checking on her i appreciate it i'm so honored matt, with thank you very much. all of the best to you and your father. matt burdge. >> we have to go to nfr in december. that is great. take it away "varney & company." >> willingly maria. thanks very much. good morning everyone. can't wait, this is one event i will stay up for, the "state of the union" message. i'll stay awake not so much for the policy or the politics although that will be fascinating. no -- i want it see the drama. i want to see the interchange of prurp and speaker pelosi. he wants a wall, she does not. they will both be on camera this will be a television moment also watch for a north korea summit announcement maybe. maybe a meeting with china's xi jinping. energy infrastructure this will be about pipelines, so we can move our oil around, and maybe an olive branch on the wall. speaker pelosi's facial

expressions will reveal a lot it starts 12 hours from now now look at google down sharp isly premarket. why? it is spending a lot on data center an new hiring and analysts don't like that. ignored goggle's youtube success which now has two billion monthly users. the is to stock is down now i wr where it is going to close. now look at this. overall the dow will open higher again -- remember the record close 26,828. monday's close is about 1600 points away, not that far. getting close. fed chair powell has dinner with the president interest rates alone inflation is low. profits staying strong. markets up. what happens to your 401(k)? if tonight as xi trump summit is announced. "varney & company" is about to begin.

>> the state of our union is in need of drastic repair. the "state of the union" under him has not been god and least been divisive, and i think he's putting us all in harms way so he's not worthy of being listened to i'm not looking forward to his "state of the union" and i hope that people would turn to television -- >> stay awake. that's the democrats talking down tonight's "state of the union" address. ash -- deirdre -- it's a tv moment. it's a tv moment one that we're waiting for. >> yes. i can't wait for the sketch because it is so right for so many interesting little facial tick on nancy pelosi, the perhaps the sneer maybe the straightforward stare acknowledge nothing and stand up when republicans stand up and mike pence to her right i believe so a fascinating -- >> and this is we were waiting for this right january 29th this is the new date, the approved

date i guess this theory by both sides and what i think is interesting from the democratic side so we have somebody who is officially chosen by the party right stacey abrams and bernie sanders. >> there's a second democrat response from bernie sanders? >> streamed on facebook -- >> we want one, two -- >> from facebook and twitter but i think it shows okay with a little bit ahead of 2020 but already both sides pretty fragmented. interesting well i have this one for you more politics actually senators schumer and sapgders are going to introduce a bill restricting stock buybacks. you can't buyback your own stock unless you pay your workers $15 an hour and give them hornings and a pension fund and company supports the local community. listen to senate minority leader chuck schumer. roll tape. >> the corporate america which used to care about workers in communities and in addition to their shareholders, now is just for the shareholders maximizing

stock price with no help to the workers. all right joining us now is james freeman wall street journal editorial board guy. so now, politicians are going to tell private enterprise where you may and may not invest your money had. smg right. it's amazing these two guys that are -- case is so dishonest, they are talking about about how in the 1960s company used to be so wonderful investing so much rewarding workers, of course, in in the 1960s both of those guys were spending a lot of time criticizing companies telling us how awful they were so this is a change. a change they've seen all of the time in every decade but basically what they're saying is corporations buying back stock which is great for investors for people who sell get to reallocate and own a big ire share of the company earnings but shares are worth or more all good. their case is that it limits company r&d completely false. this is essentially a golden age

of corporate research and development in the united states. just to show you how poorly timed their argument is i brought a visual aid stuart this was a story of the day. google parent alphabet investing so much money. their revenues are soaring but margins are shrinking because they're putting 6 billion dollars per quarter into research and investment and invest and dwot to create those new innovation so poorly timed it's -- unbelievable coming from those two and we're having the on soot which is a golden age of corporate r&d. >> if we are indeed james stay there for a second move on senator and schumer and going after dividends here's the quote. some may argue that if congress limits stock buybacks corporations could shift to issue a larger dividend this is a valid concern. and we should also seriously consider policies to limit the payout of dividends. perhaps through the tax code. come on in market watcher jim

joining us this morning in new york. what's this going to do to our viewers who may be absolutely living on dividends from the stock big board? >> oh, please is my reaction. that -- you just have to look at china or japan to know that states -- interfering with corporations doesn't lead to the kind of productivity growth and economic miracle that we've had had in this country this will never be passed into law. it is the beginning of the presidential election that democrats staking out a position on income inequality we will have a debate on the subject. but i would have to say this is a weak start on the part of -- of schumer and sanders it just you cannot legislate will economic, you can put incentives in and rewards in. but you cannot tell people how to run their business. >> i'm going to give our audience a very big number and number is 26,828 and that was the record close for the dow industrials. hit that last october. we've had a wonderful january, pretty good start to february.

are we going to surpass that old high for the dow? >> let me tell you two thing hads have to happen. first of all stocks are up a lot from christmas eve they were down a lot but you don't go up in straight line but if you do two things you need the trade deal request china. signed seal and delivered and over this budget negotiation, and have them figure out what they do in terms of border security if both of those things happen. that i think the corporate earnings picture even though first quarter could, can be a little bit soft corporate earnings picture is enough to profell the market down through the old heist. >> it doesn't have have to be a total deal with china. you have to have a smiling face. >> optics it is optics where they can hug each other both sides can declare a victory and better than what we have -- but the chinese can't really give him all that he wants so they could give him a down payment. >> those two things you can -- >> you can't get a new high without those. but we do -- okay. i think so. i think so 27,000.

28,000. you know you don't want to get too optimistic you've come a long way i would say a moderate new high you figure corporate profits are up 16% this year, and ratio should sort of be in the range of where they are. so i would say you're basically where you are in stocks where you were a year ago. before they started to therein. so you can go up maybe 6%, 7% from here. >> still take us nicely higher. that would. yeah. i think if you -- if we get those two events. the economics qowld take you there. >> let me get to google because look at the parent company that's alphabet the stock is going to be down at the opening bell we're looking about 18 dollars down. more money comeing in revenue growth slowed a bit. i don't get this had, jim i'll go to you first and you james i don't get this. >> google is doing what they should be doing investing in the future just look at sears to see what happens when you don't invest in your company. so i think this is a short-term weakness.

>> james freeman they're ignoring two billion monthly users on youtube. now, come on what's going on? >> yeah. the existing businesses are crushing. there's no doubt and they're dominating in mobile advertising as they have been, the big question market is as a whole this r&d bernie sanders and chuck schumer say no one is investing in rd google parent alphabet is investing so much in r and dshes and so much of it not very transare parent to investors. but those investors are saying we not sure how much of a leap of faith we want to take in your brilliant to create future products. they've got -- they call them other bets that's the category they don't see a lot of what's going on within that category of other bets. it's a lot of money, and it's a lot of smart working on projects. but we'll see. >> they haven't monetized youtube fully yet. they have two billion monthly users i would have thought -- >> analysts say that probably

last year the revenue was close to 20 billion just for youtube. but the problem is federal governmentibility may be very, very slights. i think one thing in avenue revenue two-thirds of the u.s. digital ad market but amazon is coming i think part of the question about the stock is another competitor coming in the field. >> i don't like google i think they're big brother. >> do you use it every day when you search? >> i'm not anxiousing that question. [laughter] i think the stock market might rebound from this moteddest opening bell loss can we leave it at that? i know you with all oppose me. look at the overall market please. futures pointing high per, thank you very much. up about 100 points very roughly. right there at the opening bell. then we have amazon they have got a plan to protect their warehouse workers from robots. they're giving them special belts -- so that they can be spotted by the robots and avoid a crash, collision injury. we'll tell you how it workings. politics -- could be joe biden could joe biden be democrats best hope?

new polls suggests that the case is only democrat who is beating trump we'll have numbers for you and darling of the left congresswoman alexandria ocasio-cortez revealing about a green house emissions completely. it won't come cheap. it will cost trillions of dollars how does she pay for that? we're on it.

new tweet from president trump here it is tremendous are numbers of people are coming up through mexico in hopes of flooding our southern border we have sent additional military and we'll build a hule wall if pes in we have a real wall, this would be a nonevent remember "state of the union" tonight. joe biden is the only potential democrat presidential candidate to lead president trump in a head-to-head matchup. now that's according to a new poll of iowa voters. >> so the college interesting taking the eight democrat candidates only by beats donald trump 51 49 and warren by four, harris by 6 o'rourke by 6 also by the way in a potential matchup with kasich on republican side trump 09, kasich 10. >> good lord now that's fascinating number hads. >> pretty impressive. i did not expect the one joe biden and question for biden o.c. is he too centrist for democratic party?

>> a democrat can he still be a did democrat socialist party we'll see. congresswoman alexandria cortez plans to introduce a few details already known in a lead to the going for -- net zero green house gas emissions. quote, through a fair and just transition for all communities and workers. it would generate millions of good high wage jobs she says joining us now peter are you buying this peter i'm not. are you? >> in order to achief the transsuggestion xi envisions we have to install globally 100 trillion kilowatts of capacity over next 30 years. now germany pulling out corks tried to do with what we newable established a small fraction it have. it is impossible to do what she's describing according to physics, with this is you know

there's ignorance, there's willful ignorance and then willful and malicious ignorance that is -- objection cortez the left is using global warming climate change, the environment as a stocking for socialism they can't take away all of your money and accomplish this but they will. that's what this is about. this is a demagogue. >> her proposed legislation is cowritten with senator ed wart in democrat? the senate. j does that surprise you? >> here you have someone only been in congress one month, 29 years old. teaming up with a senior in the in the senate, and proposing the green new deal. i mean the democrats really are taking this very, very seriously. and the the green new deal is going to be part of a many of the presidential campaign -- presidential candidates campaigns. >> well, think about who we're talking about. this is the party not the change

the subject that l wants to tell us a 40th week abortion is not but rather choice. this is a party that no longer believes core american values ad it also shows us what's going on with immigration. basically what you have in action cortez are american values they are assimilating us to bring the kind of socialism that destroyed venezuela and frankly mexico here. you know, it isn't that we're going become that but we can easily become mexico an you won't be able to go outside your door without getting shot and if you say hey aren't you going over the top think about what the last eight or ten years have been like in chicago. >> i've only got 30 seconds left you tell me is america ready to vote for that left wing agenda? >> i think it could. yes. >> i think it could. >> societies have done dumb things before and so think about how things are going. did you ever think that new york

state abortion bill would have been possible five years ago? did you ever think that gay marriage could be so affirmed 15 years ago? you know, it's not the -- >> not my concern. i'm more in terms of money and this drift of socialism -- >> whole list. there's a whole list. there's a whole list that faculty at my university and at the state university of new york for example and columbia or nyu and harvard are doweling out and you talk to young people. and they believe the left like true believers this is a list. j but we take your point we like it when you're animated. mr. murphy. dges the way with i came out of the jar. [laughter] you like this one new high state income revenue plummeting by billions of dollars because of the new tax law. we have the numbers for you. the exodus --

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we talk about the tax exodus all of the time and predicted it actually look at the headlines from out of state buyers flock to miami. why are they doing that? because new tax law it is a tax exodus. governor cuomo of new york just announced that state income tax revenues dropped 2.3 billion dollar. because of the new tax law.

