maria: my thanks to this panel. have a great day. "varney & company" begins right now. stu, take it away. stuart: thank you very much. good morning, everyone. it is the day after. here's what's happening. let me give you the state of play. china says america is destroying the international order by branding beijing as a currency manipulator. however, china's currency has been allowed to rise today just a little. xi jinping is clearly worried about hong kong. the authorities there have issued a warning to the protesters who they call criminals, don't underestimate our security forces, they say. by the way, gang members have again attacked protesters. there is also pressure on president trump as well. a big investment firm says if

the trade fight drags on, there's going to be a recession by next summer. right before the election. both sides have dug in. all signs point to a lengthy fight. that's that. now the market. following that huge selloff, we have a modest comeback this morning. down 767 yesterday, maybe back up 100, 200 for the dow at the open this morning. the s&p was down, what, 2.5% yesterday. it's coming back this morning, less than 1%. the nasdaq which was down 3.5% yesterday, back up 1% this morning. this is not a robust rebound so far. modest, at best. check interest rates. the yield on the ten-year treasury this morning coming in at 1.75%. by the way, more rate cuts likely coming from the fed this year and rates in europe are still heading south. hard to believe. hardly any government over there pays any interest at all. as for the flight to safety, the price of gold this morning at $1478, up another couple of

bucks. oil, not calling that a flight to safety but a key indicator, $54 a barrel. so how you feeling? nervous about your money? stick with us. you will know exactly what's going on. that's a promise. "varney & company" is about to begin. you only have an attack like this when you have a president who gives people permission to act on this hatred and this racism and this intolerance. >> it is shocking to me that he is so utterly self-aware and this is why from my perspective, he is not welcome here. he should not come here while we are in mourning. >> that would not be a welcome visit, given the environment that he's created over the past three, four years. he would not be welcome in my hometown. stuart: some democrats there adamant about the president not

visiting the sites of the deadly shootings over the weekend, but ashley, he's going to dayton and el paso anyway. ashley: we believe so. no real confirmation from the white house, but el paso, texas mayor said yesterday indeed, he will be visiting el paso on wednesday. still no word on whether the president, when he will visit or if he will visit dayton, ohio. it appears likely. look, you've seen the reaction there. veronica escobar, the democrat state lawmaker whose area includes el paso saying look, he's told the country we are people to be feared, people to be hated and from my perspective, he is not welcome here. this is a theme we are getting from some democrats, essentially blaming donald trump for the shooting. tim ryan, ohio, as we saw there, we should quietly tell mr. trump he's not welcome in the city because of his rhetoric on immigration. bernie sanders jumping in, i say to president trump please stop the racist anti-immigrant rhetoric, stop the hatred in this country which is creating

the violence that we see. stuart: more on this later in the show, but i think trump derangement syndrome knows no bounds at this point. ashley: right. stuart: onward it goes. let's get to the trade fight. the currency war with china. stocks had their worst day of the year yesterday after the government in china set the yuan, their currency, at below a key level. the president's tweeting about it. here is that late tweet. massive amounts of money from china and other parts of the world pouring into the u.s., for reasons of safety, investment and interest rates. we're in a very strong position. companies are also coming to the u.s. in big numbers. a beautiful thing to watch. market watcher scott shellady with us now. obviously question. does mr. trump have the upper hand with china? >> he's fighting a noble fight and that's great, but the problem is as my father would always tell me, don't pick a fight with someone that's got nothing to lose. there's no state media that's going to be bashing xi jinping in china. there's no state media that will

be telling him what he needs to do and there's not going to be no derangement syndrome there. we've got a problem where they are willing to do anything they can, whether that means sacrificing millions of people, too, to get something across. i think everybody's got the president's back here but he has to negotiate very acutely because this is something that's going to go on into the election, it's not going to be a short-term thing. it's going to be a bumpy ride going forward. i still hate the idea we are in a fight with somebody that doesn't care what they lose. that's always going to be the overriding problem. stuart: hold on a second. peter morici has joined us, economist. same question to you. does mr. trump have the upper hand with china, in your opinion? >> no. china has enormous staying power. for the reasons outlined, they're not going to budge until after the election. what's more, they are getting a lot of help from people like biden and kamala harris. basically, trump underreacted yesterday. calling them a currency manipulator basically puts in process activities that will take more than a year to reach fruition.

when china cut off agricultural imports completely yesterday, we should have responded with a 25% across the board tariff and told mr. xi if he reacted incorrectly to that 25%, it could go higher. he needs to communicate to the american people that their behavior in places like hong kong and the northwestern provinces indicates how difficult it is to negotiate with essentially a dictator and that we're not in for just a trade war, but rather, a complete reorientation of the u.s. economy away from china. that this is likely to be the status quo at least until there's some change in the regime's attitude in china. stuart: gentlemen, i'm going to editorialize later on the program and take the opposite point of view. i think president trump is in the very strong position and i think xi jinping is in a corner. let me move on to the markets. scott, you are the money guy here primarily, the trader. is the worst over? >> no. it's not.

