>> thank you very much for all your reporting on the russia hoax. can you imagine if the president had his current white house team and this current ag and this current white house counsel at the very beginning of his administration? could have been a whole different beginning to his presidency. maria: true. thank you for that. great show. thank you, dagen in new york. have a great day. right to "varney & company." stuart, take it away. stuart: good morning, maria. good morning, everyone. there is now a clear frontrunner for the democrat nomination. it's joe biden. a fox poll puts him 18 points ahead of bernie sanders, 35-17. senator warren comes in with 9%. the other, what is it, 20 candidates, they trail badly. fortunately for him, perhaps, the poll was taken before bill de blasio jumped into the deal. he was not well received. the first debates, by the way, are about five weeks away. that's it. here it comes. today, luckin goes public. you get your chance to buy stock in a very fast-growing coffee chain. if you do buy in, your dollars

are going to a chinese company that's trying to take down the american company starbucks. luckin will raise $570 million today and that money goes to doubling the number of its coffee shops in china just in the next year. tesla is in the news. the news is bad. elon musk has a new and severe cost-cutting directive. he's got a cash crunch. investors really don't like it. down another 3% this morning, $221 is the pre-market stock price as of right now. down again. the market, well, that's down this friday morning. this is all about china trade. no talks scheduled. there is a report that china's canceled an order for 3,000 tons of pork from american producers. not good. separately, the administration's delaying by six months tariffs on european cars. the dow is going to be down about 200 points. all right, everyone. here we go. friday morning, "varney & company" is about to begin.

the assumption that a lot of people are not able to pursue the so-called american dream, i'm an example. i started when i was very poor. i grew up taking biscuits to school for lunch with no meat so don't talk to me about people coming to school who don't have food and this and that. it's available if they go out and work for it like everybody else works for it. stuart: you should have seen that. it was really good stuff. herman cain there, self-made guy, growing up poor, that was what he talked about at the fox business town hall on capitalism versus socialism yesterday, and he's joining us right now. herman, come on back in again. great to see you again. look, i think the capitalists won the debate yesterday. >> i know that they did. i want to commend you because i

have given you a new nickname. you are not pc, political correct, but you are one of the most passionate capitalists i ever met, and i love it. i sensed that there were too many people in that audience who believe in socialism, that's okay, they want to have a balanced audience. too many people believe in socialism because they believe that their lives will be better with more government instead of less government, and i believe that the people representing capitalism made very convincing arguments on behalf of less government instead of more government. stuart: pc stu. i'll take it and run with it. thank you very much indeed. i do want to ask you, there's a related note here. the president has come out with his new immigration plan. it's basically all about merit-based immigration. bringing the best and the brightest into the country. i'm sure that with your background, herman, you very much approve of this. am i right? >> you are correct.

i do approve of it. not only because of my background, but also because the president is trying to force the democrats to do something. what he's put on the table doesn't address all of the issues and that was the democrats' immediate pushback. one of the pushbacks was well, it didn't talk about dreamers. well, the last proposal that the president put on the table, it did have a proposal for dreamers and the democrats still rejected it. so yes, i love the fact that he is showing leadership by putting something definitive on the table, and he's taking it to the democrats. stuart: stay right there. we will get back to you in a moment. you will hear more from the capitalism versus socialism event in our 11:00 hour this morning. i will give you my personal take on the debate. that's 11:00 eastern today. now, big story. starbucks rival in china, luckin coffee, is going public on the nasdaq today. joining us, market watcher jonathan hoenig. jonathan, this is a chinese

company using american money to compete with an american company, starbucks, in china. do you like luckin? would you buy the stock? >> i think i would avoid luckin and not even because it's chinese, stuart, although that is a risk, especially given the trade turmoil in china, given some of the political intervention in that regard. you need to avoid this ipo. partially because it's chinese but primarily, simply because of the market of ipos lately. pinterest is going to be down sharply at the open. we have seen uber, we have seen lyft. all these very high profile, sexy, if you will, ipos, they failed. beyond meat has been about the only one that's really done well. avoid in a weak market, avoid these very high tech still unprofitable stocks. consumers, investors seem to be looking for profitable companies, more interested companies. this is not one. i think it's one you want to avoid on the open and on the ipo. stuart: talk about tesla. their chief, elon musk, is taking quote, a hardcore approach to cutting costs.

do you think this is end game for the company? the stock is down, what, about 221 this morning. >> remember when it was funding assured at $420 a share? it's $200 a share lower than that? elon is struggling for one specific reason, in my opinion. he's getting a margin call. elon musk has borrowed hundreds of millions of dollars against his personal tesla holdings as the stock goes down, he has to either put up more of that money or sell the stock. i think that's going to be a real pressure. in the past, not so much recently but certainly in the early 2000s, we saw this over and over again, very public ceos borrowing heavily against their stock. this is another one, just like some of the other high profile unicorns, i think you will want to avoid right now. just when you think it can't go any lower, it does. tesla is one of those names. stuart: you think it's going below $200 a share? >> i think yes, i think it is going below $200 a share. stuart, it's not too far to get

there. this is a weak stock to avoid. take it off the menu this morning. stuart: okay, i will. jonathan hoenig, thank you very much indeed. see you later. >> have a great weekend. stuart: here's herman cain. can't get rid of this guy. always want him on the show. there he is. wait a second. serious stuff here. you say african americans have been brainwashed by the media to hate trump. explain yourself. >> many of them only look at the liberal stations which we know report 92% negative news about president trump and his administration. abc, cbs, nbc, msnbc, they all do. therefore, 50% of the african americans have been brainwashed by those negative messages. on the other hand, i meet a lot of black people and african americans who are not brainwashed by the perception, but understand the facts that what this president is doing is helping all people, including blacks and hispanics and other

groups, and so they have been brainwashed to believe in trump-hate and i happen to believe, but there are a lot of people who are swing voters who are not buying the perception. stuart: now, in 2016, mr. trump got 8%, i think, of the black vote. what do you think he gets in 2020? because if he gets, say, 12% or 15%, he wins the deal. >> i believe he's going to probably hit about 20%. that would be monumental for a presidential candidate who happens to be republican. the reason that i feel that is because of the feedback that i get from people that i see every day, i see when i travel, they are secretly moving more toward the policies that this president and his administration are promoting and passing, and they are just not talking about it. why? because brainwashing and intimidation. stuart: herman cain, great stuff. see you again soon, i hope. come back to new york. it was fun shaking your hand

yesterday. see you later. >> thank you, mr. pc stuart. stuart: whoa. i'll never live that one down. thank you very much indeed. thank you. we are going to be down about 200 points, yeah, it's friday morning. i could put this down to trade tensions. that's it. nothing specific has happened but it's ongoing tension. no talks scheduled. down she goes, about 200 points. let's see. the nasdaq is down as well. oh, look at this. this is pre-market big tech, all of them down. facebook's down two bucks. alphabet down, microsoft is down, amazon's down 17. apple is down three bucks, $186 on apple. big tech, taking it on the chin this morning. now this. illegals are not just coming across the -- into the country through the southern border. apprehensions are up 42% on the northern border. mexicans, central americans trying to get here through canada. more on that story coming up. a new fox poll shows biden the clear frontrunner among the

democrats. in our next hour, we talk to lara trump, senior adviser to the 2020 campaign. i want to know, is she disappointed mr. trump probably will not be running against a socialist? and william barr says he's putting his thumb on the scale as -- no, i don't think he said that. he's looking for people who did put their thumb on the scale as he investigates the origins of the russia probe. who should be worried about this? some people presumably. "varney & company" just getting started. (ding) hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪

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stuart: attorney general william barr wants to find out how the russia probe got started. roll tape. >> what things don't hang together? >> some of the explanations of what occurred. >> why does that matter? >> because i think people have to find out what the government was doing during that period. if we're worried about foreign influence, for the very same reason, we should be worried about whether government

officials abused their power and put their thumb on the scale. stuart: now, the president is tweeting about it this morning. here it is. my campaign for president was conclusively spied on. nothing like this has ever happened in american politics. a really bad situation. treason means long jail sentences and this was treason. well. joining us, ronna romney mcdaniel, republican national committee chair. wouldn't you say that treason is just a tad strong? >> i think the president is justified in saying this is treasonous. i mean, to think about our government spying on his campaign, putting individuals in his campaign to go spy on them, fisa warrants all based on a fake dossier that was unsubstantiated, paid for by hillary clinton and the dnc. this is something we have to get to the bottom of. our democrat presidential administration should not have been spying on a republican candidate for president. there was a really simple solution, stuart. the obama administration could have said you know what,

candidate trump, we want to talk to you about russian interference. we think there are bad actors trying to infiltrate your campaign. will you work with us to make sure that doesn't happen. why didn't they do that? stuart: does the president believe there was a conspiracy to overturn the election and to give it to hillary in the first place? >> i think there was a conspiracy to work against donald trump. we don't know what they did with the other campaigns but absolutely, and that conspiracy has continued for two years, with this russian hoax based on a fake dossier. stuart: there should be some senior democrats from the previous administration who are very worried this morning? >> they should be. i think that's part of the reason why they are attacking attorney general barr so vocally because they know he will get to the bottom of it. they didn't expect it so now they are trying to discredit somebody they have held in high regard. they are trying to do everything they can to diminish him because he's saying now we are going to look under the hood of what the government was doing during this election and get to the bottom of what the department of justice was doing, what the obama administration did. i do not believe the fbi would say let's go spy on a campaign without taking it to the highest

ranks of the obama administration. stuart: is there a sense of relief this morning in the white house? >> a sense of relief? stuart: after this interview. >> yeah, i think the president is thrilled with attorney general barr. he's done a great job. he's held to his guns. he has said we are going to get to the bottom of this. i think the american people want to figure out what happened. stuart: i sense you are a little disappointed this morning. i know you are. when you read that fox poll which shows joe biden with an 18-point lead over bernie sanders. you were hoping to go up against bernie sanders. weren't you? >> i'll take them all. but you know what, they are all equally bad, right? joe biden, look at bob gates this weekend. his own secretary of defense said joe biden for four decades has been wrong on national security and foreign policy. that's his own secretary of defense. that's a pretty poor recommendation from bob gates on joe biden. stuart: biden doesn't worry you in the slightest? >> i think it's a great record to run against. the stagnant obama/biden

economy, the failures on foreign policy. joe biden is the guy who said let's not go after osama bin lad laden. he just said china is not a competitor. give me a break. when we look at his record, when people really start to dial into joe biden, what he stands for, what he's accomplished, and the failures of the obama/biden eight years, they will look at trump and say jobs are coming back, wages are up, our country is booming, we are going to stick with this guy. stuart: the expression sleepy joe is mild, isn't it? you think he will get a little more harsh? >> i think it's sleepy creepy joe now. he added creepy in there. look, i think he's clueless. joe biden is clueless. i think it's been proven especially on the foreign policy front. when you look at syria, you look at china, him saying they're not competition, recently he just said that. even chuck schumer, even chuck schumer agrees with what the president is doing on china. stuart: how about that. >> i know. stuart: ronna, thank you very much. appreciate it always. thank you. now this.

