>> great show everybody great to be back dagen lee great to see you. great to see you keapght wait to see the show tomorrow on your great interview. >> have a great day we'll be back tomorrow right here same place with jamie diamonds review have a great day everybody. "varney & company" begin right now. stuart take it away. stuart: thanks so much maria. good morning everyone. great to be back. just as we start the first full week of the year. seems like the economic picture has changed a little. there's certainly been a shift at federal reserve rapid rate hikes not so likely right now do they? surging manufacturing wage growth picking up and, yes gas prices keep falling so look at this stocks going up but the open this monday. up 700 friday for the dow, up some more this morning. now during the show today, you'll be hearing from market watchers who now see solid gains for the stock market this year . then there's politics. i got away from it for two weeks

in new zealand and australia and back to pure economic nonsense from the left. alexandria cortez wants 70% to pace for a green agenda and possible presidential candidate julian castro wants a 90% rate to pay for medicare for all. the extreme left appears to be calling the shots for the whole democratic party and yes it is day 17 of the government shutdown. it is all if the wall. the president is talking about declaring a state of miranda emy to get it built so far the shutdown has had very little impact on economy and no impact on the stock market. monday morning, "varney & company" is about to begin. ♪ >> actually you're better. stew varney usually comes at me

with a sledgehammer. he just absolutely no matter how good numbers are, my dear friend stuart we probably known each other over 20 years i think you're much more even keel. so i really like that approach. and i thank you for it. flf [laughter] well -- i -- out of context because last spoke with larry i think especially on jobs, 155 fast. incredibly sulky that day you said it was not good enough last friday it 312,000 and everybodys smiling that's the context. >> well okay i have known for 40 years -- 40 years ago. now what else did i miss? >> larry kudlow like a post party, you know, but what you missed was again more of the same stuart more violence swings to the downside and thenup side. i mean that's been the hall mark of this market we haven't seen it like this in five decades this kind of behavior and in the dow. >> what year did you leave

because donald trump is president. u.k. voted to get out of the e.u.. >> i remember that. apple still trending along so gas prices -- are still falling. they fell throughout my absence. 223. >> more than a dozen states three a gallon that's the same for you two dollar gas. right so go away for a couple of weeks stay away from all of the toxic politics i come back to this. wait for it. democrat congresswoman xangd alexandria cortez on "60 minuteses" last night. when you have a progressive tax rate system your tax rate you know let's say -- from zero to 75,000 dollars may be 10% or 15%, et cetera. but once you get to like the tippy top, on your ten millionth dollar sometimes you sigh tax rates as high as 60 or 70% that doesn't mean all ten million dollars are taxed. at extremely high rate, but it

means that as you climb up, this ladder, you should be contributing more. >> let's bring in form or reagan economist art laugher who knows a thing or two about rates 70% or otherwise what would it do to economy art if we did indeed have a 70% tax on the superrich on very high incomes. let me first say welcome back stuart lovely to have you back. and ashley you're wrong on the numbers, on 312,000 last month. they revised back the last two months priority and raise 60,000. the rile number is 372,000 so -- it corrected now -- if i can go back to if i can go back to alexandria -- cortez, she's a very bright breath of air in congress goodness knows i would like to see a lot of congressman with that afnght, that energy, that love of policy that she plays it is amazing and what she said

right there is exactly true as well that's what a progressive tax system does. she's exactly right what she doesn't understand is that damage it will do to the economy. you know about when you make work less attractive people work less, and if i could get some time with her just to talk about economics off the record, i would love to do that. and go through some of these ideas because whenever we raise tax rates on the rich, whenever we've done it, a tax revenue from that one percent that top 1% have gone down, and that doesn't include all of the -- peripheral that accidents that go down as well and bonus we get a depression recession or slowdown in my so she has her technical stuff right. but she's wrong as to what the consequences are. they aren't going to pay more if you raise taxes on them but figure out ways around tax system. >> got it. all right let's talk about government shutdown is day 17 -- now you have shutdowns during reagan administration i think you did. >> nixon as well and all of them

clinton. >> this particular one, it doesn't seem to have had that big an impact on the economy. and we 17 days in, now kevin says growth goes down by one tenth of one percent for every two weeks. the government shutdown, that doesn't seem like much of an a efnght. what do you say art? >> i think it probably is larger than it really is. kevin is a wonderful economist and really knows his stoves and i'm a huge fan. but when i look at what's going on, it's rather straightforward to me. i mean, trump stands for a wall. and pelosi stands to stop that action. if we have this type of conflict every time we fund a government program that did or did not make sense by the way stuart i'm not expert of constructing walls i know nothing about how to do it but we have 705 billion units in total annual spending by governments. that means if we fought this much over each and every of them we would have a libertarian paradise in no time there would

be no government after a couple of years and we would all be in libertarian heaven. it's pure politics. pure pleks checks or spending it is pure politics. >> exactly and let me just say that they are scorch they're earth too not looking better. nancy pelosi because pelosi could stop this. tomorrow morning you've got government right back to work so could donald trump what they've done is they've drawn a line in the sand. where they're now doing this battle and let me just say one thing had about lines in the sand they're easy to erase and what you really want to do is just get off your horses nancy pelosi and donald trump. donald trump has promised this wall she should give it to him and then let's get on to discuss real issues coming up in this society. and how goth is spending in taxes. >> hold on for a second art because other question our viewers want to know is big tech. let me talk about apple with ash emac for a second here. have we reached a bottom on apple i'm looking at this

morning at 1:48. analysts are saying yes because tim cook in the middle of that dismal guidance he on revenues that slam stock he's saying we will have a record in earnings per share cash pile is strong at apple 5g is coming in and market is pricing is likely incorrect because it is saying it is forward multiple at ten that means no growth that's not realistic at all so way apple has been acting on average this stock should be priced at a about 194 with the cash pile factored in there. >> 194 is at 148 and as we speak -- it 166 at least because of the multiples. >> all right liz january the 7th of 2019 and you said it. all right. hey art back to you. [laughter] looks like the fed is taking a more -- a dubbish approach to raising interest rates. is that enough to give us a real solid rally in 201 on overall market? >> sure, and this is exactly

what i hope powell would do this is why he's a great fed chairman. he's taking a pause. because what he saw was very clear evidence that when he raised rates markets collapsed, and you know that's not what had the fed should be doing is is causing markets to collapse. and i think he's acting in a very considered very deliberative fashion and i'm a huge fan of his pause and huge fan of his had chairmanship. if you look at this economy, you know stuart, you know, the u.s. economy is on the prowl. that last jobs report, the stock market over the whole time period, the tax bill, the deregulations you know all we need to do is keep our hands off it and this thing will start performing like mad. if we can get a trade deal, this would go to the moon. >> okay. now there's the soundbite of the new year. potentially, art thank you very much indeed sir we'll -- >> thanks don't have too much fun without me being there now. elizabeth you control those -- irish woman for first time. >> true grit.

[laughter] all right -- look at this. welcome home. thank you very much indeed great to be home and i mean that. look at this. a future moving up some more just in the last couple of minutes we're now going to open up 70 for the dow industrials remember we're up 700 on friday. big win for netflix at the golden globes. the film aroma won best director and best foreign film the director of the film saying there's no way his movie could have done as well if it wasn't for netflix that's quite a plug for that stock. christian bale made the award show political took home award for best actor for his role as dick chainny in movie vice, he thanked satan for giving him the inspiration to play the role. i'm afraid we're going to play it for you after this.

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save at trelegy.com. all right take a look at price of oil this morning we're at 48 dollars barrel a three-week high. china trade talks and opec production cuts boosting oil

this morning one and a quarter percent. gas prices still falling by the way. big win for netflix and they're release at the golden globes tell me more emac. >> five wins for netflix this is really giving hollywood producers and mowing pals sleepless nights you can imagine five wins for them meaning they won for the method that's comedy there. they won in a major film category or for foreign film for roma so are movies basically going to bypass box office and go to app so disney properties picked up from fox six, the fox propertieses that won for disney so that's a big deal too. >> netflix is spending $8 billion a year on -- content? >> 13 billion last year. that's a big chunk of money i'm so excited -- [laughter] all right while you're doing that we're moving on staying on globes christian bale won an award for his portrayal of vice president cheney in the movie vice. that he took a shot at cheney is

acceptance speech. watch this. >> what do you think mitch mcconnell, next? that could be good. [applause] awe -- thank you to satan giving me inspiration. >> he has a british accent what are these people doing here? pete -- really? do you know what i mean here? what is he doing coming over to this country and insult our leaders with a british accent and we have to pay the price. >> didn't he -- stuart: just like them. >> he said dick cheney was a nice family man in an interview with fox news. two or three weeks ago. sorry european -- happy to listen. that's cool. but welcome back by the way. so great. listen he's, obviously, capitalist willing to play a guy he despises but you know if people want to choose what do we expect from these award shows? to me it's all a of the same you

know what you get at the golden globe and oscar you get trump hate dick chainny hate, it is like the guys that rail against rail for gun control and then play the shoot them up role in all of the movies. like they're hypocrites on this stuff they want the money, and then that little moment in the sun. they virtue signal to further leftest and golf clap for each other and it is fine a nonsense. >> has to be the champagne. >> you use the british accent throw upper class. >> cheerio funny. i want to talk to you about elizabeth warren in iowa. she made, i think, five stops over the weekend she made a point to say she's not a person of color. nor a citizen of a tribe. now, that is a sudden change. >> it was a disaster of a rollout for elizabeth warren. >> you think? >> president trump defeated her with nickname pocahontas done a