this is something that's going to play on throughout the summer and into the fall and actually, maybe the next election. we've got an issue on our hands where we've got a trade war and a currency war, and we are fighting somebody who's got nothing to lose. that's going to be the problem here. while we see the dollar getting strength because we are the best economy in the world, we are going to be cutting rates because of that trade war and because of that currency war so we're now in a spiral here that is going to be very difficult to get out of. we have to, again, be very very careful how we choose to use these rate cuts and how we are going to manage the economy going forward because this is here to stay. stuart: okay. scott, this is for you. a presidential tweet just coming to us, here it is. as they have learned in the last two years, our great american farmers know that china will not be able to hurt them and that their president has stuck with them and done what no other president will do and i'll do it again next year if necessary. scott, i think he's talking about paying farmers subsidies for lost business, right? >> 100%. we have a family farm, as you well know, and i will tell you, the farmers out there will tell

you this. they would rather have open markets rather than a subsidy. bottom line. so while the president does have some good will capital to spend there, that good will capital does run out. stuart: i want to talk to peter about interest rates. the yield on the ten-year treasury this morning, 1.75%, still at that very very low level. the market is telling us there are more rate cuts to come. now, i think the silver lining here is lower mortgage rates. we're at 3.75% at the moment on the 30-year fixed. peter, is that mortgage rate going to head lower and if it does, i think it will, will it help the housing market? >> i think it could head lower but i don't know that it will help the housing market that much. what's really holding back the housing market are millenials and gen-xers with the student debt can't buy in because they are servicing the student debt. the fact is the zoning requirements close in are so tough where the jobs are being created around the big cities that it makes building starter homes very expensive and not very profitable.

so my feeling is there are structural problems in the housing market that are beyond the reach of the administration or the federal reserve. stuart: okay. let me sum it up. we've got a modest rebound for stocks. interest rates holding pretty steady. and we disagree on who has the upper hand in the trade fight. >> i guess you do but that's life. that's what makes it interesting. stuart: that's my show. thank you very much indeed. look at big tech. boy, did they take it on the chin yesterday. this morning, again, modest rebound. but look at amazon. amazon is up nearly 20 bucks. alphabet is up eight. modest rebound for big tech. chip makers, please. they took it, again, they were way down yesterday. back up this morning but it ain't no full rebound. most of them are up about 1%, maybe 2% for amd. the dow component disney, they report after the bell this afternoon. ahead of that, they took a hit

yesterday. ahead of the report this afternoon, they are at $140, back there again with a gain of $2.40. quickly to the futures market. if you're just joining us, we are in for a modest rebound on wall street this morning. then there's this. north korea launching two short-range ballistic missiles overnight, that's the fourth weapons test in less than two weeks. how does that play into the china trade dispute? we're on the story. some new york city businesses getting hurt by the increase in the minimum wage to 15 bucks an hour, cutting staff, eliminating shifts, raising prices. others have closed down all together. it is the law of unintended consequences. and trump derangement syndrome. i think it's at an all-time high after the shootings in el paso and dayton. i say it needs to stop. the trump 2020 campaign joins us next on that subject. "varney" just getting started. opportunity to experience thrilling performance. now at the lexus golden opportunity sales event.

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stuart: north korea launches its fourth test missile in less than two weeks, so susan, does that affect the china trade dispute? susan: very good question, because as we know at the g20 summit, we had president xi and president trump meeting face-to-face, and president trump headed over to north korea. as you know, china holds the keys to the north korean nuclear talks and i would say also the north korean economy as well. so this is the fourth in 13 days that we have seen short-range ballistic missile test. it's important to note it is short range, because obviously, if it's long range, that goes against a lot of the nuclear pact or this moratorium we have seen so far. stuart: i can't help but think beijing calls up pyongyang and says hey, fire off a couple missiles, please, because we have a sticky spot with trump and trade. ashley: we also have hong kong. we need to give them something to worry about. stuart: let's poke the bear a little bit. susan: i think timing is probably not controlled by beijing, but again -- stuart: no? susan: no, i don't think so.

you think they're trying to launch ballistic missiles to test the u.s./china trade talks? stuart: why not? susan: is that also to flex the muscle saying beijing is in charge here and we have other pawns to throw into this negotiation? stuart: i would assume beijing is in control of north korea. they are a client state. i would assume the timing is perfect to interfere with the china trade dispute. susan: right. stuart: it seems to me. i'm speculating. susan: fourth in 13 days, i would be very suspicious to see whether or not this timing actually is included in the trade talks. stuart: all right. fair and balanced. susan: i'm just saying. stuart: president trump now facing real backlash from the left over his plan to visit the sites of the deadly shootings, el paso and dayton. trump 2020 communications director is with us. the democrats are basically blaming the president for the shootings. how do you counter that? >> well, stuart, thank you very much for having me on here. what the democrats' default

position is no matter what the issue is to blame president trump, whatever the issue is, it's going to be president trump's fault. in the case of these horrible tragic shootings in el paso and dayton, the democrats demanded that the president come out and denounce the shootings. he did. they demanded that he come out and denounce bigotry, racism and white supremacy, he did and has done so on many, many occasions. you take, for example, cory booker, who was on tv yesterday, he said look, the president has to come out and condemn white supremacy and the host said to him well, this is what the president said today, is that good enough for you, and cory booker said no. so we went through and we found in just a few minutes, found 16 different instances where the president going back to 2016 forcefully condemned racism, bigotry and specifically white supremacy. 16 different times. and the democrats still are

running around under this pretense that the president hasn't done anything about it, when in fact that's not the case. trump derangement syndrome is alive and well, no question of that. stuart: i can just imagine when the president, if the president does indeed go to el paso tomorrow, the media will focus entirely on the reaction of local people who may, some of them, oppose him. that's going to be the money shot for the media. look, tim, i've got to -- look, in my opinion, trump derangement syndrome has reached an all-time high. i think it's got to stop and i want to know how you think you can make it stop. >> well, we just have to keep forcefully expressing what the president's record is and trying to counteract people when they completely misrepresent what it is that he has said. the president yesterday delivered a message, strong message of unity. he said that america will win in this situation following the shootings because america always does. it was a positive message, it was uplifting, he very

reverently talked about the victims of these shootings and their families and the next thing you know, the democrats are out fund-raising off of this, sending out e-mails trying to raise money on the backs of the people who were killed in these terrible situations. if the president does in fact go to texas and ohio, we do expect that the media will run to the political opponents and we saw joe biden on tv yesterday, for example, trying to lay these things right at the feet of president trump. well, by that very logic, then joe biden should be responsible for the dozens of mass shootings that occurred during the obama/biden administration. that sort of logic doesn't work. there are a lot of factors that go into situations like this that cause someone to go into a crowded place and murder a bunch of their fellow citizens, a lot of it has to do with mental health. the president called for addressing mental health issues yesterday. he also called for red flag laws to make sure that people who show warning signs of this type of behavior shouldn't get access to firearms.

