just beginning. trade thing is going to be big. >> occidental petroleum, the new queen, i guess. big corporate battle here. maria: i love that. >> queen of business news. queen of news. maria bartiromo, every day. maria: dagen, james, liz, good to see you. here's stuart varney. stu? stuart: don't forget queen elizabeth peek right there. got that? maria: all the kings and queens right here. stuart: don't forget archie, either. good morning, maria. good morning, everyone. it's been a tough week for stocks. it's not over. we're looking at another down day today, at least at the opening bell. there's the numbers for you. as things stand now, the dow is opening 200 points lower. the s&p's going to be down over 1%. look at that nasdaq, down nearly 100 points. big down day at least at the open. again, china trade's the problem. 15 hours from now, 25% tariffs are scheduled for $200 billion worth of chinese goods coming

here. it's become a hot trade war. china has threatened to retaliate. this morning in washington, china's top trade guy sits down for more talks. he'll have dinner with our top trade guy tonight, just hours before the tariffs hit. that's brinkmanship. oh, to be a fly on the wall. last night, president trump told a cheering crowd that china broke the deal, and the "wall street journal" says china has misread presidential tweets. watch that market. it will be headline-driven. and there's this. north korea fires two missiles into the pacific, within ten minutes america fires an intercontinental ballistic missile into the pacific. maybe this is tied into the trade story. north korea is china's client state. and this. world series champs the red sox head to the white house today but there is a racial divide. black players will not show up.

white players will. what will barstool guy say about that? he is on today's show. "varney & company" is about to begin. you see the tariffs we're doing? because they broke the deal. they broke the deal. they broke the deal. they can't do that. so they'll be paying. we don't make the deal, nothing wrong with taking in over $100 billion a year. stuart: president trump there saying china broke the deal. he said it several times last night. come in, market watcher gary kaltbaum. gary, you know it, the market's heading straight down again, first thing this morning. there's no doubt about it, is there, that this is the china trade deal writ large on wall street? >> well, it started sunday night with tweets. the market was acting fine, and then this. look, there are only losers in

this, and one of the big reasons is that nobody's been prepared for it, neither the markets or business world. usually you have weeks and weeks to prepare if tariffs are going to show up. now it's just five days since sunday, and i think that's weighing on it. but just remember, there's some good news in this story. we've had gains this year equivalent to about two to three years of yearly gains in the market so we were due to correct anyhow. this is just the big catalyst. but if these tariffs go into effect for me, all bets are off because again, i think everybody loses all the way around. stuart: i'm going to come back to you in just a second, gary. let me break away for a second and tell you about the story in the "wall street journal." it has the story that china misread president trump's tweets and some of his statements. they didn't understand the strength of our economy. they didn't understand the strength of president trump's position. and that's why they reneged on key parts of the deal. that's from the "journal."

craig baliere is with us. he frequently joins us on the intersection of politics and money. what do you make of that story that china misread the president? >> i think they did. it's not difficult to misread him sometimes. but i do think they did. let me just give you a positive spin on this whole thing, stuart. number one, maybe this takes .2 or .3 off gdp. we are growing by about 3% so it's not like this is going to ruin our economy. second part, i think by acting pretty tough right now, we have increased the chances of getting really substantive structural changes out of china, which is the goal. stuart: hold on a second. we are being told that these tariffs go into effect and it only takes our gdp down may maybe .3. that's a chunk but it's not that big. >> right. stuart: you go with that? that that's all the effect here? >> yeah. in an economy this huge, it's not going to send us into a

slowdown. i think the economy is accelerating. one of the really quick points i would make is this illustrates how both parties are united on this. chuck schumer, as you have been pointing out, chuck schumer is saying we've got to hang tough so trump is not just isolated on this story. he has bipartisanship. stuart: let's just carry this a bit further, greg, just for a second here. tomorrow, late tonight, they are going to impose maybe 25% on $200 billion worth, but then the president says if there's no reaction to that, well, we will go after all chinese products coming here, 25%. wouldn't that have a significant impact on the supply chain of american companies and on the profitability of american companies? >> sure. we would go up from maybe .3 to .4, .5, .6% and then it gets more serious because obviously, beijing will retaliate. that's not going to be a good story, for example, in the u.s. farm belt.

i think the agricultural sector has to be concerned about that. stuart: i'm sure they are. greg, thanks for joining us. you speak in sound bites. very attractive in a tv guy. good stuff. thank you, sir. we are going to open sharply lower on wall street this morning. that's a big story. now look at the stock price of disney. it's up again, $135 a share. it's up one cent but it is up. i will give you that. $134.95. the whole point about their profit report was their streaming operation. they are going to have exclusively on their -- on the streaming deal big blockbuster movies like "toy story 4" and "frozen 2," "avengers" and "star wars." gary kaltbaum, what do you make of this? looks like the streaming service is going to be pretty strong. >> look, i think they have everything going for one of the greatest brand names in the

history of time and they have years ahead of them of movies that more than likely are going to be blockbusters. the streaming service, i think, is going to do very, very well. by the way, about 15 miles just west of me is disneyworld and i will tell you that prices have been going up and the parks are packed. so i think they are pretty much in a real darned good sweet spot. the stock is reflecting it. i don't know if i would be buying it here, maybe get some pullbacks but i think the best days are going to be still ahead for this company. stuart: you make a good point about the theme parks. that was a strong point in disney's profit report but they are wildly expensive. i think i'm right in saying that one adult for one day is over $100. ashley: oh, yeah. stuart: a lot more, isn't it, gary? >> unless you buy a few days at a time. stuart, when they went over $100 a day i thought uh-oh, this is going to be a price problem but no, if you go on individual days, it's like in some days

it's $125, some days are actually up higher than that. whatever they are doing, they are attracting people not only here but around the globe and they just continue to do well. by the way, they are opening "star wars" soon which will be another changing for disney as far as on the positive side. i think you will get tons of people showing up for that. stuart: bob iger, like his politics or not, is surely one of the great ceos of the day. >> he's brilliant. he's a genius. i heard somebody complain a couple weeks ago about how much money he makes per year. he doesn't make enough for what he has done throughout the years for this company. stuart: good stuff. gary kaltbaum, thanks for being with us this morning. always appreciate it. i got to switch gears. serious stuff now. the u.s. and north korea test missiles within ten minutes of each other. ashley: early this morning, eastern time, north korea fired two short-range missiles, one went 260 miles, another one went

170 miles. within ten minutes, the united states launches an icbm, intercontinental ballistic missile, that flew 4,200 miles into the pacific from a base in california. an almost instant response. let's not forget that given china's influence over north korea, maybe this is coordinated by the north koreans who, let's not forget just five days ago also did some testing of short-range missiles. does china go to the table and say let's get some deals done here, let's talk about what we can do in pyongyang as well. stuart: it can't possibly be coincidence that on the eve of the imposition of massive new tariffs on chinese products, their client state, north korea, starts launching missiles. it can't be a coincidence that our guys launch a missile ten minutes later. ashley: almost immediate response. stuart: it would have to be a hard line immediate response, too, to match president trump's -- ashley: icbm, too. susan: from california, right.

don't forget, china is responsible for 90% of north korea's access to hard currency. you know who is dependent on whom. stuart: it's all linked together. look at this, now we're down 270 points on the dow industrials. we open the market in 20 minutes' time. big drop right there at the opening bell from all the indicators. you are down well over 1% for the dow, the s&p and for the nasdaq. now then, later on today, you are going to see this. president trump holds an event on surprise medical billing and how he's going to stop it. when he starts speaking, you will see it. you will see it on this program. secretary of state pompeo got a tough warning for the brits. if you let huawei into your 5g network, we may not be able to share intel with you. that's pretty strong stuff. we will give you the full story. the house judiciary committee voting to hold attorney general william barr in contempt.

jerrold nadler says we have a constitutional crisis. sounds like the democrats are nervous about mr. barr because he's soon going to be investigating them. "varney & company" just getting started. . i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ they feel like they have to drink a lot of water. patients that i see that complain about dry mouth, medications seem to be the number one cause for dry mouth.

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stuart: chevron walks away from the deal to buy anadarko. that means anadarko has to pay chevron a $1 billion breakup fee. good news for chevron shareholders. the stock is up three bucks, $120 on chevron. the senate intelligence committee has subpoenaed donald trump jr. over the russia probe. tell me more. susan: it was shocking because obviously, the senate is controlled by republicans so we had the intelligence, chairman of the senate intrelligence committee, senator richard burr, being the one who helped issue the subpoena for donald trump jr. and receiving a lot of backlash from his fellow republicans, including senator rand paul as well as you know, we also heard from mitch

mcconnell, who said that actually the case was closed and he's disappointed by this. stuart: why would a republican who chairs the intelligence committee demand the appearance of donald trump jr.? susan: that's a very good question. it's still in relation to his meetings and what he knew of those meetings in 2016 during the campaign which is not along party lines, obviously, in terms of what they're doing, but yeah, lot of backlash going forward. strange move. stuart: but it happened. got it. the house judiciary committee has voted to hold attorney general william barr in contempt over not releasing the unredacted mueller report. here's committee chair jerry nadler. roll tape. >> there can be no higher stakes than this attempt to abrogate all power to the executive branch away from congress and more important, away from the american people. we talked for a long time about approaching a constitutional crisis.

we are now in it. we are now in a constitutional crisis. stuart: repeat, we are now in a constitutional crisis. got it. here's republican jim jordan. roll that tape. >> i think it's all about trying to destroy bill barr because democrats are nervous he's going to get to the bottom of everything. he's going to find out how and why this investigation started in the first place. stuart: come on in, charles hurt with the "washington times." explain to me why the democrats are nervous about bill barr. >> well, i think they're nervous, they are clearly nervous because of course, it was the obama administration that kicked all of this off w h with, you know, clear spying and to me, the real tell is to watch democrats argue about the word spy. remember when bill barr used the word spying in a hearing, democrats went -- were apoplectic about it and the reason is because they want to argue about the word spying.

they don't want to argue about the fact that spying was actually going on which clearly there's no other way of saying it, you know, the previous administration was clearly spying on the trump campaign, i.e., political opponent at the height of a presidential campaign. that is the constitutional crisis. the constitutional crisis has nothing to do with bill barr, you know, redacting grand jury information from a hearing -- from a report that he didn't even have to release. he released based on his own decision, nor does it have anything to do with the fact the president is invoking executive privilege at the moment. they are just trying to smear bill barr because bill barr has made it clear he's going to get to the bottom of what launched this whole russiagate investigation in the first place. stuart: so is it imminent? are these reports on how this thing got rolling and what really went on, are those reports imminent, because that would be a sea change, wouldn't

it? you change away from impeaching the president towards what really went on. >> i don't think it will be a sea change for a lot of democrats on the hill. they've gone full delusional on a lot of this stuff. they are absolutely refusing to acknowledge the facts, refusing to acknowledge the truth. but i do think -- but it is a sea change in terms of what regular nonpartisan people in america are thinking because once the story shifts from oh, donald trump is a puppet of vladimir putin and is a secret russian spy or whatever, once it switches from that to oh, my goodness, you mean these fingerprints are found on the beginning of this investigation where people in the obama administration gave orders to tap people's phones, to spy on people that were political opponents, that's literally worse than watergate. and i think that regular nonpartisan americans who are busy working right now and not

paying attention to all the internacine nonsense going on on capitol hill right now, that will shock them and they will remember that going into 2020. stuart: we may have fatigue, investigation fatigue about impeachment, but i suspect there will be a lot of interest when it's the other way around. >> i think that that fatigue just means people aren't paying -- they're not paying attention to all of it. but when it comes time to cast ballots, then they dial back in. when they dial back in, they're like wait a minute, you mean the whole russian hoax thing was completely made up for two years and then oh, by the way, you mean to tell me that the obama administration actually launched a spying operation against political opponents during a presidential campaign? that's not good. stuart: something tells me that charles hurt will have a very enjoyable summer. i've just got the feeling. >> the last two years have been great and i think the next two years are going to be great. stuart: see you again real soon, promise. thank you very much. you better take a look at futures this morning. we are down a bit more.