substantive insult based on her background it is stuck it will stick all the way with through and tried dna test before election showed that she was one and 1,000 that didn't work. think of this rollout starts with a facebook live video where in the middle of it she goes -- let me go get a beer. like elizabeth warren doesn't do that. so she gets a beer drinks look it is the first beer she's pfer drank. michelob ultraare is my favorite beer. >> never said that is their favorite beer and dealses with these questions because she did misrepresent her background and then into the fifth stop she loses had her voice. 5 stops into her presidential run and she is loses her voice talk about low energy elizabeth you keapght keepier voice after one day in iowa. good luck beating donald trump. >> you don't much care -- >> nope she's done. the only polling for her are political consultants in washington going to make a ton of money off her being a viable front runner candidate request

so many other people who will tap into energy of the left and there's a devastating critique trump has of falsehood and misrepresentation she's going to be explaining the whole time when you're explaining you're losing you're not moving the conversation forward. >> i think you put your finger on it there because i think the extreme left, the social fist left of the democrat party is now running the democrat party. >> absolutely, and they've got enough choices whether it is robert francis and beto o'rourke all of these guys are are as far left as elizabeth warren and might be seen as new fresh -- >> what about julian castro -- >> tax rate up to 90% on the superrich. >> that is exactly what they mean. they used to be democratic socialist now they're just all socialist and run on that and mask it under medicare for all free college information infrastructure projects built by the government. so intellectually dishonest an requires provided middle tax. retaxes on everybody. everybody will pay more. when you tax the superrich i've never been hired by a poor

person my life so what happens to job and growth and initiative in industry it aingt happening. >> when i was enjoying beach in australia i could have use your energy. you have that british accent. trying to lose it soon. let me tell you right now. you're all right. thank you, sir, take a look at futures got up a little bit more. this is how we expect the market to open this monday morning now we're going to be what about 67, 70 points up this morning. up 700 friday. don't forget that. fallout from the government shutdown. new reports say that the tsa some agents are calling out sick during the shutdown leaving travelers to deal request understaffed security check points long lines. full details on that, coming up next. [knocking]

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look at these numbers today. it's just -- yes a blowout statistically, but this is the kind of thing that is going to raise the the animal spirits. i can hear people. i can hear people across the country going, whew. you know what? things are a lot better than some folks are saying that was ashley webster interview by the way. on friday congratulations because he was talking about animal spirits lifted market then, friday. helping the market now too. look at it we're going to be up about 60 point for dow industrials, come the opening

bell. got to talk to you about the shutdown a so-called tsa stickout protest causing headaches and delays at security at some airport. homeland security is denying this. they're saying grossly exaggerated but you know seeing four major airports across the country including laguardia and jfk with people lining are snaking around building you see line there is. now they're saying show up three hours earlier instead of two for domestic travel so we have the pilot union qarng delta and united airlines and jetblue pilot saying wait a second this government shutdown will hurt the operations include inspections of and more at the airports. so some warnings coming out of the airports. in the officials there -- >> we hear it lovely got it. huawei employees -- punished for sending a new year tweet. now that seems a little strange. pfnlgt seems weird it said happy 2019 in that tweet on new yore's day unfortunately it was said via twitter for iphone that also appeared, of course,

iphone being a huge competitor of huawei those terms two employees they're in trouble. the boss is very upset saying you've damaged our brand they're not fired they're getting demoted to one rank salary dropped by 728 dollars each per month. one of the employees had a salary frozen for 12 months so embarrassment for huawei because he had two employees you know, communicating via iphone. that's pretty what are punish isn't it? >> what issue that is harsh andt has come to this. >> it has. check -- futureses we're opening market at 4 and a half minutes we'll be up. 50, 60 point for the dow. going to be interesting to see how tech reacts, though, because the nasdaq futures is show a very small loss. stay there please. four and a half minutes we open the market and take you right there.

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well, all eyes on wall street this morning. because in 34 seconds we're going to open this market after a week the first few days of trading in the brand new year, remember on friday, the dow was up well over 700 point. and i think on thursday we're down 600 had as they go 30 down 6u had so a lot of up and down

extreme volatility, we're expecting the market to be up 60 maybe 70 point when we start trading this monday morning. big tech, not likely to be a star performer. we'll piepgd out the really big winners for you but right now bang we're off, we're running 9:30 on a monday morning and we are running look at that 746 up last friday. we're opened it this monday morning with a gain of -- 35 points. some of the dow stocks have not yet opened we'll give theme couple of minutes couple of seconds and find out the true opening there. looks like we're up 30 to 40 points that's all we got we're expecting bit more. how about the s&p 500, where is that open this monday? it is up -- just a fraction actually. i cal that dead flat to be honest request you. and nasdaq composite now let's have a looking at that. it is up at a quarter percent. so maybe i got big techs wrong maybe they're doing well this morning and break it down for you in a second one more number

on parking lot treasury 2 64% i've been away for a couple of weeks before i left, it was around 275 got down to two fives. all right well take 264 this morning now give me big techs where are they this morning it is a mix haded picture. facebook down, amazon up. apple is unchanged at 148 alphabet virtually unchanged microsoft down 40 cents yes, i have is here. keith fitzgerald is here so too liz mcdonald's and ashley webster. there you go. [laughter] called jet lag. excuse me ladies and gentlemen -- [laughter] what else happened when you were gone? you know it has important when i'm talking about the fed. big rally friday, at a fed chief fowl gave the markets what they want. so jeff seeger who has been negative have you changed your tune? >> not always negative not 100 psht of the time but no i'm not

changing my tune i think the difference between thursday and -- the difference between thursday and welcome back -- something changed, few words out of jerome powell he came out and he said he's flexible he made it seem like he's going to go along with the president's agenda to keep rates low. i think that will be a very good thing to the market because i've been saying it all along the market is addicted to low interest rates. but that being said, i think there's an ominous problem with the potential trade war against china with the march deadline so until i see some real progress on that, i'm not changing my position. >>ly tell you that some of the analysts who have been on this program who would been at negative for next year 2019 they have changed their mind and they're now a bit more bullish dennis in particular. okay let me move on to talk about apple for a moment reportly weak demanding for

iphone xr that's the cheapest of the three iphone releases, keith is it too soon to call the xr a flop or -- too son to say that apple has hit bottom at like 147? >> you know, stuart i've given that a lot of thought. ting this stock ought to be somewhere in the 185, 195 even 200 dollar range when you physically price in the cash and earnings potential. the xr yeah come and go to me i would like to see apple drop a couple of more bucks to clean out weak money and we're off to races. >> then we're off to the races that's important point so it gets back to 181, 192, 100. don't forget as apple goes so goes markets there's still a lot of institutions hedge fund that wrongly in 2018 they're deleveraging trying to get back to the mark and then they want a good 2019 so as a all of that sorts itself out that's when we're going to find bottom. i think we're close. >> okay let me talk to you about

starbucks they've had a new ceo he's reigning in some of howard the founder some of his biggest initiatives like premium cafes. you're in seattle, it started there. is this a good move i noticed stock is down a little bit this morning. >> i think it is a good move. you know i go down to pipe place market where original starbucks shop is and that place is still packed but i think premium that was overstepping i think howard got ahead of himself and good for shareholders bringing that back. >> any interest? pfnlgt he ahead of himself and they have alcohol and now they're going to test about 7 to 10 see how they work out and if they work out they're going to roll them, roll them out because they're sighing declining foot traffic in starbucks they have to put their focus on what brought them to the dance, and what that is, is their standard cafe. >> so much much faster an cheaper competition. . right. look like to me they're

continuing problem in the afternoon coffee sales -- just as really the stock here for who drinks coffee in the afternoon? >> a lot of people and they're going mcdonald's instead because it is cheaper. so -- i would be up all night and i'm dead for the night. >> we're working in the afternoon. [laughter] okay, moving -- it is great to be back i have to fell you check the big board now we're down 20 points. 23,400. stop laughing. [laughter] jett lag i tell you -- the ford f-150 recall catching fire now announcement made last month. today, owner star getting notified there is also news on ford about a new one million recall vehicle recall recall over takata air bag 8 dollarss per share how about price of oil? i think it is up today.

you're at 48 dollars a barrel that's up 60 cent look at the price of gas this is -- this is good for me. we're down again. 223 is your national average. don't you like that? smiles people come on. [laughter] streaming goes mainstream at the golden globes. big win for the netflix release roma why is that a big deal? >> they have five wins at netflix so now, i mean this is a friend we've been reporting on for years now but really taking hold that the -- that basically hollywood is seeing left on the back burner that the -- production studios are going right to streaming. instead of big box movie, you know, movie box office kind of big showy hit because show is on netflix and it took off. roma was a big hit had. >> i do like netflix this is so pin no vattive so important so monumental because this is a foreign. with a good chance of winning oscar for best pull this is also a way they made this film l for,

i believe around 15 million dollars. if they would have went for a theatrical release of this film, it would have been ten times that. so what we're seeing is that a lot of the movies that have gotten theatrical release what are called big tengt movies that are action packed now you have real quality movies that can get some real legs and win some awards and bring to people who have much more of an appetite than what hollywood is showing. up 2% this morning netflix at 304 as we speak. how about lowes home improvement, they're going to hire 65,000 workers this year. keith, that's -- yeah 65,000 workers. that's a lot of people, keith is that an economic indicator? >> you know, it is and it isn't stuart because those models require tremendous fore thawght i'm leery when i see that if it sticks and lohse is correct that's a fabulous number because of implications for broader

economy they made that projection at the time when maybe math wasn't right are so i don't know. >> up to 65,00050,000 would be seasonal so that's not -- 10,000 would be permanent. ash -- let me pull my colors back a little bit. 50,000 a seasonal. i have to talk to you about elon musk broken ground on tesla shanghai factory he says factory will promote vehicles for chinese comiewrms is he getting around trade tariffs? >> this is really smart of musk to do this and bmw why saying it is a fifth will be all electric by 2025 and china is no joke they're pushing hard. all virtually all of the taxes and buss are electric. that's china a third of all global electric sales vehicle sales come out of china. so you know, he's working closely with the government there to make model three for the china market. i think it is a big push by tesla and smart look at that

stock move. >> yeah. he's also looking to buy -- to over-- bypass what's happening here which is losing tax credits and picking up this sales and china. what the problem is, is that yes, there is a electric car push in china. but the problem is, car sales and the economy incline at a china is declining so i believe this timing is -- off with this. i think he's going to have a very is hard time. >> all right i'll get to you in a succeed keith but disney land, california raise aring prices ahead of the scheduled opening of a "star wars" theme expansion. keith, the cheap fest data ticket there, this in california cost over 100 dollars. that a good strategy raising are prices like that? >> you know, if the markets will bear it capitalism in its purest form. i personally wouldn't take my family there because it is going to break the bank but you know what a lot of people do stuart and if they can handle it good on them.

