thank you so much for this historic day. we have so much more. "varney & company" starts right now. stuart, take it away. stuart: good morning, dagen. good morning, everyone. let the pomp and circumstance roll on. the president and the first lady have arrived in britain for a three-day state visit. so far, the president seems to be enjoying himself. he took to twitter even before he landed in london to zing london's mayor, who had called him a fascist. he's greeted the queen, inspected the guards, he broke protocol to chat with individual guardsmen, how very american, how very trump. he has a full schedule for the next couple of hours. watch it with us. you are going to see it all. we better get to the markets on this monday morning. it looked bad early today. we were expecting a loss of maybe 200 points for the dow but we have come a long way back. right now, we are looking at

maybe a 20-point loss. we may even go to the upside by the time this market opens. small losses, s&p and nasdaq, as we speak. now, a harsh statement from china on trade talks, not helping. they say they are open to more talks but will fight to the end to defend their interests. here's a very important number, just look at this one. the yield on the ten-year treasury at 2.12% as we speak. earlier, it had been under 2.10 at 2.09, all the way down there. two reasons for this. number one, money is pouring into safe u.s. treasuries, pushing the yield down. two, the global economy is clearly slowing and that, too, pushes interest rates down. monday, june 3rd. "varney & company," i'm going to call it the royal edition, is about to begin.

stuart: edward lawrence is in london covering the president's visit for us. show us what we've got. first, can you show me the protests, edward? reporter: you know, the protests, there are smaller protests going on but before i get into that i want to tell you what's happening right now inside buckingham palace. president donald trump and the first lady are exchanging gifts right now with prince charles and camilla, then they will go into the royal picture gallery and look at the collection. there have been smaller protests here today, two of them this morning but what happened is the london police here have really locked down the area around buckingham palace. protesters can't get anywhere close to buckingham palace because of that so we haven't heard large-scale protests. tomorrow, thousands are expected to take to the streets in larger protest not just here in london but also in two other cities here in the united kingdom. what's happened is the growing feud on the ground, you kind of alluded to the mayor of london has allowed a larger blimp mocking president donald trump

to be floating tomorrow over the city. he also penned an op-ed piece attacking the president. the british foreign minister saying he doesn't always agree with president trump, but this is a state visit and should be treated as such. the queen only holds about two state visits each year. u.s. presidents, only three of them with this queen have had state visits. president bush in 2003, president obama in 2011, and now president trump. stuart: edward, do you think that londoners are happy to see our president over there? reporter: well, his approval rating is very low, no matter what poll you're looking at, about 28% or so. i have actually talked with many folks here in london who don't approve of this president. they don't like what he stands for here in london, but the people that i talked with said that this is a state visit and they honor the queen. so this is something that they view as the queen wants this president to come here, we should respect that fact, is what i have been hearing on the

ground. protests, we are expecting larger protests tomorrow. stuart: edward lawrence for us in london, thank you. better treat our guy with respect. ashley: yes. absolutely they should. stuart: that's my opinion. you can still hear that edward. treat our guy with respect. show some respect. don't bite the hand that feeds you. you need us more than we need you. when i say we, i mean america. can we be clear on this? ashley: i think we are. stuart: let's move on to china trade, please. the chinese released a document blaming the united states for the trade dispute, saying they will not back down. china also denied backtracking on any previous agreements. do we have martin? i know you were stuck in traffic for awhile. it seems to me this monday morning, we are looking at the market, looking at interest rates, everything is about trade. it still dominates, doesn't it? >> yeah, it still is. everything is about trade. it's trade -- three things the

market is concerned about. trade is one, trade is two, and weather on the u.s. crops is probably three. trade is obviously dominating everything, concern about the imposition of tariffs against mexico, concern about the possibility or the probability or improbability more than likely of the united states and china reaching some sort of agreement at the g20. so trade is dominating everything. we were, as you said earlier, down about 175 dow points on the futures, now only down about 20. nonetheless, i do think this is untoward and ill-advised and i think detrimental to stock prices generally. stuart: i've got to talk to you about interest rates. earlier this morning we saw the yield on that ten-year treasury at 2.09. it's come back to 2.12. but that's a very low level. does it signal a recession? >> well, it depends upon what one looks at and the focus shall be upon the inversion of the yield curve. i find it interesting people are saying do i pay attention to the 2s versus 10s, the 2s versus 5s, to overnight fed funds versus

30s. all we do know is there's the fact at the short end of the curve, rates have been low and are rising basically at the very short end, as the overnight fed funds rate and rates at the long end are coming down so the curve is inverting quietly. you may denigrate the change in the curve but i think the curve is telling you a recession lies upon the horizon and we have to be careful. trade is dominant and putting into effect how do i want to say this, inhibitions against further trade make for deleterious circumstances economically and in global effect. stuart: you're not buying, are you? >> no, i'm not. i have been short since early in may. i trade only for my own accounts so i put my own money where my mouth is. i have been short since early may. as i said in my newsletter this morning, i'm not shorting anymore at this point but am i still short, yes, i am. stuart: got it. thanks for being with us on a monday morning. see you again real soon. >> thanks for waiting for me.

stuart: tap dancing waiting for dennis. china trade, the issue this monday morning. the state visit to england as well. but impeachment is also out there as well. just listen to what adam schiff had to say about it. roll tape. >> well, look, i think we're going to do what's right for the country and at this point, the speaker has not reached the conclusion and i haven't either that it's best for the country to put us through an impeachment proceeding that we know is destined for failure in the senate. stuart: destined for failure in the senate. jason chaffetz with us, fox news contributor, former utah congressman. if it's destined for failure, then the democrats are not going to do it but they will investigate him to death. is that what's going to happen? >> yeah, i think so. i think it's death by a thousand cuts, as opposed to impeachment. that is a major shift from adam schiff. he's reflecting what nancy pelosi is telling him. he's the lapdog of nancy pelosi,

always has been. he has that role only because of nancy pelosi. he has been telling us for two plus years that there was this concrete evidence that he had seen the mueller report demonstrates that was never true, but now he's shifting it to try to convince people and support the speaker that they should not pursue impeachment because they don't have anything, stuart. that's the bottom line. they don't have anything. stuart: what do you think about the state visit to england? it seems like president trump in london completely overshadows all of this talk about impeachment or investigations or the split democrats and socialism. he's holding court. he's the center of attention all over again. >> well, he has really got his sea legs under him, particularly on foreign policy, which is going exceptionally well. good for the queen and one of our greatest allies for bypassing the silliness that you see from the london mayor, who is just a political hack who is

not doing anything to engage the world and understands how important the relationship is between the united states and united kingdom. i'm proud of donald trump. he's doing the right thing overseas and as he honors our troops i think we will be very proud as all americans. we all should be. stuart: he might well get a move towards a trade deal, advantageous for both the united states and for america. he may actually meet boris johnson, who just threw his hat into the ring as maybe the next leader in britain. that would be something positive to come out of this state visit. what do you think? >> oh, absolutely. a trade deal there and remember, we have one in place with canada and mexico, if only congress could get their act together. the president's on the verge and making progress on holding a china accountable. this gets right to the heart of the democrats and the blue collar workers who actually have manufacturing jobs in the united states of america. this is why the democrats are in

so much trouble in 2020, because their traditional base of supporters sees donald trump on the world stage making their life better, and that will pay dividends in 2020. stuart: jason chaffetz, thanks for joining us this monday morning. always appreciate it, sir. president trump says white house economic adviser kevin hassett is leaving. he announced this in a tweet last night. the president praised hassett's work and said that he will name a replacement when the president returns from europe. check futures. we have come a long way back. as i said, first thing this morning we were down about 200. now we are down 30. we may actually be at break-even point come 9:30 when the market opens. we'll see. apple holding their big developers conference today in california, expected to announce that it's killing the itunes store. that could be a big deal. up a buck premarket at $176. tesla stock hammered this year. elon musk paying a big price for it.

wait until you hear how much money he's lost as tesla's stock comes down to $186. president trump meeting with queen elizabeth right now. they are looking at gifts in the royal collection. big question, though, is whether the president will meet with boris johnson while he's in britain. we've got that story for you. it's important. "varney & company" just getting started. i'm working to make each day a little sweeter.

♪ to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪ to make each journey more elegant. ♪ i'm working for all the adventure two wheels can bring. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase sensimist relieves all your worst symptoms, including nasal congestion, which most pills don't. and all from a gentle mist you can barely feel. flonase sensimist.

stuart: let it be clear, the mayor of london does not like president trump. here's what he said about him in an op-ed. here's the quote. it's so un-british to be rolling out the red carpet this week for a formal state visit for a president whose divisive behavior flies in the face of the ideals america was founded upon. okay, ash, how did our president respond? ashley: in the classic fashion that he does. let me just show you this tweet, made me laugh. before he landed in the uk, said by all accounts he's done a terrible job as mayor of london, has been foolishly nasty to the visiting president of the united

states, by far the most important ally of the united kingdom. he's a stone cold loser who should focus on crime in london, not me. khan reminds me very much of our very dumb and incompetent mayor of new york city, de blasio, who is also by the way done a terrible job. in any event, i look forward to being a great friend to the united kingdom and am looking very much forward to my visit. landing now. stuart: i don't know whether we should laugh at this. ashley: no. stuart: but it was funny. ashley: it was classic. stuart: classic trump. i want to stay on the state visit to england and bring in ted broman with the heritage foundation, part of the trump transition team in 2016. ted, just as president trump landed, boris johnson opened his campaign to be england's next leader. do you think they will get together and have a meeting? >> well, i certainly hope they will get together. of course, it's all in president

trump's interests and the united states' and britain's for the president to meet with boris johnson, who is a distinguished author, m.p. and britain's former foreign secretary so they should get together. s . stuart: do you think if they did get together, they could discuss a trade deal? boris johnson has said he wants the brits out by october 31st no matter what. he wants out. that really would open the territory for a trade deal. >> absolutely. the united kingdom really can't do a trade deal with the united states until it leaves the european union. if it leaves on october 31st as the current projection has it, we should have a deal ready to go right at that time and boris johnson and president trump are ideal people to start putting those plans in motion. stuart: would i be right in saying that they, the brits, need us, america, far more than we need them? >> no, i wouldn't put it that way. we need an ally in the world who is independent of the european

union, who can stand up against the europeans' increasing effort to spread its rules around the world, who will be an honest friend of ours and a good military ally. this is not a one-way relationship. stuart: what do you -- we have video on the screen at the moment of president trump inspecting the guards. i don't know whether that's the grenadier guards. he's stopping and chatting with individual guardsmen. what do you make of that? >> as you said earlier, classic president trump. this is his personal style. i'm not sure it's protocol but there's no way you're going to stop him. stuart: do you think the brits like it? i don't know whether you are the right guy to ask that question but i'm asking anyway. do you think they like it? >> look, to be honest, a lot of british people don't like president trump. but you know what, there are people in the united states who don't like president trump either. the reality is he's president of the united states, he's got his own style and there's important

business to discuss so after this fun protocol is over, i hope they get down and talk about some business. stuart: well said. ted, thanks very much for joining us. we do appreciate it. >> thank you. stuart: okay. we better look at futures. monday morning, rotten week last week, big drop on friday. how do we open on monday morning? the answer is we will open down but not very much, maybe 30 points down for the dow industrials. look at google, getting ready for a legal fight. the justice department launching a new antitrust probe. that stock is down 37 bucks, premarket. over 3%. that's a big drop for a big company. look at this. several people hurt after a cruise ship crashed into a dock in venice, italy. hit a tourist boat. you will see more in just a moment. we are on the story.