well, about the same. it's still a big drop. you're down 1% on all the major indicators. the dow, s&p and nasdaq. we are heading south at the opening bell. denver set to become the first city in the nation to decriminalize magic mushrooms. not everybody's happy about that. we've got the full story for you. the shroom story is coming up. we're carvana, the company who invented car vending machines and buying a car 100% online. now we've created a brand new way for you to sell your car. whether it's a year old or a few years old,

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stuart: another down day and it's all about china trade. there's the numbers for you. down 270 on the dow, 30 points for the s&p. that's over 1%. a whopping 102 point drop for the nasdaq. down day across the board. let's get to colorado, where denver has become the first city in america to decriminalize psychedelic mushrooms. tell me more. ashley: the mile high city getting even higher. this does not legalize it, just decriminalizes it, meaning the personal use and possession of the chemical within this magic mushroom by those of 21 years or older is the lowest law enforcement priority. in other words, it's put way down the list of things that the police will be concerned about. out of 175,000 votes in the

denver area, this passed by just 1900 votes. a very close vote indeed. stuart: i'm just not sure that america is ready to expand recreational drug use beyond marijuana. ashley: exactly right. this was brought by decriminalize denver that wants all drugs to be decriminalized or legalized. susan: very liberal. stuart: i have to get back to wall street and give you these numbers again. pretty grim, to be honest. we are down 270 now for the dow, 103 for the nasdaq. we will take tyou to the openin bell. back then, we checked our 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.

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stuart: uber goes public tomorrow. we're very close to getting a price at which you can start buying it maybe tomorrow. what are we looking at? susan: sources telling us here at fox business that it looks like we are close to the midrange of $47, $48 apiece and travis kalanick, the founder of uber, will be there tomorrow at the new york stock exchange. there's been a lot of drama about whether or not he would show up given his relationship to the company and how he left uber but looks like he will be there tomorrow on the floor of the new york stock exchange, maybe not on the balcony to ring

the bell, necessarily. i think it's important to note also in this offering, single class shares. why? because kalanick is not the ceo of the company. stuart: you will be there doing our coverage. susan: looking forward to it. stuart: two seconds to go. we will open this market and i confidently predict a downward move from the get-go. that was yesterday. this is today. now we're down 115, down 183, down 219, 221. there's a sea of red on the left-hand side of the screen. that's the dow 30 stocks. all of them except for just two, chevron and disney, two dow stocks that are up. the only ones that are up as we speak. the dow overall, down 230 points. the best part of 1%. how about the s&p? i suspect a loss there is even bigger. no, it's about the same. just under a 1% loss. 25 points lower. show me the nasdaq, please. that's down better than 1%. when we look at those technology

stocks, we will probably see a lot of red ink. okay. thursday morning, scott martin, michelle mckinnon, susan and ashley, all of them together now. let's start with michelle because you have consistently been bullish. we have had a rotten week, we are going to go down today. you still say we're going to go higher later on this year? >> i mean, of course, 25% tariffs is a big deal but let's face it. couple things. number one, this is a great buying opportunity and there is a ton of cash still on the sidelines waiting to get in. that's why i don't think you are going to see a significant pullback here. number two, yes, 25% tariffs is a big deal. however, china and the u.s. don't want a trade war and number three, let's face it, trump likes a strong economy and at 25% tariffs on all imports of chinese goods, you're not going to have such a strong economy and he's not going to have a big economy to campaign on in 2020. stuart: what have you got? ashley: well, michelle and i were talking about this in the break. there's so much money, a ton of money -- >> ton of money. ashley: on the sidelines.

what's it going to take to get these people in? interest rates are still incredibly low. where do you go to get yield on your money? just sitting there on cash is not going to do it. stuart: scott, come into this, please. do you expect a bounceback next week, for example? >> no, not yet. depends how the week finishes, certainly, but it depends how bad things get negotiation-wise. michelle made some good points. i do disagree with her third point or i would just contest it to the sense that i'm not so sure trump quite understands that tariffs are bad long-term. he seems to be pretty confident in them. yes, that could be part of the negotiation that he's done but we have already threatened other countries that are our big trading partners with tariffs, specifically china or sorry, not china, canada, when we were dealing with them. so to me, he may not quite understand the impacts long-term tariffs have. i'm worried if they do get placed they will have a big impact on the s&p. stuart: i think it will be a headline driven market today and tomorrow. any kind of headline that comes across with any kind of speculation or rumor about these trade talks, that will move the

market. what have you got? susan: also 18 of the 30 biggest companies in the s&p 500 say that they have already talked about the possibility of a tariff increase on their recent earnings as well. how much of this has already been factored in? i would say, you know, if you are a big company and you have to prepare for the unknowns, this is probably one of them. stuart: okay. let's talk disney. they made a lot of money on their theme parks, big attendance at the theme parks, but even more important is perhaps their future streaming operation. they are going to spend big on it. michelle, would you buy the stock at a tiny dip today? >> of course i love dips and i love buying opportunities. i'll say this. i'll say this. it's really hard, i always encourage my investors if you're going to buy an individual stock, you want to buy a small amount because we don't know what's going to happen but what i also liked about disney is the fact their revenue at the theme parks has actually increased. that's the sign of a really strong consumer. ashley: yeah. >> if we continue to see that, i

think that's really positive. >> and the prices. stuart: costs an arm and a leg to get in. i keep using that expression. i used to take my six kids to disney for a week every year and it cost a lot. this is 15 years ago. it cost an arm and a leg back then. susan: over $1,000 now. stuart: come on. what have you got? susan: i want to talk about streaming. obviously people are expecting disney plus to be introduced at $6.99 a month sometime this year. i think the read is maybe in november at some point, they are expecting 60 to 90 million subscribers by 2024. that's disney's forecast. netflix has 130 million around the world. but here's a positive on the balance sheet. they wrote up their asset, it's a gain of 4.9 billion on paper, yes. they share that with comcast. but what's i guess on the downside, they wrote off their

entire holding in vice media to zero. that's how much they value it. stuart: on a sharply down day, walt disney, the stock is actually down just a little bit this morning. that says a lot. check the big board. we were down 200 plus. now we're down 188. it's still a down day across the board. how about the big tech stocks? i always like to check them because they have been moving recently. they are moving today, down. apple is below $200. amazon's below $1900. facebook's below $190. alphabet's below $1170. microsoft is below $125. ashley: buying opportunity. >> you buying more microsoft today? stuart: if i do, i'll tell you. >> good cash flow. have you heard? stuart: whatever you say. higher profit at keurig dr. pepper. does that translate to higher stock price? yes, it does. they are up half a percent. higher profits at the parent of coach. that would be tapestry. they are buying back some stock. that always helps. the stock is up 11%.

however, etsy, their sales growth fell short and they are down 8%. that's etsy. check the share price of fox, parent of this company, parent of this network. they made $529 million profit last quarter. the stock is up 2.8%. we will take that. ruku, they lost less money. look at that stock, up 12%. by the way, i'm going to be talking with the chief there, anthony wood. he's on the show today. amazon. they are accused of violating kids' privacy with the echo smart speaker. alexa, tell me this, tell me that. child advocacy groups say the device improperly records conversations but it doesn't matter. ashley: they store the data in the cloud even after parents tried to delete it. even if they try and remove it, it hangs out in the cloud. it's a bit spooky, all these

devices listening to my kids. susan: don't forget we had this story where basically they had these teens around the world listening in and recording your conversations on any alexa powered devices anyway. they say it's to improve speech recognition and artificial intelligence. >> no one cares. ashley: that's right. >> i care. susan: i don't. >> i got rid of my echo a long time ago. absolutely. stuart: i would not have one because of this. scott, i don't think most people care about this. do they? >> they don't care. the lucky thing, there's millions and millions of data conversations and everything that's kind of going on. it reminds me, i hate to bring this up, of the '93 disaster movie that was "sliver" where they have cameras in everybody's apartment and everybody can see everything but there is so much data just like at amazon and google it probably doesn't matter that it's yours versus somebody else's. stuart: you should read the book

"1984" written in 1948. it's prophetic. brilliant stuff. however, i digress. can we see, please, stamps.com? there's a stock that's being chopped off at the knees, literally. they are being cut in half. they cut their association with the u.s. postal service. ashley: they make the software that allows you to print your own stamps. who uses snail mail anymore? >> if they don't have a contract with the government to make stamps, what does stamps.com do? stuart: very good point. i have no explanation for that at all. they have been cut in half. susan: i'm surprised they're not cut more. stuart: not quite sure of the future for this company. ashley: that's the question. stuart: all right. the operator of hooters partnering with, wait for it, beyond meat. they are going to develop meatless burgers. the stock is down -- ashley: there's jokes in there somewhere. stuart: i'm surprised. i thought everything was going toward beyond meat and meatless stuff.

scott, would you go for this, beyond meat? >> you want me to come in? yeah, it's beyond comical. of all the restaurants or companies or whatever you want to call hooters, that's the one they are leading off with here? that seems to be like the big news they are releasing. here's the quick thing, though. i have heard some people trying this burger, i have seen people have it and they seem to like it. as a meat eater myself, i have made it an interest on my calendar the next couple weeks to go try this stuff. stuart: the stock beyond meat, it's up 170% since it went public just a couple of weeks ago. what do you think? meatless? susan: it had a pretty rough run yesterday, i think it was down 9%. i mean, i like the meatless trend as basically a vegetarian myself. stuart: you are? susan: i'm happy to have an option versus just the curly fries, which are good. >> they're great.