called on social media companies because we know people who are out there on social media giving real warning signs to the fact they may be a potential danger, those are real concrete steps that the president is taking but you know, it's never going to be good enough because with the democrats, it's always about politics and it's always president trump's fault. just fill in the issue here. doesn't matter what the facts are. in their mind it will always be the president's fault. stuart: you will always be fighting with the media because they will always hate him. you've got a tough job. thanks for joining us. we appreciate it. >> thank you, stuart. stuart: back to your money. this is the day after the big selloff yesterday. modest rebound. look at that, the dow is up about 260. nice gain for the nasdaq. it was down 3.5% yesterday. back up maybe 100 points this morning. that's 1.3%. chaos at a democratic socialist convention. the use of gendered language causing the event to grind to a

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socialists, they say democratic socialists but they are really socialists, apparently they are a little tender as well. listen to this. >> first of all, james jackson, sacramento, i just want to say can we please keep the chatter to a minimum? i'm one of the people who's very very prone to sensory overload. there's a lot of chatter going on. it's making it difficult for me to focus. >> thank you, comrade. is there a speaker -- >> point of personal privilege? >> yes. >> please do not use gendered language to address everyone. ashley: guys, he, him, personal pronouns is the way to go. that's kind of a fascinating insight. well, it is. people have compared it to monty python, "the office" and all these different things. there you have it. stuart: i was brought up in england in the 1950s and '60s. i remember people calling each other comrade. ashley: oh, yes. yes.

stuart: now it's just plain funny. susan: they have problems -- stuart: unless they win. susan: their problems with sensory overload, imagine what we are feeling every day. i don't like that gendered language. stuart: okay, guys, here we go. check the market, please. we are going to go up, modest rebound. looks like a huge rally. up 270 points on the dow, up 100 on the nasdaq. but remember, we were down big-time yesterday. that is a modest rebound. we will take you to wall street, see what's happening to your money, after this. ♪ limu emu & doug mmm, exactly! liberty mutual customizes your car insurance, so you only pay for what you need. nice! but uh, what's up with your partner? oh! we just spend all day telling everyone how we customize car insurance

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stuart: the "wall street journal" says the minimum wage hike to $15 an hour in new york city really hurts some small businesses. susan? susan: so as we found with seattle as well, looks like the cost to benefit is 3:1 for the ratio and we are six months in as we raised the minimum wage to $15 an hour so it went from $9 to $11 in 2015, $11 to $13 and $13 to $15 by the end of this year. what they are finding is that the jobless rate is higher in new york city than it is statewide. we are sitting at 4.3%. compare that to new york state at 4% and what they're finding right now is employees are being cut, jobs are being lost, less hours being worked because it's

too expensive to pay them while business is trying to make money as well. stuart: told you. you could see this coming a mile off. what about technology? that's taken over instead. all right. it is 9:29.55. in five seconds we open the market. what we're looking for is how big a rebound from yesterday. here we go. we are trading now and we are up 114, 113 points right from the start. 122. we have not yet opened all the dow 30. up 130. looks at this point in the first few seconds, we are up about a half percentage point after yesterday's better than 2% drop. okay. that's the dow. show me the s&p. that is up two-thirds of 1%. a better rebound there. the nasdaq was down 3.5% yesterday. back up 1% this morning. check interest rates, the key barometer is the ten-year treasury. 1.76%. not much change from yesterday. the price of gold, that is a flight to safety, up a little

bit more. $1,478 per ounce. six-year high. bitcoin, down this morning. i don't know whether to call that a flight to safety or not. susan: alternative. stuart: $11,700 a coin as of now. stop sighing. the price of crude oil, $55 per barrel. not much change. mike murphy is here, d.r. barton is here, susan and ashley of course. mike, is the worst of the selling over? what do you say? >> i don't think so. i think we could have some more selling coming in. it really depends, not to punt on this one, depends on the headlines we will see today. if we see headlines from president trump or out of china that talk about more fighting, we are -- the markets are going lower. we had more than a 5% pullback off recent highs so if it looks like this is escalating there will be more selling coming in. stuart: what do you say? >> good that we get this bounce today. yesterday's low was within about a point and a half of a very important technical level from

earlier in the year in the s&p. if we get below that, we could have some more serious problems. i think if we can have steady as she goes, we have a good chance to rebound from here but i'm with mike, we are going to be under a lot of headline risk in between now and then. stuart: headline risk has been a problem for awhile. susan? susan: monday selloffs are usually proceeded by rebounds the next day. there has been criticism lobbed at jerome powell that he is a trade war enabler because now the futures are pricing in an 89% probability of two rate cuts this year, up from 39% just last week. stuart: okay. then we have morgan stanley says we may get a recession in about nine months, by next summer, if the trade fight drags on. what do you say to that? >> i buy their premise. it's not our economy. he said the global, we will get a global economic recession. that means global gdp will drop for two quarters in a row. i do not believe we can get a