>> ouch. james freeman, the exodus has begun. >> yes it has, and you predicted it it shall after that 2017 tax cut was enacted when the federal government said that taxpayers of the united states are no longer going to reward states like new york and new jersey and california for having high tax rates on the rich, the message was sent. obviously mr. cuomo a lot of other governorses in these red excuse me in these blue states have not wanted to listen so now here's another big message. people are fleeing. florida is number one destination no state income tax. you mention new york, i heard last year from a financial advisor in the garden state he said my clients are are fleeing new jersey like it is on fire. >> sure. sost there this -- flashing warnings and to this point new york, new jersey, california, illinois, they don't

want to acknowledge them. the politicians there don't want to reform. eventually i think they will have to. because of the competitive pressure, and that may be you go all the way to where it's -- where it's insolvency in crisis but eventually this competitive pressure will force them to rationalize tax rates in these states. >> i can't help but hope james that i have a slim confidence in new jersey, new york, illinois reducing taxes. i just don't -- >> no indication yet you look at new jersey responded to that federal tax they raise taxes by raising tax as this past year. so the reform movement has not begun but i think enough of these people flee the state eventually the message will get through. >> we love your passion james because you live in new jersey. >> you've got to believe -- the dow is going to be up about 100 point right there at the opening bell.

nice gain for the nasdaq as well. look like another rally folks we'll be back with with another rally in a moment. ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest.

talking on the set. a time why not? 20 seconds ago and that market will open and we think it's going to go up another 100

point. which will take us 100 points closer to the all time record high for the dow jones industrial average. 26,800. you know, we are getting close. here we go in three, two, one, we're up. and we are running ladies and gentlemen, right from the get-go. up 175 yesterday, up 48 points right now up 54 points up 61. gradual climbing there. left-hand side of the screen lots of green, most of the dow stocks the dow 30 are in the green, they are up. so right now a few seconds we're up one quarter of one percent. show me -- no, no never good -- show me the s&p it is up a fraction .15% as for nasdaq probably not doing well bearing in mind google. it is up .14% had had a great day yesterday tech stocks at it nicely here's google. now you see it is coming back. but a half hour agos it was down 20 bucks. now it is down 8.

and i wongd per we have anything to do with that. because i think this -- i've been talking up i don't think that drop is justified bearing in mind the results. >> you're laughing at me that's what you're doing i know you are. mike murphy is here studying his phone right there but he's with us. dr barton looked up from his phone good guy. deirdre bolton welcome aboard and ashley too. okay we steadily creeping high per it has been a great year. the record high for the dow is 26,800. are are we going to beat it murphy? >> we will for sure we'll beat it companies are innovating stuart company is doing fine and ask when i think when we get the geopolitical like china, take the wall take the potential government shutdown we get past that earnings are doing enough to market is doing enough. the fed so doing enough to give us new high on the market. >> now we're up 116 points. right there right in first minute so we're up today. 25,350 is where we are.

all right look at that's the record high on your screen. 26828 we're pretty close the parnght alphabet this have this completely wrong. okay it is down a third of one percent. another thing that should be down. dr -- let me explain myself. >> yes, sir. investing 6 billion dollars in r&d exactly what a company should be doing for future growth i think analysts have it wrong. >> i think analysts have it wrong i'm a buyer on this pullback stuart and there's a really good reason to be a buyer of google. and that had is the number 21.5 that percent of revenue game they have since last year. fang stockses are up 21.5 and 27%. those four stocks versus last year's revenue, that is still where to put your money and google is getting hit because of their cost per click their advertising revenue per click is

down, that is a concern. but i think you're correct they're doing all of the right thicks. it just turned positive we have clout. >> they hired more than 4,000 more employees in this last quarter . most of them went into the cloud division. they're a distant third in the cloud services behind amazon and microsoft. but that means there's plenty of room to grow. >> and right now tiff that life sciences division as well i read something about your shoes can tell you if you're gaining yeah, gaining or losing weight gain or or losing weight they'll tell you right away like smart watches. >> i don't need google because i think of them as big brother. but -- when you spent -- when you look at strictly financials of the company, about i'm with them. revenue is increasing every year for last ten year and stuart when we talk about the big tech names we're looking for innovation, and google spending money to innovate, that's what you want to door >> thank you very much indeed i'll move on while we're down two intowx move on now. all right fed chair powell had had dinner last night with the president and treasury secretary

mnuchin at the white house. dr, you make anything of this whatsoever? >> well i have one issue with it and that is i don't think that mr. powell as fed chairman should be listing at all to the president or anyone else. they should not be basing what he's doing on anything but the data and their mandate when he get outside of that box we get in trouble. >> much to do about about nothing, the president meeting with head of the fed not -- nothing to see here. >> he hadn't met with him by the way. since he aa pointed had him in november 2017 it was actually the first time they sat down and had a conversation and a lot of people wondering is this going to be able to happen because the president has been critical publicly. dges now he's meeting with had him because jay powell is dong what had president wanted him to do go easy on interest rate hikes up 100 points. 107 to be precise moments ago we were up 125 but we'll take 105 on upside boeing just hit all

time high. 400 dollars per share. that's worth 30 points for dow industrials. >> so much for trade worries. you know, maybe that's trade optimism that's right are. maybe so. better profits, plus, the all important rosy forecast from estee lauder look at it go 10% high per better revenue at a ralph lauren my daughter work there is. stock is up 9 bucks 8%. let's go polo. revenue rose slightly at viacom parent of nickelodeon a lot more and stock is up 2%. higher oil output, higher prices, gave british petroleum a nice boost the profit came nice boost, stock is up 3%. it has a solid yield i think the dividend is 5 or 6% check price of oil we're back to 52, 54 dollars per barrel still down. still down a bit. just a fraction, and gasoline is now averaging 226.

it has been around that level for weeks now. and i'll take that frankly. senators schumer and sanders are beginning to introduce a bill which will restrict stock buybacks. that's terrible. >> you know what they've done is seen how europe and a japan have squashed their economies by doing these source of regulatory things and they say we would like some of that stop growing so much america stop prospering so much and squash this economy too. >> i don't know if this was right at least it is present retail but this came structurally false structurally bad. >> plus, they get to restrict raising dividends. >> that's terrible. >> it is a way -- government getting too involved in businesses and then if you really want no innovation put it in police and a you'll see what that looks like. >> have politicians take their hands off of companies money. it is the company's money it doesn't belong to senator schumer.

or bernie sanders. >> that's my opinion. take a look at disney please they report after the bell today what are you looking for in that earnings report? >> couple of things what they say about how they're progressing on their new streaming service coming out this fall how the fox -- how the fox buyout is going, and how the espn numbers are looking. because that's their central place. >> that's what it's all about the espn where the whole ball of wax is all about. >> now getting people buy -- pay for espn à la carte see if people are changing from one cable bill to now paying bits and pieces pay for netflix and sports on espn see how that looks. >> and espn margins have been going up while viewership has been going down so not totally a negative story. >> bob, iger will not stay with that company forever -- i think he's a brilliant executive. i wongder who will replace him i think the search is on actually. what do i know? [inaudible conversations] [laughter] >> not a corporate management

bone in my body. moving along says the producer. movie stars gwyneth paltrow teaming up with netflix for her own show. >> producing dock docu-series hg doctors experts, researchers spiritual basically a wellness brand as you may know. stuart, but -- it is her own website and it is kind of a video blog so it's basically if you look from the netflix point of view just trying are to do more original content. to a specific group she has known to reach millennial women for example a group of people that a lot of people -- are interested in had. >> i'm told this website known as gl-o-o-p i'm told that it regularly presents thousand dollar per small container of facial cream. >> lots of recommendations. >> yotd, so gwyneth paltrow from big screen into venture capital she is raised a lot of money the last evaluation was 250 million

dollars on this business. but she's doing a great job running the business. and now, she crosses backover to the big screen she's going to be on netflix touting her business. it is great for her and or her business and her investors. it is also great for people on netflix who get new content. >> i'll never say another word -- rk she's doing all right. sort of like a female dr. oz. >> well done gwyneth paltrow leave it at that. all right. amazon giving warehouse workers special belts -- that can be desepghted by robots in other words when they're going around they won't crash into workers. now you jumped into the robot zone. they wouldn't have any program to not run you down as they're carrying these giant palettes but if you wear this belt suspender combo it will -- it will contact robot to realize you're there from further away and it will move around you. >> really? >> yes. so instead of putting this technology on the robot you're putting on human. >> those are amazing 30,000 square feet and there are just

these huge i don't know nine sort of stacked -- robotics columns moving around. j have you been inside one. fulfillment centers. really it is impressive and creepy at the same time. >> they flip the switch and make robot go after the worker. [laughter] >> yeah. good luck request that. it is a movie. absolutely a very elegant solution a low cost elegant solution to a difficult problem instead of trying to build all of the ai into the robot tell the robot there are thing you can't hit and here they are. beautiful. >> i love it. okay 9:40 eastern time. dr you're done murray fur all right thank you very much. thank you stu holding on to 100 point gain right there 25,344. that's a quick check of the big board. what's next? a tease here question go. republican congressman francis rooney making a push for a carbon tax. he's a republican. what is a republican doing asking for demanding high per taxes? well, he's on the show next hour

and we'll ask him. less than 12 hours away from the president "state of the union" speech question, which trump will we see? will he go on the attack and call out democrats or will he push a message of june? i we'll figure it out for you. more varney after this. - as the original host of wheel of fortune, i was blessed to be part of building one of the greatest game shows in history. during that time, we handed out millions of dollars to thousands of contestants. and i thought, what if we paid the contestants their winnings in gold instead of cash and prizes? back in 1976, we had a wonderful contestant named lee whose three-day winnings were valued at $12,850 and you know what? that was a pretty big haul back in 1976.