>> i can never understand that that kind of price and they're flocking in. they've gone up king consistentd it hasn't hurt sales numbers. 4% increase and what they're now -- now creating is the "star wars" land, in disney, they think that that's going to bring a lot of people all a of the "star wars" fans and multiple generations are going to come. i think it is a good strategy. i think it is going to work. i think they've shown that they've invested enough in the theme parks to justify this. whether people are going to spend it remains to be seen but i think it is a good idea. >> it's that time 9:40 you know why your analyst are on the way home cote and jeff. gentlemen thank you very much indeed i have to show you big board we've turned south not heavily so. but we were expecting a nice gain 60, 70 points at the opening bell didn't get it but we've got now ten minute into the session is a 30 point loss we're at 23,400.

now this, new york knicks player, says he's skipping a trip to play a game in london. he's off turkish desent critical of the regime he's worried about repercussions when he's traveling overseas. he says erdogan is, quote, a lunatic more violence in france other weekend police clash with yellow vest protesters, torched and what began as a protest against diesel taxes turned on a turn on presidency. we're on it after this. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those.

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i'm going to call this market dead flat 600 down thursday.

700 up friday. this monday morning, we're down 3 points. i call it flat. more violence in paris, remember there have been consistent protest over high taxes, maybe the issue is changed. steve hilton is with us host of the next revolution on the fox business network. those protest were originally about high taxings on gasoline and diesel. now it seems like they have taken over they want a revolution. >> with if i can add to the the horror on your show you've said too much british accent going on. i have to add one thing worse than british accent french accent there are two here. you have the original yellow vest protesters grievances are about taxes and cost of living. you have the -- [inaudible conversations] the wreckers they latched on tos remember macron weeks ago at the height of the protest, he was conciliatory he met leaders

scrap the gas struck a note of conciliation in new year message he basically unloaded only them it was his deplorable moment he issued a statement saying that these protesters were racist, sexist homophobic like hillary clinton and in response they said right we're going straight back on this -- [laughter] >> doesn't look like it is going to end any time soon. he's made it divorce. worse. >> , vote next week in britain parliament on theresa may brexit plan getting out of europe is she going to win this vote? >> i don't think so are. because nothing is really changed remember this vote was shed for december. she pulled it at the last minute because it was clear that she was going to lose by a big margin she said i'm going back to europe get more concession that hasn't happened basically ignored her so she's going back essentially with a same deal. so i can't see how she gets it through. >> sitting here in new york it seems like a mess all stuff going on in france lack of

leadership in germany, the italians are still fussing with europeans about -- money. there's one thing that connects them all in a highly relevant to our debate here is immigration. it is uncontrolled immigration into europe. that was a big factor in brexit it is a big factor in the italian populous government and certainly in germany a huge issue all over world that's why it is highly relevant to our conversations here afterall. >> you really would have thought that america would learn and democrats in america would learn from experience in europe letting in a million migrants all of a sudden that wrecked european union. >> exactly. and so -- the surely there's an easy agreement here that sense only people can have which is yes we are proimmigration. but it got to be properly managed and properly controlled so it benefits the economy and society. and when it is out of control, as it has been in europe, it is a disaster. >> you're a hard case aren't you? i say that, because i -- [laughter] that's a british accent.

yes, and french. >> very french. been a german. [laughter] okay. enough. you are a hard nudge because i've read your piece on foxnews.com you think that the president was right to get rid of kelly and mattis? >> yes. we have and should have the highest rpght for what they did for our country in the military no complaints about that at all. they were there in the trump administration in civilian leadership and fact is, that step by step they were trying to undermine the policy agenda that frump was elected on. for example, on trade, the the president couldn't have been clearer in his election campaign he's going to get out of nafta, scrap trade deals and so on. now you may disagree with that but elected to deliver that. james mattis as defense secretary was plotting with gary cohn to undermine and block that trade agenda. now that is completely inappropriate. he shouldn't have done it and what the president needs is a

group of people around him who understand and back his agenda and can help him get it done. fnght has he got right people around him now mr.ball upon is national security haroldline bolton. he's got the right are team in place. >> it's not having people exactly of your opinion but a saying in business that i lover. disagree then commit. and what that means is that -- in advance of the decision everyone should speak up you should have different voices speak freely but once boss decides get behind that decision so you can have bolton who don't necessarily share exactly the president's agenda. but once the president decided you have to back him and mattis and kelly were not doing that. >> what do you make of that british guy mr. bale coming over here and calling vice president cheney satan? >> come here be positive about this -- yes that's what i think. >> you're all right you stay. thank you appreciate it. check the dow 30 we're down a little. holding just above 23,400.

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quick check of your money we're down 90 points unexpected i'm newt sure what factor pushed us south but we're down 90 points in first or 22 minutes of business. how about this? this is an apple billboard outside the consumer electronic show in vegas. what happens on your iphone stay on your iphone looks like their making privacy a big issue. joining us the cyberguy. you know, i always thought the cef electronic show was about new gizmo this one seems to be -- priech city. >> in privacy. a big welcome back to stuart varney. hey, we have a 14 story billboard capturing the show you can't miss it when you walk in. apple i've been here for 20 year. i haven't seen one word from apple ever until this year. and that's a big jab at google and facebook. we also stuart, are seeing some

incredible technology coming out of 2019. last night samsung unveiled 8k tv line as well as what's called a microl.e.d. modular tv to walk up to wall and build with blocks any size tv you want just simply remarkable. and when you ask about 8 what 8k means it is four times resolution of a 4k tv. when you get really close to this tv stuart, you cannot even see the pixels whatever the make or model it is gorgeous and smart technology here is the play where the company is taking the 4k content out there because there's no 8k content and upconvert 8k with with a magnificent picture inside of your home coming out later this year. >> forget the privacy issue for a second because 8k to me is far more interesting. is this going to be coming called i buy something like this at any point in near future 8k ?

>> for the first time this yeert prices will get it a consumer level for later in the year. so like the 29h would be 98 inch samsung two l.e.d.8k tv you and i have to pull beth our pig gee and friends to afford that one but prices come down on all tvs especially in that sweet spot of 5600 to 700 mark, on a 4k tv, this past year, about that will start dropping way down as the 8ks roll out. >> how much for an 8k by the end of this year? >> i wish i knew the price but i'll tell you probably going to fit somewhere between 1,000 to 1600 for the lowest price one. so don't hold me to it no pricing info yet. >> look you've seen it i watch a lot of television being in the business that i'm in. is it that spectacular?

>> it is. it is. i really i was expecting a gimmick and i walked up last night and i just was like am i contacts in right? this stuff looks spectacular. and you say okay, it really looks so life like that you might swing the extra big bucks for this kind of set. and when they came out with a microl.e.d. modular idea that doesn't means we go shopping for x size tv it means we look at a qawl in a room at home and say i wonder what we can put here and you start building 120 inch tv. so you start to see one block next to another block to another block. and it smart enough to know to move the picture to that width without us needing a scientist to come into our house to make the tv work. >> that is fascinating stuff. much more interesting than privacy quite frankly. all right kurt thank you very much indeed sir. see you again real soon. now then, i think most people know certainly regular viewers know i've been away for a couple of weeks i was in australia and

new zealand i got away from it all well now i'm back and i'm not sure i like what i'm seeing in the news. my take on that, coming up next. [ phone rings ] hey maya. what's up? hey! so listen, i was taking another look at your overall financial strategy. you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. i'm all ears. how did edward jones grow to a trillion dollars in assets under care? thanks. by thinking about your goals as much as you do. metastatic breast cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i. . .

