it is incredible. maria: it is. looks great, jeff. thanks so much. jeff flock. >> my 3-year-old would be at home there. maria: he's got a lot of trucks. just a great show this morning, you guys. have a great day. seize the day. "varney & company" begins now. stuart, take it away. stuart: good morning, maria. good morning, everyone. i wish i could deliver a firm official statement from the china trade talks but i can't. yes, the talks just racheted up to a higher level. yes, all the top people are there. we do have reports that some of the thorny issues like technology theft have been addressed and we are told that that memorandum of understanding is being hammered out but no official statement at this point. the markets pretty much in a wait and see mode. stocks will open a little lower this morning. another very positive report on durable goods orders came out earlier and we are down about 40 points for the dow. we have had a couple days of

churning around but that will change when and if there is firm news on china trade. look at the nasdaq, up for eight days in a row. technology is on a tear. mark zuckerberg will hold a private meeting with britain's culture minister, jeremy wright. he's the man who wants to regulate facebook. he's going to urge zuckerberg to testify in person before britain's parliament. zuckerberg's been resisting that. but after the brits called facebook digital gangsters, zuckerberg decided he had better meet britain's digital minister. here's perhaps the most important story of the day for investors. you are going to get your chance to buy into lyft, the ride sharing company. it's private now but it's going public by the spring. lyft is setting the stage for uber and airbnb. that means a whole new range of american high tech companies will be open to investors like you. stay there, please. nike, johnson & johnson and jussie smollett all making news. we've got it all for you.

"varney & company" about to begin. stuart: i think we better begin with this. duke star player injured early in last night's big game against north carolina. his nike sneaker fell apart, a nike sneaker. the stock is down this morning. for those who don't follow basketball, the player is zion williams, considered the next superstar. susan li at the new york stock exchange. what is nike saying about this? susan: nike has come out with a statement because everybody is talking about it here on the floor of the new york stock exchange this morning. nike says we are obviously concerned and we want to wish zion who is considered the most electric basketball player in a generation, a speedy recovery. the quality performance of our products are of utmost importance. while this is an isolated occurrence, we are working to

identify the issue. this is considered one of the biggest games of the season last night. 33 seconds in, you see this event. these shoes are not cheap, $150 each, and of course, nike wants to sell a lot of them, especially on the foot of the near-certain number one draft pick for the nba in june. so yes, they are coming out with a statement. nike says they will work on it and we are up 14% this year. just for you, stuart, remember that slogan, it's got to be the shoes? not in this case. stuart: true. bad p.r. put it like that. back to you later, thank you very much. now, the story of the day really, this is what people are talking about, "empire" actor jussie smollett surrenders to police. he's accused of filing a false report in connection with his january 29th attack claims. come on in, fox news contributor. jason, i'm mad as hell about this. the left and the media jumped on

it because they wanted to link the president to racial violence. what's your take? >> no, i think that was the goal of jussie smollett himself. that's my guess. i'm proud of the chicago police department for not just swallowing it, but actually doing an investigation. he's now been arrested, he's in the custody of the detectives there in chicago, and he should be fully prosecuted. everybody who jumped to their conclusions also needs to come back and apologize and set the record straight. stuart: yes, because it wasn't just the media that jumped on this. it was a lot of celebrities, including a presidential candidate, kamala harris. when she was asked about her initial tweet where she called it, what was it, a modern day lynching, i think, she pretended -- she looked around as if she didn't know or didn't remember that she had tweeted that. they've got to come out and say what's going on here. >> yeah. now she's come back out and said well, we're going to have to review all the facts but that wasn't the case when it fit

their political narrative. it is a big story. it should be -- it is a hate crime almost in reverse and i got to tell you, it is wrong. it sends the wrong message to a lot of people and unless they throw the book at him and prosecute him to the fullest, i think it's going to encourage others to try to do the same. stuart: jason, thanks very much for letting me get that off my chest. i do appreciate that. we will bring you back in just a second for other issues. right now, i want to talk about lyft. it's an app company that lets you hail a ride. we all know that. it's going public soon. they are beating uber to the punch. come in, market watcher rebecca walter. welcome back. are you going to buy lyft shares? >> i just might, stuart. just exciting to be able to actually buy an ipo for a ride sharing company. it's interesting, you know, the race between uber and lyft, they obviously are winning it. they are obviously a lot smaller so that makes more sense but also, they have this super voting bloc that uber is saying

they will have one vote, one share. big difference. stuart: yes, that's true. look, this ipo of lyft, it opens the door for us ordinary people to invest in a whole new range of high tech companies. we have had the social networks go public a few years ago. now it's this new form of internet-based company. i think it's a terrific opportunity for all investors. whether you like the companies or not, this is a new area. >> it is. you're absolutely right. it's a new area and it's exciting and it's going to be a big year i think for ipos, 2019. it could be the biggest year for ipos in tech in a long, long time. we are really excited about that. i don't know about the timing for the end of march. we've got europe brexit happening at the same time frame. that's scary to me. that might cause ripples globally and people won't want to go ipo that time frame. we have to see if it actually happens at the end of march. stuart: i just like the idea.

stay there, please. going to come back to you in a moment. got to talk about facebook. mark zuckerberg, founder, will meet britain's culture secretary at facebook's headquarters in california today. this is following a report in which facebook and other social media outlets were called digital gangsters by the brits. jason chaffetz, come back in. seems to me it's going to be europe that regulates facebook way before we do. >> yeah. i think if you are alphabet and facebook and twitter, you really, all eyes are on europe. not only do you have the digital gangster comments and the push by the uk and you know, you have these issues about the right to be forgotten, you trade your data, information, shouldn't somebody be able to get out of that contract and probably the most significant thing yesterday was the eu endorsing copyright reform. this means that anybody who produces digital content is going to be able to charge an alphabet or facebook, they are not just going to be able to

upload this for free. they have to get permission and may have to pay royalties in order to have content on their websites that they have normally gotten for free. stuart: can you give us any insight into what kind of regulation we might see in america? >> i think we are lagging behind. i think the focus will be on children and digital privacy, the ability for people to grab that information back. in this country you are allowed to enter into a contract with, say, alphabet at 13 years old. what if you change your mind? what if you say i no longer want to be in that contract and i want that information back, i don't want that out on the internet? i think at some point, congress is going to have to address that and then when you have data loss and data theft, and you have places like facebook reselling your information, there's going to be some lawsuits that i think will change that direction. but congress is woefully behind the uk and certainly behind europe. stuart: i think you're right. jason, thanks for joining us. see you again soon.

thanks very much. let's get back to your money. quick look at futures. we will be down maybe 50 points for the dow industrials. we do have two stocks that are dragging on the dow this morning. johnson & johnson and nike. what you're looking at now is live pictures from inside the room where the china trade meeting is taking place. secretary mnuchin there. i see larry kudlow to his right. all the top names are there and are faced by the chinese delegation. the meeting just started. now, this is a photo op, as it's called, where they spray the room, everybody can be seen. they are all going to be talking. you are not going to hear what they're talking about. we hope that at some point there will be a statement as to what's come out of this current meeting but at the moment, they are getting together, it's a very high level meeting, and that's what everybody is looking for. what did you say? i'm terribly sorry.

edward lawrence is standing by. he's got details of what's going on. edward, tell us, please. reporter: yeah, just a little bit of insight as to what's going on. reuters is reporting they will work on six memorandums of understanding na the u.s. has with trade issues with china. they will cover a lot of things. also a ten-point shorter list to reduce the trade deficit that we have with china. according to reuters, these memorandums will cover these areas. forced transfer of technology, intellectual property, the u.s. wants china to stop those forced ventures where the u.s. has to turn over technology to chinese companies. also make laws that tighten up their patent filings so they don't steal the patents the u.s. files with china. also a memorandum of agriculture, buying more agricultural products, allowing our products into their market, open up the access there. financial services is another memorandum. that is going to cover letting banks do business in china as well as visa and mastercard, something the u.s. treasury department has been pushing for.

china has been moving twhat waya little but they really want to open up the market to those. also remove non-tariff barriers by stop manipulating their currency as well, buy more u.s. products to reduce the overall trade deficit. they have a lot of talking here. this is going to be very high level talks today and tomorrow. we will get an update from the u.s. side after tomorrow as to exactly what went on but it looks like six memorandums of understanding. stuart: edward, just one moment before you go. i want to make sure i've got this right. six memorandums of understanding, two of which would deal with very thorny issues, intellectual property and forced turnover of technology. did i get that right? reporter: exactly. and very specific, the u.s. trade representative says he's putting enforcement mechanisms into these memorandums, very specific enforcement, very specific sort of triggers for those enforcements if the chinese don't follow through. the u.s. is very concerned that the chinese will make these agreements, then just ignore

them going forward. stuart: okay. that sounds promising to me. edward lawrence right on it. thank you very much indeed. you share that? ashley: absolutely. liz: it feels like still structural thorny issues remain. they have to get consensus on it. stuart: they are getting them down on paper. a memorandum on these two thorny issues here. ashley: ip is massive and forced shared technology. two big ones. liz: no indication china will bend on that. stuart: true. but they've got it on paper. there's the meeting. they are holding it right now. i have to believe that's progress. liz: feels like progress. you know, they have to get consensus. you wonder if the president will meet one-on-one with president xi of china. still looking for that as well. stuart: this news is just coming to us as we speak. i would have thought it would make some difference to the dow industrials, but we are still down about 50, 60 points. i thought there would be this positive news but i don't see a positive reaction. ashley: still wait and see. but to see them at the table

facing each other and talking about these issues is positive. if we get any positive headlines, i think that could move the market. stuart: rebecca walser is still with us. you are our money person of this particular block. i'm reading that as positive. you heard what edward lawrence had to say. you saw the video of the meeting. you think it's positive? >> to be a fly on that wall. absolutely it's positive. six dedicated directed memorandums of understanding is huge. obviously like liz mentioned, there are still some things i didn't hear that i would like to hear but you know what, this is china. we aren't going to get a perfect deal. we are so much further ahead under president trump than we have ever been. this is huge news. the market should love this. stuart: overall, you are still bullish, i take it? >> i mean, yes -- yes. we've got some struggles, you know. this is positive news so this makes me definitely think bull. yes. stuart: rebecca, hold on. i just got this presidential tweet coming in. it's not about china trade. here it is.

let's see. i want 5g and even 6g technology in the united states as soon as possible. it is far more powerful, faster and smarter than the current standard. american companies must step up their efforts or be left behind. there is no reason that we should be lagging behind on something that is so obviously the future. i want the united states to win through competition, not by blocking out currently more advanced technologies. we must always be the leader in everything we do, especially when it comes to the very exciting world of technology. wait a minute. isn't that related to the china trade talks? liz: yes, it is. china now is advancing in 5g. there is kind of a cold war arms race in 5g where china plans to lead the world. $150 billion plus invested by china already into 5g. china seeks to dominate here. this is a connection to the internet of things with your smart home and even more.