susan: i think it's just more telling to other big companies that are not jumping on this vegan vegetarian trend that they are more in trouble. if you are a large big box company and you don't have a healthier option, i think that's more alarming. susan: if you look at the metrics, this has a revenue stream each year of $80 million, a valuation of close to $5 billion. does that equate? i don't know. it's up -- >> pretty rich. stuart: well said, pretty rich. >> that's the only reason i go to hooters, too, for the curly fries. stuart: cutting it off. 9:40 eastern time. michelle and scott, thank you very much indeed. i think we better recheck the big board, because it's not pretty. we are down 215 points. that is putting us back at 25,750. we're down. the boston red sox head to the white house later on today. they are going to celebrate their world series win at the white house. however, some players will not

be there. looks like politics dividing the team. actually, race is also dividing the team. barstool guy, david portnoy, joins us on that. senator elizabeth warren, the latest presidential candidate to push a big new spending plan. she wants $100 billion to fight opiate addiction. if the democrats win in 2020, somehow or other, everybody's going to have to pay for all these spending plans of the democrats. my take on that in the 11:00 hour. the u.s. test fires an intercontinental ballistic missile just ten minutes after north korea launched two short-range missiles. sounds like a real escalation to me. we will tackle it next.

stuart: this is the low of the morning. we're down 240 points, the best part of 1% down. almost across the board, by the way. 25,741. look at the share price of fox, please. that is the parent company of this network. reporting its first quarterly numbers as a stand-alone company. jackie deangelis is here. fox is holding its big investor event right now. take me through it. >> exactly right. 76 cents was the eps, $5.7 billion in revenue. that's why this stock is trading higher today. the company also announced a 23 cent semiannual dividend as well and a sports media partnership with online gambling company stars group. the investor day is happening right now. rupert murdoch opened saying that the company is pivoting at a pivotal moment.

loughlin murdoch made remarks talking about the creation of a more focused, agile fox and how they will streamline the business moving forward. it's a new opportunity for a new chapter in growth. that's what investors are focusing on. he said it's bringing all the properties together and also the focus on digital as well. and they also focused on this idea of the power of now, trying to sort of tap into the zeitgeist of what's happening in america and deliver that content in that way. stuart: live is good. investors clearly like it. the can sto stock is up 4%. we like it. jackie deangelis, thank you. good stuff. the u.s. and north korea test missiles within ten minutes of each other. this happened overnight. joining us is doug bandow with the cato institute. i have to believe there is coordination here. it can't be just coincidence that on the eve of imposing tariffs on china, their client

state, the nokos, launch missiles. there has to be a connection here. >> the north koreans have their own agenda, i think, going back to the summit that failed. their old playbook has always been confrontation, wave missiles around, say pay attention to us, and what they're doing now is very careful. they're not launching missiles that could hit america. they are launching missiles that could hit south korea. stuart: it's provocative and it's timed right as their parent company, so to speak, china, gets hit with tariffs. there is linkage here. everything is linked in this stuff, isn't it? >> this may be one missile test the chinese don't mind. i think in the past, they have been upset about kind of a mess on the peninsula but they certainly would like to give the trump administration some trouble now. so i don't think they mind. this is one they are probably not complaining about. stuart: it seems that there's a lot of problems on the foreign policy front. the revolt in venezuela failed. iran is still rattling its

sabers. north korea is launching missiles. there's a trade fight with china. not all going well on the foreign policy front. >> no, at the moment the president has a hard time pointing to some great successes. everything is kind of up in the air, all of these plans so far aren't working out. i think china's the big one. he's got to land that trade deal. has major economic implications. that's the biggest country, that's the biggest one we have to worry about. stuart: do you think it's going to happen, there will be some kind of deal with china, no matter what? what do you say? >> it's hard for me to believe there won't be. a couple of days ago i talked with a senior state department official. the expectation was something's going to happen. i think a lot of people have been taken a bit by surprise with the new tariffs but it matters so much on both sides, you can't let this one go on. stuart: i would like to know what happens at the dinner tonight between the chinese vice premier and our top trade guy. they are going to have dinner literally hours, maybe even minutes, before the tariffs go into effect. i would love to know what they are going to be saying. what do you say? >> i think it's going to be a

tough conversation. i would hope it's one on both sides saying we can't let this happen, let's get real. we've got to get this worked out. the chinese have to make a serious commitment and actually follow through. that's the real challenge. stuart: the stock market's performance tomorrow morning will depend heavily on the expression on the trade negotiators' face when they emerge from the dinner. >> that's right. are there smiles. that's right. are they friendly with one another. exactly. stuart: if there's no picture at all, that's real bad news. >> very bad. exactly. stuart: doug, i'm sure we will all be watching it together. we thank you for being with us this morning. >> happy to be on. stuart: thank you. low of the day, here we go. we are down now 270 points. that is better than 1%. i've got two dow stocks up, chevron and disney. the other 28, solidly in the red. looks like president trump's focusing on three democrat presidential candidates in particular. joe biden, mayor pete, and bernie sanders. he went after them during his

rally last night. you're going to hear the sound next.

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stuart: right from the get-go this morning, we've just headed south. now we're down 300 points on the dow industrials. that takes us to 25,600.

big down day. look at facebook. what a fascinating story we've got for you here. one of its co-founders, chris hughes, he's calling out mark zuckerberg in the "new york times." he's the guy on the left, by the way. that's mr. hughes on the left-hand side. calling him out. calling out zuckerberg. tell me more. susan: it's a very personal story, this op-ed piece in the "new york times." chris hughes was mark zuckerberg's college roommate as well. he started off this op-ed piece talking about the last time he met with mark zuckerberg. it was in the summer of 2017, a few months before cambridge analytica broke. they spent one to two hours together. he heard the cries of his toddler daughter and he also hugged his wife priscilla and said good-bye to mark. very personal. obviously they have known each inform a long time in the 15 years since facebook was founded. now he's saying it's time to break up facebook because it's way too powerful. so he says that whatsapp and instagram should not have been

bought and chris hughes says we are a nation with a tradition of reining in monopolies no matter how well-intentioned the leaders of these companies may be. mark's power is unprecedented and un-american. it is time to break up facebook. ashley: that's strong. susan: very strong language from someone that knows him and is one of his very closest friends. stuart: he walked away with a billion, didn't he? susan: close the a billio a bil. a few hundred million dollars. he doesn't work at facebook anymore. he has his own projects to work on. if you are mark zuckerberg and one of your closest, dearest friends wrote this about you seemingly out of nowhere. stuart: un-american? really? okay. well, the stock is down two bucks. it's a big down day anyway. but it's back to 187. that's not a huge loss. that's a 1% loss. it's about in line with the rest of the market. i don't think that article had that big an impact on the stock. susan: no. maybe not on the stock. but probably personally for zuckerberg and his family. stuart: okay. now, another low.

here we are. now we're down 311 points on the dow industrials. i know for a fact we are down well over 100 on the nasdaq. we are down 30, 40 points on the s&p. very big selloff today capping out a pretty bad week overall. next case. president trump going after the democrat presidential candidates big-time last night at that big rally in florida. listen to what he said about biden and bernie. roll tape. >> you got some real beauties. crazy bernie. you got a choice between sleepy joe and crazy bernie. and i'll take -- let's just pick somebody, please, let's start this thing. stuart: i just can't see how the next president if it's not mr. trump, will match that kind of entertainment value. ashley: let's be honest. the candidates out there on the dem side, 20 of them, okay, you pick biden and you pick bernie because they are kind of the top of the heap right now. mayor pete, maybe. he doesn't care who it is.

he's ready to take them on. he's very difficult to beat. susan: for the audience and for the american public, wouldn't it be so interesting to see a head-to-head debate between president trump and bernie sanders? stuart: fascinating. susan: on the 2020 trail? i would love it. can you imagine the ratings? it would go through the roof. stuart: no matter who it is, the ratings are going to be huge. ashley: correct. stuart: to see president trump go up against any candidate, that is priceless stuff that everybody will watch. susan: i feel like bernie sanders is more plain-speaking. two plain speakers that are just direct with each other. that will be fantastic. stuart: if it's bernie sanders, the president will goad him. ashley: oh, yeah. stuart: see if he can break him out. all right. still at the low of the day, minus 310 points for the dow industrials. better than 1% drop all across the board. now, cut through all the noise from the democrats about impeachment and contempt and constitutional crisis. cut through all of that.

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stuart: it is unfolding as expected. enraged democrats will not give up on impeachment. robert mueller says no collusion. william barr says no grounds for obstruction of justice. that doesn't matter with democrats obsessed with removing the president from office. here come the lawyers and legalisms. judiciary chair jerrold nadler says we are in a constitutional crisis. speaker pelosi says, the president is impeaching himself. maxine waters keeps saying it impeach 45, impeach 45. here is my opinion. impeachment is really out of the question. i can't for the life of me see high crimes and misdemeanors in the mueller report. even if there's a move to impeach in the house, there is no way it goes anywhere in the senate. impeachment is not going to happen. a successful impeachment at least. most democrats know it.

so what they're doing is making a lot of noise, hoping to slime the president's reputation. they hope that they can dig up something nasty that sticks. well, watch out. because there is going to be a lot of noise going the other way. there are various investigations into what else was going on before and during the election of 2016. those ideas will be made public, investigations, they will be made public soon. exactly who launched the mueller probe in the first place, and why. did president obama know about spying on the trump campaign? what was hillary's role with that dossier? the attorney general is looking into it. the inspector general is looking into it. senator lindsey graham is looking into it. there is a whole lot of investigating being done and this time it is the democrats who are the target. truth is, under all that impeachment constitutional crisis noise there are plenty of democrats and former government officials who are running scared

about the noise that is yet to come. the second hour of "varney & company" is about to begin. ♪ stuart: it is a new low for the day. now we're down 316 points. oh, by the way, we just got the latest read on mortgage rates. the number? ashley: 4.10%. down to 4.1. it was 4.14 last week. so it is drifting down. that is reflecting what is happening in the markets. a lot of money going into the bond market. prices up, bond yields down, bringing down mortgage rates. we have low mortgage rates. we have a strong job economy. will this really help spark the housing market as spring is here. hasn't so far. very flat. ashley: stuart: we asked question every

week. we're still down well over 300 points. let's get back to my editorial top. hour. democrats holding attorney general barr in contempt. impeachment talk not going away. come senator rick scott, from florida. my judgment the democrats are running scared. they are worried about what mr. barr will get into. how do you see it? >> everything up here is about the 2020 election. did these individuals run for office i will investigate things, or i will focus on drug prices, how to get the economy going, how to fix the border crisis. that is what americans care about. they're trying to make this politics and they forgot why they're up here. they forgot about it. it is so frustrating. stuart: you went from being a significant executive in the health care industry. then you became an executive. you ran the state of florida. you were the governor. now you opted to go into the

legislative branch. are you happy about that? >> i want to get things done. it's a different job. there is some, so, frustrating that we're not getting things done up here. we're fighting about the 2020 election instead of solving problems. i'm very optimistic. i will work hard. we're going, i'm excited about what trump has done with the economy. record unemployment. you know, housing prices in my state are doing really well. so many people moving into my state. in my state things are really, they're on fire. stuart: tell me about what we should do with venezuela? you've been hot on this subject and the venezuelan revolt appears to have stalled and failed frankly. what should we do? >> let's first off remember the problem. we have an individual by the name of nicolas maduro that is killing his citizens. there is complete genocide. there two or three weeks ago i was down on the border of venezuela and you have children having to cross a river every day. that day the river was up to here, up to their chest. they come to school, get to eat