can't see what it is yet.re? what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice. this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these. that is sharp. the all-new chevy blazer. speaks for itself. i don't know who they got to design this but give them a cookie and a star. back then, we checked our zero times a day. times change. eyes haven't. that's why there's ocuvite.

screen light... sunlight... longer hours... eyes today are stressed! but ocuvite has vital nutrients to help protect them. ocuvite. eye nutrition for today.

stuart: drama in venice, italy. you better watch this. a cruise ship rams into a tourist boat. now, as you watch the video, ashley, you will tell us -- ashley: imagine looking in the rear view mirror of that tourist boat. that's the only thing i can say. there are many, many huge cruise ships that kind of plow on -- we well, literally in this case, come into venice bringing all

the tourists. this has reignited the argument that's long been made there should be restrictions placed on these enormous cruise ships coming in. this will just add to the fire of those restrictions being called for. we're not sure how this happened, why it happened. there were five people injured. there was more than -- there's 2600 on the cruise boat, 100 on the tourist boat it plowed into at the dock. stuart: that's in venice, italy. i just think with these beautiful cities, historic significance, then you have this 15-story boat comes in. kind of ruins it. is it a boat or a ship? susan: definitely a ship. stuart: let's do something more serious, shall we? more layoffs could be coming to new york city restaurants. why? susan: because aoc, alexandria ocasio-cortez, she wants to campaign to raise minimum wage for restaurant workers by 600%. restaurant workers are opposing this, by the way. this is after the steepest job losses in the restaurant industry in 2018. they lost 6,000 jobs in new york

city. this is aoc -- stuart: that's her. susan: she was famously a bartender before she became a congresswoman. she was the featured bartender this weekend again, trying to drum up support for the raise the minimum wage act. stuart: she's got skills. susan: this is at the queensborough restaurant which has pretty good brunch on the weekends. stuart: did she accept tips? if she accepted tips, did she pay tax on them? it would have been in cash. ashley: good question. susan: -- actually had to close down because of higher wages they had to pay out. it doesn't exist anymore. stuart: that's true. that's true. susan: maybe she should listen to her former employer saying we can't handle higher costs in this city. stuart: the moral of the story is do not legislate wages. ashley: right. stuart: let the market take care of it, please. you will legislate businesses out of business. we almost came back to dead break even. we are down 20 points on the dow industrials with less than four

minutes to go to the opening bell. we will take you to wall street to watch it all start in a moment.

stuart: all right. the market's about to open. take a look at tesla stock. this is premarket. $185. it's been having a tough time of it this year, and musk, elon

musk, has lost a lot of money. how much has he lost? susan: $4.9 billion because of the 45% drop in tesla shares. but don't cry for him, please. he's still worth $19 billion. he made $2.3 billion in 2018. stuart: on your screens now, the queen and president trump. i can see prince charles there. i think they're looking at gifts in the royal collection. either that, or artifacts or pieces of art in the royal collection. this was an event closed to the press but there is tape of it. you are looking at it right now. sorry. this is live, not tape. this is live. queen elizabeth right in front of us there. she's 93 years old. ashley: incredible. stuart: i think she's been in office for 13 prime ministers and has welcomed i think a half dozen presidents but only three as state visits. this is a formal state visit by

our president as we speak. right-hand side of the screen, they are getting ready to open the market. it will open in five, ten seconds time. we are expecting a minor loss and maybe a turnaround to the upside. but you don't know. we will hold that on the left-hand side. you can see what the state visit is doing. right-hand side of the screen, we are up 16 points. that's how we open. how about that. i don't know whether that will hold when all the dow 30 are open. no, okay. we are down a couple of points. believe me, when i got up this morning, 3:00, we were down 200. we have come back a long way since then. now we are dead even. call it dead even. the s&p 500, where is that in the first few seconds of business? dead even. dead even. the nasdaq, i think that's probably about the same story. where is it? it is almost dead even. it's down .1%. now, look at the ten-year treasury yield. that's now at 2.11%. historically, a very low level.

you're looking right there at a flight to safety and maybe some concern about the state of the global economy. the price of gold this morning, i believe, is well above $1300 an ounce. yes it is, $1319. look at oil, all the way down to $54 a barrel. it's actually up 80 cents so it was at $53. there you have it. oil has come a long way down. i need help, as usual. mike murphy is going to help me, john lonski is going to do it, susan li, ashley webster helping as well. first of all to you, murphy. >> yes, sir. stuart: do you think the selling is coming to an end? we have had a rotten may. is it over? >> we had a really bad may, and we could get more to the downside. we have had 5% or 6% pullback from recent highs we've had. the key to remember is the worst thing you can do in a situation like this to the people watching at home is panic. it may be over today, it may take another week, it may take a few more weeks. stay invested, stick to your

long-term plan. stuart: john lonski, i have to talk to you about interest rates. all the way down to 2.11% on the ten-year. does that mean we are looking at a recession in america? >> the bad news is, if this is going to last for the entire month of june, that tells me there is a 93% probability that we have a recession within 24 months. but it doesn't have to last the entire -- it doesn't have to last several months. the one exception we had to this trend was in the summer of 1998. what happened is the federal reserve wisely enough responded quickly with interest rate cuts. let's hope fed funds futures has it right. right now, the futures market believes there is an 80% chance that the fed funds rate ends this year, no higher than 1.88%. they are talking about two rate cuts. that's very important. stuart: two rate cuts possible. what happens, all of a sudden we get trade deals start coming together, china, europe, mexico,

canada, suddenly it all changes around, the yield starts to go back out, money comes out, goes into the market, does the recession fear suddenly go away? >> that's what happened in 1998. it eventually, the fed had to hike rates. the fed should listen to the market. the fed can afford to listen to the bond market, the futures market, mostly because inflation is well contained. the average rate of core pce price index inflation over the past 25 years, 1.7% which is less than the fed -- susan: we have interest rates, i think barclays is pricing in like .75% so three interest rate cuts in the back half of 2019. that's if we don't get trade deals. >> even before we have this trade problem resurface in early may, we had industrial commodity prices slipping since the month of march. keep an eye on that. the good news is price of crude,

$53, kind of scary but it got down to $40 in early 2016 and moreover, your base metals price index is doing better than it did -- stuart: left-hand side of the screen, we have queen elizabeth and president trump and first lady being shown around some gifts that have been given to the palace in many, many centuries, i guess it would be. some of the artwork as well. we will keep that up for you. we want the sho show you as muc possible of our president on state visit to great britain. however, you better take a look at google and amazon. right-hand side of the screen, just look at that. google is down $47, barely above $1,000 a share. amazon's down $16, $15, all the way back to $1759. the government, as in the department of justice, may have a go on both companies on antitrust grounds. therefore, mr. murphy, should i back away from any stock holding that i have in the big techs? >> i don't think you should. maybe you wouldn't go out and

buy into this news just yet because obviously, you don't want a company that's fighting the government. but remember, google went through this a few years ago. the government came after them. there was a ruling 5-0 in google's favor that they were not violating any antitrust laws at that time. they are ready to fight, i think there's a lot more going on here, but both companies are still very profitable, still growing very well. i like them long-term. i own them both. stuart: the worst thing that can happen to you is the government comes after you. if they lay a charge on you, you will be defending yourself forever. >> you can either settle right away or do what microsoft did and fight europeans for four years and end up paying $2.5 billion. maybe there's a way around this. you can settle and change some of the way you do business. maybe. susan: $2.7 billion to the eu in 2017, they paid $1.7 billion again to the eu in 2018. it's peanuts, however, there is the case of standard oil, by the way, at & t, i know we are saying it's not a risk at this point but you never know, when

you control 90% of the search market in the u.s. and globally. stuart: the government comes after you, you got a problem. check the big board. oh, we are open, now five minutes in, and up 60 points. how about that. when i was up this morning it was down 200. now we are trading and are up 62. look at the auto makers, please. they were down friday after president trump threatened tariffs on goods coming here from mexico. not much of a recovery this morning. in fact, general motors, i can see, is down a little more and so is toyota. okay. they just turned around. but no big rebound after friday's losses for the car makers. here's a story. quest diagnostics, medical testing lab, have announced that nearly 12 million patients may have had their personal information compromised in a big data breach. quest says the hackers may have gotten credit card and bank information as well as medical records and personal information. the stock is up. you keep getting these data breaches, nothing happens to the

stock. ashley: no. it's becoming commonplace and people know i think to check their credit reports, check their credit card statements and it's really a fact of life there will be hackers out there. stuart: it's so commonplace. that's the truth. look at luckin coffee. $21 per share. that's a 6% gain. barron's reporting that some hedge funds are taking big stakes in that coffee chain. it went out at $17 a share, went public at $17, now it's at $21. look at fed ex. ubs cut their price target from $161 to $136. ubs thinks they are going down from here. $153 is the current quote. how about apple. after almost two decades, the company's getting rid of itunes. well, that's big news. susan: i'm sure you will miss it. after 18 years, we have the itunes finally splitting up into three different segments so you have apple music, apple tv, and

podcasts. apple music has roughly 56 million subscribers worldwide. still below spotify which has 100 million subscribers. but apple has telestrated this and the bulk of this will hinge on the breakup and remodeling of itunes into three different business segments. stuart: allow me to say i think you missed the point. susan: have i? okay. what is the point? stuart: the point is people don't download music any longer. they stream it. ashley: right. stuart: that's why apple is doing this. susan: that's right. you're right, it's true, people rent music, they don't buy it anymore. something else interesting at the apple developers conference, we might get a new mac book pro and the independent watch. stuart: the producers told me to ask that question, okay? chipotle, put them up there.

they are warning that tariffs on mexico could mean more expensive avocados and the cost would likely, some of it, would be passed on to customers. apparently maybe five cents extra on a burrito. i think we will get a lot of these warnings about tariffs. >> chipotle can pass that cost on. it happened before. the cost of avocados had gone up. i think they will get unscathed through this. stuart: they are completely recovered from the problem they had a year or two ago. they are at $660 a share. facebook is reportedly in talks with regulators about a crypto offering. does facebook have its eye on tapping into the mobile payments business? is that what this is all about? you are an economist. you don't know. >> it's a really big area right now. facebook wants to get into payments. but doing it through crypto is not going to be taken well by the market. we are seeing a bit of a selloff there. stuart: interesting.

i'm surprised. i would have thought a crypto would have been ideally suited as a payments method. ashley: the average paage of facebook is 72, right? stuart: no. >> why not have a regular payment versus a crypto payment system? susan: crypto is down along with alphabet because of antitrust concerns. alphabet has opened up down 4.5% this morning. stuart: right again, susan li. susan: i need to hear that a little bit more. stuart: right again. susan: okay. stuart: 9:40 eastern time. john, murphy, thank you for joining us. very good opening for the market on a monday morning. we got to see the market turn around and go up. on the left-hand side of the screen, we had queen elizabeth and president trump. how does it get any better than that? ashley: it doesn't. stuart: dow is up 71. democrat presidential candidate john hickenlooper getting a rough reaction from the left in san francisco. all because he criticized

socialism. the nerve. more on that coming up in our 11:00 hour. between tariffs and flooding, farmers in the midwest have had a rough go of it lately. in our next hour, agriculture secretary sonny purdue. i want to know what the feds are going to do to help our farmers. and the trump administration has been going after huawei. up next, we have someone who says china could retaliate vigorously by targeting apple. he says the consequences would be very bad. that's next.