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stuart: 10:00 in new york. it is 7:00 in california. i'm back. i've been away for quite a while. as i come back the markets are down. it is not that serious. we were up 700 friday. in the first half hour of business this monday, we are down 55 points. just coming at us, the latest read on the service sector. tell me? liz: 57.6. it is a disappointment. street was looking for 59.6. however anything above 50 still shows growing and on track for broking this year. stuart: disappointment. 60, 70% of the economy disappointing performance. look here is here. brian belski.

chief investment strategist at bmo. disappointing indicator on the service sector. what does that tell you about the market? >> not much. 50 is a major number from a longer term perspective. i'm hoping this isn't one of these data points the short-term traders try to jump on. because the economy is still expanding that is the bottom line. stuart: however, you have changed your tune, haven't you. stuart: let me explain. i read but in the "wall street journal" this morning. that you have altered your forecast. downgrade ad your forecast just a little for 2019. what is the matter with you? >> from a d sharp to a d flat, okay? we're not really changing the tune from that much. we went from 3150 to 3,000, here is why. stuart: this is s&p? >> subpoena 500 from 3150 to 3,000. i think we're still at the higher end of the street with respect to my other compatriots. to achieve that type of move,

especially considering selloff we had in december, it would have to see a powerful type of rally. now the numbers are for a big rally, however. following a negative year, stuart, since 1945. the stock market defined by the s&p 500 averaged 13.4% return where following a year we lost money. we've only lost money six out of the last 30 years. this was a big deal, market was negative last year. we were humbled last year. we were more bullish than some people. we underestimated the amount of rhetoric and power of emotion and innuendo we think really drove stocks. we believe fundamentals were not in charge of the stock market in 2018. stuart: will they be in 2019? >> i think so. the phrase you want to think about, what should have happened in 2018, will happen in 2019. meaning more investment. fundamentals matter. earnings matter.

money coming back to the united states. especially considering volatility in other markets. we're expecting a fancy global sin conoised market and growth market around the world. we see political volatility but earnings and fundamental volatility. i think money is coming back to america because of that. stuart: all our viewers with 401(k) or ira, 401(k)s in particular, 55 million people have the 401(k) this, is the time they can say i want more in stocks or less in stocks, more in bonds, less in cash, should they be say staying in stock? most of our viewers with 401(k) are in the stock market. should they stay there? >> absolutely. at the end of the day they will not touch the money for several years. compounded annual growth rate of the stock market, 8.6% to be clear. you can massively outperform bonds. i think you are a doing great disservice selling now. buy when there is fear in the streets. in december there were fear in the straits.

we, downgraded a our number after the market rallied late in december. we didn't do it until january 2nd. stuart: what about people like me? >> you've been off for two weeks. stuart: talking about my 401(k). i'm an advanced age. i'm getting up there. should i be moving out of stocks a little bit. you know know what will happen? >> you shouldn't. we fail to recognize bonds we believe are heading into negative real rates return next few years. at interest rates to up the total return will be going down. we can talk about bonds being more attractive portion of your portfolio where yields are. remember as yields go up, price pose down. i think many people forget about that. the negative performance of bonds, will have a very strong negative performance to balance -- ashley: we turned positive, stu. stuart: that is good, brian. that could be weakness in the service sector. >> correct. stuart: which could mean that the federal reserve will remain

dovish. won't raise rates. >> this whole notion of bad news is good news, here's the deal. fundamentals are improving and that's the good news. they're still very strong and stable relative to the rest of the world. that is what we need to focus on as investors. stuart: you bailed yourself out. not bad. thank you very much, mr. belski. >> welcome back. stuart: check the big board. we have indeed turned positive. up only just, but a six-point gain. we'll take it. all right. check big tech please, where are we? mostly down. i have facebook at 136. i have got apple at 147. alphabet, barely above 1,000. the loser here is amazon. just got back above $1600 a share. apple is the biggest drag on the dow, as you saw there. it's down. look at ge. new report says they're in talks to sell their jet leasing unit

to apollo, that is private equity. could be worth $40 billion. 8.38 is the ge stock price. >> eli lilly buying laxo oncology. not surprised it is up $92 a share. don't forget oil a three-week high. china trade talks apparently good for oil. opec production cuts good for oil. $40 per barrel on crude. and now this. i've been a way for a couple of weeks. i was on the other side of the world, new zealand and australia. i deliberately got away from it all. i was celebrating the season of goodwill. then i came back. i suppose i should have expected it but the level of hatred and flat-out contempt from the left for our president still came as a real surprise to me. rashid talib, newly-elected democrat from michigan used a

gross obscenity calling for impeachment of the p. i'm sure you have seen it all. i forgotten how der ranged and insulting to america the left has come. speaker pelosi says a border wall is immoral but would not condemn miss talib's obscenity. there was economic, pure economic nonsense combined with sheer nastiness from socialist alexandria ocasio-cortez. she really doesn't like successful people who make good money. she wants to nearly double the top tax rate. has she any idea what that would do to our booming economy? does she care? she also labels our president a racist. i came back to an endless stream of hostility to our president. but i also came back to a string of successes for mr. trump. the economy is booming. did you see those job numbers? or the wage gains? trade talks resumed today.

china is hurting. we have leverage. did you see the mortgage rate? down to 4.5%. oh, what a contrast. the reality of prosperity versus the over the top contempt for the president and by extension, for america. i really didn't like it. nothing justifies the jealous rage of the left. and i don't think america likes it either. the second hour of "varney & company" is already underway. look at an example. here is michigan congresswoman, rashid talib, hours after being sworn in last week. roll that tape, please. >> when you're son says to you, mama, look you won, bullies don't win. i said baby, they don't. we'll to in there and teach them all a [bleep] ashley: how lovely. stuart: i came back to that. ashley: welcome home. stuart: dear lord. braid blakeman, former deputy assistant to bush 43. you saw my response. what is yours?

>> visceral hate for the president and they don't understand hating the president is hurting the country. we should be rooting for the president. we should be in a spirit of bipartisanship seeking compromise with divided government but visceral hate for the president compounded with plain stupidity and ignorance of the economy and policy, this is what the democratic party has brought to the table after the midterm elections. it is inmates running the asylum. i think pelosi has no control. this is another revenge for her. it is revenge of pelosi to come back to the speakership and settle old scores. democrats will understand power is fleeting they keep this up because this president has been successful, as you pointed out across the board. foreign policy, military spending and caring for our troops and the economy. this is not what america bargained for. stuart: i think miss pelosi, speaker pelosi, she has a real problem here because all the noise is coming from the far left. they seem to be making the

running within the democrat party. i'm not sure america is prepared to accept and elect someone who represents that extreme left position. what say you? >> there is no doubt about it and the insanity is, the newly-elected congresswoman from brooklyn, cortez, what does she bemoan as soon as she was elected? she doesn't have enough money to live in washington on 174,000 salary. by the way her tax rate is 28%. she wants a 70%, you can't make it on 28% tax rate at 174. you think you can do any better if the tax rates rise? by the way they rise for you as well? this theory of economics that democrats have, if you just send more money, rich people to the government, everything is going to be fine. trump reversed that he is putting more money in our pockets and we're doing just fine. stuart: would you agree with the following, brad, the far left has its supporters, and they will never leave the far left?

mr. trump has his supporters, he has got his base and they're not going to leave him. but the vast majority of the people in the middle, and they don't like what they see? >> they hate it. they hate to see what's going on. and that is going to be the battle. the president has shown, an adult spirit of cooperation when he said look, i'm at 5 billion to secure the border. you're at 1.3. you call it border security. i call it fencing and wall. it is all semantics and garbage. it is nonsense. the shutdown is pure fiction. every government worker is on vacation. they get back pay. they would much rather be at work, but the president, this is read my lips moment. he can't retreat. democrats know it. he could care less if they ever come back because he has to stand on the principle of what he promised. elections have consequences. the president's new slogan, promises made, promises kept. he must keep this promise. stuart: brad blakeman, thanks for being with us on this monday

morning. thank you for being here. see you soon. president trump tweeting about "the new york times" and syria. here is the quote. the failing "new york times" has knowingly written a very inaccurate story of my intentions on syria. no different from my original statements. we i will be leaving at a proper pace while at at the same time continuing to fight isis and doing all else prudent and necessary. more on that with christian whiton later this hour. breaking news from the supreme court right now. justice ruth bader ginsberg is missing oral arguments for personal reasons. the first time since she joined the court back in 1993. ginsberg continues to recuperate from recent cancer surgery. the court says she will participate in the consideration of the cases through written briefs and transcripts. no guidance on when she will return to the bench. is. we have a big hour coming up. day 17 of the government

shutdown. president trump doubled down this weekend. he may declare a national emergency to get the wall built. question, should he? i will ask a former i.c.e. acting director about that. we talked about this plenty on the program. people leaving high-taxed states like new york and california for low-taxed states. we've got the numbers. we'll bring them to you as well. this caught our attention. a player on the new york knicks of turkish descent won't go with the team to play in london. he fears for his safety because turkey's president erdogan, a lunatic. we're on a it. this is the second hour of "varney & company." ♪

stuart: 700 points up on friday. 39 points down in the first 45 minutes this monday morning.

let's get to the government shutdown. the president is floating an idea declaring a national emergency over border security. roll tape. >> many of those people that won't be receiving a paycheck, many of those people agree 100% with what i'm doing but i just saw a poll. 75% said that immigration is still important. >> declare a national emergency, what is the point of having a shut down? >> i may declare a national emergency dependent what will happen over the next few days. stuart: bring in john sanwig, former acting director of i.c.e. john, way this up for us, is this a real possibility, national emergency, get the military to build the wall? >> the president has very broad powers to declare a national emergency. ultimately it would be challenged. obviously the courts would not be that friendly to the president. that is plausible approach. there is money available at department of defense. the president has pretty broad authority, courts are supposed

to give him discretion when he exercises that emergency authority. stuart: as former acting director of i.c.e. would you approve of this getting done. >> honestly no. the approach has to be mixed. there are things the white house is asking for a wall. additional money for health and human services to deal with minor children. axe slewsly essential. there are parts of border where we need fencing no doubt. parts of border we need to replace the fencing. like everything with immigration, politics get in the way. everybody appeases to the base. all of us are losers because we're not getting effective border security because the politics are jamming things up. stuart: is there a compromise, mr. trump says the wall could be a steel barrier instead of solid concrete? is this compromise in the area? >> doesn't look good to me right now, stuart. >> president is stuck at 5 billion-dollar number. democrats are stuck in not

giving him 5 billion. border professionals, i.c.e. professionals, got them in a room, could sketch out a compromise really quickly that would be effective. some fencing, some technology, a lot of immigration judges. a people who process asylum claims. politically doesn't look good, does it? white house is not moving. democrats are not moving either. stuart: john, thanks for joining us. sorry so short. this is busy monday morning in the news business. thank you, john. big weekend in pro football. wild card weekend didn't disappoint, the game between the eagles and bears came down to field goal. the bears kicker missed it, went off the up right and the crossbar. a lot of money waged this weekend. i will talk to vegas, next hour, later this hour, we'll talk to a vegas bookmaker. heavy betting this weekend. let me tell you. ♪

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♪ liz: queen. stuart: oh, yes, queen. i knew it. liz: yes you did. stuart: a little jet lag. we're getting into the golden globes last night. "bohemian rhapsody," queen, they won big. calling this upset. i think it was well-deserved. i saw the movie. i loved it. liz: it was phenomenal the performance was there. golden globes, ratings are down. four-year low. after the golden globes hit a six-year low. despite no competition, solid nfl lead-in with bears-eagles came. they couldn't hold the audience.