from venezuela to colombia. you have a food kitchen, giving only meal to a mom with three kids. one meal a day. the whole family is sleeping on the streets. we have got to deal with this. we have got to really consider taking our military and other countries military, taking humanitarian aid in. we have to stop the flow of oil to cuba so the cubans quit supporting maduro. we need to blockade the cuban ports. stuart: mr. senator, that is strong stuff. you're talking about a naval blockade of cuba? >> absolutely. stuart: the use of american troops on the border of venezuela so we get the food aid in there? that is sharp edged military response. >> stuart, step one, there is genocide going on. stuart: isn't that a strong word, mr. senator, genocide? >> no. i mean 80% of the kids under five have malnutrition. all right? we have people starving to death on a daily basis in venezuela. this is horrible what is going

on. look, we, i know president trump is working hard with the sanctions. i hope other countries would help us with the sanctions. the cubans are propping up maduro. let's remember, here is where we are, stuart. we have a syria that will happen in our backyard if we don't deal it. russia, hezbollah, china, iran, they're all there and it will be close to our border. you can climb up through central america to get to our border. we will deal with this now or we will deal with this later. so we've got to stop what is going on. stuart: have you talked to the administration? have you talked to john bolton for example, pushing your hard-line? >> absolutely. i talked to president trump. i talked to secretary pompeo. i talked to ambassador bolton. i believe we have to understand what is going on here. we have genocide going on. cuba and all the bad players participating. we have to stop that. we have to deal with this now so we don't end up with syria in

our hemisphere. stuart: like 1963 again. naval blockade of cuba. it takes you back. mr. senator, thank you for taking time out on a very busy day to be with us this morning. >> thank you, stuart. stuart: thank you. let's get back to your money. we better check back with the big board. we're still down over 300 points. this is better than 1% drop across the board. michael o'keefe is with us, chief investment officer at stiffle. this is a big down day and big down week. what is going on from here? >> our view weeks ago was modest up. stuart: on this program. >> yep. we talk about volatility. the way we look at this are the fundamentals, when you look at fundamentals of the economy, earnings, et cetera, we see the market going higher, but the volatility is really driven by these news items. whether it is what is going on

in d.c., u.s. china trade, tweets and points of news, little friction that we see there. ultimately that spooks people. things sell off. that is volatility. in environment like this we're filling a little bit. stuart: we shouldn't sell stocks we've got in anticipation of a long drawn out decline? >> we don't see that happening. again that is something we watch for. you think of it is as a bar market associated with weakness. stuart: it seems like a headline driven market. >> no doubt about it. stuart: any headline across the transom talks going this way, talks going that way, you will get a market response real fast. >> i would say the u.s. market is fairly valued. what that means going forward we expect a positive return. maybe not a blowout return but positive return. when things are positive, bumping around, news in both directions causes quick movement. stuart: the economy is obviously strong. profits are better than expected. >> yes. stuart: getting better than

expected in the future as well as just the most recent quarter? we're still got very profitable companies in america? >> yes. and again i think it comes back to, what is it, the heart of our country. it is about innovation and ever looking for ways to improve it. it is using technology not just with the big tech companies but across the entire sort of footprint of our corporations. stuart: let's suppose it is not just the $200 billion worth of product that get 25% tariffs tomorrow. suppose it goes on from there, another $325 billion that gets hit with 25%. do you still hold to that? >> we do but as i said last time i think at the heart of our outlook there is resolution. there will be a u.s.-china trade deal. what is happening right now thighs two tough negotiators are putting things on the table to try to fight it out, hopefully as they're working through the final terms of this deal. if there isn't a deal, we'll see the market move down. stuart: not selling my microsoft having listened to you. >> yes.

stuart: realize the responsibility on your shoulders. >> i feel great about the responsibility. stuart: good man. thank you for joining us. this is from the pentagon. look at this. those are four nuclear capable b-52 bombers. they're heading to the middle east. big show of force against iran. general jack keane on that. what are they up to here? he is on the show later. the boston red sox scheduled to visit the white house this afternoon celebrating the world series win but half the team and the red sox manager not going to be there. this is, i hate to say it, but there is a racial divide here. we'll get into it with bar stools sports founder david portnoy. he is a red sox fan. what does he have to say about the racial divide? matthew charles, one of the first inmates to be set free under president trump's first step prison reform. now he is one of the people leading the charge to get more non-violent offenders out of

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stuart: we are down 322 points on the dow. that is down 1 1/2%. read this and really weep. stamps.com slashed the forecast for the year. they're uncertain about the contract with the post office. the stock is literally chopped in half. it is down 54%. president trump's first step operation, act i guess you can call it, that is a prison sentencing reform bill. it reduces sentences for non-violent drug irv fenders. come on in kelly paul, member of the coalition for public safety, by the way, the wife of senator

rand paul. along with matthew charles one of the first people freed under the first step deal. matthew, you first, please. tell us your story. take me through, will you? >> in 1995 i received a 35-year sentence for non-violent drug offense. prior to me actually going into federal prison i ended up becoming a christian in february of 1996. once i entered into prison i continued to live a christian lifestyle, learn more about my faith. in 2010 the sentencing guidelines changed which lowered the crack cocaine ratio to powder cocaine ratio. i filed a motion with the court. judge sharp lowered my sentence to alloy me to be released 2016. i was out for two years, then the government successfully appealed my sentence. the court was ordered to reinstate the original 35-year sentence. i was sent back to finish the remaining 10 years. stuart: whoa. we're glad you're out, sir.

>> thank you. stuart: 35 years, just reimposed, that seems a little harsh, shall we say. glad to see you on the program. very glad you're out. >> all right. stuart: kelly, you're working on a similar prison reform, at the state level. is that show we got it at the federal level. you want to bring it in at the state level. am i right saying that? >> yes. kentucky, my state has been very proactive, as have quite a few red states, actually. texas, kentucky. we passed dignity bills. we're really working on lowering recidivism rates. helping people to find opportunities for jobs. stuart: are you getting any opposition? you are sitting next to a guy who is adjuster risk candidate for early release. i mean, good heavens, what a candidate. are you getting any opposition to this? >> actually no. this is truly a right-left coalition. we have people that are very conservative, evangelical christians have been involved in criminal justice reform. we have people on the social

justice side. libertarians, conservatives, all saying that by locking up vast numbers of americans, i mean the number of women since 1980 has increased by 700%. we've really conflated addiction and substance abuse with criminality. it is just not working and we're locking up human potential. even on the conservative side we have a lot of proponents. stuart: you have it at the federal level. let's suppose you get it at all states, get it there as well. how many people could actually be released? >> i don't actually have the number for you there but what i do know is that, you're looking at such an increase, we now have one in three americans who have some type of criminal record and we really have an overincarceration problem in this country. we're the most heavily incarcerated country in the world. stuart: okay. >> so looking at things like more probation, home arrest, more recovery programs, halfway

houses, are really helping people to retain their jobs and stay closer to their families. stuart: i hope this doesn't come too far out of left centerfield but i'm going to ask you about denver voting to decriminalize magic mushrooms. i'm sure you heard about this. i want to go to you first, matthew. what do you say about that, decriminalizing shrooms, what do you say? >> i don't have a comment on that but there is lot of behaviors that actually shouldn't be criminalized, that are criminalized. to see something and be criminalized i don't want to state pertaining to that actual mushrooms. stuart: understand. >> i see there has been taken into accountability decriminalize certain types of behavior. i think that needs to be done. >> and one of the things, stuart, what we really want to do is focus our tax dollars and our government focus on violent criminals. people who are a danger to society. we do have a limited number of

resources. we need that, that is what we need to be focusing on, actually keeping people safe, not just incarcerating huge numbers of people. stuart: understood. kelly, matthew, what a pleasure. thanks for being on the show today. really appreciate it. >> thanks for having us. stuart: sure thing. roku, millions use that device every day to watch tv. we have the ceo, anthony wood coming up. the stock by the way hitting an all-time high, i think today, actually. 79 bucks a share. it is up 22%, the ceo is on the show. next hour president trump speaks at the white house, topic? surprise medical bills. that is a good subject. i'm into that shall we say. we'll take you there live when it happens. we'll hear what the president has got to say. more "varney" in a moment. my dr.

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stuart: keep saying it, low of the day. now we're at a minus 346 points. that is 1.34%, down across the board. the senate intelligence committee issuing a subpoena to president trump's son, don, jr. all rise, judge napolitano is here. first of all, why would a republican, it is a republican who issued the subpoena, why would have republican do it? >> if you said the house intelligence committee we wouldn't be having a conversation. here's why. because don, jr. testified in secret before the senate judiciary committee and the senate intelligence committee. sources have indicated he told one or the other or both that his father new nothing about the trump tower meeting in june of

2016 with the russians, that he, don, jr., knew nothing about the efforts to build trump tower moscow. since he gave that testimony, both in secret, both under oath, michael cohen, who started his jail term just two days ago gave testimony to both committees which contradicted that, which said i, michael, regularly briefed the father, donald and his children in the business, including don, jr., on trump tower moscow. i was in donald's office when donald, jr. called and said, guess who we are about to meeting with in trump tower later this week? so you have testimony that contradicted. i think they felt they had to tie up those loose ends. quite frankly i saw this i was stunned. the s&p is a week old, by the way. its existence was made known to the media late last night. what has been going on in the week, they have been trying to get them, get him voluntarily to

come in. when he wouldn't voluntarily to come in, they released existence of such publicly. sounds like you're dealing with a democrat. he is dealing with principled richard burr who wants to end the investigation. you would think the investigation is over. stuart: i have no time, i have no interest for it. that is just a fact. there will be a passle of lawyers who said what or who, they will believe a proven liar, like mr. cohen. >> i couldn't agree more. i was as stunned as you. i thought i misread it. stuart: what are they doing this for? >> you know what? get senator burr here ask him that you, senator burr, already said our investigation is over and there was no conspiracy. so why is this still going on? that is the 64,000-dollar question. stuart: i'm exasperated with this case.

i'm exasperating by it. >> this is exasperating. stuart: there is no collusion. let's gone on wit. >> i wish senator burr was here to receive your, exasperation. stuart: you have to get him on the phone. >> always a pleasure. stuart: you may know stedman graham, opera's other half. he knows a thing or two about leadership. he has written pa book bit. he is on the show. we'll ask him what he thinks about president trump as a leader. that is coming up next. ♪ heading into retirement you want to follow your passions

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♪ stuart: okay. i think we can get behind that. ashley: i think we can. stuart: one of the more insipid ringo starr songs but we'll take it. good stuff. i'm sorry i have to tell you this, this is another low of the day. look at that, down 384 points. that now is 1 1/2%. we've been heading south since the opening bell exactly one hour ago. down 381 as we speak. i want to talk about uber. as you know they're going public tomorrow and the two biggest individual shareholders are travis kalanick, company founder, garrett kemp, company founder. susan how much money will they make. susan: they will make a ton of money. travis kalanick holds 6%, he was

kicked out as ceo in 2017. he will be there on the new york stock exchange floor along with his father. not necessarily in the balcony, because they want to recognize for early employees an drivers. stuart: how much are they going to make? susan: travis will be worth 6 billion when the ipo rings on day one. as for squareket camp 4.6% holding what i'm seeing. that is 3 billion or so. these individuals even though they're not particularly in the day-to-day, they will still walk a way with a ton of money. there is still a lock-up period for most of their shares. they have sold some off. stuart: bottom line, billions? susan: what we're hearing, 47, 48, that is a lot of money. stuart: i want to bring in market watcher joel shul mann. this guy only invests in entrepreneurial companies. will you buy uber day one? >> i will not buy day one. it has 90 mers plus valuation.