grumpy cat, that's the internet sensation launched thousands of memes, the the cat is dead. passed, i should say, at the age of 7. at the time of its passing, the cat, it's a she, had 1.5 million twitter followers, 2.4 million on instagram, 8.5 million on facebook. she also had an endorsement deal with friskies cat food. according to reports, the cat earned millions of dollars. ashley: i got to interview grumpy once. stuart: did you? ashley: yes. didn't say a lot. stuart: you serious? ashley: brought her right on the set. stuart: where was this? ashley: fox business. stuart: we had grumpy cat on the set? ashley: we certainly did. career highlight. stuart: how do we go from the passing of grumpy cat to the stock market? straight at it. the dow industrials will open this friday morning on the downside. we are looking at a loss of about 192, 200 points. christmas may be seven

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looks like these tariffs will have an impact. lauren simonetti is with us on toys, i take it? lauren: toy prices will go up if these taxes take effect, they will go up. 9 of 10 of the toys sold in the u.s. are made in china. 9 in 10 of the toy industry here in the u.s. is a small business. a small business can't just rearrange its supply chain. stuart: i was going to ask you which toys will be affected. the answer is all of them? >> basically all of the toys. stuart: i take it the toy manufacturers are lobbying -- lauren: big-time. big-time. stuart: saying knock off the tariffs, right? lauren: 700,000 jobs in this industry, american jobs, many of them good jobs. remember last year the story was about toys, where do you go for a toy because it was the first christmas without toys "r" us. this is potentially the first christmas with higher toy prices. it's like a one-two punch for the industry. stuart: most toy prices would go up, what, 10%? lauren: they're not saying exactly but the hike would be 25% in terms of the tariffs. you can't just absorb that.

toys are expensive. i go to the dollar store sometimes to get dollar toys for my kids. stuart: you would pay, wouldn't you? your kid wants it, you pay. lauren: if we are talking about christmas when this thing is finally, when it takes effect, i think parents will say i have $200 to spend on joseph and maybe he's just going to get two toys this year. stuart: okay. lauren: the budget stays the same. you know what i'm saying. the budget stays the same, you just get less for your money. stuart: i'm paying. i will pay. i have all these grandchildren. i will pay. ashley: can i give you my list? lauren: take mine, too. stuart: i have to get to something serious here. samsung has its first 5g phone available to verizon customers in america. is that genuinely 5g? lauren: genuine, you can buy that for me for christmas. $1300 from samsung. only available for verizon customers. it's the first 5g phone that doesn't need an attachment. the motorola v-3 was the first

but you need to buy accessories to make 5g work. 5g is ten times faster than 4g. it will be available in 20 cities by the end of 2019. stuart: i would pay for it if i could turn the thing on. lauren: remember your password? stuart: quickly to the market, we open it, very quickly, five minutes' time, we will be down 180 on the dow, about 75 down on the nasdaq. that's about 1% down. tech's taking it on the chin. back after this. i can't tell you who i am or what i witnessed, but i can tell you liberty mutual customized my car insurance so i only pay for what i need. oh no, no, no, no, no, no, no... only pay for what you need. liberty. liberty. liberty. liberty. ♪ metastatic breast cancer is relentless, but i was relentless first. relentless about learning the first song we ever danced to. about teaching him to put others first. about helping her raise her first child. and when i was first diagnosed, my choice was everyday verzenio.

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stuart: another big ipo coming up today. luckin coffee. sometimes described as the starbucks of china. shares start trading sometime this morning. don't have a precise time for you. how about the price? susan: well, they priced at the top end of the price range, $17 a share. they also upped the number of shares on offer as well. that's because of the huge amount of investor interest. there was temptation to even go beyond the initial price range as well. this is a company that's growing really fast. they are going to surpass starbucks in terms of the number of stores by the end of this year. they are ambitious. they are undercutting in pricing by 25%. but you also have to keep in mind like other tech unicorns that have come to market, their losses quadrupled in the first quarter. you have to prove they can make money in the future. stuart: same old ipo story.

ashley: this is only in china, right? only in china, nowhere else. stuart: 2300 stores right now in china. they want to double that in 12 months. interesting stuff. here we go. friday morning, it is now 9:30 eastern time. the market is open. where we going here? we are down 167. we are down 188 in a matter of seconds. down 191. a sea of red on the left-hand side of the screen. so far, every single dow stock that's open has opened lower. we've got a loss of 200 points for the dow industrials. show me the s&p, please. where is that this morning? it's down about the same percentage amount, .75%. sharp loss. the nasdaq composite, i'm expecting a real loss there. we got it. down .87%. that is 70 points down for the nasdaq. here's the auto makers. the white house made it official, announcing up to a six-month delay on the auto tariffs decision.

despite that, in a generally down market, the auto makers are down. how about the ten-year treasury yield? that's the key benchmark interest rates. down, the yield at 2.37%. who's with me on a friday morning? john lonski, eddie gabor, susan li and ashley webster. start with baidu, the chinese google. why start with a chinese company right at the start of the opening of america's market? answer, baidu is way, way down today. big stock decline, 14% down, for a huge company. why is it down so much? >> it is down because of a revenue miss, net revenue miss reflects the slowest year over year increase by china's retail sales in more than 15 years. stuart: which means their economy is hurting more than ours. >> oh, most definitely. it's scary because china wants consumer spending to pick up, to take over for their reliance on

exports. susan: first loss for the company since 2005. you know, we have fang here in america. in china, it's bat, baidu, alibaba and tencent. they have been spending on artificial intelligence, on self-driving, so maybe costs have gone ahead of profits. that's a big concern. stuart: big drop today, 14%. that's huge for a company that size. i have to move on. there's lots of companies in the news. tesla, their chief elon musk focusing on cost cutting. they are losing money. they are burning through cash like you wouldn't believe. eddie, look at the stock, it's below $220. right at $220. is this, i hate to be dramatic here, is that the beginning of the end? >> i don't know if it's the end but we have been talking about the amount of cash they have been burning. elon has been putting band-aids over it. bottom line, this is an indication that poor execution, their cash burn is going to be a major problem. one thing that's a big risk for the stock, there's going to be a lot of short sellers coming in

and adding additional pressure to this stock. there's a lot left on the downside, in my opinion in the near term. ashley: 2.2 billion in cash. elon musk himself saying that gives us about ten months at the rate we're going through the cash burning it up. susan: that's on top of raising 2.7 billion in fresh capital as well recently. they need to get some sales going. stuart: we started with baidu way down, tesla, way down, $220 a share. let's move on to amazon. they are down -- are they? amazon is investing hundreds of millions of dollars in a food delivery company. a british-based company. ashley: it's a big company. anywhere you go in the streets of london, you see bikes delivering food. they are everywhere. huge. stuart: amazon is putting -- sorry, yeah, amazon is putting -- susan: it's part of a consortium investing about half a billion dollars into deliveroo. you want to compare it to uber eats, uber eats is a $10 billion

company on its own. stuart: on its own? susan: on its own. uber eats has a global footprint whereas deliveroo is uk-focused. >> consumers are lazy. they want everything brought to them. they are getting older. over the next ten years, the number of americans 65 and older growing by 1.7 million per year. those 60 to 64 years of age, 300,000. older population, they want delivery. stuart: i don't want delivery. >> you're a young man. stuart: yeah, right. okay. now we are four, four and a half minutes in, we opened down 200. now we are down 140. i'm not going to say we're coming back but we're not down as much as we were. the price of oil this morning is where? $63 a barrel. the price of gold this morning is where? $1300 an ounce? no, $1282. show me bitcoin. i believe it's falling out of bed. yes, it is. it's down $850 per coin, $7,100. just the other day it was above

$8,000. i don't know why it's down so much. i really don't. something internal going on there. deere, as in the tractor company, lowered its profit and its sales forecast, down 3.5%. the chip maker nvidia, that came out with a fairly rosy forecast. now, this was a superstar stock last year, went zooming up, came down. this morning it's up 30 cents at $160 a share. how about another company that's taking it on the chin, pinterest. it gave a not so rosy revenue forecast. why is it, do you have any idea, why is pinterest having such a hard time? >> one of the biggest problems is the earnings report they just came out with. they had a 30% increase in expenses. when you run a business you know you have to keep a close eye on expenses and debt. if they don't get a handle on it, that could become a problem. their business model i believe is very very strong. i think they will have a very strong consumer base. they just need to manage the business side of it. i think long-term could

potentially reward investors. susan: losses three times more than what analysts expected but it's a disappointment when the stock is still around 60% higher than the ipo price at $19 a share? compare that to what uber is doing. i would say it's actually been a success. >> here's the thing. 30% increase, a lost it was from adding additional employees. they may be banking on future growth. short term pain potentially for long term gain. stuart: okay. picture this, everybody. just picture this. you're stuck in traffic in los angeles and you get a burger and a soda delivered right to your car in traffic. you roll down your window, it's there. all possible thanks to burger king. what have you got? ashley: this is interesting. you have to be within 1.8 miles of a burger king establishment when you make the order. you have to be stuck in traffic for at least 30 minutes which could get a little dicey. what if the traffic jam frees up and you are trying to go extra slow so you can get your burger delivered. they will send someone out on a motorbike. they know where you are through gps. they will come and serve you a whopper.

they tried it in mexico city, because that's the most congested city in the world. it was fairly successful, trial run in l.a. having lived in l.a., i would have loved a whopper at some point. stuart: we did say delivery is everything. susan: they say deliveries increased 63% when they introduced the traffic jam whopper. stuart: really? susan: yeah. but are you that hungry in traffic you need to eat inside your car? stuart: it's kind of a gimmick but burger king got its name on the show, did it not? we discussed them for awhile. we just advertised them. check the markets, please. we are now down 150 points. by just about any measure, the economy, in my opinion, is really going strong. there is the occasional voice warning about recession. john lonski is here. are you still saying we are a long, long, long way from any kind of downturn? >> i believe we are. most definitely. i see no signs of overheating. wages are growing more rapidly, that's good, but even better is the fact unit labor costs are

barely growing at all year over year. in general, we don't find that companies are facing a lot of margin pressures because of more expensive labor. stuart: look, we are 20 months away from an election, presidential election. are we going to get a serious downturn in those 20 months? the answer is no? >> i think not. look at that ten-year treasury yield. if that remains under 2.4% for an entire month, that means the ten-year treasury yield is equal to less than the federal funds rate. the fed will be cutting rates a lot more earlier than people think. stuart: is that why, eddie, you have always been fairly bullish? you have always been someone who says the market's going up, the market's going up. we have had blips here and there but you have always said the market's going up. >> i use a common sense bull approach. there have been times i have been bearish. you have to focus on the fundamentals. why i have been so bullish the last three years is to your point, rates have been low, okay. rates will compete with the market. the ten-year treasury under 3% is very, very bullish for

equities. we've got a strong labor market, okay. i think the one thing that could derail the economy because i do feel we have a chance to continue this expansion as well, but remember, we have an election next year, okay? there could be some potential changes there. if you change tax structure, if you change regulation, that could change some of the things. i think predicting out longer than a year is just too big of a risk right now. i think it's very strong right now for '19. there is no recession in sight this year or the beginning of next. stuart: i can buy a variety of big name, reliable mainstream companies that will pay me a dividend of 5%. i know it. yet if i go into the government bond market, all i get is 2.3%. that's the comparison you are talking about. >> that's right. risk/reward. no one wants to get 2% over ten years. to your point. when you get a dividend from a company that will give you appreciation as well. stuart: at & t pays about 5.5%, actually 6%. >> one last point. that is that the consumer still has upside spending potential.