2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ )

stuart: we are up 60 points on the dow industrials, 24,800 is

where we are. now it appears the u.s. hard line on iran may be softening a little. secretary of state mike pompeo has been saying things. what's he got to say? ashley: he says the trump administration is ready to negotiate with the country's clerical leaders in iran with quote, no preconditions. this follows up a comment from the president last week where he said he was ready to talk with the iranian leaders and wasn't seeking regime change. you could argue that's overruling a long-time goal of his national security adviser. however, those two comments do signify that there's a little bit of softening when it comes to iran. the president has said i don't want to go to war with iran at all but let's not forget, we have stepped up our military presence in the region and we have made strong -- and of course, the oil sanctions are very much in place and it's putting a stranglehold on iran's economy. however, these last two comments from the president and secretary of state pompeo indicate that there may be a little bit of a softening saying look, let's sit down and let's talk.

stuart: softening is not a word i would equate with president trump and iran but hey, softening works, i guess. ashley: we think. stuart: we do know that the administration, our administration, is going after china's biggest tech company, huawei. our next guest says look, if china really wanted to retaliate against us, they would go after apple. contributing editor for wired and politico joins us. i get the point. apple has vulnerability here. assess for me, please, are they likely to do it? are they likely to chase down apple? >> i think it depends on how much we continue to go after huawei, whether we for instance, there's the extradition hearing for the daughter of the cfo of huawei's founder. this is happening in canada right now. this is not in the headlines because it's a long process. say the canadians extradite her to the united states, she gets tried and put in jail or we absolutely ban huawei. we are close to absolutely banning but there's a little bit of fudge room.

i think it's more of where the tit for tat comes and the idea that we are not vulnerable in the same way, which is a lot of the way in which this trade war is being presented, right, which is we are in the strong position, they need us more than we need them, there's only so much they can do because there's only $120 billion chinese imports from the united states and you know, $400 billion of u.s. -- of chinese exports. that's all true but there's so much more that china has in their arsenal to retaliate and i think we are being blithe about that. oh, we are too important to the chinese domestic economy. stuart: but its vulnerability hanging over apple stock. >> citibank came out with a statement saying half of apple's 19% in greater china is at risk. i think that's probably aggressive but it made a good headline, the citibank analyst got his kudos. stuart: if china did want to rachet it up, what would they do

to apple? >> they can start with just racheting up the social media animosity toward apple which has already been happening over the past weeks and has led to this kind of domestic china, you know, does apple buy huawei within the market. there's a kind of, you know, we had this with auto makers in the united states. buy ford, let's not do hyundai and samsung -- subarus. so there's already that going on. that can have a real effect if it's seen as, if you pick up your phone and people give you really nasty looks because you are buying their phone, right, that has a kind of social impact. there is some evidence already that's happening. if they can rachet that up and say hey, it's not us, it's the social media -- stuart: it would be relatively not easy, but i can see the way to a meeting between president trump and xi jinping at g20 at the end of this month, i could see a way to wrap these things up. >> trump has said in a way that has absolutely upset, including

republicans in the senate, he's tied huawei to an omnibus deal with china. thereby suggesting in fact that there's a dramatically political dimension to the united states campaign against huawei and not just a national security one. they are going to use their equipment to spy on us argument which is not as well proven but president trump has suggested look, this is actually part of a whole, we can work this out, we will drop extradition proceedings against huawei's cfo, we will allow, we will remove it from the spam list. you could also imagine xi jinping saying by the way, your american companies depend on the domestic chinese market. that doesn't show up, apple shares in china are not part of trade -- stuart: that's the kind of two-way street best done between the two leaders right there. >> that of course assumes they will actually meet at the g20. which at the moment is questionable. stuart: thanks for joining us. good point.

thank you. check the dow 30. we turn around completely. okay. the majority of the dow 30 are in the green, that means they're up, but the dow itself is now down some 19 points. that's a turnaround just in the last few minutes. the retail ice age taking a toll on malls across the country. however, build-a-bear workshop have been able to weather the storm. next, we have the ceo with us. i want to know if a new partnership with walmart, is that how they are adapting to the malls? we'll be right back. don't tell your mother. dad, it's fine. we have allstate. and with claimrateguard they won't raise your rates just because of a claim. that's why you're my favorite... i know. are you in good hands? i'm workin♪ to make each day a little sweeter. to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work,

so you can achieve what you're working for.

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

stuart: all right. we are pretty much at break even point, down 11 points on the dow. that puts it at 24,800. that's where we have the dow industrials as we speak. let's talk build-a-bear. see that? they are a publicly traded company. build-a-bear workshop is the full name. by the way, they reported strong earnings on friday. profit more than doubled. look who is with us. the ceo, sharon price john. welcome to the program. >> thank you. it's a pleasure to be here. stuart: i always think of you as a mall-based operation and so you are. >> yes, we are. stuart: you survived the emptying out of the malls and low foot traffic.

how did you do that? >> i like to think it's a little better than surviving. stuart: doing very well. how are you doing so well? when are you in malls? >> we looked at the strategy some years ago when we started to see the foot traffic in malls fall off a little bit on how to diversify our locations mange sure we are also diversifying our consumer base and pushing into e-commerce a little bit differently. stuart: you are in walmart stores. >> yes. in fact, we diversified our retail areas by looking at tourist locations and looking at alternative places where we can expand our accessibility to different kinds of consumers on a scaleable way, and walmart was a wonderful opportunity for us to reach a new consumer base. stuart: but this is not little popup stores. >> no. stuart: they're not temporary. >> no. stuart: you've got a piece of the action in a walmart on a lease basis. >> yes. stuart: now, you're in six walmarts, is it? >> we did six pilot stores last holiday season. opened in october-november of last year. now we are looking at expanding

to up to 25 additional stores. over the course of this year. what's great about it is we have our bonus club program there and up to 60% of the guests that come to walmart are new to our bonus program so the idea -- stuart: fresh foot traffic. >> exactly. the idea of expanding accessibility of build-a-bear to the broader consumer base is working. it's a wonderful time for us to partner with someone like walmart. stuart: forgive me for saying this, sharon, but i think you missed out an important point. >> okay. that's fair. that's fair. stuart: but wait a minute. people want an experience. >> yes. stuart: they don't just want to walk in a store, buy that bear. they want to build it. the experience of building it, that's your strength. >> that's exactly right. stuart: would you like me to do a commercial for you? >> i think you should. i think you should. we believe that the build-a-bear experience is much more a part of the solution of what's going on at brick and mortar retail

than a part of the problem. and we work hard to assure that that experience is special for every single guest that comes in, and what's really important about that is our brand creates a memory for a child or someone that's a child at heart, and that memory creates equity for us, and that equity is very expandable in many ways beyond retail. stuart: surviving and prospering in the era of the retail ice age. workshop build-a-bear, excellent stuff. thank you for joining us. good to see you. president trump has got a busy hour ahead of him. he's heading over to westminster abby to lay a wreath at the tomb of the unknown soldier, as it's called in britain. when he moves, you will see it right here. that's the president and the queen a little earlier in buckingham palace. plus we talk to nigel farage. the president reportedly wants to meet with him while he's over there. we will ask him about that, because he's on the show. i say the brits need

president trump more than he needs them. so don't bite the hand that feeds you. be nice, you brits. my take on that is next. so, jardiance asks... when it comes to type 2 diabetes, are you thinking about your heart? well, i'm managing my a1c, so i should be all set. right. actually, you're still at risk for a fatal heart attack or stroke. even if i'm taking heart medicine, like statins or blood thinners? yep! that's why i asked my doctor what else i could do... she told me about jardiance. that's right. jardiance significantly reduces the risk of dying from a cardiovascular event for adults who have type 2 diabetes . . and exercise.

jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. ketoacidosis is a serious side effect that may be fatal. a rare, but life-threatening, bacterial infection in the skin of the perineum could occur. stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection, ketoacidosis, or an allergic reaction. do not take jardiance if you are on dialysis or have severe kidney problems. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. so, what do you think? now i feel i can do more to go beyond lowering a1c. ask your doctor about jardiance today.

stuart: bang on 10:00. we are some important financial numbers at us. this is breaking news on manufacturing sector i believe. what have we got, ash? ashley: 52.1 anything above 50 means it is expanding t missed the estimates. we've seen a deceleration t was 55 in march, down to 52.8 in april. to 52.1 in may. there is deceleration, but again on the upside it is expansion. this is the lowest reading since october of 2016. stuart: 2016. october, lowest since october of 2016. susan: yeah. stuart: you have numbers on construction spending.

susan: it is important job driver for growth. it remains unchanged. >> what have you got, sorry? ashley: this is a sign that we're slowing down. that is the message. stuart: let's bring in kathy end whistle senior vice president of ubs here in the show. >> thank you for having me. stuart: what do you make of this, the lowest reading in the manufacturing sector since october 2016. >> i think that is the point, we're trending lower, it is not dramatic changes. these are numbers that will show us, they're considered leading economic indicators. they will lead the way into stagnant growth or stagnation in total. stuart: that is not good. >> we have to pay attention to that. stuart: bearing that in mind would you expect the federal reserve to be cutting rate this year? >> i think there are a number of reasons why we expect them to potentially cut rates. the market is expecting two

price cuts before the end of the year. stuart: the market is down, we're down 70 points on the dow. they didn't like the numbers on manufacturing, this low reading. they didn't like that at all. >> it was lower than we were anticipating even though above the 50 mark. anything over 50 indicates we're expanding. below indicates we're not expanding. still the downward trend what we're looking at. that is really important to consider. stuart: would everything change if we have a deal on tariffs with mexico, we don't impose the tariffs or a deal with china before the end of this month, no matter what the deal is? we're down 97 points on the dow. would that reverse? >> i think every time we have a conversation about trade and tariffs regardless which way it is going, which direction, we're absolutely seeing the market react to it very quickly. would i imagine, i would guess, we would see quick reaction to it. i'm not sure for the long term what that would look like. i think we're having issues with price and earnings.

cost of goods sold, things like that, that come into play when we think about the environment, economic environment. stuart: so what you add it up, we have got no good news on trade breaking. we have got news of the manufacturing sector not doing that well. interest rates falling. that is why we got the dow down 100 points? ashley: wow. stuart: no change until we get trade news? >> i think there is probably more positive news has to come in order to see something over the long term. stuart: i would love to see it. >> yeah. stuart: cathy, thanks for joining us. very opportune moment. >> thank you. stuart: check that big board. here is what's happening. the dow industrials as we speak 24,700, down almost triple digits. and now this. i have some advice for the brits. do not bite the hand that you may need to feed you. do not insult a president who may offer you a way out of the mess that you have created for yourselves. you might not like his style or

his language but you need him. that's my advice. i don't know how you will take it. the president and first lady arrived in britain just a few hours ago. but even before we landed our president made it clear he would not stay quiet in the face of insult. london's mayor had just called him a fascist. from air force one trump tweeted that sadiq kahn was a stone cold loser as bad as new york city's dumb mayor but shorter. here we go. a state banquet tonight will be boycotted by socialist opposition leader jeremy corbyn. that is a deliberate insult to our president. mr. trump will not stay overnight in buckingham palace. he will not ride in a open carriage as other state visitors has done. he will not be allowed to address britain's parliament. no. tomorrow there will be big and hostile demonstrations in london complete with an insulting trump

blimp. you know, come on, their welcome should be much, much warmer. britain is in political key i don't see. they can't agree getting out of the european union. prime minister theresa may is on the way out. they need a tray deal with america to replace the european partnership. they need it badly whether they like president trump or not. enter boris johnson. he launched his campaign to be britain's next leader as president trump touched down in london this morning. mr. trump says he wants to meet him. there is a deal in the making there. boris wants out of europe. boris is britain's trump equivalent. boris was born in new york city. boris would love a trade deal. hold that thought. that relationship could be the most important thing to come out of this state visit. ironic, isn't it? the president so many brits dislike is the president who can bail them out of their own mess.

