tv Varney Company FOX Business January 18, 2019 9:00am-12:00pm EST
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the democratic party. it is -- it's the republican party versus socialist party and i'm sad to say it. >> it's going to be a big field. >> huge. huge they all want this big office and i think trump is going to hold on to it. >> all right we'll leave it there matt, dagen always a pleasure. good it see you this morning lindsay have a good morning everybody. stuart is off today charles take it away. >> thank you very much maria good morning everyone i'm charles payne in for stewart we have two real big tech companies that you know in the news right now both are down and start with tesla journal reporting that elon musk cutting 7% of his work force he wants to cut costs. also offer model 3 at cheaper prices. the initial move right now the the stock is down on that news. also, well, so far mixed netflix they missed revenue but all of the other things were fantastic including the earnings which company brought in 4 million or for the convert and even e no they have nearly 9 million
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subscribers stock is higher after being up 50% in three weeks we're all over both of the stories overall market is shrugging off headwinds this shutdown because in part the optimism over a trade are deal. we know that administration debunked it but wall street think thing thing is happening market will open higher again today and ave be ig show for you bob will join us talk about markets and the economy. he's bullish, kellyanne conway she's here as well a lot to deal with on trade the shutdown so much with her. buckle up "varney & company," we're about to begin. ♪ >> starting with the shutdown white house canceling its dell us gays trip secretary mnuchin ross pompeo acosta supposed to go and president cancels speaker pelosi trip overseas give us details there. >> what they call one upmanship at its the most and meaning on
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capitol hill yesterday. so on capitol hill you saw this bus load of congressional leaders they're awaiting nancy pelosi house speaker as they were set to femme bark on their secret trip to afghanistan with a stop in brussels in between they were going to use military aircraft and, of course, that at the prerogative of the u.s. president. he decides whether or not you can use that plane so at the last minute with just about an hour to go before they were set to december plane on this trip, they got a letter. here's let's show you what was in this letter coming from the u.s.es president to the white house. he says in light of the hundred thousand great american workers not receiving pay, i'm sure you would agree that postponing public relation event is totally appropriate. i also feel that during this period, it would be better if you were in washington, d.c. negotiating with me, obviously, if you would like to make your journey by flying commercial that would be certainly see your prerogative as well. and a, of course, this is some
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would say in retaliation or in response to the nancy pelosi letter sent to the white house and president trump asking is him to delay the "state of the union address." because of security concerns they say, also just the cost during the government shutdown. >> all righty. touché. absolutely thank you very much. i hey, let's take a look at tesla. journal reporting that company cutting more jobs to help cut the price of the model three i want to bring in jason with lito advisors, you like this move jason? >> you know, i think that this initial negative review that's knee jerk premarket selling or whatnot is really just that. it is a knee jerk that says nothing bads about the fundamentals of tesla as a shareholder as a, you know, ceo elon musk, obviously, you're looking to deliver shareholder value and reality is, not totally but just faction and better value for the company.
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lower price cars more people buy them that's the goal. >> although. although ultimate goal for any business is to raise prices not interrupt volume so -- some are saying, you know, the idea that you may have to do this, a red flag or at least a yellow flag. >> there's other yellow flags besides this is. okay there's other yellow flags this is not a yellow flag. i mean, if basic economics if you sell a hundred of something at $5 and 10,000 of something at $4 i would rather have option becomes and that's elon is going for. >> really? baa storkt gets to bottom line with four it will be lowe if you start with five. >> listen you can't look at that in the vacuum charles at the end of the day it is mathematics but if you have much more revenue and it is growing and you're meeting that access, that inflection point supply and
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demand that's the secret formula you can't look at price in a vacuum netflix is another story. but can't look at it in a vacuum. >> i agree with knee jerk reaction we see this back and forth all of the time with a cold following, and you know, it is something to keep an eye on. let's move on to netflix you brought up overseas growth doing better. you know listen we know they've soft peaked out in states. so overall, the subscribe number came in better than anticipated the guidance came in better than anticipated. it is now 1% right now after 50% move in three weeks and already hearing people saying that end is over for netflix where do you stand? >> i think this is a thousand dollar stock. i think this is a thousand dollar stock within five year at most to happen much sooner when you talk about the fang category netflix is furthest along reach aring that all time high that
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they hit last year. i think it is the first one to overcome that all time highs, and it is just going to be that runway train effect. i mean, is the pe you know, more than forward or whatever yes, of course. but it is a high growth stock and i agree thatter international growth is where netflix is going to literally, i think, go to a thousand dollars it should at least triple international growth over next year. >> in meantime a lot of debt in the meantime more and more competition. how often are they going to be able to continue to raise prices particularly overseas where the service is substantially cheaper than it is in america? >> yeah. you know they don't need to focus on raises price overseas just yet what they have 50, 6 million goafs subscribers i haven't checked fences recently how many people do we have in the world 7, 8 l, 9 billion they have 50 to 60 million people outside of the u.s. doing netflix they don't need to focus on raise aring prices. just need to double, tripling
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that number. >> reid look very confident and cooky last night saying only fortnite giving them nobody else. thanks a lot jason appreciate it. >> let's move on to trade. government officials considering lifting some tariffs to hasten a deal with china this according to a report in "the wall street journal" -- with scott we know, obviously, if sympathetic happens eventually when something happen it is that the market will cheer. and didn't we get a glimpse of that when market spiked on this news and cold water was thrown on it market still held up? >> i agree with you charles. i think that was evidence yesterday afternoon with that massive turn arngd we had from going from red to green carrying through so far this morning speculation at this juncture that nothing has been done, in fact, walking back on some of the initiatives that white house is undertaken relative to trade with china, the little disappointing but we'll see what
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comes of it and market has been a held hostage to it and any extent there's relief on that front it could p satisfaction -- >> sometime it is feels likelight house per going into this meeting what do you think in terms of negotiations better to offer this olive branch or better to stay strong because staying strong and really tightening the screws seem to have worked so far? >> well i think it is more of the latter than former. with robert lighthizer being the lead on this negotiation and i think he was pressing for all of the things that the united states wanted which was more than just soybean trade but some of the military and the intelligence a rat are us concerns that are relative to intellectual property rights and
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things that are structural in nature. so i don't know how an agreement could be made so far to listen to tariffs to take pressure off china that seems productive to me. >> mark i have breaking news i want to get your thoughts on we have headline it is from the new york fed governor john williams. he says he's seeing emerging headwinds to growth from the government shutdown. so do you think it is going to be a big problem? >> well, longer it last most certainly. estimates are that it could shave a tenth of one percent for every two weeks and we're 28 days into it at this juncture having an effect locally around washington, d.c. area. but you're still talking about the spillover of effect and markets willing to think that they're going to recoup it when or if shutdown ends an those furloughed get paychecks back but in the meantime business that will never be replaced and longer it last concern is to, obviously, when you're growing two and a half percent, you have a limited margin of safety to see for the erosion. >> i should ad williams says that softer doesn't mean doom
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and gloom which i think is something very important because -- as i watched financial media talk about this, it feels like the end of times when we know that it is still government you know still very small part of the overall gdp with the superstrong consumer higher wages, more confidence and spending money. it seems like it will be unlikely imeet offset that wouldn't it? >> most definitely and one with of the things he did comment on was strength opinion labor market and obviously that's going to bode well for consumer sent m but wage gains through the best since 2009, and, obviously, if you feel good about your employment condition and you've wage gain more likely than not to defend it to profell economic growth so you're right. there's an important tailwind tooff set government shut down at least for the time being. >> all right. great talking mark as usual appreciate it. thank you. >> thank you, charles let's check on the equity futures we've been up all morning near highs of the morning dow 161 points and i have to fell you we're near some points some key
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resistance levels on this market any of these major indices that would trigger massive if they start is to keep going just a little bit higher they would be forced to buy a lot of these investor have to get into this market. meanwhile a a physical tim cook trying to get ahead of congress and pushing lawmaker it is for a new privacy regulation. now he says your data is constantly sold online without your knowledge. and a to developments on latest migrant caravan fox news's griff jenkins says crossing into mexico from guatemala early this morning and officials at the border did not stop them from entering. and it is day of the government shutdown and a president trump just tweeted this, quote, why would nancy pelosi lead the country with other democrats on a 7-day excursion when 800,000 great people are not getting paid also, with because somebody please spain explain to nancy and big donors in wine country that people working on farms grapes will have easy access in. more on that when we come back with herman cain.
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well we have news on sears this morn it is got that much needed lifeline but now it is creditors are opposing sale to eddy christina has details. >> they're claiming eddy stripped away good asset and then put the company up for bankruptcy yes. yes, so we under eddy 300,000 se closures 250,000 people let go still the question per most people who is going to sears and eddy is saver of the company. but he's also the former ceo former he's the chairman, his hedge fund has a very, very strong link to sears, some are arguing that he has a personal motive that's what a the creditors are say why? because sears owes had his hedge fund money. he's won the right bid wect through he's going to bring back this store, and they still owe money so that will clear the way for -- for the funds that are owned to
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his hedge fund this is ongoing story and i don't know yet how it is beginning to improve especially with macy's and kohl's their sales weren't that strong for holiday season, and then you have sears that really is often understaffed they haven't renovated shops so creators are are saying it is excruciating and slow motion destruction. >> what choice do they have? it is only one bid on the table. other bid was get rid of it and make money off of it. >> but also excruciating to shop there. thank you very much to shutdown postponing a trip overseas days after she suggested suggested te delay "state of the union" joinings now hearns herman cain is this getting personal? >> it has always political and personal and as a result of trump are derangement syndrome it is personal but what is
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sadder is that president trump is on the correct side of this argument for the security . nancy pelosi is trying to prove a political point and the people. it is personal and it is political. >> how does it get resolved and when it gets to this point where each new headline seems to be pushing them further apart not closer together. >> i don't have the exact answer as to how it gets resolve ared. but it starts with nancy pelosi coming to the table. she won't even come to the table. the president has put a specific offer on the table. he said he's willing to compromise. he understands that as a businessman but she will not cool to table but what in thes and nancy pelosi are kowpghting on is that the liberal media outlet are going to start to show more and more and more of these personal hardship situations because of the shutdown to try to gain the
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empathy of the american people. but -- i think it is beginning to backfire. because i happen to believe based upon people that i've talked to all over the country all of the time that they are not buying the democrat deception they're not buying her digging in her heels people might be but not a lot of other people. >> ironic because china bet that media will force tariffs with the same hard luck stories and strengthen his resolve we saw last farmers love them so great point there but what about gop senators because awe parentally closer to next election,st that's where all of the pressure is beginning to come from on republican side. >> the gop senators have to have some backbone and some spine. and they're going to have to not react to narrative of the media they're going to have to react to the wishes of their constituency that's the
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difference but those up for reelection they have that backbone and spine and spend more time communicating the facts and the truth to that constituency than reacting to media narrative. inch herman cain always a pleasure seeing and talking with you. thank you so much. >> you too charles. >> all right folks let's take a look at the futures i don't know with herman velvety voice or logic but it took us higher we're looking amazing this morning again at point of some major breakouts and they will trigger some major buy programs. by the way speaking of major, major winter storm heading to northeast. it doesn't look like much on the radar right now but that's deceptive some of the areas could get pounded with snow and ice i know we're buckling up at the paine household to spend whole weekend indoors. ♪ minimums and fees. they seem to be the very foundation of
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strong. despite what we're seeing from netflix initially, of course, big winter storm coming our way moving across country right now and janice dean is in weather center with the latest. janice. >> i want to show you cold temperatures because some of this cold air is gong to move in towards northeast after this next storm system move in so the coldest air of the season is about to arrive especially across the northern plains. the upper midwest in northeast. right now you can see temperatures are cold. cold enough for snow, if and when these systems get an arrive across the great lakes northeast i will tell you bull's-eye for this system coming tomorrow into sunday will be interior section of the northeast so inland, upwards of a foot maybe two feet of snow. along the coast that's where we have a big question mark, will the air be cold l enough for some snow and some cases yes. but right around new york city where we're going to have that freezing line. rain, sleet, phrasing rain line,
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and the potential for some cold air to be pulled south qard so we will get some snow but you know what it is like i can't give you exact forecast especially if you live in new york city area. because those forecast totals could change. here's our best estimation right now, you know, this computer model says pan inch so a lot of that is going to be cut back because of the relatively warmer air and a the more of a rain evident. we're going to see some snow but again cut back of the potential for warm air override aring that cold air now that's not so say we get interior northeast and nulled where we could potentially see blizzard conditions. saturday and an sunday, so it no matter where you live across the northeast, we're going to have travel delays especially saturday into sunday. better forecast for monday, however, that cold air very cold arctic air is going to move in coldest in some cases single digit with windchills below zero
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so that's going to be the big story on monday charles. i'm happy to hear that you are planning an indoor event for your family this weekend. >> you know what, one maybe i don't have to. i was thinking 12 inches that's not too bad. >> depends where you live my friend you know those forecasts can change. so you know what, with why don't you -- i'll give you permission to text me this weekend. [laughter] >> thank you, thank you very much folks market will open in a few minutes looking like another strong start. more "varney & company" right after this.
