for days into weeks, into months now, if there wasn't a trade deal, then tariffs would continue. administration illuminating that. that played on the market. the other set of numbers, a jobs numbers. it was a miss relates to the top line number. 155,000 jobs created in november. however the white house is continuing to build up the argument today this is an economy that is continuing on the right path. one chart that the economic team is pointing to is this one right here in which they actually look back at october, in which they say that 73 1/2% of the people hired in october were folks who were out of the labor force that ended up making their way back into the labor force. they say that indeed is a good

sign. as far as november goes, the administration is trying to paint a picture that this is an economy that continues to head in the right direction. here was larry kudlow talking to stuart varney just a little while ago. >> there is a good number. we had 250,000 last month. which beat everybody's expectations. and we're running, let's see, 206,000 new jobs per month in november in 2018. that is a very big number history. wages are rising. unemployment rate almost fell. >> reaction from the democrats, tom perez read out this statement with lower than expected job growth, more proposed tax cuts on wealthy, never ending assault on american's access to health care, donald trump and republicans kicked working families to the curb. that's why millions of voters to

elect democrats up and down the ballot. that is reaction from democrats today. by the way, david, the actual unemployment number for last month, november, was 3.671%. you heard, if you watched larry kudlow's interview with stuart, he made the argument we're getting close to 3.6%. that i am told is the reason why they are making that case because it was 3.671. fractions away from 3.6. in any event the official number staying at 3.7. david. david: really under 3.7. it was still under expectations that is one reason the markets are down right now. good to see you, blake. thank you. investors are antsy that is for sure fearing the worse as stocks are on pace to end in the red. is the economy showing signs of a major slow down? hadley heath manning and fox news contributor gary kaltbaum. hadley, let's talk first about the job figures.

what are you thoughts? >> it is hard for the a student to get the award for most improved when you're already moving strong. that is what our economy is doing, occasionally we'll miss expectations. we want to miss the forest for the trees there. there is 49-year low in unemployment. a lotcelebrate. many more families have family member working today, because of gains, mostly due to the tax cuts and jobs act and other deregulatory efforts for the administration. occasionally we'll have numbers that aren't so great but overall americans continue to be much better off now than they were this time a year ago. david: gary, i think what the market is telling us right now, it is in a bearish mood. it is as simple as that when you have mixed messages coming in the economy, depending which way the the way the market feels that is the way it is going to go. you could have mixed messages a year ago, and market was more bullish you could have update today. >> that is correct. it is not the news but how

markets react to the news. let me say this, i'm 100% certain the economy topped, we're heading south. doesn't mean we have a recession but we're going lower. just last few weeks, estimates come down from 3ers to 2.4%. i expect the coming quarters to be in the ones. the big story is europe. you have germany. the engine of europe contracting last quarter even though the ecb is printing money with negative rates. the question what ammo will they have left? the same goes for japan. we're not immune what goes around the globe. markets are seeing that. if the markets break recent lows, we hit them three times, we'll talk about real bear market for major indices even though the average stock is already there. david: hadley. one reason why we got "the wall street journal" report yesterday that really turned the markets around. they still ended negative but they gained 700 points on news from the "wall street journal" that the fed is rethinking its

rate structure and probably won't be raising rates as much because they are worried about what gary is talking about. >> we'll see what that does to the housing market one area of concern recently. talking heads and pundits from either side trying to paint a picture of market. market will change day-to-day. will respond to news headlines. it will respond to news about potential trade deals. when it comes to families looking at their pocketbooks and their bottom lines sitting around the kitchen table, many more families today say they have a paycheck, they have a bigger paycheck, they can spend money on christmas gifts, is save money for future. david: that is wonderful for the average american family but don't you think the markets are telling us something about the overall economy? >> oh, certainly. i agree to a certain extent with gary. like i said hard for an a student to get the most improved award when the economy tops out.

you can't run an engine too hot. we certainly need to be prepared for future. for families to save and invest. many investments are the in stock market ultimately. everyday working americans and their loved ones are impacted by the stock market in more ways than maybe they realize. david: gary one of the delights of my day, every morning i get one of your little notes what the market is doing, what you think it will do. you take on the fed chair, mr. powell, say that he is really acting a lot like one of his predecessors, ben bernanke. how so? >> well under bernanke's tenure every time the market was went down he would lower rates or talk easier money. and i was hoping with this gentleman in in that would be a little bit different. he saw the markets getting hit. he came out with the noise last week, instead of raising a rate as few times in 2019 we're closer to neutral. market rallies up.

we get hit with 1500 points two days. what happens yesterday? they put this thing out to the "wall street journal" maybe we'll stop this thing all together. i just don't want a central bank to be watching markets. they should be dealing with the economy. david: but it is very rare. forgive me for interrupting, very rare for a fed chair to do that? >> i know. david: we all think of a couple of examples where a couple of fed chairs stood up to what the market was doing. not many do. they all cave. >> think about this one thing? for eight years interest rates were 0%. that means savers were screwed out of maybe a trillion or two dollars. that to me is a sin with manipulating rates. that is my opinion. i can promise you a ton of people disagree with me. >> gary's right. david: huawei's ceo is due in court 1:00 p.m. eastern time. this is big news. what effect do you think this

will have u.s.-china trade talks? >> i was thinking two things. number one, doesn't trade have trust involved all of sudden we have this happen. i'm not exxoner rating china. we find out they may have been involved with the marriott hack. maybe she is guilty. how do you get a trade deal canada arrest the ceo of pretty much the major technology company in china when you're negotiating on technology companies? my second thought is, what if china reciprocates and retaliates a better word, arrests one of our american technology people in china for no reason at all? these are the things that i'm worried about here. certainly doesn't help. i was listening to navarro this morning. i don't know what the hell is coming out of his mouth. david: that is whole another issue. keeping it on huawei, we had to do something. if they're breaking the law as well as the general rules of the world trade organization that they signed on to we had to do

something. the question really is why now? couldn't they have waited a little bit? >> well i think it is never too late, never the wrong moment to do the right thing. the story is just one headline among many that represents a trend and attention. of course we want to have good trade relations mutually beneficial between china and u.s. when china continues to be a bad actor. when chinese companies continue to break the rules. we can't turn a blind eye to that. i'm glad the administration looking for balance. they want a good trade relationship not at expense of american interests and some cases american lives. david: hadley, gary, thank you for beinger on. charlie gasparino has breaking news that could be bad news for big tech. charlie. >> if you look at stock market, you look at facebook, google, amazon, apple, coming under pressure and likely to come under pressure once the democrats take control of the house. what sources tell fox business network, democrats are launching