lyft dropped 40% of their high. these companies, the market is frothy for many ipos. a company dropped 9%, another five or 6%. so the markets are coming out strong. when you think about uber, when you compare it to other $90 billion like lowe's company, 71 billion in revenues, 5 billion in profits. ups, 71, 72 billion in profits, another 5, 6 billion in profits this company does not have profits. they have $4 billion in losses on preextraordinary items. this is not a company i would buy yet. we'll wait six months. travis, who was the ceo is no longer the ceo, he was the poster boy of bad behavior. stuart: he is no longer with the company. susan: no, he is not. >> the culture -- susan: the culture has changed. he was brought in 2017 to change it this is single class share which is important to note. meaning you don't have

extraordinary voter powers for every share out there. travis isn't there anymore. ashley: let the dust settle. stuart: i'm buy, i'll buy them, i which buy them when i think make a profit. they will unionize make a lot more mon, any they will not make a profit. i will not buy. what is wrong with that? >> i agree with the logic. we like to have entrepreneurs who are still in the company. when he built the company he built a great company but again, we don't know about the culture. we're not going to buy it. susan: no clear path to profitability as well. that is what the company said. stuart: i read your stuff, joel. i know you think i gloss over it but i do read it. >> appreciate it. stuart: everything depends on china, the whole market depends on china? >> we've been saying since the beginning of the year and market appreciated up 30%, 40% for some securities, and some indices, we've been saying for a long time the market is exposed bigger on the downside than the

upside. if the china deal does not to through. we could have a big hit. we could have 10% plus hit. the market is down a little bit this week. this is a big deal. it has to to through. stuart: i think it is a headline driven market. any headline out of the trade talks or tonight after the big dinner if you see a headline where they're all smiling maybe the market goes up. if there is no photograph of any kind maybe we go down. i think you're right. everything depends on china. >> that's a big story. stuart: joel, that was a fine performance. you may be back. >> thank you. stuart: now then the huge campaign style rally in florida yesterday given by the president. i want to show you a couple of the highlights. roll it, please. >> america is thriving again. america is winning again and america is being respected again. we're respected. [cheers and applause] in fact one of the democrats today said that he, it's a he, sleepy person -- [laughter].

said that he heard from a lot of foreign leaders and they want him to be president. of course they do. so they can continue to rip off the united states. stuart: that is our leader. joining me now, stedman graham, author of the new book, "i dentty leadership." long-time partner of oprah winfrey. stedman is with me, sitting next to me in the studio. >> how are you. stuart: i will shake that hand. do you watch the show? >> i like your style. stuart: really? >> you have the english accent. you're distinguished guy. you know you're all up here, you know what i mean? stuart: very kind. that is very generous. >> because you're doing exactly what you love to do. you're smiling and you can tell you have the passion for it and you can self-actually eyes it, organize a vision for self, plan for yourself, build relationships like you have. build a network -- stuart: who writes your script? that is really cool. >> maximize potential at human

being. using 24 us you have every single day. that makes us all equal. everybody has 24 hours. how can you empower yourself in the 24 hours that you have? you seem to do that very well. stuart: there is a great segue from me to the book but i'm going to jump in the middle of that. what do you make of president trump as a leader? >> well i've known president trump for over 30 years and he is always treated me very well. and i'm served in the u.s. military, okay? i served my country. and you know, i, my philosophy is not what your country can do for you, it is what you can do for your country. i'm not here to bash the president. stuart: right. >> i'm not here to bash my country. never going to happen. stuart: what do you make of his language? >> i'm not here to criticize, i'm not here to criticize the president of the united states. stuart: is that good leadership? >> i'm not here to get into his personal business how he leads himself. i'm here to talk about identity

leadership, which is self-leadership based on the philosophy that you can not lead anybody else until you first lead yourself. i'm more concerned about empowering the people to be able to make impact based on their potential as a human being, to understand how to take information, education, make it relevant to their purpose in life, what they love, care about, like you do, transfer that into their mind to be a thinking human being. transfer that into the american enterprise system in the greatest country in the world, create and reach your potential and understand how to take information and knowledge, make it based on what you can give back. stuart: does it matter what your values are? >> of course. stuart: it does? >> you have to have a value system. stuart: some say i only want money and want to pile it up. that doesn't make me a very good side. >> we are in capitalist system. nothing wrong with monetizing. we're democratic, that we live in capitalistic system as much

freedom you can get to self-determine and self-actuallyize. stuart: capitalism is -- >> you can use both. you can have a socioeconomic process for improving your own life and your family's life. social is almost as important as economics. so if you put social economics with technology, as a way to utilize the global marketplace, we're living in a global marketplace, to see how you self-actuallyize yourself. okay on yourself first, based on discipline, based on vision, based on purpose, based on what you should be doing, what you love to do. like you do every single day. figure out how you're going to impact the global marketplace that you're in through technology is a way of applying technology to your development.

you change the learning system around. right now we memorize, take tests, repeat information back, we grade, we get the information. we stuck in rut of doing same thing over and over every single day. if we're not thinking, we're not innovating, we're not creating, you can't have a strong company. stuart: you know television, don't you? you know what a hard break is all about, don't you? i have a hard break. >> go ahead. stuart: stedman graham, you're all right. i will shake that hand. please leave that copy of the book. >> this is for you. stuart: did you autograph it? >> follow nine steps of success process. you're the man. stuart: [laughter]. stedman, you're all right. thank you, sir. >> thank you very much. stuart: thank you. san francisco, laying out plans for a new tax. surprise, surprise that could hit all those big tech companies going public. lauren simonetti is here. break it down. how does it work? >> it's a tax on companies. it is being announced today in san francisco conveniently, a day before uber ipos.

basically what san francisco is saying we helped you, we helped incubate you, your ideas, you're headquartered here. you're about to get something, payroll tax plus additional 1.12% tax on, give you the exact terminology here, on stock based compensation that would be levied when an employee sells their options, all 1 1/2% going to fix this city's problems. homelessness, housing affordability, traffic jams. there are big problems in san francisco. stuart: supposing i live in new jersey as i do, i got a piece of uber -- >> the company you're not employee. stuart: only the company's -- >> company tax is on the employees. stuart: uber being based in northern california. >> it is lyft, it is pinterest, many about to go public. stuart: they will make a fortune. they will. >> first two years expected to be up to $200 million. but what message does it send to the businesses? stuart: move. >> right? >> go to florida.

>> maybe they will because technology is mobile as is capital. stuart: got to go. great story. the boston red sox, they head to the white house this afternoon. there is a catch though. only half the team makes the trip. there racial divide. terrible thing. barstool sports guy, david portnoy up next. hud secretary ben carson is on the show. he is spearheading the trump administration to encourage the push to investment in low income areas. i want to know, why aren't we hearing more about this? they are successful, the opportunity zones? why don't we hear more? we'll hear more in a moment. ♪ jardiance asks... when it comes to type 2 diabetes, are you thinking about your heart? well, i'm managing my a1c, so i should be all set. actually, you're still at risk for a fatal heart attack or stroke. that's where jardiance comes in. it reduces the risk of dying from a cardiovascular event

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stuart: well, this is, it is not, the market is not coming back at least at this point today it is not coming back. we've been open for an hour and a quarter and we're still heading south. minus 375 as we speak. i say it again this is the china trade story. tariffs go on tomorrow very probably. the market doesn't like it. now we're down 1 1/2%. okay, next case, the world series champ red sox make make a visit to the white house however, half the team, including the manager, they are not going. the divide is right along racial lines. david portnoy, barstool sports is with us this morning. you're a red sox fan. >> yes. stuart: how do you feel about the racial divide when it comes to visiting the white house? >> it is not great. i'm concerned about how that affects clubhouse. you can't force people to go. it is individual decisions. that's life. stuart: do you have anything to say about the players who are not going who will diss the

president? >> it doesn't totally surprise me. it is happening a lot with teams that win. that is what this country is about, right? you can make your own individual decisions. if you really hate trump and you don't want to go, then don't go. nothing they can do. stuart: there is racial different site in football as well. there is racial divide in baseball with this visit to the white house. >> yay. stuart: i don't think it is good for the sport or good for baseball. i don't think it is good. >> good in what sense? stuart: you're a sports guy, you just look onward, say that is okay? >> what would the solution be? if cora doesn't want to go. stuart: i don't have a solution. >> that is what makes this country great. it stinks there is racial divide. stuart: yes, thank you. >> but guess what? there is a racial divide in the country. there is. sports is reflecting the country right now. it stinks. i'm more worried about wins and losses. you hope it doesn't divide the clubhouse as a red sox fan but the fact there is a racial divide in the country. stuart: does it hurt the sport? >> in what way?

stuart: less people watching it, more people angry when they see the racial divide, turn the tv off when anthem gets kneeled on? >> no doubt it can hurt the sport. the sport is reflecting how society in general is right now. the solution, i don't have one. i don't know -- stuart: surprised, you're ducking. >> how is it a duck? stuart: it is a duck. >> it is reality. that is not a duck. if i own the red sox, all right, if i was the owner i wouldn't tell people they had to go or cancel it all together. it is an individual decision. that is what this country is about. it stinks there is a racial divide. the best-case scenario the guys in the locker room talk out amongst themselves, prove an example. stay united. they didn't do that i can't force them to do it. i can't force them to do it. i can't force you to do anything. maybe i could if i had enough time. stuart: money. i'm bribeable, baby. i don't know you talking about, spurs beat -- >> i thought you were talking about san antonio.

they have been eliminated a couple weeks. i don't know how you have your own show. stuart: to the nam hotspurs, beat iyak in game. >> talking on an american show talking about this garbage. stuart: oh, portnoy. you fired me up. >> i did. stuart: what are you talking about? >> talking about real sports. stuart: prepared to bet within a couple of years more people will be watching english premier soccer than hockey is english premier soccer a new thing? stuart: it is new thing. >> from lacrosse people, soccer people, been hearing that for 40 years. stuart: news flash, it's arrived. >> it has been around forever. it's a fringe sport. stuart: if you watch the fantastic games, portnoy. >> i live in this country. stuart: i have a complaint but but i cracked that note about you last time. you have energy. you know. >> i'm trying to bring it here, yeah. stuart: mr. portnoy, he is all

right. thank you, sir. >> thank you. stuart: now let's get really serious, shall we. four nuclear-capable b-52 bombers on your screen deployed to the middle east. if that is not a show of force against iran, i don't know what is. jack keane assesses next. ♪ now i'm thinking...i'd like to retire early. let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.