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all right folks opening bell ringing right now. as improbable as it might seem if you read headline hads look at that board, all green led by chevron we know energy one of the best sector in 2019 keeping up slumber had a pretty good number. the the group is looking fantastic and american express loser so far came up slightly short on the earnings report but again it has been a remark public year and been remarkable since that christmas eve -- the debacle for lack of a better word and move to bigger index s&p 500 for a wider breath again, a nice start to the session. up three quarters of one percent just about there. s&p 500 looking pretty good. then there's nasdaq nasdaq composite looking strong considering that netflix initially looked like it was
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going to weigh on the text overall not happening so far. joining us this in discussion about market david dietz is with us suzanne lee and david -- you first. what do you make of the primary drivers of this market right now? this overall market resolve that we're witnessing? >> sometimes i think people don't want to admit that the biggest thing that push the market up was how low it had gone it was oversold and i'm talking purely no technical here. it was just sentiment driven collapse in december total buyers strike, and then when normalcy came back in, you've got after christmas, fact of the matter is you have stuff at valuations that were totally buyable. you look at energy sector which was our biggest waiting leading the pack so far 2019. the primary reason has been no big fundamental news we have a bid not about commodity price the fact of the matter is they were way oversold it is allowed buyers to come back in and start
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the year off right. >> i tend to agree with that i came back from vacation after christmas and i told the people on my show i thought christmas eve session reminded me of black monday october 19th. it wasn't of a recession, it was a series of mistakes including the secretary of treasury. at the time, making you know, remarks -- like mnuchin have been meeting with all of the banks it felt like there was abundance. >> with with your strongest month of the year and you know period right in the christmas week is very strong. since it is remarkable rebound goldman sachs up and netflix up 50% and for me it is basically policy make aers blinked all of a sudden we're now getting patients out of the federal reserve in terms with jerome powell looking at stucks and trade negotiations with china, so i think that's all positive. >> i think it normalization in acceptance that yes earnings are
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lower for 2019 especially compared to 2018 so realization of a mid to high sint increase in profits for this year not bad still in a grow environment. >> but what you said earnings are are not low but growth rate is lower. specifically what i really think think people need towns is that earnings are so solid like you said and still growing. i think that i ran a big report this morning on revisions downward in earnings it was entirely -- it was in japan they're having downward revision europe. >> stiling in positive environment remember the reaction to ism services index that was worst growth rate of 2008. we're still growing. 54 points -- >> but it was. if you said as a matter of fact in the afnght it is weakening smaller business. >> still growing -- so you have a strength in s&p and greatest strength in russell, however, there are some
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bellwetters that is concerning fact that confidence level and debt level for all of this is bad. >> another voice in not but voice of cfx because there's a company that ununderstands what's going on with railroad company over last couple of months everybody was talking about trade, tariffs, interest rates what's going on with brexit government turbulence all of these things must have some impact on the way you're running your business. but we go back to the same place we were a few months ago everybody us, and our customers are still very optimistic about business 2019 buying back 5 billion of their own stock isn't that when it comes down to hysteria focused on worst possible outcome and that's just not happening. >> i love how bank of america bought a stock back at 26 and goldman goldman sack buying it become and we have stronger earnings and interest rates are at bay and cannot test the highs because another 10% from here.
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>> you made comment that fed blinked that is charitable l of what it looks like he's doing and if fed futures -- it is the right -- but what he's done relative to where he was in october, when he said we're not even close to neutral. to now the fed fund futures market telling you no rate hike all year if that's 50 billion a month of balance sheet rolloff come down to 10 or 20 that's a full blown capitulation. not big news this morning tesla they're cutting jobs, the journal has a report out the job cuts to help cut the price of the model three. what do you think about this move? the price cuts -- cutting the price of the car? >> with we we don't own tesla we wouldn't touch it within a ten foot pole i talk about on decision to money losing venture here's what i will say. >> made a profit by the way in third quarter which elon musk said it was the most -- probably most important profit in the 15-year history of tesla.
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and that's why he worked for it. >> the profits ends up with with 200 billion left than they have before. the fact of the matter was that -- this job cut i feel for people have is lost their jobs and so forth but they need to cut costs because from a cash flow standpoint right now, they've burned through equity capital an now started high yield market. it is a funding issue or, and it is some point something has to give. >> only thing that this discussion is not about fundamental and they've been more efficient when it comes to labor they cut 30% of labor hours when it comeses to making these model three. so there's some strength right now. maybe it was just premature to sell off this much. these molds three still have a lot of potential and i think -- i think it is an issue because they did promise that bags model 35,000 which they never put out and you don't want to lower the price. pfnlg so we know elon muck in 60 minute interview said they were virtually single digit week of
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survival that was a cash burn story. they're trying to reduce their work force. you have a convertible to still pay in martha you need to strike price at 359. so that's cash -- a billion dollars. >> let me go back because i'm thinking about what you just said so we were oversold. and then we made a bounce. technicians talk ab retracement when does the natural bounce of being oversold become something else because we're on a cusp now of going higher to a place that over, over, you know, overcompensates for oversoldness speaks to something else i think. >> and dangerous to ask a nontechnician what a technician might think about this. >> overall -- because we were oversold fundamentally -- they were sold, own over what? >> so answer what you're getting at a great question. fund mentally we may be undersold. oversold if trade war situation is warninged out and if indeed they're not going to extract so
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much liquidity out of the corporate economy they have to constrict that's a the issue. high yield bonds will will tell you the story. i think we have as wide as 575 now down 450 so that's telling you that right now, there's plenty -- >> nothing to you guys. right? >> bounceback can does a change in fund mental for fed and they start talking well we have to be vigil about inflation look for corporate like netflix up 100 points. >> but market can handle that. can't market after data justifies it rather than saying we're automatic pile that we don't care? >> absolutely but he could handle better pointing ago. >> they might cut interest rates. >> another stock that's unique on to itself but infliewn cial at the market netflix really growing gang busters around the world they're subscriber number actually beat wall street estimates and their guidance but
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the stock a little wobbly again considering up 50% in three weeks. maybe down 2% not bad. >> i looked at their report today i thought it was fabulous plus when you combine with pricing power goes from 11 to 13 less than people pay to see a single movie. >> go ahead. are you concerned about 3 billion dollars and then you have the u.s. subscriber rate that's not as big in the u.s. which i think contradicted to some of that selloff. >> so that's great point and a problem to the future they need fresh content and fresh content is not cheap and, of course, everyone in the world is -- getting into the streaming business. you've got disney for example, amazon creating content there's headwinds going forward which is why you're cautious of that. >> his comments about head winds and fort nite is bigger competitor and no way he really meant that because it is absurd. real content competition, that is a threat to future margins they know it. they're prepared for it. >> verizon, comcast --
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you name it. had said that sleep was a biggest competition. [laughter] >> bottom line, though, is -- bing watching is a phenomenon it was, you know, a global phenomenon, and free. and it doesn't make them nigh anymore revenue. so much cheaper to bing watch netflix than to go to movies. so that was a great point. they have a distinct first mover advantage they have a ton of content and it is tough. i mean this is a stock i wouldn't bet against. i would not go -- advantage at earnings. think of movies they have. i think that will be biggest threat. >> netflix has pricing power with a big distribution are model that's the point get mass distribution to increase your ad value. >> we'll see that debate has gone on for a long time and i have to tell you stock has made one hell of a move i wish i held on it for 10 bucks. yes. even at 100 bucks. all right thank you folks. very much, the dow we're up 138
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points right now. thought we would open a little bit higher even makings adjustments for cash but a pretty good start to the session again this is a tough, tough area of resistance. meanwhile gillette getting a lot of flash masculinity ad but controversy initially could be paying off we have new data show people are likely to buy gillette product and tammy bruce will weigh in on that also verizon making it earsier to stop robo calls starting in march who do i talk to? customers will get free access to tools to combat those annoying calls. ♪ okay. our grandparents checked their smartphones
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the majority of tao stocks, though, are higher for this session so far. one of the nation's top bankers is making big money tell us who is christina. >> jpmorgan jamie diamond they have record record profit for 2018, and his salary went up 5% so if you're wondering at home thinking how much did he make. he made boom 31 million dollars, actually a base of 1.5 a million and a the rest 29.5 million is the bonus. that's why you come to that total of 31 million in stock and cash, and yeah, that's -- >> i guess one with the trigger isn't beating wall street estimates? >> they did on that trick -- yeah. i know going to call jamie took issue with the analyst not elon musk issue but still took some issue with him. >> they're getting more vocal on calls yeah. so there's attitude. >> all right thank you very much. i want to switch gears now to syria listen to vice president
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pens says about the fight against isis roll tape. >> we're now actually able to hand off the fight against syria to coalition partners bringing our troops home. caliphate has crumbled and isis has been defeated. >> joining us congressman michael watts republican from florida also buret so what do you say that the need to keep troops and syria -- the president the administration saying isis is defeated it so we probably shouldn't be doing that. >> you know, charles before we get into that my heart goes otothe family of chief warren officer farmer, from the beach florida actually where i was born. he was killed in this week's attack along with three other americans he left behind a wife and four young children on wednesday that we special operators and veterans you know truly dread.