u.s. global recession in the next nine months unless something really nasty happens. i don't buy into his premise for us. but for the globe, i can see it. >> one thing to remind viewers at home, recessions happen. they don't all look like the 2008 financial crisis. if we get a slowdown for two quarters, negative growth would be defined as a recession, but it's not always a massive negative like we saw in 2008. stuart: it would be real bad news politically for president trump. a slowdown in the summer of next year. couple of months before the election. not good. ashley: he's counting on the economy. stuart: there is pressure on president trump, political pressure, fix this, don't let it get out of hand because you don't want a recession or slowdown right before the election. ashley: it may play right into china's hands, who wants it to drag on. stuart: i think president trump still has the strongest hand here. >> he most certainly does. i will agree with you because when you say fix this, fix what? unemployment? fix wage hikes? fix the market? there's a lot that he's -- that

has been fixed already under his watch. stuart: but he needs to fix the trade fight in some way or another to avoid a real slowdown. susan: maybe he's representing his base as well in the rust belt and also the farmers across this country that he is standing up to china, which an administration hasn't done in decades, right? ashley: but as scott pointed out, they would much rather have a trade deal than subsidies. short-term pain is fine but it's getting more and more painful. stuart: the president has tweeted this morning about subsidizing farmers. i think that was in his tweet, subsidize farmers because we don't want those guys to suffer. got it. look at big tech. boy, if ever there was a group that took it on the chin yesterday, it was big tech. this morning, i think we've got a modest rebound. yeah, we do. apple is up 2%. up 1.5% across the board. not eradicating all of yesterday's losses by any means. look at that list. apple, amazon, facebook, google,

microsoft. any of them you would buy? >> i want microsoft to come down a little bit. i wasn't smart enough to buy it lower. i like microsoft. amazon down for five straight days, has lost 12% of its value. if you have been looking for an entry point on amazon, we own the stock. if you are looking for an entry point, right now is a good time to buy. susan: short interest in the fangs are at a record low according to merrill lynch. when there is a mentality of everyone trading into the same stock when the markets come down, these are the stocks that usually sell off probably the hardest. stuart: the number of people betting that big tech goes down -- susan: all-time low according to merrill lynch. stuart: interesting. check the big board. we are five minutes into the session and up 160 points. we were down 760 yesterday. how about the retailers? or chip makers. okay. chip makers, they are up this morning, taking big losses yesterday. modest rebound. same story with the retailers. clobbered yesterday.

not much of a rebound. walmart, up slightly. kohl's up three cents. macy's, nordstrom down. target unchanged. no rebound there. got to say that. blue apron, remember them? they lost less money but still down 3%. sea world, their sales revenues falling short. they're buying back some stock. that goes down well, up 6% there. marriott gave a not so rosy forecast. they are taking $126 million charge for the data breach. they are still up 60 cents, about $130 a share. disney reports after the bell. they are a dow component. they are the king of the box office, the streaming service, disney plus comes real soon. what are you expecting in the report? >> i think nothing too crazy out of disney but it's going to be a positive report. i want to see the guidance they have around disney plus. i think disney's a great company to own for people watching at home, to own this stock, because you talk about innovation a lot around big tech.

how about some innovation for disney. how about what disney has been able to do through acquisitions, through news services, through the theme park new rides. disney's a great company. >> it's going to be really interesting to see what they do talk about, that streaming service, their plus service, because let's talk pixar, marvel, "star wars." if they build a moat around those names and start talking about we're not going to let anyone else have those, or have limited access to those, they are going to drive lots of viewers into their low-priced streaming service. that's what investors want to hear. susan: as supported with that lower price. this is a quarter also where they are going to include the avengers marvel, that was record-breaking, $2.7 billion in global box office receipts. disney already owns 40% of the box office and they made more this year than the record they held back in 2016. stuart: 4:00 this afternoon on this network -- >> i will be anchoring. stuart: you're doing it? >> i'm on it.

stuart: all right. i want to hear about the streaming service. >> we all do. stuart: that's 4:00 this afternoon. what's next? okay. cbs, taking a cue from amazon, offering a prime-like subscription service. $48 a year gets you prescription drugs and other items delivered for free. that seems like a good idea. >> it's a good idea for the consumers but i'm afraid it's too little, too late. cvs and the rest of the big box pharmacy companies have been hammered. this is something good from a consumer perspective, it's going to help people who have to get a lot of their pharmaceuticals and they choose cvs. it will help a lot of marginalized people i think to not have to run out, find ways to get there. stuart: delivery is everything. >> so many people in this country are already prime members. big question, how many subscription services will the consumer sign up for? if it's $90 here, $40 there, it adds up.

stuart: like streaming services. how many you going to sign up for? you will end up paying more than you paid for cable. >> one of these days, someone will come up with a great idea to bundle all the streaming services together and sell it in one package. a lot like cable. stuart: is that your idea? >> that was cable. that's what we broke up. stuart: i know you are an early investor in most of these things. anything coming to mind? >> i'm looking for great ways to bring individuals, consumers, better content at a lower price. stuart: what a guy you are. please, make a profit. stuart: delivery is everything. listen to this. shake shack and grub hub are teaming up for nationwide delivery. look, may i make a point on this, please? this is not great for the restaurants. the delivery service takes a piece of the bill. that's a piece of your profit. susan: i will disagree with that. mcdonald's just teamed up with door dash, we have uber eats and they say it's a $4 billion

business for them, delivery on its own. yes, you pay a commission but can you imagine, the ticket prices you get back in receipts? there is a built on added value for delivery. ashley: you make up with volume, that's the whole point. you may be paying a little piece every time but if you catch on, there's a lot of people ordering online who have it delivered, you make up for that. stuart: is delivery that big? susan: yes, it is. >> that big and growing, stuart. stuart: city dwellers, i got that. out in the suburbs and rural areas, you think i'm going to get mcdonald's delivered to my farm? >> you may not, but there are plenty of people who want to have it done. it's a big thing, even if it's a loss leader, it drives more traffic into the stores. shake shack, look at what they have done competing against mcdonald's. they have done a great job. >> 1% or 2% same store sales growth in a restaurant, double digit growth in delivery. stuart: okay. okay. okay. get off my lawn. mike and d.r., gentlemen, thank you very much indeed.