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stuart: well, look at that! dramatic video from from the pentagon left-hand side of the screen. four nuclear-capable b-52s heading to the middle east. uss lincoln carrier battle group sailed through the suez canal this morning. joining us, general jack keane. general, that is a very big show of force against iran, isn't it? >> yes it is and some justification according to the national security team around the president because evidently, they had a credible threat that the iranians were going to take some kind of action against u.s. forces in the region based on designation of the irgc as a

terrorist organization and also the increase in sanctions that have been taking place. they are clearly starting to squeeze the iranians rather significantly. stuart: if there were, i know i'm speculating here but if there were a terrorist attack planned and executed by the iranians outside of the middle east would we still punish iran by going after them militarily? >> it would depends what that attack was. if it is against a u.s. facility, the answer to that question, with this administration is likely is yes. so the iranians know that. they have never, stuart, since islamic state of iran was established in 1980, they have never had this kind of pressure put on them by either a democratic or republican administration in the past. and clearly they're beginning to feel it. just this beak they went to germany, england and france and told them, they're going to remove some of the restrictions

of the nuclear deal in terms of enriching uranium and heavy water they have to make a nuclear weapon if, if these three countries don't give them some economic assistance within the next 90 days. to me that is an act of desperation and reflecting the fact that the sanctions are taking hold. stuart: earlier this morning, general, we had senator rick scott on the program. he's upset about the standoff in venezuela and the failed revolt there and his suggestion is, let's punish cuba with a military naval blockade. what do you say to that? >> well i don't think we're red to do that. i think that is one of the options clearly on the table. the, i think the administration certainly is disappointed that the overthrow that was supposed to take place a week ago did not materialize. but nonetheless there is significant is pressure on maduro. some of the sanctions we imposed are just beginning to take

effect. guaido, the duly-elected president of venezuela now, by the national assembly, is working with some of the leaders that worked for maduro, offering them positions in a new government. so i think where the administration is, stuart, they will wait and see. they have a number of options on the table. that is one. military show of force around venezuela with naval task force is another. conduct the humanitarian relief operation. and that would possibly require some military force to execute that successfully and of course a military intervention which i think is while supposedly on the table i don't think it is a serious consideration. stuart: general jack keane, good stuff. thanks for joining us, sir. see you again soon. >> good talking to you, stuart. stuart: senator elizabeth warren wants to spend $100 billion to fight opioid addiction. bernie sanders wants "medicare for all." then there is the green new deal. sounds like if the democrats win

somebody has to pay up a whole lot of money. my take on that next. ♪

stuart: gets worse. now we're down 425 points. that is a 1.65% decline and that's true all across the board. the problem here is china trade. that's the story of the day. at midnight tonight, if all goes according to schedule, we will impose 25% tariffs on $200 billion worth of chinese goods. now there are trade talks taking place in washington as we speak and there will be a dinner tonight between the chief chinese trade negotiator and our top guy. whatever comes out of that meeting may affect the market but right now, we are way down all across the board. now this.

hardly a day goes by without a big spending plan from a presidential candidate. today, it's senator elizabeth warren who wants to spend $100 billion to fight opiate addiction. add that to free college, medicare for all, universal basic income schemes and the $93 trillion green new deal and clearly a democrat win would mean the government needs a ton of money to even start paying for any of it. i pose this question. if they win, who pays? my answer is, everybody. democrat policies will cost trillions. you can't get that kind of money just by taxing the rich. no. the tax bite has to hit everyone, the rich, the middle class, even the poor. how about a carbon tax? that would fit the green new deal. you pump out carbon, you pay. even at a low rate, a carbon tax brings in $1 trillion a year,

but we all have to pay it. more for electricity, more for gas. we all pay. how about eliminating entirely the mortgage interest deduction? bloomberg estimates that would bring in $970 billion. big money. but it's a direct hit on mortgage holders and that is middle america. here's a radical idea. how about a value-added tax? that's a national sales tax just like europe. at 5%, it brings in over $6 trillion. unfortunately, we all would have to pay it every time we buy anything. several candidates would repeal the trump tax cuts for businesses. yes, businesses would pay more. but you would end up paying indirectly. fewer jobs, fewer wage increases, because the economy would not grow so fast. at noon today, alexandria ocasio-cortez and senator bernie sanders will release their plan to raise money from banks and

credit card companies. whatever they have in mind, you will end up paying. that is inescapable reality here. more stuff from the government has to be paid for and the bill will be laid on all of us. bottom line, they win, you pay. the third hour of "varney & company" is about to begin. our economy is now the hottest anywhere on earth and it's the envy of the world. every time a foreign leader, a president, a prime minister, a king, a queen, a dictator, we got some of them, too, every time they come into the office, they say congratulations on what you've done for this economy, the hottest on earth. stuart: there you have it. there's the president, raucous

rally, touting the economy as the number one game in town. he's back in d.c. and later this morning will be talking about ending surprise medical billing. we can all get behind that. you can bet when that happens, you will be seeing it live on your screen. first, though, want reaction to my editorial. cassie smedley, rnc deputy communications director, is with me now. like it or not, taxing the rich, spreading the wealth, that is a popular campaign slogan. how are you going to fight that? >> to borrow a phrase, these big government tax and spend policies, pretty soon you will run out of other people's money, to the point of your editorial there. the further argument is why, why would anyone vote for a big government tax and spend liberal when president trump's free market limited government public/private partnership approach has been working. you saw in that sound bite there and the proof is in the result. the gdp growth, record low

unemployment, the wage increases. this is working i think president trump is excited to get on the stage opposite any democrat that gets to run against him to make that case to the american people. stuart: they are going to say look, you take it off them and give it to me, i'll vote for it. it's a form of buying votes. i think you'll agree that that is difficult to counter. >> well, it's not difficult to counter when you talk to people about the results. that's one thing we do as the republican national committee and that president trump does so well is to go into communities, talk with voters and say how are you feeling, and people are saying m feeling pri'm feeling . stuart: i have consistently heard from african-americans why doesn't he come to me, why doesn't he come to our area and tell us what he's going to do? so far, i don't think he has. does he have plans to go directly to the black community? >> i think you are seeing that in the results. he has been there. his administration with opportunity zones, with going in and inviting them to the white house, you have seen all kinds of wonderful conversations that

have taken place about how the results of this administration are impacting all americans, regardless of where you live or what you look like. stuart: okay. we have ben carson, the man in charge of these opportunity zones, he's on the show a bit later. maybe he will pound the table and get the message out there. cassie, thank you very much for joining us. i'm very sorry it's so short but we've got a huge news day. specifically this. look at the markets. now we're down 413 points. we have been downhill since we opened up 90 minutes ago. down 407 as we speak. big tech, i'm sure, is taking it on the chin. yes, it is. look at those percentage declines. 2% down for apple, 2% down for amazon, 1%, 1%, 1%, facebook, alphabet, microsoft. when you start talking percentages, you know you've got a selloff. how about the financials. what are they doing today? well, we have a -- no, wea mixe. all on the downside.

heather zumaraga back with us. all right, heather, where is this market going? we are heading south at the moment because of china trade. tell me where we go next week. >> well, it depends on if we get a trade deal. i think the next two days in washington meeting with chinese vice premier are crucial turning points for the market, higher or lower. stuart: hold on a second. if we impose these tariffs at 12:01 a.m. friday morning, if we do that, and it's only about 13 hours away, if we do that, does the market go down tomorrow morning? >> markets go down. if we impose tariffs and start a trade war or perhaps some would argue another trade war with china, the two largest economies in the country, the -- in the world -- the markets will go down, stuart. stuart: if we don't resolve it in a week or two weeks or a month, do we go down some more? >> we would go down some more. i think the best outcome is that

china is in washington today, the vice premier is meeting with president trump and the trade team, and they are going to hopefully hash out some of these details and the best outcome would be that there was a misunderstanding or perhaps delay the tariffs so that the tariffs aren't implemented on friday, where the u.s. is going to increase tariffs from 10% to 25% on $200 billion worth of goods and china is saying that they will not succumb to pressure and they will retaliate. stuart: i have 20 seconds. if we get any kind of deal, a handshake, a smile, if we get that, do we go straight up? >> a handshake or a smile is always a positive sign. i think we need to get a draft together. we had a 150 page draft that was marked up by the chinese. some of the u.s. core issues were deleted. we need to address i.p. theft, forced joint venture and currency manipulation with a smile and handshake and yes, markets will go up. stuart: we'll see what happens. thank you very much indeed. big day. we appreciate you being here. thanks a lot. take a look at disney.

they had a pretty good, i would say very good earnings report. revenue up but all eyes were on their streaming service. disney plus. the company is adding blockbuster "avengers: endgame" to the service by the end of this year. in other words, it will be a very strong streaming service. coming up, we are talking to the ceo of roku. is there something they are putting on their streaming device? we will tell you in a moment. sorry, we are also talking to "wall street journal" guy, dan henninger. he says it's going to be trump versus biden in 2020. but biden has a huge following in the black community. can the president win enough of the black votes to win in 2020? very soon we will hear from the president himself, taking on surprise medical bills. stay with us. third hour of "varney" here we go.

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stuart: disney, actually i really want to talk disney plus, the streaming platform. that could cause a headache for netflix. not only because of the $6.99 a month charge for the disney plus deal but because these movies, put them on your screen, some of the biggest blockbusters of the year, will exclusively be on disney plus. come on, deirdre. deirdre: i will go with the third one. i feel like i'm on a game show. "end game" is on track to be the most profitable movie ever, ever, ever, can't overstate that enough. that is going to be on disney plus as of december 11th. that was almost the first thing that ceo bob iger said out of the gate last night on the call. very excited. you could hear it in his voice. that's one month after disney plus launches. but to your point, disney has to

take on amazon. they have to take on netflix. disney offering this really good price, $6.99, the most basic netflix price is $8.99. disney will have to spend a ton of money, we already know, bob iger specifically said disney plus will basically break even after five years. so this is a lot of investment. they will spend about $500 million developing additional original content, in addition to a lot of what you already saw. stuart: spending really big. deirdre: they are spending big but netflix is spending billions, not millions, billions, "b" like boy, up to $12 or $14 billion depending what analyst you speak with. don't forget, apple comes online and all the traditional players also have streaming services coming online. listen, disney will have a fight of its life but everybody knows if you love disney, you love disney. they have the "star wars" and super hero franchises. it's a bet on the brand. stuart: and bob iger as well. deirdre, thank you.