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so my heart is out to their family look, isis is defeated as a caliphate i give the administration huge credit for taking handcuffs off military destroying that -- geographic call that they held but it is not a movement but it can grow, and it can come back in the form of gorilla warfare as we just saw. both in iraq and syria. so my strong position is we need to stay on offense. we with need to keep our foot on their neck. there is kind of this notion here that just just let them take care of it and let's bring soldiers home i would love to bring them home but at the end of the day i don't want to fight our way back in and we need to keep them worried about missiles, green burets coming in to take them out at night not attacking us back here at home. >> doesn't this syria attack underscore fact that, that their emboldened to your point even if we are there? and it just -- you know for people who don't
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have a military background it feels like we have a small number of troops that a -- that could be sitting ducks, you know without you know they're not putting we're not putting our boot on their neck. we're just sort of in the area surveilling everything, and consequently we are target. >> pleat disagree what greene buret specialize in we train and find ally and our friends to train them to take care of business for us. so that small investment a relatively small invest amount couple of thousand troops are help the the kurds helping arabs to take care of isis and launch those offenses they help with air strikes with medical evaluation all of the things they need but importantly, it keeps us engaged these iran, helping syria, turkey which cares a lot more about taking out kurds than it does isis keep russia from dominating region. we're doing a lot of other
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things by having that presence there, and look i get it we want soldiers to come home. we still have -- but importantly we have 25,000 troops in japan. we've got 30,000 in korea. >> exactly. hundreds of the american public as pushing back against that wondering why we have such a large military presence particularly in like japan for instance, and listen, i understand what you're saying but by the the same token russia, is nominating syria. they control it. it's -- it's one of the things where people are very, very concerned that some of the strikes that we're talking about could they be launched from -- from other places in the region. and the kurds, you know, could we guarantee their protection already the administration has told erdogan don't touch kurds so do we have to be there? >> i get it. but if you think or if anyone thinks this war isn't going to follow us home, i think you're sadly mistaken. we can either fight in damascus or fight it in kansas city
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there's a reason that we haven't had attacks like orlando, and like california and otherses in the last couple of years and that's because we have them on the run. let's keep them on the run are. i want them worried about where they're going to sleep at night not plotting and planning attacks in paris london and new york. >> with all due respect. with all due respect we've got to go. i do want to ask you will there ever come a point to bring troops home? >> look, charles, they're at war with us. and this is a -- why i'm here one of the reasons i'm here is we do need a longer term strategy of how do undermine ide yolk not just fight individual wars i'm glad to come back on and tell you what that looks like. >> they don't need troops there and it lives on the internet and web and other areas that we can't voi necessarily. >> there's not a military solution to this 100% agreement there. >> it is great seeing you congratulations on your win congressman and we'll talk again very soon. thanks. >> thanks charles. let's check on dow 30 here. again me angdering but we found
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place of the upset two sphox of the upside goldman sachs and american express and dow 30 and white house getting ready for china top trade negotiator he's coming to washington later this month for talks, another sign that we could bees close to a deal but how big. well, we're asking that question. . .
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charles: now the trade talks. big talks scheduled for the end of the month. curtis ellison former advisor to the trump campaign on trade and jobs. how do you feel about the momentum as we head into the important round of talks? >> well it will be very interesting what happens because we've got right now news about huawei being possibly subjected to criminal investigation over its theft of robotic technology from t-mobile. we'll see if this actually comes to pass. this has been a leak from within the justice department that they may be pursuing criminal charges. will that actually happen? because we saw just a few weeks ago two chinese nationals indicted for hacking 45 american companies. there were supposed to be sanctions leveled against them, the treasury department at the last minute under direction of steve mnuchin pulled the
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sanctions. there is talk about lifting sanctions against china to incentivize them to make a nice deal. well this is tantamount to preemptive unral disarmament. there are two competing world views going on here. one that china is a threat, that pose as direct threat to our economy and our national well being. and then the other world view is that china is our friend. charles: i don't know who has got that world view anymore. maybe when it started, maybe a few globalists that don't care but in your opinion which one would china admire the most, respond to the most? would they see pulling tariffs temporarily into this meeting as an olive branch, you know, something or seeing something as sign of weakness. >> they would see it as sign of
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weakness this has been going on 40 years. if we are nice to them, show them a smiling face, they will come around to our way of thinking. this has not worked. this is exactly what has not worked. if you have to understand what china is up to, read michael pillsbury's book, this was architect of china's policy. he went out an limb saying china is not our friend. what i used to be, i now learned they are a dire threat. we won the cold war not by preemptive unilateral disarmament, but by a policy of threatening massive retaliation. charles: delivering it when we had to. >> absolutely. when china comes to the table, actually delivers that is the time, when we verify that they have delivered, that is the time to lift tariffs. not before. charles: curtis, thank you very much. appreciate it. >> thank you. charles: coming up in the 11:00 a.m. hour kellyanne conway, i i want to know if shes worried about the government shut down and how it is
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affecting the country? stocks falling back a little bit. the dow clinging to a gain of 103 points. up next bob dole gives us his predictions for the market and the economy. yday verzenio- the only one of its kind that can be taken every day. yday verzenio- in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- metastatic breast cancer, approved, with hormonal therapy, as an everyday treatment for a relentless disease. verzenio + an ai is proven to help women have significantly more time without disease progression, and more than half of women saw their tumors shrink vs an ai. diarrhea is common, may be severe, and may cause dehydration or infection. before taking verzenio, tell your doctor if you have fever, chills, or other signs of infection. verzenio may cause low white blood cell counts,
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charles: 10:00 a.m. on the east coast. 7:00 a.m. out west. it is friday. i'm charles payne in for stuart varney and we have a big show for you. positive headlines about trade helping to boost stocks. i happen to think we're on the cusp of a big technical breakout. we're all over the markets. bob doll, nuveen equity strategist out with his 10 predictions for 2019. we'll get into it with him with those. we're talking shutdown. lara trump is here with us this hour. this is the second hour of "varney & company" and we start right now. ♪
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charles: we begin with your money. who better to talk to about that than bob doll, nuveen's chief equity strategist and senior portfolio manager. bob, you focus on fundamentals of the you say they remain solid. if that is the case, are you bullish? >> yeah, i'm constructive. look, we've come 12% in about three weeks. so some of the good news is back in the markets. granted we dug a big hole to begin to climb out of. i think it gets harder for the market from here fundamentally and technically. but i'm constructive on the economy as our predictions outline, charles. charles: we had mixed economic data, right? most of it, the big stuff has been good, job growth strong, wages strong. we had a pretty good philadelphia if you had number yesterday. where does that put us, vis-a-vis headwinds holding us back last year, particularly the federal reserve? >> so the fed's data dependent,
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quote, unquote. the data as you point out are coming in pretty good. so at some point this year i hope they have reason to raise rates that would mean the economy is doing well. if they don't, then the earnings picture is not as good as we think. let's hope they pass on the next, just to show that they are data dependent as opposed to we're going to move every meeting as they have been and i think the market would view that favorably. charles: there is a lot of wild cards out there, including the government shutdown week three, how negative will this be for the economy as this drags on? >> longer it lasts the more negative it is. most economists say every week or two is another .1 of a point of gdp off. if we have this thing two months, that is half a percent of gdp. that is real money, charles. let's hope they can, cooler heads can prevail, get off the playground and come to some terms. charles: but by the same token,
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does majority of that come back later, that penalty-up demand? does that money come back later on to sort of equalize it all? >> great question, some of it for sure comes back. those effects are hard to estimate. the it lasts the more damage you do. you can't predict knock-on effects. tsa workers say, you know what? i'm not getting paid, i'm not going to work. we have massive gray cloud over the economy because people can't fly. i'm not saying that will happen. but there are unintended consequences if we don't take care of the thing for long. charles: one of the other big wild cards is trade. you say trump and xi will finalize a deal because they both want a political win. how do you make it look to your side, to your constituents, that you won? >> yeah. that is the hard part. i would emphasize again, i think they both need a political win. so i think in the next few
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months we'll have some sort of a deal, something done but, i'm worried, charles, there will not be a whole lot of substance. there i think if there is some agreement and, they say we'll talk to fix other things america will be happy with that we'll not get this all done overnight. this is a very long process. these are a complicated issues. a couple months are not enough. charles: we just got the michigan sentiment number in 98.7, 93 last month, this is well below the wall street estimates here. maybe this is starting to reflect, street was looking for 96.4, bob. i haven't had a chance to go through the details of it, but is this the sort of thing we were worried about? >> yes, exactly charles, you put enough things out there for people to get nervous about and uncertain about and their confidence level inevitably begins to drop. the stock market decline, the government shutdown, uncertainty around tried. we have to make progress on
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these things for people to feel good, spend money. charles: the last one, of course you're well-known for your predictions and you have 2019 predictions. one of course we looked at, the one stands out the most to us, prediction on the 2020 presidential race. can you explain it to the audience? >> yeah, the prediction folks, the democrats have a double-digit number of people run for president. that is concensus and that president trump is challenged from within his own party. that is obviously not consensus. we've gone out on a limb. i have no inside information. just seems to me that with his struggle in the polls, his bolstering his base, but unability seemingly to want to broaden his base, that is going to be necessary if he is going to have a shot getting pennsylvania, ohio, and michigan and wisconsin again. and enough republicans may see that, you know what? maybe we need to challenge him i don't know. we'll see. charles: you don't have any ideas who that might be?