12.7. this kicks off the awards season with the oscars as well. the oscars, they still do not have a host for the oscars. it is about a month away. "new york post" write irjohn levine said bring in james woods to host the oscars. stuart: putting cat amongst the pigeons. interesting story about gaming. in britain, let's get straight, in britain, gaming is worth more, brings in more than music and video combined. now that's britain. ashley: in britain worth nearly $5 billion last year. that is double what it was over the last 10 years. it is remarkable. it is really down to three games. that massive amount of money. fif 19 the soccer game. austin plays it all the time. he is playing it right now. red dead redemption two, call of duty black ops 4. these comes, you don't have to physically buy them.

you got digital. you can download the games. absolutely right, more lucrative than video and music combined. stuart: unbelievable. video and music combined less than, my grandson, grandchildren in new zealand and australia, they're glued. liz: grandpa is here. let's hit the games. [laughter]. stuart: ashley: lock the door quick. liz: totally kidding. stuart: okay. i'm american, you know. check the markets. it is very modest loss this monday morning. we're down, what, 40 points on the dow industrials. our next guest says, stocks are going up from here. forget any talk about recession. we'll let him make his case in just a moment. i've been saying it for months. people are leaving high-taxed states, they're going to low-taxed states. now we have numbers to prove it. we'll tell you which city is the top destination for these tax

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♪ stuart: jet lag. really slow. i am really slow. i crossed 18 time zones all of sudden. liz: i didn't know there was that many. stuart: what day is it? ashley: march 29. thank you very much. stuart: check big board. very modest loss after one hour worth of business.

23,000, 400. big tech names, a few minutes ago they were all down. same story, facebook, apple, alphabet, microsoft, all of them, down, just a little. amazon is a winner, up 28 bucks. it is back above $1600 a share. show me pg&e. that is the california utility company considering filing for bankruptcy protection. down it goes 21% for a company that size, that is an ouch if i ever i saw one. still on your money. phil orlando, federated investors chief market equity strategist. >> thanks for having me back. stuart: you're positive for 2019? you think stocks are going up from here? make your case. >> absolutely. so the correction we've seen, 20%, in the last four months, last year, in our view was largely function of toxic sentiment. the underlying fundamentals are pretty good. let's take a look at last friday.

the jobs report was phenomenal across the board, gain of more than 300,000 jobs. 60,000 positive revisions. wage growth as strong as decade. all of that is good. christmas sales up 5%. best christmas in about five or six years. the underlying fundamentals for the market are pretty good we think. stuart: okay. >> toxic sentiment, concerns what the fed is doing. how is china trade tariff going to play out, that is what we believe contributed to decline in stocks. as we roll into 2019 we think that sentiment shifts to fundamentals. over the next 12 months, we think stocks rise higher. stuart: is the china trade story that important? today we have midlevel meetings in beijing, our guys have gone over there, midlevel meetings. we're told a top level chinese negotiator joined the talks. mildly positive? >> the deadline is march 1st. we believe that we will have a

positive movement on march 1st. there are two issues to focus on. the united states is running a 600 billion-dollar balance of trade deficit on annualized basis. that is costing us 3g dp growth points. china is stealing our intellectual property. they know it. we know it. it has been a open secret. this issue is trying to get them to buy more stuff from us. to manage lower, narrow the trade deficit and get them to stop stealing our intellectual property. the issue here because china's economy slowed, because their stock market is down 30%, they're at a point i think they're willing to negotiate. i think as we roll into march 1st we will have something better than what we've had in past years. stuart: all this is positive stuff but one big positive would be profits and the reporting of profits which starts next week. now, we've had what, a 25% gain in profits over -- >> first three quarters of this

year. stuart: first three quarters of the year, 2018. >> right. stuart: you're not going to keep that up. but are profits going to keep on going up some? >> that pace is unsustainable. fourth quarter earnings which we're probably going to see start middle of next week, probably going to be up low double digits, maybe 10, 15% neighborhood. the bigger issue will be guidance. will companies executives point to china, point to a higher interest rates, whatever, decelerating manufacturing activity as a means for bringing guidance in. as we look out over the course of the next year, we're estimating $170 in corporate earnings for the s&p. that is about 6% increase over what we think we'll do this year, of $160. stuart: could we get five, 6%, gain for stocks overall in 2019? >> i think we can do better than that. stuart: better? >> the reason price earnings ratios last year contracted by four full multiple points, from 18 to 14. we think that contraction will

reverse itself over the course of the next year. the reason being core inflation right now is sitting at 1.9%. treasury yields at 2.6%. a 14 multiple is inappropriately low. we believe an 18 multiple is the appropriate price to value stocks given where inflation and interest rates are. stuart: phil orlando, federated investors, we like to hear that. stocks going up some more. good stuff. by the way, the dow turned positive. we're up 14 points. phil, thank you. >> thank you. stuart: look at this, please, tax exodus from high-taxed mainly blue states, it continues. new census data shows over course of a year new york lost what about, 48,000 residents. illinois's population declined by more than 45,000. paul chabot. president and ceo of conservative move. paul, you help people move from blue states basically to red states. which state is the one that is

losing most people? >> so when you look at the overall numbers california is by far losing the most. not only people but businesses. california lost about a half million people in the last eight years. they have lost about 13,000 businesses in the last four years. but you look at illinois, look at new york, new jersey, most of these blue states are losing populations. and they are coming to red states. texas, and florida, idaho, utah. stuart: did you say over last eight years, california has lost a half million people? >> yeah. half million people. now here's what's interesting, when you look at that california will say, look our numbers are sort of stable. well, that is not actually the case. they have a huge illegal immigration problem. about a million illegals in los angeles. maybe three plus million throughout the state. so you have many more people leaving the state than you do moving in. you can look at the moving company numbers, put out yearly reports where they're coming

from and moving from. rent a u-haul coming out of california it will cost you a lot more than u-haul going in. supply and demand is also telling a significant story. stuart: wow. can you pick out a city which is gaining more people than any other? >> we can pick out regions, for example. the dallas-ft. worth north texas where we relocated to, have our headquarters. many fortune 500 companies across the company leaving blue states. for example, number six, fortune 500, pharmaceutical company announced a few weeks ago, closing up the headquarters in san francisco, moving it here to irving, texas. toyota moved north america headquarters out of florida to north texas. north texas is a magnet for a lot of fortune 500 companies. with them come families. you have two migrations happening. on the corporate level and middle class family level especially after the last

election. stuart: i think things get worse because top income earners in those high-taxed states take a real hit this year, in the next couple months from the tax deal we got from president trump. they're going to take a hit. i think this exodus gets worse, would you agree with that? >> it is, it is already happening. most of our clients, 90% of them come from california. most of them are conservatives living along the coastal regions. looking at their property values, well above a million dollars. sell it now, buy cash in idaho, texas, florida, half what they paid in california. they're getting better schools, better work environment, lower crime. not homelessness issue and encampments. it's a much different paradigm. they're fleeing. literally refugees from blue states to red states. it is absolutely an uptick across this country. stuart: paul chabot with the numbers. >> thank you, sir. stuart: breaking news. big names in the financial

industry like morgan stanley and fidelity. they're planning to launch, what is it a low cost stock exchange? tell me more. ashley: members exchange it is called the memx. they want low costs. they believe it is too much on the new york stock exchange and nasdaq. the way they believe to beat them is form their own exchange charging lower fees. you mentioned names, morgan stanley, fidelity. bank of america, merrill lynch, ubs. e-trade, ameritrade, all getting together, big names. getting involved now. the question when does this get online? they probably put on application now. could take a year to get property authority. you're looking probably 2020 before the thing comes online. a shot across the bow at the new york stock exchange and nasdaq. stuart: here we come, buys. ashley: yep. stuart: thank you, ash. ashley: sure. stuart: trade talks between u.s. and china underway in beijing. next hour we'll talk to someone

who is making a bold, a very bold prediction. he says president xi of china will make a surprise appearance at davos with president trump and announce a trade deal. he is on the show. he will make his case. this show, today. one new york knicks player refusing to go to london. he is of turkish descent. he is is scared for his life. he said turkey's president erdogan is a lunatic. we have the story for you and that's next. ♪

♪ ashley: earlier today maria bartiromo sat down with the alpha one capital partners founder daniel niles, who told her apple is focusing on the wrong things. take a look. >> the real issue in my mind is the following, if you look at this year, they're trying to sell two tones above $1000. their average asps are up over 110%. >> average selling price. >> average selling price, yes. wow, that is lot to push into a market when you've got china whose average gdp per person is sitting 10,000, india 2000. that contrasts to the u.s. over 60,000. how are you going to sell ever more expensive phones to a emerging markets?