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which will provide you important never seen before facts and information you should know about making any gold, silver, or platinum purchase. - don't wait until it's too late. call to get your free copy of my new u.s. gold report. inside, you'll find 25 reasons i've covered on gold ownership and start owning gold today. - with over a quarter of a million clients worldwide, we're one of the most dependable gold distributors in america. give us a call today to get started. well look at this high of the day, up 120 points on the dow industrials. that is the best part of the half percentage point. 25,300 is where we are. the city of tempe, with arizona sued for 10 million over an über self-driving death deirdre. >> so basically the family is suing tempe, arizona saying that city created unsafe but

territory and unsafe living condition and therefore their family member died so a 49-year-old whom happened to be homeless and a what's at the heart it have this, is that the city had had decided to basically fave over a median where people were not supposed to cross the road. so apparently the über, the car itself misread what was road and safe pedestrian space. so the lawyers have to take it from here. >> sat some point the law has to sort out conflicting claims over self-driving car. who is liable and on what occasion? ening and what kind of areas are safe to be testing these until they're completely perfected. >> this is first term court case. against the city. >> against the city thanks deirdre. well the "state of the union" come on in steve hilton host of the next revolution on fox news channel sitting next to me tonight. preparing for coverage. now then, which trump do you to see tonight attack truch or

bipartisan unity trump and which do you want to see? >> what i would like to see is -- effective trump and that is -- when he's moving things forward and getting things done and that means, i think, to bipartisan bring everyone together because in the end it is congress that makes laws if we answer these big issues like infrastructure, health care really important remember it is health care that's the main reason that republicans lost the house. i think it is crucial for republican ares going forward. it is not the president that makes the laws but it's congress. he's now lost one of the chambers therefore they have to work together if you're going get anything done so ting that's spirit of xriers that's what they're signaling by the way that's the message that's coming out of the white house they're using this word comity to get the message so question is will that last yongd speech tonight? i hope it does. >> you know what i'm looking for i don't know what you're looking for, facial expression of nancy pelosi when the qawl wall is

discussed you know what will happen here the president stangdz over his left shoulder will be seated, nancy pelosi, the camera will be here looking at it. the camera will not be allowed to zoom on nancy pelosi's face, it is a piece camera, and that's what we're looking at. exactly. and will he -- specifically talk about some of the things that some people might have said, for example, about the morality of the wall with and if he gets into that character i think that -- >> with a smile he will make nice ping as a way of defusing any anger that -- >> i think it is important to remember that -- he as he definitely is very clear from the way he speaks about her. you could just tell i know from people who spoken to the president directly about it hes does respect her in a way that he doesn't necessarily from his other political opponent that's why for example, he hasn't piled in there with one of his famous nicknames. to nancy pelosi. >> that's true. he has a respect for her. he sees her as a tough

competitor, and so i think that -- that you know he in the end he wants to get things done and therefore i think he'll handle it in a charming way tonight. >> from a financial point of view, the one thing that i really like to see it announcement of a summit between president trump and xi jinping. now, what's our chances of seeing that? if there is a meeting, that's very positive. very positive and i think that -- the -- i think that the word coming out again hearing speculation, about a meeting perhaps at the end of this month, alongside another very important the second summit with kim you know i think that the crucial thing here will be for the president to have moved things forward to even up the balance on trade. but the real question is will he deal with the -- and if he unlocks it is that, that will be great news for the economy for investment were if business to keep thing going in a positive direction. but will he also keep the pressure on for longer term

issues for example, the intellectual property theft not related to trade but the way china behaves. that is something where you can't take the pressure off even though you want to move thingses forward in the short-term on the economy. >> i have pledged to stay up late to watch -- >> that's something. really something. i couldn't watch the super bowl. but i'm going to watch the "state of the union." [laughter] you will too. steve hill it been a pleasure. thank you, sir. see you soon. all right make sure you're tuning into pongs business for the coverage of the speech tonight. lou dobbs take it is over and neil cavuto at 8 trish regan at 11 full coverage on fox business. a nice rally again, 25,350 just about, the dow is up 107. phoenix, arizona, dealing with a huge pension crisis. one lawmaker has a drastic solution. he wants the city to stop spending any money until they get their pensions debt under control. now that's radical.

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>> still up 120 points on dow industrials and big winners on dow exxonmobil and microsoft, switching gears about there is a pension crisis and a half, in phoenix, arizona, drastic

measures being considered to deal with it. joining us now is phoenix councilman, qk to the show sir. good to have you with us. >> great to be on the show stuart. >> let me get this right as i understand it you propose to stop any spending by the city government except on emergency services police fired, et cetera, et cetera. until you've got your pension debt under control, have i got that right? >> l you've got it exactly right. stuart. >> that's drastic. so what we're seeing across country right now and i know market is doing well. we're all doing well yields are down a bit. but i have have to tell you what's happening across country is drastic we've got over 200 trillion dollars of unfunded pension debt that means we don't have money to pay for and unfunded it means there's no funds out there and no real plan to pay for it stuart. >> that's 200 trillion worth of pension debt no funding for it. and this is pensions of local government retired workers. what's the debt in phoenix?

>> the debt in phoenix right now is about 4.4 billion of unfunded pension debt. lrn >> so congressman jason and i put together a model a model that we think will be across the country so if you look at what's happening in washington, d.c., you can precinct money. that place can print money. we can't we have to within our means and more importantly we also a have to pay the obligation from pensions. we've made a commitment to those individuals we have to pay it. we don't take this under control now, and take it under control quickly, we're going to become nothing more and cities across country are going to become nothing more than pension eating machines and services are going to be gone. >> what services will be gone if you divert funding away from them and towards the pension but what go? >> well essentially right now, the way we've got this model put together you've got to do three things stuart. first thing you have to do is identify the problem. right now cities across the

cities have 7.4 to 7.5%. we took and looked a the a tenure average on that. and then that tenure average literally shows true number so you have to identify the problem come up with a plan of how to solve the problem, and three, you have to take away the conflict of interest. so the first part of it, of the plan -- >> i have a minute left i want to know if you do this thing which services will you no longer provide? >> you're looking at services across country any services that are main state in most governments across the -- across the country stuart. so you've got some after-school programs at some of the city do we exclude police and fire because those are critical functions of government but you see more and more money to be taken away from those services street repairs, places things like that that are going it to need to know done in cities to go to pay off pensions until they're 90% funded. >> well saul that is a bold move

indeed but then again as you point out we're facing a monumental crisis. teacher come back to see us again i want to see how this plan of yours develops through. good to see you, sir. >> thank you very much stuart. >> thank you. you've got it moving on i have -- i'm going to say it is official, the great tax exodus has begun. new york's governor blames president trump's tax law. they're up, they're running and they are leaving high tax states in droves. my take on that, next. . .

stuart: it is almost 10:00 on the east coast. about 7:00 in california of course. right now the dow industrials at the high of the day. that is up 137 points. well above a half percentage point. we're waiting on numbers about the service sector of the economy. of course this is a very important numbers. how is the service sector performing? do we have the number, ash? ashley: we do. we just got it. 56.7. anything above 50 shows expansion. it was downward trend, 56 in november. 57.6 in december, it is coming down slightly. don't forget this is an incredibly important part of the overall economy. so we are still in expansion but missing what the estimates were a little bit. stuart: scott shellady is with us. i think you heard that. we got the service sector doing

well but there is slight element of decline there. what do you make of this? >> i don't think that is a big deal. we can't grow the pace we were with numbers over 60. as long as it is expanding. we have to worry about the 50 level as ashley said. 55, 56, 57, who will complain about that compared to where we were seven years ago? come on. stuart: service sector, one of the most important service sectors of the economy? >> it is. consumer led. we keep an eye down here. that is a very important number. things are still pointing in the right direction. he has to talk about that tonight. stuart: scott, more in just a second. right now the dow industrials not reacting to that service sector indicator at all. we're still up over 130 points. now this. it is official, the governor of new york confirms it. the tax exodus has begun. we've been expecting this. in new york $2.3 billion short

fall in state revenues. governor cuomo blames, the new tax law. you can only deduct $10,000 worth of state and local taxes. in high-taxed states, that is a pittance. result? even middle class people end up paying more tax. the 1%ers are getting socked. some of them are moving, taking their money with them. as predicted. "the wall street journal" is also confirming the tax exodus. the tax refugees are heading to low-taxed florida, which received more american migrants than any other state. i'm starting to see new yorkers as florida's new foreign buyers says a real estate appraiser in miami. the tax law changed calculus. more confirmation from new jersey department of treasury. it is income tax revenue dropped 35% from last year. it blames the new tax law. research firm wealth x,

suggested 5700 millionaires had moved out of new york city and new jersey in the last year. actually the fault here is not the new tax law. it is the extremely high state taxes and property taxes in new jersey, new york, illinois and california and others. all of which have been run by democrats. have we said some times, one percenters in these states didn't get a tax cut. most of them got a tax increase. it is being felt right now. the tax exodus is just getting started. it is going to become a flood. the second hour of "varney & company" is about to begin. ♪ stuart: all right that was my editorial. come back in again scott shelled shelled -- shellady. you live in a high-taxed blue

state, i think it is illinois. what is your input? >> my input i left for indiana in 2014. i did same thing everybody else is doing. this is ridiculous. high-taxed states are democratic. the reason why they're high-taxed because they have been democrat a long time and they have been run sew poorly, they are run so poorly to raise tax because they know how to do it better than you do. look what is happening. less people are being taxed. they will live the sinking ships. i'm so angry. how else do you get through voters of illinois keep putting same people back in power for 60, 70 years in a row. they wonder why nothing changes. it has only gotten worse. this is what is going to happen. stuart: let's deal with senator schumer and sanders, who want to restrict stock buybacks. what do you say to that? >> i think you have done a rif on 1970s britain before.

they should go back in time to 1970s britain. we'll ask tim cook, tim cook will have to ask schumer if he can buy back some of his stock, are you kidding me? is anything more ridiculous? if i want to take my public back out of the public hands, bring it home privately i have to ask permission from schumer to do that? i have never heard anything more ridiculous in my entire life. where do these people get off thinking they know how to do it than in else does? they have blown your money in the high-taxed states. stuart: it is part of drift of democrats to the left. astonishing senator schumer should be teaming up with senator sanders, an avowed and socialist. >> what we should do, let them have at it. they will be their own worst enemies. they will eat themselves from the inside out. stuart: scott, you had your say. it was animated and we liked it. thank you very much indeed.