hearings, privacy probes into issues involving these four companies, facebook, google, amazon, apple. the point people, point committees on this, once democrats take over, from what we hear, as of now, it could change, once they get it all settled but we hear the house judiciary committee and house energy and commerce committee are likely to be the focal points. there are two people that i think amazon, apple, google and facebook need to get acquainted with. they are democratic congressman. what guy, david ciciline. point man on judiciary side, and a guy named michael doyle from pennsylvania on the commerce side. those people we hear from lobbiest sources talking to democrats on the hill as they get ready to take power and those are the companies in the cross-hairs. i will tell you this, david,

lobbyists i speak to who deal with these congress people every day say there is a degree of bipartisan support here cracking down on privacy issues regarding these companies. why is privacy issues such a big deal? obviously americans are scared, facebook, for example, not saying they do it, may misuse customer data, sell it to god knows who else, profit from it that is an issue. why do investors care about that, well these companies, particularly google, facebook, amazon cannot resell or, if there are controls, deeper controls, more regulation on how they use customer data, guess what, that takes a huge chunk out of their earnings. david: sure does. >> that is why the companies are on guard. i'm telling you david, the train is coming down the track once the democrats take over. they have bull's-eyes out for these guys. david: interesting thing, charlie, there may be a realignment going on politically with silicon valley.

they relied on democrats. paid a lot of money to democrats. >> absolutely right. david: now seems the democrats are turning against them. >> what happened was, the base of democrat party just like the base of the republican party has changed. the republican party was all for free trade. the base is skeptical about free trade. you hear peter navarro say about free trade and democratic party are worried about big brother. they epitomize big brother in different ways. apple doesn't play the same game -- david: tim cook from apple wint after his buddies in silicon valley. many people thought it was a low blow on privacy issues over in europe, suggesting in fact that we should import the same rules, regs which are much tougher than we have here. >> why do you that? you have apple as i do, and i'm sure you do, it's a different system, a closed system. do they sell data third party? based on my knowledge, not to

the extent. they do track a lot of customer data. so they're kind of being brought into this as well. so, again, we have calls out. i put calls into everyone ever those tech companies. they have not gotten back to us. if they do i will update it in the 3:00 hour with liz claman. we put calls into sissel lien's office and doyle and ranking dems on judiciary and commerce but have not heard back. this is story to watch. particularly an investor, at least bad publicity is coming down the pike for these companies. david: very quickly, charlie, what does your gut tell you? are we going to end up with the same kind of laws they have over there concerning privacy right here? >> you know i will say, people -- this is a bipartisan issue in some respects. republicans in the house, where a lot of investigations start. the house is like a factory for investigations. the republicans are generally more free market, so they laid

off. but republican-based vote remembers worried about this as well. there is a chance something gains traction here, if it does, like i said, we're hearing this as rumblings. i can't guarranty there will be a hearing come february 1 when the democrats take control, but they are leaning that way, they are talking about it. if there are hearings the stocks will move. be prepared as an investor. david: i love it when you go down to d.c., you get good stuff. >> it is great. david: charlie, thank you. oil rise as russia and saudi agree on oil out put. look for more of the fallout on "bulls & bears," my show at 5:00 p.m. eastern. we'll see you there. ♪ alerts -- wouldn't you like one from the market

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a boost. you know what? we have those other outlying factors nobody can really make judgment in a cylinder. we have to worry about what the economies are doing, what the stock markets are doing. oil would have been a harbinger before, when oil went below 50 buck as bear, everyone got their underwear in bunch. recession around the corner, but we still see the stock market tanking. what is oil telling us now though? at the end of the day here is the deal. we have lower oil prices. we are net exporter talked about off camera. these will be great things for u.s. economy, news flash by the way, little off-top i can, the u.s. economy is doing okay. everybody needs to take a step back, relax a little bit. yes we have volatility because we're normalizing rates but this is okay. normal oil prices are at least around this level. there is no other way to put money in the consumer pocket faster than lower gas prices. they do it every week. david: means christmas sales

will go up higher than they are already expected to go up. talk about the net exporter aspect of the u.s. economy. the fact we are now a net exporter, means we have tremendous power not only to affect how much oil at home, but also what happens overseas. are we more powerful for oil prices overseas than opec is? >> well, maybe not more powerful but just as powerful. that is that triumvirate. we have to worry about putin. we have to worry about opec. we have to worry about the u.s. this is the deal. here is what i like about commodities. i do a lot of stocks, what i like about commodities, farmers, oil men here in the states, think about it, when we put the responsibility on our own backs of our own people, what do they do? they produce and they're really good at it. they're really efficient. david: yes. >> we made the idea we'll not be energy independent. we would be energy dominant. guess what? we have done it 2 1/2 years of having an idea. i think that is fantastic. another great sign how well the

u.s. economy is doing. david: it is incredible. that is a great point to bring up. once we get the government out of the way, once we get horrible regulations that don't do anybody any good but slow the economy, once those are swept out of the way, we still have a lot of them. you think how quickly we can develop not only a product but a whole industry and energy is an example of that. >> put it back in the hands of people that matter. you could make a argument for lot of other things, i will throw this in there again. the fed, stop talking. stop giving us your plan because it is always wrong. put it to the markets where interest rates should be and traders and investors. when they get involved start talking the market, look at the mess we have on our hands right now, they sided to open up their mouths in october. david: you talked about farming. are you still a cattle farmer even though you're in london? >> we have a farm back in the states, border illinois. don't have any cattle. by soybeans and corn. i talk to those people.

in london it is hard. mostly stocks. david: you are an optimistic guy, you focus on the positive, since you produce soybeans what is happening to the soybeans as tariffs kick in from china? >> farmers this year, with two payments got from the government, that made a difference. it is okay. he bought himself some time. with 90-day tariff moratorium. he bought himself some time. there will have to be a deal done. he tweeted again today, whether you want to believe it or not things are going well. i feel something will get done. what you do i think will happen with the market when we don't have as many interest rate hikes and fed not talking as much, deal done with china, take a guess? david: scott shellady, farmer, trader, eternal optimist, great patriot we love having you on. thank you, scott for being here. we appreciate it. the fed considers going slow on rates, before trump pressure.