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we know never-trumpers left d.c. in with the intent to row claim the party. i think it's a tall order for them to on the republican side to beat president trump on primary bring. >> i do not disagree with that at all. also sadly for republicans know when incumbent presidents get within their own party they rarely win re-election. so i'm not predicting anything. i'm just making some observations. but i think you're right, taking the nomination away is going to be hard. charles: bob, you started out saying two dozen dems. then when you mentioned that last stat, i got a feeling it will be four dozen. so we'll see. we'll see. >> it will be wild. charles: it will be wild. we always appreciate your expertise. thank you very much. >> all the best. charles: folks i mentioned the michigan consumer sentiment number. susan you have more details. susan: this is a little concerning. consumer sentiment plunging in the month of january the lowest
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level since president trump was elected this is a big miss we were looking at. forecast for a read 97.5. we got 90.7. that is a drop of eight points from the previous month as well. according to survey of economists they say the drop in sentiment because of a host of issues. that includes the partial government shut down, impact of tariffs, instability in financial markets, global slowdown. they say lack of clarity when it comes to monetary policy and interest rates and where they're going. charles: yeah. i think that is impacted the housing market. it will be interesting, because these last two mortgage applications reports were through the roof. whatever the fed is doing, rates come down. we're stablized. susan: think it is below 5% rate for mortgages. that is the key. charles: that is a key number. thank you very much. want to go to netflix? susan: talk about netflix. charles: subscriber growth. it was better than expected, but there were some parts of the report, susan that bothered some
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investors. use sues i thought it was a pretty good report card. came out way ahead coming to subscribers. they got 8 million. market was seven 1/2 million or so. revenue light. eps beat and guidance forward for this quarter we're in looks pretty strong especially international subscriber ads, right? we're looking 134 million users around the world. 139 million users around the world. that is a lot of dollars when you have the ability to raise prices, you don't expect demand to go down. as you mentioned, key quote, conference call, earnings call was they think it's a bigger competition coming from "fortnite" than hbo. touche. charles: touche. thank you very much. check on all the big tech names we check here every morning on "varney & company." not doing too bad across the board. amazon making a big stealth move. facebook up almost 20% since the beginning of the year. alphabet google is doing pretty
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good as well. speaking of earnings. american express, missed expectations on slower consumer spending. that happens to be the biggest drag on the dow at the moment. check on tesla. their chief elon musk announced he will be cutting jobs. 7% of yobs at the company. that is taking a big toll on the stock early this morning. now there is this, day 28 of the shutdown. no end in sight, president trump and nancy pelosi trading jabs, overhand rights. it seems to get a little personal. lara trump will join us next. the new space race. the president trump laying out plans to militarize space. are we playing catch-up with china, russia and iran? we'll talk to someone who advises the president on foreign policy. more on netflix. they say another service that demands screen time to the competition. you're looking at it. they say it is "fortnite." way above hbo to susan's point. the gaming revolution we've been talking about on this program
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charles: checking the big board. i have to tell you. michigan consumer miss. markets are actually moving higher. meantime a lot of earnings out. biggest gainer in the s&p right now. also check on tiffany's. talk about a reversal? the stock was down all morning long. making a huge move to the upside. the company said chinese tourists spent less money. it was a currency issue. on other hand gamestop, videogame seller had strong holiday sales performance. affirmed full-year profit. don't bury them yet. let's get to the shutdown. senator lindsey graham
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yesterday, tweeting, i wish our political leaders could desire to come to common goals as those that serve the nation's in uniform and other capacities. joining us lara trump. it is getting personalnal. even more so personal for president trump and nancy pelosi. people are taking shots at both of them. this is not necessarily a adult way to find a solution? >> i will say the first shot was taken by nancy pelosi disinviting the president to give the state of the union address which was absolutely crazy in my opinion. we've never seen something like that happen. the good news the president doesn't need to give it in front of nancy and her colleagues. he can give the state of the union anywhere he wants. i'm sure he will do something to that effect. what he said was very appropriate. the letter was written beautifully. i thought what he did was incredibly appropriate. why is nancy pelosi and why are congressional leaders flying all overseas right now empty midst
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of a shutdown, wasting all this taxpayer money for no good reason? charles: does feel like, he had the trip to hawaii. you had the trip to puerto rico. >> you did. charles: they get a free pass from the media. at this point, there are some democrats that she did overplay her hand with the state of the union. that ising is, if secret service, if police or law enforcement believe there is an issue they will say to the white house, don't do this. she is not our, she is not in charge of the secret service. so purely political. that might start to backfire on her, this kind of stuff? >> i think you're seeing that happen already. some democrats are coming out saying wait a minute i didn't not sign up with this democratic party. don't lump me in with all these people. the american public are sick and tired of all the antics. for nancy pelosi to do what she did for the state of the union was very bold and very uncalled for in my opinion. the fact that many of these democrats are not even coming to
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sit down with the president when he invites them to the white house to negotiate, to find an into this, i think they're seeing that, wait a minute. don't put us in that camp. charles: apparently the strategy is to keep this going for long enough that it starts to impact or influence gop, republican senators. >> yeah. charles: that is where the break will come. at some point, you have the senate go to president trump, republican says you have to end this now. do you think it will come to that? >> i don't think so. i think republicans, the american public in general understands why the president is so strong on this. reality is, this is about way more than a wall. this is about the future of our country. we cannot sustain illegal immigration in this country. at some point it will be the downfall of our country. in countries with open borders you see it happen all the time. the president knows, he has been very strong on this, this is possibly the last chance we have to address this.
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meanwhile all the democrats opposing it were all for it a couple years ago, when we had a different president. charles: that is hypocrisy of it. so many well-known big-name democrats voted for physical barriers, physical support on our southern border. so ultimately, as these images of furloughed government workers going to food banks, saying listen i'm having trouble paying my bills, the media will have that, they will play it every single day. >> yeah. charles: the longer this goes on. that sim men's pressure on president trump. could that make him blink? >> it is funny, first of all, we all feel so much for these workers who are not getting paid. that is not fair. it is not right. they don't deserve this. but it is crazy, charles because the number of people who are government workers who have not gotten paid, don't know when they get paid again, they have come up to me, they come up to my husband, they said tell the president to stay strong.
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we know what this is about. charles: not unlike farmers have done. president trump speaks to the farmers. they love him. >> so for the long game. the media will use that all day long, they will do everything they can to exploit that but what they're not going to do, maybe what republicans should consider doing in the same token, bring out families, bring out angel families, families of loved ones who are never coming back, who were murdered by illegal immigrants. maybe that is the counter, i don't know. but they will exploit that. charles: compromise. president trump said he is willing to compromise. sounds like there is some room on the 5.7 number. do you have an idea how low he could potentially go? or, could we even go the other way? could this be an opportunity for a grand bargain? hey, why not get all the immigration cards on the table, deal with it all once and for all, the loopholes? >> yeah. charles: this is that kind of an opportunity. >> it would be great. it would be so great to see that. he is the negotiator-in-chief.
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i leave him in charge of that. i don't know what his bottom number is there. it would be nice to solve all of this. it is about so much more than a wall. it is about a broken immigration system that is really detrimental to the future of our country. we have to address it. we have to fix it. and it's time. let's get it done now. let's all come to the table. charles: great meeting in person forefirst time. >> thank you. charles: you're relentless hard worker. i don't think you get enough credit for the role you played in the election. >> thank you. charles: we appreciate it. thanks, laura. keep on the government shutdown, there are super bowl safety concerns. susan: it's a bilge game. i don't know, laura, are you going to the super bowl? >> i haven't decided yet. is this an invitation? susan: you should. it plays in atlanta, georgia, february 3rd, government shutdown, it is in atlanta, one of the busiest hubs in the country. they handle 60, 70,000 passengers.
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that is 110,000 people. if we have lines that are 90 minutes, two hours long, tsa agents calling in sick at this point, there are concerns that, if atlanta can handle the mass amount of people that are expected to descend. security as well for the game at the stadium. there are a lot of federal security personnel on hand. they won't be paid on gameday. commercials, probably point of watching it on television. charles: i will make a bold prediction. everything foes okay. susan: i think so too. ftc has to approve products that go into the million dollar ads into the super bowl. neil: later this hour, we know it is about border security, sheriffs across the country are backing president trump. we'll talk to one of the sheriffs leading the effort. did i mention? he is from massachusetts. let's check the big board. up 190 just moments ago. markets looking great.
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charles: there is this. the creditors are opposed to retailer's sale to former owner eddie lampert. susan: i'm not sure they have a choice. eddie lampert, majority stakeholder in sears and what these other stake hold remembers accusing eddie lampert, esl, doing, stripping sears of the best assets before dumping the chain into bankruptcy and trying to reacquire it on the cheap. so $5.3 billion. this is the hail mary offer that esl and eddie lampert put on the
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table to save sears. 400 stores, 60,000 workers. sears has 126 of-year history. when eddie lampert first bought sears in 2004, merged it with kmart. they had 4,000 stores, 200,000 workers. charles: by he was being called the new warren buffett at the time. there was a couple financial stations i won't say who, urging people to buy the stock. that is all i'm saying. susan: i watched a few interviews there. charles: thank you. now there is this. plenty of controversy overgillette's newed new ad, for men to shave away toxic masculinity. fort knight is keeping them up at night. this is about the gaming revolution, "varney & company" has been on before anyone else. more "varney" after this. ♪ [ phone rings ]
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♪ susan: yeah. charles: all right. susan: he would like this one. charles: of course a classic. susan: probably one of their most popular ones? "twist and shout," everything knows it. everybody. charles: all right. check on the big board, folks, we have a pretty good start to the market. moments ago we were up 190 points. that was a spurt on a report china offered a path to eliminate the trade imbalance with the united states. what they have done apparently proposed a six-year buying spree, ramp up u.s. imports. that did help the markets
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momentarily. we're hanging in there. big tech names, check them out. all of them higher. microsoft fractionally. amazon continue as remarkable rebound. don't forget facebook. it is up 20% this year. netflix reported last night. overseas subscriber growth up extraordinary. to put it in perspective, it was up 50% in three weeks. revelation from netflix, they're worried about "fortnite" stealing screen time than any other streaming company like hbo. rob steinberg, gaming world news host. rob, "fortnite," big compliment. certainly seems like they might be right? >> it certainly seems that way. if we look at the 2018 numbers, "fortnite" made $2.4 billion last year, which is the most a videogame has made annually in history. it was really fantastic. i think the thing netflix is probably the most afraid of right now, anything that is
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going to pull eyeballs away from their streaming platform. if anything that, you know, the media has taught us right now is that people are crazy about "fortnite." charles: they're crazy about "fortnite," when they're not playing that they're binge-watching. what does it say for the industry though? because it seems to me, they talk consolidation all the time. i never hear them talking about perhaps buy one of these game-makers? to me it would be a slam dunk to start buying them because you have got eyeballs and products you can leverage and make movies out of? >> it certainly, it is certainly a possibility. i think that that is probably something netflix is considering or at least thinking about. the big thing for "fortnite" to continue to be successful in 2019 is to retain as much as their player base as possible. we're talking about a game that has 80 million active users, which is incredible amount of users but in order to retain those users you will really have
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to change how the product looks in 2019. that could be anything from adding more maps, adding more skins or opening it up to a larger market that isn't available, something like china for example. charles: rob, i do want to ask you about one more thing. the nine tech, developed "pokemon go," that app, now valued at $4 billion. they're releasing a "harry potter" game. sounds like great news for the future. what do you think? >> i really like nan tech. i am a big fan of "pokemon go," as far as augmented reality in games i don't think another game has done it better. i don't really know about the "harry potter" game what it will play like or similar to "pokemon go." if it is, "pokemon go" made $1 billion. that is a good billion dollars behind "fortnite." that is incredible amount of money coming from digital game
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sales, free to play games, took up 80% of all digital sales. that brought in 87.7 billion in revenue last year. there is definitely a chance this could be successful. charles: you mentioned augmented reality. blue magic, first demonstration, more recent demonstration didn't live up to the hype. feels like once we're able to live inside the games all bets are off. >> it is true. and in the case of "pokemon go" it is augmented reality, it is giving you an an image inside of the real world, not so much virtual reality completely taking you out of the world. but as we see these different technologies continue to progress the possibilities for gaming in the future are just astounding. and it is so much fun to be a part of famer world news and watch this evolve over time. charles: so much fun having you too. captain rob, thanks very much. we'll talk to you real soon. >> thanks so much, guys. have a great day. charles: the shutdown, president
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trump tweeting at house speaker pelosi this morning quote, why would nancy pelosi leave the country with other democrats on a seven day excursion when 800,000 great people are not getting paid? also, could somebody please explain to nancy and her big donors in wine country that people working on farms will have easy access in. joining me now, tammy bruce, independent women's voice president and fox news contributor. a lot of back and forth going on here. what do you make of it? >> it's a classic trump, right. he likes a foil. this is about what politics is. i knew, when it was going to be new speaker of the house he was pushing for it to be nancy because she really does define the nature of what the democrats have become. there is still no interest in governing i it is all about politicking. not about the interests of people for democrats or what will be better for the american people. i think this choice in what he is highlighted here, of that trip, versus their complaints
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about the shutdown is a very good example and reminder of american people who has their best interests in mind. charles: the letter was so stinging. i'm sure you would agree postponing this public relations event. obviously you like to make the journey by flying commercial, that would be your prerogative. >> yeah. charles: those are not so subtle hints at fact you're very wealthy. this could be perhaps your third trip. democrats have been to hawaii, puerto rico. shock people when the bus stops all these people came off. >> it wasn't just the speaker of the house. this was, you know, like going to sandals. it was like a big group of people with all inclusive paid dynamic. this is just after she said there wasn't enough money for security for the state of the union address but somehow there was enough security to make this possible. charles: ultimately going to afghanistan. that is sort of contradictory. >> it was. charles: but the dems no, no matter what they can't overplay their hand with respect to the media.