stuart: we have developments in china trade linked to developments in technology, linked to china and the president's tweeting about it. that's what we've got. the dow futures still show a loss of 50 points. a lot going on. next case. the migrant caravan has reached the southern border, right across the border from el paso, texas. evening edit has the story. liz: this is another migrant caravan. about 1,000 crossed the guatemalan side. last week, 1800 were at the texas border and many of them dispersed. remember they were throwing tables, pipes and more at the authorities and more. here's the problem. mexican authorities in conjunction with u.s. authorities have been closing shelters to disperse migrants who do not have valid claims under u.s. law. the center for immigration studies is warning about this. when they disperse into mexican society, they still try to cross at weaker parts of the border,

putting even more pressure and mexico has a new number for the number of criminals that were caught in that last caravan. 100, including 25ms-13 gang members. so this is still a big issue there. stuart: it's a developing story. i want to stay on the story and bring in rnc chair rona mcdaniel. the wall looks like it's stalled at the moment. this caravan has arrived. there are thousands of people camped out on the other side of the border. what happens next? >> well, the wall is being built. congress did just grant $1.37 billion to the president to build that wall so trust me, he is working on it. but the president recognizes we have a real clear and present danger with these immigrants trying to cross into our country illegally. why aren't democrats joining the president on this? this is common sense. we should know who's coming into our country. we don't want criminals coming into our country. we know there's drugs coming into our country. there's only one reason why

democrats aren't supporting the president. it's politics and they should be putting the safety of the american people first, like our president is. stuart: i think the political tide should, bearing in mind the situation which we've got on our screens right now, that should be turning in the president's favor. but i'm not sure that it is. >> i think it is. we have seen the numbers increase as americans are getting educated about the number of crossings. we have 2,000 people trying to cross illegally every day. we have heroin, 90% of the heroin is coming across the southern border. we have 300 heroin deaths a week. as people are hearing these statistics and meeting people in real life who are dealing with the opioid crisis and hearing about these human trafficking stories which are tragic, they are saying president trump's right, democrats have voted for this in the past, with the secure fence act, they supported it under obama so why aren't they coming to the table with common sense solutions on this. the president's leading. stuart: in the era of mass migration, you have to do something about this. i want to leave time to talk about bernie sanders.

he's running again, raised a lot of cash in his first 24 hours. he seems to be popular. but i'm guessing that you would just love to have the president run against bernie sanders in 2020. you would, wouldn't you? >> i would. i think that it would be the ultimate choice for the american people. do you want socialism, do you want the government to take over every aspect of your life, do you want to be the next venezuela? bernie sanders said the american dream is more likely to be realized in venezuela. he conveniently has now deleted that tweet but he did put that out on his website. stuart: would you be worried about a moderate? supposing joe biden were to run and gain the nomination, would he worry you more than bernie sanders? >> i don't think there's room in the democrat party for a moderate right now. you are seeing them lurch so far left, you see that the bernie supporters are still feeling the bern. he has a strong presence in that party. they are so out of touch with the american people, the green new deal, government takeover of health care, education, of every

aspect of our lives, and president trump's delivered higher wages, jobs coming back, people are making more money. people feel good about where our country is. stuart: in his speech in miami just the other night, did he lay the groundwork for his campaign in 2020? he said look, it's capitalism versus socialism. that's the campaign, right? >> i think so. i think that's going to be a question that the american people are going to have to answer. do we want to continue down the path of prosperity and capitalism, which has allowed people to achieve the american dream in this country, door or want to go to socialism and all we have to do is look at venezuela, cuba and other countries where this has thrust people below the poverty line. it is frightening what democrats are proposing. it sounds great, free everything. it's not true. look under the hood. you are going to be paying for it and it will bankrupt our country. stuart: okay. thank you very much indeed. good stuff. i just got this tweet coming to us from the president himself. i'm reading it now.

the wall is under construction right now. ashley: all right. stuart: that could be in response to my statement just a moment ago that the wall is stalled. sorry, mr. president, if i got it wrong. as you say in your tweet, the wall is being built now. thank you, mr. president. okay. let's get to futures. let's get back to your money. here we go. where are we going to open this morning? down about 40, 50 points for the dow. down maybe 15 for the nasdaq. case closed. seems every day, we've got an aoc story. today's no different. the new york city billboard that calls her out on amazon. aoc is not backing down. what a story. we've got it for you, of course. our grandparents checked their smartphones

zero times a day. times change. eyes haven't. that's why there's ocuvite. screen light... sunlight... longer hours... eyes today are stressed. but ocuvite has vital nutrients... ...to help protect them. ocuvite. eye nutrition for today.

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.

stuart: just a few minutes ago, i said the wall is stalled. the president immediately tweeted this and corrected me. he says the wall is under construction right now. thank you, mr. president. there's a billboard near times square that goes after congresswoman alexandria ocasio-cortez over amazon's decision to pull out of new york. thanks for nothing, aoc. what is her response? ashley: she's not backing down. still says it's the biggest giveaway in state history. here's what she tweeted,

interestingly. she says few things effectively communicate the power we've built in fighting dark money and anti-worker policies like billionaire funded groups blowing tons of cash on whack billboards. this one is funded by the mercers. p.s., fact that it's in times square tells you this isn't for or by new yorkers. reference to the mercers, bernie mercer, co-founder of home depot that's behind the job creators network who bought the billboard in times square. she's not backing down one bit. stuart: the fight goes on. amazon still ain't coming here. ashley: that's right. stuart: look at futures, please. we had what i thought was positive news on china trade. we showed you the shots of inside the white house this morning, where the two sides are lined up, top people on both sides there, and they've got some kind of memorandum of understanding on six different issues, including two thorny issues. i thought that was positive. it's made no difference to futures. we are still going to be down, what, maybe 50 points for the dow, 18 points for the nasdaq.

i'm still calling it positive news on china trade. we'll be back with the opening on wall street. ♪ driverless cars. all ground personnel please clear the hangar. trips to mars. $4.95. hydroponic farms. robotic arms. ♪ $4.95. delivery drones or the latest phones. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity the first-of-its-kind lexus ux and ux f sport, with the latest safety system standard, best-in-class turn radius and best-in-class mpg. experience amazing at your lexus dealer.

stuart: all right. the opening bell will ring momentarily, 20 seconds, to be precise. we will start trading. we are expecting a loss right

now at the opening bell. i'm saying we've got some fairly positive news on those trade talks which have just started again in washington, d.c. but we've got baa bad number on durable goods orders, cap x spending that was disappointing. we are going to see the market go down. it's 9:30 eastern time. off we go. we have opened down 30. down 33. down 35. not a huge loss. i can see a lot of red on the left-hand side of the screen. those are the individual dow 30 stocks. a lot of them have opened lower but not by much. we are off 37 points from the dow, about .1%. how about the s&p? i'm pretty sure it's down, .2% there. not a huge drop. how about the nasdaq? as we said, it's been on a tear recently of eight days in a row, down fractionally this morning, .17%. so flat to lower all across the board this thursday morning. look who's here.

michelle mckinnon makes a return. danielle dimartino-booth joins us. elizabeth macdonald and ashley webster is with us. i want to start with nike. duke's star player injured early in last night's very big game because his nike sneaker fell apart. the stock is down a buck this morning. michelle, not a big influence on the market, but a terrible headline. >> terrible headline for nike. back in 2017, they had something similar happen with lebron's jersey actually ripped, so that was really negative news. i think it's very different that a shoe broke versus a jersey ripped. now, i think one time is fine but if we start to see this multiple times -- stuart: it injured the player. star player. >> right. liz: he's the wonder boy. whichever the weakest team is in the end gets him in the draft and he sprained his knee. stuart: zion williamson, 18 years old, 280 pounds, almost 7

feet tall. liz: bends the backboard in half. >> duke is a nike-sponsored school so you wonder about the other brands that are watching this. everybody is so disgruntled. this was the number one ranked team in the nation. unc took them down. stuart: first time on the show and you reveal all this knowledge about basketball. that's pretty good. >> he's a phenom. stuart: what do you know about lyft? they will go public, we think by the spring. i think it's a wonderful opportunity for ordinary people to get into a new line of technology. would you buy it? >> i actually would. i boycotted uber personally years ago. i have been a loyal lyft rider and have always been impressed with the service, the fact they do background checks and they have established a much better reputation in the marketplace than their closest competitor. stuart: all right. we are off and running. ashley: why are you boycotting uber? >> the service was bad, the fees were bad, you could never get a human being on the phone. you don't see that with lyft. you just need a little bit of

extra customer service. it goes a long way. stuart: pretty good commercial. >> it wasn't intended. stuart: now, very serious stuff. the justice department has subpoenaed johnson & johnson. they want information on talc safety. michelle, down the road, is this going to have a big impact on the stock? >> it absolutely could. i know we were just chatting about how technically the relationship that they are showing us is a statistical relationship, not necessarily a causation. that means something, but stuart, i will put on my adviser hat right now and this is normally why i don't encourage investors to own just one stock, right. you need to own baskets of stocks. you need to own funds that represent multiple stocks, because just like this headline, you never know when something's going to happen and can just crush the stock price. >> it's not a big part of j & j's overall sales but you have the s.e.c., the doj, senator patty murray, 13,000 lawsuits. it's a lot.

stuart: it's a struggle, an uphill climb. liz: it feels like erin brockovich. stuart: you are going to be back if you're not careful. ashley: look out. stuart: check the big board. we are now four minutes into the trading session, down 45 points. the dow is holding above 25,900. got it. more money coming in over the transom at jack in the box. by the way, i believe they put themselves up for sale. that's the primary reason why it's up 4%. facebook's chief mark zuckerberg will meet britain's culture secretary in california today. remember, the brits have called facebook and other social networks digital gangsters. no impact on the stock thus far, down 45 cents. i'm intrigued with this one. apple and goldman sachs plan to start issuing this spring a joint credit card. they are going to pair it with new iphone features to help users manage their money. do we like this?

the look on your face says get away from me. >> i feel like it's totally a stunt for us to buy more apple. ashley: they get a small slice of the action when people use apple pay. by having this credit card, they will get a much bigger slice of the money. stuart: ah. liz: go ahead. >> i think what investors want is what's apple going to do with this gigantic cash pile, what's the next big acquisition to ignite the stock? that's debatable. stuart: cash is now, what? >> $130 billion. just a little bit of money. stuart: it was a quarter trillion not that long ago. >> i think it's $130 billion at this point. stuart: then we have chris hemsworth, very famous guy, will play hulk hogan in a new netflix movie. again, this just adds to netflix content, doesn't it? they are just building it up and building it up.