right now we have retail sales growing at a rate less than the rate of growth for wage and salary income. that's actually a good thing. stuart: dividend yield on at & t, i'm just reliably informed, 6.4%. on at & t. susan: wow. stuart: is that dividend safe? i'm assuming, at & t, i would assume. susan: apple is 5% cash flow as well, in terms of dividend buy-backs. >> with low interest rates, it could spur housing in the second half of this year. so in the fourth quarter, there was a scare in housing because the ten-year went over 3.25%. so 30-year mortgages jumped to 5%. now they are back into the 4s and lower. consumers will come back into the housing market. that could be a catalyst for the second half of this year we did not see in the fourth quarter last year. stuart: what a way to open up on friday morning. i know you want to get in here. >> the only weakness may be auto sales. there we have tesla, of course. stuart: young people don't buy

cars these days. susan: true. stuart: thank you very much, eddie and john. thank you, one and all. look at this. we opened ten minutes ago, down 200. now we're down 115. i have no clue where we're going to end today. next case. the meatless burger trend shows no sign of slowing down. white castle got in on it with its impossible slider. in our 11:00 hour, i'm going to eat one. yes, on camera live television. not all of it. a bite, possibly. that's it. we have a real capitalist success story for you. one man took over his father's new jersey bakery, turned it into a tourist attraction. it became a reality tv series. next hour, we will talk to the cake boss. the man himself on this program. luckin coffee officially opens for trading on the nasdaq today. next, the company's top financial guy. i want to know, if this is all

about using american money to expand in china. i'll ask him. and what's with this cream cheese coffee, for heaven's sake? is that for real? i'm not trying that. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

stuart: we have come back a bit, down 114 now, compared to a near 200 point loss ten minutes ago. that is a comeback. now this. the coffee chain luckin goes public today. it's a chinese company which wants to use american money to compete with starbucks, an american company, in china. joining us now is luckin coffee's chief financial officer and chief strategy officer, to boot. welcome to the program. good to have you with us. >> thank you so much for having me. thank you. stuart: am i right in saying that at the moment in china,

you've got 2,300 stores and you want to double that in the next 12 months. is that accurate? >> yes. i think if you look at the numbers as of q1, close to 2400 stores, we are growing relatively quickly and i think we have communicated that we want to get to that target by the end of this year. that's correct. stuart: so by the end of this year. so literally eight months, you are going to build 2400 stores, right? >> yeah, that's right. i think when you think about our model, how we are different from, for example, your traditional retailer, first of all, the store footprint we have is relatively small. that's what we do to save rental expenses and also by using technology, we've got a very good assessment of where we can find the demand. it's a demand-driven business and i think by the end of this year based on the demand that we are seeing, we will get quite close to the number. susan: your losses have quadrupled in the first quarter and your model, according to some, it's about price discounting.

can you keep this up, this kind of cash burn? >> yeah, how we look at it is as follows. i think what we're doing is trying to disrupt the industry by using technology, different approach and location and really sort of try to bring the per cup cost down. i think we have been very successful in bringing that down. the way we look at it is we set our target price around $16 t$1 over time. at these levels we can be profitable. when you think of the subsidies from the listing price, we think the price should be good enough to drive really the mass market demand. when you look at the cost base, you see that going down very quickly. susan: you are underpricing starbucks by 25% in the market and some would say that given the u.s./china trade concerns, luckin might be benefiting from a nationalized fervor in china, meaning anti-american, so they will go to luckin instead of starbucks. you think that's true? >> we are very focused on our own model. i think the trade war for us is something we will monitor but

it's not something that will drive the success of our model. stuart: chinese nationalism would drive your model. in a trade fight with america, you are going up against an american coffee champion, starbucks, i would surely suggest that nationalism could drive your business. >> well, that would be a tail wind i think, but the way we look at our model is we look at the fundamentals of the model and i think with the positioning we have, high quality, high affordability, high convenience, that's really what's going to drive our success. stuart: but you can't ignore politics here. you can't ignore that you are raising american money, american dollars, to use against an american champion, starbucks, in china, so you can expand and beat them. there's a political angle to this. >> well, i think when you look at sort of you were listed on the u.s. exchange, what we have done is also getting a very sort of global sort of investor base, including several wealth funds that have global pockets so i think we are trying to get to a place where we are very well

capitalized which we reached today in order to be able to grow and continue our success we have seen in the last 18 months and really build on that success. stuart: i do have to ask this question. i have heard that you serve coffee with cream cheese in china. is that accurate? >> well, actually it's not coffee. it's actually a tea product. it's a very popular product in china where you have effectively fruit juice with a small portion of cream cheese on top of it, and it's probably one of the more popular products in china today. susan: try the grapefruit cheese jasmine tea, one of their premier drinks. >> it's great. stuart: perhaps you could arrange for delivery. >> no problem. i think we can make it happen. stuart: i'll try it on camera. i really would. i would do that. good luck with the ipo today. thank you very much indeed, sir. >> appreciate your time. thank you. stuart: left-hand side of the screen, everyone, that is president trump, of course, just exiting i think marine one. he left new york city. he spent the night in trump

tower last night. a bit unusual. he doesn't spend much time in the city. but he's left and is going down to washington, d.c. that's where he's going. okay. all right. check the dow 30, please. we are still down about 100 points but that's not as bad as it was at the opening bell. most of the dow, like 24 of them, 23 of them, are in the red, they're down. now this. apprehensions up 42% at our northern border. northern border. looks like mexicans, central americans trying to get to using canada to get to this country. what a story. we're on it next.

stuart: central americans trying to enter america from canada. look at that. on your screen. apprehensions up 42% on our northern border. come on in, tom homan, former acting i.c.e. director. is this the new front line of illegal immigration? is it that big a deal, tom? >> it's really not, stuart. when you look at the actual numbers on the northern border, we are talking about increase of 42%. that equals 313. so it's just a few hundred increase. you got to remember, arrests on the northern border in a year,

they arrest on the southern border in a day and a half. there's something you need to keep your eye on because mexico has very lax immigration laws so a mexican national can actually enter canada with no visa at all. so you got to keep your eye on this ball. as we secure this southern border, as this president is successful with barriers and immigration plan, we need to keep an eye on that because we will have an increase coming in from that country or it will become a problem. stuart: thanks for that context. that is very very important. the president's new immigration plan includes a proposal to allow public donations to pay for the wall. it occurs to me that that could backfire. if you don't bring in enough money, the president looks bad. what do you think? >> well, look, i think it's an option that the taxpayers can have. look, you can donate to presidential campaigns and other campaigns, and last year, when this all started, when he was having trouble getting congress to help him fund the border

barrier, we had groups like the national sheriffs association, sheriffs.org and a crowdfunding site, fundthewall.com. we have several attempts right now. the last had over -- close to $20 million in a few weeks. i think they built a system where the average, you know, american can get in there and make a donation, i think it's going to help. i think it helps alleviate people's frustration with those that really secure the border. congress is not doing it or is doing it very small piecemeal. why not give an option, make a donation to the wall. i think it makes perfect sense. whatever money they collect, use it toward the wall. i don't see a downside in this at all. stuart: i just want to update the southern border here. how many per day apprehensions? give me -- can you give me the latest number? >> they are running between 3,000 and 4,000 depending on the traffic flow that day. again, i think as i said

earlier, they arrest on the southern border in one day what they arrest in the northern border -- or day and a half. i think the numbers will continue to escalate unfortunately, because right now the world knows the border is in chaos. last time i looked at an intelligence report you had over 40 countries represented coming to the united states at our southern border. so cuba, european countries, african countries, everybody in the world knows the border is in chaos. everybody knows we got a national emergency on the border. everybody but the democratic leadership who don't want to take any action. it's going to get worse until we take action and congress fixes those loopholes. it's unfortunate that congress is ignoring this. stuart: one of these days i'm going to interview you and you will give me some good news on the situation at the southern border improving. i wait for that day. we'll see if it happens. tom homan, everyone. see you soon. thank you very much. now then, capitalism versus socialism. the week coming to an end here on fbn. there's been a lot of lively debate. at 11:00 you will hear my

personal take on that town hall and why i think socialism is such a failure. bill de blasio getting a very rough reception after announcing his bid for the presidency. he's getting laughed out of court. we will deal with that, next. . .

>> i can't believe it. i just heard the worst mayor of the history of the new york city, without question the worst mayor in the united states is now running for president. it will never happen. i'm pretty good at predicting things like that. i would be very surprised to see him in there for a long period. it is not going to happen. if you like high taxes and if you like crime you can vote for him. but most people are not into that. so i wish him luck but really he would be better off if you get back to new york city and did your job for the little time you have left. good luck. do well. stuart: you can see the president shall we say got the ball rolling. i have to say reaction from

everybody else came as a surprise to me. i thought the rabble-rouserring socialist would get a little support when he declared for the presidency. surely the progressive would rally around one of their champions. no. the de blasio candidacy has been laugh the out of court. "new york times." de blasio can't even troll trump. the writer in "the times," his honor is often awol. spends 10 day as month at office in city hall. this is the progressive "new york times" going after the progressive new york mayor with biting humor. he isn't even a competent troll says "the new york times" writer. "wall street journal" beginnings its coverage with this. politics these days is a form of entertainment. for the comedy portion of the democratic nomination fight we have mayor bill de blasio. they point out though, there is nothing funny about de blasio's wasting $800 million on the failed renewal of city schools or the may's war on successful

charter schools, not to mention a chronic homeless problem. the mayor is going to iowa today. he jumped right out on the campaign trail. what kind of crowds will he draw? i don't know. but cnn couldn't resist reporting last time he was in des moines, the crowd would have fit into a subway car back home. tv screens, this is locally in new york. tv screens filled with the mayor dropping staten island chuck on groundhog day. chuck later died. i would be remiss if i didn't show you the cover of "the new york post." get a big lol for the de blasio candidacy right there. however, before we completely dismiss his honor. let us not forget donald trump was met with similar ridicule when he came down the go aheaden escalator four years ago. here is something you're not supposed to say in television, only time will tell.