i want to bring in our next guest immediately. come in, anthony wood, ceo of roku. disney plus, are you going to have it on your boxes? >> well, their launch event recently, they did announce it would be on roku. it's an exciting new service. stuart: that's real good news for you guys. >> yeah. you know, the shift to streaming is really accelerating. people are cutting the cord more. all these big new services, it's really driving our business and i think it's great for consumers. they have a lot more choice now. stuart: okay. all these fancy tvs that i see, got one myself, they've got the streaming apps built into them. i don't think they need the roku box. that's becoming the norm. is that worrying you? >> no. actually, it's the fastest growing way that roku distributes our platform is licensing the tv reference design. in fact, in smart tvs in the united states, rokus just became

last quarter the number one streaming os in the market. now if you buy a smart tv today in the united states, one out of three of those tvs are roku tvs. we are now the number one streaming os in the country. we just passed samsung. stuart: are you the number one. but if you want to stream you come through roku, that's your claim? >> if you want -- if you buy a tv today, and most of them connect to the internet, the most likely scenario is that that tv is a roku tv. we are the number one os for television today. of course, our streaming players as well. stuart: we have been following your stock and i'm looking at it right now, up $14. $79 a share. up 22%. look, you've had great earnings. the value of your stock, as i understand it, has doubled just since january of this year. i'm asking you what are you doing right? my answer would have to be you've got to be adding a lot of subscribers. is that true? >> well, obviously we had a

great quarter but fundamentally, the shift to streaming is accelerating. more people are cutting the cord than ever before. there's a bunch of new services coming out. big companies are really embracing streaming. roku's os just became the number one streaming platform in the country for smart tvs. so this is driving our business. it's a massive secular trend. we have the most popular streaming os in the country. stuart: i've got nothing to add to that whatsoever. i think you taught me a great deal about streaming which i'm not really familiar with, or roku. anthony wood, you have an extraordinary company on your hands and you are doing really well. we love success on this program. welcome to the show. glad to have you with us. thank you, sir. >> thank you. stuart: great commercial i just gave. can i have a roku box? will you plug it in for me, too? we've got to check bitcoin. touching right at $6,000.

actually, it was over $6,000 earlier. first time since early november, i think, that bitcoin has been -- ashley: is this, you know, money's going into treasuries, maybe people are going into bitcoin. interesting move. deirdre: more and more of these platforms are offering it. fidelity, robin hood. it's becoming more mainstream. stuart: all right. $5900 is the price on bitcoin now. i'm not going to say we're coming back, couple of points, maybe. we were down 400, now down 376. that's still about 1.5%. we are waiting for the president. he's going to speak about something close to my heart, surprise medical billing. he's going to talk about that shortly. when he speaks, you will hear it. check this out. this scene was brought to life by an animator. okay. nothing fantastic about that. however, the animator is a high school student, a youngster. we love success, as we said.

you will hear from him next. ♪

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stuart: fox holding its first investor day since becoming a standalone company. the stock is up 3.25%. it's announced a semiannual dividend and is pivoting to live. those are the headlines there. the stock is up. parent company of this network. we have a lot of news today. i want to bring you a success story. a high school freshman who is also a professional animator on the national stage. get this. this young man is self-taught. sam shin is with us. first of all, sam, i've got video on the left-hand side of the screen. did you make that? can you see it? did you make it? >> yes, i did. i can't see it but -- stuart: you made it. are you self-taught? >> yes, i am. stuart: how did you get into it? >> i got into it first when i was around 7 years old. i used to watch a lot of lego stop motion animations on youtube. since they were so easily recreatable i decided to give it a shot. often i would make animations that were over 1400 still

pictures on just a laptop web cam. it was pretty excruciating but it did the job for then. and then the lego movie came out. initially i thought that that was stop motion, too, but when i figured out it was cgi, i needed to know everything about it because it absolutely blew me away. when i started taking animation seriously instead of just doing it as a side hobby, we decided to go into oregon virtual academy because of the flexible schedule which allowed me to pursue my career while getting an education at the same time. stuart: are you planning to go to college? do you need to go to college? >> yeah, i am, actually. i would really like to go to the school of visual arts. stuart: i'm sorry, this is a financial program so i'm going to ask a very typical stuart varney question. do you make much money? >> yeah, enough. stuart: what's that? >> it depends on like how much i get paid per scene. it depends on the length or the complexity of it.

it can vary around probably like $150 to $500. stuart: for just one scene? and how long does it take you to make one scene? >> one scene is usually around three minutes long, like three to five, maybe. that takes around two and a half weeks. stuart: sam, that's a very good hourly and weekly rate. that's really cool stuff. i wish we had more time. will you come back on the show and explain more about what you're doing and how you're doing it, please? >> sure. stuart: done. see you shortly. sam shin, everyone. success story for young guy. we like that. thank you very much, sam. now, i want to move on to, you know these opportunity zones? big success. they help disadvantaged areas. going well, apparently. so why don't they get any good press? because they don't. i bet you have never heard about it. ben carson, the man in charge of opportunity zones, is on this show next. we are also talking to dan henninger, "wall street journal" guy, about how president trump could take on biden in 2020.

and of course, all of this while we wait for the president to talk about those surprise medical bills. he's about to speak. you'll hear it.

stuart: i'm going to tell you this again. we are waiting for president trump to address the issue of surprise medical billing. he will very shortly. you will see it very shortly. promise. check the big board. down again. now we're down more than 400 points, 429, to be precise. there's only two dow winners. chevron and i think that looks like pfizer to me. yeah. there are another 28 in the red on the downside. breaking, happening now, the federal communications commission voting unanimously to deny china mobile's application to provide telecom service in america. big deal. the fcc chief says this would not be in the public's interest. got it. more news from d.c. the department of justice has confirmed they are investigating the clinton campaign and the

dnc. do we have anything about that? ashley: that campaign funded dossier and how it was used to secure the original fisa warrant against carter page, who apparently according to fbi documents, they believe was a full-blown russian agent. the question is the material they used, they also believe christopher steele, the former british intelligence officer, was a credible source that put this dossier together that allowed them to apply for this surveillance, electronic surveillance on carter page. and the renewals. stuart: no wonder the democrats are angry at william barr. ashley: there's a lot of questions to be answered. oh, yes. stuart: good stuff. thank you. our next guest has -- every thursday this man has a piece in the "wall street journal." today it's called "so it's trump versus biden in 2020," question mark. dan henninger wrote it. deputy editorial page, "wall street journal." you think it's going to be joe, not bernie, why? >> well, i wouldn't say

absolutely it's going to be joe, but look, after what happened, biden just announced and the polling has started and among democrats, biden leads with 40% would prefer him as the candidate, with bernie sanders coming in at 19%, then you've got kamala harris down there at 8% and maybe elizabeth warren at 7%. absolutely fascinating. the media had given us to believe this was going to be the year of the woman or the top of the ticket had to reflect inclusion and diversity. democratic voters are going thank you for the information but we'll take plain vanilla joe biden. stuart: we haven't got to the primaries yet. that will make a difference. >> it will end the debate. the other people will carpet-bomb in those debates in the way that all the others carpet-bombed donald trump and elevated him. it was take him down and he just kept rising. i think probably something like that is going to happen with biden, if he doesn't screw it up. stuart: joe biden has to

maintain the loyalty of black voters in large, large numbers. can he do it and how does he do it? >> well, he's doing it by raising the issue of charlottesville and linking donald trump to white supremacists. i tell you, i'm arguing in this column that if they're going to run joe biden to pull back the white blue collar voters trump stole from them in 2016, donald trump should run right at the black democratic constituency with appeals to vote for him. why? because he's done something democratic presidents haven't done. he's created real jobs and real income for black adults and black teenagers. secondly, you just had this thing with the naacp three chapters in california broke with the headquarters and said we support school charters for black children. i think trump should align himself with those dissidents and speak directly to black parents in the way only he can, say you understand that the

public schools are ruining your children, and you know they're ruining your children. i think trump can make real inroads with the black vote if he began to appeal to it. stuart: if donald trump, president trump, were to get say 12%, 13% of the black vote, i think he only got 8% in 2016, if he gets 12%, he wins. >> absolutely right. the rule of thumb is if a republican ever got up say 15% of the black vote, the democrats cannot win anymore. stuart: does policy matter? pretty good question. is it just hate trump, contempt for trump, trump's a bad guy, that's all it is? what about policy? >> i think biden himself is trying to argue that donald trump is an aberration. talking about charlottesville, he says it's the worst thing that has ever happened in my experience in american political history. so he's trying to make trump out as something that is just outside the american political experience.

i think the president probably should say yeah, i am an aberration, i'm the first president to produce jobs at the level we're seeing now in the economy. he really ought to run on the strong economy. which compared to the eight years with the obama-biden years, is an aberration. stuart: do you think socialism is, i mean, we are told that socialism is nowadays more popular. is it really? look, i can't believe this. i'm a refugee from socialism. i'm loathe to believe that it's popular, but is it? >> you know, my colleague joseph sternberg at the editorial page is about to publish a book on the millenials and it's mainly about what happened to millenials during the years of the great recession, after 2009 forward, and people coming into the work force then really got hit hard by the great recession. their job prospects were really damaged and suppressed. i think it's a reaction to that experience that has made them

open to the idea of socialism because they think the baby boomers have theirs, they've got medicare, they have medicaid, they have social security payments coming. we got nothing. i think that's why they have become sort of sympathetic to what bernie sanders is selling them. but i'm not so sure that's true anymore. again, you talk constantly about the effects of the economy the past two years, extraordinary upsurge in job opportunities at all income levels and it has to include millenials. i think some of those attitudes could be changing. you know, president trump when he goes out and does these rallies now, he does talk about the economy and the effects it has produced. stuart: he's running on it. >> i think that will have results for him. ashley: don't you think the fact biden is so far ahead in these initial polls show that there's a silent minority that is loudly shouting for socialism but really mainstream is more moderate as per biden? that's why biden is so far

ahead. stuart: that has to be the reason. >> that has to be the reason. stuart: stay there. i want more from you later. i want to talk about these opportunity zones. that's a government program which i believe is very successful, i'm told it is, it moves money into disadvantaged areas. the man in charge of that program is hud secretary ben carson who joins us now. mr. secretary, you have been on this program before and you have told us that you have moved jobs and money into these disadvantaged areas, but my point is, i never hear about it. you don't get any press at all. how do you explain that? >> because it's good news. nobody wants to talk about good news. but the fact of the matter is these opportunity zones present an opportunity for people who have experienced tremendous economic advantages to now put that into these places that have traditionally been neglected and there's no reason that they wouldn't continue to be neglected except that now we have this long-term incentive to

invest in them, make sure they're successful. stuart: can you quantify this success? can you say how many jobs were created? how much money flowed in? can you do that? >> well, we expect at least $100 billion in the first year and some of the opportunity funds have already had commitments of $24 billion, and it's coming in tremendously. i've been to a number of places and looked at the development that's going on there. i was in st. louis recently, an old abandoned foundry, there was a lot of heavy equipment, they are building affordable housing, they are building grocery areas. all of these things are multiplying very quickly. another area that i went to in mississippi, they were building housing for the people who are coming in there for the jobs. so it's a domino effect that's occurring.

interestingly enough, we are finding ways to incentivize peop people. the president's opportunity and revitalization council. the fha is announcing today that we have a new incentive package coming out which will encourage multi-family owners to invest in developments within the opportunity zones because they will get a reduction in their application fees, also known as the exam fees, which will be substantial. stuart: mr. secretary, here's something contentious and i think it will get a lot of media coverage. your department's looking into ways of getting illegal immigrants out of public housing. i believe you're looking at that, it is contentious. how are you going to do it? >> well, first of all, we have a long list of people. we can only serve right now one in four of the people who are looking for assistance from the government.

i'm talking about legitimate american citizens. so obviously we want to get those people taken care of. and we also want to abide by the laws. now, if we want to have laws that say we take care of people who are not american citizens, then legislators need to get together and they need to go ahead and make that law. but until that time, we need to abide by the laws of the land. stuart: mr. secretary, ben carson, thanks for joining us, sir. always good to have you on. >> thank you. stuart: come tell us the good news again, okay? thank you very much indeed. now i'm telling thu agayou the president is going to make an announcement shortly on surprise medical billing. when he makes that statement you will hear it and that's a promise. listen to this. this is back in january. listen to it. >> patients should know that's the real price and what's going on with the real prices of

procedures, because they don't know. they go in, they have a procedure and then all of a sudden, they can't afford it. they had no idea it was so bad. procedures, treatments and medicines before they receive them. this is a big shock to a lot of people. patients and others. we don't want that happening. that's what we want to do with health care so that patients will know exactly what the cost is, what the quality is.