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>> i don't think the fed is responding to the pressure. at least very senior people at the fed, 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, felt they were moving rates too high, too fast. david: presidential economic advisor larry kudlow saying the fed's new wait and see approach is not from pressure from president trump. jpmorgan chase economist, anthony chen. what do you think, anthony, is powell's change in pathway here, does it have something to do with pressure he was getting from the white house? >> not at all. i think the federal reserve over time has shown to be pretty independent of the executive

branch, my suspicion when you look at economic statistics they are slowing down. growth in the second quarter was 4.2%. 3 1/2 in the third quarter. i think fourth quarter quarter will be below 3%. so it is slowing down. more importantly if you look at a a composite indicators, they're falling down. they're not at recession levels. but they're clearly easing. the federal reserve made a comment, slowing down, they will look around, perhaps take "the deep end" breath before going. david: they have access to a lot of information most of us don't have access to. they probably foresaw the jobs figure being a disappointment. they have fed governor brainard saying now, just crossing the wires as i speak, that the gradual rate hike path will increasingly depend on evolving u.s. outlook. that kind of follows powell's line that we may take a second

look about raising rates. >> the way i interpret that, all they said, rich clarida, they will move towards data dependent mode determining policy. by the way that is the correct way to do it. if the economy is showing signs of wobbling or slowing down, and by the way, i think that by 2020 the u.s. economy could very well enter into recession, you want to be very careful because not doing enough, obviously can lead to higher inflation. but doing too much can sort of exacerbate the path toward as recession. all they're saying is, if the economy slows down we will slow down the pace of fed tightening, by the way what everybody would like them to do, nothing with political pressure. david: do they look at stock market going down do they take that in advisement one of the

measures they should use in terms of going faster or slower of raying rates? >> keep in mind the federal reserve has two demands price and employment. they want to stablize. they look at financial conditions. they clearly said that. the financial conditions are determined by value currency, equity markets, interest rates. there is a lot of things out there. not so much they are targeting the stock market but to the extent equity market, interest rates, value of currency has an impact on the economy they can't ignore it. they are simply taking all those things into account to determine policy. that is different from saying they are targeting a equity market. they're watching one of the inputs that goes into the formulation of monetary policy. david: of course you're right, they do have two mandates. they have the price stability mandate which used to be their only one. they had another mandate, a growth mandate put in there back in the 1970s, i believe it was.

sometimes they conflict, don't they? sometimes if they honor one mandate to keep the value of the dollar steady they violate the growth mandate. so it doesn't always mix well. >> well, remember that charles goodhart hold us when you have a goal you can't really use monetary policy to satisfy too many goals out there so it's a delicate balancing act for the federal reserve. if you look at core personal consumption deflator excluding food and energy, we're below the 2% target. the latest numbers showing inflation is rising 1.8% year-over-year. of course the target is 2%. the prior month, the month before that was 1.9%. so we're clearly below the inflation target of the fed. so right now they don't really have to worry. they have to worry about future inflation but the last thing i will say on that, remember monetary hits the economy with a

lag so what they do today will influence the economy a year-and-a-half ago. so it is also incorrect to say, because inflation is low today that they don't have to do anything because they're trying to impact the economy year-and-a-half from now. david: anthony, i'm guessing what happened yesterday where we had a 780-point loss at one point, then a "wall street journal" article came out saying that the fed might go easier on interest rates and that practically turned around 100%. we did end the day down, but only in double digits, do you think the fed always trumps other issues whether they're trade or china or whatever? >> i think all these issues are important. there is uncertainty with regard to trade. there is uncertainty with regard to monetary policy of course the instability that we've seen in the equity market is reflective of all of that uncertainty. but to the extent all of sudden we start to give clarity on trade, get more clarity on monetary policy the equity market will calm down. the fundamentals will be

represented. keep in mind this year, s&p 500 earnings will rise by more than 20%. and that the economy is growing above its potential growth rate. david: they say don't bury the lead, i think that is the lead, strength of this economy. chief economist for jpmorgan chase, anthony chen. thank you for being here. appreciate it. >> glad to be here. david: apple dropping to third place in the fight for top valuation for tech stocks but don't count the tech giant out yet. why someone here says apple's best days are not behind it. hear what he has to say coming up.

david: stocks are still selling off. two in the green, exxon and chevron. big tech down more percentagewise, 2% on downside.

gerri willis at nyse. >> david, that's right, nasdaq down 2.2% here. this is a trend. there are a couple specific headlines to some stocks driving these trends. morgan stanley cuts price target for apple at 236. they're lowering their fiscal year 2019 phone unit sales outlook. asian customers will be holding on to phones longer. another analyst from rosenblatt cutting the price target for apple as well. and saying he expects a lot of wall street analysts to cut earnings estimates. it is just not apple in the cross-hairs. facebook also diving as analyst report says, advertisers are asking serious questions about the effectiveness of facebook advertising. they say, it might not hurt sales this year but possibly next year. i've got to tell you though when i talk to traders on the floor of the exchange and investors as well here. what they're saying it is not necessarily the individual company guidance from analysts that is driving selloffs, but

worries about china and china trade, still plaguing this market, bringing down the major averages with the dow down 450 points. down 1.8%. s&p 500 down 1.8% or 50 points. we'll continue to watch this one. anything can happen on friday in the last couple hours. david: thank you, gerri. microsoft is now in the top spot. tech analyst john meyer, if apple's best days are behind it. john, first of all, morgan stanley came out with a report that the iphone sales are slipping. even though apple is not reporting unit sales, how does morgan stanley get their hands on these? >> so, what is interesting about morgan stanley's data is that they are going and they're going after the more smaller companies that apple actually uses as suppliers. so one of the biggest pieces of

news right now in the last 24 hours, apple's main source for the camera in the iphone is reporting upwards of a 30% expectation in decline of revenue. and so the only reason that would be the case is essentially due to apple pretty drastically decreasing what they expect to be ordering from them for iphone cameras. david: i see. no question, microsoft is the top dog in terms of market cap, valuation. amazon vying for second place. i wonder if indicates about anything at microsoft being better managed than apple? >> what is interesting about microsoft, apple, majority of revenue coming from software, a lot is driven by ai, something where apple struggled immensely

with. you hear horror stories how bad this many later siri is compared to other competitors that google, let's say, amazon, alexa has, that is a smaller example of what i think a larger picture of apple remaining to lag behind in ai, where amazon is launching cashierless stores, entire store, you don't interact with a person. that is all driven by artificial intelligence and advanced software that actually is able to recognize what humans are doing at a very, very advanced level. but where apple i think can be saved in terms of their growth, it is not going to happen in the short term. david: right. >> apple will still lose not -- in the short term, i believe. where they can be saved in the longer term, 20 or 2021, ultimately it is about the next major computer and what is next after the smartphone?