"varney & company," hour two, starts now. ♪ stuart: let's talk money, shall we? the big board shows a loss of more than 100 point. did we get a release on the consumer sentiment, michigan survey. susan: we're checking that right now. stuart: it was higher in may than april. ashley: that is good news. stuart: i don't think the number is actually important. the point is consumer confidence went up in the month of may in the latest reading. we're down 100 points right there. john door, tractor guys, the outlook is not good. trade war with china is hurting business. deere 4% down there. look at baidu, the google of china, posted their first loss

in 15 years. their online ad business taking a hit from china's economic slowdown. that slowdown is a result of the trade loss. huge loss for baidu. 15%. back to my editorial, new york mayor bill de blasio candidacy being laughed at. look who is with me, in the flesh, lawrence jones, fox news contributor. >> how are you doing, sir? stuart: donald trump, then candidate donald trump he was not taken seriously. >> are you making a comparison from a successful businessman to a failing mayor? i know the president of the united states is watching this and is furious right now. to be serious though, donald trump came into even though the media didn't take him seriously, there was a big support for donald trump. this guy can't even win his own city. over 70% of new yorkers said that he should not run for president? i mean look at the road. i did a package on sean hannity

last night that showed what the people in new york felt about this guy. can't fix homelessness. people peeing and pooping everywhere on the streets. taxes. meatless monday for the kids where the kids don't even like you? how can you win over parents. stuart: i think that was a good opening. >> thank you. stuart: what not done. you stay there, scott shellady you come in. president called de blasio the worst mayor in america. you're a chicago guy. has he overlooked mayor rahm emanuel? >> wouldn't emanuel be a great running mate. physical situation in the city and state it is horrible. we're bankrupt. people are fleeing the state like their hair is on fire. when i read the head line i literally was either talking about the mayor of chicago rahm emanuel. i spent 2 1/2 years with mayor

sadiq kahn in london is just as bad. we have trio of people trying to bring down their cities. stuart: let's get serious. this is serious program, whether you like it or not. trade war in china, how is it affecting a cull rat prices. prices soybeans an corn have they been depressed since the trade war started in? >> yes they have. it is not good. there is farming crisis out there not being put on televisions for rest of america to know. they're having a difficult time. they were having a difficult time before they started for tariffs. we have abundance of crop. we still have abundance of soybean we're not moving through the system. we're producing more of them. you throw in the fact we're having issue with china. it is not good at all. so they're having a difficult time. you put out fake meat, trying to put ranchers out of business. not a good time to put out.

it will be a while before we come through on the other side. stuart: do you think the president can maintain political unity? will the farmers still back him if the thing pose on and on and on? >> right now he still has a pretty decent bank of political goodwill capital that will not be never ending. seeing the results from baidu today, i think his bank of political capital will be better than how long the chinese economy can last. stuart: scott shellady, thanks as always for joining us. see you soon. got it. lawrence jones sitting here. the college board, s.a.t. people they want to take a student's socioeconomic background into consideration. they call it the adversity store. you in line with this. >> editor of chief in campus reform we've been telling you guys about the college campuses. we told you when the racial shun lawsuit, the sued harvard university for discrimination,

so many asians students coming here, we'll start turning them away, there was a big many pro. this is identity politics gone wrong. this is insulting from a lot of americans come from rough background like you or i able to make it on our own merits. this will affect the educational system. they are going to lot of schools that are not ready to qualify. universities will get the money. raising the tuition. they will get their check but student will fail. stuart: do you think it just strictly academic performance, that is it? nothing else taken into consideration? >> stuart, to be fair there is essay component, where you get to tell your life story. there is other ways you can get scholarships for special programs as well, if you specialize in that field of study already. you already have athlete that are getting in based on their academic performance because the school makes lots of money.

there are other avenues as well. look i'm not saying the test should be the only thing, but what i am saying a score that you get, adversity score nobody knows what is composed of, tell as you little bit, but the student never know what their score is. only administrators get to see the score. anything done in secret like that is shady. stuart: i have to ask you this. do you oppose all forms of affirmative action? >> i do personally because i don't need any help. and quite frankly, if you don't want me to attend your school based on the color of my skin or something like that, then i don't want to go any way. college is way too expensive. if you don't want me to come there, i don't want to give you my money. quite frankly i think it is time for this country to have conversation for college. all the kids going to college, with these degrees, can't find a job. inherit all the debt they will never pay back. time to talk about trade schools and other jobs where they can actually, you know, pay for things for their family, not go into debt before they even start their first job.

that is the conversation america needs to be having. they won't have it in order to do you will have to really crack down on all those educators on the university level and that means congress will have to take a stand. stuart: put it there, son. >> yes, sir. stuart: i'm with you today. >> go to campusreform.org. stuart: you got that. >> yes, sir. stuart: lawrence jones, everyone. we call those braces. >> braces. i don't do clip ons. little boys do clip ons. stuart: you're a fashion plate, man. you really are. is that a nike swoosh? >> that is the swoosh. stuart: do they pay you for that? >> i'm waiting for my check. stuart: thank you, lawrence. check the big board. we're back a little bit. we're down 116 point. that is the could you as of right now -- dow. big guest coming up, buddy, the cake boss, capitalist success story. they started a small business in jersey.

he has grown it into a cake empire. ashley: is he bringing some? stuart: that is condition of coming on the show. videogames, we cover them a lot. here is why. last year americans spent record amount of money on those games. we're talking, wait for it, tens of billions of dollars. we'll have the correct high number for you. president trump asked by a reporter, are we going to war with iran? you will hear the president's response to that question after this. ♪ am car. it turns out, they want me to start next month. she can stay with you to finish her senior year. things will be tight but, we can make this work. ♪ now... grandpa, what about your dream car?

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stuart: we're down 130 points on the dow industrials. almost exactly half a percentage point down. speaking of going down, look at this. tesla's stock is down 4%. elon musk focusing on dramatic cost cutting. the company is burning through

cash. he needs to lower his costs. the stock is down 10 bucks. 217 on tesla right now. time to listen to what the president had to say on war with iran. roll tape. >> mr. president, are we going to war with iran? >> hope not. stuart: hope not. the reporter said, are we going to war with iran? hope not was the response. joining us doug with the cato institute, senior fellow there, foreign policy guy. this may seem like a strange question, doug, do you think regime change in iran is imminent? >> no. i would love to see it. we would all love to see a democratic regime, tolerant one, one in sync with our values. it is hard to get rid of the if you have regimes, more pressure you put on them, our friends are not usually ones you benefit. that is the challenge, rallying

around the worst-armed elements. i don't expect to see change there anytime soon? stuart: you're looking for containment, no regime change, limited damage outside of iran by their own people, that right. >> i think that's right. in the short term you hope for change there. young population, pro-american. a lot of people don't like this religious rule. that is the best way it becomes unpopular. once they try it, they find out they don't like it. meantime we want to make sure there is no damage outside, let them try to south things out. stuart: hold on a second, doug, i want to bring everybody up to speed on a "the wall street journal" report which says the new tension with iran started because they thought we were about to attack. ashley: based on the premise of a whole miss anding, iran, believed they were going to be attacked by the u.s. and therefore took countermeasures. started building up their forces, moving things around. u.s. see what is going on, they

believe iran is preparing for attack. that is why we saw the big military build-up in the gulf. mike pompeo says i don't think this is business as usual with iran. i think this is cause for greater concern. we had a tweet from the president on this fake news media hurting our country with highly inaccurate on coverage of iran. at least iran doesn't know what to think, which at this point may well be a good thing. stuart: what is your reaction, doug? may be a misunderstanding, i don't know, maybe not. what is your reaction. >> it is very dangerous to have those kind of misunderstandings. henry kissinger even pay knoweds have enemies. they see u.s. military assets moving. no surprised they're a bit

paranoid. we want to make sure we don't start a war by mistake. you want to contain them but not trigger a war. we would win but consequences would be far worse than iraq. something we don't want to get into. stuart: keep them on their toes. aircraft carrier battle group, b-52 bombers, threat of troops keeps them on their toes. >> i want to keep them on their toes so they won't do anything against us. i don't want this keep them on their toes they figure they strike first. if they go hurting you don't know what you might trigger. you have to be careful with that. you to make sure they understand we don't want a war but don't do anything stupid. stuart: good way to sum it up. doug ban do you, thank you very much. >> happy to be on. stuart: latest "fox news poll" shows joe biden clear democratic front-runner in the 2020 race. he is even beating president trump in head-to-head matchup. how concerned is lara trump? she is on the show, she will

answer the question. china's lucky coffee goes public today. wait until you hear what the cfo says about chinese nationalism helping his business. uber and lyft drivers, are they working together to raise the cost after trip? becaming -- gaming the system to set surge prices? that is what some experts say might be happening. we'll explain it. ♪

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there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. stuart: we are a financial program but occasionally we digress, for example, now. live shot from arlington, massachusetts,. yes that is a bear stuck in a tree. we are watching this one.

we'll try to figure out what the outcome could be, but that bear looks pretty content. susan: i was going to say. doesn't look concerned. why should we be? stuart: happy fellow. check the big board. is there any connection between a bear in the tree and the stock market coming back? maybe there is. we're down 50 points. that's it. ashley: bulls and bears. stuart: it is the bears. less than an hour ago we were down 200. we're down 50 points. i will not make any comment about bulls and bears. okay. interesting story on uber and lyft. some experts say the drivers could game the system by a drive up on surge prices. susan, how would that work? >> surge pricing happens when there is more demand than supply. how it works according to wharton business school, they collude with each other and en masse log out of the app. no drivers are in the area. they would avoid a geographic

area. you can't find rides americans prices go up. there was a case in 2018 courts reported that basically drivers were gaming the system by colluding to collect cancellation fees, gatwick, heathrow favorite transit points in europe. they would basically never pick up passengers. talked to uber and lyft about the articles. journal did, there is no collusion. that is not what we're seeing. however if you look at uber pricing the stock is back up to $42. stuart: it is. >> if you bought at 35, you would have made money. stuart: you got in, did you? i would buy at 37, 38. did something else in the afternoon. didn't buy the stock. now at 42. but i still want to buy that company. i do. i want to buy into that technology. ashley: right. stuart: i want to buy as well. maybe at some point i will and you will know about it. ashley: we cannot wait. stuart: this is a story which we really followed very closely.

a lot of people don't know what is going on here. record spending on videogames in america last year, the number please? ashley: $43.4 billion. stuart: you got to be kidding me? ashley: massive amount of money. that is up 20% from 2017. up 85% from 2015. it was just 20% from last year. most american adults, survey of 4,000 people, most american adults play videogames on their phones. 60% on a console. that is remarkable, 164 million adults play video games in the united states. 50% of the population. stuart: i asked you for the big number in america. ashley: yes. stuart: was that 43 billion just in america? ashley: yes. susan: kids play on pcs that is downloadable games as well? ashley: yes. susan: weapons that you pay for? ashley: not sure the toys. the games what the survey. stuart: 43 billion? ashley: enormous amount of money, where have i been?