>> all righty. stuart: staying on the theme of left-wing democrats, a new poll found 73% of democrats were more likely to vote for a candidate who supports medicare for all. 73% of democrats want that. joining us chris bedford, "the daily caller" editor-in-chief. that is a publication i admire enormously. chris, welcome. >> thank you. stuart: yes, sir, why is socialism getting so popular within the democrat party? >> i think it is some of the same reasons we've always seen socialism rise. you have colleges teaching it. it is considered radical. you have a couple of handsome faces, pretty pace, some people fiery about it. all young leaders. at the same time democratic old guard is not able to hold the line convince the voters they have the cures for them. so they are going towards a more radical path. republican party has gone further to the right. caused some students, we should go further to the left and become radical. it is a cool thing right now to

resist. stuart: what was that story that you think health care is expensive now? wait until it is free. i digress. >> it is combination of self-righteousness and ignorance. very common in college students and those just out of it. stuart: we have a poll of iowa voters found that joe biden is the only potential democrat presidential candidate to lead president trump. that tells you, that the rest of the field must be way out there on the left, i guess? >> rest of the field is really doubling down on the identity politics but they don't have the charisma president obama had to bring everyone together in the democratic coalition. joe biden is probably only one who put his hat in the ring so far, who looks to do that, would bring back white working folks president obama lost. every time biden goes out on the campaign trail without president obama in front of him, he hasn't done that well. he has floundered.

stuart: do you think he will run? >> i think he will. i would be surprised if he didn't. he has the path. the democratic party is so much further to the left than he is, he has an opening. stuart: the other two parties here, moderate democrats, what is left of them, and socialists. seems like there is a vivid split. almost two parties. >> i'm wondering if there eventually will be third party breaks in the united states finally because the republican party is finally becoming more of a center right party than it has been less liberal. the democratic party is becoming significantly more liberal and less middle ground. that leaves room for disenfranchised voters. stuart: crest bid ford, daily -- chris bedford, "daily caller" guy. if you don't watch it you'll be back. thanks, chris. news on service sector made no difference to the market at all. we're still there at 25,370.

but at boeing. now it is $402 a share, that is an all-time high. how about that? check estee lauder, ralph lauren driving the s&p higher. higher revenue at ralph lauren, both up very nicely. big tech names. better check them. apple has jumped 11% since it reported profits last week. all the big techs are up except google which is down six bucks. big hour coming up. two congressman looking to reintroduce a carbon tax bill. it would charge energy companies 15 bucks for every ton of carbon emitted. that is a big tax. did i mention that one of them, lawmakers is a republican? what is a republican doing putting on out there for a new tax? we'll talk to francis rooney next. senators schumer and sanders teaming up to tell businesses where they can invest their profits?

it is not stock buybacks or dividends. they don't buy that. looks like a money grab. my take on that. top of the next hour. state of the union tonight. which trump will we see, conciliatory or hard-line? i can't wait to see the reaction on speaker pelosi's face. i will talk to brian kilmeade later this hour. fox business for full coverage of state of the union. what you're watching right now is the second hour of "varney & company." ♪ so, i needed legal advice, and i heard that my cousin's wife's sister's husband was a lawyer, so i called him. but he never called me back!

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stuart: holding on to a 100 point gain. 25,300 where we are. revenue up slightly at viacom. that is the parent of comedy central, nickelodeon and a whole lot more. that slight rise in revenue is for 4% gain. higher out put and higher profits give british petroleum a boost. that stock is up 3%. two congressman from florida, one democrat, one republican, planning to revive a carbon tax bill. one of the congressman joins us now, francis rooney, the republican on this team. he is from florida. sir, what is republican doing raising taxes? >> well, first of all, i don't

think we need to be burning coal when we have abundant natural gas which is five times as clean. carbon tax is way to basically price coal out, incentivize the use of cleaner fuels. stuart: that's it? a carbon tax, just so we convert from coal to natural gas? that's it? >> well, i would say make two more points, stu. first of all, the last time the democrats got majority they went for a regulatory bureaucracy of cap-and-trade. i think market-oriented carbon tax is better way to address the interest in dealing with the human aspects of climate change, which polls very strongly, particularly polls moaning young people, suburban, people, college educated people, i think republican party needs to reach out and get if we continue to have electoral success. stuart: it would be, what is the word, i can't remember the right word, a tax that hits everybody equally and therefore affects poor people more than it affects

wealthier people. i'm a little surprised that a republican would go for that? >> well, most of the taxes will be paid by the coal industry until they're priced out of existence. the carbon and natural gas is 1/5 of that. so hopefully, if the tax were to work like you would expect, it would go away over time as we drive to more cleaner fuels. stuart: are you climate change guy, a firm believer? >> i believe that the, that there are natural climate oscillations and cycles but i also think we can't deny that the fossil, that the carbon in the co2, put in the atmosphere ever since the industrial revolution has had some effect. they measure acid in the oceans, acid in the air which do relate to co 24, they have deleterious consequences with the seas. we have problem with sea level rise which leads to asseyification in the water. stuart: alexandria ocasio-cortez says the planet has only 12 years to go unless we take

drastic action. are you that strong a believer in chime mat change disaster? >> no, i don't think we can pick a arbitrary time when the planet will not exist anymore. we can work to the arrest the decline in glaciers and increase in acid in the waters, that we're seeing that is contributing to sea level rise. i think we can work on infrastructure, to help low-lying areas prepare for the damages higher, more powerful storms and rising sea levels. those are the things we're trying to deal with down here in southwest florida. stuart: what is the chance -- it's a bipartisan approach here. what are your chances of success? >> well, it is hard to say. you know, if you look at it the way i look at it, this is the least drastic means to solve a problem that polls very strongly among all elements of the american populace, it is not such a bad thing for republicans to get behind. when you think back to teddy roosevelt and ney than el reed and richard nixon, the people

really republican leaders of the environmental movement, i think we need to get back in that space, show the american people we can be trusted to protect the environment. stuart: if the cast is $15 per ton of carbon produced, tell me how much money that would raise? that sounds like a pretty heavy, strong, tax? >> yeah, i get the math mixed up. there are two or three different bills but the one i'm most familiar with, it would have been enough to replace the motor fuels and aviation taxes. stuart: so how much is that coming in. >> i'm not 100% sure. stuart: are we talking tens of billions? >> oh, yeah. billions for sure. i mean we figured it would help fund the president's infrastructure plan. stuart: okay. we appreciate you being on the show. i'm sorry i'm out of time. i think it is interesting topic. you have a shot at success. congressman, appreciate you being with us. >> thanks for having me on. thank you very much. stuart: here is something to check out.

patriots quarterback, tom brady, wide receiver julian edelman. they celebrated their win at disney world. that is them holding light sabres. rode ther to story ride and hung out with mickey mouse. tradition for winning team to celebrate at disney world. which means brady has been there quite a few times. >> gone on all the rides. stuart: many times. speaking of disney, the company reports profits this afternoon "after the bell." we'll have you covered. that is 4:00 p.m. eastern on the fox business network. more "varney" after this. ♪ - in a crossfit gym, we're really engaged with

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stuart: what's the price of gold? whoa, 1320 is the price per ounce. what's the price of oil? $54 per barrel is the price. what's the price of gasoline? 2.26. that is your national average for regular. ashley: been there for a while. stuart: what else do you want to know? now this -- ashley: who will win the race -- stuart: right. general motors unveiling the latest chevy silverado heavy-duty truck. jeff flock is there. what is so special about it? jeff, what is so special about the new -- ashley: apparently not a lot. he didn't seem impressed. stuart: i wasn't whispering. i was using a loud voice. hey, flock. >> i'm sorry, were you talking to me? stuart: what's so special about the new chevy silverado? go. >> you are the, you're getting a sneak-peek first on fox business. this is the new chevy silverado. this is the high country version. you know, what is cool about these things, is that this is

where gm makes all its money. i'm deep within the bowels of the flint assembly plant. maybe you see it surrounding us there. this is one of the plants they're not closing. these things are selling, they sell tremendously, plus they make a ton of money on these. this one's hooked up to, dutch, come back here, this one is hooked up, if you ever retire, mr. varney, you might want to buy one of these, tour america. you probably won't. but you will die with your tv boots on. they tow, as you can see, a bunch of stuff. dutch, spin around. mark royce, i saw him over here. where did i see mark? anyway, he is the president of general motors. we'll talk to him also about the layoffs coming, both white-collar layoffs happening right now and shutdown of a couple of plants, which as you know the president has said, hey, don't do that.

so, we'll see if they changed their mind. nice truck, huh? stuart: jeff, i understand that you will join the scrum around the gm official there, mr. royce. are you going to get, get fox business's cameras right there real early. you will do that top of the next hour? is. >> yes, we will. mark is an interesting character. i covered his father, lloyd royce, president of general motors, who was criticized for not making tough decisions, closing plants when they had to. a very interesting tale. we look forward to talking to mark, the president of general motors. stuart: jeff flock, got it. thanks very much indeed. as we walk away from the shot, the chevy silverado, the new one. got it. president trump's second state of the union is tonight. will he be conciliatory? will he be hard-line? i frankly can't wait to see speaker pelosi's reaction to it. brian kilmeade will have his

take. check the big board. up 100 points. an hour into the trading session, looking good at 25,348. ♪