♪

stuart: moving up a little bit more. we're up 70, 80 points moving quite rapidly last couple minutes. 23,500. now we're up 90. i'm not aware of anything significant that just happened but, maybe something did because we're up 80, 23,500. that's where we are.

national security advisor john bolton says the u.s. pullout from syria is conditional. it depends on assurances that turkey will protect america's kurdish allies and that we totally destroy isis. come in, christian whiton, former state department senior advisor. christian, is john bolton contradicting the president on pulling out of syria? >> you know i think this is a case where the media, this report stems largely from a "new york times" report that the president has specifically said is not true. basically what john said is that the turks should not intervene against the kurds in syria without consulting with us, their treaty ally through nato. that has been sort of reported as, we're giving assurance we'll not leave syria without assurance for the kurds, basically a huge additional commitment a change of mission a classic definition of mission creep but might actually not be true. stuart: just a chronic mess, that whole region.

should we be there at all? >> we shouldn't in the sense should not be in syria. trump is absolutely right. we went there to kill isis. isis is a dead as an entity that can hold territory, put military in the field. mission accomplished for real this time. we should have interests there and still seek to influence them. one thing we've never done, no president, no president trump, president obama, no congress said it is in our interests in our policy to create another kurdistan inside syria like one we help the create in the iraq. the defense industrial complex, national security complex wants to do. people in this town don't know how to end wars. the last one we ended clearly and successfully was in 1991. stuart: the idea from "the new york times" we would pull out unilaterally, et cetera, et cetera, that put cat amongst the pigeons for our allies, didn't it? >> it did. trump has been very clear all along, he was there not to donation building.

it shouldn't be a surprised. shouldn't be surprise when he fulfills his campaign promises. this will spill over to afghanistan. he made it pretty clear he is giving generals some slack, we'll not accomplish in a year or two we haven't in the last 18 years. it will be enormously popular political move to get us out of syria and afghanistan. stuart: got it. you have more on the new york knicks player who will not attend the time's game in london because he fears for his safety. eric kantor, native the turkey, outspoken critic of erdogan. here is what he shade about the trip. roll tape, please. >> going to london, spoke to the front office. i'm not going because of of that freaking lunatic as president. there is chance i could get killed out there. that is why i talked to the front office. i'm not going. because i'm going to stay here, just practice here. stuart: christian, he fears for his life just by going to london. is he on to something here? is that a legitimate fear?

>> you know of course only he can determine his own security needs. someone with his resources could provide protection. it's a mixed bag. erdogan, the turkish strong man is a thug and has plenty of thugs on his payroll. he has a ton of people locked up in turkey that are political prisoners, including a lot of reporters. i don't know of any reports that turks conducting assassinations in london for example. a reminder not all good in turkey but he may be a little bit overly cautious. stuart: extraordinary how international situation can impose on thought. who would have thought? christian, thanks for joining us, sir. see you soon. >> thank you, stuart. stuart: programing note for you, neil cavuto will talk to billionaire activist invest carl icahn. big lineup on fox business. liz claman hosts her show tomorrow from the consumer electronics show from vegas. talking to executives from gopro, samsung, lg.

you get it all here on fox business. more "varney" after this. ♪ i'm ken jacobus and i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

stuart: i'm going to call this a

fairly solid rally. we're up 80 points, 23,500. please remember, we were up 700 friday. up another 80 as of right now. let's get to sports. you may have seen this. the play of the weekend. chicago bears kicker cody parkey. missed potential game-winning field goal, lost to the eagles by one point. poor guy. shocking. we have south point hotel casino betting pie. all right, jimmy. the betting this weekend. what a weekend it was. that missed field goal was big for betters. i don't gnat it,. tell me why it was so big that missed field goal. >> first of all, thank you for having me on again. it has been a while. football is getting bigger and bigger. unbelievable handle was on the charger game because of proximity of people driving in from california to bet on their team to win. we have two of them.

chargers and rams. getting back to the bear game, everything that was live meaning, everybody who bet the bears in their became, teasers, parlays came down to the last play. it was unbelievable turn around the amount of money which won as opposed to what we would have lost. stuart: because he missed the field goal, i think it hit the up right and crossbar and missed. because of that you, the bookie, if i can call you that, you made a ton of money, and betters lost. i've got to explain that again. i don't know haw that works. >> first of all, charlie, when we have these options to play anymore. you can bet with the point spread. a money line, picking just a winner of the game. obviously the bigger odds, the bigger, more amount you must pay. in this case, with everything live to the bears, just to win the game. meant to so much to us, when they hit the crossbar, they hit

the jackpot. stuart: okay. now you say that next weekend is going to be even bigger for you guys in vegas. explain yourself, please. >> first of all, football just, all encompassing anymore. everybody wants to be a part of it, naturally with legalized gam gambling, next week for west coast bookmakers we have two california teams playing. we have the rams, who obviously are there playing, america's team, dallas cowboys. we have the all-time favorite patriots, invaded by the new guy the san diego chargers. it will dwarf what we did last week, trust me, my friend. stuart: you're expecting a lot of people in california, drive over the state line, come to nevada to bet on the game in vegas? that is your whole ball of wax here, isn't it? >> no doubt about it. last time they had driven in 90, 91 when the chargers were in super bowl. that will make this look like

high school football game. buckle up if you're on the east coast and buckle up if you're on the west coast. stuart: jimmy have car row, thanks for joining us. actor kevin spacey arriving at a nantucket court for and a rainment on his sexual case -- arraignment. that is small courtroom on the island of nantucket, off the coast of massachusetts. he is being arraigned as we speak. we thought we would bring you that. it is happening right now. dow industrials up, what, 88 points as we speak, 23,500. modest rally. elon musk, breaks ground on huge factory in, shanghai. liz: huge factory to make cars for the china market. modell 3. this is big move by tesla to get into the china.

china commands 35% of share of all globally electric vehicles. chinese government is big on the factory. tesla stock is well into the green on the news. so, what's lay of the land going forward? china wants 1/5 of all its vehicle sales to be electric by 2025. so ses la is getting in on the ground floor. stuart: if you can build enough of them. liz: if you can build enough. stuart: that is a big deal. first full week of 2019, we're in it. we're buy and large a financial program. dabble in politics a little every now and again. we do follow the money. that is what we do. there is different feeling in air this year. it is called prosperity. my take on that, top of the hour. ♪

..

stuart: this is a financial program. we follow money. so now, as we begin a new year, where do we stand? in my opinion, the outlook has just improved and improved a lot from where we were just a couple months ago. right before christmas, there were forecasts of a recession in 2019. that is changed. there may be some outliers you still predict doom, but after the new gear -- the news on jobs and wages, it looks clear for more growth. the trump growth program is still working. inflation, what inflation? the gas prices falling every time he fell out. it's hard to see an inflation problem. because of that, interest rates seem to be in check. the federal reserve doesn't want to upset the apple cart with rapid rate hikes and you can get now a 30 year fixed-rate mortgage for 4.5%, which is historically very low. it might go even lower.

the news here is that america has real leverage with china. their economy is hurting. ours is not. here's the hammer that the president is using to pressure beijing. our guys are over there now. china's top trade official will attend those meetings. we have someone this hour who says china's president will make an appearance with president trump at the topmost get-together this month. that will be big news. politics, that's as nasty as ever. the government shut down, obscenity calls for impeachment, but all this has little or no impact on the economy. we are prosperous despite our intense political division. so here we begin the first full week of 2019. there's a different feeling in the air. it feeling of prosperity. don't let the left divert attention with the economy. the president has done what he said he would do. your money is looking good in

the third hour of "varney & company" is about to begin. ♪ stuart: well, you heard what i had to save a little editorial there. reagan john lonski, moody's managing director and chief capital market economist. are you going to back me up on this, interchange of ideas about where were going? >> i'm going to back you up in part because i think holiday sales were stronger than anticipated in one of the reasons for the strength of holiday spending was praising restraint on the part of businesses, retailers are not brought consumers out. 4% real consumer spending growth in the final quarter of 2018. real growth for consumer spending. gdp will be held back the other factors, but real contact cares -- growing by 7%, payrolls expanding and looking at a very

strong month for personal income in december. we're not going to have a recession anytime soon. stuart: there are few economists, especially in the liberal press saying 2019 looks like a recession or a serious downturn. >> mostly because of heightened stock market volatility to drop the stock price has come a jump in corporate bond yields, that type of thing. this has happened in the past is a recently as 2015, 2016 and a recession occur? >> no. stuart: a lot of people are deciding where to put their retirement money. they've got a 401(k) that can decide more money in stocks or more money in bonds. i know you're not a market analyst, but bearing in mind your economic forecast, would you say people would be okay leaving most of their retirement money in stocks? >> yes. yes i would. i would become hesitant about the equity market.

perhaps you take money out of the equity market if i thought profitability was going to contract. i don't see that happening. stuart: what about the government shut down? any impact on the economy that should worry investors. >> i don't think so. we have to be prepared to slow down with consumer spending because of delays and the federal government in tax refunds. on top of that we have a lot of upper income americans veterans were shot in the thigh and contact states who are no longer going to be able to be deducting state and local taxes. stuart: the one presenters who lived in california, new york and new jersey, et cetera, they don't get the refunds this year. >> that not going to happen this year that could create problems as far as ending on luxury goods.

so no problem with the economy in 2019. >> were going to keep growing. payroll to keep expanding beside the unemployment rate. one of the big surprises in 2019 might be the fact the unemployment rate goes down to something under 3.5% perhaps. 3.9% now and at the same time we don't see any measurable increase by inflation risk. stuart: kudos to you because you've been on the show the last year, year and a half but you consistently said the economy is going to do well and you have been right. >> moreover i said higher interest rates are not going to last right now we have the 10 year treasury under two by 7%. that's great for consumer spending. that's good for housing. the index of housing or stock prices is up by 4%. stuart: john lonski, you're all right. >> my pleasure.

