maria: markets are opening lower this morning. thanks to jackie deangelis, tom bevin, jack hough. big day. >> yep. maria: we'll be watching earnings. thanks, everybody. have a great day. seize the day. thank you for joining us. "varney & company" begins now. ashley webster in for stuart this morning. take it away. ashley: thank you, maria. i'm ashley webster. stuart is back tomorrow, i promise. let's recap, shall we? friday's strong jobs report, 224,000 jobs created in the month of june. markets looking to open down, though. why? well, we'll get to that in a minute. right now, the futures show down 100 on the dow, down also on the s&p and the nasdaq. why lower? two dow stocks for a start. boeing and apple, pulling down that average. also in focus, president trump's message to the fed. he says markets would take off like a rocket ship if the fed cuts rates. by the way, mr. trump's job approval at an all-time high. one of the main reasons, you guessed it, the economy.

to the west coast, where the earth continues to shake in southern california. we pose this question. this is the precursor to the big one we have all been warned about? "varney & company" starts right now. looking, cutting, shooting, scores! ashley: that was a beautiful goal. the u.s. winning 2-nil, celebrating their fourth world cup victory. by the way, aoc tweeting this. at this point, we shouldn't even be asking for equal pay for the united states women's national team. we should demand they be paid at least twice as much. there you go. here is president trump on the victory. >> we're [ inaudible ].

we have to see who's taking in what. i don't know what those numbers are. i would like to see that. but again, you have to look at the great stars of the men's soccer, the great stars of the women's soccer. ashley: that is a question, equal pay, let's face it, the women's team so much more successful than the men's team. do they bring in the money? susan: well, i mean, if you think about it, they're number one ranked in the world, a record fourth world cup, sponsorship has increased since 2014-15 when the men last played a world cup, mind you. so yes, it should be equal pay. all 28 players on the team have sued the federation saying why should we make 38% of the compensation of a men's player when we are so much more successful. the numbers really prove it. revenue has shot up and the men can't even make it to the world cup themselves. hello? ashley: i think they have a strong argument. susan: i think so. ashley: interesting to see how

that plays out. susan: should be obvious. ashley: yes. thank you, susan. let's take a look at the futures. seems obvious we will open down at the opening bell by 100 points on the dow, down a quarter of a percent on the s&p, down half a percent nearly on the nasdaq. stocks started to move lower friday after that strong jobs report reduced hopes for a fed rate cut. joining us, our good friend market watcher dennis gartman. dennis, seems like the market wants it all, as it always does. it wants a great economy, wants the trade deal with china. oh, yes, what about the fed cutting rates. we will take that as well. >> well, the odds of a fed rate cut have gone down rather dramatically in the course of the last 54 hours or so, given the numbers on friday. walking in last week, it was interesting to me the consensus was there would be at least three rate cuts before the end of the year, certainly there would be two. now after the jobs numbers on friday and listening to what the president of the cleveland fed

had to say on another television station this morning, the propensity for a rate cut has obviously been diminished. however, we are at extraordinarily low levels of fed funds. we're at extraordinarily low levels of the two year, five year, ten year, 30 year bond. how much lower can rates go. are low rates really the driving force and can you actually have a bull market in stocks with interest rates going higher. the answer is yes, you still can. ashley: it's funny because morgan stanley says weaker growth, they believe, will offset whatever the fed does. if it indeed comes back with a rate cut maybe by the end of this month. so morgan stanley says sell stocks right now because growth is going to be hard to achieve. >> it's going to -- it will be very difficult to replicate 3% gdp growth again for the next year. that's almost a given. that's not going to happen. you can't continue the kind of growth we've had for the past year and a half forever into the

future but can we have modest growth, yes. am i bullish on stocks, well, i have tried several times in the course of the past year to be bearish. that's proven to be utterly ill-advised and unprofitable. so the trend is clearly from the lower left to the upper right. we will walk in one of these days and you were talking earlier on about the big one in california. the way this bear market or the way the bull market will end, we will walk in one day and there will be some geopolitical circumstance that's occurred, some natural circumstance that's occurred, the dow will open 500 points higher, the s&p will open 50 points lower, and at that point you have to say the bull market has ended. but until then, it's still a bull market. until then, weakness is to be bought. but i got to tell you, after last week's earthquakes in california that were rather consistent, my antenna are up. ashley: we have been warned. at least we are ready for something. dennis, given that, where else

does the money go and what are you buying right now? what areas do you like in this environment? >> the one thing that i have been buying, remember i trade only from my own account, it's my money, i have my money at risk every day, and what i have been buying for the past several months are high yielding corporate debt securities that have been moving from the lower left to the upper right. they have been paying me monthly dividends on a very consistent basis, 7%, 8%, 9%, 10% on some of them. yes, i have risk. there's not a question about it. but when you are being paid on a consistent basis with instruments that are extremely liquid so that you can get out at any one time, quite honestly, that's the only place i'm putting my money right now. i own a fair amount of gold and have owned gold for several years and i was very impressed by what gold did on friday, even though it broke hard, it rallied hard off the bottom and this morning it's trading better. so owning bonds and owning gold seems to me to be the proper place to be. ashley: all right. we have listened to you, dennis gartman. your antenna are up. we can't see them but we believe

you. thank you very much. appreciate your time this morning. now this. president trump's approval rating reaching a career high. according to the latest poll from abc news/washington post it stands at 44%. let's bring in bill guerin. pretty good, right? >> it's very good for donald trump. disapproval is still over 50%. but this is, look, this is early on. i don't think the game in 2020 is who likes donald trump. it's do you support what he's done or do you think that the democrats have a better game plan. ashley: that's the question. he appeals to his base. i don't think he's lost many people on his base. he continues to hammer away on immigration, talking of which, president trump, if we can just move up the prompter, president trump still pushing for this citizenship question on the census. let's listen to this first.

i will get your reaction. >> they're sending $15 to $20 billion on the census, asking everything except are you a citizen of the united states. how ridiculous is that. so we are moving forward. we have a couple of avenues and our attorney general's doing a fantastic job in many ways, and i think he's got it under control. we can do a memorandum, we can do an executive order. we are looking at different things. but there are other alternatives and again, i believe our attorney general is a fantastic man and i think he's got it very well under control. ashley: what's your thought on this? i mean, is this a waterloo issue for mr. trump? >> i think it is, and i think in a way the supreme court has made it an issue, with a very bad decision. a really awful decision, in which we are going to get into motivations. in other words, the government can do something that's perfectly legal within its authority but because someone questions whether that's their real motivation, it goes out.

i also think this is not looked at in a void. people are looking at the president talking about i want an accurate count of citizens and the democrats at their convention, their chief constituency seem to be people who are here illegally. they didn't even really mention working people that much. so i think this actually helps donald trump. ashley: but if someone who is in this country legally is asked are you a citizen, what are they going to say? if they are here illegally they are going to lie, yeah, i'm a legal citizen. you don't have to prove it. you are just being asked the question. when you get down to that level -- >> look, this is a very basic question. tells you something when people go through all sorts of contortions not to know. i think it's a reasonable question for a census. ashley: i want to ask you about what's going on on the democrat side. i feel like the crack is getting wider. we had the spat between nancy pelosi and aoc and the four members who voted against that

$4.6 billion spending bill, then she started questioning well, whatever this social media thing is. not only is it a generational thing but it's a real crack in the party, is it not? >> joe biden was supposed to bridge that crack, right. he was supposed to be the guy that was part of the obama administration, a progressive administration, but kind of had roots into blue collar workers, the kind of people that may have voted for president obama twice or barack obama twice, and then voted for trump the last time around. it doesn't seem to be working that way. joe biden keeps apologizing for everything he's done in the past and he looks very brittle as he does it. again, the whole thing, what democrats really want is not purity of ideology but they want someone who can beat donald trump. that doesn't come across in the debates. ashley: it comes across as very wounded. >> that's just the whole tenor of the debate. ashley: i understand, but with biden in particular. as a result of the attack he received from kamala harris,

she's coming up in the polls. >> right. he looks weak. look, i'm not a supporter of joe biden but do i think joe biden was racist, no. it's insane. it's insane -- i think he would have been a lot better off standing up to it and i will give you another example. on the fourth of july, biden was elsewhere marching and he attacked the president that he's going to use this parade for political purposes for his ego. well, the president didn't do that. who did that? joe biden. wouldn't joe biden have been better off for himself when asked about that say i wish everyone in washington to have a good parade and celebrate the fourth of july. we are all americans and i'm not going to be political on this day but he did the opposite. ashley: he wouldn't have taken your advice. thank you. appreciate it. good stuff. let's take a look at the futures ahead of the opening on wall street. as you can see, been in the same range, the dow off about 100 points, the s&p down quarter

percent, nasdaq also down close to half a percent. meanwhile, this. big wins for the pro-business new democracy party and the new prime minister says guess what, he's committed to lower taxes and new jobs. lots to talk about. netflix possibly adding commercials to its programming. a new survey shows that most customers would be okay with the change. could you be seeing ads for eggo waffles next time you stream "stranger things"? maybe. we'll get into it. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

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ashley: iran says that it has broken the imposed limit on uranium enrichment. president trump issuing a stern warning. roll tape. >> iran's doing a lot of bad things and remember this, the obama agreement which was the most foolish agreement that you'll ever find, it expires in a very short period of time. iran will never have a nuclear

weapon. ashley: that's the president. joining us now is kurt voelker, former ambassador to nato. thank you very much for joining us. is this a move of desperation on iran's part? they are really pushing it because they are feeling the squeeze of the sanctions. is that what this is? >> i think that's exactly right. i think this u.s. policy of maximum pressure is working. it is starving the regime of resources. they want those resources to keep up the regional role. what they are trying to do is lash out. they are raising enrichment, attacking ships, acan tattackin tankers and trying to get europeans to weigh in to put pressure on the u.s. to stop this. unfortunately for iran, i don't think that's going to work. ashley: you mentioned europeans. they are really kind of -- they have the pressure on them, they will be meeting with russia and china, the other parts of this deal, and what do the europeans do, do you think, do they stick with the u.s. and abide by the sanctions? seems to me if you are going to

pick a side, surely you pick the u.s. over iran. >> i think they are going to try to drive it right down the middle which will be difficult for them. the businesses in europe, the companies, they face great risk of losing their access to u.s. market and financial systems if they don't follow the sanctions, so they will. the governments, on the other hand, will try to find some way to stick with the agreement in the hopes that they can convince iran to stick with its part of the agreement. that doesn't seem likely either. ashley: iran has threatened to not only go past acceptable levels of uranium enrichment but have hinted they will start breaking commitments elsewhere. where does this thing go? how does it play out, do you think? >> i think this will force a new negotiation about what the ground rules have to be going forward at some point. but it's going to take a lot of confrontation to get there at this stage. iran, as the president said, iran was ultimately going to be free of these limits anyway when the agreement expired. this is just forcing the issue now so that we can confront what happens if iran continues to

drive down this direction and ultimately it's not in anyone's interest, u.s., europe, russia, china, anyone, for iran to actually get a nuclear weapon. ashley: we talk about pressure on europe but what about the pressure on iranian leaders? their economy is in freefall, the oil sanctions, economic sanctions, sanctions on those people at the top of the iranian government, you say they are desperate and lashing out, but they are under a lot of pressure and how could this play out with regard to the people of iran themselves? are they going to get fed up? >> well, they are fed up. there is very little love for the iranian regime among the iranian people. the problem is that the iranian regime uses ruthless force to take out anyone who is seriously considering going against the regime. at a certain point, i think that the iranian regime itself is going to have to come to terms with europe and the united states if they want to stay in power. otherwise, i think they are going to lose the means to continue to do so. ashley: it's going to be fascinating to follow. ambassador, thank you so much

for joining us this morning. really appreciate it. all right. let's take a look at the futures, pointing downward at the start of the markets this trading week. we will be opening in about just over ten minutes. as you can see, all three major indices pointing down at the open. this as well. starbucks in damage control mode after a group of police officers were kicked out of an arizona store. one customer complained that the cops were making them feel uncomfortable. we will tell you what starbucks is saying, after this. 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,