the stock's up only 42 cents but it's up. >> chris is hot. stuart: i've got to ask you if netflix is going to win the streaming battle, because they've got good competition. >> they do. the competition is serious. as you have seen with some of their award shows, they are getting critical acclaim as well. netflix's competitors. i would say they do have a strong hold, at least in my house. stuart: the retail ice age, layoffs are piling up. more are expected this year. i don't think these jobs are coming back, are they? liz: they're not coming back. it's not just a retail story. you have seen christmas layoffs year after year for six solid months and you are seeing some of the damage spread beyond the retail sector. this is not just a bricks and mortar story anymore. you will see the vestiges of record merger and acquisition activity in 2018 start to flow through into synergies which

translate into layoffs. >> forgive me. will you see a walmart buy a macy's? will you see a target buy a struggling jc penney? >> the gallows humor was they were going to buy macy's and they were going to close down -- i mean, we joke about these things but it certainly is feasible when you consider the fact you can get the economies of scale by reducing the footprint and bringing on another big brand. stuart: okay. the consumer seems to be in good shape. ashley: seems to be? stuart: i'm basing that on walmart's numbers from the fourth quarter. >> they were phenomenal numbers. >> how did so many people get it wrong about that? tax refunds coming in weaker than expected, the shutdown is going to hurt consumer spending. it was a buy on the dip move when the market tanked. ashley: absolutely. >> look at it shooting up now. stuart: we can say it now. you should have bought on the dip. [ speaking simultaneously ]

>> i was bullish in december. the consumer is very healthy. stuart: look at this. cheesecake factory, restaurant chain, a lot of them in malls, by the way, the numbers were pretty good and the stock is up 4% as we speak. i've got it written down. same store sales, cheesecake factory, up 1.9%. >> great brand name. ashley: it is. >> they are in shopping malls, in the malls that have microsoft and apple stores. they are in the high end malls and they aren't going anywhere. stuart: american eagle, this is interesting. american eagle clothing store, i'm coming to you, don't worry -- >> i know it well. stuart: they lowered rental subscription service for clothing. as i understand it, $49.95 a month and you can rent three items at a time and exchange them an unlimited number of times. have i got that right? >> yes. they are going after rent the runway. >> teenagers do this.

>> teen agers. i think they might, rent a runway is very successful. stuart: what is that? liz: you rent clothes. >> you get four pieces and it's unlimited per month and it's $150, then you can opt for just four pieces for one month and it's $100. it's pretty successful. lot of people in new york do it. stuart: it's their attempt to come back from straightforward sales. >> right. right. getting away from the fact, from the idea that every single piece is new and now we are going into, we are reusing our pieces, it's greener, more modern. >> germs are happier. >> use the dry cleaner's. stuart: it's new to me. the idea of renting clothes. >> yes. yes. renting bags. i rented a bag over the weekend. stuart: you did? ashley: you did? stuart: you rented a bag? >> i did. stuart: which one? >> a cool little crocodile bag. i actually bought it.

you can rent to buy. stuart: how much did you pay to rent it for a weekend? >> well, i rented for the whole entire month and i probably got 15 different pieces for $100. because difficult the promo. first month is $100. stuart: that to you is worth it? >> yeah. stuart: it's 9:40 eastern time, ladies and gentlemen. fascinating. absolutely fascinating. the producer is telling me a joke in my ear. ladies, thank you very much indeed. check the big board. we are now ten minutes in and down 65 points, just below 25,900. the 2020 campaign will be all about capitalism versus socialism. that's my opinion. question for art laffer, the man behind reaganomics. how about this. israel will launch a spaceship to land on the moon and they are

doing it tonight. we are talking to the man in charge of nasa all about that. israel goes to the moon. how about that. there's a head line for you. ashley: that's a headline. stuart: the british government in turmoil. nearly a dozen lawmakers have resigned or switched parties just this week. i say nigel farage's fault. ashley: he said it. stuart: he will join us next hour. stay tuned for that. ♪ (butcher) we both know you're not just looking for pork chops. you're searching for something more... ...red-blooded.

right this way. you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in.

stuart: we have a modest loss for the dow industrials in the first quarter hour of business. we are down 60 points as we speak, 25,888. how about google. i should say the parent, alphabet. some big name companies that you know are pulling ads from youtube. i want to know why. susan li at the new york stock exchange, tell me why.

susan: it's a big controversy, stuart, because they are pulling their ads because their ads appeared alongside children's videos on youtube, where pedophiles made very suggestive and graphic comments in the comments section of these videos. companies have said they stopped buying advertising on youtube and this follows a similar controversy back in 2017, where a lot of these major brands stopped advertising on youtube because a lot of their commercials are running alongside extremists and also racist videos on the sites. 1.8 billion people visit youtube every month and this is one of the main ways people make money off advertising. back to you. stuart: thank you very much indeed. all right. switching gears completely now, socialist bernie sanders raised six million bucks in the first 24 hours after announcing he would be running in 2020. come in, former reagan economist, art laffer. art, good morning, sir. >> good morning.

stuart: i bet you never thought you would see the day where socialism was a viable policy theme in american politics. >> i don't really think it is a viable theme, to be honest with you, stuart. i think bernie sanders is not going to go very well here. people just know it doesn't work. it doesn't make sense. we have had socialists in america for years and years and years. we even have had communist candidates and you know, it just doesn't work and it never catches fire. it has a small cadre of heavy support that they sort of want everything free. stuart: wait a second. take the name away, forget the name socialism. you look at this medicare for all. that is socialized medicine and it's part of the platform of almost all the presidential candidates. they don't call it socialism but that's what it is. and it is popular. so is a degree of free college and so is taxing the rich. those are all essentially socialist policies and they are now very popular in the democrat

party and very popular with millenials. you have to get a word in edge-wise here. >> that's all right. i'm listening. you are correct on all of that and wait until we get to the election. there's one poll that really matters. that's on election day, second tuesday after the first monday or whatever it is in november. when that happens in 2020, i don't think you are going to see these be winning issues. we'll see. if they are winning issues, you know, then you will see a one-termer, a big crash, then we will get back in again. stuart: hope you don't leave the country. >> i never will leave the country. believe me, i'm willing to -- my social compact with the u.s. is that if they can live with my guys when they're in power, i will live with their guys when they're in power. that's my social compact with the u.s. i don't want to ever leave. i think it's immoral to leave the u.s. except it's not immoral to leave britain and come here. let me tell you. ashley: thank you for coming. stuart: now, i just -- >> actually, i meant that for you, too. ashley: thank you very much. stuart: i just want you to

listen to president reagan, what he said about socialism. watch this, art. >> you know there's a ten-year delay in the soviet union of delivery of an automobile and only one out of seven families in the soviet union own automobiles. there's a ten-year wait and you go through quite a process when you're ready to buy, and then you put up the money in advance, and this happened to a fellow and this is their story that they tell, this joke. that this man, he laid down his money and then the fellow that was in charge said to him okay, come back in ten years and get your car, and he said morning or afternoon? and the fellow behind the counter said well, ten years from now, what difference does it make? and he said well, the plumber's coming in the morning. ashley: that was good.

stuart: what do you think he would say about socialism in america today? >> same thing he said about it back in the day when he was there. it doesn't make any -- you know, quoting trump, america will never be a socialist nation. neither will venezuela within a few weeks. they are going to come out of this roaring and doing well by getting rid of maduro. they have first-hand experience of what it does do and so do the cubans. there are a bunch of people who do and you will never see a better capitalist than one who lived under true socialism. by the way, let me just tell you, the socialists are capitalistic in their own personal lives. let me tell you. i threw a pillow case full of 20 dollar bills at a bernie sanders rally at the sociology department at harvard in cambridge, mass, a slight wind going, the bills floated all around. within 30 seconds they were all picked up. even the socialists respond to incentives. stuart: that's a good story. >> believe me, they really do.

stuart: you didn't do that, obviously. >> there's nothing more greedy or capitalistic than a socialist out for himself. stuart: art laffer, music to our ears. thank you very much. >> thank you, stuart. thank you, ashley. welcome to america. liz, i enjoyed being with you. stuart: we have just taken a lag down. we are back to 25,800. despite what i'm calling some positive news on china trade talks. now we are down 106. next, a live demo of samsung's new foldable phone. i want to get ahold of this thing myself and i will in just a moment. great news, liberty mutual customizes- uh uh - i deliver the news around here. ♪ sources say liberty mutual customizes your car insurance, so you only pay for what you need. over to you, logo. ♪ liberty. liberty. liberty. liberty. ♪

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today.

and our shirts from custom ink help bring us together. we just upload our logo, and if we have any questions, customer service is there to help. - [male] custom ink has hundreds of products to help you look and feel like a team. get started today at customink.com.

stuart: johnson & johnson and nike both dow stocks, both companies have problems. nike with their exploding or broken nike shoe, and johnson & johnson, a talcum powder problem ongoing. both are down, both hurting the dow. little gee whiz for you. samsung rolling out a foldable phone which starts at $1900 apiece. i do apologize, first. i thought i would have it on the set i could hold and fold. we don't have it with us.

wa we have is the editor in chief of tom's guide. first of all, 1900 bucks for a foldable phone. what's with that? >> okay. the idea is that you have a device that goes from phone to tablet so it's 4.6 inches when folded up and 7.4 inches when it's unfolded. you have a tablet and phone in one which is really great for viewing content but they are also thinking about productivity because you can run three apps at the same time on the screen. so yes, the price is definitely high. stuart: think it's a big deal? >> it literally changes the shape of phones and proves that samsung is a big innovator, out-innovating apple. stuart: you do bring the galaxy s-10 phones, the latest versions thereof. they are going right up against apple iphones. show me two features on these new phones that you think are outstanding. >> okay. one thing i like right off the bat is just how easy it is to unlock. the fingerprint sensor is built right into the display. i can use my thumb to unlock it just like that. boom. i'm in. the other cool thing is called wireless power share. this is a huge battery and it's

so good you can use it to charge other devices, including the iphone. it's called wireless power share. i put my phone on the back, it's charging the iphone. stuart: just like that. >> there's a wireless charger built in. stuart: it's charging the iphone. >> you can charge other galaxies. stuart: when you put your thumb on it to open it up, is that new? i thought you could do that with an iphone. >> this is the first time it's actually built into the display. it takes a 3d fingerprint so it's more secure than touch id was on the iphone. stuart: i put my thumb on it, i'm in. >> yep. stuart: one more feature to show us? >> the other cool thing it has three cameras on the back. it does ultra-wide pictures. here's a picture i took earlier today. this is just with a regular camera. then we use the ultra-wide camera, it gives you a much more dramatic view of what you're looking at. this is something the iphone does not have. it's an ultra-wide lens. stuart: so in your book, these are an improvement on the existing iphones. >> i believe that they are.

stuart: okay. how much? >> ah. the s-10 plus goes for $999 so it's the same as the iphone xs but the s-10 starts at $899, so $100 less. stuart: out of time but you came through again. thank you very much indeed. appreciate it. lyft going public. i think it's great that we can finally invest in a big new technology company. my take on that, next.