lively performance today. quick check of the big board. i will stick with this. it is a modest, a very modest rebound. we are up 180. down 760 yesterday. amazon's chief jeff bezos is cashing out. he sold $2.8 billion worth of amazon shares in the last week alone. it's not clear why. bezos had previously said he plans to sell stock worth about $1 billion each year to fund his space company. that is blue origin. sure looks like we are in the midst of a new cold war, u.s. and china. there's no sign of a quick fix. everybody is going to feel some pain. my take on that at the 11:00 hour this morning. hong kong sending a warning to protesters that all criminals will be held responsible. don't underestimate our security forces. next, we have one of our china watchers. i want to know when and how this chaos in hong kong ends.

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stuart: where are we now? modest rebound in place, up 200 points. 25,900. fifth third bank corp, rather unusual name but it's a bank, they're going to raise the minimum wage for nearly 5,000 employees. they are going to pay $18 an hour and they start october 28th. the stock is up a little. the luxury new york retailer barney's bankrupt. are they another casualty of the retail ice age? what's their problem? susan: seems like it. well, exorbitant rents, for one. they said they had to pay double for their manhattan rents last year, $27 million. also of course, the move and shift to e-commerce. they are facing threats from real real.com.

obviously a lot of people have been shifting their purchases to online instead. they have a $75 million loan, meaning they have 60 days to find a buyer or they will liquidate. this is the second time barneys has gone under chapter 11 protection, right? stuart: you look at some of the main streets in new york city, they are ghost towns. ashley: they are. the rents are out of control. stuart: tenants have moved out. rents are out of control. susan: the landscape is changing on fifth avenue. henry bendel, 123 year retailer shutting down as well. amazon is looking to get in because there are reports they will get into the lord & taylor store. stuart: you call them retailers but on a different front, lord & taylor standard department store. i have to get to hong kong. i would love to go back, actually. the chinese government vows to punish protesters. phil yin is with us, a former cctv america business anchor.

phil, where and how -- when and how does this crisis in hong kong come to an end? can you give us some inside information here? >> good morning to you from seattle. it's good to be with you, stuart. you know, just 12 hours ago, we did a press conference from beijing regarding hong kong. we had the dow futures pointing to an opening of negative nearly 600, and there was some real concern that perhaps that beijing might take some extraordinary steps, as you hinted at earlier, and in that press conference from beijing, they just reiterated the same thing they did a day ago, which was a small group of protesters that are violent are becoming increasingly a bigger and bigger concern. they also highlighted the impact on the economy with respect to retail sales and international travelers. as we talked about last time on the show, you know, we've got this trade war, it's turning into a bit of a foreign exchange war, now we are into a bit of a political war and i think hong

kong is part of that nexus. stuart: when does it come to an end? do you see any early solution here? >> one of my sources inside the hong kong government highlights the fact many of these protesters are college-aged and high school-aged students. one of the strategies that some people seem to believe is that perhaps that once school begins in a few weeks, that the protesting will sort of calm down. the other option is the fact that you know, the last time around in 2014 with the umbrella movement, they basically just wore down the protesters so after protesting for day one and day two and day three, it sort of dissipated on its own, and perhaps that's part of the strategy that's being thought about from the hong kong side. look, everyone i speak to in hong kong, while we want freedom of speech and freedom of the press and all these things which are fantastic, it takes time, and china moves at its own pace. stuart: okay.

real fast question. do you think president trump has the upper hand in this trade fight or xi jinping? >> i think in this trade war, i have been asked this a lot of times, i think both sides are losers, honestly. i think president trump and the white house perhaps, you know, poking the bear over in china, and you know, we can argue about the details of the negotiations but from china's perspective, let me ask you this, and i will ask susan this as well, what's the incentive for china to have a big, quick deal any time soon? they are probably better off having what i call a mini deal. if they had a mini deal, both sides could save face, it would be better for businesses on both sides and at least that would be the beginning of some sort of larger compromise. stuart: you just have to wonder whether president trump will be in favor of a mini deal. we'll see about that. phil, thanks very much for joining us. see you again soon. thank you. let's get back to your money. the rebound day, very modest so far. dow industrials now up 150 points.

there you have it. 154. 25,800 is the level. that's a modest rebound. president trump blaming violent video games for leading to mass shootings like el paso and dayton. but is that really a fair criticism? we will ask the question from someone who knows. hey! i'm bill slowsky jr.,

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we must stop the glorification of violence in our society. this includes the gruesome and grisly video games that are now commonplace. it is too easy today for troubled youth to surrounded themselves with a culture that celebrates violence. stuart: all right. president trump there calling out violent video games following the weekend shootings. however, a study found that nearly all mass shooters had these traits in common. here we go. many experienced early childhood trauma. almost all had reached an identifiable crisis point. most have studied the actions of other shooters and they all have the means to carry out their plans. a commonality of all shooters. violent video games not one of the traits that shooters shared. joining us now is chieh huang.