♪ ♪ back in the ussr, boys you don't know how lucky you are ♪ stuart: never played this one before. sing it again. ashley: no, no. stuart: what you -- deirdre bolton, what do you think of us playing beatles every morning at 10:30? >> i think it is fantastic. stuart: would you prefer the rolling stones at 11? >> when i'm not on the show,

watching the show, used to it. stuart: excellent. you're all right. you stay. check the big board, nice gain, ladies and gentlemen. up a half percentage point. that is 125 points right there. 25,365. i want to check the big techs. only one loser, that is google. now it is down $9 a share. i think that selling is overdone. i think it was a pretty good earnings report yesterday. we'll discuss that a bit later. apple, amazon, facebook, microsoft, all of them on the upside. how about snap? that has been beaten down badly. that reports after the bell today. not much change as you run up to the report. overall the market shows a gain of 128 points. i want to bring in jamie cox, harris financial group. all right, jamie, you say there are warning signs on the economy. you're bearish, you're troubled about the future of stock prices. make your case. >> stuart, the thing that

worries me most global debt-to-gdp is at record levels. it is 320%, if you look at that range, go back to look at history, the last time we had global financial crisis, global debt-to-gdp was 270%. we have gone way past what precipitated one of the worst recessions in modern history. now we're even worse off debtwise. most people need to pay attention to the fact that if debt levels stay this high, interest rates continue to climb, we'll head for recession. anytime global debt-to-gdp is that high, recessions that follow are deeper and longer lasting. that is why i'm telling people, go ahead, sorry. stuart: i take your point. we heard a lot about the debt bomb on this program but it is always in the future. we've been hearing about the debt bomb, it will explode. it is always, always, always, way out there in the future. it is okay to issue a warning about it and say, watch out for it but unless you can say, it is going to hit this point, you

know, what is the point of warning? am i supposed to sell my stocks now because maybe sometime in the future the debt bomb explodes? >> no. you're not supposed to sell them but i think what we were facing in december was the chance that the federal reserve may have tripped the wire to actually cause it to occur. i think that is what a lot of us are concerned about. if the fed hadn't indicated it was going to pause, not raise rates, basically not pay attention to the fact that raising rate could have precipitated the problems, then i would worry more. i think most investors need to pay attention to the allocations they have to equities. they have been rewarded with uninterrupted gains for the past couple years, except for maybe the fourth quarter of 2018. that fourth quarter of 2018 should be a wakeup call to illustrate to people what will happen when that eventually, when this eventual debt problem comes to roost. so people need to allocate their capital in a way to weather those types of storms when they occur, not be so overallocated to stocks, pay attention to

fixed income which had been sort of thrown away, as, uninvestable asset. stuart: if i got a bunch of stocks in my 401(k), and i'm worried about the debt bomb exploding, what do i get into if it is not all stocks? into bonds? would bonds bail me out? >> yes you would need a healthy helping of fixed income, particularly treasuries. anything, high quality, u.s. corporate bonds, treasurys would be good offsets. my worry for most investors they are overallocated to equities, not paying attention to the fact they need balance in their portfolios. i see it all the time where people think they can make uninterrupted double-digit gains in stocks, they pay no attention to allocations necessary in bonds. so that is my point, stuart, some day you will need that buffer of fixed income in your portfolio. now that the fed is sort of on hold. it is actually going to probably return to being a good place to have money, for 2019, leading into 20.

so i think that is what i'm suggesting that people pay attention to. stuart: jamie, hold on for a second. i want to read the tweet, just came in from president trump and it is about senators schumers and sanders. he says, i see schumer is already criticizing my state of the union speech even though he hasn't seen it yet. he is just epset that he didn't win the senate after spending a fortune like he thought he would. too bad, he won't give more credit for the senate win by the media. i'm sorry, i thought it was about senator schumer's proposal to limit stock buybacks. it was not. it is the president tweeting about senator schumer criticizing the state of the union speech, having a go at the senator about 11 hours before that. so, jamie cox, i want to thank you very much for being on the show. we hear but the debt bomb. it has often been mentioned on this program. we're interested in that solution, getting into treasurys. thank you very much, jamie. see you again soon.

>> thank you. stuart: now disney reports after the bell today. deirdre, i don't want numbers. what are the themes? what should we look for? >> directed to consumers, ceo bob iger said that, every 16 seconds on every earnings call. what will they do to compete with amazon, what they will do to compete with netflix? these are issues, questions investors wanted answers. what happens to hulu. disney sold itself, bought fox entertainment. nbc and disney co-owned hulu. does that ownership go to 60% for disney? what do they do with it? a couple outstanding questions. stuart: i think los angeles is in a tizzy about disney because they have acquired fox assets. executives are moving around. ashley: yep. stuart: from the fox lot, to the disney lot. i'm told it's a madhouse. >> all the golf carts? we need visuals. stuart: i like that visual.

i would like to know who replaces bob iger, he is the one of the best ceo's in the world today. i would like to know who takes his place. i don't know who the front-runners are. he can't stay forever. >> no, he can't. stuart: it is 10:36 in the morning on what day is it? tuesday. president trump gives the state of the union tonight and i know my colleague brian kilmeade who you can see right there, he is on the air on the radio. he is joining us on our tv show, and i'm joining him on his radio show. what kind of trump do you want to see tonight, conciliatory or hard-line? >> well, i think he can't be conciliatory, because that is just not trump. he can show a avenue for negotiation. last week, 35 days, opened the government, as bad as it looked it is only round one. round two, i gave you what you wanted, i opened up government, now negotiate. stuart, you have seen reports they're not even negotiating.

five days later after i opened government requested by democrats, my trust is in jeopardy for the future, you're not living up to your end of the bargain. he has to come off reasonable, don't you agree? i think he has to come off as making nice. i don't think he has to be hard, stern, sullen, nasty,ing a agressive. i think he has to be the exact opposite. he wants nancy pelosi, to look rigid, stubborn, intransigent, stone-faced. that is what he wants. i think he will play towards that. it will be successful. if he does that, i think it is successful. this is all about television, how people appear on television. whether they acquire support or lose support. if the president makes nice, i think he could win. >> i do. i think he will get the momentum back after this. don't tweet anything against your speech. don't do it tomorrow night. don't do it tomorrow morning. so do your speech. let it sit. and then come out and keep

moving. i hope he has a few events planned later in the week to start building what he said. i do hope both sides get together. stuart, one thing i'm looking at in particular, the president coming out of this. he has a lot to talk about that is positive. you come on "fox & friends" all the time. we ask you to give a few highlights what is happening on the economy. unemployment is down. we added jobs far above anyone expected despite the shutdown. just as we know, that the cycle that we never thought was going to end where the market was spiraling downward and negotiations on the wall were going nowhere, we're beginning to forget that, just like we forgot about the "schumer shutdown." schumer comes out in the retort, stacy abrams, retort is middle has jobs, the numbers don't say that the middle class is not being addressed. one thing about stacey abrams.

she never looked at election in georgia as legitimate. what have her give retort? same theme. this is not a legitimate president. the mueller probe will prove that. stacey abrams. i was robbed. so they're going to try to make the american public say, we have illegitimate president, same thing only to the 10th power that at the did with bush, first time around. stuart: dear me, oh, dear, i will stay up to watch it. brian kilmeade, thank you for watching the radio show. much obliged. >> your tv show seems great. i love cable. stuart: you're very good, brian. i have a video, take a quick look at. standoff happening on our southern border this morning. about 2,000 migrants trying to cross the border in texas from mexico. in other words, they have arrived at the border, the migrants, they were bused there by one of the mexican states,

bused to the border, just to coincide with the state of the union speech tonight, which will be about border security. ashley: indeed. stuart: is that a a coincidence? it's a plot. two summits one with north korea's kim jong-un and one with xi xinping. that, especially the xi xinping meeting, if that was announced, i think the market would like it. ♪ why bother mastering something?

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♪ ashley: republican national committee chair ronna romney mcdaniel, says last month's jobs report that president trump's economic strategy is working. roll tape. >> jobs are coming back to this country. we saw 304,000 jobs last month. you have wages up over 3%, growing over 3%, first time in a decade you've seen that happen. four million people are now off of food stamps under the trump administration. things are going great in this country, because of a couple things, deregulation, deregulation, getting the government out of business. and, the tax cuts. making our corporate tax cuts, corporate tax rates competitive. giving people more money to invest in our economy. it is working. ♪

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with humana, you'll get more than original medicare alone and have the peace of mind of knowing you're covered for doctor visits and hospital stays. plus, routine physicals and preventive screenings. and when it comes to prescriptions, in 2017, humana's medicare advantage prescription drug plan members saved an estimated $6900 on average on their prescription costs. so call a licensed humana sales agent today at the number on your screen, to see if you're eligible to enroll today. and say yes to getting the right health care coverage without having to wait for it. stuart: rain, the high of the day. we're right there. thank you, trumpets from ashley. we're up 155 points, getting awfully close to 25,400. almost there. all right. the state of the union tonight. of course. everyone knows that. two things i'm looking for. news on a summit with kim jong-un of north korea, two,

news on a summit with xi xinping of china. walid pharis, national security analyst is with us now. okay, i think we'll get news on a summit with kim jong-un. i think that looks likely. you're shaking your head? not going to happen? >> no, it will happen, it has to happen. this is one of the most important achievements of the last two years. i think the president at the state of the union will have to inform the american public with regard of where are we now? everybody knows we are engaged with north korea. few people know about what and what's the next step? many have criticized the president about not being able to implement what he promised us. state of the union is the opportunity for him to do so. stuart: what we need is a date for the second summit with kim jong-un? that is what we're looking for, right? >> i am not sure if a date will be announced or not at the state of the union. these are what i call tactical

decisions he has to decide on. he has to confirm moving forward. that there is a date. i'm meeting with the chairman. that decision will be very close on these issues. stuart: the second meeting, very important financially, that would be between president trump and xi xinping. now i don't know whether any announcement comes. i would like to see it. are we going to see announcement? >> again, for the president to talk specifically about a date with chairman xi is going to be a decision he will have to make because it will, it will force him to implement it at this specific date. what is more important in my view for the american public that we're on the right track because china control as major component of our economic prosperity and also of our economic stability. so making a statement about china and a meeting and a summit will be very important at the state of the union address. stuart: i doubt that foreign policy is going to play much of a role in the speech tonight,

right? >> i don't know if it is going to play a large role. probably the economic will take over the my grace, immigration as well. but he cannot escape the fact that we have to clarify what is happening in syria. that would be something about syria. of course about iran. and i doubt that he is not going to address the issue of venezuela where we, as americans, are basically winning the game, not for ourselves only but for the venezuelan people. these would have to be in the speech i would think. stuart: what is the one thing that you want to see in this speech over and above everything else? >> if he can find what would be a point of unity here in congress, despite all the divisions with the opposition, he could tell the american public, look on these issues we are united. with regard to foreign policy, with regard to the economy. maybe less so with regard to all and immigration. that would be a point of strength. he will basically corner the opposition if i may say so,

telling them, look i informed the american public, i agree on these issues, do you agree with me? stuart: con soiler to front, rather than confrontational trump that walid phares wants to see, right? >> i think i want to see a firm trump on issues of national security and foreign policy but i would like to see him extend the hand to the opposition while being firm on what is important for all americans. stuart: walid phares. see you soon. >> thank you. stuart: stay with fox business. full coverage of the state of the union. lou dobbs kicks off at 7:00. neil cavuto takes over at 8:00. trish regan talks at 11. stuart: now teaming up with alibaba of china, question, is this their way to make their mark in china? we will talk to therapy chief