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ashley: right now, boeing and apple are poised to be a drag on the dow at the opening bell. both down about 1.5%. boeing losing a saudi jet deal to rival airbus and rosenblatt securities downgrading apple to sell, saying the fundamentals are deteriorating. as you can see, that stock down 1.5%. both stocks down, in fact. now this story. starbucks. police officers are asked to leave one of its stores. what happened? susan: this weekend, think of #dumpstarbucks an and #zerorespect. this stems from a case in tempe, arizona. six police officers walked into

starbucks as they usually do, going in to buy their coffee and to enjoy their lattes. one of the regular customers, a caucasian gentleman, walked up to the barista saying i feel anxious, nervous, uncomfortable as the police officers question the baristas on multiple occasions. one of the baristas walked up to the police officers and asked them very politely to maybe leave the premises as one of the customers was feeling uncomfortable. well, of course, you have starbucks statement saying when the officers entered the store and a customer raised a concern over their presence they should have been welcomed and treated with dignity and the utmost respect by our partners. instead they were made to feel unwelcome, disrespected which is completely unacceptable. of course it's completely unacceptable. some of these gentlemen served our country overseas. these gentlemen are in uniform, they should be welcomed especially on july 4th which is a day of independence of patriotism. ashley: that wasn't company policy.

obviously that person felt uncomfortable, they were free to leave. i can't understand what that's about. susan: for one customer, you kick out six police officers? who are serving the nation? to me that just seems like a miscalculation. ashley: at least we got an apology from starbucks. take a quick look at the futures. we will open in five minutes on wall street. it's going to be a down open. all the details and the star crew to talk about it after this.

ashley: office space manager called we work is selling debt ahead of its ipo. guess what, this company loses money. susan: that's right. that works in unicorns, doesn't it? maybe not on public markets, though. they are learning lessons from uber and lyft which are still trading below their ipo price. they are deciding to go to the debt markets instead, raising maybe $3 billion to $4 billion in the months before their ipo. this could expand $10 billion over the years but this company lost $1.9 billion last year. we know what wework does. they lease office spaces, renovate them and they say, their underwriters at least, the spin on this, jpmorgan, goldman sachs, this is to showcase our long-running lease agreement and the cash flow from the company before we actually have to hit the public markets. you wonder why they need to ipo.

they are a nine-year-old company. if they can raise that kind of money in a debt market -- ashley: why go to the market. susan: i guess what do they want? i guess they want more capital? ashley: all right. here we go. they are laughing and cheering and clapping. it's the new trading week under way, as you can see and we are off and running. we are expecting to be down right off the bat, down 120 points. a lot of the stocks haven't begun trading yet but we are expecting down about 100 points on the dow. we were down marginally on friday, down about 40 odd points. the market worried the fed will now not be so inclined to cut rates after that really strong jobs report but there you go. settling down about 130 points on the dow. let's take a look at the s&p for you. also down, about half a percent. it was down a quarter percent in the futures market. little more down wiward momentu than expected. the nasdaq down about 50 points at 8110. let's take a look at the

ten-year yield. i guess we should take that as 2.03% on the ten-year treasury yield. let's take a look at gold. dennis gartman is a big gold guy. up four bucks at $1404 for gold. who's joining us today? keith fitz gerald, jeff sica and susan li. thank you for being here. stocks started moving lower friday, after that strong jobs report. kind of tempered hopes for a rate cut by the fed. keith, seems like the market, all it wants is everything, right? i said this to dennis gartman. they want a good economy, a china trade deal, the fed cutting rates. we going to get all of that? >> well, i don't know. this is like when you play a country music song backwards as the old joke goes. the truck works, the dog comes home, the food is on the table. to me, the market's been baking in perfection for a little while. i think it's normal, it's gotten a little ahead of itself, gotten spoiled and greedy but this is what the wall of worry is all about. i think equities and earnings are going to be better than people expect. we are going to see a split and

i think markets are going to go higher by fall. ashley: jeff, do you agree? we going to have a good second quarter of earnings? >> i agree with keith 100%. i think what the problem we have, i called it last week the curse of high expectations. when you have investors who want to see the economy strong, want to see the crisis with china averted, yet they want interest rates to continue to go down, when we had that number come out on friday, i think a lot of people looked at that and said that the fuel behind this market is clearly expectation of low interest rates and when investors see that number, they see that we can't justify interest rates going much lower than they already are, and that puts the market setup -- ashley: the market wants its cake and eat it, too? susan: always. a 15 basis point cut is off the table completely at this point but this week, it will probably be very interesting to hear what jerome powell has to say at his congressional testimony.

does he use this speech as a way to push off a 25 basis point cut that we are all expecting and if it does, i expect the markets to fall sometime during wednesday or thursday's session when those words come out of his mouth. ashley: know what else we will get? a lot of tweets from the president. i know that. let's move on. deutsche bank getting out of trading, the german bank cutting 18,000 jobs by 2022, that's one in five losing their job. they are going to be focusing on europe instead. what's going on? susan: 18,000 jobs to go by 2022. don't forget, remember 20 years ago when they bought bankers trust, they were going to be this global powerhouse in trading to compete with the likes of goldman sachs, morgan stanley and the like. they have understood that since 2008 hit there's more regulatory adjustments, you can't make as much money betting with your own cash and your clients' cash. what they are doing is getting into businesses like retail banking and they realize that look, europe is their powerhouse. if you are european like deutsche bank is, 149 year

history, and you can't compete with u.s. banks on your own home soil, there's a problem going on here. especially when you're not seeing returns on assets like you should. ashley: right. >> keep in mind this is the biggest restructuring in two decades. this reminds people of what happened in 2008. deutsche bank, i came on the show in 2016 and said that they needed to restructure back then, which should show people how long it takes for these banks, these massive banks, to begin to experience the consequences of some very irresponsible decisions that they've made in the past. deutsche bank is a clear example that they wanted, as susan said, they wanted to compete with goldman sachs. they wanted -- and they had achieved a tremendous, tremendous market presence but they neglected a lot of the things that they shouldn't neglect and they took on bad debt. a part of this restructure is to structure a bad bank to hold some of their bad debts.

when you begin to see that in this bank, there's derivative exposure, that is going to be ominous in the future. susan: these are derivatives from 2008, a long time, right, keith? >> absolutely. you guys are spot-on. that's the canary in the coal mine, whatever that expression is. it's still early on the west coast here. ashley: i got you. let's move on. want to talk about boeing missing out on a contract with a saudi airline. it went to rival airbus instead. let me bring you in on this, keith. originally, the saudis had signed up for the max jet, then there was no -- it wasn't on the dotted line, so to speak. they hadn't signed. now they switched to airbus. this is not good news for boeing. >> no, this is my deepest fear for boeing is when the original crisis broke on the max jet they didn't handle it very well, they didn't presuppose that customers were going to get nervous and rightfully so about the quality of that particular aircraft. it won't take too many of these deals where they shift to airbus

for boeing's stock to be in a world of hurt. ashley: jeff, quickly. >> keep in mind, boeing and airbus, you are in an industry with only two major competitors. if they didn't have the market domination they have for what they have experienced, what they did last week with the outsourcing you would have seen this stock down a lot further. they have big problems. susan: what does the president contend if airbus didn't get those government subsidies, would they be as big a competitor? ashley: he does have a point. let's get a quick check of the big board for you. the dow as we say, we thought it would be down about 100. we are now down 151 points. want to take a look at dow component apple. rosenblatt securities downgrading apple to sell, says the fundamentals are deteriorating despite the service sector, it believes even apple services will start to unwind a little bit, i think was the way they put it. we'll see. the stock down $200. taking a look at oil, oil up

a fraction, up 32 cents, half a percent, at $57.83. we like to take a look at the price of regular gas every day. national average, $2.75. i think stu said $2.50 by the fourth of july. he was wrong. sorry, stu. now, if you are in the market for a new car, you may want to look at an suv. the "journal" reporting car makers may be facing an oversupply. keith, does this surprise you? i guess so many people are buying suvs, it's easy to get a little greedy and try and produce perhaps more than is needed. >> well, i think that's true. particularly the way we use debt in this country. the incentive is to produce more for less. as long as you have an indebted consumer you can sell them whatever you want. these are 7,000 pound paperweights at this point. the other thing that really was pointed out here to me is how much bigger, there's a health implication, right, because i worry about the physiology of america. if these are the only cars we can fit in and this is what the

market is producing, quite literally we have a problem on our hands that goes to the medical environment. ashley: tough getting into some of those european vehicles. susan: we overbuilt before with the suv glut in 2008. i was looking at the numbers. 47% of the new vehicle market are now all suvs. ashley: i believe it. susan: 47%. >> there's the whole issue and by the way, keith knows more about cars than anyone i know. ashley: yeah. yeah. >> there's this thing now where people are out there getting loans with very very bad credit. >> yes. >> there's this subprime in the car loan, in the car business, that's created this glut. for the consumer it's great. for the manufacturers, it's not good. susan: car sales are down 2.2% first half of this year compared to up 2.8% last year. ashley: bottom line, you could get a good deal on an suv right now. want to get to this story. netflix, according to a new sr va, only about a quarter of respondents say they would dump their subscription if netflix ran ads.