don't bite the hand that feeds you. nigel farage is with us. did you hear that, nigel? what have you got to say. >> i did, i did. it was strong stuff, stuart. obama, the previous american president did not like the united kingdom, did not like the brittish link in any way at all. donald trump's mom was born in the west of scotland. retained her accent to her dying day. trump of course feels that link with this country. he said it in the weekend. you could never have an american president closer to your country. i'm obviously ashamed of the behavior of sadiq kahn and some people here in london but whether you know, ultimately boris johnson can sort this out remains to be seen in my view. stuart: hold on a second, nigel, for the benefit of viewers and radio listeners, i should tell you our audience is seeing president trump and the first lady entering westminster abbey

i believe. they're there for a ceremony. this is the just the entrance to westminster abbey we're seeing. nigel, i want to get back to you. will you meet with president trump on this visit? >> i don't know. i spent some time with the president when i was back in washington at cpac a couple months ago. he has it that he might want to see me. i'm available tomorrow. very happy to see him. of course i'm the only public figure in the united kingdom that backed donald trump during his presidential run. i have been, unequivocal, stuart, all the way through this i think trump is the right guy for america. i think he is the right guy for the western world. he gets brexit. he understands why it matters. he also noticed that when the results came out last sunday of the national elections that have taken place here for the european parliament, my new party come top of the polls. so i hope to get the chance to see him tomorrow, absolutely. stuart: would you like to see

president trump meet with boris johnson, who threw his hat into the leadership ring this morning just as the president arrived at the airport in london? would you like to see him meet johnson? >> i like boris johnson as a person. i'm pleased that five minutes to midnight he joined the leave campaign in that referendum three years ago. what i'm not convinced of is whether boris actually has the courage to pursue the kind of brexit that means we will be free. the president got this absolutely right. don't pay them 39 billion. use that as a bargaining chip. tell them, that on new date, the 31st of october, you're prepared to leave on wto terms. if they want a trade deal, they can ring you. now if boris is prepared to adopt that position, then great. but at the moment i'm not sure. stuart: we're -- when president trump was first elected a couple

years ago the brits were universally opposed to him. insulted him up and down the line. >> yeah. stuart: have thingsed change ad little? i heard a lot of people say we could use a guy like trump over there. >> three years ago i was almost the only person in britain standing you, fighting for donald trump saying he was the right person t was a very lonely place. at the time boris was saying thing i wouldn't even go to new york in case i met donald trump. okay. times change, things move on. what people have seen in this country are governments that get elected on promises that break them. in america, you have a president who does what he said he was elected to do. the he is right, he is earning credibility. his approval rating in britain is 1/3, it was way less than that three years ago. people are beginning to understand that he is the right

guy. stuart: we've been showing pictures of bridges in london with banners all over them calling the president a racist and cruel. there is that blimp that is flying over london which is insulting blimp for the president. i don't think our president likes to see that kind of thing. i don't think he will be happy if he does see it, you know what i mean? >> no. of course i do. amazing isn't it, we have the president of china comes to london, we have arab dictators where they behead people and behave in all sorts of barbarous ways towards women, homosexuals, they come to london, get state visits, no one protests. donald trump comes along, out there encouraging by sadiq kahn, the mayor of london and the whole thing is a disgrace. i must say this, on thursday of this week, after this visit, we are commemorating d-day. stuart: yes. >> we are commemorating five

beaches, two american, two british, one canadian. massive sacrifices that our grandparents generation made, not just us but the whole of europe could live in freedom, liberty, democracy and independence. i just wish sadiq kahn and others actually got the historical context of this trip by trump. stuart: well-said, nigel. our president and the first lady have just laid a wreath of the tomb, it is the unknown warrior in westminster abby. unknown soldier in white hall. that is the difference. the president is in westminster abbey. i am glad you brought up we're close to the 75th anniversary of d-day. i think the brits should remember, without americans and all those soldiers that stormed the beaches of normandy. the brits would do well to remember, if it wasn't for

america, they would be speaking german. we should remind them of that. >> i agree with that. maybe european union, mr. juncker the only reason they have to be abusive about donald trump and everybody else, britain alone, incredibly brave the uk was, the only country in europe to stand up against hitler in the most remarkable way without america, her resolve and resources as you quite writely say we would be speaking german. this is a big week. i hope gently the american president reminds europe of the blood that was spilt by americans in a battle that was not necessarily their own, twice in the 20th century. this is the week to remember that. stuart: nigel, i know you're busy, i want to hold you for a moment here, and ask, what is the reaction of the british media to this visit?

>> i think better than it would have been two or three years ago. i think trump is gaining credibility. i think people are seeing that the attacks of sadiq kahn and others are against our national interests. i think trump himself already today with his performance at buckingham palace, has based with a great degree of dignity and i think there is every reason to believe, despite the behavior by the corbyns, john burkos, these awful people, every reason to believe this week's trip will be a triumph. stuart: nigel, forgive me, i will break away again to ask but the european union. you're a member of the european parliament. you were just elected there. are you going to use your perch to break up the european union from within? >> i will do my best to battle the nation-state democracy for liberty, for freedom, for free

trade, but not to be governed by unelected bureaucrats based in brussels. i will do it on behalf of the brits. i will work with anybody across europe that wants the same thing. let's recognize the nation-state is the right building block from which to do things. not these false supernatural structures fund illegally many cases by taxpayers money, run by bureaucrats we can't vote for, we can't remove. you bet your life. my resolve is as strong as it ever was. stuart: nigel, i believe today you're in your element t was a pleasure to have you on your show. >> thank you very much. stuart: great to know you these past three years. thank you, nigel farage. all good stuff. >> thank you. stuart: can we raise the audio for just a little bit? can we listen to that wonderful choir for a moment, please? ♪

>> [inaudible]. to the church -- stuart: i thought that choir was wonderful. i love those voices. the surroundings. now we are a financial program, but i thought it was good to listen to that kind of music, those voices in westminster abbey with our president and first lady laying a wreath of on the tomb of the unknown warrior. from there the president goes to sign a guest book at westminster abby, along with countless dig dig -- dignitaries over the centuries. ashley: will get a tour of historic abby which is ends significancal. stuart: we'll be following that,

left-hand side of your screen. but i want to get on with the other business we have got involved in here. you will see the visit as much as we possibly can show you. the dow industrials not doing much so far. 45 minutes worth of business. we're down 13 points. that's it. it's a go-nowhere day thus far all over the place really. but a minus eight, that is all we got. 24,800. do we have ben carson with us? i do believe we do. secretary of health -- housing and urban development very much. i'm getting tongue-tied, doctor. maybe you can help me out on this one. you have innovative housing and building technology event in d.c. you're with us this morning. you are showing people on the mall there in washington, you're showing people with technology that can, withstand extreme

weather. can you tell us a bit more about it, please? >> we're having a significant problem in our country right now with affordable housing and also with resiliency. and, on the mall here we have multiple displays that address those two issues. we have a lot of innovation going on in this country, a lot of entrepreneurship. i'm standing inside of a manufactured home right now. it's a beautiful place. it has living room area, three bedrooms, kitchen, couple of bathrooms. and yet, the cost of this is 30 to 40% less than a site-built home. in addition to that, these are bolted down to cement foundation s and to tolerate, tornadoes, hurricanes, much better than site-built homes. you have a cost and resiliency issue here. these are kinds of thinks we need to talk about to solve some

significant problems going on in our society. that is one of the reasons we're having this display. not only people can see this, and disabuse them of the notions that manufactured housing are trailers and trailer parks, seeing what actually can happen here. we also have tiny homes. we have technology, like the bullet tunnelers that can put in infrastructure, plumbing, electricity, the sewage, without disrupting the surface topography or other structures around it. these are modern techniques that will help us to resolve these issues. but it requires us to remove many zoning barriers, that are-based on outdated think about these things. stuart: that is the secret, isn't it? we can always do this. we can build stuff, build it fast, built it cheap. we can do that. but unless you get rid of some of the bureaucracy, some of the

endless rules and regulations, you just can't get it done. that is what you're trying to do, isn't it? >> that's correct. and the nimbyism, not in my backyardism. based on thinking about the '60s and the '70s, the kinds of things that the government did that were not particularly smart. they didn't do a lot of advanced thinking. they didn't do a lot of follow-up and support and it really created more of a problem than it solved. stuart: let me be clear, this is not government housing? this is housing built by private enterprise but used by the government in certain situations? that's what is going on here? >> exactly. exactly. you know, we have been continuing to emphasize public/private partnerships. you know our problems, in this country will be solved by a combination of federal, state, local, non-profits, for profits, faith-based organizations, all

working together. we're much more effective that way and, we create win-win situations that way. it makes all the difference in the world. stuart: dr. ben carson, you don't get enough publicity, that is a fact, doctor. you should come back this program more frequently. ben carson, everyone. one of the world's great brain surgeons before he became a housing guy. last word to you. >> if people want to talk about good stuff, we got a lot of that to talk about. stuart: mr. secretary, thank you very much. left-hand side of the screen, there you have it. what is his title, the gentleman from westminster abbey? is the bishop? ashley: archbishop. stuart: the dean of westminster abbey, talking with the president and the first lady right now, giving the man a tour of westminster abbey. if you have ever been there --

susan: beautiful. stuart: stunning, crammed with history. ashley: yes it is there. stuart: queens are buried there. kings are buried there. scientists. there is thing called poets corner remember that? ashley: correct. stuart: i'm sure he has seen it before, not being given a tour by the dean of westminster abbey. ashley: after this, prince charles is going to host the president, first lady at clarence house. they will have a 15-minute meeting. prince charles has not always agreed with the president on certain issues but i think it will be a warm meeting. then of course the big event tonight is the state banquet at buckingham palace. i believe the president is going to speak before they eat. there is much speculation because he is so, his own man and will say whatever he is going to say, there is a lot of anticipation how that speech will go. he will be very reverent and speak very highly of the special relationship. with donald trump you never know what you're going to get. stuart: no you don't.

ashley: will be very having. stuart: the royals are not supposed to get involved in politics. prince charles is ardent climate guy. ashley: yes. stuart: very strong views on global warming and klein mat. i wonder if that will come up in the meeting between the president and prince charles having tea? ashley: it is unwritten rule you don't get involved in the domestic policies of the countries you are visiting. the president already gone across that line. he talked about boris johnson being a great leader. nigel farage. how they need to get out of the e.u. as quickly as possible. that is interesting aspect. stuart: our coverage is about the president on a state visit, who he is seeing, who he is talking to. i notice some other media outlets in america are concentrating on the protests in london, the blimp and the banners and -- susan: the royal lunch as well. prince harry will be in attendance. there is the controversy about meghan markle of his wife.

comments being nasty. whether or not he actually said it. that is what the other media are focusing on. stuart: president markle suggested the president was misogynist. susan: in 2016. stuart: president said that was a nasty comment or she was nasty. whether he said that or not, i don't know. there is some confusion about that. but nonetheless, that is a spat. susan: she is not at the royal lunch. stuart: she is the duchess of sussex. ashley: you mentioned he is not getting the carriage ride. he wanted that. two other presidents didn't get a carriage ride either. why? it is a excuse security nightmare in open area, for a long period of time, down a long road. there are other reasons he was not being snubbed. it wasn't available to other presidents. susan: buckingham palace is not staying there because of renovations. stuart: that is the excuse.