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stuart: high of the day. nice solid rally this tuesday morning. we're up 155 points. that is .61%. nice gain. kabbage, that is a financial services company which provides loans to small businesses. they have just announced a partnership with china's alibaba. rob frowine, he is the cofounder of kabbage. welcome to the program. good to see you, sir. >> great to be on. thank you so much for having me. stuart: is this how you loan money to small businesses in china? >> actually it's a little bit different than that so alibaba.com operates one of the largest trade platforms for small businesses globally. we're actually providing capital to u.s. small businesses buying supplies and inventory on alibaba.com. stuart: as i understand it, there is maximum of 150,000 bucks you will lend? >> credit lines of 150,000. small businesses can use any portion what they want.

stuart: can you give me an indication how big kabbage is at this point? >> we've lent $6 billion so far to 165,000 small businesses. we really done that since 2011. so it has been a really, really fast ramp. stuart: i can do this online? i can come to you finance my small business, online, don't have to meet a human being, i can do that. >> for u.s. small businesses they don't have time. they're running shop. greeting customers. managing books, buying new inventory. this makes their life easier, bringing financing directly to them. stuart: do you have a set interest rate that you charge? or does it vary according to the risk of the business that you're lending to? >> it really varies, depending on the risk, really depending on the circumstances of the opportunity but rates, for example, through the alibaba.com in mid-single digits, up from there. stuart: of course one of the big reasons we love to have you on the show is to ask the question, are you going to go public

anytime soon? you know, you expected the question. i'm sure you have got an answer. as i understand it, your principle competitor, one of the big competitors is lending club. i think they're already public. so, when are you going to join that club? >> you know, for us, it is about building a great business. we definitely reached a robust size now as a business. we're looking at all options. but it is something that we're really just focused on executing on business, to see where that takes us. stuart: you have to say that i understand these things. >> there you go, but i have got another question. >> sure. stuart: why on earth would anyone want to go public today, why? >> it's a great question. you know, ultimately it is not about going public. it is really a financing event but it is an opportunity, obviously for you to build momentum in the company, and for, and for some additional financing for the business. stuart: you have lawyers all over you. you do know that? >> oh, wow. stuart: say nothing. rob, thank you very much for being on the show, sir, we

appreciate it and good luck with alibaba. good stuff. >> appreciate it. stuart: senators schumer and sanders are teaming up to tell businesses where they can invest their profits. apparently they don't want you to put that money into stock buybacks and not dividends. oh, no. looks to me like a money grab. looks to me like it is dangerous. top of the hour coming up. ♪

stuart: it's a power grab. it's a money grab and it's dangerous. schumer and sanders are teaming up to tell businesses how and where they may invest their profits. when politicians dictate corporate finance, it doesn't end well. they're trying to take control of your money away from you. stock buy-backs are the senators' target. they proposed legislation, companies would not be allowed to invest their profits in their own stock, no stock buy-backs, unless they have first pledged to pay workers $15 an hour, offered paid sick leave, pensions and health care. in other words, you can't use your money the way you want to. you can't accumulate your profit within your own company. you can't hold it and wait for a future opportunity to expand. oh, no.

it must go to your workers and the community first. senators schumer and sanders think they know how to use your money better than you. whose money is it? did politicians make it? no. so why are politicians telling business how to invest its own money? who owns the company? shareholders. but they're not allowed to invest the profit that they made into their own company, into their own shares, not allowed to do that? don't try to get around this by paying bigger dividends. oh, no. that won't be allowed either. the senators write this. we should also seriously consider policies to limit the payout of dividends, perhaps through the tax code. all you retirees living on dividends, please take note. this is all about inequality, the rallying cry of the left. democrats want to raise income taxes, estate taxes, social security taxes and introduce a wealth tax. now they will dictate the allocation of corporate profits

and dividends. keep a very firm grip on your wallet. it's the third hour of "varney & company." in corporate america, which used to care about workers and communities in addition to their shareholders, now it's just for the shareholders, maximizing stock price, with no help to the workers. stuart: senator schumer, allied there with the socialist senator bernie sanders. you heard what i had to say about it. i think this is a new push, a blatant money grab to control your money. jason draher is with us, global investment strategist at ups. i have gotten all hyped up about this because i think it's a disgrace. you say? >> may be good policy but bad economics. you are telling companies how to allocate capital. i think the idea that paying out capital to shareholder is

somehow counter productive is wrong. you allocate capital the most efficient way. if a company can't find good uses for it, whether it's building factories, investing in workers, it's harmful by investing it in businesses that don't make sense. better for them to pay out the money to shareholders. if you are going to tell them to invest a certain way, they are likely to make suboptimal decisions. that doesn't help the business or economy in the long run. stuart: stock buy-back allows a company to put the money back into the company while they wait for an expanding opportunity elsewhere at a later date. you can pause on your investment outlook while you look for a good opportunity. that's what a stock buy-back is for, isn't it? >> a stock buy-back, they are actually going out and buying their shares. it's another way of returning capital to shareholders. you can do it through dividend or buy-back. you are basically saying we have this money on hand and don't have good use for it, we think it's better if the shareholders take it and invest it elsewhere where there's better opportunities. stuart: let me open this up. ash, deirdre, what do you think?

ashley: two things. first, these businesses could quite likely shut down and go somewhere else. what's even more galling to me is the reason companies are not investing, one of the reasons is the political dysfunction. the very people who are pointing the finger at companies can turn right around, point the finger at them and say you are creating so much uncertainty, we are walking around wondering what you are going to do next so we will hang on to our capital until you get your act together. >> there's a flaw in the blueprint because there are many companies that let employees have shares, if they have a pension, that's part of their package, so in an odd way they are actually even sort of destroying their own employees' potential value, potential wealth, and it's just misguided. honestly, i'm not against all things. this one just is pointless. stuart: one more item here we did not mention. that is dividends. senator schumer and sanders, they don't want -- here's the quote. some may argue that if congress

limits stock buy-backs, corporations could lift or shift, i should say, to issuing larger dividends. this is a valid concern and we should also seriously consider policies to limit the payout of dividends perhaps through the tax code. >> particularly increasing taxes on dividends. you take a higher corporate tax rate, the value of companies comes down. either way it will impact shareholders. if they do that, if companies don't pay out the capital, the value of the company also goes down as well. either way they will be harmed. stuart: they are essentially saying dividend payments largely go to the rich, to maybe 10% of the population. that in and of itself is bad. i disagree with that entirely. >> think about it, any pension plan that's invested in u.s. companies so if you work for a company, you indirectly own stock through your pension plan. it's true a lot of obviously wealthy people will own larger consolations and allocations but it affects a large swath of americans because they will own indirectly one way or another. stuart: i'm shocked at senator schumer doing this. isn't he mr. wall street?

ashley: he's buying votes. let's be honest. to be seen going after the mean rich people, and to your point, they're not all rich. it affects a large number of people. >> what is dangerous more about the mentality is sort of ripping down, for example, a saver who has actually planned a portfolio, has some dividend paying stocks, somebody who is in his or her 70s or 80s. this has been done strategically. you are kind of hurting those people. and not really lifting up too many people alongside. it's just sort of tearing down the people who did have a plan. stuart: that's right. that's a good point. you don't lift people up by tearing down the people at the top. do you? >> it's not the most effective way to do it. it's also -- the thing about the people who perhaps have the money, if there's some tax advantage put in that's going to hurt them, they can find another way around it. an individual who is the retiree, they are not likely to find that tax advantage. so there is also loopholes that people can figure out ways around it. even if you try and do it, it could be skirted and the

intention, even if it's well intended -- >> then he ayou are helping eve wealthier people who can hire the lawyers to find the loopholes. stuart: they will always find lawyers. government needs to keep out. with a british accent. jason, thanks for joining us. >> my pleasure. stuart: now this. we have been talking about this a lot on the program. it is now official. high income earners ditching states like new york, new jersey, because of their very high tax rates. this is the great tax exodus. it's arrived. but where are they heading? the answer is miami. more people are flocking to florida than any other state. lower taxes, warm weather, of course, and a stable housing market. florida, the big winner. more on that later. couple of quick tech stories for you. first up, netflix. they have announced a new partnership with goop brand that

produces a new documentary series based on alternative health practices, slated to premiere later this year. netflix stock up three bucks. amazon, we told you about their push to buy abandoned retail spaces around the country for their own use. they bought an abandoned mall in akron, ohio, to be used as a distribution center. according to public blueprints, construction is set to begin september of this year. another amazon story. they developed special uniforms for warehouse workers. it's a robotic tech vest. helps amazon's 100,000 robots avoid running down their human co-workers. ashley: that's a good thing. stuart: that's a good thing. with that one. congresswoman alexandria ocasio-cortez unveiling details about her green new deal. could cost trillions. hold on. we have jeff flock with us now interviewing i think the president of gm. go ahead, jeff. reporter: hey, stuart, how are you? got mark rice here, just getting unwired from the presentation.