susan: they pack stadiums. you know it popular. stuart: that is our story. good number. venezuelans as you know fleeing the country. we'll talk to someone who goes to the venezuela border and feeds those starving people trying to escape the socialist paradise of maduro. i want to know, how bad is it for those people? we got a report from the border. attorney general barr says it is time to investigate the investigators. he wants to know if people in our government spied on the trump campaign? president trump not mincing words. he says yes, we were spied on. he calls it treason. lara trump reacts to that next. ♪

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♪ stuart: i like this one. i do. kind of dreamy. all you need is love. susan: do you like this one too? >> i absolutely do. stuart: we'll get to her lately. >> i love the beatles. stuart: you can have the whole hour. hold on a second, item out of britain here. britain's socialist labour party leader, jeremy corbin. he pulled out of brexit talks with prime minister theresa may. a total mess, ashley. ashley: the whole thing is falling apart. stuart: when does theresa may leave office? ashley: that is the big question. she is under pressure from her own party to leave. probably the first week of june we'll find out what her plans are. she said she would leave after she gets deal through? ha. they are not agreed on by the

mps, alone being passed. there will have to be a change in leadership. those want the referendum again. strong opposition to that. boris johnson said i'm in. would love to lead the conservative party. this brexit a absolute disaster. stuart: i have a buck that says boris johnson is the next prime minister of britain. ashley: he is the bookie's favorite four to one. susan: i agree. who would be more interesting a prime minister boris or president trump? it is a tie. it would be a tie. susan: that's tough. stuart: they say he is the donald trump of england. ashley: they say what they think. stuart: only time will tell. i just said it. check the big board. we've come all the way back. we're down 200. now we're down 40. coming back nice. 25,800 is where we are. have a look at bitcoin. it was on a tear the past week. it is losing a lot of ground

today. down $745 a coin. you're back to 7184. the 2020 race, only 20 months away and the latest fox poll shows joe biden is the clear front-runner. he leads bernie sanders by 18 points, 35-17. and that poll found if the election were held today, joe biden leads president trump 49 to 38. bring in the aforementioned lara trump, who is a trump 2020 seep juror visor. you have got a nice smile on your face. >> thank thank you. stuart: however, that poll shows mr. trump losing i think 11 point. >> well i mean we always take polls with a grain of salt. obviously they did, they did -- stuart: they are not going your way? >> they have never gone the way of the president. i always think people are nervous to talk to a pollster about their support for this president. but they're okay to go into a voting booth and still in the box for donald trump. stuart: that was true in 2016. >> and not tell anybody.

i still think that remains true to this day. if nothing else, i always thought after the election people would calm down, you know what? i voted for donald trump. the media has gone so crazy, they're making people feel bad still supporting our president. stuart: you still can't admit who you sported for in 2016. you lose friends, relatives, et cetera,. >> crazy. stuart: wouldn't you like to see president trump go up against a real socialist? much easier to beat than joe biden so-called moderate? >> slightly terrifying a person who runs on socialism could get the nomination for the democrats but that is exactly where we are in this country. i think it would draw a very clear line a very drink line between donald trump and capitalist system that our country always run on and incredibly successful and this socialist system that would propose we end up possibly like venezuela. stuart: i asked everybody the same question. how come socialism made this comeback, when, clearly it doesn't work? venezuela, soviet union, parts

of europe are socialist. they're really not working. >> yeah. stuart: so why is it suddenly popular? have you got an answer? >> i wish i had a great answer. all i can figure is we have people like alexandria ocasio-cortez like bernie sanders who have become very popular with a young audience of people in this country. they haven't had the life experience to understand socialism, what it means, have ever seen it in practice. now fortunately, unfortunately for venezuela, but we do have venezuela to point to, this is very dangerous. this could happen in the united states of america. but i just think it is lack of information for the most part. stuart: it is so easy, isn't it? we'll give you free health care. we'll get free college, and the rich will pay. it's a very -- >> not how it works though. not how it works at all. in fact it would bankrupt our country. it would be detrimental to every citizen in the country. the people hurt the most are lower income workers. guess what, if you have a lot of

money, system implemented in america, you're leaving america. you will not stick around to see how bad it can get. people left holding the bag at end of the day are the middle and lower income earners. stuart: grieves me. i was a refugee from england. i left in the 1970s, it was plain awful. i was ref you gee. >> we took you in and we love you. stuart: let's get serious. what attorney general bill barr told fox news's bill hemmer about launching an investigation into spying on the trump campaign. roll tape, please. >> fact of the matter is bob mueller did not look at the government's activities. he was not going back an looking at the counterintelligence program. we have a number of investigations underway that touch upon it, the main one being the office of inspector general that is looking at the fisa warrant. stuart: so he is investigating the investigators and president

trump is tweeting about it this morning. i will give you the quote. my campaign for president was spied on. nothing like this has ever happened in american politics. a really bad situation. treason means long jail sentences and this was treason. lara, that is a very strong word, treason? >> he is 100% right. stuart: back it up. that is strong stuff. >> listen, you cannot imagine, put some of these candidates that we've seen running for the democrats in the same situation that our campaign is in now. let's reverse things. let's say that the trump administration spied on bernie sanders campaign. do you really think that the media would let them get away with it? do you think they would have had a free pass that happened so far? we are a country of rules and laws. by allowing something like this to go unchecked, it is incredibly dangerous for the future of our country. the president has very strong words because we have to address this we don't ever want to see this happen to any other american president.

stuart: fair enough. got one last one for you. you've seen the president's new immigration proposal i'm sure. >> yeah. stuart: part of that proposal he would accept public donations to build the wall. wait a second. that could backfire? >> it could. stuart: if you don't raise enough money if people are not willing to pony it up for the wall, there is a problem. >> there is gofundme page that raised $20 million, if i'm not mistaken that was not official thing. stuart: you need billions. >> you need a lot more than that but i think, when you look at what congress has done which is nothing to address this problem to fix this problem, the president is willing to look outside, listen what else can we do. how else can we fix this? how else can we move forward. stuart: i think you're having fun in this job. >> i have a friend dempsey who is your biggest fan who watches every show. he loves you. stuart: where is dempsey? >> dempsey is in washington, d.c. he is in the swamp. stuart: inside the beltway and he watches me? >> yes. stuart: i'm flattered. >> wanted you to know.

stuart: dempsey, you're all right. thank you very much for being with us. >> thank you. stuart: always a pleasure. just suppose i'm traveling in austria. ashley: yeah. stuart: i have not seen the script, i'm not sure what is coming up. suppose i'm traveling in austria, seeing sights in vienna. i realize i've lost my passport. where can i go for help? american passport? susan: i would imagine would go to the u.s. embassy. i mean, mcdonald's apparently you can go there to get your passport. stuart: what? susan: they're helping you with that? yes. stuart: i think i threw this at you. ashley: big mack and a passport. susan: big mac and a passport. they're allowing you to, we heard these stories of travelers, backpackers lose their passports across europe, whether stolen or lost. now you're able to collect it. stuart: is this serious? >> susan: yes. it's a different world.

stuart: it sure is. that is different. susan: this is unbelievable. stuart: this is unbelievable. since when can you get a new american passport in mcdonald's in vienna. outrageous. ashley: and a happy meal? susan: french fries to go. stuart: we'll move on. white castle, they make the sliders of course. you buy them by the case i'm told. you can now get them with fake meat. it is called the impossible slider. white castle's vice president is on the show next, next hour, i should say. tell us how they're selling. next an american capitalist success story, the "cake boss," buddy valastro. his family bought a bakery in hoboken anyone '60s. they turned it around. ashley: burgers an cake coming. stuart: in case you missed it, fox business hosted a socialism versus capitalism. i was fired up about it. susan: you were. stuart: problems with socialism

and the problems at the top hour of the wait until you see me in my prime. i have six kids and nine grandchildren and i'm not looking of anything of you. ♪ you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms including nasal congestion, which most pills don't. flonase helps block 6 key inflammatory substances. most pills only block one. flonase.

we're on the move. hey rick, all good? oh yeah, we're good. we're good. terminix. defenders of home. stuart: almost come all the way back to break even point. down 200 at opening bell. almost. we're down a near 20 points. we're at 25,838. that is the dow as of now. big ipo today, lucken coffee. that is china's competitor to starbucks. earlier this morning we talked to the cfo, chief financial officer of lucken. we asked him, sues and i were talking to him. we asked him about nationalism in china. would their stores in china,

benefit from nationalist feeling because they're going up against the american champion starbucks? what did he say. susan: he said there would be a tailwind. listen to it. this will help the company according to lot of investment managers. they priced at top end of the range. do we have the sound bite? stuart: no, we don't. he said chinese buyers in china will go to luck inch because they want to unseat starbucks. susan: you go to lucknin instead. they wanted to price above the range. given what happened a week ago with uber. because of disappointments on day one. market forces are with them as well. coming back from bigger losses. it should be interesting, they upped size of their offering. because there was so much demand. people wanted to share. stuart: luckin has 2300 stores

in china. they want to raise money here today. $570 million. use that money to expand in china. they're going to develop another 2300 stores in the next eight months, for heaven's sake. susan: right. stuart: how about that? that would be american dollars taken out of america, going to china, to fund the expansion after chinese coffee company to bash starbucks, the american champion. susan: but it is in their hometown. china. stuart: that's true. susan: playing at home. stuart: i thought i would raise the issue. susan: fair enough. stuart: a capitalist success story. our next guest took over his father's bakery, turned it into a cake empire. you know this. it even became the basis for a reality tv series. you know that one too. buddy valastro is with us. he is the "cake boss." sir, welcome to the program great to have you with us.

>> thank you. good morning, stuart. i'm a big fan of yours. i loveliesenning to you. stuart: now he tells me. you could anchor the show couple days if you told me that. you started out, bought the business in hoboken? is that true? take me through the story. >> yeah. so basically my dad came over from italy. he had nothing, he worked in a bakery. started at a pot washer at 13. by the time he was 26, mr. carlo, who owned the bakery, his son wanted to work for nasa. so he was going to be a rocket scientist. and he did. my dad said, sell me the bakery. he talked mr. carlo to given him the loan. he married my mom. they had the business. for, bought it in 1963. then they had, you know, five children. and we all came and were working in the business. i started when i was 11 or 12 years old. and my dad's dream was to build

a business where his whole family could work in. and he did. how did you get into television? how you turn into reality tv show? how did that happen? >> well, what happened was, i started, after my dad passed away i was 17 actually. i had to drop out of high school to take over the business. i started to really see that the old world bakery was getting, you know, destroyed by the supermarkets. you know. i came up with a theory saying, look, i'm going to make stuff that they can't make. they want to have the doughnuts for nickles and dimes, let them have it. you know how many thousands of doughnuts you have to make to make $1000? i said i'm going to make the cakes. i can do this artistic stuff. i taught myself how to do it. i started getting exposure. once i got exposure in magazines. then i started to do some television competition shows. then one day i'm standing in my bakery.

it is 2009, i get a phone call. they're like, hey, we're thinking of doing a show about cakes, what do you think? just follow me in my bakery. i have a big crazy italian family, 100-year-old business and i do outrageous cakes. it was the birth of "cake boss" in 2009. stuart: point one, you make a lot more money in television than you do baking cakes. point number two, you have a new season coming out soon. what's different about it? >> well, you know what? what's different is basically i'm always challenging myself in the cakes, right? so we have everything from a cake that spits fire like a fire-breathing dragon cake to a cake flavored with beef jerky. to a drive-in movie cake. really the dynamics of me, running my empire of, you know, 18 bakeries, three restaurant, thousands of employees.

my family and stuff like that, you know, doing, balancing, juggling all that. stuart: i want to say congratulations. i live in hoboken. you originated in hoboken. you've done far better than i have. you can come back anytime on this show anytime you look so you do not bring a cake flavored with beef jerky. is that clear, buddy? >> all right. stuart: you're a great guy. success story. we love that. >> you got it brother. thanks, my friend. take care. stuart: we almost made it into positive territory. ashley: almost. stuart: we were close. we're down 31. we'll take that. it is official, new york's mayor, bill de blasio, threw his hat into the race for the presidency. we'll talk to one of three republicans on the new york city council. there is only three out after large number. i'm going out there on a him and say, this guest is not happy about his honor's run for the white house. ♪ this is not a bed.