i'm a strong believer of for apple that is entering the augmented reality space where we will actually be seeing glasses that we put on that have a, step miles beyond where google glass ever was? i think that apple will see the longer term growth but not for another few years. scary enough to see people walking down the street, staring at iphones in their hand, but let alone glasses with augmented reality. that scares of heck out of me. why do you think apple could be a front-runner there, where others are clearly, i'm sure, amazon and others are looking at it, right? >> sure. so i have the privilege of being one of the first thousand or so developers for the iphone, when it came out in 2008, with the app store. and the reason why apple had seen so much of this growth over

the last 10 years is what they have done to simple app experience and hardware that people actually want to wear, hence the apple watch. that is apple's strengths, ease of use and elegant hardware. i think they're the best company in the early 2020s, to put those strengths to, to really their benefit. and, what part of the larger conversation in the sort of silicon valley area right now is certainly long term, definitely around the idea, vr and ar are the next paradigms. there are times in the next year we'll be barely using our smartphones because we'll do most of the work through this technology. david: is apple getting distracted by this focus on the future and not looking carefully

enough what is happening with the iphones? is there a danger of that? >> i think there is. you know, apple has very close-knit distinct teams. most of these teams do not communicate with each other. the team that works on the iphone has really no idea what new developments are being worked on in apple. what is interesting, when you look at the executive level, you look at folks like tim cook, craig federick who leads their software, when they are likely talking about in their weekly executive meetings, how do we minimize the damage of essentially being at the peak of our growth right now. with the current offerings. and obviously their main offering is the iphone, given how much of a share of their revenue comes from the iphone. but what i, they have to be talking about, is what comes after the iphone? because at this point, we've seen really the peak of that

revenue growth and so there has to be high profit margin as well so you're not going to get that with something like the apple watch. it will have to be something that everybody wants. david: all right. augmented reality. >> something elegant everybody wants. i really think that is going to end up being some sort of wearable glasses of some sort in the next five years max. david: the wave of the future. >> otherwise apple will continue to see declines, john, thank you for being here. fascinating stuff. >> thank you. david: paris closing tourist spots this weekend as more violent protests are expected. why macron, the president of the country, giving in on the gas tax hike is not easing unrest, not at all. more after this. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do.

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david: major parisian tourist spots like the eiffel tower in anticipation of more riots in france. kristina partsinevelos, more precautions taken even though the gas tax hike was put off. reporter: it was put off. they have a new demands around the cost of living, demand of living, these are the yellow

vests protesting past few weeks. there has been hundreds of arrests, even deaths associated with the arrest. violence has erupted. they are continuing their protest. taken to facebook to organize. paris will have 8,000 armed guards. there will be 89,000 total in the entire country. there will be armed vehicles entering paris for the first time in 15 years. what shop owners are doing right now, they are boarding up in the area. some are putting up wooden planks. almost as if preparing for a hurricane. you have, like you mentioned the eiffel tower closing. several museums the champs-elysees and the louvre. who knows what will happen sunday. she said in the surrounding area you can expect a lot to be closed. protesters are asking for new demands. not just a fuel tax hike. they want to see an increase in minimum wage.

they want parliament to be dissolved. some are asking for macron, the president of france to resign. all walks of life. you have students that are protesting. the video we'll show you now are students in a town, it's a suburb in paris. an area there, and you can see the students are kneeling on their knees at the moment with their hands on their head. 140 arrests were in the paris suburb. this was earlier today. students are protesting regarding exams. they want change of procedures to exams. they want to protest stricter university entrance procedures. this is the video. it is causing quite a stir across media in france. paris, one paris communist counselor saying it is frightening. it is humiliating what these students have to go through at the moment. the real problem with a lot of these protesters, a group called

the breakers. they're extremists. they are anti-macron. they are looting and damaging the area. despite all the violence, 70% of the population still support the protesters. david: kristina, thank you very much. this is maybe why the french are taking to the streets. new data shows france has highest taxes of any developed country. the center for freedom and prosperity, dan mitchell. is this the real fuel for protests, the fact they have the highest taxes in europe? >> i think it was the trigger that started the protest. macron's proposed big increase in the gas tax. no question the high tax burden led to economic stagnation, that news feeds and fuels sense hopelessness among the french people. this is not a libertarian protest movement. you heard in the report they want higher minimum wages. they want no standards on

university entrance. it is rage on the part of a french populace, want all goodies from the government but doesn't want to pay for them. the bigger picture, europe, france and europe including is becoming ungovernable because people think there is some magic money true. david: i would argue with a little bit. i think you're half right. i think the part you're wrong about. there is a libertarian strain to it. the fact it is a vote against centralization of all power and unresponsiveness to the needs of voters. the voters have needs. whether that they don't want to pay so much for gasoline. they pay after all, six or seven bucks a gallon over there because of all the taxes. they don't want to do that. the government hasn't been listening. you also see that with regard to immigration issues, whether it is france or germany or other places. so it is, it is generally the fact they feel they have unresponsive bureaucracy, not listening to voters.

i think they have a point there. >> i agree with that totally. we're talking about protesters who also are saying they want the government to give them more things. to be honest, some are probably libertarian-minded protesters. some are run-of-the-mill socialists and communists that protest if anything in france. the bigger picture, you especially look at horrible demographics in europe. look at recent elections in germany, sweden, there is a major problem in europe about it is being fundamental ungovernable. you can't square circle slow growth, demographic aging, people conditioned to the notion that government should give them everything. david: so you have macron back down on raising the gas tax. you have merkel leaving. you have theresa may losing that vote on "brexit" i'm suspecting. are the elites in retreat, very

quickly? >> elites are in big trouble but the problem there is not an alternative left. may will probably lose the vote on "brexit," but i don't think that will lead to a good result. the establishment in the uk, like the establishment all across europe somehow think they can paper things over. but the result is slow growth, stagnation, and angry people. david: dan mitchell. thank you very much. happy friday to you. it is happy friday. but also a very important anniversary. let's take a live look in honolulu where ceremony is being held for the 77th of the attack on pearl harbor. we'll have more after this. hav. i wanted to stop. the thing is i didn't know how. chantix, along with support, helps you quit smoking. chantix reduced my urge to smoke to the point that i could quit. when you try to quit smoking, with or without chantix,