jeff, that's 25% saying -- i thought it would be more. susan: it's skewed. they are asking the wrong question. they didn't tell them the dollar difference. for a dollar less, 23% would say yes. $3 more, 41% would say that's not a bad deal. >> i'm going to go against what a lot of people are going to say with this. i think it's a good thing for netflix to do it. i think they should do it. i think a lot of people want to be on netflix and are willing to be on for a lower price if they have to endure a few commercials. i want to see how this pans out. i think there's going to be a lot of people who are going to opt for the lowest cost. a lot of people on netflix are the young people and some of those people with big college loans and subprime car loans. they need to save money. susan: you think $3 a month will make a difference? ashley: i don't know. keith, would you pay a little extra to continue for an ad-free netflix? >> that's the interesting question to me. i would pay more for an ad-free

experience but then again, i have a very short attention span given what i do for a living. ashley: would you pay more, jeff? >> i would. yeah. i would. >> i enjoy not having ads. ashley: exactly. susan: i'm used to the hulu model because they already have the ad supported platform. i don't mind it. given how much i pay now compared to how much the bundle costs on traditional cable, i would happily pay for an ad supported platform for $3 less. >> i always agree with the tiered program. it always, always works for people because it brings more people to the table. ashley: have to leave it there. thank you, everybody. great stuff. keith, waking up on the west coast. jeff here in studio. quick check of the big board for you. we are continuing the downward momentum. we are off 166 points on the dow, down about .6%, 26,754 on the dow. facebook's new digital currency libra, the libra. some democrats in congress want

facebook to delay its launch. coming up next, we talk to a tech watcher who is a big fan of libra. he calls it mark zuckerberg's moonshot. billionaire financier jeffrey epstein indicted on sex trafficking charges. epstein has some deep political connections and a history of allegations of inappropriate behavior with underaged girls. judge napolitano will come up for more on this one. by the way, it's the same great show but starting today, it will have a brand new name. liz claman's "countdown to the closing bell" now called reques"the claman countdown." way to go, liz. this is the couple who wanted to get away

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ashley: down 158 points on the dow, down about half a percent in the early going. again, expectations that maybe the fed won't cut rates teat th end of this month. let's check shares of vista outdoor. the stock surging after putting its savage arms unit up for sale. savage arms makes all sorts of guns, including assault style weapons. that stock up more than 4% at $9.19. let's take a look at facebook as lawmakers setting their sights on its new digital currency platform called libra. joining us, jim anderson with social flow which helps companies with their social media presence. by the way, congress back in session this week. let's get to regulation first, then i want to get to libra. congress back in session. some lawmakers squarely taking aim at facebook. mark zuckerberg himself trying to get out ahead of it, saying i

welcome regulation. what does the future hold for facebook when it comes to legislation on regulation? >> i think facebook, i put them in the category of big tech, facebook, google, amazon, they all face intense scrutiny in a way they haven't before. that's appropriate given the size, scale and impact on the economy today. ashley: they have had a lot of black eyes, certainly with data breach. for awhile it was always going on the apology tour, zuckerberg going to europe, he didn't go to the uk, didn't talk to parliament there, but has been on the hot seat. but the stock itself has so far remained intact. >> well, the fundamentals of the business are as strong as ever. you look at it, they keep having record earnings but they have lost the benefit of the doubt. i think again, big tech broadly has lost the benefit of the doubt that it used to have. ashley: that's the key, isn't it, could regulation affect the business model. >> without a doubt. i think it will take awhile. again, regulation like this, especially when you get into the world of antitrust and really novel new antitrust theories, right, historically antitrust has been about hey, consumers are paying more. well, consumers aren't paying more on free products.

you literally have to come up with a new framework for antitrust. this is sort of a five-year horizon, not a five-month horizon. that's my take. ashley: let's get to libra, the cryptocurrency. some people say, many people have said this finally gives this cryptocurrency legitimacy because someone like facebook is getting involved, it seems less scary, a little less out there, so to speak. why is facebook doing this? obviously it's money, right? >> it's money. we were just talking about their earnings. 96% of their revenue, thereabouts, is advertising based. that's a real, you know, area of concern potentially over the long term, especially with antitrust, those kind of things. imagine if they move into the world of payment processing. this is their moonshot. elon musk and jeff bezos are literally launching rockets. this is zuckerberg's version of a rocket, making a big bet to change the fundamentals of the business from almost entirely being advertising focused to now having payments and payment processing. susan: i think it's important to note, pardon me to interject, they didn't need to take it this

far. it didn't have to be based in crypto. they could have launched a traditional payment service like app applepay. why did they need to take it to these extra levels? >> mark zuckerberg is a technologist. the biggest, boldest thing is blockchain, that's intensely interesting to a technologist like zuckerberg. they can dominate that area, maybe they could have dominated traditional payment processing but they could certainly dominate the area of cryptocurrency like few companies can. ashley: you are giving this company financial details, bank accounts, those type of things, in order to transfer this cryptocurrency around. they don't have a good track record on keeping hold and keeping your privacy, when it comes to financing surely this is a real danger. >> they don't have a good track record. i think that's one of their big areas of concern. the regulatory sort of governance of payment processing is very different than regulatory governance of advertising. they are getting into a world that truly they don't understand and have every in been involved in. but again, there are $600

billion company with the resources that come along with that, they -- ashley: but resources haven't been able to stop data breaches up to now. >> true. they have an alliance with mastercard, paypal, visa and others. it would be a big mistake to underestimate their willpower to go and make this work and b, the impact they can have. ashley: could this really take off? >> i think it can. ashley: really? >> really. ashley: they got over a billion users -- >> two billion. 2.5 billion users. ashley: what's that, a fifth of -- >> more than that, of the world's population. ashley: everyone buys in, it could be a juggernaut. >> could be. now, regulatory interference and governance is not just in the u.s. but around the world. facebooks a global company. they've got a very daunting challenge. i think the big question is how strong are the regulators going to act and will this be sort of hearings and things like that or actual real action. ashley: fascinating stuff. i know you will be back. thanks for booieing here. let's take a look at the big board. the dow 30 stocks for you, lot of red.

how many, five stocks are in the green. the remaining 25 are trading lower. the dow off 164 points. back to politics a little bit. the divide in the democrat party getting even worse. aoc calling out speaker pelosi for comments she made about some of the new members of congress. up next, we will be talking to someone who says the democrats are making an irreversible shift to the left. i think they have already been doing it. he will make his case next. my experience with usaa has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today.

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ashley: "the washington post" reporting that the fbi and i.c.e. are using drivers license photos for facial recognition searches. sounds a little bit like big brother. what's going on? susan: especially when there's no consent, no direct consent at least. we have 21 states including texas, pennsylvania and also district of columbia combing through the dmv in these searches, especially with facial recognition technology. so according to what some of the e-mails and statistics -- that's hard to say, right -- the stats that "the washington post" has seen since 2011, 390,000 federal and local data base combs, searches, have included dmv facial recognition, picture searches, and they say they --

they have almost a 100% hit rate if they can get 50 searches put together for faces. privacy, safety. ashley: as always. yep. thank you very much, susan. now this. aoc firing back after speaker pelosi slammed her and other far left democrats. in a "new york times" interview, pelosi said all these people have their public whatever and their twitter world. well, aoc then tweeted that that public whatever is called public sentiment and wielding the power to shift it is how we actually achieve meaningful change in this country. hm. joining us, brad blakeman, former deputy assistant to george w. bush. morning, brad. >> morning. ashley: this is becoming very public now and it's interesting, the old school, the nancy pelosis and then the young ones, the young radical progressive left-leaning -- i wouldn't say left-leaning, far left members of the party, it's actually coming out in the open now. >> the inmates are running the

asylum. it's clear. nancy pelosi does not have the kind of control that you would expect a speaker of the house to have. she's not a minority leader. she's the speaker of the house. i think that it's clear that now they are airing their dirty laundry in public. they are not afraid to do it. they are not afraid to challenge. remember, she's a new congresswoman. she's taking on the leadership. not only nancy pelosi, but the entire leadership of the democratic party. ashley: i don't think she cares. she's got her momentum. people are drawn to her in many ways. so about 16 months now from the election, what is the platform for the democrats? i'm very confused as to what the message is. >> i just wrote an op-ed for the hill and it was picked up by real clear politics. i analyzed the 2016 democratic platform. if you read the 2016 democratic platform, you would say it's a progressive platform. but it's certainly not socialist. now when you hear the rhetoric, the 2020 presidential candidates, it nowhere resembles the platform.

it doesn't talk about sanctuary cities in the 2016 platform. it doesn't talk about forgiving student debt. it talks about renegotiating. ashley: free health care. >> nothing in there. nothing like the green deal, which pretty much eliminates modes of transportation within ten years. if democrats are successful in their rhetoric, morphing into a 2020 democratic platform, i don't see how a farmer, a swing voter, a moderate -- ashley: is going to vote for that. >> no way. ashley: you think that's where they will end up? >> they made irreversible left turn. remember, you have to be selected by the party before you are elected by the people. they will select somebody who is totally unelectable. ashley: have to leave it there. brad blakeman, great as always. appreciate it. all right. check this out. incredible video of a pool in california, water sloshing everywhere during this weekend's quakes. as you can see, the man calmly taking pictures by the side of the pool. we will talk to the director of the southern california earthquake center. are we going to see more scenes

like this in the future? we are asking that question. is this a prelude to the big one? we'll see. more "varney" after this. ee, is where people first gathered to form the stock exchange which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together. ♪ . .

ashley: it is 10 a.m. in the east, 7:00 a.m. in the west. good morning, everybody. i'm ashley webster in for stu who promises to return to tomorrow. we'll hold him to it. new poll shows the president's trump's highest approval rating because of the strong economy. california hit by a stronger earthquake two days after the first one. should the state brace for a third one in the coming weeks? we'll ask an expert. team usa renews calls for equal pay. they pete the netherlands 2-0 in sunday's final. "varney & company" starts right now.

ashley: all right, let's look at the big board for you. we finished down, more down with momentum. the dow down 147 points with 26,780 in the early going. the market has been over for half an hour. staying on the market, let's bring in john layfield. john, seems like markets are on hold. we'll hear from jerome powell this week. he has congressional testimony. he is in a bit of a difficult spot, wouldn't you say. >> i would say so. president erdogan released his head but i think he will. we have a global slowing going on right now and looks like a slowing in the u.s. economy. we're not falling off a cliff but seeing some pullback from the reese run. i think the fed is a in a little

bit of a bind. i think they will lower rates coming forrd. ashley: just one before the end of the year? things can happen between now and then but maybe half a percent for the year? >> i think it could be the half a percent for the year. this is kind of a catch 22. this economy is doing well, if you lower rates it shows the fed is worried about something. we have global slowdown right now. look at germany, 1/3 of the eu, projected .7% gdp for next 12 months. chinese manufacturing index slipped below 50 the difference between contraction and expansion for the first time in history. we're seeing a global slowdown. u.s. is only place to put money to get yield. the u.s. is favorable. the fed is dependent on them, ifed if continues to lower rates i think the market will do very well. ashley: where are you putting your money these days, john? >> a couple things. look at themes.