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to buying gold, absolutely free. if you have bought gold in the past, or you would like to learn more about why physical gold should be an important part of your portfolio, simply call to receive the complete guide to buying gold, filled with new and exclusive information including the official precious metals guidebook, the diversification strategy guidebook, and perfecting gold ownership, which will provide you important, never seen before facts and information you should know about making any gold, silver or platinum purchase. - with over a quarter of a million clients worldwide, we're one of the most dependable gold distributors in america, give us a call today to get started. stuart: all right. left-hand side of your screen, that's the podium. the president will be speaking shortly. he's addressing the issue of surprise medical expenses. they come at you way after the treatments. ashley: months and months. stuart: it happened to me. deirdre: it happened to everybody. there is also such a range.

in one hospital, something is $500. at another hospital you just add another zero. it could be anything in between. stuart: it keeps on coming at you. never seems to end. when you go in, you don't know what the cost is going to be. no clue. even at the end you have no clue. deirdre: they are trying a website to put standard codes but the problem is they actually went out and spoke to doctors and doctors took a look at the codes and even they had to look some up. for anyone who hasn't gone to med school it's hard to compare. stuart: what a mess. okay. left-hand side of your screen. now, let's go back to the market. put that on the right. obliterate me, put the dow back on there. we are down 400. why such a sharp selloff? we have been open for two hours and 15 minutes and the answer is very simple. it's china trade. as of midnight tonight, we are scheduled to put 25% tariffs on $200 billion worth of chinese goods. that is kind of an ultimatum. that's the point where these

tariffs really start to bite. ashley: question is who blinks, stu. who blinks here. i think this is a tactic taken right to the very brink of midnight, if not sooner, and we may get an announcement of we decided to delay the implementation of this tariff hike because we believe that now the two sides are starting to see more eye-to-eye again. that's perhaps the strategy here. whether it works or not. stuart: that's the most optimistic case. ashley: yes. stuart: come midnight. by the way, before midnight the chinese vice premier is holding a dinner tonight with our top trade guy, that was lighthizer. they hold this dinner tonight. what happens after that dinner is going to be key. deirdre: the sticking point really where both sides were supposed to be 90% of the way there, was that the chinese laws were meant to change to not authorize theft when a u.s. company is based in china, and from what our sources told me, we were 90% of the way there, both sides, then apparently china walked that back and

that's when president trump said okay, forget it, then last night we heard him say at the rally china broke the deal. ashley: the big issue was the chinese did not like legally binding language. they wanted to say trust us, we are going to put this in place. it was not good enough for this administration. they want legally binding language. stuart: i've got to say, dan henninger, sorry, i'm interrupt you there, it would seem awfully difficult to go back to where we were and just have some kind of agreement where china does this, this and this, we export a whole bunch more to china. seems awfully difficult to get to that point. >> i don't think we are going to go back to where we were. i mean, we are going to go back to donald trump's tariffs on chinese goods. the question would be will the chinese retaliate. they say they will. they could single out a company like apple for retaliation. everything you guys have been saying is true, but we are talking about the two sides negotiating. i think the problem is that on the chinese side, there are two sides. there are the reformers who want

to go forward with a deal like this to force structural changes inside the chinese economy, but lately, apparently, the status quo over there has been pressing hard saying we don't want to go that far. xi jinping is in the middle of this and he's been kind of wavering between the hard liners and the reformers, and our side says we don't know exactly what we're dealing with. are we going to deal with the side that's committed to reform and will go forward, and that's why, as ash said, the enforcement provisions are so important. because our side being uncertain about what they're dealing with, really want enforcement provisions in place that will make the deal real. stuart: crunch time right now. >> big-time. stuart: we are waiting for the president to speak on those unexpected medical bills. we are watching the market which is way down. more on everything, after this.

stuart: we're waiting for a lot of things. the president to talk about surprise medical bills, the stock market, how far down's it going to go. one more thing. at 12:00 noon, we are due to get the announcement from alexandria ocasio-cortez and senator bernie sanders. they are going to reveal a proposal on credit cards and banks. the only thing we know about that proposal thus far, with ten minutes to go, is that they want to cap the interest rates that credit cards can charge at 15%.

ashley: yeah. she says it's one of those things that sounds radical today but we have these laws in half of the states in america, she says it's really the banks trying to push the limit on how much they can put on the backs of working people. stuart: however, i'm looking at the credit card companies, visa and mastercard in particular, they are both down just over 1.3%, 1.7%. that's pretty much in line with the overall market decline. ashley: agreed. stuart: it could well be the market doesn't believe a cap on interest rates suggested by aoc and mr. sanders will have any chance of going through. deirdre: especially if it's in half the states already, as she claims it is, is that really a big change for these businesses. no. one thing i'm watching on the dow is saying the next three years, earnings and sales going to be much lower than wall street expected. that's one of the stocks really dragging down the average. stuart: that hurt you every time. you know, dan, to you, this thing on the banks and credit cards, it's another vote buyer. it's another way to make you

popular with people who feel they have been left out of the boom. it's a pretty good deal -- i mean, pretty good line, isn't it? >> i guess it's a pretty good line but if i'm, say, a republican donor, i'm thinking about shipping money into the republican party to avoid that kind of policy. i mean, bernie sanders and aoc completely disconnected from the real economy with the professionals they have suggested. stuart: how does it feel? i can make a really good argument, i can say how does it feel, you paying 20%, 25% interest on a piece of plastic, i'm going to fix that for you. you shouldn't pay a dime over 15%. that's enough for these people, isn't it? they are greedy. do they need more than 15%? look how they're doing you down. how am i doing? i would get elected. i would. i would get elected for that. >> you might. ashley: stu, stu, stu, stu. >> medicare for all? stuart: yes, go for it. >> it relates to this announcement we're waiting for from the president on transparency in medical pricing. that is the solution we do need to get consumers for health care

involved rather than saying health care should simply be free. very appealing to people who are affected by things like surprise medical billing. they think it's too complicated, let's just let the federal government run it all. stuart: here's another thing we're waiting for. we have to wait until tomorrow, but that is uber. tomorrow morning, well, some point tomorrow, you are going to get the chance to buy into shares of uber, if that's what you want to do. it occurs to me this is a particularly bad time -- ashley: not a good week. doesn't make any profits. deirdre: that's the point. lyft, its smaller competitor, has already gone public, it's been public for a few weeks and is casting a very long shadow. to ashley's point, both companies have high sales and no profits. so investors have already shown to be somewhat lukewarm in the reception of lyft. i don't know if that changes for uber. stuart: lyft is at 54. in a down market it's up a buck. ashley: interesting.

stuart: it went out at $72, now it's $54 in three weeks. that's a decline. as you say, that casts a shadow over uber. what's their price tomorrow? $47, roughly? that's what they're thinking? ashley: $47, $48. deirdre: the only thing uber, i will say sort of as an advocate for that that's slightly different than lyft, they seem to have been better about building out businesses. uber eats has been particularly successful for them. they have tried to do a little more octopus approach, a few more arms and a few more businesses. that may serve them better tomorrow. stuart: we will bring you up to speed on what we're waiting for. left-hand side of the screen, waiting for the president. ashley: people standing in a room. stuart: right-hand side of the screen, the stock market going down as we speak but coming back just a tiny fraction. uber ipo is tomorrow. yeah, we are waiting for that. 12:00 noon, we are waiting for bernie sanders and aoc on banks and credit cards. we wait and we wait and we wait. but we have patience. we'll be back.

. .

stuart: president was due to talk about the surprise medical expenses. he is not in yet. maybe he is dealing with this. this morning the aircraft carrier uss lincoln went through the suez canal on its way to the gulf or proximity of the gulf. on the left-hand side of the screen there is four capable nuclear bombers on the way to the middle east. i wonder if the president has on back of his mind. what is iran going to do and what will we do if iran does something? that is in the news background today. ashley: north korea firing off short-range missiles. >> icbm. stuart: we didn't mention that. that is linked to the china trade war. overnight, here is what happened. the north koreans fired off two missiles out into the pacific.

within ten minutes america had fired of a much bigger missile. a intercontinental ballistic missile, into the california. stuart: we have bigger button. stuart: dent toll me they're not linked. north korea is china's client state. i have to assume china says hey we're in trouble with the trade talks. they might impose sanctions any minute. let's do something. i'm speculating wildly here but i do see a connection between the two. am i way out of left centerfield, dan? >> not at all. that is indeed weighing on the markets. you have three significant national security issues up and running. so suddenly foreign policy is imposing itself on the news in this presidency. stuart: that's right. it's a big deal. have i missed anything? what else? we're also -- oh, yes, the other news of the morning. ashley: yes? stuart: i don't think this merits that much of a mention when you have the dow down 360 and we're waiting for the president but people in denver

have approved the legalization, not, decriminalization of magic mushrooms. does "the wall street journal" have a position on that, dan henninger? >> we serve them for lunch every other day. you can tell by the way i'm talking. has louis again nick mushrooms. stuart: i thought i would throw that in. some things we're waiting for, neil cavuto amongst them. we're waiting for president on surprise medical bills. waiting or aoc and bernie sanders on banks and credit cards. waiting for the uber ipo comes out tomorrow. waiting for the imposition of tariffs 12:01. ashley: a lot of waiting. >> i have patience? ashley: really? stuart: tom petty said, the waiting is the hardest part ♪. don't mean to make light of it. very important stuff going on.

i do want to thank ashley, deirdre, my colleague and friend dan heninger being with me through this waiting period. type's up for me. we have seven seconds to go. we're waiting though. we'll wait out these seven seconds. three, two, neil, it yours. neil: thank you very, very much, stuart. we are waiting to hear from the president of the united states and 12 hours from now whether the tariffs we threatened go into effect. that is when they are supposed to go into effect. 25% tariffs, upwards $200 billion worth of goods. edward lawrence here to monitor where things stand. hey, edward. reporter: hey, neil. yeah the talks start late this afternoon. sources with the chinese say they're prepared to work through dinner related to this. that puts pressure on the timeline you talked about on raising the tariffs. if the chinese want to avoid raising those tariffs. treasury secretary steve mnuchin told me only way the chinese can avoid the tariffs going up if they put back the concessions they pulled