. .

brian: seconds away, important news for realers to. exists home sales. problem with the philly fed reading. 4 point decline instead after up tick as expected. market took it down the chin. liz: disappointment. 4.5 million. looking for five million annualized. the market ticking slightly to the downside. still that battle between affordable house prices, unaffordable, tight inventory. stuart: let me interpret that. we're selling homes at an annual rate of 4.49 million. liz: existing homes. stuart: existing homes. back in the day, not that long ago i remember it was six

million a year. housing market was strong. ashley: really booming. liz: three, four-year low. stuart: not recovered yet how about mortgage rates. ashley: i love this time of the week. 4.35. down from 4.37 last week. three weeks in a row we're down. what is interesting the guys at freddie mac saying there is more inventory available, wages are growing on par with home prices. that is the first time it happened in years. there are, despite what lizzie given on the numbers, higher hopes for the spring housing market. stuart: okay. looks like the market didn't like the news on existing home sales. ashley: yeah. stuart: 4.94 million on an annual basis. maybe that adds to some worries about the overall strength of market. the economy i should say. now we're down almost 100 points on the dow jones industrial average. all right? now this, how about some

good news? you are going to get your chance to invest in a whole new range of technology companies. it starts with lyft. that is the ride-sharing company. the "wall street journal" reporting they will detail their plan to go public soon. they're private now. by the spring, you can buy shares, if that is what you want to do. this will open the flood gates to other tech companies that are building on the internet. uber, for example, then probably airbnb. there will be lots of argument about the initial price of these shares, who will make the money. there will be plenty of criticism about insiders getting filthy rich. underwriters making out like bandits. the socialists will be appalled that people with good ideas get to make a billion dollars. my point is not about the money. it is about financial democracy. i want ordinary, everyday people the chance to invest in great new things. if you think lyft is a good

company, offering a great new service, you can buy in. you can take your chance. you can take a shot. personally if i were lyft's management i'm not sure i would be doing this. going public, you will have an army of regulators and lawyers pouring everything you do and say. the stock price will be subject to the social network driven rumor mill, which can be vicious. but i'm not a lyft manager. i'm a potential investor. i'm happy to be given the opportunity to invest in yet another group of american technology companies that are showing the rest of the world how to do it. the second hour of "varney & company" is about to begin. ♪ all right. you heard what i got to say about lyft going public, other technologies to follow. are you with me? liz: yes, here's the thing.

when you go public you get a lot of cash. can you imagine if uber was public, then all of that chaos and controversy spilled out? you can imagine the regulations backlash that would have happened. when you're private you get to pick who is your investor in your company. when you're public, you get a lot of, you know, hedge fund activists. you have a lot more headaches. the cash feels great coming in, but a lot more headaches. ashley: someone on the shoulder all the time. getting into your books. can't do anything, can't sneeze without someone having an opinion. if you don't have to, great, i think you have more control, obviously. raising the cash of course is the nice incentive as well. stuart: it is good for financial democracy. ashley: nice for the public to have a slice of the company exactly. stuart: if you want a piece of the action you can get a piece of the action. i think it's a great thing. i have to check individual stocks, in particular cheesecake factory, restaurant chain. same-store sales up 1.9%. i'm going to take that as

another indicator that the consumer is back and in pretty good shape. i think that is probably pretty good news for the economy. quincy krosby, prudential chief market strategist back with us again. am i right, is the consumer back? >> looks that way. wages are moving higher. the fed is a bit more dovish, rates are coming down. unemployment claims are actually coming down. this is all good news. wages moving higher. numbers from walmart, remember last friday, the market was oh, my goodness, retail sales down, consumer is dead. this is beginning to show that the consumer is alive and well and that the consumer spending money. that is 71% of our economy. america needs the consumer. stuart: does that mean the market will go up in line with the consumer feeling better about themselves and their situation? >> in terms of the sectors, consumer discretionary sector is one of the popular sectors right

now, doing better and the more data that we have suggesting that the economy is growing, that jobs are plentiful, we should see consumer discretionary names get a nice strong bid. stuart: we had a wonderful 2019. we pretty much gone straight up. we're not going to continue to go straight up, are we? >> no. it is a good thing we don't. whatever goes up comes down. and that, we have to remember that. we are what we call technically overbought. it just means that the market has moved up, up, tremendous momentum. typically what happens is the market needs to consolidate, to pause, to pull back and take a breather. that is healthy, allows new investors to come in who may have missed the quick upturn since the low of december. it is healthy. actually i think the market may be telling us right now, time for a little bit of a breather but the good news will be with the tariff issue. that could push the market up a bit more but if that -- yeah. stuart: if i'm a retired person.

suppose i'm retired, i've got to invest safely my retirement money, stocks are still reasonably good place to be? >> yes. stuart: you are supposed to fill in. interviewers have a hard time with one word answer. >> yes it is. i mean look, quality names. we're looking at companies that are strong, companies with good cash flow and companies that will pay those dividends, when the inevitable happens. that is where we want to be. stuart: yeah. >> that is a very good way of looking at the market. it is just being quality driven, going through the ups and downs. you will not be disappointed. stuart: now i have to cut it short. quincy, thank you very much indeed. see you soon. now this, there is a new caravan of migrants and it arrived at our southern border. house speaker nancy pelosi says she will block president trump's emergency border wall order. charles hurt with us,

"washington times" opinion editor, fox news contributor. all right, charles, how is the gop, how are they going to handle this with a new caravan arrival and the wall not stalled as the president pointed out to me this morning, the wall is being built, okay, but how is the gop going to deal with this? >> i think quite frankly at this point president trump has gotten all he will get out of congress. he has gotten all the help he will get out of congress for right now and he will proceed on this track. obviously democrats will do everything they can to sort of tie it up in the courts but i see the silver lining i see here is as the president points out he is doing something with the wall. there are sections of this wall that are being built but at this point, it is all about politics. he is running in 2020. he is running on this issue again. he feels strongly you know, 11 million illegal aliens in the country, which is a very

conservative estimate, that is an invasion. there is no way around it. he is running on that. he aims to win politically on this. stuart: i would really like to ask some democrats and candidates here, what are you going to do? you have got thousands, probably tens of thousands of people at the border, what are you going to do with them? i just don't think they have have an answer to the question. what do you do in the age of mass migration? >> i think you're exactly right. they do not have an answer. they made a political calculation as well and they have turned this entire thing into politics because remember, that fencing, that wall, that is being built right now, that we can see being built right now, that was overwhelmingly supported by people like beto o'rourke and kirsten gillibrand and these democrats who are running for president now, claiming that they want to actually start tearing down fence. they voted to build that fence in overwhelmingly numbers in both the house and the senate. they voted in 2017 and 2018 to

authorize that funding. now it is only become an issue because they want to go after president trump. they want, they want to, portray them as some sort of evil person who wants to, whatever and it's so ridiculous and people, even democratic voters who are loyal democratic voters they're not up for this. they are not up for wide open, no borders mass migration. it concerns them. and a lot of ways, i think even, every bit as much as it concerns rank-and-file republican voters and that's why i think, the silver lining i see in it. i think president trump win this is fight. stuart: charles hurt, thank you very much, sir. >> always. stuart: yes, sir. check the big board, we're hovering a loss of 100 points for the dow industrials. 25,800 is the level. as we tell you many times, nike, johnson & johnson, they're both dow stocks. they are hurting the

dow industrials. both j&j and nike are on the downside. better check the big techs where are they thursday morning? most of them are lower. one winner is microsoft at $107 a share. facebook at 160 and alphabet is at 1103. the price of oil, where are we? 56.92. it has gone up recently. not had that big of an impact on the stock market. we have a big hour coming up for you today. congresswoman alexandria ocasio-cortez blasting the billboard that blames her for amazon canceling its second headquarters in new york. we'll tell you what she is now saying about that. thanks for nothing. i say britain's parliament is in complete chaos. eight members of the labour party, three tories, quitting their party. complete realignment. nigel farage, he is mr. brexit, will be with me on the set. that should be fun. plus "fortnite," the game

has real competition. apex "apex legends" baking for the night's record for downloads. you're watching the second hour of "varney & company." ♪

stuart: we're down 100 points. 25,800 is the level. we had news this morning from

something called the philly fed. it's a look at the mid-atlantic states, manufacturing, state of the economy. ashley: right. stuart: it showed a four-point loss on the index when an increase had been expected. that is primarily what's taking the market down this morning or so we are told. dominoes pizza, didn't sell as much pizza as they thought they were going to sell. that stock is down 8%. really taking it on the chin. jack in the box, that stock is up. revenue beat estimates, more importantly it is considering putting itself up for sale. when you do that, tend to go up, 3% up for jack-in-the-box. a times square billboard criticizes congresswoman alexandria ocasio-cortez over amazon's decision to pull out of new york. the billboard says, "hey, aoc, thanks for nothing." she responded with a tweet. few things effective compare the like billionaire funded groups

paying tons of cashing on whack billboards. this is funded by the mercers. ps, fact, that it's in times square tells you this isn't for or by new yorkers. kind of long. congressman francis rooney. sir, you have to be absolutely delighted all of this. the socialists are driving business to you. you're happy as a clam. >> we'll take all those companies down here in florida where we're business-friendly, capitalistic, not socialistic,. stuart: are they coming to you? >> well i hope they will. they will be going somewhere. you look at the other amazon decision to go to northern virginia, which is a pretty business oriented state. i hope they will look at florida instead of at new york. stuart: congressman -- >> times square is in new york. stuart: vice president pence is heading to colombia, i think, boeing ga, colombia, he is dealing with the crisis in

venezuela. when do we get rid of maduro? >> i think he is on his last legs. i'm really encouraged by the rumors that are going on, he has been talking quietly with the united states government officials and looking at some countries that might want to take him. and i think that humanitarian aid that we positioned in the caribbean, in colombia and in brazil has got to make the people be fed up with maduro, that he won't let that in. the average venezuelan has lost 20 kilos in last two years. stuart: that is 40-pounds, isn't it? >> it's a huge tragedy. stuart: certainly is. let's get him out of there fast. congressman, thanks for joining us. appreciate it. >> thanks for having me on. stuart: you're welcome, sir. new report, high-taxed states, blue states, largely, more likely to have crumbling infrastructure and poor services. we have details on that. we have a my take on it too, coming up, top of the hour. ♪

might mean a trip back to the doctor's office just for a shot. but why go back there when you can stay home with neulasta onpro? strong chemo can put you at risk of serious infection. in a key study neulasta reduced the risk of infection from 17% to 1%, a 94% decrease. neulasta onpro is designed to deliver neulasta the day after chemo and is used by most patients today. neulasta is for certain cancer patients receiving strong chemotherapy. do not take neulasta if you're allergic to it

or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems, allergic reactions, kidney injuries and capillary leak syndrome have occurred. report abdominal or shoulder tip pain, trouble breathing or allergic reactions to your doctor right away. in patients with sickle cell disorders, serious, sometimes fatal crises can occur. the most common side effect is bone and muscle ache. if you'd rather be home, ask your doctor about neulasta onpro. pay no more than $5 per dose with copay card.