uranium themes. there is shortage of uranium. people greatly oversole world supplies because of perception they're shutting down all nuclear reactors and they're not. looking at dividend stocks. i love bp, ford. they both yield 6%. if you do have some type of a contraction, that yield is really high. it looks to be safe right now. ashley: what are you avoiding? >> avoiding facebook. the reason is i sold it recently. i sold it a couple months ago. 2 1/2 billion monthly users on the apps and programs but it is red meat for politicians right now. they went after banks and went after oil companies. they will go after tech companies. they will get something from them. zuckerberg looks like the easest target. as smart as he is he is not navigating political waters very well. set one they go after with all the tech regulation. ashley: interesting apple, part of the reason dragging dow down this morning. got a downgrade from rosenblatt securities saying they have downgraded from neutral to sell

saying that the fundamentals are deteriorating. what do you think about that? >> i think the fundamentals are deteriorating in hardware sales which apple has acknowledged. one reasons they took it out of the itemized list where revenues are coming from. look at services. i think appeal makes a bid for the premier league or the nfl. i think services will be the biggest thing going forward. i think apple along with amazon getting into sports will be a huge new growth wave. you have 1.3 billion people right now using an apple product worldwide. that is one of the biggest audiences, consumer bases in history. all you have to do is monetize it. don't have to sell more iphones just monetize it. that is why i like apple and own it. ashley: growth overall second-quarter earnings are coming up. one of the big ones, netflix is 10 days away or something like that. what are you expecting there. their estimates, expectations are so low they can walk over the line there but what are you

expecting to see? >> they have been wrong since about 2010 about all the expectations. as bad as these political polls, i know you have to project this stuff but they have just been flat wrong. i think we're seeing a slowing. i don't think recession is imminent. we have record employment levels right now. we have wage growth. a growing consumer sector. consumer sentiment is still high. that doesn't precipitate a recession. think we're in a period of slowing but not falling off a cliff with these numbers. ashley: john layfield, we'll leave it there. thank you very much. >> appreciate it, ash. ashley: now this. president trump's approval rating reached a new high. from the latest poll washington ab this news poll, it is 44%. not highest but it is something for the president to tout, correct? >> it is a notable improvement in that poll. he is also not just get being

high marks for the economy versus other issues but more americans are giving him credit for the current economy versus their previous polling. so you look at him, at this point in had is presidency, he is polling about where barack obama did at this point in the first term. ashley: right. >> you see here a path to re-election, not an easy one but he has to win over the suburbs. ashley: how does he win over the suburbs? that is the key question. what is the most important issue? is it health care, i know that we're stuck on health care and immigration and census questions but is health care the biggie? >> as far as he can do, that was the big issue that hurt republicans in the 2018 midterms. he needs to define his freedom poach. part of it is talking about the policies of the administration, allowing more choice, lowering prices, contrasting with the single-payer option or mandate that many democrats are pushing but a lot of this depends on the

opponent. you saw with trump in 2016 he was never wildly popular with the american people but they thought he was a better alternative than hillary clinton. the same thing happened to barack obama. he had, his polling got even worse in 2011 but once it became clear that romney was the opponent, obama successfully defined him as a out of touch rich guy. i don't think that was fair. it is all about the opponents. that is the history here. i think that is why the real need for democrats find someone who can speak toot middle of the country. ashley: that is almost impossible. they can't even speak to themselves of the party known for unity, we've been talking about all morning is really divided. we have the spat between nancy pelosi and aoc. the old guard against the young whippersnappers who are going so far left, a lot of the mainstream in the party just can't bring themselves to go that far left but it is happening. >> it is interesting, pelosi gets it.

she is basically lining how little support there is for the aoc wing across the country. but you get the impression biden doesn't get it. the whole premise of his candidacy when he got into the late race, here would be a moderate voice. ashley: exactly. >> with all of these hardcore leftists already announced but he basically has been moving left, whether on tax and regulation, now saying he supports forcing taxpayers to fund abortions. he is basically moving toward that extreme left position which doesn't cover the whole country. ashley: i think he is wounded right now after the confrontation by kamala harris, who by the way is going up in the polls. is she coming out as a strong contender do you think? >> i think she is rising. i thought all along she is probably the nominee. that is just my opinion but, it is interesting. just like with health care, where she has the moments in the debate. quietly changes the position later, apparently she is not for

forced busing either. although she is using it as kind of a way to define biden in a bad light historically. ashley: talking about biden, another one for you, james, listen to what joe biden said about using obama's name. roll tape. >> you know you've been using the name barack obama awful lot lately. >> sure have. >> kamala harris said voters decide the election based on future not associated with it. >> that's right. >> what do you say to critics you are using name of obama because you can't assistant on your own? >> i say talk about the future. instead of talking about the past. that is what i say. it is about the future. ashley: about the future, it is the point made he is relying on his association with former president obama. what do you make of that? >> i think the critics have a point. just by looking at history, when he ran on his own 32 years ago, he was polling in single digits. ashley: right. >> he ended up quitting the race for other reasons. 12 years ago he was polling in

single digits. he ended up getting .9% in iowa and he quit the next day in early 2008. so, minus the barack obama association -- ashley: his track record is pretty miserable. >> demonstrably not a god presidential candidate. i think if the strategy to tie himself to barack obama as much as he can that is a get strategy. ashley: he flips flops a lot. he is being pulled to the left, whether he wants to or not. he was the great hope for others to be the moderate. he had been out front and started to pull back. >> i think this poll today, "gallup polling," tells you just not within the country generally, within the democratic party there is large block of people who consider themselves moderate or conservative voters. why he got in the race. i think he needs to speak to them. ashley: fascinating stuff, james freeman, thanks for being here. appreciate it. >> you're welcome. ashley: wealthy finance ear

jeffrey epstein is being charged with sex trafficking and conspiracy. some documents could name pretty high-profile associates. will anybody else be implicated? we'll ask the judge on that. california residents cleaning up after a second stronger earthquake that struck friday night, but is a third, even bigger earth quake on its way? we'll ask an expert next. ♪

ashley: check the big board. we're down 29 points on the dow. look at deutsche bank, exiting, getting out of global equities. getting out after lot of jobs. susan you have the details.

the stock is down four bucks. susan: rallied in the early session, now down. susan: now down. 18,000 jobs to go. 18,000 of 91,000 jobs globally. one in every 5000 jobs will be cut. this is 49 year history behind a german bank. they bought bankers trust because they want to be competitor in the global trading business along with goldman sachs, morgan stanley, for a while they did very well. one of the largest credit derive i was and equity deriveatives business. they will take a 3 billion-dollar charge in the second quarter. no dividends, no buybacks up until the year 2022 where they think they can return five billion yours rows back to shareholders. this is basically preserving capital. getting into more boring businesses ike banking and more european businesses. that is embarrassing losing out on your home soil to the u.s.

investment banks. ashley: time to cut the losses. >> something needs to change. ashley: susan, thank you. now this, the 6.4 magnitude earthquake hitting near ridgecrest on the 4th of july and a 7.1 magnitude earthquake hitting north of ridgecrest. we have a professor of size pollgy from the university of california. was that long overcue due, the type of earthquakes we've seen over past several years? >> it has been a long time since we had a earthquake this big. we expect them a little more frequently than we've seen in the last few decades. this is not a surprise. earthquakes like this hit, it was not particularly overdue but gotten our attention. ashley: as it got your attention, everyone is asking is

this a prelude or precursor to something more and how can you answer that question? >> i wish i could answer better. we're not able to predict earthquakes before time. we have a new system that warns people before they get damaged but all we know there is a chance of a bigger earthquake. it is small chance, shrinking rapidly as something more is happening. maybe a couple percent chance after bigger earthquake the next week or two. that is the best case we can say. ashley: it hit in the area of ridgecrest. is this an area prone to earthquakes or not? >> it is an area that is prone to earthquakes. it is not as active as the san andreas which is further west. this is the something called the eastern california sheer zone. it has big earthquakes over the years. it has magnitude 8 earthquakes over the last 100 years.

there is not shocks earthquakes are there. ashley: i assume you felt earthquakes. as someone who studies these things what is the experience like? >> it is unnerving. the first 6.4 on thursday morning was noticeable, but a lot of people missed it. the 7.1 on friday night, i don't know that anyone missed it. it didn't cause any damage in los angeles but it seemed interminable. it was only 30 seconds or a minute but things were moving. it was fairly alarming. ashley: yes, i can imagine so. hopefully things will die down. professor, thanks for joining us this morning. wish you the best of luck. thank you very much for joining us. >> yep, my pleasure. ashley: thank you. coming up judge napolitano everything you need to know about the new case against jeffrey epstein. will anyone else be implicated? that is the question. portland mayor ed wheeler pushing back at critics his

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upgrade today. call, click or visit a store. ashley: let's check the big board. we were down 160, 165 points. we're down 93. trying to come back a little bit on the dow. now this, president trump hosting a social media summit later this week at the white house but get this, two of the biggest players in social media didn't get an invite. who is not showing up, susan?

susan: facebook and twitter not invited to this white house meeting. ashley: they're two of the biggest. susan: you have a social media meeting without facebook or twitter? apparently president trump already met with jack dorsey in the past. twitter is a founder. he complained about losing followers and dorsey says it is because of bots being removed. you have president trump on our air saying this is all democrats in silicon valley, especially with social media companies. if he was a democrat he would have five times the followers that he has now. he has criticized liberal bias against conservative voices. also regulation will be a main concern at this meeting this is cnn's report. we haven't verified it. it hasn't been confirmed. the companies have not even responded to this so we'll see. ashley: we'll see. thank you, susan. now this, wealthy financeer jeffrey epstein has been arrested and charged with sex trafficking. let's bring in judge andrew napolitano, "the liberty file" host. judge, let's start with epstein

himself. how much trouble is he in? >> we don't know the strength of the ghost's case but we don't know the applicability of this new case to a agreement that epstein entered into with the federal government about six years ago which prohibited the government from prosecuting him for anything of which it knew at the time. ashley: ah. >> these events that are charged in the indictment which will be released later today occurred before the deal that epstein negotiated. so his lawyers will argue, look, the government knew about that. they knew about that at the time they gave me the deal. the deal, however one sided it was, was the deal. i complied with my end, 13 months in jail. and the government has to comply with its end. the other side of this is, a federal judge in miami where the deal was negotiated and accepted, found it was unlawful because it failed to inform the victims of the deal. one of those victims is also a

victim in the case that is being revealed this morning. ashley: so it is 2,000 pages long you say that will be revealed. it could be some high-profile names. >> a federal court, independent of the filing of this indictment two weeks ago ordered that all the documents in the miami case, everything that the federal government had on epstein up to and prior to this present case be revealed. that is 2000 pages that will probably include fbi reports of people that visited epstein's compound, and it is alleged that some of those people, not necessarily committed any crimes, not that they committed crimes at all, frequented the compound. i don't want to mention names but some of them are household words. ashley: they are. could those individuals face charges? i know it is all pointing at epstein at this point but -- >> the charges against epstein are particularly horrific. the charges are the use of minors for a personal sexual

purposes and the movement of those minors from other countries into the u.s. and within the u.s. that is what implicates the federal authorities. it is hard to believe just because somebody visited epstein's compound that they were involved in trafficking. ashley: we'll have to leave it there, judge. thank you very much. >> you're welcome. ashley: fascinating stuff. more bad news for china's huawei, new research uncovering deeper lengths between huawei and china's military. so how worried should we be? we'll be asking that question. we'll be right back. ♪ carvana is six years old this year