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you would have never thought, i can't imagine republicans going on retreat to puerto rico being call, you know, have pena coladas at poolside, talking to lobbyists whilehundred thousand government workers were not getting paid? >> this is when the american election and american people in, media covered for democrats. they covered for barack obama. the american people have enough sources of information now. news outlets, only 15%. the internet look at reports of these things. they don't need it explained to them. they look at it, see it is ridiculous or unfair. they come to their own conclusions. there is enough out there now, what rankles legacy media, they don't want these other alternative sources of information, there is enough for the american people to make up their own mind. charles: i want you to make up your mind for us, share your thoughts on the new gillette ad. a lot of people feel like it's a
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polarizing ad. you have a new piece out on this on foxnews.com where you write in part, it is time to stand up and stop this pathological frenzy to marginalize boys and men. explain what you mean there. >> we've seen this happening, especially, if you recall during the '16 election, political interests here, saying that women who voted for trump as an example were doing what the men in their lives told them to do, whether their boss or their husband or their son or whatever. what the democrats have seen is that, what they don't want, is for couples to be making decisions together. the influence of both parties in a relationship. they want to isolate women across the board. and in order to do that, you have got to of course demonize or remove men from the picture. this is of course not going to happen but what you see it in politics, you see it in the attack that men are experiencing there. but what i would suggest also, this is a little bit about the political correctness and direction of the left. but what we know that mobs
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running politics is not a good idea. and mobs trying to run business and pressuring business is not a good idea either. charles: it is early but there is one poll out right now that says the ad might be working. more people are saying they will buy the product as a consequence of it. what do you make of that? again it's a poll. we don't know, just like the colin kaepernick thing, i like at nike's earnings, i don't see anything discernible it made a major difference but didn't hurt them? >> we'll have to see. part of their business framework, trying to appeal to women, but this is the mistake. you don't appeal to women by marginalizing their partners and the men in their lives. you also don't appeal to men by telling them either how to behave in life or to, like suddenly, either about how you raise your children or how we're supposed to be raising boys. that is also not the business of business. charles: right. >> and this is what, i think we're all being lectured at.
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men are being lectured at. americans are tired of it. we might see in longer run as, because there are alternatives for shaving products and americans will make decisions accordingly. charles: tammy, great seeing you. thank you very much. there is this. microsoft investing five hundred million to help seattle with their housing crisis. didn't the politics of the city lead to the crisis in the first place? we'll speak to someone on their city council. we're talking to sheriffs trying to mobilize sheriffs across the country to support the border wall. check out the big board. the dow up 166 points. a strong start to the eggs is. more "varney" right after this. ♪
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♪ susan: nuveen chief equity strategist, senior portfolio manager bob doll says the current economic and political client will definitely affect president trump's re-election campaign next year. listen. >> you put enough things out there for people to get nervous about, and uncertain eye bought and their confidence level inevitably begins to drop. the stock market decline, the government shutdown, uncertainty around trade. we have to make progress on these things for people to feel good and spend money. we also sadly, for the republicans know that when incumbent presidents get challenged from within their own
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now to the migrant caravan. they crossed into mexico from guatemala. officials at the border did not stop them. susan. susan: at 4:15 a.m. this morning, we're getting reports, fox news getting reports that the border crossing between mexico and guatemala was open temporarily. officials did not stop the caravan migrants numbering in the thousands, at least 1000 i should point out. yes, they are marching on their way to the u.s. southern border that connects with mexico. this goes to a faulty lock was opened, apparently closed once again. shows you how porous it is in latin america and they expect that when you get to the u.s.-mexico border sometimes. charles: wow, thank you very much. joining us now, sheriff tom hodgkins, bristol county, massachusetts, sheriff. sheriff, another caravan headed this way. we've gone through this before. it's a big issue here in this country. where do you stand and why? >> well look, charles, thanks
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for having me, first of all and where i stand is where sheriffs across this nation stand and all of law enforcement, we finally have a president who is acting like an adult, gave law enforcement back its footing from day one. he talked about securing the border. the opioid crisis is out of control. sex trafficking, human trafficking, all related to southern border. tell you massachusetts is 2200 miles from the southern border. we're second most commonplace you find fentanyl. we have seventh highest overdose rates. never mind people killed every day since we've been asking for the wall for 20 years. we asked congress and congress frankly is the problem. nancy pelosi and chuck schumer are people acting like children in this whole argument, ignoring, turning a blind eye to people who lost lives. frankly, look they haven't given us, the american people, one idea about how they want the
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border to be secured differently and the reason they keep saying we're not going to do the wall, nancy pelosi, we're not going to do the wall is because they don't have an alternative. the experts told the president, researched it from day one. charles: sheriff, let me ask you this though because what they are saying is that illegal immigration has declined dramatically over the years. that the majority of these illegal drugs are coming through legal ports of entry, and that this perhaps, you can use drones and censors rather than a wall? >> look i've been to the border three times. that is just not true. the border patrol people said the same thing. this idea that most of them are coming through, even if 60% were coming through the checkpoints, the fact that we, reason we need the wall we have some of our resources, border patrol and otherwise, focused on trying to stop people without a wall. and, it is not good use of resources. put more resources at the points
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where they're channeling in, you will reduce the thing and prevent it. in san diego, 1986, 600,000 came across the border. in 2015, we had 30,000 who bottom through. so the walls do work. everybody knows it. american people aren't stupid. law enforcement certainly isn't. we are our boots on the ground, we told congress time and time again. they continue to use i -- immigration reform as political football. charles: thank you for all you do and law enforcement do on behalf of americans. >> thank you, charles. charles: check on the big board. we're starting to get a little octane into this rally. highs of the session. dow breaking out. i'm telling you as we get higher, more and more of that money on the sideline must come into this market. meanwhile president trump laying out his plans to make space the sixth brand of the military. if you want to know, the key here is whether or not we'll
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catch up to nations like china, russia, iran. they're already out there. we'll talk to someone who advises the president on foreign policy next. ♪ this is huntsville, alabama. aka, rocket city, usa. this is a very difficult job. failure is not an option. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges.