susan: have you seen buckingham palace lately? i covered president xi xinping's yes to london. he had the, all the pageantry that was involved. he is actually stayed at buckingham palace. ashley: many have. stuart: in the 1960s, i was a student in london i went to the mound, not the mall, the mound. the big red row that approaches buckingham palace. i was there when queen elizabeth in open carriage rode with emperor hirohito who is the wartime enemy. normally when you come down there, cheering queens. deathly silent. ashley: yes. stuart: when hirohito came down the mall, the absolute silence. i wonder what kind of reception he would have gotten. ashley: a mix tur, i'm sure. whatever. stuart: let me check that big board real fast because, again, a turnaround. now we're up 45 points.

got that? 24,860. we'll leave the presidential state visit up on the left-hand side of the screen as long as you got that video. you can see what is going on over there. check google, is that what we're doing? larry o'connor joins you now. larry, i want your take on president trump in london, and the pomp and circumstance? go. >> i think wall street is responding to the first lady's hat, come on. the dow loves that hat. i want that hat. stuart: i think the president look great. >> they both look great and dignified. i love the president going after cnn this morning. we have all experienced this, from the airport, to the hotel when we're traveling internationally i always thought, if everyone around the world knows america through the lens of cnn, they're seeing a very, very backwards impression

of our country. so i actually liked the president attacking cnn on his sweep this morning. it was like a normal american traveling abroad. stuart: hold on a second, larry. we have not covered that yet. i want to do that now. show me the presidential tweet. just arrived in the united kingdom. the only problem is that at cnn, as primary source of news available from the u.s. after watching it for a short while, i turned it off. all negative and so much fake news, very bad for u.s. big ratings drop. why doesn't owner at&t do something? that is what you're referring to. >> he did. he hit a lot of points there, didn't he? that was a pretty loaded tweet. aren't you like me? i travel abroad. i get to the hotel. i search desperately for fox business. where is stuart? i want the real news. come on. stuart: the image that cnn and some others present to the world

of america is really negative. it is just plain negative. cnn this morning has been all over the protests and the name-calling of our president. >> yeah. stuart: i don't get it. i really don't get it. do they hate him that much? >> apparently they do or they think this is the way to get numbers and get ratings. i think the most important part of the president's attack there something i've been talking about for a while. at what point does the coo of at&t, pick up the phone, call the president of cnn, what are you doing over there? if you were making money, there was a lot of profit in this, you were getting ratings and beating competition, fine, go with god. you're not delivering on the bottom line. ultimately this is a business as well. at some point they will need alternate viewpoints, along with other networks that consistently do what you're talking about, stuart. constantly showing this president and showing our country ultimately in a negative light.

stuart: left-hand side of the screen, larry, but our viewers should, this is some of the banners cnn are is using, trump shatters diplomatic etiquette. trump tweets insults as he beginings uk visit that was talking to individual guards men when he inspected them. that was part of it. ashley: also talking about domestic policy in the u.k. stuart: talking about domestic policy in the uk. not supposed to do that. so cnn attacks him vigorously. that will never change. they will never get away from this. >> that is double standard this is very american thing to do. this is the thing the president does. any of us president does, he is talking to waiters in restaurants, talking to the common man, that is what he does very american thing to do. sorry if it shattered diplomatic protocals. we're america. we do what we do. this whole idea of not talking about domestic policies i

vaguely remember barack obama warning the brits right before the brexit vote that if they voted the wrong way in his perspective that england would have to go to the back of the queue, right, how they put it. excuse me the uk would go to the back of the queue. that was talking right before an election, stuart. he was trying to influence the brexit vote. stuart: there is a positive side to this ledger too, a, the president looks good being escorted around london by royalty, and b, the president may indulge in extending trade negotiations with the brits. they need a trade deal. we would like a trade deal. president trump is actually helping them. a lot of positives here ignored by the media. stuart: i agree, stuart. first of all, by the way, as they're going through their turmoil in the tory party as you well know, the prime minister stepping down i believe a day after the president's visit is over, that party and that government would very much like to tell the people of the united

kingdom that they have got a trade deal with the united states that will improve whatever the brexit exit ends up being but ultimately the president needs some good trade news right now too, don't you agree with china? stuart: i would. >> the latest escalation with mexico. stuart: yes, i would agree with that. it would be good to see a little softening, especially with china, but there has been a little softening with mexico. that is not really affected the market that much. i agree with you. i would like to see softening in the hardness of positions on trade. that would certainly help. i do love -- go on. >> we should have a great trade relationship with the united kingdom, shouldn't we? we have a great relationship on all scores. the trade should be a no-brainer. the eu has gotten into the way of relationship. stuart: natural partners. did our president put his arm around the dean of westminster abbey? i guess he did. i guess that is a breach of protocol. the president and the church man right there.

stillcome, a busy day for president. shortly is it tea? ashley: 15 minute voice wit prince charles on clarence house around the corner. that is the schedule. stuart: climate change could be there. ashley: may be. stuart: larry, wait for it. there is a state banquet at buckingham palace. we're told president will speak before they eat. i don't know about the protocol of that. i don't understand that at all. there is no saying what the president might

what the guess course of action is. stuart: i wonder if any of the british press will bring up sadiq kahn, the mayor of london

and the blimp and demonstrations. they may get an earful from this president? >> sadly, if they call in the tabloids, that is what they want to talk about, right? it is sad. it is superfluous stuff. any any politician around the world can make a name for himself, get a lot of media and press being insulting to donald trump. i don't see how that ends up helping their country or city. stuart: well-said. they need us more than we need them. that is my opinion. larry o'connor, thanks for stepping in today. very important you're there. we appreciate it. >> thank you, stuart i will be here tomorrow if you need me. stuart: careful. you might be on. the on the left-hand side of the queen, president meeting with royals, westminster abbey, buckingham palace. you've seen. we're a financial program. a lot going on in finance. for a start the dow turned around. we have almost a triple-digit gain. how about that? we're up 93 points.

24,900. there are individual stocks which are really moving, there is news on them. first of all, look at google. it is gearing up for antitrust probe. the government may be going at them. look at that, stock is down 5 1/2%. big drop for a company that size. kristina partsinevelos is with us now. if the government is coming at you that is a problem. >> fcc, department of justice looking into the cases. right now the department of justice has taken over google. it does not necessarily mean it is an open case. i would like to preface that, reports from various news organizations including "the wall street journal." department of justice taking over google -- just a case. stuart: okay. all right. >> they will look whether there is any monopolistic tendencies that happen within the search engine, you're pushing google

items first, what the eu has gone after google in the past. they will look at advertising revenue, their advertising model as a whole. this could be seen as a warning sign. clearly hitting the stock. having effect on entire tech sector. also politicians, both on the right and left agreed, not necessarily agreed for reasons why, but they looked into maybe big tech has too much control, has too much control over what we see. has too much control over what we search and what we buy and so this is, could open a big conversation politically on either side. at the same time this is seen as major warning sign for these large tech companies that have grown so quickly, so fast. stuart: facebook is down. down because of this same worry about an antitrust probe by the government. >> yeah, we know this happened in europe. in 2017 google was fined $2.7 billion, just over how the shopping habits, the fact that certain google products were put

first. the fact the department of justice could, again could, not certain, could be looking into this. this is a big worry. the ftc looking at amazon. stuart: reason for concern. >> to put it lightly. stuart: to put it mildly. kristina. thank you very much. very important. thank you. >> yeah. stuart: kevin hassett, is leaving his post as white house economic advisor. we'll be speaking to him about his departure in our next hour. it is on the show. colorado's governor, john hickenlooper booed in san francisco, because he denounced socialism. i think the democrats are really split on this. we'll see what congressman sean duffy thinks about it. he isthe show later. president trump and first lady in the u.k. met with the queen of buckingham palace. laid a tomb at the unknown warrior in westminster abbey. much. we have the movements of president this hour. we'll have it for you.

♪

openturning 50 opens theuard. door to a lot of new things... like now your doctor may be talking to you about screening for colon cancer. luckily there's me, cologuard. the noninvasive test you use at home. it all starts when your doctor orders me. then it's as easy as get, go, gone. you get me when i'm delivered... right to your front door and in the privacy of your own home. there's no prep or special diet needed. you just go to the bathroom, to collect your sample. after that, i'm gone, shipped to the lab for dna testing that finds colon cancer and precancer. cologuard is not right for everyone. it is not for high risk individuals, including those with a history of colon cancer or precancer. ibd, certain hereditary cancer syndromes, or a family history of colon cancer. maybe i'll be at your door soon!

ask your doctor if cologuard is right for you. covered by medicare and most major insurers.

stuart: look at this. how did this happen? we're up 112 points and rising. we're up 114. we're now up 111. you get the point. all of sudden we turn around and market goes up triple digits. 24,900 is where we are. by the way "the wall street journal" reports that russia has withdrawn key military advisors from venezuela. whoa. joining us mary anastasia o'grady "wall street journal" columnist, written frequently about venezuela and given us expert. is maduro is in trouble if russians leave and russians are leaving? >> my first rule of thumb is don't trust russia and don't

trust vladmir putin. they are pulling out a group of advisors like contractors they have in there. they will only leave a few behind. i think that their position, russia's position in this, has been unsustainable for a long time. they don't have the money to basically fight this war on their own. and i mean i guess they feel like it is going pretty well, they don't need the guys there. cuba has the place locked down. the united states is showing it is unwilling to use any force. why not save the money? stuart: maybe some of the cubans will be next? because they're broke. >> i think the cubans will basically eat sand before they will leave venezuela. and or they will make their people eat sand before they leave venezuela. venezuela is key for cuba. they're still getting oil from venezuela. an idealogically, having that footprint in venezuela and by the way, don't forget they're also in bolivia. this is not like they're just

hanging on by a thread. they're also in nicaragua. they have a good footprint. there they have a good hold -- stuart: they have no money. they're poor as church mice as we used to say. >> they have the money from the venezuelan oil. they're controlling venezuela. venezuela is still bringing out oil. stuart: what about gas and fuel? >> there is a problem with that, the sense we need to intervene ships in the caribbean. we haven't been willing to do that. remember too, stuart, there is still oil coming up in venezuela. it is completely controlled by the venezuela regime, maduro regime and the cubans. the venezuela people are starving or fleeing. they don't care about any of that. so their idea is that we just hold on long enough, we'll get through this difficult period. after all, we've done it for 60 years here in cuba. we can do it in venezuela. stuart: make the venezuelans do it as well. terrible thing. >> yeah. stuart: you have a piece in the "wall street journal," here today, titled the case for

force. the case for force in venezuela. how to back the regime's opponents without sending in the marines. how do you do it? >> first of all, let's establish that the country is occupied, right? it is not venezuela that is holds us out. cuba, russia is withdrawing contractors. they have weaponized as a country. also the iranian cells. so it is occupied. the u.s. has the legal ability to stand up a venezuelan army. i think you have to start by understanding that the network of cyberspace and communication that cuba uses to control venezuela. and then you have to organize outside of the country. you have 1500, estimated 1500 venezuelan soldiers who defected, are waiting for help. you organize them. you start doing strikes, strategic strikes against certain -- stuart: military strikes? >> but harrassment. not a huge invasion but

strategically until you get some real estate where you can basically establish a foothold, and that will be a platform for all these soldiers who are unhappy but have nowhere to go to join up. that is the strategy. stuart: keep on it. mary anastasia o'grady. >> they're not leaving out force. stuart: without a fight. >> exactly. tough do it smart, not just -- stuart: there will be blood. to get them out there is going to be blood? >> i think so. stuart: mary anastasia, o'grady. thanks for joining us. >> sure. stuart: the dow industrials still up triple digits. bottom right-hand corner of your screen, up 106 as we speak. 24,900 is where we are. farmers are dealing with china tariffs. now the threat of tariffs on goods coming here from mexico. sonny perdue is with us, thing agriculture secretary. good to have us with you.