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to treat my metastatic breast cancer with verzenio. be relentless. ask your doctor about everyday verzenio. david: hi, everybody. welcome back. i'm david asman filling in. the dow erasing his earlier rally trade fears weighing on the big names. investors alsod also digesting e december jobs report. larry kudlow reacting to wainl report which is part of the report early earlier. take a listen. >> seven quarters, we're running i believe the number is 3.1% and it's 3.3% so far for 2018. look, nobody said we could beat two. obama's one 1% to 2% we're running out three-plus. that's a big thing. and i might add that capital goods were revised higher in the

latest gdp report. i think that's solid. david: the big question is the economy losing steam or should we be happy about the gains that we have. let's go to our associate editor and our own deadra bolton. u what abouwhat about that? i get an earful from people saying that you focus on all of the negative all of the time and there's so much positive. >> thi there is a lot of positi. if you put it in a his tore schooa historicalcontext. we had increase for the first time in ten years. i mean there is a lot going right for the u.s. economy. i feel like the wild card is a lot what we talk about in the marketplace, this relationship between the u.s. and china when these 90 days are up, what happens. and then which businesses are currently being hurt by the tariffs. to me that is much p much more important than any one given

data point. david: we'll talk about the tariffs in a moment but i want to talk about the federal reserve. it was one of your colleagues at "the wall street journal" that came out with a market moving piece yesterday suggesting that the peace was concerned about what's happening with the economy and as a result of that will slow up the rate increases. that turned the market around from like -- it had a 780-point loss at one point, ended up down 70 points. >> it could slow the fed or the fed could look at the wage number which is good. this is a positive number on wages. 3.1% growth in this latest report. david: you focus on the wage increase. >> so does the fed. that's a huge component of potential inflation and that's what they're looking at. what happens with the fed is -- the market has metabolized i think at this point. back to deadra's point. the market is trying to look at the economic unsearchly ahead ud

because of the lack of clarity on what the relationship is going to be like between the united states and china. you've been through this before. there's talks upon talks for decades on resolving the big issues that the united states has with china's cheating and tech transfer and all of that stuff. and the president is saying we're going to make a huge leap here in 90 days. but we don't see any specifics. the market doesn't see any specifics. i talked to one ceo earlier this week who had planned to biltz out the supply chain in china and he's holding off. >> that's interesting. david: "the wall street journal" had a terrific piece today because of the way that the corporations are being pinched because of the tariffs. >> soybeans, our biggest export. year on year the soy bean exports are down 44% that ie tht

a four-year low. china targeted that for tariffs because marchs of those states did vote for president trump. and anything do -- anybody that touches aluminum, anybody that touches steel. and a lot of businesses are one on one saying that we're pretty much paying double the tariffs importicos than we were in may. now the tbood news is a lot of businesses able to go to foreign suppliers saying this is what we're dealing with. can you give me a break. i want to keep ordering from you, i just need a little help. david: i was talk to a soy bean former and he was talking about not only his own farm but about his colleagues' farm farms suggs thesuggestingthey have a lot oft because a lot of the issues are being swept away by the efforts of the trump administration. they're trying to balance the

things that are hurting them with the things that have helped them. and so far i think they're still on the side of the things that have helped them. it's not as if the things hurting them are overwhelming thing. >> the economy shows that. you're right. the tax cut, all positives, steroids for the economy. paying that becaus that back cas uncertainty. but if you're a business right now if your raw material or finished product isment cog out of china. do you stockpile huge amounts of it creating an inventory shi? >> thaissue?>> that has been ha. >> you might be thinking -- maybe a little bit rash to be thinking this but you might think if the u.s. is asking for the arrest of the daughter of the founder of yahweh, are my

executives retaliating? this is an atore tairn state. they don't have to go by the rule of law. there isn't one. >> i like what you said about the business leaders starting to pause. anytime you see that lack of confidence, that hurts business. if i'm not sure i can do with a deal with you because i have no idea what's happening in six or eight months, that slows us both down. >> there's been some credibility issues in the white house. they're trying to convince the markets and the public that something will happen with china. but we have few details and a fight for the leadership of the trade negotiations within the white house. lots of uncertainty for business. david: we hinted at this but the question is are tax cut benefits starting to wear off as a result of the tariff cost. we want to bring in national taxpayers union senior fellow maddie du dupler.

they're feeling the pinch from the tariffs. >> right. david: is that overcoming the benefits that they felt from tax and regulatory relief? >> i think the discussion that you had really hits the nail on the head. we've got competing tensions that for one a really strong economy thanks in part to the trump economic agenda, that's deregulation and the tax cuts. but there's no question that a lot of the investment that we anticipated coming out of the tax cut has been cit stymied. the problem with trade is it destabilizes business decisions. we have 90 dayings more to make a decision but businesses can't make those decisions on a dime. they need to be able to plan for the future. that investment is so crucial and the driving force behind what we did when we changed the tax code last year, lowering the corporate tax rate, all of that was meant to the get businesses to invest here in the united states. moving forward there's a couple of questions. does that mean we'll see less

growth in coming years? it's possible. but on the individual side americans for the first time will be paying their taxes in the new tax code. one of the challenges has been communicating to americans that they did in fact get a tax cut. moving into the holiday season, this is the first time consumers are kind of living in that new tax code versus paying them come in april when the last april they had paid with the last old tax code. it will be interesting to see how the americans incorporate that into yair finances ho theiw that shows up in consumer spending. david: and how it shows up in profits. it's all about the cost of doing business. taxes are a cost. regulations are a cost. those costs came down. but tariffs are a cost as well and those costs have come up. >> we pay the tariffs, right? there's no just like kind of a figure out there paying it. it's up to us. anytime you have the u.s. consumer being put in a precare use position you have to take

notice. that's two thirds of the gdp is our spending. now what is helping so so much and i think is a positive underpinning to the u.s. economy is gasoline is cheap for many people. and especially going into the holiday season it means we're going to spend a little more. that is certainly a positive. but the tariffs, it's a head wind. david: taxes are a cost and they did come down. the question is whether they can come down further. in the republicans had won the house i suspect the chances of that would be eter than they are now. >> you're right. you just answered the question. i think don't count on it for now. and as for resolving this supply chain problem with china, point. they've built out incredible infrastructure in china and china is really good at logistics now. and keeping costs down on supply chains. you don't just move because you're not sure where the tariff debate is going to resolve. you don't move it to vietnam and bring it back to the u.s. if you bring it up to the u.s. your costs go up.