welcome back to the show. i take it you will agree with the study and say violent video games are not a backdrop to the shootings. go. >> absolutely. there isn't really a lot of compelling evidence to suggest that vial ents video games actually beget violent crime. what i will see is back in 2015, the american psychological association made this connection between violent video games and increased aggression, decreased empathy, but it's really important to keep in mind the aggression they study is not what we are talking about here. aggression could be anything from hurling an insult to somebody or offering them, giving them a little bit of a shove. there isn't really a lot of research on violent crime that is connected with video games. to really hammer home this idea, i want to make two points. the first is fwhak back in the video games went up but the incidents of youth homicide went down from 16 to 9 per 100,000.

this started around 1993. keep in mind that 1993 was the first year that mortal combat 2 came out, so that doesn't make sense. the second point to keep in mind is that if you look at violent crime and mass shootings, keep in mind the violent video games we manufacture in the united states did ship overseas to europe, to south korea, to japan, to australia, yet the frequency of mass shootings we have in this country is a very distinctly american phenomenon. i don't think it's fair to lay blame on the industry. stuart: i take your point but other countries do not have the gun ownership and level of gun ownership the united states has. australia, europe, japan, is nothing like it is here. let me ask you this. you may not be able to have a direct causal relationship between a video game and shooting up a supermarket, but at the same time, if you have been playing these games and i have seen them being played, you sit there, you are shooting up everybody left, right and

center, if then something happens in your life, that could set you off because you have been playing these games. do you see what i mean? it's not a direct relationship. it could set you off. >> the way that i looked at this, when i mentioned in the '90s that the youth homicide rate went down, i have kind of a bit of a theory. i call this the pacifier effect. the idea is if you have a baby who is whining and crying all the time, you put a pacifier in their mouth and it shuts them up. it's the same thing with video games. if you have young teenaged boys who could potentially go out and become hooligans, if they are playing a video game and enjoy it, that time spent playing the video game is actually time keeping them off the streets. so i don't really think that you know, the case you are presenting is actually the case. the other thing i would mention, too, is that it's kind of unusual for donald trump to actually single out the video game industry when this kind of violence, the amount of violence

in video games is not too different from what you would see in movies as well. i don't really think that it's a particularly valid argument. stuart: okay. well, you have had your say and i have had mine, and we will continue from there. tian, thank you very much indeed. the latest polls -- no, we've got to go. more "varney" after this. from f. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias? how do we bake security into everything we do? we need tech that helps people understand each other. that understands my business. we've got some work to do. and we need your help. we need your support. . .

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stuart: there has been an escalation, believe it or not in trump derangement syndrome and it really ought to stop. it has infected every sector of our society. tomorrow, the president we believe, will visit el paso, the sight of one of the weekend shootings. democrat veronica escobar represents the district, she says quote, he has told the country, we are people to be hated. he should not come here while we are in mourning. that is a divisive statement. mr. trump is president of all the people including those of mexican dissent.

presidential candidate, tim ryan, the democrat, ohio, the mayor of el paso should tell the president is not welcome, beto o'rourke got downright abusive. he has no place in el paso. of course he is a racist. bernie sanders said stop the hatred in this country creating kind of violence that we see. there is strong degree of political opportunism here. they are running for presidency. they want to stand out with extreme language. here is another reason why the left won't allow anything nice to be conciliatory about president trump especially in "the new york times". "the new york times" published headline, trump urges unity versus racism. aoc jumped on that real fast. let this front page serve as a reminder of how white supremacy is aided by the cowardice of

mainstream institutions she tweeted. if you don't call the president a white supremacist you are table. "the times" headline quickly changed to this, assailing hate but not guns. quite a difference. now, look how far we've come. trump hatred has taken over. he must be described in the most vicious terms. i don't think we've ever seen anything like this before. no good will come of it. one last point. the president will also be visiting, we believe, dayton, ohio, tomorrow. that is where a gunman killed nine over the weekend. he was reportedly a supporter of the violent left-wing group antifa, as well as bernie sanders and elizabeth warren but we don't hear anything about responsibility or blame there, do we? the second hour of "varney & company" is about to begin. ♪

stuart: all right. i keep using this word, maybe i better change it, modest rebound. ashley: that's all right. stuart: it is modest, isn't it? down 767 yesterday and we're up 170 this morning. look, we just got the latest read on job openings. this is the jolts report. ashley: it fell 7.35 million. stuart: still up there. ashley: which is a very strong number still. i believe there are still more job openings than people looking. still very strong. stuart: this is not a market moving number. ashley: no. stuart: but it is indicative of still a very, very strong job market. a market, the stock market paying little attention. we're up 180 points as of now. i want to bring in bill mcgurn to answer my editorial at the top of the hour. he is "the wall street journal" editorial board kind of guy. do you agree -- look, i think trump derangement syndrome has hit a new high. i think it has pot to stop. it is infecting all sectors of

society and are you with me on this. >> yes. we see democratic presidential candidates making these outrage just charges. a lot of them stem back to this mythology of charlottesville that the president was endorsing white supremacy. it is really debilitating. you mentioned the dayton shooter and elizabeth warren. the guy who shot steve scalise was a bernie sanders supporter. you didn't see people blaming them rightly. rightly. stuart: shooter, shooting those republicans he said this is for health care. >> right. i think it is crazy to do that but it seems to be done more one-sided than the other. perhaps this is what you do when you don't really have substantive message campaigning against the president, right? stuart: i have got two questions. first of all, do you see any decline in this? do you see any, not going to say return of decency, but a more civil dialogue? >> no. the irony, the great irony, the people shouting civility,

loudest, are often the most rude and cynical and twisted in their use of these charges and so forth. to call someone white supremacist or racist should be a big deal. the only thing i can see dissipating, they have so overused the word. people are so cynical and now the guys who seem to be using it most are like beto o'rourke, down in the polls. this is the way he feels he will jump forward. maybe people get tired of it because it has been so stripped of any real value. unfortunately. stuart: unfortunately. but one can but hope. glad you're in agreement with me, welcome aboard. >> i'm sure if we continue we would argue about something. stuart: impossible. bill mcgurn, out of the question. thank you, bill. >> thank you. stuart: check, again let's get back to the stock market. we're up 190 points. down 760 yesterday. shake shack, grubhub, are