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charles: checking the big board, now up almost 200 points. a very solid start to the session. a great start to the year. markets look fantastic right now. then there is this, president trump at the pentagon yesterday detailing the planned sixth branch of the military, the space force. here is what he said. roll tape. >> my upcoming budget will invest in a space-based missile defense layer. it is new technology. it's ultimately going to be a very, very big part of our defense and obviously of our offense. charles: come on in, walid phares, fox news national security analyst. we know china is growing plants on the moon right now. so everyone is out there, the space race, are we already losing it? >> actually it started a long time ago, charles. as we remember during the reagan
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time we went to space. we tried to block the soviet development of icbms. it calmed down after the collapse of the soviet union. charles: by the way president reagan was highly criticized in the media. >> he was at the time. then it was true soviets were developing all these missiles. what is happening right now, russia, china, as you just mentioned, iran, are developing space related or intercontinental missiles we need to block by using space. charles: what i find amazing is, how once again the media is dismissing this out of hand, in a stock market, the most exciting things in the stock market all have to do with the cloud. that is space, right? we send satellites out there, spacex, that is space. everything we're doing, all of our information is in space. i mean we have a lot more to protect. it is extraterrestrial world. >> absolutely. the physical space between us and the moon and world. you have virtual space, cyberspace, this never existed before but the most important
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benchmark was last may when the russians showed us a hypersonic missile. they claim we have no technology to stop it. prompted the president to ask our six agencies to block it. charles: can we block it? because i've seen some of the demonstrations. i've seen the smile on vladmir putin's face. this seems like a man who is very confident he has upper hand right now? >> he is different, soviets, now russians always claim more than what we had. we claim less than what we have. internet was invented by our military 20 years before we obtained it. i'm sure we're ahead of the game. charles: secretary of state mike pompeo meeting with the north korean envoy there. you know there is preparation for a second trump-kim summit. what do you think will come out of it? >> by observing behavior of north korean leadership, they want to move forward. guess what? they have the chinese. chinese only ones backing them. what they're trying to do, ask us, very simply, if we come your way, would you supply us what
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chinese are supplying us? it is monopoly game. charles: what is the answer? >> the president wants it. now with this new majority of in the house of representatives i don't know how to answer. charles: how about if kim jong-un gives up the nukes he loses a little bit of power, not just around the world but at home, opening up a coup? don't they guarranty his protection? >> we'll guarranty his physical protection but we cannot guarranty him from internal revolution. what will change north korea? south korea. once they see what is happening like early lynn, once east per per -- berlinners moved to west lynn the wall was over. charles: thanks very much. no end in sight right now. jabs and overhand rights between president trump and nancy pelosi, getting real ugly there. in the next hour i will talk
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charles: 11:00 a.m. in new york, 8:00 a.m. in california. i'm charles payne. we are starting off with your money. check out that big board, folks. that is a huge move and a huge year. it's come a long way since christmas eve. the markets are reacting to a lot of news we got in the last hour. we will talk about that. also, netflix, a lot of news also to digest. overseas sales really going gangbusters. not so much here in america. want to bring in jonathan hoenig, capitalist pig hedge fund manager. you don't like netflix as an investment. >> i love it as a company, amazing company, and actually think they are putting up a good fight against fierce competition including everything from
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fortnite to disney but a stock and a company are not the same thing. companies like netflix, stocks like netflix, they are tough to own because they are so overvalued and they have come so far, especially lately, but they are also tough to sell short because they are so, so short. i consider these like the old line about old soldiers. old soldiers don't die, they just fade away. this is a stock that i watch but not a stock that i own right now. not one i'm looking at. charles: you pulled up a two, three, four, five year chart, it is mind-boggling how much this stock is up. i mean, you're in it, you kind of got to ride it out for now, don't you? if you're already long the stock? >> i think that's a great point. it really comes back often to your own context. absolutely, if i had an appropriate size position, i was still in a winning trade for much lower prices, i would do everything i could to hold on to that. but when it comes to new money, where are you putting new money to work, i try to look forward to new bull markets that might just be beginning. everything from gold which we have talked about, to emerging
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markets, foreign currencies. what's going to be the next, the next netflix, the next tesla. that's where i think investors shed focl should focus for new money. charles: tesla cutting the work force by 7%. i know you're not a fan. i got to tell you, i look back at my records, i bought that stock at 20 bucks years ago. i kicked myself, i have been in and out of it many times. it's so tough because on one hand, you're right, they're lowering prices, seem to be struggle, but have this cult following and it just seems to come back. >> we kick ourselves as professionals all the time, could have, should have, would have, every investor experiences that. tesla, cult stock is right. if elon is sparking a blunt on the internet, it sinks the stock. go back to what you said about the short-selling pressure in this stock. more than three days of the flow is sold short, that means any
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time it goes up there's a lot of buying pressure that comes in. again, this is -- ironically, this is one of the stronger of those fang stocks, stronger of those unicorn stocks. potentially even not too far from all-time highs. tough to own, tough to short. a great indicator for the market but maybe not for new money. charles: quickly before i let you go, our audience knows about tesla and netflix. they mostly use netflix. they don't know emerging markets. they don't really understand that kind of stuff. it's hard for them to even buy something they don't understand. how does someone get to understand which emerging market should i buy, which currency should i be looking at? >> wasn't too long ago, look at the first decades of the 2000s, that's where the action was. brazil, china, those were all being emerging markets back then. i'm looking primarily at latin america. a lot of those emerging market assets that were thrown out in the last cycle. look at what's next, not what worked in the last cycle.
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i think you will find it mostly in unexpected places. charles: jonathan, thank you very much. appreciate it. >> have a great weekend. charles: now this. our next guest says if the left wants to make college free, it will end up being more expensive. come in, jason reilly, "wall street journal" columnist. make your case. >> traditionally, historically when we have increased student aid, the cost of college has gone up. student aid is only about 20% of the cost of going to college. so colleges rise, other non-tuition fees, room and board, books. i don't see any reason why it would be any different this time. charles: so is there something to be said because there was a major push in the last decade on college, there were suggestions with the last administration that somehow, they would find a way eventually to make it where kids didn't have to pay back their tuition. we have seen this massive spike in debt. college tuition debt, now the biggest form of debt in this country among households. >> yeah. that's the problem.
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college graduates make more money but you do have to graduate from college to get that degree, and we have a dropout rate of around 40%, higher than the high school dropout rate. what we need is for colleges to be more discriminating about who they admit. we need to make sure our kids are college-ready. that's going to happen in the k through 12 system. we're not doing a very good job of that and we are seeing it in high college dropout rates. what it means is you are saddling a kid with a huge amount of debt and no degree to help pay back that money. charles: david asman with us as well. david: the thing i love about your writing on this, you point out there's this industry that's developed, student aid industry. people go where the money is. it's not an emotional argument. they just go where the money is. there's a lot of money in the student aid program. there would be a lot more if some democrats get their dream and we have so-called free education, free college education, but that's really driving a lot of these admissions, people who shouldn't be in colleges, is these student aid programs get paid for it.
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>> and there's the belief out there this will help poor students. and it may help them in some way but you have to remember, most kids who are going to college are not poor. this will be mostly a middle class entitlement. we are also graduating fewer poor kids today than we were 50 years ago even with the increase in student aid. charles: that goes back to your k through 12. watered-downgrades, watered-down tests, to me it's fascinating we allow these local education systems to do that, to give our kids an "a" when we know they don't deserve it, and move them up to the point where -- i think the "boston globe" has an amazing article out on valedictorians who graduated from their school ten years ago, almost all of them are struggling. >> yeah. yeah. you are setting up these kids to fail. you cannot make this up. freshman year with a few remedial classes, it doesn't work that way.
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you have to do a much better job of educating kids in the k through 12 system. we also need, we have to make sure colleges have skin in the game. there needs to be some incentive for them to make sure these kids graduate, or to make sure they only accept kids who are likely to graduate. david: about grading, american university's just hosting a professor to come in and teach a course that all grading is terrible, it's racist, it's anti-poor people and therefore, we need to get rid of all grades. so grading itself is now on the line. they are going to pull it out of our college education system. >> we also need to remove the stigma of technical, of learning a trade, vocational education. there's nothing wrong with being a welder or plumber working with your hands. if you look at the sectors that experience job growth going forward, it's people without college degrees. those are the jobs that are growing and we will see growth in the next 10, 20 years. charles: we are seeing it. we need so many welders, we are
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short, we need so many construction workers, we're short. i like what you said about college with skin in the game. i see a college like harvard getting any sort of access -- they've got like $40 billion. i would love to see harvard back the loans for their students. if you think your education is that great, why wouldn't you subsidize it and get paid back when they graduate and get these great jobs? that's skin in the game. >> exactly. that's what we need. we need colleges to have skin in the game. they have to care whether these kids graduate. right now, all the incentive is for them to take all comers because they don't have to pay back those loans and if the kids don't graduate, it's not their problem. we have to reverse the incentives on that. charles: what about the political part of this? david just alluded to it with the grades. there's a certain political part to this that has been a disaster, particularly for poor people in this country. >> it is, and there's also concern particularly among republicans and conservatives about the ideological indoctrination going on in our
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campuses. that is mostly going on at smaller private universities, not the big state schools, where 90% of kids actually go. so if you're worried about that, it's not a reason not to send your kid to college but it may be a reason not to sthenend the overland. charles: news flash, it probably already happened if your kids are in high school in new jersey. breaking moments ago, secretary of state mike pompeo with north korea's top envoy, this is a photo op before they started their meeting. it's a high level meeting. we expect big news to come out of that as well. other headlines we're watching. a lot of headlines on trade with china, bringing the market higher. the u.s. is reportedly looking perhaps to ease tariffs with china to help get a deal done. president trump sent a letter to speaker pelosi canceling her overseas trip, his now infamous letter. canceled the trip just as lawmakers were about to board a bus, some were on this bus and it was heading for the airport.
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the administration also pulling its own delegation that was headed to davos next week. we have those details. it is day 28 of the shutdown and next, we are going to talk to the white house. stay with us. ♪ ♪ (vo) here's a question. was it necessary to create a luxury car more teched out than silicon valley? with a cockpit fit for aspaceship. hang on. radar that senses things the human eye can't. busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary? what do you think? ♪
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charles: check these markets, folks. david asman, dow up 236 points. this is a key area right now, i'm telling you. this is amazing. even people, even some of these pros who come on our show and have been bearish, have been talking about being flat, in cash, at some point, they're going to have to get in this market. david: i think about gary kaltbaum, for example, was very bearish, and look, you can't ignore the technical realities
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what the market is doing. i like the emotional realities, too, or the fact, the opposite of that, the fact that the market stays out of all the emotional panic because of what's going on inside the beltway, is the president going to be impeached, what's happening with the shutdown. the market just doesn't care. the market is focused clearly on the numbers and the numbers coming in are looking good. one thing they do care about, of course, is china and the talk or discussions that are going between the united states and china also looks good. so don't fight the market. don't fight the tape, right? charles: well, business also, let's just -- i want to share from the ceo of csx, one of the largest rail companies in this country. they understand what's going on better than anyone else because we guess a lot. we talk about what's possibly happened, they talk about what happened. over the last couple months, everybody was talking about trade, tariffs, interest rates, what's going on with brexit, government turbulence, all these things. must have some impact on the way you're running your business, but we go back to the same place we were a few months ago. everybody, us and our customers, are still very optimistic about
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business in 2019. they're making long-term capital investments, they're building and expanding facilities and they look absolutely fantastic. none of their projects have been pulled so there's reality and then there's all the scary stuff that we talk about every day. all right. now to this. no one from the white house, president trump included, going to davos. a delegation of four cabinet secretaries including steven mnuchin were planning on going until yesterday and that's when, of course, the announcement came after president trump sent the letter to speaker pelosi. president trump postponing her trip overseas after she suggested delaying the state of the union for the shutdown. the president followed up with a tweet this morning saying quote, why would nancy pelosi leave the country with other democrats on a seven-day excursion when 800,000 great people are not getting paid. also, could somebody please explain to nancy and her big
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donors in wine country that people working on farms and grapes will have easy access in. what do you make of that? david: i must say, there is a sort of tit for tat thing a lot of people are fed up with in the terms of way business goes on in the beltway but nancy pelosi has an image problem right now. first she took the hawaii vacation. then there was that big shindig down in puerto rico. then she was going -- now this trip was a serious trip she was going on. it wasn't a boondoggle by any means. they were going to afghanistan -- charles: but you don't have enough security for washington, d.c., you can't really have that much for -- david: just little optics. you had this big bus which was going to have a police escort to andrews air force base when the people are trying desperately to save every penny they had. it just didn't look good. charles: want to stay on this shutdown. day 28 and there's no sign of compromise on the horizon. want to bring in kellyanne
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conway, counselor to president trump. we are hearing a lot of stories now, the pain, the suffering, government workers going to food pantries, not getting paid, long lines at airports. what's your reaction to all those stories? >> i have great compassion for that. this president ran successfully for helping the forgotten man and woman and that includes everyone. but this president also knows his first solemn duty is to keep us all safe. you cannot have a sovereign nation that has safety and security with a porous nonexistent southern border. we know the drugs that are pouring in. we know the criminals that are coming here. i think there's a humanitarian crisis on both sides of the border. i'm always just so heartbroken to see these children taking this perilous trek because their parents in the northern triangle countries are being promised things that just cannot be delivered upon. mexico has promised them work visas and safe passage until their claims of credible fear of being processed on this side of the border and so i think what really has to happen is nancy
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pelosi needs to come back to the white house or send others here who are actually willing to converse and negotiate and come up with the money for border security. it is such a minuscule, small amount of money compared to our entire federal budget to keep us all safe. and there are other things in there that nobody is being honest about. the entire offer coming from omb in the letter to chairman shelby dated january 6th also includes many more immigration judges, $800 million for immigration needs, more detention beds and much more personnel because our brave men and women at cbp are saying they are completely stretched, they can't absorb this new capacity. we need them to come back to the table and negotiate and reopen the government. charles: is the relationship so frayed and acrimonious between president trump and nancy pelosi that maybe they have gone past the rubicon, maybe there's no way they can be the two to sit down and hash this out? >> i don't believe that.