moving to vietnam or india, you're dealing with logistics problems and infrastructure problems that you don't have in china. for the moment they're stuck and waiting. david: and maddie, investments, businesses, a lot of people had supported that with tax cuts they would buy back their stock but they did a lot more than that. companies and corporations in this country spent a lot first of all on hiring people. that's why we have more jobs than job seekers. every individual worker costs 10,000 dollars to find and train. so i'm wondering if those investments begin to slow up as they have less money to invest. >> consider the economic environment that we're currently in. you've got seven million jobs unfilled, 3.7% unemployment, wages are going up steadily. that's certainly a good indicator that businesses are looking to make the investments. they would like to give some of the benefits back to their workers and be able to invest in the people doing that work. the question of course is

whether or not we have public policy that allows them to see into the future and notice that as a good firm business investment. businesses would like to do that. they need certainty in order to do so. david: good to have you all here. thank you very much. one thing that's going up today is oil prices. they're surging as opec has reached a deal to cut output. what does that mean for the consumer disbloos and the latest reaction to the markets tonight on "bulls and bears." that's 5 p.m. eastern time right here on fox business.

david: oil prices surging as opec agreed to larger than agreed to production costs. that drives up the price. how does this all trek l down to consumers when does it affect gas prices. it's already begun to, right? >> there's always a delay when you're dealing with crudes prices. you haven't seen the price go down that dramatically compared to where we were. it's 30% drop in crude. we're getting a bounce today as well as this week. crude has been trading between 50 and 55 for the past 12

sessions. but i got to compliment opec on how they played their hand on this one. they gave us an expectation of a million and then they came out with more to give the mark a pop. david: i thought that saudi saui arabia cared more about our relationship than the russians. what made them bend to the russian point of view. >> i don't know about that. when you get into the inner workings of the big three, us, saudi arabia and russia. that would be quite a card game going on. but i have to focus on the price. november 29th we had a new low in crude and bullish diversions meaning we had new lows and we did not have new highs in kol tillty. that's a sign that they've exhausted themselves and we could have the marble stieb mar. david: oil topped out somewhere in the mid 80s. ding it's going tdo you think io

that level or sit going to settle in the 60s. >> i'm optimistic. i think the global growth epped has been overblown. it's a healthy pullback. let's remember that crude oil has been trading between 40 and 60 in 2017, '18. it was this year that we had the follow through breakout. this is the first step. you're talking about oil being in the 80s. that was the wti here in america peeked out around 77. i'm looking for a snapback and recovery and then we can judge where we are. but it's been pretty interesting how quickly that market unwound. focus on the macro market as well. stock stability is very important and we've been seeing a seesaw market and the fact that we were way down one week, way up one week, down again this week. but we're continuing to hold those extreme lows which i view as a positive. david: good. we like the positive. alan, thank you very much. great to see you. well meanwhile, senators

close in on a deal defying president trump on saudi arabia. the former u.s. ambassador to the u.n. former deputy secretary of state, former director of national intelligence. you know how things work. i'm going to ask you the same question i asked alan. why do you think the saudis bent more to the russian thinking in terms of cutting production right snow? >> well, i'm going to guess that part of it has to do with the price. i think price gets too low, they get concerned. they want to bump it up a little bit. i don't think it's going to bump up dramatically high. i mean i can remember days of oil in the high 80s, 90s, up in the 100s, the low 100s when i was serving in iraq. i don't find this too unreasonable. but i think they wanted to get the price up a bit. >> david: let's talk about what's happening in your relations with

saudi arabia. as i mentioned, the senate is vying for stronger sanctions against saudi arabia in light of the killing of khashoggi. we really rely on that country for so much, for help against terrorism, for our allies in the mideast, israel in particular and again for oil. obviously. how do we weigh those needs against a commitment to do what's right with regard to the khashoggi affair? >> you're absolutely right. i mean, our relationship with saudi arabia is sort of a pillar of our approach to that part of the middle east, the gulf states and so forth. and we don't want to have to do anything without them. they're an indispensable partner. and they're also work against the hegemonic ambitions of the country of iran. whatever we do by the way of some kind of penalty -- i would agree that the killing of mr. ka

shomr. khashoggi is an egregious offense. something has to be done. but the trick is to do it in such a way that it doesn't prejudice our efforts to maintain a strong positiv strond support of saudi arabia and against iran in the middle east. this is the trick and i don't know how it's going to be done. i don't think i would try to pull the plug on too many different things because that would risk throwing out the baby with the bath water. david: and if anybody wants to think about a really dangerous situation, think about what would happen if saudi arabia was taken over by radicals, something similar to what happened in iran in 1979. >> there you go. david: this is a country that has enormous influence in the energy market around the world, still does despite our recent success. i'm told, a couple of cia guys once told me they may indeed have an atom bomb.

this is a very -- if radicals get hold of saudi arabia, we're this trouble. >in trouble. >> it is reminiscent of the iran situation and we all have to reflect on whether if we were really better off by facilitating the demise of the shah and getting the ayatollahs in power. i think the senate is on the horns of a real dilemma. my own view is that somehow or other we've got to speak forcefully about what the crown prince has done, condemn it, but not necessarily, for example, stop arms sales and certainly not cut the rug out from under them in yemen which at the moment, if you were a hooty rebel with you would say we don't have to make any co

concessions. all we have to do is wait until saudi arabia folds under pressure. it's a difficult weighs. david: let me switch to china if i can. the arrest of wha of what ware'. you know how businesses and governments work together particularly in a country like china to spy on their allies and enemies. dto what extent is the company used by the government as a tool for spying ? >> if i'm not mistaken there was al government connection between the founder of the company, i think he might have been in the people's liberation -- david: he was a military engineer. >> and the chinese government is strong enough. they've got all of the leverage they want over to company to elicit whatever kind of behavior they wish. but we're at a critical juncture in the u.s.-china economic

relationship. it's one of these situations where we have extensive engagement and integration of parts of our economies. we have more than $500 billion worth of trade and yet we have these situations that are both competitive and sometimes actuallied a veractually ad rer. i would like for us to get back to the table and see what we can do, elicit from china some kind of a package on reducing the trade deficit and maybe setting up a framework for dealing with the other issues that we've talked about, like intel reck david: heather is nominated to the post that you once held. do you think she has what it takes to be the ambassador? >> yes, i do. i've been asked this before

earlier on a few weeks ago, and then the nomination faded in everybody's mind. but by being press spokesperson at the state department, you get exposed and you have to -- you're on the firing line every day answering difficult questions about the current issues of the day. so i think she has a good sense of the overall foreign policy landscape that we're situated on. she'll have to become a bit of a quick study on africa because the security council has a disproportionate amount of business with regard to africa. second thing i would say is if she's not a cabinet member, i don't know whether she'll be a cabinet member or not. that's not clear yet. but if she's not it may reduce some of the friction and rivalry that appeared to exist between nikki haley and rex tillerson. it would be good to have an u.n. ambassador up there who is on good working terms and personal terms with the secretary of

state. when i was ambassador of nations i had a phone call with colin powell every day of the week. it made a huge difference in how we carried out our business up there. david: always a pleasure to have you on. >> thank you. david: france's tourism industry suffering as more riots are expected. a look at how bad president macron's popularity is also suffering.