the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome.

stuart: where is netflix this morning? $355 a share. actor chris hemsworth, famous guy, he will portray wrestling legend hulk hogan in a new movie for netflix. this is about the race for content. netflix looks like they're staying on top of their game. i want to get back to the nike shoe failure. see it on the screen right now. joining us on the phone veteran she executive, sonny have car row. he was an executive at nike and adidas. he put michael jordan in his first pair of nikes. own the screen, viewers see zion

williamson, the sneaker collapsing and injuring him. what went wrong with the sneaker? any idea? >> none whatsoever. billions of dollars of intelligence made the shoe, stu, will go back to the drawing board. something that won't be forgotten. something that has happened, never in front of the whole world previously. this game was national game. this will send, you know, shockwaves from an athlete in business, that has negative been seen before, because this kid is so popular and duke is so popular. stuart: sonny, it is that big they may have to go back to the drawing board and redesign the entire shoe, really? >> i believe something -- they didn't put enough glue in it or tape. i don't have the answer, stu, but my point is, everyone hired, these people are professionals,

nike has best of everybody. they are reknowned for everything they do. this will not be unnoticed. they will have, a dress-down right now that can happen. what happened? they're going to find out. but it is not only what this poor kid went through, basketball went through, talking about college athletes. this is business deal. this is what you do. this is what i'm watching on the screen. the stock market up and down. billions of dollars in this particular business. he is the type of person that sells that sort of numbers. stuart: it is extraordinary that it should happen to this particular player in this particular game. i don't know much about basketball. i know this guy. he is 18 years old. he is a future superstar of basketball, zion williamson. everybody is pitting their hopes on this guy. it happens to him and happens to nike. what an extraordinary

coincidence of bad news? >> it can't be anymore, if you're going to that extreme. usually we say good news, right? moon, stars align. this is one time think want a cloud up there in the universe. they want a cloud. they didn't want it to be aligned. because it is going to reverberate. it has. it has. instant news today. you guys know that more than anyone. stuart: sonny, thanks for jumping on the phone for us so quickly. you're the guy to respond to this you did very well. we appreciate it. thank you,. >> i appreciate you guys. god bless. stuart: god bless. headlines from the chicago police news conference on the jussie smollett arrest. police say he staged the attack because, he was dissatisfied with his salary. they also say he paid $3500 to coordinate the attack. the news conference is ongoing. we'll bring you anymore headlines. dramatic stuff. now this, trade talks are

underway in washington. our next guest literally wrote the book on china. says we need to toughen our stance and there is no need in talking to them at all? he is on the show. facebook's mark zuckerberg meets the uk culture secretary in california. they called facebook a digital gangsta. sounds like europe will regulate facebook and other social networks before we do. they're on it. ♪ see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable.

i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. it's soft... the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, and the door ensures a watertight seal, so you never have to worry about leaks. kohler's walk-in bath was designed with convenient handrails for added stability and safety.

the wide, ergonomic seat is tilted back for comfort and stability. it has a channel so water won't pool on it. and it positions you perfectly by the controls. while the heated seat soothes your back, neck and shoulders, warming up your body before, during and after the bath. kohler is an expert in bathing, so you can count on a deep soaking experience. honey, are you seeing this? the kohler walk-in bath comes with powerful, fully adjustable hydrotherapy jets and our exclusive bubblemassage. oh yeah, that's the stuff. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... and ask about saving $1000 on a walk-in bath, or visit kohlerwalkinbath.com for more info.

would you mind passing my book there. once again, that's... and financing is available for qualified purchasers. - want to take your next vacation to new heights? tripadvisor now lets you book over 100,000 tours, attractions, and experiences in destinations around the world like new york, from bus tours to breathtaking adventures. tripadvisor makes it easy to find and book amazing things to do. and you can cancel most bookings up to 24 hours in advance for a full refund. so you can make your next trip monumental. read reviews, check hotel prices, book things to do, tripadvisor. stuart: hard days night. ♪ stuart: telling the audience, we sit around here waiting for the

beatles to play. we don't know what the song will be, as soon as you hear the opening chord, you know the story. liz: you knew it of the absolutely knew it. stuart: everybody knows this, ""hard days night"." we're down 110 points. big negative here. had negative news on the economy from the philly fed. that doesn't help, despite what i'm thinking positive news on china trade. market down 100 points. big tech all of them down. apple at 171. i will go through it. amazon, 1607. facebook, 159. microsoft up 40 cents at 107. back to china trade. yes, high level talks are going on right now in washington. gordon chang is with us. he has written extensively about china. well, gordan, you have a pretty dramatic announcement here. you say we shouldn't be talking at all. really? >> we've been talking to the chinese for at least three decades. their trade behavior

deteriorated across the board, especially last six years under xi xinping so i don't see what we'll get. while we talk these guys steal more intellectual property, to the tune of what, 3, $400 billion a year. talking to them is not going to solve this. stuart: wait a second. we're taking a hard-line. we've imposed tariffs on them. >> good start. stuart: keep messing around and it goes even higher come march the 1st. we've taken a hard-line. you surely wouldn't want to retreat completely, we're taking our ball, going home? >> we tried this approach before. taking a hard-line. it hasn't worked. the problem is, when we talk to the chinese, they think we want to engage them. you have all sorts of expectations on their side. they need to see a new attitude on the part of washington. obviously what we've been doing, stuart, has not in fact worked. stuart: we heard from washington this morning they have got six separate memorandums of understanding, if i got it right. two of them address thorny -- hold on a second. two of them address thorny

issues, intellectual property and the forced transfer of technology. they have a memorandum of understanding. they're talking about it. presumably, there will be some form of checking up on the road. what's wrong with that? >> we have been a agreement like that with zte, the chinese telecom equipment manufacturer. we have put americans into zte in china. what did they do? they violated their second settlement agreement with the united states. so you know, this isn't working, stuart. we need to have a dramatically different approach. those four other memoranda, they incorporate a deal which will not stand up on world trade organization rules. wto prohibits discriminatory agreements between two wto members. you can't have a private deal. which is what these guys are talking about. stuart: what would you do? not talk at all? >> i would keep on imposing costs as you say, up the cost. import bans, 100% tariffs until the chinese come back, look, we

are actually going to do something. we wait until they actually do it, until we take off the punishments. stuart: then you would have a political problem for president trump because our economy would suffer. theirs more, i got it, but ours would suffer. -- >> if you're losing 3 to $400 billion a year, stuart, maybe even more, we're already suffering. clearly what we've been doing hasn't work the the point is let's try something new. i'm not saying it will work 100% but i say we have a chance of it working. stuart: you don't see any positive in six memoranda of understanding? the talks ongoing, you don't see anything positive here at all? >> no. because we've done this before, stuart. and we've seen positive things. we had agreements. we had xi xinping stand in the rose garden next to president obama, september 2015 saying i am not going to cyberattack american companies for commercial purposes. guess what stuart? stuart: they did. >> they did, ramped it up last

year, from the crowdstrike report issued a couple days ago, this is a country, china, that is going in all the wrong directions. you know, it is very difficult for americans to understand where this is going but clearly we've had policies that have is benefited the chinese and have not benefited us on balance. stuart: before we leave this subject, i take it that you're not going to be going to beijing anytime soon, are you? >> i don't think so, stuart. stuart: i understand. >> no american should either. we see what happened to the canadians on huawei. stuart: i do want to talk to you about north korea. president trump, as you know, he meets with north korea's kim jong-un, second summit comes up next week. listen to what secretary of state mike pompeo said on mornings with maria today. roll tape. >> maria, i remember i was a young soldier patrolling the east german border in 1989. no one anticipated the wall would come down on the day that it came down. i'm hopeful that the world get as day like that here as well

where no one expects the north korea will take this action. i think the work that we've done, economic sanctions have been in place, the negotiations that president trump has let, i hope we all wake up, get a moment just like the one that the world had in 1989. stuart: gordon, before you respond to that, listen to this, we just got it from the white house, talking about the upcoming summit, quote, we're not sure if north korea has made the decision to denuclearization. isn't that the whole point of this? >> well it certainly is. you know, we're focusing of course on disarming north korea. that is really important of the other thing that is happening while north korea stalls is that south korea's president moon jae-in, who is deeply anti-american, is undermining his democracy. we need to do our best to support the concept of freedom. south korea anchors the defense of south asia. that is important. we're in south korea, we're

defending them. we're also defending ourselves. we have a lot at stake in this. i'm really happy the white house said that, that they don't, that they, not sure about north korea's intentions. it is career they have not made that decision to give up their weapons. stuart: hard-line, gordon chang. >> i'm sorry, stuart. stuart: don't have to apologize. you expressed your opinion. i have no problem with that. gordon, thank you very much, indeed. you will be back, by the way. just not in bejing. let's get to russia. vladmir putin warning he will target america if america deploys more missiles to europe. mike baker with us, former covert cia operations officer. all right, is this a serious threat? should we really be seriously concerned about this? >> well i mean anytime putin rattles his say per we do need to take notice but is it a serious threat to u.s. security? no, it's a bit more of the same from putin. he has done this before, back in the early 2000s when we

working with poland and czechoslovakia to put missile defense bases, ground-based bases in those two countries, putin, you know, lost his mind. it is the one thing that will as you send him over the edge, if he thinks we're working with nato to shore up missile defense systems on the continent. there was a back and forth. there was a lot of bombastic talk from putin at the time. he threatened to put missiles along the russian border with nato countries. we made a deal with poland, the polish government, went out on a limb to agree to this, and then the previous administration, president obama's administration, backed off of that pledge. in fact, i think we all remember that hot mic incident, i will have more flexibility in 2012 when he was talking to medvedev. that was in part about missile defense systems. he would have more flexibility

on missile defense systems to back away from this idea. stuart: we remember, mike, we really do. i don't want to go too much of a tangent, i'm sure you heard, mccabe, former fbi guy, suggesting that president trump might be a russian asset. would you like to comment on that? >> yeah. i think his book sales are doing great. and i'm sure we're all happy for him. i think his book hit number one. you don't get, nobody finds former government officials particularly fascinating. it is not like book publishers race to get them to tell their stories unless they promise they will have something that's, hasn't been talked about before. that is the way you sign a book deal. you have to guarranty the book publisher you will have bombshells you will throw out there. that is what he is doing. anybody who thinks otherwise -- if mccabe was genuinely

astounded and concerned about it, he would have talked about it a year ago. he wouldn't have sat on it while getting ready to launch his book tour. there are other people, adam schiff, other people are out there flapping their arms about russian collusion still but, going back to, you know, what we were talking about a second ago, with putin's statements, right, talking about this, the fact that you know, we backed out of the imf, the intermediate range missile treaty, now putin is upset about it, the same people flapping their arms about russian collusion, you can't upset putin. you can't get him, maybe we'll have a cold war. you have to believe him when he says they didn't break the treaty. of course they were breaking the treaty. we were accusing russia breaking of inf treaty, since 2014. every year the state department signed off, said russians are violating this treaty. the point of staying in it is what? there you go, stuart. sorry for disappearing down a rabbit hole.