stuart: check the big board by the way. modest rally. 92 points up now. were back about 23,500. take a look at amazon versus microsoft. amazon just past microsoft to become the most valuable company by market cap. amazon is up 14% in the past two weeks. call that a rally. look at apple. "the wall street journal" "wall street journal" says there's weak demand for the iphone exar, which is the cheapest of his three iphone releases. the stock is down to 147. scott martin is with us, kingsfield asset-management cio. apple at 147. did you expect it to come down that low? >> as an owner of the stock definitely not. here is the good news about apple. some of the bad news out there is getting into the stock, meaning at some point valuations on this name are tracked.

it's roughly 12 times earnings at this point right now. we thought tim cook comment on the massive cash pile they have. we see an increase in the services revenue over the last several years that apple has here that's encouraging. the company has to move on from just the iphone to other areas of growth. they have to do that possibly bite picking up another name, another company to augment the service. stuart: what about a stock buyback? could that the increased worker to kick in now at 146. >> they do have that. like ibm which have been a disaster. they've increased the dividend over the years which has been attractive. you know, these days especially where apple is right now as you laid out the trouble they're having with the iphone sales, they need to do something bigger, more bold in the stocks.

so using the cash to pick up another company, and other strategic partner would be much more valuable long-term to stockholders than buying back a few other shares. >> the apple stock that you and your company on. >> we are still encouraged by the growth in revenue overall. i believe tim cook as they come into moment here. he realizes they have to do going forward so were willing to give them another shot. time is running out. stuart: how long will you give it? >> just about this year. depending on what happens with the quarterly report, towards the end of this month and next month, give it a couple more quarterly reports and we'll see what the aspirations are. if things don't clear up for the stock of history for us. stuart: i understand you because it down close to $100 a share

from its high late last year. that's an astonishing decline for a company like apple. thank you for being honest with us. we appreciate that. thank you very much. lowe's, the home-improvement people have climbed aboard and 65,000 workers this year. most of these new positions will be seasonal, though. 10,000 of the jobs will be per minute. a low stock is up two bucks on that news. ninety-five dollars per share. where is oil this morning? it's back to $49 a barrel. we are up $1.60. 3.5% gain. however, this raise the gasoline keeps on falling. the new national average. we will take it ladies and gentlemen. about $1.82 in missouri. supreme court justice ruth bader ginsburg missing oral arguments today. the first time in more than 25 years that she's missed them.

the court says she's working from home while recovering from cancer surgery. president trump said he may declare a national emergency to build a border wall. the president tweeting about it today and here it is. congressman adam smith, the new chair of the house armed services committee gestated yes there is a provision in law that says a president can declare an emergency has been done a number of times. no doubt, but let's get our deal done in congress. the wall for you. senator elizabeth warren tries to defend her recent dna tests during one of her five campaign stops in iowa over the weekend. that is what she said. the third hour of "varney" just getting started. great news, liberty mutual customizes- uh uh - i deliver the news around here.

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stuart: in france come a yellow bass demonstrations continued over the weekend and they turn violent. protesters attacked a government ministry building. 50,000 people took part nationwide. 3000 in paris salon. his protest started late last year over the country's gas tax, but they have morphed to essentially revolutionary movement. during the protest of former professional boxer kristof -- they were seen throwing punches at police. you can see him right there. he was later detained. violence in paris. this week marks one month since china detained those two canadian citizens after they arrested the huawei executive. david maroney is with us, former canadian ambassador to china. mr. ambassador, the two that were detained a month ago, what kind of conditions are they being held in?

>> well, from what we know from testimony from other detainees they are being held in ridley country locations and they are subject to lengthy interrogations at odd hours by chinese officials whose object it is to really break their spirit. how does that go down with canadian authorities? >> on the one hand we've had pretty resolute commentary from our foreign minister christy freeland and that is in turn generated really welcomed comments from a number of other government including u.s. government. unfortunately not everyone seems to have got the message that a parliamentary delegation in china that started off delivering talking points stating that they didn't want to let disputes harm what is a really fundamentally good relationship. if this is a fundamentally good relationship what it's about, quite. stuart: american officials are in china this week.

i believe the trade talks of already started. it was a mid-level group of people going over there. but they were joined unexpectedly by a high-level trade negotiator for china. is there any significance to that? >> well, it's always encouraging that they bring in their top person. but the chinese also like to do things like that to keep you optimistic and to keep you happy and they like to create the sense that if you play ball with them you could have more access to people like that. so while it's encouraging, and the americans rightly staying focused on the issues at hand. stuart: a deadline of march 1st to get it on both sides. you can tell me to march 1st deadline? >> if you're simply looking at what's happening in progress today, looks very good. the fact they were eager to get the americans back early in the new year. they've got a delegation focused

on subject matter experts. that's all very positive. really for the united states, the key issue is whether any have a division within the united states, where people want to get a deal done. it will calm the market, reassure american exporters and we'll sort it be where we've always been. every couple of years the united states does another deal with china, calm everybody down and the problem is kicked down the road. another more radical idea associated with ustr ocasio-cortez. we are not simply taking that down the road and seeing the level to support american business. that's a tall order. stuart: really. you really think china would agree to systemic change within its own culture, its own economy to get a deal with america? that seems like a stretch to me.

how about you? >> it is anathema to the chinese. where they have some leverage this time as a trade war is hurting and it's coming at a time when the chinese economy is not strong. consumer confidence is down because china is dragging along this and inefficient state enterprises. anything they do to stimulate the economy ends up going into these very unproductive areas of the chinese industrial state. so they are vulnerable and are probably more willing to listen now than they have in the past. stuart: mr. ambassador, always a pleasure we thank you for bringing her knowledge to the table this morning. here's her recheck different markets. bitcoin down to $4000 a coin. where was before it went away. gold has a movement up to $12.80 per ounce.

not sure whether that's a record the last six months, but it certainly gone up in the last couple of months. ford motor company recalling a million vehicles because of toccata airbags. ford says metal inflators within the airbags contain chemicals that could explode with excessive force. ford stock up 1.6%. eight dollars a share. elon musk breaking ground in a pickle factory in shanghai. tesla's first factory outside the u.s. the market likes it. tesla's stock is up 16 backs. check this out. the world's largest i.c.e. festival underway in china. first of all more than 2000 snowmen. the world's largest i.c.e. sculpture in all kinds of light shows. 10,000 workers cut holes in blocks of i.c.e. to cut those sculptures. that's china today. we'll be right back. ♪

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leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. stuart: a new app could change the way we react to earthquakes called shake alert l.a. just a few seconds warning when significant shaking tarts

nearby. uses a little bit of time to get to a safe place. don't get alerts for earthquakes and aftershocks if they are greater a 5.0 magnitude. ashley: how long are we talking, like a half hour? stuart: no come a couple of seconds. a few new robots. meet kiki created by so tech eight i. looks like a cat designed as a stationary desktop robot, which just wants to be petted. check this one. it is called designed to support the lower body to reduce stress from lifting and bending. that one was created by lg, korean company. honda are going to show up unmanned atv. a rugged self driving car but a miniature version design to tackle hazardous terrain in to help firefighters and rescue workers. that's from honda.

norway. the number of electric cars sold. 41% were electric. norway aims to have all cars emission free by 2025. the hostility towards president trump. no sign of letting up. democrat congresswoman from michigan not apologizing for her obscene comments about the president. speaker pelosi is still hasn't condemned her for it. we are following your money of course coming up we have a guest who's making a very big prediction. he says xi jinping, chinese leader could join president trump on stage atop those to announce a major trade deal. that is quite a forecast, isn't it? you're going to hear it right here. ♪

stuart: holding onto a modest rally this monday morning. 83 points up for the dow and the majority of the dow 30 stocks are in the green. well, our next guest came to us with what was very bold prediction. he says china's president xi jinping will make a surprise

visit to dallas this month where he'll appear on page with president trump and announced they trade deal. that's a bold prediction. the dean of the miami business school made that prediction. john, are you walking it back? >> i'm not walking it back entirely, stuart. i think it's absolutely essential these two leaders come together and resolve like candy if it's not resolved a tremendous threat to the global economy. i'm not sure that they're going to be far enough along to justify both of them appearing on stage. i believe a lot more progress is being made a lot quicker than were being led to believe. behind the scenes a lot of good things are happening. >> president trump is going to be a topmost and is taking on most all of his senior officials, there are going with him. do you know for a fact that xi jinping is going as well?

>> no. the sources that i have been china would indicate that he is not going. but let's look at the scenario we are facing. both of these leaders need economic growth. both of these leaders are facing economic uncertainty. this is the most important bilateral relationship in the world. it is essential that this trade.not escalate further otherwise the impact on the global economy will be extremely negative as we all understand. i would love to see enough progress be made within the next 2.5 weeks for there to be some sort of announcement or an interim resolution and god knows, whether it is at the level of the two presidents. i'm not sure that there will be enough ready to announce at that point. but i do believe that there will

be some announcement either by our president or jointly by bob lighthizer and ustr. it's too important to drag on unresolved even until march the first, which is the deadline the president has said. stuart: what you think would be the impact on america's stock market if there was a complete break. no meeting between xi jinping and the president. no new trade deal. march 1st arrives, nothings happening. what happens to the market if that's the case on march 1st? >> i think it will be highly negative. this is essential to be resolved. it'll be negative first of all because the 10% tariff will kick in automatically to become a 25%

tariff. if that happens, and there will be a further escalation obviously on the chinese side. and although we as the united states will run out of chinese goods, the chinese will run out of american good, then we'll run out of chinese goods to tariff. the impact of this war on global supply chain on the investment climate, the uncertainty associated with where one showed us the business invest internationally because you don't know where the terrorists are going to end up. all of this is going to stymie the global economy and have a very negative impact on the stock market. this march 1st date is absolutely imperative that there be an announcement at that time and preferably announcement that

rolls back some of the tariffs, at least some of the tariffs, but also addresses the intellectual property recognition issue, takes the heat off of the american companies and other international companies in terms of technology transfer in return to market access for china and perhaps even also puts forward a roadmap that would help to resolve and set a level playing field for reciprocal investment between the two countries. we do need to make this happen, stuart. stuart: but whether it happens or not, we simply don't know at this point. all eyes on downloads. we'll see what happens there. quelsh, come back soon. want to hear what you have to say about china trade. >> thank you very much, stuart. politics at home.