>> thank you, stuart. stuart: slight delay here. are you concerned about the financial pain farmers are really going through with these terrorists? >> well we are concerned about legitimate stress and economic stress of agriculture based on low prices that have been going down for some time, stuart. obviously come pounded by trade disruptions. stuart: $15 billion which is earmarked for the farmers, i'm sorry, $16 billion, is that enough? >> yes. it will be enough obviously this year to help mitigate some of the lack of trade that we're seeing. again, low prices there is legitimate anxiety across farmland because of lower prices which are not helped by tariffs. they're not the sole reason. tariffs are not sole reason for those lower prices. our american producers are so productive, when it is

profitable they overproduce. stuart: the, these, the farmers so far have given the political support to president trump. they're on his side. they have backed him. how long will they back him for if these tariffs are imposed and they're upped on china and situation continues as is? how much longer will they support the president politically? >> well it is difficult to say. obviously farmers are long-term players. they're not in it. they don't plant in september, harvest in october. they know you have to have a plan. they understand the president is strategic using tariffs as leverage to get china to stop cheating. china has been affected by china's actions for number of years under the radar with non-tariff barriers. it became more obvious over the last few years, not just in the rest of the economy, cyber theft, forced transfer, farmers know that.

they wouldn't do business with a business in their community that had been cheating them for years. they're looking for a long-term plan. that is what president trump is out for. that is why they're supporting him. president trump is supporting them by the mitigation efforts both last year and this year. stuart: okay. sonny perdue, agriculture secretary. as always, thanks for being on the show today. appreciate it. >> thank you, stuart. good to be with you. stuart: we have more tough talk from china on trade. they're blaming us for the trade dispute. they say they're open to more talks but they're not backing down. coming up, we'll talk to a former u.s. trade representative. is he concerned about the prospects for any deal at all? plus, you remember atari. i certainly do. the pong game, remember that? i loved it. they're gearing up, atari gearing up to release a brand new video game console, come loaded with classic games.

can nostalgia beat out cutting-edge graphics from new games and x xbox. we'll talk to the executive next hour. ♪

stuart: there you have it. there is president trump signing the visitors book at westminster abbey. that was just literally moments ago. from there he will move on from westminster abbey, he is having a brief meeting meeting with pre charles, the heir to the thrown. they will have a 15 minute meeting i think it is. ashley: cup of tea. stuart: cup of tea with camilla. ashley: yes. they will get together. stuart: i have to ask, will they be talking climate change? ashley: who knows. stuart: prince charles is an avid global warmer. i can't imagine he can't resist. president trump will not resist giving a response. i wish i had cameras to be a fly on the wall. we're up 70 points, dow industrials at 24,886. now this, china issuing a statement blaming the trump

administration for the trade conflict. it also said china did not backtrack on negotiations. joining us now is michael froman, former u.s. trade representative. michael, that that is and harder line, intransigent line. makes a deal look less likely, doesn't it? >> i think the first rule of any trade negotiation nothing is agreed to until everything is agreed to. so it is not surprises there have been puts and takes on both sides and i think the key now is to try to find a way back to the table. but i think that is becoming increasingly difficult as we see escalation of tension and new tariffs an new actions on both sides that make that challenging. stuart: at this point you would say that it is unlikely they come through with a deal anytime soon, would you say that? >> yeah, i think both sides ultimately want to get to a deal. and you know, i understand there is very significant progress made towards that so i remain optimistic that at some point they can get back to the table.

but the more you have tariffs in place, the harder it is, tariffs are easy to put on and hard to take off. we have 25% tariff in the united states on pickup trucks because of a chicken war with the european union in 1963. 55 years later, 56 years later, those tariffs are still in place. the longer the tariffs are still in place, the vested interests have interest keeping them in place. that makes it difficult to reach an agreement. stuart: do you think the chinese will give in on the major issues like the theft of intellectual property, and the forced takeover of technology? will they give in to the point where they stop doing all of that? >> i think they would be happy to reach an agreement about how much more u.s. exports of soybeans or liquified natural gas they might buy the other issues are more difficult ones, because it pose to the heart of their industrial policy they believe served them well.

if we build a national coalition, with europe, canada, japan, other major emerging economies and others, focus on those issues, align ourselves with forces in china favor of reform, in favor of intellectual property rights protection. china is creating a lot of intellectual property. there is some chance of reaching an agreement there. in the waning days of obama administration we were close to reaching a bilateral agreement covering all the issues. it was called a bilateral treaty. i hope we take the baseline there and work from there. stuart: president trump as threatened to impose tariffs on mexican foods coming into america, starting june the 10th, unless mexico takes action to stop flow of migrants coming towards the southern border. do you think that is a good idea to mix trade with immigration policy? >> i think it is opening up a whole new era because, this is

the first time that tariffs, which, taxes on imports are being used for an entirely issue, separate from a trade policy issue. one thing to threaten to impose tariffs if a country violates a trade agreement or engages in unfair trade practices. using tariffs now in completely unrelated areas, raises a question in other country's mind, why bother negotiating with the united states over trade if you're china or japan or the european union, you think that if you reach a trade agreement with the united states, the next day the administration may decide to impose tariffs anyway over something completely unrelated, it makes it much more difficult to reach an agreement. stuart: understood. thanks for being with us. thanks, sir, very much indeed. coming up president trump's state visit to britain. i was born and raised in england. i am now an american citizen. it brings me great pride to see our president meeting with the

queen. a personal my take coming up next. retailers feeling pain of the trade war in china. now they're facing another hurdle. possible tariffs on mexico. how damaging would that be? we'll be back. i'm working to make each day a little sweeter. ♪ to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪

to make each journey more elegant. ♪ i'm working for all the adventure two wheels can bring. ♪ at adp we're designing a better way to work, so you can achieve what you're working for.

stuart: three years ago, i became an american citizen. well, i was born and raised in england but having been welcomed with open arms here, i had no problem joining the american club. it was my choice. i made it willingly. i like it here. a constitutional republic is right up my street, thank you very much. and it is with great pride that i see our president meeting the queen of england with all the pomp and circumstance that the brits do so well. i love to see president trump inspecting the guard at buckingham palace with prince charles. how american of mr. trump to stop for a chat with individual

guardsmen. i like to see the royals putting on a great show for our guy. i'm proud of our american president. i'll tell you this. i do not like to see the disrespect and there's been a lot of it in britain. the left over there is the same as the left over here. they detest mr. trump and go out of their way to insult him. this rubs me the wrong way. the brits should be reminded that they have brought a crisis on themselves. the people voted to leave the european union but their politicians have been unable to get it done. don't blame trump. he will help you get out of this. those demonstrators in london with their name calling and their insulting blimp, they should be reminded that the president is there to celebrate the 75th anniversary of d-day. without american soldiers, those people would be speaking german. i went back to britain two months ago. it was my first visit there in

many years. i had heard all the stories about how unpopular president trump is there and yes, i heard some harsh criticism. but i also heard this. we could use a man like him over here, or he gets things done, doesn't he. yes, he does. so i am a proud american looking at my president on a state visit to the country of my birth and it makes me happy. there's a good shot that the special relationship between the two countries could be reborn with donald trump and maybe boris johnson. that would make me very happy. the third hour of "varney & company" is about to begin. stuart: i'm going to give you some more of that. i need congressman sean duffy. there is the president with prince charles. right behind him, camilla and the first lady, of course.

i think it's a 15-minute meeting. they will have a cup of tea, that right? ashley: yes, cup of tea. stuart: the cameras are not going to go inside there. i wish they would. i wish they could. because i would love to know what they are going to talk about climate change. maybe they won't talk about it. i don't know. i would love to be a fly on the wall. more on my being an american and rather liking my president going over there with great pomp and circumstance. congressman sean duffy joins us now. he's a republican, from wisconsin. good friend of the show. >> happy to have you as an american. i'm sure you came in the right way, right, legally. stuart: yes. >> i thought it was longer than three years. congratulations. i thought it was before that. stuart: i have been here a long time. >> still feels fresh. stuart: does it? >> for you, does it? stuart: the american flag, i have worn -- >> my mother is an immigrant,

she came from spain and loves this country and gets so frustrated when people don't come lawfully because she did it the right way. she wears her american flag in front of her house, no more patriotic americans than those who have immigrated to this country. stuart: i get annoyed and angry when i hear this irrational criticism of our president and the name calling. did you agree with my premise that they, the brits, need us, america, more than we, america, need them? >> you know that better than me but from my assessment from where i sit, absolutely they need us more than we need them. whether as a military power or an economic power, we are good for the uk and to think when we have the liberal media -- donald trump was invited to come on this state visit and all of a sudden, the left wing media wants to bash him at every turn, he didn't do this right, he didn't do that right, and this thing with merkel, what's her name -- stuart: theresa may?

>> no, i'm sorry, the new queen -- the princess. stuart: meghan markle. >> meghan markle, thank you. stuart: she's a duchess. >> i'm not from there. i don't know that term. but they want to give him such a hard time saying he called her nasty. he just said her comments were nasty and they were, and he said she's a nice lady and he was proud of her but they want to grab on to these little things and just beat the heck out of them, when america is doing so great. our economy is growing and there's a donald trump in the uk, maybe they might have the growth that we have, the prosperity that we have. stuart: i like to see your passion and i'm glad you brought it with you. your game's on today and that's good. let me break away for a second. i want your reaction to something that happened over the weekend. democrat presidential candidate john hickenlooper and john delaney were booed by a california crowd because they

denounced socialism and medicare for all. hold on a second. let's let our audience see this. roll tape, please. >> let me be clear. if we want to beat donald trump and achieve big, progressive goals, socialism is not the answer. i was re-elected, medicare for all may sound good, but it's actually not good policy, nor is it good politics. i'm telling you. [ audience members booing ] stuart: i don't think the audience wanted to hear that. they're split. that's moderates versus socialists. socialists versus moderates. that's a total split. >> i served with john delaney, great guy. you can actually work with him. he's a liberal guy but he actually wants to get things done. i was sad to see him go. obviously i'm not rooting for him to win the presidency but a decent guy. the democrat party has gone so far left, to say that i'm not for socialism gets you booed in

san francisco. have they not looked at what socialism does to venezuela or cuba or any other country that's tried it? stuart: or europe. >> or europe. the greatest system on earth is ours, free enterprise system. it may not always be fair but it lifts everybody up, gives everyone equal opportunity and from where i come from in wisconsin, we are crushing it because of donald trump and free enterprise system. stuart: don't lose that passion. whatever happens, congressman. thank you. >> happy you're american. more like you, we have to bring them in. stuart: can't get rid of me now. check the big board, check the market, please. we are now up, what, 80 points on the dow, 24,800. i want to talk interest rates for a moment. this is very important, what's going on here. the yield on the ten-year treasury has come all the way down. this morning it was down to 2.09%. it's come back up to 2.12%. that is still an extremely low rate. what it tells you is money is pouring into our bonds, our

treasury bonds, our treasury securities, because it looks for safety. all round the world, people want yield and safety and you get it in america. liz: it should help the housing market with the mortgage rate breaking below 4%. stuart: you got it. i want to talk retail for a moment. our guest says these tariffs on chinese goods have been too much for retail customers and maybe the upcoming tariffs on mexico will do the same. matt shea is with us from the national retail federation. you say the tariffs have gone too far. make your case. >> well, listen, i think we are in an economy where things are very positive, consumers are in a good position. leave the market aside for a minute because we know in many ways that's not the real economy. consumer confidence is high, the unemployment rate is low, wages growing. we don't want to run into any self-inflicted wounds or headwinds unnecessarily, and i think the case has been pretty well documented and well made