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♪ lucy in the sky with diamonds. susan: you played revolution last year and this you requested. ashley: revolution, one day i'm here. story of my life. stu likes it. back in the psychedelic days of the beatles. of the classic. staying on our british invasion team, eu trade minister has a lot to say, the trade minister is apologizing for the ambassador who made anti-trump comments. boy did he, susan. susan: released cables at "the daily mail" obtained, basically quoted the ambassador, uk ambassador who called president trump inept. calls him clumsy and, the trade minister, liam foxx will meet with ivanka trump. he will be apologizing, what he

said, civil service or elements of or political class that have not lived up to the expectations either we or the united states has about their behavior. now, let's be honest. it is encouraged to be honest in these cables, right? diplomatic cables. ashley: candid. susan: they are back to your home government. so the fact that they were leaked is a big question, where did they come from? it is interesting that the uk government did not deny that these were authentic. ashley: no. but they're scrambling right now. maybe die detectors are being used to leaked the cable. it is embarassing. >> it is embarrassing. ashley: thank you, susan. listen to what president trump said about trade with china. roll tape. >> we're doing very well with china. that's right. they're meeting but we're most importantly we're doing very well with the tariffs. we've taken in billions and billions of dollars from china. we have never taken in 10 cents from china. china has ripped us off during obama and biden, during in all

fairness, bush and other presidents. clinton obviously. right now china is not very happy because thousands of companies are leaving china and they're going to other places, including the united states. ashley: listen to what larry kudlow said on this show friday. roll that tape. >> telephone, telecommunications between the top people which began pre-owe zaka will continue, i know they're working coming up with a date for so-called face-to-face meetings. that will happen. i don't know if that is this coming week. i think the phone calls are this week. the face-to-face may not be for another week. i don't want to get ahead of that curve. it is under negotiation which is a good thing. ashley: it's a good thing. at least they're talking. let's bring in michael pillsbury, hudson institute senior fellow. michael, the trump administration still trying to remain optimistic. are you optimistic? >> well, i'm optimistic in the long run.

obviously if the talks restart with a face-to-face delegations whether beijing or here we'll find out quite quickly, how much of china reneged on are they willing to put back. that may not be leaked right away. that may be kept confidential to save face on both sides. but the long term approach here that president trump has taken, that the cheating has got to stop. that has pretty wide support in our congress. the chinese of course defended themselves saying this does not happen. they went through the ustr report half a year ago with me personally, they said this is false, this is false, this company is whining, but it is not true that is the chinese position, there is nothing to talk about. if the tariffs are put on, they will show up for the talks. we're making progress, but certainly slower than most of the o mists thought. ashley: michael, ultimately we're stuck between the u.s.

wants and what the hard-liners in beijing will allow president xi to negotiate. there may not be any give there. if that is the case, this could drag on and on and on? >> well, i'm glad you used the word hard-liners in beijing. that is the top pick of my book, "the 100 year marathon." we underestimated the hard-liners in beijing. xi seeks support of hard-liners. as long as his chief negotiator keep secret in china what they agreed to, things were looking pretty good. once the hard-liners found out about it, somebody perhaps in china leaked this to "the new york times" on front page story by keith brad a month ago, once hard-liners found out they blocked the rest of the agreement. you're quite accurate. that is where we are right now. the news is i guess the hard-liners are not able to block the talks themselves. they're having to consent, as

larry kudlow said, they're having to consent the delegations meet again. this will take longer than the optimists thought, that's for sure. ashley: china famously likes to play the long game. >> yes. ashley: are they hoping that perhaps, if they play it long enough mr. trump will not be in the white house? >> i think they're not thinking about 1000 years. i think they're thinking about the pain of these tariffs and the talk of decoupling scares them. the word in chinese, decouple sounds really bad. they had a conference in beijing on saturday, with a lot of their academics, warning the government that decoupling will really hurt china badly. apparently this is true. the chinese have a very strong economy. they are not going to collapse. but decoupling with large cuts in foreign investment in china this could be very damaging to them. even the hard-liners understand this very clearly. ashley: another one for you, michael, president trump reversing his position on

banning huawei but researchers have studied the resume's of huawei's staff, reveal perhaps deeper connections between huawei's china's military and intelligence. we should be wary, right? >> i don't think i agree on either one of your points. the president did not reverse himself on huawei. he has never called for death to huawei. he already, he already kept zte alive when president xi asked him. ashley: that's true. >> he is talking about yes, huawei stays on the entity as list, there can be concensus estimateses or waivers sometimes they're called for some kind of parts available elsewhere in the world. so it is not death to huawei. on the issue of being wary of huawei, yes, that was the case before because they have been caught spying for their government. this has got to be fixed somehow but putting the company out of business is not what the president is calling for. he also by the way, avoided the use of the term enemy.

he never calls china an enemy. he waxes quite he will kept on his friend president xi. we can't get into the new cold war way of thinking. it is nothing like that. ashley: michael, i guess we take a step back to look at this thing can a deal be reached where we can all shake hands and smile and feel like we have gotten something of substance? >> yes, but, part of it is going to come down to how much cheating are we going to allow. ashley: yes. >> and negotiators set up three-level court of appeal system if american companies are feeling they have been ripped off. the cities to put tariffs on that sector again will be made. how much cheating will be allowed, the problem president is facing there, he has got our super hawks, nancy pelosi, chuck schumer, sherrod brown, they say they will examine this very carefully. the president better not give china too much of a break to

continue cheating. one can be optimistic. will it endure and be abided by the chinese is a bigger question. ashley: yep. one we have not yet answered but michael pillsbury, always a terrific guest. so much knowledge. we appreciate your time. >> the story doesn't go away, does it? ashley: no it is the gift that keeps on giving. michael, thank you so much. >> best wishes to susan li. susan: ah. ashley: even got that in. thank you, michael. check the big board if we can. we were down 160 odd points. we were down 127. we were trying to make a comeback, but no doubt a down start to the week, down half a percent on the dow. check netflix. 23% of their subscribers they would drop netflix if they had ads. is this a confusing survey? susan: i think so. it is also very low number by the way. ashley: 23%. >> 23% would drop netflix if

they had to pay one dollar less for add sported platform. if you give them bigger margin, three to four dollars, a lot say, yeah, we would take it, ad-supported model that makes sense. what hulu is disney. disney at 6.99 to 9.99 they will have ad-supported platform at a lower price. netflix is thinking about this, get more users on, charge less, get more ads, think about the revenue they can bring in instead of a cash burn. ashley: yes indeed. you would pay for it? susan: i would pay for it, $3 for four minutes of ads once every 45 minutes? i would take that. netflix have original content, which they will sell, people are loyal to. i don't think people would cut the cord. ashley: i would pay more for no ads, that is just me. susan: there you go. ashley: the department of justice says a new legal team will take over the census

citizenship question case. after president trump said he could sign an executive order to get the question into the 2020 census. we're on that story. also, president trump took aim at big pharma last week, hinting at a new executive order that would slash the price of prescription drugs. we'll see what former celgene ceo, bob hugin, thinks of that one in the next hour. stay with us. ♪ (vo) the hamsters, run hopelessly in their cage.

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ashley: all right, some breaking news for you, iran's foreign minister just issued a statement saying there will not be a better deal negotiated than the current nuclear deal. in other words it is what it is, you will not get anything else. let's check the big board.

we've been down all morning. we're off 166 points. we're down 12 points on the dow. off half a percent. let's look at price of oil, moving ever so slightly higher, up 53 cents now, above 57 bucks at $58 a barrel. all right now this, president trump considering signing an executive order that would add the citizenship question to the census. let's bring in bob barr, the former georgia congressman. congressman, can he do that and why do you think it is important to have that question on the census? >> thank you, ashley. i think he can do that and i hope that he does. this thing needs to be put to rest. it is common sense. it makes, there is no reason not to ask how many people in this country are actually citizens. it has been done before. an executive order cannot change federal law and it cannot be used to undercut federal law but with regard to the citizenship question on the census there is

absolutely no prohibition under federal law or federal regulation not to ask it. so the president can sign an executive offered. there are plenty of reasons in terms of how he administers the executive branch to do so. it makes sense under the constitution, the language so i think this needs to be done, it's going to be challenged but i suspect it will be fast-tracked and i expect the president will win on this one. ashley: let me get to another issue that really makes my blood boil. last week a conservative writer was attacked by antifa. listen what he told us on this show. roll tape. >> a bunch of stuff kept coming in every direction and then eventually they escalated it to throwing liquids in my face, blinded me, so i couldn't even see which way to leave. and, i still see the justice center in the background and i

kept thinking the police were going to come to help me at any moment but that never happened. ashley: that was andy ngo. listen, bob, you're not very happy, are you, with the way portland's mayor, with this happened, ted wheeler, handled the situation. what should he have done? >> mayor should have ordered the police to, first of all stop what was going on with these antifa thugs in the first place, but certainly the mayor should not have prohibited, as he apparently did, by ordering the police to exercise restraint and stand back. he should not have stopped the police. the police, which have obligation to protect the citizens above and beyond what an elected official like the mayor says, should have gone in there, they should have stopped this. they should have protected this young man. the fact that they didn't, means to me they are, that is the police in portland are complicit in what happened to this man. they ought to be held accountable.

i believe that the citizens of portland should start a recall effort against their mayor. i think it is time for the federal justice department to step in, make sure that federal funds are cut off to these snowflake mayors and police departments that stand by while people are brutally attacked. ashley: we see this time and time again, bob. you say something, that these groups don't like. they don't just shout you down. they attack you. these are domestic terrorists. these people, if any other group attacking one person anywhere in this country, surely the police would step in. why is it that these antifa people, who are not even brave enough, who are cowardly covering up their faces, how are they allowed to get away with it? >> it really goes to the heart, i think, ashley, of where our society is headed. every single thing, no matter what you say, you say good morning somebody is going to take offense at it and when it

comes to political view points being expressed, there is simply no room for disagreement, particularly if you are expressing a conservative or libertarian or non-establishment viewpoint. in this case, this reporter was not expressing anything whatsoever. he was simply operating as a bonafide journalist, to cover event. ashley: right. >> for that he was brutally attacked, these antifa thugs do this, because they know they can get away with it. they have gotten away with it in berkeley. they have gotten away with it in charlottesville. they have gotten away previously in portland, the fact they are allowed to do so over and over express by the express connivance of the mayor and police is utterly unacceptable. i think this would be a perfect example for the federal government to step in and exert authority to protect our citizens, particularly those, like this reporter who were exercising their first amendment rights.