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i don't think that's true. however, we have been very heartened here at the white house that other democrats have come here and certainly republicans, we had the problem solvers caucus here two days ago. i have seen some democratic members on tv and in print, particularly in their local papers and local media talking about how constructive and productive they thought that conversation was with the president. they would like to find a way forward. you know, there are 31 democrats in the house of representatives right now who represent districts that donald trump won in 2016. they won them in 2018. 22 of them are freshmen. let's get the freshmen over here. nancy pelosi said yesterday in her press conference before she went to take the trip that she didn't take, she said i'm not stopping people from talking, from negotiating. okay, then let's have them here. our doors are open and also, this government is trying to mitigate what some people are feeling, trying to reach out to the banks, reach out to the mortgage lenders --
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charles: american express, if you go to their website, they understand so landlords in the d.c. area understand. if it's going to be a war of attrition, that's scaring everyone. who can wait it out, who doesn't care about the p.r. hit. that's what people are worried about. of course, i want to also mention the ultimate impact on the economy, because of course, kellyanne, the longer it goes on, the more detrimental it becomes for the economy, right? >> well, this president is the one who is growing the economy. historic wage growth, unemployment numbers way down, the fundamentals are still strong, and this has been one of the most important aspects of his presidency, the prosperity at home, the peace he's trying to build around the world. of course, we are looking at all of that but first and foremost, to your point, you are making a point i think for the white house, charles. why not come back to the table, to get economic security and border security. you've got democrats who voted for secure fences act of 2006. if they want to call this the
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secure fences act of 2019, i'm sure we can arrange that. if they want to go down to the southern border and see what we saw that was in a local rio grande, where there's no wall, 705 pound seizure made just yesterday. i'm reading the news report. it's not getting any cover. 705 pounds seized yesterday. this is through the ports, outside the ports of entry. we know congress should be doing its job. you know, they leave here every thursday night. they're not trying to go on codels, they are going home. they are fully staffed. they are getting paid. they should work at least as hard as their constituents work. get back in town and work. charles: we know part of that is they get cover from the media so they can do that. i want to ask you real quick before i let you go about trade, because this market is moving big-time. there seems to be a lot of progress being made ahead of this big meeting with china's
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top economic czar, they call him, so handicap it for us. you know, this meeting, if it happens, could we get something out of it and how does this shutdown play into it? >> well, trade is one of the most successful areas of the trump presidency in his first two years. this president promised and has delivered on renegotiating bad trade deals, on having reciprocal and fair trades. not no trade and not all these multi lateral trade deals. but really, a trade deal that works for -- charles: are you confident we're getting one? >> i am. absolutely, no question. i think the president keeping sanctions on certain countries, having tariffs, renegotiating trade deals, the usmca, congress, again get back here and get moving on that, obviously still talking to china, of course, again and again, china's economy is not doing as well from what i read and what i see but this is a president who, when he thinks of
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trade, he thinks squarely about the american worker and there were american industries that were flat on their backs or worse -- charles: the reports that are out today, kellyanne, there was a report in the "journal," now we heard from certain treasury officials it may not be true but we never heard confirmation that mnuchin said it's not true. we got another report today, china is sending an olive branch to expediate imports from america. they are talking about dramatically increasing the amount of imports they get for us over the next six years. can you confirm that? have you heard that? >> no, not going to confirm. i will let the secretary or the president do that or deny it but i will tell you this. that's exactly what we see happening because of president trump's trade policies, that these other countries are going to open up their markets. you know, countries have been stealing our i.p., our technology. we have had tremendous trade imbalances. why should we have billions of dollars in a trade deficit with countries -- charles: i got to tell you, wall street is agreeing with you.
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i think wall street is feeling a lot better. even the experts who say there's no way to get there through tariffs, maybe we will. i have one other thing to ask you about. we have this big news, the buzzfeed report, saying michael cohen was personally instructed by president trump to lie to congress about the trump tower moscow. what's your response to that? >> the president weighed in on this in twitter this morning so i refer you to that. also, i'm very, very dismayed that the sourcing in this particular article are two law enforcement officials who are connected to the investigation. that should send a chill down everybody's spine. people should not be leaking information from investigations. i don't see verification of this from where i sit and i think other outlets that are running with this and putting on buzzfeed should be reminded about the unverified dossier and its origin. all i will tell you is the president weighed in on this on twitter and b, i'm very concerned -- charles: what did he say?
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>> well, he actually quoted a colleague of yours at fox, kevin cork, and kevin cork was characterizing michael cohen's past testimony and also talking about some problems that he's had testifying. i'm going to leave it at that because i come here every day to work on policy. charles: we know he has lied under oath in the past and michael cohen is headed toward prison. by the way, democrats are demanding an investigation. we've got so many of them, i think you would agree it will be great once mueller's investigation is wrapped up. >> we have said and let me say it one more time. we have complied with the mueller investigation. the president has called it a witch hunt, he's said many times there's been no collusion, he doesn't know anything about collusion. i will tell you as campaign manager in the winning part of the campaign, i didn't talk to people in moscow. i talked to people in north carolina and in michigan and this president won fairly and squarely. i'm just amazed the democrats and a lot of their friends in the media are talking about the 2016 presidential election and 2020 presidential election.
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what in the world have they done in '17, '18 and '19 to help this country? all they talk about are presidential elections past and future. get with us. come to the table, negotiate, reopen the government and get us the border security we need. charles: let's do it. all americans want to see this thing come to an end. thank you, kellyanne. appreciate it. very soon we will talk to the man who says big tech, you are talking amazon, google, apple, they are actually to blame for the country moving to the far left. he will make his case very soon. and the states like new york and california fleeing to low tax states like florida. we will talk to our favorite south florida real estate agent next. also, microsoft, they will invest $500 million in seattle to help the city's housing crisis. up next, we talk to seattle's king county councilwoman. the politics of seattle actually create this crisis in the first place? ♪
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a high of the session. we are crushing it in 2019. by the way, speaking of crushing it, we just spoke with the counselor to president trump, kellyanne conway. we talked about the economy, the border security, at the same time the fundamentals of course, we know on this economy are strong. we talked about nancy pelosi. she said she needs to come back to the negotiating table. also saying the freshmen democrats, they are actually welcome to come to the white house as well to help out the negotiations. david, my big question was the acrimony between president trump and nancy pelosi, has it reached the point where the bitterness won't allow them to have an honest-to-goodness negotiation? david: quick answer, yes. further answer is that's why it's got to be somebody other than nancy pelosi. i don't think looking at -- i know she's the speaker, i know she heads up the democrats in the house, third in line to the presidency, et cetera, but i think that acrimony is so strong that it's got to come from somebody else. what interests me most about what kellyanne said is she wouldn't absolutely confirm the
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reports that are coming out of the negotiation between china and the united states. she said actually, to your question, she said oh, that's good to hear, as though it was a surprise to her. of course, she's representing the white house, referred you to mnuchin, but i think -- again, you look at the markets. the markets don't care -- i know it's an important issue, the shutdown, it affects maybe more than a million people, but the fact is the market is laser focused on what's happening with china and there seem to be some real progress. charles: i would point out, to your point, for the audience that the prior six shutdowns t market was up. last time the stock market was down at the same time we had a shutdown was 1990. it's not that it totally ignores it but in the grand scheme of a $21 trillion economy that's on fire right now, that has the potential to even do better, it's kind of liking that a lot more. david: we have the potential right now if markets keep going in the direction they're going
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and the shutdown doesn't last much longer, this could be the biggest jump of markets in a government shutdown ever. the last time there was a government shutdown there was a 3% increase in market value. this time, it's more than that. so what's happened with the markets right now, i'm focus order the markets because they strip the emotion out of what's going on and just focus on the basics of the economy. charles: thank you very much. now we do have more breaking news from the white house. in fact, they just released a memo that bars all u.s. congressional travel on any government-owned aircraft during this shutdown unless the white house gives the approval first. now there's this. sales of mansions in south florida are surging as disgruntled taxpayers in high tax states like new york and california continue to move to low tax florida. come in, samantha dibianchi. you must be loving this. >> of course i am. i love new york and i love everyone there, and actually, it's always been about 50% of my clients are from new york or have some affiliation and that's going to get a whole lot
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stronger. believe it or not, the largest population migration between states is of course from new york to florida. it is predicted over the next three years, about 800,000 people will be moving out of states like new york and california and hopefully moving into states that are a lot more tax-friendly like florida. hopefully of course, buying from me. charles: well, you have always had the so-called snowbirds move from the north to the warm weather. you worked hard, you don't want to go through another blizzard but has it really gone through the roof of late? >> it definitely has because it's not just tax-wise, it's also price-wise. i was saying this before in past segments. what you can get here far exceeds what you can get in states like new york and california. for $500,000, you can easily get a two bedroom condo or a home, i'm actually selling right now a home that's $599,000 on the water, on the water, two
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bedrooms plus den, 1700 square feet. you're not going to find that in many other places including the tax benefits and including, of course, the weather. the grass is greener here and so is the money. david: the grass is also greener in texas. not to dissuade what you're doing at all, i'm very happy for you, but florida just came very close to electing a governor who was for increasing taxes. does that put a little bit of chill in this move down south? >> i definitely was concerned about that and i saw that, and thankfully that did not happen. if it does happen, again, there are other aspects other than taxes. the price definitely does make a huge play because as we know, prices have been going up and up and up. this year i truly believe is a year of the buyer. things are going to change, for a 30-year fixed we're at 4.5% so things are definitely going to change. i'm very optimistic about this year, 2019. charles: we have seen the last two weeks a dramatic spike in
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mortgage applications. i do want to ask you about microsoft. companies are going to invest -- i'm sorry. this is for samantha? i'm sorry. samantha, i will say see you later to you. >> we can talk microsoft, too. charles: you know what, you are going to get some microsoft money, too, no doubt about it. that 599 thing is sticking in my head. that sounds like a great deal. two bedrooms on the water? you may hear from me after the show. >> varney does miami, too. charles: i do want to move on to this microsoft story. $500 million in the seattle area to help with the housing crisis. i want to bring in claudia balducci, king county, washington councilwoman. claudia, considering the fight you saw with some of these big tech companies against proposed taxes to help the homelessness, the housing crisis, how big of an impact is it that microsoft is saying hey, we are going to give you $500 million?