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stuart: it's official. new york city mayor bill de blasio, announced he is running for the election in 2020. here is what president trump

said about it, on twitter. here we go. bill de blasio is the worst mayor in the history of new york city. he won't last long. said a lot more than that too. joe borelli with us, new york city councilman, a republican. joe, before we go anywhere. there is only three republicans on the new york city council. how on people on the council all together, what is it 40? >> 51. 51. we're a small but stalwart bunch. stuart: president says he is the worst mayor in america. have ad it. i think you probably agree? >> look, not only do i agree, i would venture to assume a lot of democrats an progressives around the country would agree to the same thing. you had both the police union and black lives matter standing shoulder to shoulder as the mayor was on "good morning america" yesterday protesting him. i'm not sure what he is going to tell the people of des moines, iowa, whether he will promise to take away their steaks or ban their plastic bags or charge

more for property taxes or ruin their schools but i don't see anything he is going to say win being voters there or anywhere else in the midwest, for that matter. stuart: weren't you surprised just about everybody came out and ridiculed his candidacy? even "the new york times," their headline was, de blasio can't even troll trump? were you is little surprised at that? >> no, i mean. part of the job being the democratic nominee, i say this as a trump supporter is knocking the president and doing a good job of it. you saw from his rally inside of trump tower, just how bad he is at even landing a punch. this is a opportunity in trump tower that any other democratic nominee would be better able to capitalize. you saw protesters reminding the world howe bad of a mayor he is. this is not exactly plan a for the big launch to the white house. stuart: surely bill de blasio knows he will not be the democrat nominee. my question to you, why is he running? >> it is a good question.

he has always been a ideologue. he someone wants to change the country in my opinion a worst way, bring it further to the left. i think he is doing that for that reason. he has a job as mayor of new york city, he has never been the type of mayor that wanted to roll up his sleeves and talk about the managing of the city's snowstorms and police departments and things like that. this is so someone probably bored with the daily conundrums that the president of the night has to face. i'm surprised that you know, more people aren't see that for what it is. stuart: joe bore borelli not quite the lone republican in new york. we always appreciate it. >> thank you. stuart: i'm breaking away early to get to this. luckin company going public, indicating opening at $24 a share. it was supposed to be 17, was it? >> that was offer

stuart: if you're not familiar with luckin coffee, you may be soon, especially if you live in china. they are trying to beat starbucks in china. they want american money to do that. we are expecting luckin to open in our next hour, and you will see it. you will see it.

stuart: we do hope that you were able to watch the capitalism versus socialism special event on fox business. it was a lively discussion. it's what you can expect as capitalist trump goes up against socialist democrats in the 2020 election. here's a little taste. what are you laughing at, young man? i invested and i've now got a profitable tree farm, employs people in a very depressed area and now in that wealth that i made by myself, i'm looking after six kids and nine grandchildren and i'm not looking for anything off you.

maybe i was a little harsh there but i have always taken a personal view of the capitalism versus socialism debate. i am a refugee from socialism. i am a capitalist because socialism failed in the britain that i left in the 1970s, you may find this hard to believe, airlines, steel, coal, railroads, health care, gas, electricity, car production, all owned and run by the government. all run into the ground. by the government. the british economy crashed. it took a capitalist, margaret thatch thatcher, to rescue the country. fast forward to 21st century america and we are told capitalism is just not fair. this is the income inequality issue. my answer to that is one, rich people use their money to invest and it's investment that grows jobs and wages. two, socialist answers to income

inequality are immoral. millionaire senator warren wants to confiscate wealth? millionaire senator sanders wants a punitive death tax? i'm sorry, but no government anywhere should be taking more than half of anyone's income. the fox business event was a healthy debate. both sides had their say. i hope we do it again. i have a different view of income inequality. i think it's a good thing that you allow some people on their own brains, talent and ability to become rich. yes, it is. the more rich people you allow, the more growth in your economy, the more innovation, the more efficiency and the greater prosperity. i'm absolutely right. the third hour of "varney & company" is about to begin. stuart: as you saw there, that

was me in the capitalism versus socialism town hall debate. as we said, it was really a lively discussion. i want to bring in daniel garza, someone we always go to when we want the viewpoint of hispanic conservatives. i would label you as a hispanic conservative. is that okay? >> it's fine. stuart: i always somehow feel there is a tendency towards socialism by the hispanic community in the united states. am i wrong? >> no, because for many decades, there was a one-sided conversation in the latino community where progressive groups would have the conversation while those who were more freedom-minded, more pro-constitution, stayed away for some reason or another, mr. varney. just now, i think those conversations are being driven within the latino community and they are embracing once again those values and those principles that made america strong. stuart: look what you've got. in america right now, we've got

an extremely low unemployment rate for all minorities, hispanics included. we have solid growth, rising wages. i mean, that is capitalism. the evidence is right there. is it going to persuade a significant number of hispanics to vote for trump? >> absolutely. look, i think what you see is that within the free market system, one is rewarded when you actually produce a product or a service that im wproves the liv of others through mutual exchange. when you do that, people are going to give you their money. the only way, even if you are selfish, even if you are compassionate, doesn't matter. the free market system is amoral. if you work hard, if you meet demand, if you provide a product or service that is going to improve the lives of others, you will be rewarded. now, obviously some of the problem with the free market system is that of course, if you have more talent, more skill or are better educated, there is going to be inequality. if you are more ambitious there

is going to be inequality. also, there are latinos are facing maybe disproportionately barriers that other americans are not facing as much. for example, 30% of us only speak spanish. 33% of us do not have a high school diploma. these are major barriers we need to get to, remove, so that people have better access to the free market system and watch them go on and up. stuart: one more. your president laid out the immigration plan and it includes merit-based immigration, as you know. but you're concerned that low-skilled workers are being left out. explain your point, please. >> yeah. america has always been a country where we have spontaneous order, where people meet demand, people know where to fill the gap. leave that to the american people to innovate, to leverage their skills and talents to create products and services, to generate wealth and pass it on to their children. so we have an opportunity. we are encouraged by what the president did yesterday. this is an opportunity for

reform. the democrats should seize this opportunity. we share the proposal because the intent is not to cut the current numbers of those who are entering legally and also, i think the president did an incredible job of expressing the value of immigrants to our economy and to our society. stuart: this is just fascinating stuff. we always appreciate you being with us. daniel garza. thank you, sir. >> thank you, mr. varney. stuart: i'm going to add some more reaction to the capitalism/socialism rant. we will get more reaction from ron paul. i can't imagine that the libertarian would disagree with me. but who knows. ron paul is on the show. check the big board. the market right now at a session high. well, almost. we were up 70 a moment ago. now we're up 50. remember when we opened 96 minutes ago? we were down 200. that's a turnaround. moments from now, we are expecting the first trade in luckin coffee. they are the starbucks of china.

what's the starting price? liz: $24.50. it's expected to start trading fairly shortly but to your point, they will try to overtake starbucks in china. starbucks has been there for 20 years. luckin is basically two years up and running. they will try to beat starbucks prices by 25% using two key tools, one, technology. you have to order everything digitally and they will have smaller spaces. they say we will give you a discount if you come in. stuart: they have three kind of kinds of stores. they have little drop-in stores, walk in, walk out. they have relaxing stores where you go and chat with your friends. and they have a delivery service. and they have some wild flavors which apparently appeal, coffee with cream cheese, for example. deirdre: yeah. that's a bit particular. stuart: i'm fascinated by the story. they will use the money they raise today, $570 million, and use that to double the number of stores in china to 5,000 in the

next eight months. deirdre: that is the plan. stuart: using american money to compete with starbucks. i find that absolutely fascinating. we are expecting the first trade momentarily. you will get it real fast right here. speaking of ipos, have a look at lyft. they have been trading for about two months now. they went out at $72. now they are at $54. little bit of comeback recently but not that much. how about uber? they are at $43 a share. they went out at $45 about a week ago. now, we have a market watcher coming up who calls uber a hidden gem. he will make his case. okay. luckin just opened. i think we've got a price. luckin just opened. tell me what it is. i'm not seeing it. $25.15. how about that. deirdre: super strong. stuart: immediately boosted up to $25.49, 48. that's where you have it. that's a 50% gain on the

going-out price. deirdre: they should be raising about $700 million pretty quickly in the first few minutes. stuart: that is absolutely huge. that's a really big move. that shows you that there was very, very strong demand for this company. ashley: appetite. where it finishes, we'll see. stuart: sure. deirdre: especially if you compare that unfavorably, i suppose, for poor uber, this is quite the opposite. this is what you want to see. stuart: except that luckin lost a ton of money. they're not profitable. ashley: another cash burning tech ipo, you could call it. stuart: they will burn american cash, feed the company to compete with starbucks. the meatless burger trend showing no sign of slowing down. white castle has gotten in on the action. they have got the impossible slider. next, i'm going to eat one, taste test. next.