ashley: couldn't agree with you more, bob. i hope someone is listening, thanks so much for joining us this morning, we appreciate it. >> always a pleasure. ashley: thank you. coming up next i will talk with north dakota's first and only billionaire. he has a great rags to riches story. i want to know what is his secret to success. i want to know. also coming up in our 11:00 hour, the company that sales organic meat is transitioning into the cannabis industry, with plans to make cbd vitamins. but that comes as a lot of governments, including new york city are cracking down on cbd products. how worried should they be? we're asking the ceos. stick around. ♪

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great to have you here, gary. we love success stories on "varney." you went from being a high school gym teacher to a billionaire. how did you do it? >> well, you don't start out real fast in life, but i worked on a farm, when i was in high school for $50 a month, room and board. and so, then i got in, i taught school a couple years. you know, then i got, was in the insurance business for a while. and that, i, i really, what changed my life, i think was, i developed a really positive attitude about things, in trying to be the best you can be. that just accelerated everything, then i got into the motel business when i was 37 years old. the rest is history i say. ashley: so you bought your first

hotel. did you by one and how quickly did you go to another and another and another? how did it snowball? >> okay. i bought the first one in february, second one in may. then we built the, first one we built was a year later. so then, following year we did two. then the next year we did five. and there was a slowdown for a while. and then we got rolling again. by the 1992 i built about 10% of all of them in the u.s. now there is only 20 motels, because we were going through a financial crisis, s&l financial crisis at the time. but, we were geared up, we were making a profit in those, even in the bad years. ashley: that is, gary, what is your advice. we're running out of time. i apologize for that but what advice would you give to

someone? you said a positive attitude goes a long way. what else? >> well, i think a positive at few and then have a strategy to succeed. ashley: right. >> i believe you have to have the strategy to succeed and do whatever, ever is right, to get to your goals. and i've always shared my information with anybody who wanted to ask me. ashley: ah. >> the other thing, the real goal is, i said the wealth with my employees, which is probably the best thing i ever did. it made my company that much greater because they were owners. so they acted like owners. ashley: right. gary, we -- >> can't replace it. ashley: gary, you're first and only billionaire i believe in north dakota. we thank you so much for coming on to "varney & company." congratulations to you. it is a terrific story, very inspirational. so we thank you. >> yeah, thank you too. ashley: coming up, great story,

obamacare on trial. a court in new orleans could overturn the affordable care act. so what happens if it is determined unconstitutional? we'll be asking former celgene ceo. division in the democratic party. nancy pelosi taking a shots at new members of the party. aoc firing back on twitter. the question, has pelosi lost control?

ashley: good morning, everyone. i'm ashley webster. stuart is back tomorrow. he promises. we are just a little bit past 11:00 a.m. here on the east coast, it's 8:00 a.m. out west. let's take a look at the big board for you. we have been down since the opening bell. been down as much as 160, 165 points. we are off 128 right now on the dow, about half a percent loss. taking a look at the nasdaq for you, the tech-heavy nasdaq down

three quarters of a percent at 8098, down about 63 points. take a look at the s&p. also down, about half a percent. pretty much the same across the board. the s&p at 2975. our next guest is putting his name on the line. saying the s&p could rise another 5% to 7% by the end of this year. let's bring in anthony chan, former chase bank chief economist. thank you for being here. you sticking by that? >> i think that if you get a lot of the things that the markets want, you get to that number. ashley: what are you talking, fed rate cut? >> fed rate cut. ashley: china deal? >> china deal. ashley: good second quarter earnings, growth in the economy? >> and no trade tensions with europe. if all those things happen and we get -- ashley: you aren't asking for much, are you? >> -- super goldilocks outcome, the market can really do it. remember that right now, economic growth, people are concerned about it because in the second and third quarter, we

get real gdp growth below 2% so that means the bar is very low. if you start to accelerate the markets won't like that. corporate profits are very, very weak. very low single digits. as you go into 2020, those earnings obviously start to accelerate. those things will be a good tailwind for the equity market. ashley: where are we getting the growth from? i know low rates, maybe people will be tempted to borrow more money but the global economy is slowing down. there's no doubt. >> the manufacturing sector. the industrial sector globally is slowing down. the service sector is still holding in. we see that here in the united states. if you look at the second quarter numbers, we are just going to be a whisper below 4% on consumer spending growth. we of course are going to start to see with these lower mortgage rates, even housing is going to show at least some signs of life. ashley: it hasn't up to now. >> but it will in the second quarter. we already are starting to see the raw materials that suggest that. but again, much, much more moderate growth. then you get one fed easing in july, you may not even need the full three that people were hoping for.

that will be just the boost that the economy needs. ashley: you think the fed will? we are down today, we were up friday because of one strong jobs report. all of a sudden people panic, say oh, no, the fed is not going to lower rates because the economy is too strong. >> well, i think the reason the financial markets are a little bit concerned is because we've got very strong employment report, it basically says the federal reserve doesn't have to do as much as they hoped. that means another three rate hikes in the next, between now and the end of the year. ashley: you think the market was expecting three rate cuts? >> if you look at the futures markets, they certainly were. but i think that strong report which by the way was strong but not as strong as people might think. if you look at employment gains this year relative to last year, they are running about 23% slower than they were last year. remember, that if there was pressure on the federal reserve to lower interest rates when the unemployment rate was 3.6%, there should be pressure when it's 3.7% now. ashley: should the fed cut rates? >> i think the federal reserve has to cut rates, not necessarily because the economy

will tank but because they telegraphed it so strongly that it would be very disruptive to the financial markets. however, if they give you the right communication, they can say look, we are going to do this cut because there is still some trade uncertainty, the financial markets are -- i don't want to say we are prepared for it but certainly it's true, we are preparing for it, but if the economy is stronger and we are data dependent, they may not require as many rate cuts. ashley: is the u.s. economy slowing down? we do get conflicting data. i know the jobs report was gangbusters which means companies are hiring. however, the other things come down to suggest that maybe we are slowing down. >> i think there's no doubt in my mind. if you look at the atlanta fed nowcast, one of the most reliable estimates, they are looking at economic growth in the second quarter of 1.3%. i actually think it's going to come a little higher but it's not going to be 3.1% like we saw in the first quarter. all indications are that even in the third quarter, we are probably going to get a number -- ashley: are we the best game in

town when you compare the u.s. to the rest of the world? >> relative to the rest of the world we are still doing fine. guess what, it means if we cut rates and we get all those things, that shopping list mentioned, we can reaccelerate in the fourth quarter, then do a little bit better even in 2020. ashley: you are a real bull, aren't you? very optimistic. >> optimistic and hopeful. ashley: i like it. thank you for joining us today. appreciate it. check johnson & johnson. they have been taken to court in oklahoma over their role in the opioid crisis and now they want that tossed out. kristina partsinevelos joins us for the hour. hello. kristina: hello, ashley. ashley: what's this all about? kristina: the state of oklahoma is claiming you have johnson & johnson responsible for the opioid crisis, putting the blame on them, saying 60% of the opioid ingredients came from two johnson & johnson subsidiaries. the latest is them saying you don't have enough evidence, you are putting it on us, we are being used as a scapegoat.

they reached out to 150,000 doctors, we called to try to get them to promote opioids so you have the situation where they have one hour in court to argue whether they are going to scrap this case all together. johnson & johnson feels they are just going after their pocketbook because the state is putting a lot of money forward to overcome the opioid crisis. ashley: a lot on the line. if they win, good for j & j. interesting to see how it turns out. thank you. let's take a look at kohl's. they are expanding their amazon return program. if i need to return something to amazon, i can bring it to a kohl's store. they will box it and ship it for me. that's pretty cool, actually. good for kohl's. kristina: it is good for kohl's because they tried this out in chicago first. they noticed there was an increase not only in revenue in that store, but they saw a 9% increase in the number of new customers because people, myself, i don't go to kohl's very often but i would go to kohl's to return an item. i got excited when i read this story because i have this book

in my apartment for the past two weeks, i haven't returned it back to amazon because i don't have a box. you can bring items unboxed to the kohl's locations as well as -- ashley: you read it, now you are going to send it back? kristina: it's damaged but it was from a third party seller. you cannot return third party seller items to the kohl's location. however, if it's amazon you can take it to over 1,000 stores across the country, whole foods as well as ups stores. ashley: certainly adds to foot traffic. all right. good stuff. let's check the price of gold. it was up just a little earlier, up about four bucks. where are we now? no, let's take a look at amazon. now there's gold. up very slightly, right at $1400 per troy ounce. of course, we are watching bitcoin, a bit more stable lately. hovering right around the $11,000, $12,000 area. $11,901, to be precise. take a look at oil. it's been up slightly, above $57. it's up 57 cents, just over $58

a barrel. price of gas, it actually fell slightly over the weekend. now down to $2.75 for a gallon of regular. that's the national average. stu varney said $2.50 by the fourth of july. unfortunately, he was wrong. now this. we are monitoring this press conference out of new york, detailing charges brought against billionaire financier jeffrey epstein, including sex trafficking of minors. anything breaks on that, we will bring it to you first right here. california liberal billionaire tom steyer may jump into the 2020 presidential race after all. why he thinks now may be the time to throw his hat into the ring. it's a pretty crowded ring with a lot of hats. congresswoman alexandria ocasio-cortez is hitting back at speaker pelosi after she criticized several far left lawmakers in an interview with the "new york times." we're on that story. and president trump may issue a new executive order on drug prices. will he be able to lower those prices that you pay for common prescription drugs?

that story next. the third hour of "varney & company" just getting started. we call it the mother standard of care.