stuart: i'm very glad i went off on that tangent. it was a fine response. mike baker, good man. thank you very much. google responding after a number of companies pulled ads from youtube. tell me what this is about? liz: over again alleged pedophilia content including comments on youtube. stuart: big companies didn't want their ads next to that video on youtube? >> that is correct. disney, nestle, mcdonald's. any content including comments that endangers minors is abhorrent. we have clear policies prohibiting this on youtube. we took immediate action, deleting accounts and channels. reporting illegal activities to authorities, disabling comments on tens of millions of videos that includes minors, more work to be done of the we continue to work to improve and catch abuse more quickly. stuart: that is the response. thank you very much, indeed, liz. nasa, israel and spacex. they're teaming up for a rocket launch and it is going to the

moon! it will be the first privately-funded mission to the moon. we have got the story for you. i say british politics in complete chaos. eight members of the labour party, three tories, get their parties, complete realignment. nigel farage, mr. brexit, will join me on set shortly. ♪

♪ ashley: former reagan economist art laffer says president trump is right that america will never become socialist and he says socialists actually make some of the biggest capitalists in private. roll tape. >> quoting trump, america will never be a socialist nation and neither will friends within a few weeks. they will come out of this roaring, doing well, by getting rid of maduro. they have first-hand experience what it does do. so do the cubans. you know, there are a bunch of people, you never see a better capitalist than one that lived under true socialism. they make the best capitalists on earth. nothing more greedy or capitalist than a socialist out for himself.

♪

stuart: check with retailers. a number of chain stores, payless, and charlotte russe liquidating. that is putting thousands of workers out of their job. and then there is american eagle. very interesting, right, ash? ashley: this is a fascinating

story. you carry on. stuart: clothing store obviously. they're launching a rental service. rent clothes. 50 bucks a month. you can rent three items, send them back if you don't like them. rent them for a month. liz: you're fascinated by this. ashley: i rented this suit. no i didn't. stuart: let's get serious, shall we? let's get to the uk. there is a complete realignment of politics, eight labour party members quit the party, three conservative women quit the tory party. this is about brexit. it amounts to realignment of british politics. look who is here, the man who started it all, the man whose fault it is, he is proud of it no less. >> i am. stuart: can i introduce him properly? >> sorry. stuart: his name is nigel farage, vice-chair of leave means leave, right? >> i certainly am. stuart: this is chaos, nigel.

this is absolutely chaos. >> both the conservative party and labour parties have always been split on european issue. it is not about left-right. it is about do you believe about self-government or part of a big european project. add to that with the labour party under corbyn, the hard left, marxists taken over the labour party. it has become aggressive in tone, pretty anti-semitic much of what it says. those labour mps that want to stop brexit completely, also had it what is going on within the labour party. equally we in the tory party, don't except brexit, do whatever they can to stop it happening. you're right. there is it beginning of realignment happening. the real key is if theresa may does not get her brexit deal delivered we will finish up with the can being kicked down the road, article 50 being suspended for a year, maybe two years. you will see another fracture. that fracture will happen on the

center-right. could conceivably in a few weeks blind british politics in very different place. stuart: it is chaotic. i can't figure out exactly where britain is going with this. i don't know whether you're going to get out of the european union, whether you stay in under different terms, i can't work it out. give me a guess. what to you think will happen here. >> ultimately we'll leave. genie shut off the bottle. public opinion made mind up. it is not changing. look at europe, huge problems in the eurozone, massive political changes in italy and elsewhere. ultimately the question is are we leaving -- stuart: are you leaving, i'm an american citizen, are you leaving march the 29th? >> if you want my honest opinion, against my book? stuart: yes. >> no. stuart: not leaving. >> i don't think we are. i don't think we are. i think the deal she has done is so awful, i can't see the european union giving an inch of ground what has been negotiated already. i believe the can will get kicked down the road, that is when you see quite a serious

split emerge among british conservatives. stuart: it is fascinating. i do have one more for you. facebook's mark zuckerberg is meeting very soon within the hour or so, with britain's culture secretary. the culture secretary of facebook and other social networks were digital gangsters. >> yes. stuart: looks to me like you guys over there will be regulating an american company before americans regulate american companies? >> we have the european union been doing this in many ways, putting huge fines on u.s. tech companies. at heart of this is real problem. i confronted zuckerberg eight months ago in the european parliament, it is pretty clear to me you're putting out biased content and yet, you pretend not to be an editorial company and i think we're headed toward as moment when facebook and others become like a newspaper. become like fox news. become responsible for the content being put out. if you think about it, they're

behaving, in editorial way and they need to be held to account. stuart: is that what, the thought of regulation is -- the thrust of regulation is in britain, hold them account for for what they're doing and the mistakes they make? >> yes. you cannot say on one hand you're a platform for all ideas, which zuckerberg says, on the other be partial who is allowed access to the site. therefore if you do that you are an editor. big change coming. stuart: welcome to new york, nigel. >> thank you very much. stuart: good to see you with is. we do appreciate it, nigel. thank you very much, sir. we talk a lot about "fortnite," big video game on this program, wildly popular. yes it is. you play for free on-line. there is a real competitor. it is called "apex legends," it is breaking "fortnite"'s records. what a story. this is a big deal. we're on it of course. ♪ t week.

edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours. state of the art technologyt makes it brilliant. the visionary lexus nx. lease the 2019 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer.

and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit.

my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome. who we are as people and making everybody feel welcome. ordering custom ink t-shirts has been a really smart decision for our business. - [narrator] custom ink has hundreds of products and free shipping. upload your logo or start your design today at customink.com.

stuart: remember this name. apex legends. it is a free game from electronic if you pay online and it's breaking records for downloads. 25 million in the first week.

kumar world news entertainment hosts. what is so great about apex legends? >> so, apex legends have had an important showing in the month it's released. a lot of people like it because when it comes down to a hard core first-person shooter, begun players a little more crisp and people think it's a very refined experience compared to previous battle ready all games. an excellent system in the game for communicating among other players than about having the need to use voice chat. and also the team aspect seems to be a lot of fun. >> personally speaking them a little bit more of a fortnite fan but i can see that apex legend the way the game is set up to explore a very exciting title ii watch. stuart: let me sum it up this way. is apex legends the game, the

number one game. >> beating everybody i would say no. a lot of the statistics posted. currently gets about 242,000 viewers on twitch compared to 131,000 viewers on fortnite. it's important to keep in mind that fortnite has a larger player base. a .3 millions sure into i'm trying to get used to these huge numbers. i've got a jampacked newsday. come back and see us sometime because it's a fascinating subject. the hits keep on coming for those high-tech blue states.

stuart: posters that gallup basketball of the country committee you want to move to another state? high-tech states show the largest number of your 3-d responses. gallup also asked, why did one of the up and the rather academic language, there is a strong relationship to train the total state tax burden and the desire to leave. translation, it is taxes driving this. these high tax democrat but states have other problems, too. the quality of life in the state than the quality of the infrastructure they provide. surveys by jd power show the lowest quality infrastructure

with taxes are highest. holcombe high taxes don't produce the best services. it's not what we pay through the nose for? there's an answer for that or the relationship of left-leaning city politicians in municipal unions. satisfying local labor bosses is the best indicator like it and you satisfy the unions of very generous pay and goldplated pensions. that's why it costs $1973 to change the light bulbs on each new york city housing authority apartment. that is why the workers digging a new subway line in new york city make $111 an hour versus 40 bucks an hour in germany. it's called writing votes with taxpayer money. i think the jig is up. there's a limit to how long you can keep raising taxes while providing substandard services. there's a limit to government pay in people's willingness to keep on paid.

either way, and you hit it on the way. those high-stakes taxpayers are no longer fully deductible. countless people in new jersey, new york, illinois, connecticut and elsewhere are about to be hit with another tax bill just because of where they live. many of them will leave. the tax exodus has already begun and it's going to get worse. my thanks to stephen malan got at the manhattan institute for much of the research of this editorial. the third hour of "varney & company" is about to begin. stuart: this is betsy mccoy jumping into the show before she's officially announce. the dow industrials are down 111 points as we speak. a negative reading by the philly

fed. stuart: kind of regional manufacturing showing a downside move inside of an upside move. existing home sales were not good. that's for sure. downright dow down 100 points. now, oil inventories. we've just got the numbers coming in. straightaway of the bill up three points at 7 million-barrel slightly higher than they appear kind of play than with the global economy slowing down. very weak data in japan and europe. to mention what you said in the united states, the bill and inventories rose that they haven't affected price much today. >> fifty-seven dollars error. after that editorial on the high tax state. those states are simply in my opinion fail in the residence. betsy mccoy is with us, former lieutenant governor which is new

york state itself. you heard my little rant there. >> it obvious what the problem is. how did these blue state tax and spend the holocaust is an intellect did? by pandering for the publication by the state level in municipal level. you gave one example, the $111 who go in and dig tunnels for the subways. the subways are now costing new york city to point it billion with a b., two playmate leann dollars a mile. four to 10 times more than other cities in the united states are paying to build underground subway tunnels. the construction is large and an crumbly and a place like new york. the cost of repair or building is just too high. when i was lieutenant governor, too much spent per mile because of the labor roles requires people to stand around watching one person is the shovel.

stuart: i say to the end of the editorial, the jig is up. i don't see how long you can just keep on doing this. >> i wish it were a tiered i see that these high tax states are losing congressional representation. stuart: they're losing people appear to >> course because they're losing people. they're also ultimately losing the race for employment. this is the irony. take a state like new york which is very much in the news because of the amazon pull out. these states keep taxes exorbitantly high and then they offer a sweetheart deals to a few plum employers. they're not creating jobs. they're buying them in overpaying for them. stuart: i disagree with that. $3 billion in tax breaks over a period of years gets you back 27 billion extra in tax revenue.