that these tariffs are taxes. the tariffs on goods coming out of china and now adding another set of tariffs on goods coming out of mexico, not going to be helpful for our economy or for american consumers, and we hope that we can get back to the table and have some conversations and avoid this. stuart: this is politics is important here. when president trump passed the tax reform deal and gave businesses a big tax cut, the retail federation pretty much supported that. >> very much. stuart: has the president lost your political support because of the trade fights? >> no. listen, the president is very smart. the president i think has a plan here and he's got a couple of priorities. one priority, of course, is to ensure that we've got a healthy, strong, growing economy. another priority and he's very passionate about this, is border security and ensuring that we've got a thoughtful approach to

immigration. you were just talking to sean duffy. three years, i'm like sean, i'm surprised you have only been officially an american citizen three years. my grandparents are immigrants. we all want it to be done the right way, the lawful way. the president is very passionate about that. i think your immediate prior guest, the former u.s. trade representative made a good point. the problem is you start mixing tariffs and trade policy with immigration and other policies, it gets confusing for our partners and you want to put these tariffs in place, how do you get them off. we would like to see some straightforward approach to getting these things resolved but the president has done a lot of great things and tax reform is certainly up at the top of the list. stuart: matt, thank you very much for joining us. we will keep an eye on trade and tariffs and see where we go from here. thank you. on a related note, chipotle warning that these tariffs, if they go forward on mexican products, means more expensive avocados, for example. chipotle says that cost, some of

it, will be passed along to customers. the stock is down 2.25%. a new "wall street journal" poll claims health care is the one issue that americans want the government to fix. ahead of the economy, immigration, national security. good story. we're on it. president trump says the white house economic adviser kevin hassett is leaving. the president praised hassett's work and said that he will name a replacement when he returns from europe. we will talk to mr. hassett himself, coming up next, as the third hour of our show rolls on. 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. ♪

stuart: there's a shakeup at the white house. the president's chief economist kevin hassett announcing that he is going to step down. look who's here.

kevin hassett, the man himself. great to see you again. you've got a smile. you always had a smile. >> yeah. stuart: we are going to miss it. >> hey, you know, i'll be back for the private sector on your show whenever you ask. honestly, if you look, it's pretty typical for people to spend two years there and then move back to private sector. that's basically all it is. stuart: i'm guessing, forgive me, but i'm guessing i think you want a life. i imagine that for the last two years you have worked 24/7 and i think you have a family and i think you are leaving for all the right reasons. you want to spend time with the family. am i right? >> you know, you really are right. and you know, i was looking ahead to my youngest is a senior in high school and i missed pretty much the last two years. it just seems like it's a good time to go back to the private sector. of course, i will be working hard out there, too, but not quite like i was in the white house. stuart: are iyou allowed to tel me who is being considered for

your replacement? >> i discussed that with the president last week and i think there are a lot of very strong candidates. the cea has a really big, strong staff as it is so i don't think you need to worry the economic advice is going to go down. stuart: we're not worried. i just was wondering if you were going to break some news for me. >> i know that's your job. but the president tweeted that when he gets back, he's going to make an announcement. stuart: is it going to be somebody in the media? >> it's going to be you, actually. stuart: i knew you were joking. okay. let's get serious for a second. in terms of the economy, do you think that we need a couple of rate cuts from the federal reserve this year? >> you know, i'm not going to give the fed advice but i can say we had a 3% first quarter. second quarter's looking around 2%. i think that the risk outlook is a little higher than earlier in the year. one of the things we saw in the advanced durables number last week was a big decline in aircraft production related to say the boeing troubles. i think i'm very much looking forward to the jobs number this

week to see the labor market momentum is continuing. i think there are more risks to the outlook right now. but the bottom line, though, is we should still get a 3% year as long as job creation and wage growth continue where they have been. stuart: i have to ask you, if you approved of the president's statement saying he would apply tariffs to mexican products if they don't move to seal the border. did you approve of that? >> the president doesn't ask me to approve his statements. let me say that i participated in a lot of meetings where we discussed this, and i think the homeland security experts had thoroughly researched steps that mexico can take, that they should be taking, to help us with this crisis at the border, and i'm very heartened to see they are here talking about it. as you know, the president is very good at getting people to the table and getting concessions. if you look at say the usmca deal, you know, if the itc called it the best trade deal they have ever scored and you know, that's probably not what a lot of people thought when they were looking at donald trump

early on in his administration. but he's very much a trade reformer but he understands since we are starting out from asymmetric positions we have to get people to the table with strong action. mexico's coming. they could have come last week or two weeks ago but now they're coming. stuart: i'm laughing because you shouldn't go back into private enterprise. you should go to the state department. >> that really hurts, stu. stuart: seriously. you can answer any question in the most diplomatic fashion and give no answer at all. you didn't approve of tariffs on mexico. you know you didn't. however, we wish you well in the private sector. i want to see that smile. come and visit any time you like. it's been a pleasure for two years. >> thank you very much. ashley: you tried. stuart: he's a good man. ashley: yes. stuart: now look at apple, pulling the plug on itunes.

why are they doing that? liz: streaming. streaming. because itunes is nearly two decades old, it's an ancient way to download music. apple may be replacing it with its own streaming. the point, though, is you cannot drive people to the edge of insanity with another clunky app that they can't figure out. apple better streamline it and make it easy for people to export their music on to the new app. they want to be an entertainment services giant instead of just hardware so this is the way to go. remember itunes blew up album purchases and blew up record stores like tower and cd purchases but again, people want ease of use. you better make it easy to use for idiots like me. stuart: nobody downloads. liz: they stream. stuart: they stream. liz: that's right. stuart: so glad you know what you're talking about. oh, wait for it. now, this is something i remember.

remember pong from atare? well, they are releasing a brand new -- that's the sound effect, right there -- brand new video game console that comes loaded with a load of classic games. we have the ceo in the studio coming up this hour. how about that. how much would you pay to eat lunch with warren buffett? we will tell you how much one person shelled out. you won't believe how much. we will tell you, next.

stuart: we did the show late last week, the price of oil was about $56, $57 a barrel. this monday morning, it's all the way down to $53. there was some sign that russia had not cut its production and that's why the price of oil is all the way down there at $53're barrel. got it. the price of gas, down slightly overnight, $2.81 is the national average. with oil at $53 a barrel, you can expect that gas price to down pretty sharply in the immediate future. here's another big ticket item. want to sit down for lunch with

warren buffett? pay up. how much? liz: $4.5 million from a mystery bidder for a steak lunch or whatever. we don't know who did the bidding, but stuart, that list price, bidding price, has more than doubled over the last 11 years. stuart: he does it every year. liz: he does it every year and it goes to charity, goes to a homeless nonprofit for san francisco homeless called glide. stuart: oh, that's -- ashley: that's good. stuart: who would object to that? no one. a socialist wouldn't like it on the grounds that $4.5 million -- liz: would you bid on lunch with alexandria ocasio-cortez? stuart: i would put a price in but i wouldn't necessarily bid against myself. let's forget that for a minute. president trump mixing trade with immigration. that stopped the flow of migrants to the southern border or there would be tariffs on everything coming in from mexico. next we talk to daniel garza about that approach and whether or not it will work.

next, market watcher heather zumaraga says mexico is a national security issue, not a trade issue. and if china trade isn't resolved, the markets are headed lower. she makes her case in a moment. i'm working to keep the fire going for another 150 years. ♪ for beauty that begins with nature. ♪ to make connections of a different kind. at adp we're designing a better way to work,

so you can achieve what you're working for. 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. it's the only one of its kind that can be taken every day. it gives us more time without cancer progressing. verzenio is the only cdk4 & 6 inhibitor approved with hormonal therapy that can be taken every day for postmenopausal women with hr+, her2- mbc. diarrhea is common, may be severe, or cause dehydration or infection. before taking verzenio, tell your doctor if you have fever, chills, or other signs of infection. verzenio may cause low white blood cell counts, which may cause serious infection that can lead to death. serious liver problems can occur. symptoms include tiredness, appetite loss, stomach pain, and bleeding or bruising. blood clots that can lead to death have occurred. tell your doctor if you have pain or swelling in your arms or legs, shortness of breath, chest pain, rapid breathing or heart rate,

or if you are pregnant, nursing, or plan to be pregnant. common side effects include nausea, infections, low blood cells and platelets, decreased appetite, headache, abdominal pain, tiredness, vomiting, and hair thinning or loss. my relentless reason: it's them. my choice with my doctor: it's verzenio. ask your doctor if everyday verzenio is right for your first treatment.

brad, i've got an idea for a song. nationwide has this app. you can pay your bills, even start an auto claim. so what i was thinking... let me guess. ♪ start a claim right from your app. ♪ have you been looking in my notes? ♪

stuart: stock market shows a gain of 61 points. let me digress for 15 seconds. if you are a "jeopardy" fan, watch tonight. james holzhauer loses. okay? i will just dump that on you, ladies and gentlemen. i put it out there because it's news, it's important. i'm interested and i think you are, too. ashley: by the way, spoiler alert. stuart: by the way, spoiler alert. i should have said that. you're right. spoiler alert. too late. let's get to the proposed tariffs on mexico. heather zumarraga with us now, market watcher. i know you have got an opinion on this. do you think the president should have mixed immigration policy with trade policy? the way he has? are you on board with that?

>> well, the president is using all of the tools available in his toolkit to push back on mexico but this, like you alluded to, is different from the tariffs that we have on china right now, because this is not an economic trade issue. this is a national security issue and president trump and the administration is putting pressure on mexico to stop, to help halt illegal immigration and to help stop that. at any given point we have 100,000 people that are crossing the border from mexico to the u.s. and breaking mexican law first before they break u.s. law, and that's why the president is using these economic tools at his disposal that happen to be tariffs. stuart: you are a market watcher. do you think there's going to be any significant move up for stocks in the absence of a china trade deal or a settlement with mexico about their tariffs? can the market move up unless

you've got a deal on trade? >> unfortunately, the market cannot move higher unless we have a deal on trade, and not just china, but now with mexico. the fact that president trump tweeted last week that he would impose 5% tariffs on goods that we import from mexico sent the markets lower. if you think about it, we buy $346.5 billion worth of goods from mexico every year so now the markets are saying there's not just uncertainty with china, but there's also uncertainty with our trade with mexico as well which could threaten the usmca deal. stuart: are you prepared to just stay put, don't buy anything, don't sell anything, just wait for a trade deal of some sort? is that what you're doing? >> not just waiting for a trade deal, but if you are an investor, you want to avoid not only stocks and companies that have exposure to china, like semiconductors, for example, but if you want to avoid the mexico tariff situation, then

unfortunately, you have to shy away from u.s. auto makers right now. the detroit auto makers, you think about gm or even volkswagen and toyota and nissan, that can be hit hard from these tariffs. we import about 65% of car parts from mexico so if you are an investor, i think it would be safe to stay away from that area right now. stuart: heather, thanks for joining us. we appreciate your opinion on this because it's a very important issue. thanks very much indeed. i want to stay on the issue of tariffs and mexico, and bring in daniel garza. what you heard my conversation with heather there, what's your position on tariffs on mexico if mexico doesn't fix the border problem? >> well, it's unnecessary. i think what it is, it's going to be all pain and no gain. it's a difficult situation already when you have security at the border complicating it now to the tenth degree with

trade issues as well. what that does also is look, i think mexico can ill afford to get in a trade war, of course, because they have cartel issues, they have trafficking issues, gang issues, but neither can america. texas, that's our number one trading partner. california -- stuart: wait a second. the president is asking for some kind of action on the part of mexico to stop the flood of these migrant caravans just heading north all the time. surely there is something mexico can do. >> we had this discussion with mexicans from mexico awhile back. the way we took care of that was to increase trade with mexico because you actually created wealth in mexico and actually also reformed the immigration laws. democrats and republicans come together -- stuart: they're not coming together. they never will come together as long as donald trump is in the white house. it's never going to happen. >> there are things we can do. there is asylum process.