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ashley: well, we thought that the 2020 democrat pack couldn't get any larger. we were wrong. we might have one more joining the group. there's a lot of hats in that ring. tom steyer, the very rich guy, may be in. kristina: very, very rich guy. yeah. he's a former hedge fund manager. he owned a bank. now he says he's planning to donate half his money like a lot of the rich guys that we've heard about, he's a billionaire, and according to politico he has announced he's going to be running for presidency so he's a little bit late to the game, like you mentioned. he is very much against president trump. he has in 2017 paid a lot of money, about $10 million, to have these tv advertisements to impeach the president.

now he has said according to sources that the economy is not as good as people make it out to be. ashley: oh, really. kristina: he plans to run. he also plans to spend more ads on the president's impeachment going forward. we have over two dozen candidates. he's late to the game and it will be difficult for him to gather campaign staffers as well but he's another wealthy person that's entering and we'll see how -- ashley: he doesn't need to do a lost fun lot of fund-raising. kristina: he can use his own. prior to this he hasn't announced his candidacy but has been speaking to people, doing some town halls. ashley: two dozen and counting. kristina: a lot to talk about. ashley: yeah, sure. president trump, by the way, on friday hinted at a new executive order that would dramatically lower the price of prescription drugs, taking aim directly at big pharma. roll tape. >> other nations pay less for drugs, sometimes by 60%, 70%.

we're going to be working -- right now we're working [ inaudible ] where we pay whatever the lowest nation's price is. why should other nations like canada, but why should other nations pay much less than us? they have taken advantage of the system for a long time, pharma. ashley: that was the president. bob hugin now joins us, former celgene ceo. thank you for joining us. does the president have a point? why are we paying such high prices for prescription drugs than, say, canada or other places in the world? >> clearly the em is system is . the president is doing a lot of good things. you think about transparency of prices, with drugs or hospitals or providers. we should know how much it costs to get something done. we also should know what the outcome is. he's doing some other good things, getting rebates to make sure the consumer gets the rebate, not some middleman getting the money out of it. let's make sure the patient gets the benefit of rebates. i have to tell you, we have to

be careful here on this latest executive order or the potential for an executive order about importing socialism and price controls. it may be a good negotiating strategy but it's bad, bad policy to import socialism. it's sort of like medicare for all. we should really, better health care for none. ashley: would you agree the president has a point the prices are out of control? when i was in the uk i had a cholesterol drug, i think i paid five pounds for three months supply, so $7. it was remarkably cheap. >> right. ashley: in this country it's a little bit more. why am i paying -- it feels like this country, everyone is paying for research and development by the big drug companies but people elsewhere are not. >> yeah. i mean, i think the united states is the center of research and development, the innovation capital of the world. american patients get access to therapies first and better -- 80% plus of all prescriptions are generics and the united states has the lowest cost of

generics in the world. we do pay for innovation which is a good thing. we don't want to be stagnant in health care. we need to reform the system. we've got a lot of opportunity to really do that. one of the things we need to do is to really keep pressure on the private sector to solve these problems. you have jpmorgan, amazon, berkshire hathaway doing good things. democrats and republicans know, they agree on 80% of the things that need to be changed. but the political division really prevents us from getting these things done. that's why i'm hoping if we do have obamacare ruled unconstitutional -- ashley: what happens if it is ruled unconstitutional? where does that leave us? >> so many americans are poorly served by the health care system today, as we have been talking about. change is not necessarily a bad thing. congress would have to come together to make sure we protect the vulnerable people that might be disadvantaged by the ruling. in the end, we need change.

we need catalysts to bring democrats and republicans together to really solve the problem. ashley: and then you woke up. when has congress agreed on anything these days? >> that's the problem. but this issue is so serious, the consequence to the american people and the economy, 18% of the economy. i think the thing we've got to recognize is the government is not the only solution. that's why earlier i mentioned we have to really encourage the private sector. they are doing so many good things. we are seeing a lot of positive signs about how to be more effective, get better transparency on outcomes and prices but get better care for people. it lowers cost, you get better prevention and wellness. there's a lot we can do. we have to work together to make that happen. ashley: i hope they're listening. >> keep pushing on it. ashley: thanks so much for joining us. we appreciate it. of course, the democrats just want single payer. let the government run it for you. it is crazy. check that out. new video showing a sailboat catching fire after being hit by a huge -- wow -- bolt of lightning. hopefully no one was on board. it happened at a yacht club in boston. the lightning strike also caused

a small explosion and severe electrical damage, as you can imagine. fortunately, no one was hurt. that is the power of nature. look at this video from venice, italy. it shows a cruise ship nearly crashing into a dock and yacht during a storm there. look at that thing. it happened as the cruise ship was actually being towed out of port. crew members on board the smaller boat were forced to jump on to the dock. no serious injuries, though, were reported. how would you like to see that in your rear view mirror? the fourth of july may be over but vacation season still in full swing. we will tell you which companies offer the best vacation benefits. more "varney" next. ♪ my insurance rates are probably gonna double.

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ashley: rough start to the work week for british airways. kristina making fun of my age, apparently. facing a big fine, british airways, from the uk over a website hack late last year. they are being fined for not looking after our information. kristina: i was only complimenting u yes, they are being fined the biggest penalty from teshhe eu and this comes ur

the general data protection regulation. they are being fined because the eu feels that b.a. didn't protect their website from attackers, who were able to hack in. they announced this in 2018. they stole people's log-in, payment detail, their travel details as well. b.a. said no, there was no evidence that the attackers actually did anything with that information. ashley: that's not the point. kristina: right. this fine is to the tune of $230 million, about 1.5% of b.a.'s revenue. but the gdpr could have done a little bit worse. they could have went 4%. they could have went up to 4% of a company's revenue. we talk about the technology. we see how they are going after other firms to protect people's data. ashley: those europeans are tough. kristina: but don't you feel it's a good idea? ashley: it is. you lose my data, you should pay for it. now this. picture this. you just booked that last-minute vacation to some exotic

international location. flight leaves tomorrow night but you don't have your passport. well, fed ex has you covered. you can get a fresh one in just 24 hours. comes with quite a price, though. the price tag at $450, about $300 more than the state department standard six to eight weeks. don't let your passport run out. you save a lot of money. you have your passport, you're ready to get on the plane but now you realize you can't actually afford that vacation. oops. well, there are a few companies to help you out. kristina: yes. this comes after the center for economic and policy research found that the u.s. is the only advanced economy that doesn't guarantee paid vacations for workers. they found there are several perks if you work at say airbnb. they give their employees $2,000 a year worth of travel coupons. then you've got expedia, they give about $250 to $750 but of course, it's travel vouchers for their own website. this is pretty awesome.

unlimited vacation time plus $1,000stipend each year toward vacation. then you -- ashley: no one shows up to work. kristina: there is some research that shows when you put unlimited vacation, people don't take it. they feel this guilt in a way. i don't know if our viewers would feel that guilt. but united airlines give discounts to employees and travel zoo, you get about $1,500 and some of these firms even do monthly draws so you can win money towards your vacation. imagine you got that. ashley: hard to find good qualified people these days so these kind of benefits make a difference. kristina: exactly. they keep people. reduce turnover. ashley: how about this one. a 300 foot yacht previously owned by a malaysian fugitive financier is available for rent. the cost, a mere $1.25 million per week. the luxurious yacht is called tranquility and is moored in the

french riviera. the price does not include fuel and other charges. you have to pay extra for gas but if you can afford the $1.25 million you won't worry about the gas. a company that specializes in organic meats is making a big move into the cbd industry, buying a firm that makes cbd vitamins. the question is are they worried about government crackdowns on these products? we will ask the ceo on that next. plus, there has been talk about netflix putting ads on their service but a new survey shows about a quarter of all customers would cancel their subscription if that happens. so can netflix stay ahead in the streaming wars? we're on it. ♪

ashley: let's check the big board quickly for you. the dow 30, a lot more red than green which explains why we're down 126 points to kick off the new week. down about half a percent. not too bad but certainly on the down side. we are also watching interest rates on the ten year treasury, above 2% over the weekend. now 2.03%. still historically very low. let's stay on your money and take a look at netflix.

a new survey says that only 23% of their subscribers would actually ditch the service if netflix started running ads. let's bring in david nicholas, president of nicholas wealth management. david, that number seems low to me. i thought more people would say no, i don't want ads, but i guess what we're looking at here is one tier that's cheaper for ads and then another one, you have to pay more for the ad free, right? >> yeah. you know, actually, i don't think netflix has a choice. netflix has been burning through cash, over a billion dollars cash lost last year. 2019 looks like it will be even worse. they have $10 billion long-term liabilities. they haven't had positive cash flow in five users. i don't really think they have a choice. this is one of the ways they can generate revenue without directly raising prices. but i don't know, i have to believe if you have a favorite show on netflix and i canceled my netflix because i disagree with their politics but if you love netflix, you have a show you love, i highly doubt you will cancel it because of a

60-second ad that will play before your favorite show. i think it's a little overblown. i think netflix will be okay. but there is still revenue room for growth. they can increase prices quite a bit and they will still be under what some would pay for cable. they have room to grow their revenue on the charging side. ashley: i want to move on to apple. bad news for that company this morning. rosenblatt securities downgrading the stock to sell from neutral. this comes off the back of some poor iphone sales. they said look, the firm, they don't think we believe apple will face fundamental deterioration over the next six to 12 months, and they also talk about the services side of it which i always twhauhought was next great hope for apple, not the hardware. they even believe on the services side there will be deceleration. what do you think? >> yeah, apple has got to innovate in the space if they want to stay a leader. iphone smartphone sales as a whole, it's a saturated market even by apple's own admission.

they don't disclose the number of iphone sales. yeah, i think they will struggle in this sfas. iphone 11 sales will be disappointing in the fall. 60% of their revenue comes from iphones. i'm up for a new phone. i spent almost $1,000 on my phone two years ago. the only reason i'm buying a new phone is not because of the new camera that has special zoom. it's because my apps aren't loading as quickly, my phone is slowing down. i don't know if that's on purpose by apple. but i'm not buying it because i'm excited about the phone. i'm just buying it really for the reasons for the phone not working as well. i don't know. apple's got to innovate. i think there is some room to work in those services space but unless they come out with something big, i don't know. the stock is up 9,000% since 2004. the days of making a lot of money at apple are behind us. ashley: would you buy a samsung galaxy instead? ever thought about that? >> my wife asked me that this morning. i would if i wasn't too lazy to change over all my photos and music. they got me hooked, unfortunately. i'm in it for the long haul.

ashley: hotel california, right. once you check in, you can't check out. david, thank you so much. really appreciate it. all right. next case, interesting. new york city just instituted a ban on cbd in food and drinks, and the fda's still on the fence about regulating it. let's bring in ian parker, ceo of emerald organic products. your company just purchased a cbd vitamin company called puravita vitamins. let's start right there. the ban, does that not worry you? the fda says okay on maybe the creams, topical things, but as far as ingesting cbd, the fda is not quite sold yet. >> the answer is no. we're not concerned about it at all. quite frankly, if you look at the 2018 farm bill, the 2018 farm bill made hemp a federally legal agricultural product. what it also did was clear -- take it off the controlled

substance act. what has happened since then is that there's been a boom in the farmlands of america and consumers are obviously voting with their pocketbooks, and this is a very popular product. one of the reasons it's popular is that it helps bring your body back into balance and it is becoming a very important part of a holistic approach to health and wellness. ashley: but here in new york, if you are selling cbd products that are ingestible, they have had a series of raids and have cleaned out store shelves, and there will be a series of fines now if people in this city are selling these products. doesn't that worry you? >> it doesn't. we have an approach to that. we are currently working on how we are going to deal with it. ashley: how do you deal with it if it's banned? >> it comes down to packaging and what the standardization will be. the reason you have these problems is the fda has taken this sort of nebulous approach to this very confusing approach as to how they are dealing with cbd. the truth is that what they should be doing right now is

they should be regulating it as a supplement. part of the problem that we have in this city right now is that you have these opportunistic marketeers that are claiming all sorts of things. the responsible parties like ourselves are not going to do that. responsible companies like ourselves that have the type of top tier management team that we have are not going to engage in those type of activities. ashley: what are the main benefits of cbd? >> the way it works is that it binds to the receptors in your body that regulate everything from sleep, stress, immune response, and a lot of other things. what it does is basically brings your body back into balance and gives it the ability to heal and repair itself. ashley: what kind of product am i ingesting? is it a pill? what is it? >> we have it in the form of gummies, in the form of tinctures, in the form of vitamins. we also mix it with vitamins. we have it in various forms. it just depends on your personal preference.