>> how are you? reporter: big truck. nice truck. >> thank you very much. reporter: you said at the outset you made a huge investment in this plant. >> we have. reporter: at the same time you are still closing multiple plants. since you made that announcement -- >> we haven't actually announced we are closing any plants. we unallocated those plants. this plant, we put about $1.2 billion in it since '09 including new paint shop, new body shop, and we are bringing 1,000 employees from some of those -- reporter: so they can get a job here if they want one. >> sure. reporter: have you done anything to change your mind, anything the president has said changed your mind about the wisdom of this? >> i can't really comment on any of that other than what we have stated publicly which is these are tough decisions. they affect employees and you know, we take that very seriously. reporter: i had the pleasure of covering your father, who was president of general motors in the '90s. he was criticized and the team at the time for not making some tough decisions that needed to be made.

what impact has that history had on you and the desire to make the right decisions as a business that you need to make? >> well, listen, those are very different times so i can't really comment on those. i just joined the company. i will say i lived through the global crisis that we all lived through, and you know, our company went bankrupt, so mary and i and others take that very, very seriously. we are going to get on the other side of this and make sure that we are healthy and strong and we have invested in the right plants and we fill those plants with as many workers and products as we can to make this a viable company for the future. reporter: you feel you have done that? >> i think we have. reporter: appreciate the time. thank you. i will let other folks talk to him as well. but appreciate mark reuss sharing time with us. his dad, lloyd, president of general motors 1990 to 1992, that's when gm was not making the tough decisions, yet i just

heard your commentary at the beginning and you know, you pointed out business has to make the decisions it needs to make in order to be successful. that's what they didn't do and that's why they wound up in bankruptcy, and this is what they are trying to do now despite the fact the president has said he doesn't like it and that's his right. he wants jobs, but sometimes you got to make tough calls. stuart: well done, young jeff flock. you got in first for fox business. we like that. well done. reporter: we try. stuart: all right. next case. congresswoman alexandria ocasio-cortez with details about her green new deal. it will cost trillions. add that to the growing support for medicare for all. looks like socialism is gaining a lot of ground in america. we will address that. police in mexico beefing up their presence at the border. they are in riot gear awaiting the arrival of that migrant caravan. this hour we get a live report from the mexican side of the border. we are told the scene there is getting much more tense with the military police arriving. we're on that one. the caravan and border security

will be a big topic at the president's state of the union speech tonight. the president will also have a few special guests. we will tell you who you will see. stay with us. ♪

stuart: we are getting some details of that new green new deal being proposed by alexandria ocasio-cortez and senator ed markey. $7 trillion is the early cost estimate. they want to reduce greenhouse gas levels to zero in about ten years. this as support for medicare for all legislation becomes more popular. 53% of all registered voters say they will be more likely to support a candidate who campaigned on that idea. justin haskins is with us, executive editor at the heartland institute. these are socialist ideas. flat out, this is socialism. is this the new normal? >> yeah, unfortunately, it is becoming the new normal, at least within the democratic party. they have been pushing socialist ideas for awhile now, but it's ramped up ever since bernie sanders' presidential campaign in 2016 and i don't expect that to change any time soon. about half of all millenials support socialism now.

i don't think they know what it is but they support it, and it's only going to get worse going forward into the future. stuart: you have to be surprised at this. i'm older than you, i have lived in a socialist society. i left it, i came to america. i am surprised that socialism should be making a comeback here. can you explain why? >> yeah, sure. as a millenial, i'm not surprised by it at all. i grew up in going to public schools, where we were indoctrinated daily with socialist ideas like everyone deserves a trophy and that grades don't matter, checkmarks instead of letter grades. that was the world i grew up in. frankly, people don't understand what socialism is. my generation is ignorant of the history of socialism, the dangers of socialism, and that's really the root cause of all of this. stuart: you wrote an article, this is how you came to us, you wrote the article called "how to get your child to just say no to socialism." hold on a minute.

i've got a 34-year-old son who is a socialist. i guess i lost that one. did i? >> yeah, look, i think there are a lot of people out there who have children who are socialists and i think that this article reached a lot of people in large part because of that. i think that parents everywhere need to hit three important points. the first is they need to explain what socialism actually is. socialism is not sweden, denmark and norway. that's what bernie sanders and alexandria ocasio-cortez were telling people but it's just not true. parts of their economies are socialized, yes, and those parts of those economies don't work particularly well, by the way. but those are not socialist economies. some parts of their economies are freer than in the united states like with property rights and business freedom and that kind of thing. so people need to explain to their kids what socialism is. that's the first point. it's the collective ownership and management of property and it's a radical idea. it's an extremely radical and

dangerous idea. the second point is that socialism has never been successful anywhere where it's been tried. it always leads to disaster whether it's venezuela or north korea or the soviet union. 167 million people have been imprisoned, exiled or murdered by socialist and communist parties in just the past 100 years. stuart: i know you have another but i'm flat out of time. i want to bring you back real soon because i'm interested in this. okay? >> let's do it. stuart: come back soon. thanks for being with us today. appreciate it. this is the ratings for the super bowl. they were at an 11-year low. ouch. viewership declined. so did ad revenue. that's not, that's patriots fans celebrating the win in downtown boston. more than a million fans expected there today. they have arrived already. ♪

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stuart: the super bowl ratings reflect the quality of the game. it was a low-scoring nosnoozefe according to most people i know. it did draw 98.2 million viewers. last time the super bowl was viewed by fewer than 100 million was the steelers/cardinals back in 2009. however, livestreaming coverage was up 7.5 million devices streamed the game and that set a new record. by the way, as viewership declines so does ad revenue. super bowl advertising sales fell more than 6%. president trump is going to address the nation tonight. it's the second state of the union. blake burman at the white house right now. all right, blake, what are we expecting from the president tonight? reporter: going to hear the president lay out some of his policies, going to have the president also talk about unity so we are told from this white house, as some of the guests will reflect that, guests that have been invited by the president and first lady. just to give you a couple, the

president will be invited into the chamber there members of the tree of life synagogue in pittsburgh, folks who were inside that synagogue when it was attacked earlier or last year, rather. a police officer who went in when the bullets were flying along with a member of that synagogue. the white house also saying that the president will have in attendance a sixth grader, joshua trump. no relation to the president or his family, but someone who has been bullied, a sixth grader, because of his last name. the president seemingly will use those two to get behind the call for unity. we will also have some policy measures, of course, that the president will put forward. none of which will be focused on more than immigration. one of the big questions heading into this is whether or not the president will declare a national emergency this evening on the southern border but the white house appears to be suggesting that the president wants to let the negotiations up on capitol hill continue first. >> the president's been laying

out [ inaudible ] for weeks. the president is going to continue to talk about the importance of border security, including the wall, and right now we'll see what the conference comes back with. reporter: see what the conference comes back with, the key words there. the conference has until february 15th to hammer something out. by the way, we also are awaiting to see whether or not president trump announces the date and maybe even location of a second summit with kim jong-un. stuart: that will be important. thank you very much indeed. see you later. make sure you tune to fox business for the state of the union coverage. lou dobbs kicks it off 7:00. neil cavuto takes over at 8:00. trish regan at 11:00 p.m. all-star coverage on the fox business network. it is clearly a huge day for politics and your money, yet state of the union tonight and look at that market go, up 120 points. little below the high of the day but still up there. we're on it. ♪

stuart: it's been like this most of the morning, up well over 100 points, up about a half percentage point. is that stability? we'll take it. up 122. let's look at the big tech

stocks, please. google on your screen right now, that stock is down $16. our next guest has some price predictions for the rest of 2019. come on in, ray wong, founder of constellation research and a man who likes all big tech on all occasions. let's start with google. where's it going and what price is it reaching and when? >> i think it's still getting to $1300. definitely by 2023. part of the reason for that is what they are doing in the cloud business but there's a lot of downwind. we are seeing a full frontal assault by amazon so not only in the ad business, but also in the home speaker business and of course, they are going after the core business that amazon is in as well with the cloud side. stuart: so alphabet now at $1125. you say it goes to $1300 by the second quarter, by the spring. you're on tape saying that.

apple right now is, i will get it on the screen, where's it going? >> we think it will get to $180 by end of year as well. apple is doiing think part of the business we are seeing is services growth. the subscriber numbers are going to get to about half a billion by 2020. we are looking at that number. stuart: wait a minute. it's $174 now. it's only going to $180 by the end of the year? that's not much of a gain. >> $200 by end of year. sorry about that. stuart: how about amazon? i want to see where it is now. $1653. where is it going? >> $2,000 by end of year. we see them as the fastest growing of the fangs and of course, they have got the right business model and watch the ad business, watch the alexa business and definitely watch the cloud business. that's the part that is ramping up still. stuart: okay. how about facebook? >> facebook. $160, $170. $160 by end of q2 and $170 by

end of year. we hope the trust factor gets corrected. that's the big overhang for them. stuart: apart from facebook, you like all of these big techs and you always have. you have always said they are just going to keep on going up. that is your track record, isn't it? >> it's because of the business model. it's a winner takes all market. the number one player takes 60% to 70% of the market. the number two comes in about 20% to 30%. these are companies that have big bases. we are talking about half a billion or more users. in some cases like facebook, 2.3 billion. it's a big base to build service revenue against as well as products. stuart: did you see youtube, a unit of google, obviously, two billion monthly users. two billion. that was a shock to me. that's a gigantic number. >> yeah. we are talking numbers like this. there are other companies that actually have this kind of profile that may not capitalize on it. give you a great one. adobe has 1.2 billion users of pdf, the

documents you sign. they could actually turn and convert that into commerce if they tied together a lot of the pieces of what they have. there are companies like that sitting out there that are sitting on big bases that have potential services revenue and subscription revenue which is what everyone is looking for. stuart: big tech bull, ray wang, thanks for joining us as usual. not too keen on facebook. alexandria ocasio-cortez slammed capitalism, saying a system that creates billionaires is immoral. allie stuckey joins us now from the podcast relatable. aoc is a millenial. you are a millenial. what does your generation, what's your generation's problem with billionaires? >> well, there's a lot of dissonance i haven't been able to understand. we are the generation of the side hustle so even though many of us have full-time jobs, we take on a side hustle like

fashion blogging or becoming an influencer on instagram to get extra money. while we want to become successful entrepreneurs, for some people we demonize the crazy success of people who have made billions of dollars. there is also cognitive dissonance in the fact we expect these billionaires to pay for the programs we think will be good for the country and yet we also believe there shouldn't be billionaires so i'm a little confused by that. you need billionaires to pay for your stuff but you don't want them to exist. what's going to happen when billionaires don't exist anymore because we taxed them into oblivion. stuart: why do millenials believe tearing down the people at the top helps the people at the bottom? why do you believe that? >> i think we have been conditioned to believe that way through academia but your previous guests, through public schooling. this kind of trickled in. at first it was the deem monizan of capitalism and in hollywood, taking advantage of the people