congresswoman from michigan rashida tlab used in obscene remark while calling for the impeachment of president trump. now listen how president trump responded to it. roll tape. >> i think she dishonored herself and i think she dishonored her family. using language like that in front of her son and whoever else was fair, i thought that was a great dishonor to her into her family. i thought it was highly disrespectful to the united states of america. drink your alley stock as it does come a host of the podcast relatable. do you think president trump -- i think that remark gusting, do you think president trump won this battle? >> probably so. it was really good of president trump not to strike that. usually has a counterpuncher and tries to get nastier than his opponent. you don't dishonored the country. really didn't make it about him.

if he could do that bar often he would do more battles. >> i think the left of the democratic party is running the party. if you see nancy pelosi is now not considered left of the party, she's acquiescing to them when she was asking about the specific statement. she said criticism of this is sexist. i wouldn't have said it, but it's okay. even the decorum that they said they had is being thrown to the wayside because of the way he treated president trump. stuart: when you make a president -- elizabeth warren who spent the weekend and i'll appear she made five there and made a point of saying she was not a person of color. but color. that bears in mind her statement she was a native american and that was from some time ago. >> she's much better in this

position. as you know she did the instagram live, drinking the beer, trying to be a ocasio-cortez. she's just as relatable as hillary clinton is. she is much better on the stump. i'm not a person of color. of course she's not. she's white. i'm not sure she's going to dig herself out. stuart: how about alexandria ocasio-cortez saying she wants a tax rate is 70% to pay for green agenda. it's simply astronomical. >> she wants to use the example would make around $10 million a

year. in the same 60 minutes. she said she wants to treat america like sweden. sweden is very a flat tax rate. 59.6% at the top tax rate that applies to people who make only 1.5 times the median income. so that is around 50,000 to 60,000 in american dollars. in order for her to pay for this deal set to cost also the middle class. stuart: why are we only hearing from the far left? they seem to dominate the conversation. they are also pretty bowling. enough to see that millennial star about to take over the democratic party and millennial's are far more than mainstream establishment democrat.

in order to get the vote of the far left millennial they have to play to the hyper progressive hyper social is far less. we see a collision of worldviews than collision of policies. stuart: somehow i don't think they're going to get your vote. bash is to buy gas. >> i think that's a good jazz. thank you for joining us. we appreciate it. >> thank you very much. stuart: take a look at the big . a new report says it is in talks to a jet leasing unit to private enterprise company, private equity company apollo could be worth up to $40 billion pge stock is up nearly 4% on that

news. mattel is a toy company with the boy band bts. they will create dolls, collectibles and more. the market loves that. is that such a big deal, really? a percent but to deal with the south korean boy band. stuart: never underestimate the power. stuart: don't call the beatles the boy band. liz: the beatles are a boy band. stuart: president trump said he may declare a national emergency to get money to build the wall. up next, we'll talk to someone who's on the front line of the border debate. i want to know, is it really an emergency on the ground? a newspaper begging bernie sanders not to run for president again. why the editorial board is calling for him to sit on the sidelines in 2020. we have that story, too. ♪

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the day after chemo and is used by most patients today. neulasta is for certain cancer patients receiving strong chemotherapy. do not take neulasta if you're allergic to it or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems, allergic reactions, kidney injuries and capillary leak syndrome have occurred. report abdominal or shoulder tip pain, trouble breathing or allergic reactions to your doctor right away. in patients with sickle cell disorders, serious, sometimes fatal crises can occur. the most common side effect is bone and muscle ache. ask your doctor about neulasta onpro. pay no more than $5 per dose with copay card. ashley: national security adviser john bolton said the u.s. pull out from serious. former state department dinner by sir trying to bring the troops home. take a listen.

>> the turks should not intervene without consulting with us their treaty allies through nato. that has been reported as we are giving an assurance or will not leave syria without an assurance for the kurds basically a huge additional commitment, change of mission, classic definition but it might not actually be true. i think trump is absolutely right. we went there to kill iss and isis is dad and put the military in the field of mission accomplished for real this time and bring the troops home.

stuart: california's incoming governor will introduce a bill to give families a month of paid leave after the birth of a child. gavin newsom is the new guy will make a proposal with his budget. the state legislature would have to approve paying for it. they probably would. back to the continuing shutdown. president trump floating the idea declared a national emergency over border security to get the money to build a border wall. the cruise with us in new york city itself. n. judd, president of the national border patrol council. >> i've got some business here but i'll be back on the border don't worry.

stuart: the state of emergency make the case that there really is an emergency of the border. >> if you look at 2014, democrats were touting how the border was sent to care how we have these children coming across the border. they painted this crisis. right now we see things even worse than not. the first two months of this fiscal year were about to shatter the numbers of illegal border crosshairs so absolutely were in an emergency situation and we are not just doing with unaccompanied minors. we are dealing with people from other countries such as people from bangladesh, china and places that just weren't as much as in-your-face as what it is right now. >> can you give me any numbers? if you look at the first two months of this fiscal year, we

are run pace to arrest 800,000 people. stuart: and two months. >> by the end of the fiscal year if we continue down this road will arrest close to 800,000 people for the year. in the obama administration the most we arrested was 530,000. so we are on pace. if you arrest 800,000, what does that mean for the overall numbers of people? >> i don't want to sound like we don't do a good job because we do a very good job. the problem is the cartel's flood us in sewer for arresting 800,000 people, there's about 800,000 people getting away. stuart: the president is talking about it doesn't have to be sort

of a compromise in the air here. doesn't have to be a solid concrete all along the border, steel fence he's talked about as well. would that work? >> it would. this is what i like about the president as he's listening to people. he came in as he was campaigning. he had a mindset of what he needed to do, and that since then he's listening to the experts and this is actually working. the fencing with the sheer top works reinforced through these steel tubes. if you look at the old landing mount, that didn't work. he's replacing with these concrete walls. since that time this has worked and why it's worked in he's going with that. this is the thing that i like about a businessman in the white house. he's bringing that perspective to the white house instead of

just sticking with the same political lines that we've seen all along. i appreciate he's reaching out to the experts informing him what's needed. stuart: ali of our audience with this. on pace to arrest 800,000 illegal crosshairs of our southern border this fiscal year. 800,000 people. thank you for being with us this morning. see you soon. i've got some breaking news here. kim jong -- i'm sorry, president of the world bank announcing his going to resign on february 1st. you will join the fun focus on infrastructure investment. we thought we'd tell you that. the newspaper begging bernie sanders not to run for president. the editorial board is criticizing say end quote, we fear a sanders run risks

dividing the well fractured democratic party and could lead to another split in the 2020 presidential vote. there was too much chat state to take that gamble. los angeles is suing the weather channel. the city accuses that is selling the private data of its mobile app users. the judge will weigh in on that one after this. i knew about the tremors.

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stuart: the city -- i started too soon. the city of los angeles accusing the weather channel top of improperly mining data from users and handing it over to advertisers and hedge funds. judge napolitano is here. the host of the liberty file on fox nation. good stuff outside of that. so who is filing this suit? why is it the government? is it legal? >> well, i'm it is legal for the weather channel have to review the location.

if they consented to it. if they have not consented to it than there is a violation of privacy rates. the lawsuit not brought by plaintiffs lawyers, but by the city attorney for the city of los angeles were according to his city attorney, thousands and thousands of angelenos have had their rights violated. some people would say i don't care. in fact, if they know where i am , i'm going to get a customized weather forecasts. tell me what the weather is where i am. other people like you or me it's none of their business where i yam and i don't want them to be a little track me without my express consent. that's what it's all about. a judge will decide that they violate privacy rights and if so what is the remedy. these things never get that far.

it goes down and then it comes back in a few years. stuart: now wait a second. >> i don't want to make light of it, that there really is a final decision involving big tack. stuart: ruth bader ginsburg supreme court justice hearing arguments at home. she's recovering from cancer surgery. the significance of this? >> conservatives hope that justice ginsburg will leave the court while donald trump is still in the white house. luscious cut through the fog. the liberals of donald trump will be succeeded in justice ginsburg by like-minded person. she is criticized by some of the liberals because they begged her to leave while barack obama was in the white house not knowing who was going to replace them in the white house. she reads the transcript of the moral argument. can she rule on a case where

she's not in the courtroom? absolutely. so she could continue to work from her bed in her home for her study in her home for the duration -- the duration of her time on the court if she chooses. stuart: which is forever or until she passes. >> she claims she's going to serve the full term. i had a lifetime appointment. i obviously did not serve the full terms since i'm not caring very much alive. stuart: i'm glad you're back with us and i'm glad i'm with you, too. thank you very much. there will be more "varney" after this. ♪

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stuart: breaking news. president trump will travel to our southern border on thursday, according to the tweet from sarah huckabee sanders. she says the president, will quote, meet with those on the front line for national security and humanitarian crisis. i don't think that affected the market but we are up nearly 200 points. that is what i will give you, neil. it's yours. neil: i'm greatful for that, stuart, thank you very, very much. we're following market in and out of session highs. a lot could be optimism about trade. we're monitor that. much i was grasping at other potential straws. service sector growth slowest pace we've seen going back since july. still sign of an expanding services sector economy. we're seeing a bit after slowdown in manufacturing economy. both continue to expand, i should macen to add. this latest one seems to buoy the argument, pace of increases, slowing a tad, federal reserve would be less inclined to raise interest rates, oring a