ashley: so despite the bans and the fda sitting on the fence, you believe this is a huge growth area? >> i'm confident it will continue to be and when you have, you know, senate majority leader like mitch mcconnell standing behind it, clearly it's going to work itself out. the fda is going to have to bend to the will of the people here. ashley: we shall see. thank you so much for being here. really appreciate it. very nice to meet you. good luck. all right. let's get a check on the weekend box office numbers. at the top, spider-man, far from home pulled in a cool $93.6 million. $185 million so far in total. rounding out the top five, toy story 4 grabbing the second spot, yesterday at number three. annabelle comes home is fourth and aladdin is number five. there's the weekend box office. staying on disney, yesterday during the women's world cup final here on fox, the first trailer from the live action remake of mulan premiered.

i don't know how you say that. it's set to come out next year, march 29th. let's check boeing while we're at it. losing out to airbus on a lucrative $6 billion contract with saudi airline fly a deal. that was to buy up to 30 of their 737 max jets. now they are going to airbus instead. boeing down, as you can see. checking the auto makers. dealers are saying customers, just not buying up those big roomy suvs as they were. what's happening? they are piling up on the lot. but it's leading to lower prices and some of those auto makers, you can see, down today, including tesla, off 1%. the d.c. area getting hammered with torrential rains this morning. check this out. this is arlington, virginia. it shows major street flooding. the downpours leading to dozens of water rescues in the region. get this, even capitol hill, not immune to the flooding. the pedestrian walkway that connects the capitol building to

the rayburn offices was closed earlier due to the rain. it has, we are told, since reopened. but that's a lot of rain. starbucks apologizing to six police officers after they were asked to leave a store in arizona. we are on that story. and the fallout from the first 2020 democrat debate continues with kamala harris now responding to joe biden's latest apology over busing and working with senators who supported segregation. we're on that story next. ♪ -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity on a scale of one to five? one to five? it's more like five million.

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ashley: the already frayed relationship between house speaker nancy pelosi and congresswoman alexandria ocasio-cortez heating up even more. that's after aoc and three other far left democrats refused to vote for the house's border funding bill, so speaker pelosi

fired off, she said this to the "new york times." quote, all these people have their public whatever and their twitter world but they didn't have any following. there are four people and that's how many votes they got. so how did aoc respond to that? kristina: the key to that was public whatever. alexandria ocasio-cortez immediately jumped on that and responded via twitter, that public whatever is called public sentiment and wielding the power to shift it is how we actually achieve meaningful change in this country. the senate bill's worth $4.6 billion. pelosi thinks it's a very strong bill. however, aoc did go to twitter again and wrote i find it strange when members act as though social media isn't importa important, but they spend millions of dollars on tv ads so people can see their message. i haven't dialed for dollars once this year and have more time to do my actual job yet we would rather campaign like it's 2008. she was responding because nancy pelosi said we have to have a

solution, not a twitter fight. yet what is it? ashley: a twitter fight. yes indeed. thank you. want to bring in doug schoen for his reaction, former clinton pollster. any way you slice it, this was a party that's divided and now it's become a public spat. >> it's totally divided. they are fighting behind the scenes, sometimes in broad view, but this is really opening a division between the speaker, who is traditionally seen as being on the left and these four so-called progressives who look to me that they're willing to bring the party down to advance their cause and their message. ashley: is nancy pelosi losing control or has she lost it? >> she has control. she doesn't have control of these four and i doubt that she ever will. but she is in firmer control of the rest of her caucus as far as i can see, as anyone that i have seen.

ashley: next one for you. another feud that's being played out among the democrats, senator kamala harris and joe biden continue to clash over mr. biden's comments about working with segregationists. watch this. i will get your comment. >> i'm sorry for the pain and misconcepti misconception. it just isn't an honest assessment of my record. i'm going to let my record, my character, stand for themselves and not be distorted. >> he's right to recognize the impact of his words and i applaud him for doing that, having the courage to do it. [ inaudible ] between he and i and that remains. ashley: i will let my character and record stand on its own. he was really hurt by this, wounded, even. how do you think he's handled it? >> less than ideally. look, he was not prepared, he

said, to deal with this. that's a huge error. he was an advocate and he's been one of voluntary busing. he was not one who thought that it was a broad-based policy that should be implemented but the fact that he got back on his heels and was in a defensive mode for two and a half, three weeks, has hurt his poll numbers, hurt his fund-raising, and the fact that he and kamala harris apparently by that sound bite are still going to disagree and fight to some extent is bad news for joe biden and i dare say bad news for the democrats. ashley: although, you look at kamala harris's poll numbers, they are starting to rise, at least more name recognition, more attention? >> sure. again, she only raised $12 million in the last quarter. i think that number's going to go up. but again, you wonder whether numbers going up because of divisiveness is necessarily going to help the party in the long term. ashley: joe biden was the

moderate, people saying oh, we have a moderate now, poll numbers were terrific, he was leading -- >> still leading. ashley: but is he wounded now and is it getting already at this very early stage, he's hurting. >> i think he is. i think he's down about 10 points. kamala harris is up. the only saving grace in the "the washington post" poll is trump is effectively tied with four or five of the candidates and biden remains ahead of trump. when you say he's wounded, he is and i have yet to see evidence that he can come back from this and combat the attacks that happened not only on the dealing with segregationists but also on the hyde amendment on abortion. ashley: new york's governor cuomo just signed a bill that allows release of president trump's tax returns. you think we will ever see them?

>> i doubt we will ever see them. ashley: is it important? >> i'm hard-pressed to see how it's important. i also have trouble with one other thing. the notion that that legislation on his tax returns and also allowing prosecution of people who have been pardoned is clearly seen as retribution or an effort to single out those who might have been in play. now, i worry about changing laws to get people or to get tax returns. that bothers me even if the underlying policy may or may not make sense. ashley: we have to leave it there. thank you so much. >> thank you as always. ashley: thank you. all right. guess what? new york city's going to host a ticker tape parade for team usa on wednesday, after they won their fourth world cup. the championship bringing the issue of equal pay also for women back into the spotlight. we are on that one, next. ♪

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ashley: an employee of an arizona starbucks coming under

fire yesterday after they asked six police officers to leave the store because the officers were making one customer uncomfortable. starbucks hq quickly jumping on the incident, apologizing and siding with law enforcement and responding with this. quote, they should have been welcomed and treated with dignity and the utmost respect by our employees. instead, they were made to feel unwelcome and disrespected which is completely unacceptable. at starbucks we have deep appreciation for your department and the officers who serve the tempe community. that's from starbucks. take a quick look at their stock. not doing much, down 20 cents today. $87.58 on starbucks stock. let's round out the show with another shout-out to the u.s. women's soccer team, shutting out the dutch 2-nil. their domination is rekindling the push for them to be paid equally as their male counterparts. why not? congresswoman ocasio-cortez tweeted her support for the movement. quote, at this point we shouldn't even be asking for equal pay for the u.s. women's

national team. we should demand they be paid at least twice as much. fox nation host abby hornacek is with us now. i have a feeling you agree with aoc on this one. i certainly do. >> yes, i definitely do. you know, i think that this is a very important fight. we know that they weren't just fighting for that fourth win in the world cup. they weren't fighting for that second consecutive win which is equally as impressive. they have already proven they are a dominant force. this just reinforces the fact they should be paid more. i think the biggest debate between men and women in sports is which gender is bringing in more revenue, and that's usually the gender who gets paid more. i think a lot of people are ill-informed and think the men's team brings in more. i looked at some numbers and between fiscal 2015 and 2018, the women's national team brought in $900,000 more in revenue than the men's team. if you look back to when they won the 2015 world cup, they brought in $1.9 million that following fiscal year.

so it really is a disparity between these two teams. they really should be paid more, for sure. ashley: yeah. they are so much more successful than the men's team. i understand there are lawsuits that are being filed. where does this thing stand, and what do you think could happen next? do they go on strike? >> you know, i think it's possible that they go on strike, but right now, we are really focused on they just won the world cup and a lot of people aren't giving enough credit to this team, that they did it without the distraction of a lawsuit. that's hanging over their head and a lot of pressure is on them because if they hadn't won the world cup, nou kryou know criti would say they didn't even win, why are they fighting for this. right now they will go full force ahead as they fight more and more for equal rights. ashley: they will get a ticker tape parade here in new york on wednesday. >> well deserved. ashley: yes indeed. what about a trip to the white house? does that kind of get pushed to

the side? will that happen? >> i think if we look over to history of this world cup, they have been very outspoken politically. a lot of celebrations, they have received a lot of criticism for those celebrations and megan rapinoe has been very outspoken about she's not really in for going to the white house. so it is going to be interesting to see what happens. president trump has yet to still offer up that invitation to the women's team. ashley: we should mention, by the way, of course, you are in cleveland, ohio now for the major league baseball all-star game tomorrow night on fox. give us a quick preview of the action. >> yes. so the a.l. is going for their seventh consecutive win. i think the key here really is the pitching staff. both teams have very strong pitching staffs but if you look over the last few years, besides last year, the a.l. was able to hold the n.l. to three or fewer runs. that just shows the strength of the pitching staff. but the n.l. is coming in hot. unfortunately, they are out of christian yelitch, who is out

with a back injury. he was supposed to be participating in the home run derby tonight as well. you do have a lot of great guys who will definitely battle that pitching staff that the a.l. has, you know. we have verlander and a lot of other great guys. ashley: lot of talent. thank you so much. losts subje lot of subjects. you are battling the wind. thank you very much. >> 15 miles per hour tonight. we'll see how that fares in the home runder by. ashley: more "varney" after this. . .

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ashley: we're almost out of time. we've been in the same range. down half a percent at 26,786. boeing lost a contract with saudi arabian airline that going

to airbus. those two stocks alone, probably bring down about 60 points. 3m also down more than 1%. that is not helping the dow either. we are out of time. we've done everything we could. let's hand it over to neil cavuto. thank you very much. neil: thank you very much, ashley. we're iran back to breaking limits but reports that it has the president reaching his. not talking about his poll numbers which look pretty good. more on that in a second. earthquakes shaking the golden state. new warning this could be the beginning. could billionaire tom steyer shake up the democratic field to look to join it? the jobs boost giving president a big, big boost. the president's approval ratings the highest since he took office. the tide that could be turning for him right now. elena, this is an interesting development because it is like the economy is catching up to his poll numbers