>> a look at the data and i can tell you new york spends the most of any state in the nation on tax credits. the sweetheart deals house below the national average job growth. in other words, the winning strategy to bring jobs into your state is to lower overall taxes and have business from the policies. not to treat a few employers differently. think how unfair it is to the smaller businesses that have to operate without the sweetheart deals. stuart: but it's not going to change. in same the jig is up and did not to change. i think we agree it's not going to change. >> if they were, they would say they leave. these voters that are leaving europe are taking their democratic voting habits with them to places like florida and changing the right-leaning

states. thank you very much indeed. appreciate you being with us. we told you yesterday the duke freshman basketball player is nike shoe really -- i don't know how to describe it. during last night's matchup against the big rival, unc. let's break in market watchers scott martin, asset management guy. i don't think this is going to affect nike stock long-term. would you say? >> i agree with you. rumors are one thing. that performance is another. we see a little bit of reaction to the downside, but not extreme. we are nike for the reasons that are not akin to what happened yesterday. certain because of recent earnings reports. pricing power, good emerging markets growth in china. thus the reason you are nike. if you're looking to get a piece of nike, where you have this badness have this bad in a

hitting the stock is your chance. stuart: do you think some people will think twice about buying these nike shoes that mr. williamson was wearing last night? 168, couple bucks a pair? >> i have warned not those but other basketball shoes in my old days. those are very good shoes spear to your point, nike has a lot of pricing power and they have the best shoes on the market. the thing i'm worried about is does this cut off a potential deal that they were going to do with mr. williamson because he's upset with how the shoe performed last night. do future athletes take a step back and maybe sinus other brands because they're worried about the performance of the shoe. stuart: a good concern to have. i want to ask you about the stock which i know you like, your heart on starbucks. i don't know why this stuff is just hit record high. what's the big deal?

>> because i'm still happy with it. i'm hot on it because i like their iced coffee as well and the fact -- the cold brew is amazing. they are doing delivery and every starbucks i go into around chicago, new york, to his crowded. they have a lot of stores and they get a little smarter about real estate and may be closing some of those stores, and getting the rich to have maybe they don't need so many stores. starbucks has a strong footprint. there's been emerging markets growth, too. the reason were still owning the stock. stuart: i just can't believe delivery of coffee as that big a deal. >> i hate to say it, but i've got to tell you in the last 35 to 60 days, i've thought many times about how is that the kids running around, my wife trying to get the kids out of the house and unlike idle on a carrot today. one of starbucks cold brew. if they could charge me some

service the ibm. stuart: a wealthy man. >> spending the money i don't know. scott martin, thank you for being with us. we appreciate it. speaker pelosi says the house will quickly pass and shall block in president trump's emergency order to build a wall. that just does another migrant caravan arrives at her border. this one right across from el paso. coming up to comment on that. and then there's nasa and space 16 minutes to send in israelis they scratch it and then later on today. the head of nasa will join us to. i'm also going to ask about china. the spacecraft to the far side of the moon. i want to know what they are up to around the other side of the moon. we'll be right back.

stuart: president trump is tweeting about jussie smollett -- good question, mr. president. we've been asking that ourselves. a private start a to launch a new lunar lander. it supposed to launch later on

today to reach them in. so you tell us, what is nasa got to do with this. >> israel will be the fourth country on the surface of the moon after the united states, russia, china and now israel. what is unique here is over 90% of this mission is privately funded. this is the first commercial lunar lander. private funds flowing in from across the world from the small nonprofit in israel and for $95 million which is very inexpensive. here is where nasa benefits. we actually put science

experiment onboard the spacecraft. we can use our deep space network to communicate.com and get all kinds of data and information, good science that nasa needs to do, but will be able to do it for a fraction of the costs we would normally pay to do such a mission. stuart: is this will proceed in the future, bringing fiber money, other nations perhaps involved. this is how we explores this in the future. this is? that's exactly right. we are building a coalition of nations to return to the moon sustainably. in other words, we are going to stay and israel could be a big piece of that sustainable return to demand. stuart: i'm sorry to interrupt you. this time when we go, we're going to stay. as the lunar module, the machines day or at some point every going to have americans on the moon and stayed on the moon. >> all of the above. we are going to go with him go

with humans in landers and rovers and robot. the goal here is to not bring flags and footprints and then not go back for another 50 years. we want to go sustainably. what we see from commercial industry and this is a big value is the idea that we can launch rockets and how those rockets come home and drive down costs and increase access. what we're looking forward to is the day when it's not just launch its reusable, but every piece of the architecture between the earth and the moon being reusable so we can go back and forth over and over again, the commercial industry is a big piece of the. they are the ones that make the innovations that spacex has made that enable us to do this activity at a fraction of the cost. stuart: about to ask you about china. they've made it to the dark side of the moon. what are they up to on the dark side of the moon? >> i want to be clear because a

lot of people don't know. darkside is kind of a misnomer. it's the far side of the moon or to start in the sense that it is protected from electromagnetic interference from earth. in that sense it is dark, but there is life there. they are looking at soil samples and trying to determine the composition of the men, and doing biological experiments. they've got c's growing on the far side of the moon and they've got fruit fly eggs they are looking to see how they hatch and grow in those kinds of things. but it's a scientific experiment. the important capability here is they've demonstrated an ability to land on the moon. landing on the far side command in your site is not that big of a difference. it requires a communications relay. it is important to note is a lot of interest internationally, a lot of interest on the moon and the question is why. there's resources on the moon.

water i.c.e. and hundreds of billions of tons. that represents life support. air to breathe, water to drink. it's also rocket fuel. h2o and cracked into hydrogen and oxygen and put into cryogenic form is the same rocket fuel that powered the space shuttle. abundance on the moon, hundreds of billions of tons. that's a natural resource that could be used for all kinds of reasons. stuart: i'm sorry to jump in because the amount of time. that was fascinating. can you come on back in sometime and tell us more because i'm confused about this. thank you, sir. we'll see you again soon. the feds out of the new study that shows the highest paying jobs for women. number one, pharmacist. average salary of 90,000 but. lawyer next 91,000. chief executive computer information systems manager and doc are, they all round out the top five jobs for women.

which city has the worst drivers wherever i yam. i promise to tell you where the worst drivers are after this. ♪ the new capital one savor card. earn 4% cash back on dining and 4% on entertainment. now when you go out, you cash in. what's in your wallet?

- want to take your next vacation to new heights? tripadvisor now lets you book over 100,000 tours, attractions, and experiences in destinations around the world like new york, from bus tours to breathtaking adventures. tripadvisor makes it easy to find and book amazing things to do. and you can cancel most bookings up to 24 hours in advance for a full refund. so you can make your next trip monumental. read reviews, check hotel prices, book things to do, tripadvisor.

comcast business built the nation's largest gig-speed network.

then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.

stuart: we asked which city has the worst service in america. we have the answer according to allstate insurance company. it is baltimore. allstate bases its results on how often drivers file a damage claim. roughly once every four years. number two boston three, washington d.c. for massachusetts. glendale california. where do you think the best drivers in america are? brownsville, texas. now this. the world's largest is underway in florida. of course jeff flock is there. show me what you got. >> him a whole lot more comfortable a thousand miles away for new comments to her. something you've never seen before. the world's biggest heavy equipment option. what am i surrounded by it?

>> over 800 of them being sold tomorrow. reporter: vice president of ritchie brothers. i'm telling you come it never seen it. it's because of the booming economy. how many pieces of equipment? >> or 10,500 pieces of equipment. stuart: can make it over to see the screens? how many excavators? >> over 800 excavators. beautiful, beautiful pieces of equipment. stuart: these are the cranes. this is the most expensive stuff. you sold them for how much? >> over $400,000. stuart: how much would that go for new? >> well over a million dollars. stuart: it's incredible. this goes on for miles and miles. cranes on the side, you know, look at that stuff over there. you need an piece of equipment for the farm, let me know i'll put a bid in for you.

>> i like that of 400,000 bucks. we'll be back to you later in the day. chicago police saying jussie smollett stage that attack on himself because he was dissatisfied with his salary. what will the less they now? remember, they try to relate that to president trump. what a story. china trade talk reportedly making progress. we have a guest is calling for more tariffs on china. he says the chinese are stealing our intellectual property. enough is enough. will be back. ♪ ♪ you got a side that wants more space, ♪ ♪ 'cause every day starts like a race. ♪

♪ you got a side that loves that style, ♪ ♪ but to fit in those shoes gonna take awhile. ♪ ♪ today life's got you runnin'. ♪ ♪ tomorrow big things are comin'. ♪ ♪ that's why nationwide is on your side. ♪ ♪

stuart: head of the little further south. now down 122 points. that is a loss of about half a percentage point. look at the s&p 500. do we have a comparable loss there. the answer is yes we do. down almost half a percent on the s&p. show me the nasdaq if you can. that is also down to the tune of exactly half a percentage point. samos is all across the board. high-level trade talks are underway right now in washington.

there appears to be progress. yesterday on the show we have a guest who says china is already stealing her death, breaking into her banks, putting our companies out of business. peter morici is with us. he says enough is enough. you want a confrontation. you want more tariffs. would not be a disaster? certainly politically for america, wouldn't it? >> a bigger disaster for the president to cut a bad deal. he won't even acknowledge america's complaints. he won't even acknowledge the commercial espionage taking place. he wanted knowledge that back -- stuart: peter, hold on. forgive me for interbred in you. but we've got news this morning that they have six-member random of understanding and that's written about what they're talking about in two of those memorandum were intellectual

property and the force turnover of technology. they are addressing it and it is writ down. they've acknowledged it. >> we have to see what those memoranda look like and what they mean in terms of enforcement. china has repeatedly made agreements like those. according to ambassador lighthizer, there's been 20 agreements with two theft and they've all been broken. i'm not assuage the commitments they've been making. it sounds like they'll come back with a vague agreement or the president will move the terrace and continue to go on as we have. stuart: if you didn't do that, if you came back with more tariffs and piled on the pressure, our economy would suffer. the chinese economy would suffer in the president would have a hard time in 2020 with his reelection. you have to face reality, don't you? >> we had to take a third approach and that is basically a balanced trade with china.