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david: macron's approval rate is minuscule right now, plummeting as he predicts more violence across the country this weekend. this saz germany picking angela merkel's replacement. ashley webster will be there to cover the vote.

macron, merkel, may, it's something about the letter m. something about the letter m. >> european leader and your last name begins with m. be careful. yes. let's begin with paris and what's going on there. in these protests. let's not forget that macron caved to the protestses and just said this fuel tax, we're going to suspend it for six months has made no difference. they're expecting violence and armored vehicle vehicles rollinn today. landmarks and shops, museums all closed. let's forget, the shops, this is a critical time of the year for them. david: you mentioned they had structural. >> there were parts of that famous landmark that were damaged that hadn't been damaged even during german occupation but they have not survived these

protests. >> let's talk about brexit which is why you're going to britain. the initial brexit vote. we got to remember who called that right. president trump. >> he did. david: this is this summer of 2016. he was over there. >> he was, playing golf. david: and he said it's clear that british voters are going to vote for brexit. >> he was right. it was an identical parallel when brexit and trump's selection. both anti-establishment but the people spoke. it was the power of the people that got brexit approved and donald trump. david: a and then merkel being replaced. i'm wondering how all of this european populism might spill over into our markets and to worldwide trade as well. >> it will. first off back to brexit. it appears that teresa may is going to get baddy defeated on tuesday. it's so badly that even her own party is saying we should pull

the vote. don't do it. it's going to be embarrassing to you to lose by this much. this brings up the uk crashing out of the no deal, just leave. we're being told could create chaos at the part ports of the . bringing in refrigeration units to store medical supplies. regardless within it i, it is ge very difficult to get a deal done. they're supposed to walk away next year and i think heb job is on the line. david: all of this craziness, riots in france, what's happening with brexit or disbrerm anygermany, they affecy chains. >> we live in a global system. and to your point about the markets earlier, yes, this is going to have an impact. the financial system will have a shock if britain can't get its act together. and the rest of europe, we know

what macron is going through in france. people are unhappy. a power vacuum in germany. it's merkel 2.0. maybe that will bring some stability to germany. but then you have the italians who have a terrible debt problem with the government that can't stand brussels and they have lawmakers not friendly to brussels. the cracks are getting wider. david: the epicenter of all of this is going to be london next week which is where you're going to be to cover the new brexit vote. >> i look forward to it. i'm not sure that mrs. may is looking for it. david: is it going to pass? >> no, it is not going topaz. david: next week in london, ashley webster will be there all week long. we're rely on this man all week long. big tech continuing to get crushed on trade tensions. why chief economist says we need to take a different approach to

china. we'll ask him what that is coming up. that i wanted to teach my kids.

david: the cfo is in court this hour at a bail hearing in vancouver as chinese media is calling the u.s. is despicable rogue for arresting her. susan lee has the latest on this. hi, susan. >> we've got confirmation, that's right, that the cfo, the daughter of the founder o of the company, she's made an appearance. we know she was arrested op saturday december 1st. that's the same day that the dinner took place between president trump and mr. xi. there are questions if the white house had any heads up about this dinner that they were going to make this arrest. john bolton told npr that he had received word before the arrest, before it was taking play. but he hadn't briefed the white house or the president on this.

the president did not know. peter navarro saying that no one know, he didn't know. justin trudeau had been given a few days of advance notice of the impending arrest. this is a justice department issue. not political. this is the largest communications equipment maker in comie that. i would compare it to microsoft or dell. they've been under scrutiny by governments around the world of accusations of being a conduit for chinese spying. the cfo was arrested for violating iran sanctions. the "the new york times" is citing sources saying she may have been transferring information to iran. we have an explanation of the arrest. >> they violated the sanctions with iran. they violated the sanctioned. they had been warned and timely we had to prosecute that.

>> now, i have reached out to them for comment but this is a wrench being thrown in the u.s.-china trade negotiations and some see this as a way for the u.s. administration to try to gain some leverage over china. china firing back as you mentioned, calling for the immediate release of her. but we'll see what happens in that vancouver court hearing today. you feather know my next guest says going to have to be very patient if we want to see china play fair on trade the commander in chief economist good to see you i am reading from your note in which just a couple of days after this woman was arrested but we didn't know at the time we didn't know it until day before yesterday, you say if president trump follows the script we expect no further escalation in trade war a deal with chinese mid next year the

outlook for u.s. china will not change, president trump rarely sticks to script none of us saw this coming the arrest of this woman how does that change calculations vis-a-vis trade deal? >> well, certainly complicates things probably delays the day when we get some kind of arrangement. but at the end of the day, i think it is -- if president continues to pursue policies ultimately broader economy will figure out a way to get arrangement move on so this complicates things delays things, you know makes it messier at the end of the day i think we end up in the same place. >> i would ventura e to say you are optimistic. >> markets reasonably nervous about this a lot to worry about uncertainty, you know we

are certain to hear from more and more ceos of companies, that this is really starting to do some damage, certainly they have paused in their investment they are not investing if you look at investment data, it is weak, over the last several months i think that is in large part because of this trade war, so it you know, investors have greevens trade wars, certainly get certainly around. >> it what about the cost, specifically, the cost that we've been seeing more dribble out about what it is costing u.s. businesses, agency a result of supply chains being cut, and direct tariffs how bad are costs being felt by american business now? >> well, it is starting to show up in data, believe it or not, i mentioned the investment data the investment got a nice boost earlier in the year because of the -- stimulus from from tax cut, the cut in corporate tax rate, but basically gone flat now for the last three, four, five months, and really -- we run a survey off one of our web

sites that businesses we have been doing it weekly since 2003, we asked question about investment intentions very, very strong solid 2013 up until mid part of this year now taken a dive i think tried carr is culprit starting to do damage the other thing one thing if president imposes tariffs 10% businessesfying out a way to manage around that find sources for what they are buying, past some through to customers, and some of it but goes to 25% i think that is a really big deal because then, that will change global supply chains hill destructi disruptive if 25% much more significant damage. >> so optimistic particularly in terms of hiring people, they really went on a limb hired millions of people, u.s. businesses did as a result of the tax regulatory changes i am wondering if flat he thinks that business investment to the point where you could foresee the possibility of a