teaming up for nationwide delivery. seems like you got to deliver the food these days or you ain't nothing. staying on the markets, my grammer there, investors looking in safety in gold and bitcoin. that's true. our next guest says cannabis stocks could be the new safe haven investment. jason rotman, ever plus director is with us. make the case. you're talking about charlotte web's and apriah. two companies, tell us about it. >> they're very different companies. let's start with "charlotte's web" it sells federally legal products to in the united states. no thc. it is not actually cannabis per se. it is hemp, a non-psychoactive form of can that is b they're all cbd base which is huge nutritional trend, only going one way higher.

charlotte's web is one of the few turning positive, top-line growth. companies with that quality. stuart: talking about a cbd company, charlottes web holdings. they're down 10% this morning. that is not much of a safe haven. secondly, you're suggesting that cbd is the trend that is still to come. i think the market is overloaded and the claims for cbd are unproven? >> well, the claims for cbd, stuart, not to turn this into a science show are actually, you know, quite substantiated. charlotte was a girl in colorado that was suffering from hundreds of seizures per day. the only thing that worked was actually the original charlottes web product, creating a whole company based on one girl's

healing number one. number two, charlottes web was up 10% while dow jones was down 700 points. i think this company will stand the rest of time. stuart: the other is apria. that is full-scale, thc, get you high kind of company. >> you could say that if you wish, yes. it is based in canada. they are one of the few companies, again in this industry that is turning a profit. so you know how this year, the major ipo trend, this is in the u.s. like zoom. zoom exploded on the ipo, a tech company, because it was profitable. uber, as much as everybody likes uber, did not become profitable on the ipo because the money is losing money hand over fist. this nays end industry like the cannabis industry should attract money. why? because it is profitable already.

stuart: profit is the top of mine on wall street, that's a fact. jason, we will bear in mind weed as a defensive play. got it. and cbd. thanks very much, jason. china issued a strong warning to hong kong residents. sounds ominous, susan? susan: they vowed to jail protesters who break the law. they jailed 148 on monday. five straight days of protest and also increasing violence as well. for instance, yesterday, molotov cocktails being lobbed outside of police stations. you have cars running through protester barricades. of course the ongoing violence of protesters fighting, being beaten by gangs. some would call them. some would call them triads. part of the gang and mafia regime. that beijing says the hong kong police are fully capable of punishing criminal activity. the fact they are giving i guess the responsibility back on the hong kong police because there have been concerns, maybe the

pla or the chinese military, like tianamen square might be rolling in the tanks, i think this is actually a very good sign that china is going to let hong kong work itself out. stuart: i still think xi xinping is in a much worse situation than president trump in this trade fight. that is my opinion. susan: he has headaches and concerns to worry about, that takes up more of his time. stuart: we'll argue about this the next three hours. ashley: excellent. stuart: serious stuff, president trump says he wants mass murders and those who commit hate crimes to face the death penalty. he doesn't want to wait years to execute the killers. will he get his way on this one. cabot phillips asked democrat voters to name one of joe biden as accomplishments. they had kind of a tough time. you will see the tape. young democratic socialists holding convention over the

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stuart: gains of early in the morning have being pared back. we're up 99, 100 points. not much of a rebound. our next guest asked democrat voters in detroit last week, right about the time of the debate, name one of joe biden's accomplishments. watch what happened. roll tape. >> i don't know of a specific accomplishment of his. i know there are things he can put his name on, this was done while i was in office. this was done while i was in office. >> to be honest with you, i'm drawing a blank on what he accomplished. i do know that he has fought for

americans. >> i don't know. >> i think his greatest accomplishment was being the vice president for obama. stuart: joining us now, the man with the microphone, right there, cabot phillips, joins us, campus reform media director. look, obviously they had a tough time, i take it, that was edited. you must have done -- no, not at all. >> absolutely not. these were the most fired up passionate democrats in the country. they're outside of the debate voicing their support. stuart: we only played a small part of all interviews you did, you're telling me nobody could come up with one single accomplishment, really? >> that goes on the entire day. i don't think is just these people. if you ask the average american, they will draw a blank. there is not a long list of joe biden can point to. he is guy in politics 40 years, now says i deserve a participation trophy. i will take the white house. i think a lot of democrat voters, yeah, i support joe biden, not because they know his accomplishments, but they

know his name. they feel like he is inevitable. feels like being the nominee. go ahead and support him. you end up getting results like this. you could do it for a lot of americans they would not be able to name anything. stuart: let me come back at you. being elected president is not just about the policy positions you take in the future, your successes or failures of policy in the past, what kind of person you are, whether you're likeable. i think a lot of the people were saying they like his demeanor. they like the fact he was vice president with president obama. that's worth something in presidential politics, isn't it? >> there are plenty of nice people on the debate stage they could go with. there is pressure on the democratic party to go with biden, because he has been kind of hand-picked. similar to what happened with hillary clinton. that didn't play well with the hand-picked establishment candidate. interesting aspect, bringing up president obama was initial strategy of the biden campaign. look what happened on the debate stage. people went after him for his

cozy relationship with president obama. the reality democratic party shifted so much to the left, president obama's policies were r no longer left enough and biden got attacked with that. saying i was president obama's vice president, i don't think that will work with the state of the democratic party where it is. stuart: as you know, i'm sure, i well tell our viewers this, the young democratic socialist convention held over the weekend. i want you to listen to them, they had some dispute over background noise and use of the word, guys. watch this. >> first of all, james jackson, sacramento. i just want to say can we please keep the chatter to minimum. i'm one of the people very, very prone to sensory overload. there is lot of whispering, chatter going on. making it difficult for me to focus. >> thank you, comrade. if there is a speakers against -- >> point of personal privilege? >> yes. >> please do not use gendered language to address everyone.