we can fix it, where people can apply for asylum in their countries of origin or we can increase the number of judges at the border, create a border court system -- stuart: that is not -- he asked for $4.5 billion to fix the facilities at the border. democrats will not give him that money. the courts will not allow him to send migrants back into the country where they want to apply for asylum from. >> remember, barack obama was also frustrated and he took aggressive action and now he's made the situation even worse. stuart: is president trump asking that much from mexico? i don't think so. >> well, look, mention copixico. what's happening, they are having these kind of discussions through diplomatic agreements i think is the best route to take. there are things we can do to actually improve the situation at the border, working with mexico as opposed to these punitive threats that again, it's the low income people that

growing to suffer the most because you will raise the prices, lessen choice, lose jobs and actually you are going to temper the economy in states like texas and along the border area. $20 billion of products and services went through laredo just in march. stuart: so why can't the mexicans do anything? really, nothing? they can't do anything? really? >> i think that's why it's positive that they are having these discussions right now in mexico to i think -- stuart: come on, daniel. you are a great guy. >> thank you very much. stuart: you are a fine guy but come on. they can't do anything? >> you know, look, we need to -- stuart: they can't intercept a caravan or two? they can't send their troops down to their southern border, seal it, close it up? >> let's work with mexico to help them do that. to allocate more resources -- stuart: we are urging them to do it. we are telling them if you don't do it, there's trouble. >> what i would like to see is actually increased trade.

stuart: we all do. we want the border fixed. >> increasing it from 5% to 25% by october would be economically devastating. stuart: so mexico should do something. >> look, i think to his credit, they say they actually want to take measures to take these actions the president is calling for to avoid this kind of tariff war going back and forth. stuart: hold on a second. we are going to stay on politics because i like you. >> i appreciate that. stuart: now, there's a new poll, "wall street journal," americans want their health care fixed. 24% of those polled say it's the most important issue going into 2020. what's the republican answer to that? >> i would hope that it's a market-based solution, that they steer away from -- some of them are actually proposing they would do away with

employment-based health care insurance. which would be i think devastating to americans. look, latinos, for example, have suffered under the obamacare situation because what they were promised was health insurance that would give them health care access, and what's happened is that deductibles went from $500 to $6,000 under the silver plan, out of pocket costs soared, premiums soared. so they have insurance, some of them, but when do the insurers pay? it's been the consumer that's been paying all along. so it's all right to have insurance but if you don't have health care access, then you are defeating the purpose. what we need is increased competition. you erase state-to-state jurisdiction across state lines, you need catastrophic pools as well for those with pre-existing conditions. these are all good things. stuart: tort reform. >> tort reform as well. exactly right. so the consumer pays less and

has increased access. only market competition can allow for that. stuart: you're on the right track, so long as you stay away from what mexico can and should be doing. >> we fixed it before with mexico so we can do it again. stuart: i hope we do. mr. garza, thank you very much indeed. >> always a pleasure. stuart: google and amazon, let's have a look. they are way down. according to the "wall street journal" the justice department is prepping an antitrust case against google. the ftc is watching over amazon. rumored to be taking similar action. look at them. $61 down on alphabet, google, and $56 down on amazon. how about that. time to check tesla. keep in touch with that. we have news that chief elon musk has lost almost $5 billion this year because of tesla's decline. tesla this morning is down three bucks, $182.

quest diagnostics, they are a medical testing lab, announced millions of patients may have had their personal information compromised. it's a very big data breach. we will have details in a second. president trump continues his tour of britain. actually, state visit to britain. we are headed to london next. our edward lawrence is there. is our president having tea with the brits? the answer is yes, he is.

stuart: another big data breach, this time it's from quest diagnostics. they are the guys who run a lot of those health tests. what's the damage? liz: 11.9 million people saw their bank account info, medical information and credit card numbers stolen and more.

they came in through a back door. american medical collection agency was the billing collector working with quest, broke in via them into quest. you know what the issue is? this is a big issue. it is medicaid, medicare, social security fraud. that's what identity theft is really about. $1.2 trillion in improper payments given out by the u.s. government via those programs and more, why, because of things like identity theft. stuart: because of that. liz: that's what's going on. when you see data breaches like this, the u.s. government, congress needs to step up and say wait a second, when you have massive data breaches like this and information stolen, why, it's because they are going to the government to steal from the government and the u.s. taxpayer. stuart: look at the stock. why is the stock up? up over a buck when you've got a data breach on your hands. ashley: it happens all the time. it doesn't matter who. stuart: it doesn't rebound on the company which lost the data. liz: probably because their insurance will inoculate itself

from it. who is not inoculated is the u.s. taxpayer and the consumer. stuart: nobody pays the price except us. that's what happens. let's get to london. edward lawrence is with us again. he's following the president on the state visit over there. what's on the president's schedule today and tomorrow? reporter: right now, he is having tea with prince charles and camilla. they are wrapping that up as we speak. any minute he could be leaving there. he's going to go back to westminster abbey to get on to marine one and fly to winfield house, where he will get prepared for tonight's state banquet. over the next three days, he will have two dinner meetings or the trump kids will have two dinner meetings, a chance to meet with the royal family. this is one of them, the state banquet hosted by the queen so the president will be getting ready for that. tomorrow on tap is more politics. he will talk with theresa may, the prime minister here, prime minister who is actually leaving on friday is her last day as head of the political party but she is prime minister until they end up replacing her. he's going to talk about a

number of different things, security among them. he's going to talk about huawei. he's also going to talk about or he's going to hear about climate change. the prime minister, a spokesman says, is expected to talk to president trump about climate change and try and get him to change his position related to that. so a lot happening between today and tomorrow and the president as you know has had a huge schedule already today. stuart: they are trying to get our president to change his position on climate change. i would love to sit and listen to that one. edward lawrence in london following it for us, thank you, edward. i'm sure we will see a lot of you in the next couple of days. atari, video game people, they are releasing a brand new video game console loaded with classic games. can they compete with the other consoles that are out there now with these fancy graphics and all the rest of it? i've got the atari ceo in studio and he's on next.

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

stuart: breaking now, happening now, the federal trade commission, the ftc, will have jurisdiction over facebook's antitrust case. that's important. the department of justice as we told you earlier will preside

over google. both of those stocks and amazon, way down on that news. look at facebook down now seven bucks at $170. you get it all on this program. now we are going to talk about atari. i remember this very, very well. way back in the '70s and '80s, i was playing a game called pong. okay? ashley: high drama. stuart: i loved it and i played it back then. well, atari has a new console out and what they are doing is they are getting, they are loading it with some of those old games that you can still play them today. so we have with us today fred chesnais, the ceo of atari. that's the title? >> yes. good morning. stuart: this is the console? >> this is the first prototype of the console. stuart: wait a second. if i buy one of these things, i can play pong again? >> yes. definitely. definitely. stuart: how much? >> so you know, it's first and

foremost, we are still making games. stuart: i know. you have to tell me you do more than just bring up the old games. go on, tell me. >> we are mobile and online so we are renouncing the old classic games so that's still the dna of the company but we are very proud to announce next week we will be releasing end of the year and early next year, releasing this new console. what is it exactly? first, we pay homage to the history, we still have a very nice design, you know. stuart: i'm buying it for pong. look, it can do a lot more. i understand. it's not just the old games. it's all of the new games. and you can stream them, i think, right? and it's a computer to boot? >> it's a computer to boot. you have two modes basically. first it's a gaming and video console for the living room. the first use of it is you have what we call -- mode based on

linux and you can access classic games, new games and much more, music, movies and basically every type of application for the home. so it's really like first a console for it. on top of that, this is also what's new and different from the other consoles, you will be able in sandbox mode, you would be able to download a new or any operating system if you want to download microsoft, if you want to download an android system, we will allow that, and basically with that sandbox mode, you can do pretty much what you want. of course, this is where we think this is new, this is really mainstream and we are very happy, we will be showing it next week and it will be end -- you still have exclusivity. stuart: if i get one, can i play space invaders? >> yes, definitely.

stuart: can i play pacman? >> pacman is not atari. stuart: can i play it? >> you would be able to have it through sandbox mode. stuart: your entourage standing over there is appalled i'm bringing up pong and space invaders and pacman. >> this is american culture. stuart: which demographic are you going after? would you really go after retired people like myself, seniors like myself, on the grounds you can play pong and space invaders and pacman? >> i think we are going with a very broad audience. everyone will basically need something in the living room to do what i've just explained, would be very interested to look into what we're offering. the fact we have two modes, where you can have a lot of applications and sandbox mode, where you can do what you want. stuart: you are killing me, fred. you are killing me. can i just plug it in and play? >> yes. definitely. definitely. stuart: do i have to have all kinds of passwords? >> you will need a password of

course, but only one. because it's your machine. stuart: do i need my grandchildren to hook this thing up? >> i would definitely think twice because it's always good to bond with the kids and the grandkids so yes, just for that, yes, that's what i would do. what we have learned is senior people tend to play a lot of pong as a kid, with the grandkids. stuart: you think i would bond with my 4-year-old twin granddaughters playing pong? >> yes, definitely. stuart: if i buy one, will you supply a technician to come to my house and install it? >> 24/7. stuart: you're on. how much? he's not going to tell us. >> we are going to have different systems. but the entry point will be $249. then we have also, we have also rebooted and redesigned the old classic joystick so that will be announced later this year, that there's a new joystick.

stuart: $249. >> that's the entry point. then you can move up to pricier options. stuart: you have a sample which you are leaving here. >> i'm not leaving the sample. stuart: you are not giving me that sample? >> not yet. stuart: fred chesnais, thank you very much for bearing with me about pong and space invaders. i do think that's very exciting. you are bringing a whole bunch of stuff together. >> thanks for having me. stuart: you're welcome. all i have to do is plug it in. thank you, fred. you're all right. more "varney" after this. promise. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

you need decision tech. mthat i'm 19% native american,d specifically from the chihuahua people. the level of details it gives you it's, it's incredible. 20 million members have connected to a deeper family story. . .

stuart: president trump's visit to england. he will be there for three days. it's a state visit. he arrived this morning.

looking at a shot panning across the london skyline. what they're looking for marine one, the president's helicopter. i believe they found it. it is about to land on the grounds of buckingham palace which is large garden right in the center of london. stuart: big enough for a helicopter it will land and fly off to wind fieldhouse. >> that is the residence of the ambassador woody johnson. that is gorgeous home on west side of regents park. he will go there to prepare for the banquet. stuart: flying around in helicopter, the president avoids the nasty signs appearing. >> five banners hung by amnesty international. they're facing the u.s. embassy i believe. stuart: i don't care for that. >> the bulk of the protests are scheduled for tomorrow. they vowed to shut down and paralyze central london. the president will not care.

stuart: my favorite spot of the whole morning, president trump involving individual guardsmen, guys in the bearskin hats, red tunicks, conversation, breaking protocol. liz: we need a lip reader. stuart: i love it. neil, it is yours. neil: thank you very much. you've been hearing what is happening at corner of wall and broad with stocks. what is happening with interest rates. we backed up. we started a at two year lows for the 10-year. now we're at 2.13%. think of this a little more than a few weeks ago, that was sitting north of 2 1/2%. when something like that generally means is that it is going to be cheaper to borrow. it means you will get less bang for the buck if you save. if you're in debt your ship has come in. if you want safe interest maybe it just left. any interest rate sensitive issues that were taking it on the c