at the bottom, that seems to be the man we are fighting against. we are told just be independent and we really don't realize how much someone like bezos or schultz, people we learned to demonize and hate, have boosted the economy, have given us the things we love. instant gratification and convenience that we are really so addicted to. we kind of separate those things in our mind because it sounds compassionate, two things millenials really care about, to say you don't want the people at the top to have as much, we will redistribute it to people at the bottom so they will be taken care of. it makes us feel good about ourselves morally. stuart: did you see the pew research poll, 54% of democrats say they would like the party to swing more towards the center. now, that's counter to the trend of the direction the democrat party is actually going in. i'm surprised at that poll. how about you? >> yes. gallup also has a poll that says the same thing, 54% of democrats want their party to be more moderate, and 57% of republicans

want their party to be more conservative. so what that means is that at least for partisans to identify as republican or democrat, are really not comfortable with this shift to the far left. if you look at something like the example of abortion, only 13% of people in the united states actually believe third term abortion should be legal. these far left policies that if you are on twitter or watching a lot of mainstream media, you think makes up the majority of the country's opinion, it really doesn't. the country is a lot more conservative, a lot more moderate than people like aoc and elizabeth warren would like to believe. stuart: you should see our e-mails and posts on facebook. thank you for joining us. appreciate it. check individual stocks. there's some movement here. look at alphabet, that's google, really, fresh off a bittersweet earnings report. profits golden, investors aren't liking how much they are spending. the stock is now down 14 points. frankly, i think that's -- two

billion monthly users of youtube, unit of alphabet? come on. check disney. they are reporting earnings after the bell today. we are walking that up. virtually no change at disney. still at $111 per share. you are looking at a -- no, you're not. after the bell today, 4:00, disney's earnings. there you go. that's the place to be. 4:00, the fox business network. catch disney reporting right there. now you are going to look at a live picture of police in mexico. they are at the border, riot gear, awaiting the arrival of the migrant caravan. we will get a live report from the mexican side of the border in a moment. this just as the u.s. is set to start building portions of the wall in texas, with or without a deal with the democrats. looks like good news, given the arrival of the caravan. we will ask the border patrol council in a moment. ♪

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rnc chair joined maria bartiromo this morning. here's what she said about the state of the union. >> you are continuing to see the president put forward bipartisan compromise to democrats, putting daca on the table, democrats said if government opens, we will work with you in good faith to find a compromise.

we know there's an immigration crisis. the president did that. he's going to continue to keep that theme and we need to put aside our political differences. the american people want to see us work together to solve real problems that are facing every american.

stuart: that migrant caravan has arrived on the mexican side of the border on the same day, it arrived on the same day president trump gives his state of the union speech and makes his case for border security. griff jenkins is with us from the mexican side of the border. what's this, military police now involved? reporter: since i have been following caravans from last year, i have not seen this sort of police presence amassing here. the military out here along with the federal, state and local law enforcement. there are hundreds of police out here, armed to the teeth, some in riot gear, just on this side of this chain link fence topped with barbed wire are the 2,000 plus migrants that began this journey from honduras on january 15th. we were there, we began with them. they came into mexico from guatemala with welcomed arms to

a new mexican president, that was very pro-migrant. they got a ride here yesterday by buses provided courtesy of the state. but right now, they are being contained, they are not allowed to come and go freely. we spoke with the mayor of this little town, why so much police force. he says he wants to contain them to protect the community, to protect themselves and to prevent them from going to the border separating mexico from the u.s.. across from us is eagle pass, texas, a town that has little fence and wall except for at the port of entry, because it is largely riverfront, the rio grande is what separates them and it's very easy to cross. border patrol officials over there say they are very much prepared and ready with every asset they need should these migrants try and cross that river border. but you know, it's a situation where they are seeing a more than 300% increase in unit

apprehensions and are doing more than five times the number of water apprehensions from this time last year. stuart: thank you very much indeed. back to you shortly. we will stay on the border security issue. america is set to start building, start building portions of a wall in texas with or without a deal from the democrats. brandon judd with us now, national border patrol union president. this is news to me. they are actually building new sections of the wall. tell me about it. >> for anybody that's a fan of border security, this is great news. you know, the caravan that just arrived south of del rio, you can call it coincidence, you can call it fortuitous simply because it shines that spotlight on what border patrol agents are facing, when you hear nancy pelosi say that fences don't work, i would like her to look me directly in the eye and tell me that because i patrol the border and i can personally tell you that fences do work, and i'm

grateful that the president is looking at all of his different options in how to construct a border wall. stuart: who is paying for these newly built sections of the wall? >> so what i think, there's obviously money in the budget that the executive branch can use. i think that he's looking for every single loophole that he can find in order to get the money that he needs. what's really interesting is from president clinton to bush to obama, every single one of them were given money to build walls, fences, whatever you want to call them. they are border barriers. even obama built new miles of border fence, and so to say that this president, president trump, shouldn't be given the same resources that his predecessors were given is completely ridiculous. we can't achieve border security unless he's given the resources that are needed. stuart: there is now a new large encampment of caravan people on the southern side of our border, and that follows other caravans that arrived previously.

i believe that more caravans are on the way. is the new normal a vast counting out on the southern side of the border, is that a new normal? >> unfortunately, it is. what we're seeing is as long as these people know that they can exploit the loopholes in our immigration system, that they can cross the border illegally and then just get released into the united states, they are going to continue doing what they're doing. we have to call upon congress, both democrats and republicans, to solve and close these loopholes in order to maintain border security. stuart: it's more than just a wall. you have to reform the asylum rules. that's what you have to do as well. >> absolutely. again, there's pieces of the puzzle, we have to take a holistic approach but we have to take each individual piece, put those pieces together to create one landscape. once dwwe do that, we will get border security but we need to work on those pieces individually. a wall is part of that piece. asylum is another part. there are a bunch of pieces we need to look to do.

the executive branch can do certain things. the congress can do other things. we need congress to close those loopholes. stuart: brandon judd, i'm sure you will be watching state of the union tonight, as will we all. see you later. thank you very much. some individual stocks that are moving and i'm going to report them for you. higher profit and a very rosy forecast from estee lauder. look at that, 12% higher. higher revenue at ralph lauren. my daughter works there. the stock is up a very solid 8%. now we are going to -- microsoft up as well. now the ad from bud light, got to get to that, making fun of its competitors because they use corn syrup in their beer. the ad made the corn lobby angry. next, a corn farmer who wants to set the record straight. ♪

stuart: the national corn lobby not happy about this. bud light ad aired during the super bowl criticizing other beer makers for using corn syrup.

roll tape. >> that's not ours. we don't brew bud light with corn syrup. >> miller light uses corn syrup. >> let us take it to them at once. if something did happen we need the wizard first, right? stuart: we all laughed. we all liked it. the gentleman right here does not like it. he is kevin ross, first vice president of the national corn growers association. are you genuinely outraged at that ad? >> yeah, for sure. it was an attack against corn farmers and a misleading ad that, you know, it felt like it was a punch in the gut in the time of a tough farm economy. last thing i wanted to be doing was -- stuart: what's misleading about it? >> it implies that corn syrup is an inferior ingredient and you know, it attacks my industry, it attacks the things that corn growers do and a safe product for years that's used in many different foodstuffs. stuart: but you do, you got more

publicity from this than almost anything else recently. and you wouldn't have this publicity if it wasn't for the ad. >> that's for sure, but yeah, i can tell you that i wasn't planning on being on twitter and having something go viral on super bowl sunday because i was pouring out beer versus having a beverage. that was not in the plans. i don't think anybody wants to have that on super bowl sunday. stuart: didn't you know about this beforehand? >> no. no. you know, everybody was caught off guard. as soon as that commercial aired, i had a lot of friends and neighbors that were calling, you know, or texting me saying hey, can't believe they just did this, and you know, i was as shocked as everybody else. i think it was misleading and just a misguided move on their part, attacking, you know, attacking an industry that really deserves no part of that, and they use the product in many of their other -- in many of their other beverages as well

as, you know, as well as brewing process. it was just, it was kind of an odd tactic. stuart: okay. how far are you going to take this? would you personally drink a bud light in the future? >> well, i mean, i have drank some in the past for sure. you know, if you see my tweet online, it's a guy with a beer gut pouring out beer which is just kind of a weird deal. but you know, we have a little fun with it and we hope to take this conversation into a more positive spot. nobody wants to -- we weren't looking to pick any fight with bud light, but it sure seemed like they were picking on the corn industry and you know, i'm going to defend my friends and neighbors in the industry that we have. stuart: okay. good luck with that. i will buy you a six-pack of bud light if you drink it. thanks for joining us, sir. see you again soon. >> i appreciate it. stuart: on the strength of a bud light. there will be, i promise you this, sincerely, more "varney"

after this. ♪ . . woman: my reputation was trashed online,

i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you're under attack, i recommend calling reputation defender. and consider joining their groundbreaking campaign to give every american the right to remove old, inaccurate search results by going to righttobeforgotten.org. vo: if you have search results that are wrong or unfair, call reputation defender at 1-877-492-6705. stuart: our producer says we're about to see, you're looking at cool video. not spectacular, but i take cool. it is from norway. it is a floating underwater tunnel, okay? it allows people to drive under

water through this very deep norwegian fjord. >> that is cool. >> i think that is cool. >> i want to see it. stuart: it is not spectacular. it is very cool. let's get rid of it. important stuff now. deirdre, tonight in the state of the union message. i will stay up all the way through. >> all right. stuart: i will be concentrating on the facial expression when president trump speaks about the wall. trump here. nancy pelosi right there. camera here. you will be watching the same thing. >> i will plus the same thing. word count, wall, and economy. stuart: word count, wall, economy is nowhere near as exciting as facial expression of nancy pelosi. >> it is an "snl" sketch for entire speech. it will be fantastic. >> precisely, ashley. >> does she have a face look likes hike she that she is

smelling something bad? stuart: lou dobbs, 7:00, neil cavuto, 8:00. trish regan 11. all-star cast, don't miss it. neil, we're watching you too. neil: there is a drinking game. i will tell you about that later, it involves huge. we'll see what happens. obviously state of the union address tonight. the president will call for bipartisanship amid the border tensions that could prove easier said than done. whether either side is remotely interested in reaching out to the other. to "the hill"'s bob cusack. what can we expect? >> we'll see combination of things, neil. i will see if these parties can agree on anything. he will talk about lowering prescription drug prices, struck instruct that is two areas they can be agreement on. there will be talk about the shutdown and border wall. there will be stuff for the base. also trump needs to show that he is