stuart: we can tell you that amazon is investing literally hundreds of millions of dollars in a food delivery company called deliveroo. this is a british-based delivery company. deirdre: as far as people there, they say this is as common as black cabs and double-decker buses, if you look for these delivery guys on their bikes. it's actually profitable in london. yeah. amazon is backing it. i think the purpose here for amazon is actually to keep uber eats in check. that seems to be. but to your point, other businesses as well but uber eats is the one that's really been door dash and some of the others, but uber eats is the one that's really gaining a bigger footprint. stuart: deliveroo. sounds australian. deirdre: ceo was a former investment banking analyst for

morgan stanley and decided you know what, they couldn't get all the food they wanted when they wanted it to the office so he started it as just offering it to restaurants that didn't have a takeout service, then you know, the restaurants give him a little cut and you pay a little delivery fee and it seems to go okay. stuart: as per our australian producer, deliveroo is doing well in australia. ashley: there you go. stuart: you get everything on this show. deirdre: around the world in a minute. stuart: you will get this, too. listen carefully. ashley: we're listening. stuart: it's been a year since white castle added the impossible slider to its menu. impossible slider is a plant-based kind of hamburger. i'm going to try one. but first, i'm going to do it on camera, live, eating on television, not supposed to do that but i'm going to do it. that man is jamie richardson, white castle vice president. before i do the taste test, how many of these burgers have you sold in the year since you put them on the menu? >> a lot more than we expected to. we are about 40% ahead of

projections. it's been amazing. we knew you had a hankering to taste one so we wanted to get it to you today. stuart: i have one. it's sitting right here. before we get to the taste test, how much do you charge for them in white castle? >> $1.99. which is a great price. you will pay $14, $15 for an impossible slider in casual dining. stuart: do you advertise it heavily? do you say come on in, we have the meatless burger? do you say that? >> in the beginning, of course. we wanted to make sure people were aware. but word of mouth has really pushed a lot. we have had over 100 million social media impressions so word has gotten out. that's been driving a lot of great attention and fun. stuart: we took delivery. i've got it here in my little hand. we have that camera on it. i'm going to take a bite and have a look. i have not tasted meatless meat before. it tastes like meat. ashley: it does. stuart: ashley is eating one. ashley: it really does. >> sharing is caring. make sure to share the wealth there.

stuart: what was that? sharing is caring? what did you say, jamie? >> sharing is caring. in the land of crave where we live, we want you to be able to enjoy it. savor the flavor, my friend. stuart: it really does taste like meat. the texture is very, very similar. i have never done this plant-based meat before. is that the reaction of most of your customers? >> it really is. we discovered at the castle we are no longer a hamburger company, we are a slider company. we love our double cheeseburger with bacon but i tell you, the impossible slider's got a great audience and great following. our team members love it, too. stuart: who provides this, the meatless meat, the impossible burger? who does that? >> our partners at impossible foods. we have been working with them, one of the first real big partners to take it out. we are still a family owned business after all these years. it's in every one of our restaurants. you can get it morning, noon or night. 24 hours a day. stuart: other than the taste, and the texture, which i think are just terrific, what's the big appeal? do you find vegetarians and vegans coming in for their meatless meat?

>> it's amazing, i think what we have seen especially with our younger audience, our gen z millenial customers, a lot more of them are vegetarians looking for options. we believe it overcomes the veto vote. if four people are in the car and one is vegetarian, they can come to the castle and enjoy. stuart: i think you have a winner there. i prsappreciate your delivery o these fine burgers to the set. i like it. >> thank you for getting it there and thank you, stuart. crave on. ashley: crave on. stuart: stop it. jamie, thanks for joining us. always appreciate it. thank you, sir. now this. picture this for a second. stuck in traffic in los angeles. i'm sure it's happened to you. ashley: yes. stuart: you get a burger and soda delivered to your car. roll down the window and they shove it through and you get it. this is now possible, thanks to burger king. it's all in the delivery, isn't it? deirdre: if you are 1.8 miles from burger king they will send somebody out to you on a bike or

moped, you get the burger in your car while you wait. they tried this in mexico city which, according to the traffic index, has the worst congestion in the world. l.a. is twelfth on the list. they are actually going to roll out, burger king will roll out the concept to sao paulo which is famous for traffic waits. ashley: it can be tough on the freeways. seven, eight, ten lanes all in the same direction, cars moving, people zigzagging in and out. you have a delivery in the middle of all that, good luck. i like the concept. deirdre: at least it keeps people from being hangry. you hear about road rage. maybe some of it is hunger. stuart: happening now, bloomberg is reporting that the u.s. is poised to lift steel and aluminum tariffs on canada and mexico. just working out the timetable for it. but it is going to happen. that is helping the market. dow industrials up 55. the steel companies are not

reacting at this point. u.s. steel is down just a few cen cents. okay. here's something i find intriguing. i used to fly the concord every now and again. well, a supersonic jet that could get you from new york to london in 90 minutes, it would travel at five times the speed of sound, it could happen within the next ten years. deirdre will have details for us after this. this is my headquarters.

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stuart: luckin, the chinese coffee company that is going to compete with starbucks in china, has opened. the first trade was around $25 a share. now we're at $24.26. still up 42% from the offering price. now here's the story on that supersonic jet. an aerospace firm has unveiled a plan for that kind of jet that will get passengers from new york to london in about 90 minutes. okay. deirdre, i have some questions. who is behind it? deirdre: a well-known silicon valley company but more interestingly, some alumni from amazon, jeff bezos's blue origin

and from elon musk's spacex. these are a bunch of alum who said we can do better and are going to leave and build this. stuart: when will it be in service? deirdre: a demo that people can actually go on is in five years. they say probably closer to a ten-year rollout for if you are going to buy a ticket on it. stuart: it's not going to be operated by commercial airlines. deirdre: private for the moment. the claim is to beat concord by 15 minutes. stuart: big story developing here on tesla. elon musk focusing on cutting costs drastically. the company just burning through money. right now, you are down to $218 per share. what's the market saying about this? do you have any -- deirdre: people love elon musk, but you know, as far as being an operator and actually manufacturing cars, people, even the people who support him, say okay, he's a wonderful visionary, he's not the best executer. stuart: he's got a cash crunch. he's burning through it. ashley: every line item on the

budget now is going to be looked at very hard, which is that going to save them? they are burning $2.2 billion cash on hand. he himself says at our current rate, we will be done in ten months with that money. stuart: to the opioid crisis. five more states suing purdue pharma accusing that company of illegally marketing and selling the drugs. coming up, we have the attorney general of west virginia. they are one of the five states suing. what do they want to accomplish here? and we are wrapping up capitalism versus socialism week on the fox business network. yesterday, i gave jackie deangelis a hard time when she said capitalism can go wrong. today, she's got something i like a little better. how strengthening capitalism helped america. we are ready for that. we'll be right back. ♪

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(vo) ♪ i know what you're thinking. electric, it's not for you. and, you're probably right. electric just doesn't have enough range. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it?

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stuart: dow industrials up 58 points. it is an even split, 50/50 between winners and losers. quickly to the other markets. the price of oil this morning, up 30 cents at $63 a barrel. the price of gold, $12.75, down ten bucks. speaking of going down, look at bitcoin.

down $775 per coin, $7,154 is your quote. next case. our guest says uber eats is -- that platform is a hidden gem within uber. david nicholas with nicholas wealth management is with us now. okay. so uber eats is a gem within uber. its its a big enough gem to make you buy uber? >> it is, and i did buy uber last friday. so it was a positive catalyst for me. look, uber eats revenue is up over 100% over the last year. a billion and a half revenue. uber eats on its own is a multi-billion dollar company. you know the mcdonald's burger you love so much? uber eats can deliver that to you and they can get it to you at a discount compared to most food delivery services. there's massive upside in the uber eats market.

surely there's going to be some competition but what i love about uber eats is the built-in user base that it already has. 100 million uber users that can have one-click access to their food, to their mcdonald's burger. i'm excited about it. i think investors should be excited as well. stuart: you bought it when i said i was going to, i missed it. congratulations to you. here's another one for you. nvidia. they make graphics cards for video games, i am told. they were a star performer last year. they are at $160 a share now. but you say expect this thing to go down big-time. make your case. >> well, good thing about nvidia, they beat on earnings, they beat on revenue but here's the issue. year over year revenue's down over 30%. it's the second consecutive quarter where their revenues declined. i think nvidia is one of these companies that really has been hurt by the economic slowdown in china. so really, the weakness that we see there is on the demand side. the video game sector of nvidia

is what's keeping the earnings story alive. one of the things that was really concerning to me is their inventories are up over 70% in the past year. given the issues we have with trade demand in china, that's not good for the stock, especially with downward guidance right now, it's a hold for me. stuart: okay. that was a superstar last year but not now, apparently. one more for you. it's pinterest. we went public not long ago, went public at $27, i think, wasn't it? no, no, went public at $19. now it's at $27. but you say no path for growth of pinterest. you don't like the stock. make your case. >> unfortunately, pinterest seeing a massive selloff since its earnings reported. here's the issue with pinterest. it's really just demographics. pinterest has a limited demographic between women ages 18 and 64. they have not figured out a way to grow that user base. one thing about revenue, this is pretty amazing, pinterest revenue per user in the u.s. is

over $2 per user. their revenue for outside the u.s. is eight cents per user. some might say that's an opportunity but i don't think they have figured out a way to grow their international revenue. their earnings story is pretty dismal. until that changes, this stock is going lower. i think at the ipo priced correctly, this is hard for investors to hear but i think that stock should be trading within the $15 to $19 range as the appropriate price for that stock. stuart: ouch. so it's a yes on uber, a no on nvidia and no on pinterest. got it. thanks for joining us. see you again soon. west virginia is one of five states now suing purdue pharma over its role in the opioid crisis. west virginia attorney general patrick morrisey joins us now. welcome back. good to see you, sir. >> good to be back on your program. thank you. stuart: can i ask you what you want out of this lawsuit? do you want money or do you want to put them out of business? >> i think the biggest thing that we want is accountability

for all the unlawful actions that we saw over a prolonged period tiechl. you can't go into a state, market a product, completely underestimate the addictive properties of a product, then have countless deaths that flow, then expect to come out free on the other side. there were very serious problems not only with this product but how it was marketed and the efforts that were made by the company. there are also serious problems throughout the entirety of the pharmaceutical supply channel and with the government but yesterday's suit focuses on purdue pharma and what we think they did that violated the law. stuart: ultimately, do you want to take opioids off the market? >> no. i think that there is certainly an appropriate use for opioids. i just think that the number is very different than what we have been seeing. in west virginia, we have been working to dramatically cut down the number of pain pills in our state. it's actually gone down 35%

since i took office. that's because of the accountability we are bringing to the supply channel, our work with the dea to rewrite the national drug quota system, and emphasizing at the prescriber level that non-opiate alternatives are preferable but op opiates should be available to people who really need them. stuart: if you get money out of them do you put it straight into treatment facilities? >> i think most of the resources that will come out of lawsuits will go right back into treatment to get people better in the head and in the heart. that has to be the focus. there is also in west virginia need for improved enforcement. but i say treatment, treatment, treatment and remember, stuart, the biggest problem here, we have to attack this problem holistically, go after the supply, the demand and do education and prevention. if you do all that, you start to see the numbers come down. the numbers have to come down. there is too much senseless death in west virginia and

across the country. stuart: yes, sir. attorney general, thank you very much for bringing us up to speed on this. thank you. >> thank you. stuart: let's get back to capitalism versus socialism. can't get away from it. kind of love it myself. a lot of opponents of capitalism use the financial crisis as an example of capitalist failure. jackie deangelis joins us now. you have some points on how capitalism actually helped america. >> well, it's helped get out of that crisis. let's go back to what actually caused the financial crisis. it was the housing bubble. implemented with policy or as a result of policy that everybody should own a home. in his book, the power of capitalism, the author says this. let me read it. the house price bubble was also fueled by the fact a growing number of home mortgages were granted to unqualified borrowers, in fact, this was precisely what politicians wanted. he calls it politically correct lending. that's why the market dropped. what got us out of this, what got us out, capitalism. the last ten years, he would say