the import licenses based on our exports. if you export a dollar and you can install.then we should move towards a system like that. with regard to technology transfer, we have to start to look very seriously at the regime we have a china and russia during the cold war. i don't know that it serves america's interest or supply chain to be so deeply integrated with a bunch of thieves. these relationships we have with china are not set in stone. they can be unwound, but it will be painful to do it. yes, i am advocating some pain. but the president was good to do this. i'm concerned that secretary mnuchin, not ambassador lighthizer are getting their way in which you have there is a lot of wallpaper. stuart: he will back off until you've seen whatever deal comes out. >> i can't evaluate a deal i haven't been. so far in terms of the tangible proposals that have come

forward, for example willing to buy more chips, that they want them assembled and tested in china. come on. everything they do is that way. >> you're talking politics, diplomacy, the economy. if i talk markets, i think the market reaction would be very strong. >> and not the temptation. i mean, secretary mnuchin doesn't believe the trade deficit is a problem. he's a good time to bar all this money from china. and they're using it to build out the road. they are using it to build a blue water navy, to basically abuse their neighbors in the south china sea. they need dollars to do that and they do that with this trade regime. i'm very skype to go the jared kushner or secretary mnuchin could give the president anything but bad advice.

they are dealmakers. light hides there is a hardheaded practitioner and they are undercutting him. the president saying i might back off and extend the deadline. that is no way to negotiate. i tell you he was elected to do something about this and if he backs off just to boost the market it is chamberlain in munich 1938. stuart: a little strong they are. >> think about what were dealing with. a fascist regime. stuart: i remember munich. i'm just joking. >> you don't remember munich and neither do i. >> if there is the deal and we know it's in the deal, you combat critique of forests. morici, you're all right despite it all. chicago police say that jussie smollett stage the attack on himself because he was unhappy with the salary. the cops say jussie smollett paid 3500 bucks to do this.

allie stuckey is with us, host of the pot cast relatable. what should the media people and the politicians, what should they do now? those people got it totally wrong way back when in january when they tried to make president trump to racial violence. what should those media people and politicians do now? >> they should apologize. instead of project in their own mistakes and everyone else, you know, we all need to slow down and look at the facts before we make judgment. the elected media members and members of the left in congress and like you said modern-day lynching on the right in the hate by president trump. they should apologize and take stock of their alliance. it does demand a little bit of soul-searching to say why was i so quick to jump to conclusions based on my preconceived biases of who these so-called

perpetrators were, these red hat wearing white men whose long slurs at this man. so i do think it's a little bit of a hard check this politician, but for some reason i'm not holding my breath. stuart: precisely. why should you? they really wanted to smear president trump with races violence. and for a while they succeeded or they think are absolutely right. they should apologize and come clean but they won't. i want to talk to you about bernie sanders. he's declared for the presidency appeared in the first tony for seeking $6 million from very small contributions. does this mean millennial thirst still feeling the burn? >> well, i think so. more voted for bernie sanders ben trump and clinton combined. while i thought at first is kind of a hat then. he might've been the original democratic socialist that brought the party to the left there but now you've got more

interception all candidates come and basically holding same positions at 10. you've got women, people of color. but look, in 24 hours, $6 million is more than any other presidential candidate out there. it looks like it's popularity. still surging and i think millennial's are probably feeling the burn. stuart: you use an expression which is kind of new. i'm not sure i understand it. can you explain not one to us? >> if you don't understand it is because you're logically thinking person and you shouldn't feel too badly about yourself. the idea that more minority or have they said their sexuality, religion, color of your skin and your gender, the more privileged you are, the more credible of likely you are to be voted for. if you're a woman and a woman of color you've got to point. that is kamala harris. if you are also --

stuart: i know you've missed something out. a straight white male who happens to be an episcopalian. that's about as bad as it gets. >> that's worse. exactly. thank you for being with us. the explanation was very good. florida lawmakers considering a ban on factory cities. good. the bill would require local law enforcement agencies to cooperate with federal agencies if they arrest someone with an immigration hold good governor ron desantis said he will sign the bill if it passes. a new migrant caravan on the doorstep of our country. just across the border from el paso. they said speaker pelosi vows block president trump's emergency order on the wall. up next. i'm going to ask also about next week summit between the president and kim jong un. brent will be there to cover it

all. ♪

train for the white house has concerns about allies working with the chinese company uawei.

>> we've been out around the world just making sure everybody has the information, that countries understand the risk of putting this huawei technology into their i.t. systems. we can't forget these systems were designed with express work alongside the chinese pla. their military in china. they are creating a real risk for these countries and assistance of security and their people. they care deeply about their privacy is very, very real.

stuart: i think we need an update on this new migrant caravan that srd arrived on our southern border, just opposite el paso. chris jenkins is on the ground and warrants, mexico. that is across from el paso. the latest, please. >> stuart, hi. there's a new caravan in the southern part of mexico. the illegally crashes yesterday. but here, not one, but two shelters are at full capacity. you can see the familiar security they've got for it. some of this group from cuba are outside and there not been led him right now because they are too full. there's actually a delegation of house democrats and the homeland security committee led by

chairman bennie thompson down and el paso today. they ought to be over here seen this situation because they have an overbearing number of migrants. the migrants, by the way are pretty well aware of some 60 work. they would like it to be torn down. this is one of the migrants in the shelter across town. his name is randy david finn. i asked him what he thought about taking down the el paso wall. here is what he had to say. >> the democrat candidate say take the wall down. there should not be a while. how do you feel about that? [inaudible] very comfortable. take it down. >> stuart, pressures like this are causing a 470% increase in the el paso sector of the legal

apprehensions. to date there have been 43,000 or so this fiscal year compared to 7000 last year. stuart: a good update. thank you indeed. now let's bring in bret baier, hosts a special report on the fox news channel. on the other hand, caravans arrived. the numbers are building up rapidly. on the other hand, speaker pelosi would not go forward with funding the wall and a sub 60 work wants to take the wall down. any idea how this plays out? >> i think it plays out in the election in 2020 and becomes one of the pillars of president trump's reelection bid. those being immigration, fighting socialism, the economy and probably late-term abortion if i had to guess on the social issue. those four pillars make a president trump's reelection bid. the immigration piece is a big part of it as he continues to move forward with this national emergency in congress continues to push back and prevent that

from happening. >> i just don't know what we're going to do. tens of thousands of people camped out in pretty poor conditions just south of our border and our detention centers are full to overflowing. the crisis comes way before the 2020 election and may provoke a political reaction before the election. >> i agree with you. they will be paying to be felt, but it is mexico right now that is feeling the brunt of it as the caravans make their way across central america, across mexico to the border. and perhaps there is some negotiation on going between the u.s. and mexico along those fronts. we've heard some inklings have not already. as far as policy, it seems like we are at a stalemate with democrats in control of the house and republicans in control of the senate in the white house. it does not seem like it's moving anywhere fast. stuart: i'm going to call it a gross mass. that's what it is.

you'll be heading to vietnam next week for the summit. i'm sure you're going to enjoy yourself, but the backdrop to the summit is i don't see any denuclearization at all. >> definitely not get. the director of national intelligence for the president has an issue has been pretty blunt. they don't think it's in our forecast of what kim jong un does at this country that is going to give up his nuclear weapons. that said, white house officials believe the negotiation and the relationship between the president is solid and they look at communications. they look out letters, contact that they've had and they point to the fact that there hasn't been missiles being fired and they are thinking there might be some solid progress in this next summit. we will see. they will have to see it at some point otherwise to go back to

sanctions. stuart: i'm a little older than you. a lot older actually. i can't imagine never thinking that i would see the day when an american president said, to tater of north korea in hanoi. did you ever expect this? did you ever expect to go and be part of it. >> i've been there several times with various officials then it is a surreal place first of all. there are still statutes of line in an right next to them, a cell phone store. it is a little surreal to begin with. for a summit to happen between an american president and the leader of north korea will be quite something. the city will give you a sense. stuart: i'm just envious. that place, that occasion and not dictator, just fantastic.

good luck to you. we'll see you again tonight. let's deal with johnson & johnson. more bad headline for that. the feds are investigating whether their talk on powder is safe to use. now they want to see documents from the country. the judge coming up on that next. ♪

stuart: johnson & johnson is a dow stock. it isdown. that is hurting the dow industrials. j&j is being subpoenaed by the justice department and the sec they want documents about the talcum powder relationship with cancer. judge napolitano is here. judge, look, there is no scientific causal relationship that has been established between talcum powder and cancer. all they have got is a statistical relationship. i think johnson & johnson is being raped. tell me. >> i share your view but in some states, particularly new jersey where j&j is headquartered and missouri where they lost infamous fight with 22 plaintiffs, they collectively

one 4.7 billion, upheld by the appellate court, these types of statistics enough to get to the jury without a hardcore scientific basis. this is what triggered j&j's problem, it has gotten to the justice department. start with the sec we know what the sec wants. how long ago did you know about asbestos, why didn't you tell the investors? that is what the sec is looking for. doj is more problematic. they prosecute crimes. donald trump doj is saying to j&j did you intentionally put asbestos into the stream of commerce irrespective of the harm it would cause. stuart: i know you're a legal guy. but i'm appalled this could happen to an american company when no direct causal relationship has been established between talcum powder and cancer. this company could be ruined. >> a dark and dirty side of the judicial community, appellate judges, have made it very easy for plaintiffs to prove their

cases in ways that would be unthinkable 20 or 30 years ago. but showing probability and statistics instead of scientific likelihood. stuart: i have to wrap this up but we are a financial program, and you are saying that johnson & johnson faces severe financial threat? >> yes. without question, stuart. stuart: shocking. shocking. >> at least they will face are huge legal bills trying to comply with these subpoenas. stuart: look, thank you very much for pointing this out. i'm not trying to cut you off. i'm just appalled, absolutely appalled. thank you, napolitano. >> you're welcome. sire. stuart: more after this. ♪

stuart: early this morning i was chatting with the rnc ronna romney mcdaniel about construction of the border wall. watch this. the wall looks like it is stalled at the moment. this caravan has arrived. there are thousands of people camped out on the other side of the border. what happens next? >> the wall is being built. congress granted $1.37 billion to build the wall. trust me is working on it. stuart: i'm very sorry the wall is stalled. moments later the president tweeted this, the wall is under

construction right now. block capitals. thank you, mr. president. i'm glad you watch the show. i was wrong. i'm glad you straightened me out mr. president, thank you very much indeed. i'm done. neil it is yours. neil: how do we know that is true. stuart: what? neil: he has been saying for weeks the wall is built. like me saying i will have salads. stuart: plate of cannoli is visible on camera. neil: i'm saying all right. i don't know. it's weird. but that is life, all right? thank you very, very much, stuart. following back and forth on trade. i want to thank my colleagues and friends connell mcshane, david asman, filling in while i was out here. kind of like the same old drill before i had left, that is the ongoing back and forth with the china trade deal that looks a lot more promising than an eu trade deal all of sudden does not. no one expected a problem with theop