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>> this is a really big deal for our region. we have seen jobs going up, very steadily over the last several years, but housing hasn't kept pace. to have a company like microsoft, one of our hometown employers, one of our largest employers, invest this kind of money in housing is a huge deal and a big game changer for us. charles: you know, the city came under a fair amount of criticism over the last couple years on how they initially reacted to this homelessness crisis. hostile architecture, right, you make benches you can't sleep on, you put bike racks under overpass. just making it hard for a homeless person to find a place to go to sleep. and people thought that was a cold, callous way of dealing with it. do you feel like now you got a better handle on how to approach this? >> first of all, i just got to point out i'm not from seattle, i'm from the east side where microsoft is also from. but this is a regional problem that we have, with housing costs, with homelessness, and you know, the bike racks and
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such were really a minor kind of blip. what's happening is our housing costs are so high that seniors are losing their homes. soldiers coming back from defending the country all over the world can't afford to live in places like where i live. so i think that we have a big challenge and it's not just homelessness. it's about people who are working people who can't afford to live near where they work. i think we are getting there, but even with an investment of this size, we are down several hundred thousand housing units from where we ought to be and we in government need to be working to make sure that the private market can build housing and people can live there. charles: how do you justify sort of lower priced homes and by the way, this is a national issue. every time housing numbers come out, we see where if you have companies where engineers are making a lot of money, people will work at these companies, make a lot of money, but if you don't work for one of these companies and you want to live in seattle, there's no place, you can't afford it.
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it's the basic problem. how do you incentivize home builders to make lower end properties available? >> we are working against the law of supply and demand, frankly. people are making a lot of money and are able to afford houses and demand drives the costs up but there are ways around this. this is what microsoft is getting to. there are programs, there's the government tax incentives that come from the federal government that enable companies to invest in housing, they can make a return, it might not be market rate but they can afford to provide housing that then isn't so expensive. one of the things we are working on in county government, we are trying to find ways to bring the costs that government applies to housing down. we can do things like we can change land use regulations. we can reduce costs that we charge for permitting, for sewer connections, little things that can add up. charles: it is fantastic to hear someone say that, particularly from your neck of the woods. thank you so much, claudia. thank you. appreciate it. >> thank you very much. charles: let's check on the
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price of oil, folks. oil, you know, also, you talk about the market, this has been one heck of a move, too. now you see crude at up $1.52, $53.59. your national average a regular gallon, $2.24. still relatively low in the last year. checking the price of gold, gold has been catching a bit but not today. folks are rotating back into equities as the markets break key resistance points. and of course, checking on bitcoin. many people believe bitcoin must make a stand in 2019. not happening today. we will keep an eye on it. then there's this. you know the companies that have machines at grocery stores that allow tyou to change your bills -- this is what they will start doing, they will allow you to change your bills and sell bitcoin. a small network of crypto currency dispensing atms. we will see what happens. david asman shaking his head. not a believer. david: good for them. we'll see what happens.
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let the market decide. charles: up next, we talk to someone who says big tech companies like amazon, google and apple are to blame for the political -- for politics, rather, in general moving further to the left. he also says liberal ideology is being pushed at colleges and he is going to make his case, next. ♪ our grandparents checked their smartphones
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but ocuvite has vital nutrients... ...to help protect them. ocuvite. eye nutrition for today. charles: folks, the market at highs of the session and a lot of excitement, david, over maybe something really happening on the china trade deal. david: you know who looks at these numbers as much as we do, is donald trump. donald trump took credit for the market when it went up spectacularly in the year and a half after he was president. he's looking at them now. he knows there's a correlation between positive news on china and the markets. i think that's what's helping move the market up as well. charles: he said as much. he said once china trade is resolved the markets will go back up. he didn't seem to really worry during that meltdown in december. maybe this is a key thing. meantime, i'm looking at stocks that were down, up. tiffany made the turn. lululemon is up. all right, folks, the market is absolutely exploding. we'll be right back.
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charles: now there's this. jpmorgan had a banner year in 2018, boosting really its record profits and while jamie dimon is getting paid as a result of it, receiving a total of $31 million for the year. that includes his base salary, just $1.5 million, $29.5 million more with bonuses. dimon's pay package now, $2
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million, up $2 million from 2017. checking shares of jpmorgan stock, doing pretty good after stumbling a couple minutes ago. now to this. big tech, our next guest making a case that the democrats' radical shift to the far left is the fault of big tech companies. want to bring in victor david hanson, senior fellow at the hoover institution. victor, state your case. >> i think one of the reasons we are seeing the word liberal fade and progressive take over is that all the great money, the big fortunes in america as you know are no longer in steel or farming or transportation as much as finance and high tech, whether that's amazon, facebook, google or the bloomberg or buffett fortune. they are up a magnitude and level of activism we have never seen, whether you define that by "the washington post" op-ed p e page, so that is kind of a
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perfect storm. this generation of students is the first one to be trained by the children of the '60s. so they are pretty much indoctrinated and when you add tech's influence in massaging or warping searches, you have kind of an insidious chain of events that makes it hard for conservatives. finally, barack obama, remember, was the first democratic presidential candidate, successful one, to have won the popular vote without a southern accent in 50 years, since jfk. that progressive administration moved the entire calculus to the left and finally, i think the republican party, whether it was mccain or romney, they lost their sense of deterrence. they played by the markets of queensbury rules and they didn't react to this radical shift in ideology on the part of the left. it was a lot of factors, but the fact is the democratic party is a progressive party of the very very wealthy and the very poor.
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david: david asman here. hasn't it always been the case that a lot of corporations, once they get into the foundation stage when they build this massive amount of wealth, they create these foundations, the foundations always veer off to the left. that happened with the ford company, ford motor, with the ford foundation, lot of other things. it just has a tendency to happen. it's not something new with new tech, right? >> it's a little bit new, david. i think that's true because once they set up a foundation, they don't get capitalist or business people to run them, they get academics and intellectuals. sort of like vultures descend on that rich pot of money. but what is new, though, is i don't think we have seen fortunes like facebook and google, while they're accumulating that level of capital, they're doing things like changing the nature of searches to be, say, anti-pro choice or to censor candidates'
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advertising. or jeff bezos to invest in "the washington post" the way that he is. i think we have never seen money of this magnitude used in this way so actively. charles: i think you're right. there's a great book that actually says these folks might be worse than robber barons of yesteryear for many reasons. i want to ask you one more thing. you also say liberal ideology is being pushed in colleges as well. >> yeah. i think so. i'm 65, charles, and i was taught by people who believed in disinterested education. they were liberal but they came out of the '50s and '60s. my generation took over who didn't believe that, and they were radicalized, they are the college presidents, the deans, and so these young kids never had a traditionalist professor. when you add the fact, you know this better than i do, we haven't had 3% gdp for ten years and we accumulated $1.5 trillion in college debt, that generation
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was especially susceptible to progressive and socialist indoctrination. ignorance and arrogance is a bad combination. charles: got to leave it there. appreciate it very much. thank you. let's check on some individual stocks. starting with walmart, they have reached a deal with cvs after medication costs put their prescription partnership at an impasse. the stock is up more than 1%. also check american express reported their fourth quarter profits. actually, they came up short. the stock was down but it's turning around. some issues with credit cards, not using them as much. uncertainty over china trade has american ports busier than ever. we will go live to the port of los angeles with details. also, verizon is joining the fight to eliminate spam and robocalls. up next, we tell you what they're doing to help customers combat robocalls. ♪
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anti-robocall tools starting in march. customers will have free access to its third party spam and robo protection features. the tools are meant to rule out illegal robocallers. trade talks between the united states and china still up in the air but the port of los angeles seeing an influx of traffic and goods from china. hillary vaughn joins us. she's at the port of l.a. what's going on? reporter: hey, charles. well, this port had its busiest year in the entire century. they have been open 111 years, and 2018 was a record-breaking year in terms of how many imports and exports they sent out from this harbor. 9.4 million just last month. they saw over a 15% increase, a surge, from in december of 2018, comparing that to december of 2017, and what's happening here is really, you are seeing this port be on the front lines of the trade fight. this is the fastest route between asia and the interior u.s., so a lot of imports from
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china come through here, and what's happening is u.s. companies are trying to up their inventory, get as much over here as they can before new rounds of tariffs kick in potentially moving forward. they are trying to get in on it now, but there's another interesting thing going on here. you're seeing a lot of empty containers being shipped back to china, because companies in china are not necessarily reciprocating. they are looking to other countries to get their products instead of trying to rush products from the u.s. over to their borders. in the port of long beach, 186,000 empty containers went from that port back to china, nothing inside them. and that's an 11% increase when you compare that to november the year before. so really, what's happening, this port is busier than ever, it's also causing some logistical concerns because they have containers as you see behind me, and they are running out of space to put them. charles: in a way, it's a good problem to have. it's always something at that
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charles: we are at the highs of the session. one viewer wanted to know, sent a message on facebook if markets only go up when stuart's out? what do you think? >> you know, absolutely not. i've seen stuart on air when the market was up to 26,000. unfortunately you're wrong. i think that was a sarcastic email. but we are on our way back to 26,000, charles. i'm wondering, when we were at 26,000, everybody said we were top heavy, bound to come down a little bit. i wonder when you look at a
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chart like that, we've seen a lot of intraday charts past couple weeks, to the new year whether we're getting to tippy-top levels? i don't know. charles: valuations are low. forward p-e ratio is under 15. >> that's true. charles: less than five-year average. growth is solid. not at pace of last year but we will grow. i'm excited by the resolve of this market. going back to the post-christmas eve. since then the resolve. intraday reversals. two days after christmas we were down 600 points within hour ago of trading. ended up 300 points. the breadth, christmas eve, 1100 stocks on nasdaq at 52-week low. 1100 stocks! a week later. only five. it was oversold. >> i will call my stockbroker right away, buy, buy, buy! when not just when stuart is off the air market goes up. he has been on the air when the market is doing fine.
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looks likes today you don't have to change anything in your portfolio. charles: no you don't. there will be a lot of pressure on folks out there to get in this market. passive investing works both ways. neil cavuto, give you 300 points on upside. neil: i hear about people that write nasty emails. charles: never to you, neil. neil: just to me. the dow is up session highs up 300 points. what is driving that indications china wants to make amends to the united states. bloomberg reported it committed to a six-year buying spree of imports to the united states. they have to make good on that. e we've been talking even though the treasury shot this down yesterday, about easing tariffs ahead of whatever deal is announced. that was deemed to be a step in the right direction, ease the tensions between the sides before formal talks kick off next weekend. talk
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