cycle seven to ten years, president trump inherited a tired bull. we could have seen this go the other way but he's keeping it going. i want to remind you what those reasons, right. gdp is very strong, unemployment, the lowest since 1969. people are working and they're thriving. stuart: the left of the democrat party says the exact opposite. they say the banks did this to us. maxine waters says we are going to do to the banks what they did to us. blaming the banks, blaming capitalism for the crash. >> the banks weren't completely -- they're not without blame here, but policy and the banks, it all worked hand in hand. then you need government intervention to be able to get us out of that crisis. it's a learning lesson. we sort of have to look back at how policy and business do work together but it brings up some of the points in the town hall yesterday, in terms of how policy could impact the system. stuart: did you watch all the way through the town hall? >> i did. stuart: was i a little harsh? >> no. stuart: no? >> no. not at all. stuart: how much extra time

would you like? thank you very much. >> nice to see you. stuart: see you soon. socialism keeping up with that theme here, coming up, we talk to someone who sees first-hand what's going on in venezuela. she's gone there three times in the past 20 years and she's here today to tell us how bad it is. she's trying to hand out food, for heaven's sake. first, i'm talking to ron paul. i want his reaction to my town hall appearance yesterday. can you imagine a libertarian would agree with a socialist? you will hear more from that guy on your screen right now. was i too harsh? don't know why you're laughing, sunshine. i'm telling you, when i was in england in the 1970s, the coal industry, steel industry, rail industry, gas industry, road transportation, what else have we got? oh, electricity, health care, all of that, and the airlines, owned and run by the government. and they ran it into the ground. that was english socialism. it failed miserably. so, jardiance asks...

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stuart: luckin, the chinese coffee company, has opened. it's now trading at $22 a share. it was off and out there at $17. that's a nice gain for luckin. okay. how about what have we got now? what have we got? baidu? okay. put it on the screen. baidu, china's google, taking a hit, i suspect because of the china/u.s. trade war. the stock has fallen out of bed, down 14%. that is a huge loss for a very big company. how about deere and company? another company that's taking a hit because of the china/u.s. trade dispute. deere is down 5.5%, $8 lower.

ouch. what's this? california, ready to ban gas-powered cars? deirdre: it came very close yesterday with the top regulator. missed it by this much. but the idea is california, of course, very famous, we'll say, for smoggy air. there are a lot of environmental groups saying okay, the idea is to ban all petrol driven gas cars by 2040. however, even they recognize there are some problems, meaning not enough public charging stations. that's for starters. then electric cars are also more expensive than gas powered cars. they recognize that there has to be some math done in the middle. if they are serious about it, you got to figure out a way to fund, i guess if that's the goal, figure out how to fund people buying an electric car. stuart: that's so far away. i'll be dead. ashley: you will still be doing that show. you know it. stuart: you hope not.

let's get back -- lovely graphic there. capitalism versus socialism. i'm going to play you a real fast clip from our town hall. roll that tape again. i don't know what you're laughing at, young man, but you're going to learn something. i invested in land. i have now got a profitable tree farm, employs people in a very depressed area, and now with my wealth, that i made by myself, i'm looking after six kids and nine grandchildren and i'm not looking for anything off you. i was getting a little excited there. ron paul, former texas congressman, libertarian kind of guy, you listened to all of this. do you ever get kind of juiced up when you are talking to socialists like that? >> i do, but i'm used to it. i have been in washington, you know, and they used to call themselves liberals, progressives. now they are bold and more honest. we are just flat out socialists. i think this debate is an interesting debate but one thing

that i sort of challenge this whole debate is assuming that the contest is between socialism and our current economic system. because i haven't acknowledged the current economic system is a good expression of true free market. stuart: no, it's not. it's about profits and private enterprise, isn't it? we are a capitalist society. i can say that. >> well, we deal in capital but i don't like people to -- because you can pick on the edges like i do on the federal reserve, saying that distorts the market. i don't want to be included in the criticisms because i think it deserves some challenge as well. stuart: what do you think happens in the unlikely event, the very unlikely event that a socialist, a democratic socialist, call it like that, what would happen to america's economy if that person won the election in 2020? >> well, the markets would go down initially but they wouldn't go down and stay down. it wouldn't be the end of the world because they wouldn't rule

the day. what if you had a libertarian president put in office, would you fear too much liberty and there's no control and nobody telling us what to do? no. what determines what happens is an attitude of the people. the people still have something to say about this. when they express themselves, they are listened to. sometimes it takes the people ms outcry to stop wars and overwhelm what they are doing in washington. i just don't think -- i think if you have -- we have had people who have been pretty socialistic and sometimes republicans, when they have, when they pump up, you know, prescription health programs, that's socialistic. so we participate and i'm thinking more clear thoughts about saying stay out of the economy and that is a much better way but a socialist is not going to be the end of the world. i used to say that i don't even call obama a socialist. he's an interventionist. he's a corporatist.

he defended the corporations. obamacare built up the corporations, the drug companies, the health companies, the insurance companies. it was the corporations that benefited from obamacare. stuart: ron, would you just hold on for a second. i'm going to play another clip from the town hall yesterday, one in which i go off on the state of socialist england in the 1970s. roll that tape, please. i come here and i find a capitalist society where you can work your way up the food chain with brains, drive, talent and ability. and by the way, it was margaret thatcher, a capitalist, who restored england to prosperity after the degradation of socialism in the 1970s. ron, you heard that. margaret thatcher restored after the degradation of the '70s. she was a champion of yours, wasn't she? >> yeah, she was very good and she followed the austrian economists and that always pleased me. stuart: i miss her. i have to tell you. i do miss her. >> maybe there will be another one come along after this one leaves.

stuart: good luck with that, ron paul. i've got 20 or 30 seconds. bear with me for a second. you have been pounding the table for free markets and real capitalism all your life. do you think you made progress? >> i do to a degree but only on the edges. i didn't expect a whole lot so i'm very pleased. i got a little bit of attention because i think the big threat to true free markets and capitalism is the control of the monetary system, and you've heard me say that, that you have to be careful with the fed. i think the fed gets a lot of attention. i think they got a lot of attention with the last bust and with this next one coming, they are up for a lot of criticism. i think we have made progress in an educational sense. i didn't get any bills named after me and i promised the people i knew there, i said please don't ever name a federal building after me or highway. they said don't sweat it. stuart: ron paul, please be a regular guest on the program.

we would love to see you again, sir. thank you very much. >> thank you. stuart: next, we are going to talk to a lady who is a chef who was raised in venezuela and she has been going back there for some 20 years to feed the people of venezuela. we want a first-hand report of what it's like and she will give it to us, next. 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, we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you, pay you on the spot, and pick up your car.

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stuart: let's get a report from the front lines. our next guest travels frequently to venezuela. she goes there to feed the starving people. we've got a report from the front lines. grace ramirez is with us, world central kitchen ambassador and celebrity chef and author. great to have you on the show. >> thank you for having me. stuart: you are doing valuable woos work. we want to know what conditions are like. as we understand it, you go to the border, you've got your food supplies, you see the venezuelans coming at you. what kind of condition are they in? >> it's apocolyptic. it feels like something we shouldn't be seeing in 2019. you see people with small

children, no shoes, very minimum clothing, just they're starving. like the first guy that i saw was like i would rather just keep walking and being fed along the way by organizations like world central kitchen than to starve to death in our own country. stuart: that bad. >> it's that bad. stuart: is malnutrition obvious? >> it's more than obvious. someone said to me i haven't had this kind of meal, rice, beans, shredded beef and vegetables, and an apple, in three years. that's the kind of conditions. you have a country which is going at a two manaillion perce of inflation a year. it goes from 60 to 270% of inflation a month. the minimum wage is $7 a month but two pounds of beef costs $7. so people are literally starving. so you get this fleet of people that are on the border coming from the colombian/venezuelan

border which are thousands of people a day with nothing but a little bag and their small children. they don't even know where they're going. people are like i'm going to mexico, i'm going to peru. i don't know what i'm going to do but i have to keep moving because i am literally starving. stuart: you are on the border. >> yes. stuart: so you meet them as they come across the border. >> yes. stuart: you hand out the food, rice, beef, beans, vegetables, that kind of thing. who donates the food? >> world central kitchen. i'm one of their ambassadors. world central kitchen is a beautiful organization and we do a lot of work in puerto rico as you remember with the storm. now we are focusing on the crisis at the venezuelan/colombian border. stuart: you can't take that food, walk across the border into venezuela and hand it around? >> i would technically, because i have a venezuelan passport. i'm american but have a venezuelan passport because of my parents, but no. you technically can't go into the country with an american organization like world central kitchen. but what is amazing, and what

world central kitchen has figured out is that the problem is when they start walking, they know the andes are there. they don't know they are going from hot weather to extreme zero temperatures, because they are going up the andes and then they have to go down in order to go to like, you know, to bogata, to peru. they have to go up the mountain and then down. so world central kitchen figured out let's be in the mountain and distribute the food from there because that's when the conditions deteriorate and that's when things get really tough for them. because they have no proper clothing. they are literally with children, just with shorts and a little bag. stuart: grace, we asked for a report from the front lines and you gave it to us. we think you are doing fantastic work. >> thank you. stuart: grace ramirez, thank you very much for being with us. >> thank you for having me. stuart: more "varney" after this. it's tough to quit smoking

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stuart: right now we've to the the dow industrials showing just a 30 point gain. that is quite a reversal from 9:30 where we opened with a 200 point loss. about a minute left on this program. ash, most interesting story. ashley: traffic jam whopper. you can order burger king whoppers on the car, stuck on the freeway in l.a. they will deliver it to your window. i like that idea. stuart: deirdre? >> supersonic jet being built by alum of blue origin. new york to london in about 3 hours time. stuart: that is not bad. >> available maybe in the five or 10 years. stuart: reminds me about the concord. my story is all about me. seeing me on videotape on the capitalism, socialism debate. i didn't realize how impassioned i was. i didn't realize i gone after the man, laid down the law how

bad socialism was. i didn't realize i got carried away. i will never do that again. of. ashley: right. right. stuart: until monday morning. you might get another dose on monday. time's up. neil, it's yours. neil: all right, stuart, thank you very, very much. look at the corner of wall and broad. we were down 200 point earlier. we're up about 30 points right now. a lot of focus on what the focus should be on. china where things are not looking good where trade talks are concerned or economic picture which looks very, very good. we have hillary vaughn on the trade talks, where they stand. gerri willis at nyse, how market are trying to digest all of this. later on we have ohio republican congressman jim jordan. he is reacting to attorney general bill barr exclusive with bill hemmer. this investigation into the investigation is still going on whether the democrats like it