recession? >> well, i think a trade war if it skwlaits escalates don't met arrangement early next year, president xi and president trump can't get it together, and we do go to 25% tariff on all chinese imports yeah then recession risks awfully high awfully high. >> i got to ask breaking through the wires we have been hearing from different fed officials, so empeople wonder whether wise to hear so often mr. bullard said fed could consider delaying the december rate increase because of the narrowed yield curve until january what do you think. >> i would be surprised shocked, even today jobs numbers on off the side 155,000 well above the growth in labor force unemployment will continue to decline very low. wage growth is accelerating so i think the fed has work to do i would be very, very

surprised if they delay next week. >> why do you think mr. bullard is saying that in public? it is kind of dramatic. ? i well, you know got an opinion, very he presidents folks in fomc have view not monolithic it is healthy they should have a debate no one really knows how this is going to play out you know i think it is fair. >> all right i'm very happy to hear about your optimism about a trade deal i hope it comes to pass sooner rather than later great to see you. thank you very much for being here. >> thank you. >> dow is down over 3% for the week, finalizes continuing to tumble and now there is only one stock among the dow 30 that is positive, that is chevron. . edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.

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so lionel, what does 24/5 mean to you?rade 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... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? david: now new york stock schaij under fire "new york post" report saying it let morgan stanley make trades after-hours, not good gerri willis at new york stock exchange with the latest on this, hi. >> that is right hi david this is the headlined creating so much controversy on the floor of the new york stock exchange, what is about it? some traders on the floor of

new york stock exchange more equal than others? especially morgan stanley. the firm according to the paper allowed trade as late as 4:0 pm last friday the last trading day before president trump met with president of china in argentina big questions whether allowed to complete a last minute flurry of transactions even after the market closed, now we reached out to new york stock exchange find out what they had to say they had no comment on the record. all complainants they say referred to regulation separate addition so moving, we also reached out to morgan stanley reached out to securities and exchange. >> comment no word from each institutions, but i have to tell you, one of the details here important to understand, is that what matters here is whether your trade your order is time stamped before 4:00 pm some get done after 4:00 pm always time stamped before 4

pm question how was this handled i would think we are going to get more details, on this sometime in the future, certainly, going to be investigated here possibly by regulators. >> thank you very much, our market is trading at session lows or near to it right now, we are almost in that negative 2% category, and that is not a good spot to go down below, because after that things can get even as in nastier, ibm caterpillar biggest laggards on you do we have talked how business is affected by problems with china, what is happening with fed shg let's talk to a business man, we are going to talk to him coming up, small business owner right here, on fox business.

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david: breaking news from vancouver where that huawei cfo was arrested by canadian authorities at behest of u.s. authorities is at a bail hearing right now in vancouver. we're to the getting a lot of information. canada doesn't have exactly the same rules about the first amendment we do here. they did say, the canadian court, they lift ad publication ban that was secured by huawei officials. so we will be hearing something about it. all we're hearing from the canadian foreign minister said their relationship with china is

quote, important and valued. they wanted to put that out there. we'll let you know what details we get. wall street wrapping up a rocky week. investors are antsy. business roundtable reporting a strong outlook for the next six months despite trade, rate hike fear. we have a small business owner. butch, you talk to a lot of analysts we have, it is the end of the world. what do you think? >> no it is the beginning of the world. business is brisk. we have restaurant haul -- halls in new york. they're out spending more and it is great. david: first on taxes and regulations, the president is proud of tax cuts and regulatory changes are you hiring more people because of them? >> we can't find enough people. unemployment rate is so low. we have trouble finding people

and we're busy. david: customer demand because you're busy, shows the retail market -- >> they're out there buying dinner and better menu items on the menu. steak and lobster. we sold more lobster than ever and it is great. david: the market went below 500, below the 2% mark. we continue to keep a close eye. are you concerned what is happening on markets? >> i'm always concerned about the economy but not the way the business is rolling. we're busier and busier and what the president has done is amazing. david: what might affect you in terms of borrowing money. if in fact the fed keeps raising rates as a result of their concerns that might affect your ability to raise money. you say you need to as a result of expanding. >> we need to raise money. we hope rates stay where they are. obviously they can't forever. neil: how do you expand? are you going in for small business loans or what?

>> regular banking an small loans and try to keep it here as possible. david: on the coast, los angeles, san francisco, new york, cost of real estate. people in the restaurant businesses. i know restaurants have gone out of business specifically because of that? has that affected you. >> most the properties we have we own. real estate taxes going up in long island and it hurts. we're busy with sales. raise price as little bit. it works out for us. david: profit margin is continuing to expand and not contract? >> it is not flat it is up. david: what do you talk about finding workers. the government only thinks they have the solution raising minimum wage but have you had to do it on your own? >> we have to raise rates. people do more over time. we can't fulfill every shift. we have to work beyond the normal 40-hour week. make more money like that.

>> you talked to your colleagues. we mentioned a survey by the business roundtable, saying essentially what you're saying optimism is still there. did they say the same thing? is this unique to your business or acrossed board? >> across the board. very small businesses, ma and pops will struggle a little bit because they can't find any help. a little more expense to them will hurt them. moderate to larger small businesses should sustain anything now. in the past we sustain ad lot of problems and all the regulations we went through. now we're coasting along and it feels good. david: basically you're optimistic about the future? you don't focus on the china thing we do or the markets? market is down over 510 points. that doesn't concern you that much? >> it will go back up. david: yeah. >> we're excited. david: i love your attitude. butch, dover group ceo. great to have you here. thank you very much for coming on. continued success to your and your family. it's a family-owned business? >> yes it is. david: i am going to be back here 5:00 p.m. eastern time with

me own show, "bulls & bears." now we have a man named charles payne to guide you through the next hour. i'm sorry to hand off 500 point loss on the dow, charles. charles: have a great weekend buddy. good afternoon, everyone, i'm charles payne. this is "making money." we'll wrap up a wild week. we're in the midst of a wild special after today's jobs report, and more, china trade news impacting markets, speculation all around. speaking of which all eyes on the federal reserve. we'll break down what is going on, comments made by the federal reserve chairman himself what do they mean for rate hikes? pushing back against elites for europe. france preparing for more protests. 89,000 law enforcement. uk "brexit" vote taking place on tuesday. the entire continent many ways up in flames. all that and more on "m