stuart: cabot, i would call that priceless. i would want to know if it is common on the campus these days? >> it is real. it is easy to watch the video, say these are crazy ones. this is the fringe. if you think this is not common go, look at campus reform. we cover this all the time on campus just a few weeks ago. we broke a story at colorado state, where the university published a language guide not to use the word american, hip-hip-hooray, cakewalk, things like that. those could be offensive. when the bar for using language is don't use it if it could offend people, you're eventually not going to be able to use anything, completely subject to the whims of these social justice warriors that is example of free speech suppression, you can't use that, because it might offend me. it reads like a parody. i assure you this is real. stuart: comrade, i have not heard that in a long time. cabot, thank you very much indeed, exposing good stuff, excellent, thank you, cabot. former new york lieutenant

governor betsy mack -- betsy mccoy calling the $15 an hour a nail in the new york city economy. a month after the $15 is here. betsy is here on the show. tony morrison, first african-american woman to winnow bell prize for lit at that rush, has died. her book, beloved was later made into a film by oprah winfrey and danny glover. morrison was 88.

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i will read it to you. today i'm directing the department of justice to propose legislation insuring that those who commit hate crimes and mass murders face the death penalty and this capital punishment be delivered quickly, decisively, without years of needless delay. judge andrew napolitano host of "the liberty file" on "fox nation" joins us now. will the president get his way on this? >> well yes and no. hate crimes that result in death already do carry capital punishment. the president has been in favor of accelerating the rate at which capital punishment is administered since before he was president but that is really not a function of the congress or the presidency. that is a function of the court which quite frankly intentionally builds in a series of appeals before anybody can be executed. federal executions are very, very rare. i don't think the feds have execute anybody in six or seven years. the president wants to accelerate that pace.

i don't think he will be able to do so. in terms of hate crimes that do not result in death, they cannot be exposed to capital punishment. supreme court says, with the exemption of treason, no one can be executed for a crime unless that crime resulted in death by the person's hands. stuart: i think you oppose the death penalty, do you not? >> i oppose it on moral grounds but the court at times has found it constitutional. at times found it unconstitutional. at the present time it is constitutional. many states have done away with it. the state that you and i live in, new york, new jersey, does not have the death penalty by legislative behavior. stuart: there is always a delay. as you say, the supreme court builds in appeals to insure there is a delay. >> yes. stuart: doesn't that deny the, not the efficiency but the deterrent factor in the death penalty? >> here is a figure that will drive the president crazy.

the average duration of time on death row in california, 20 years. 20 years between the death sentence and its administration. that is the most extreme. texas and florida which is a lot shorter. stuart: but, there are some cases where the death penalty was imposed incorrectly. >> yes. stuart: the person who was found guilty was in fact innocent. >> that is the reason for built-in appeals. there is a group of lawyers. barry scheck, famously on the o.j. team, he heads the team, the innocence project. it is unbelievable how many death sentences they have gotten the government to agree should be reversed because of newly discovered evidence or improper use at the time of dna. so the delays are proper. i know they frustrate the president. they proper for the just administration of our laws. stuart: the president will not get his way on this? >> i don't think so. stuart: judge, thank you.

cord-cutting, the bain of cable television, actually, it is accelerating. new research suggests a quarter of households will dump traditional tv in the next three years. ouch. that hurts. check bitcoin. it spiked yesterday. has it become the, safe haven, kind of like gold? susan shaking her head, no, no. we'll ask ron paul, is it a safe haven investment? he is in our next hour. ♪ fact is, every insurance company hopes you drive safely. but allstate helps you. with drivewise. feedback that helps you drive safer.

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♪ ♪ want to get you into my life stuart: soussan, tell the truth have you ever heard that before. susan: no, i haven't. is this from the first, second or third album? >> i haven't a clue. it is a long time ago. staying on the british theme here, if ashley will stop singing? ashley: can't help it. stuart: a french inventor successfully soared over the english chan on a hoverboard. he finally made it. >> he went from 22 miles from france to dover. this is absolutely fascinating, but, he didn't do it in one go. that is the caveat. he had to stop, he only had ten minutes of supply of fuel on his back. he makes a bit stop, halfway across the channel, lands on a platform, refuels, goes the rest of the way. it is still pretty darn remarkable. he got up to speeds of 106 miles

an hour. he invented this particular hover have board. you may have seen them at the bastille day in paris where he made such an amazing impression, hovering around the celebrations there. you're asking, anyone interested in this? yes. there have been defense companies in france interested. french government has given him a grant to even more develop this technology. that could be the future right there. will make a ton of money. it is very impressive. stuart: would you ride one? susan: yes. ashley: i would love to. stuart: i wouldn't. ashley: oh, i would. this has a computer on it to stablize. he has the jet back. there is a computer making sure it is nice and safe. stuart: you know what they say about computers? nothing can go wrong, go wrong, go wrong. susan didn't get the joke. you have to be around a little longer. susan: okay. stuart: it is funny. we have to check that big board because, there ain't much of a recovery, not much of a rebound.

down 760 yesterday. up 88 right now. disney reports after the bell. what we're looking for there, when we make their report, is any news on the upcoming streaming service. you can watch the results coming across the transom, 4:00 this afternoon on the fox business network. let's talk more about streaming. this is seriously bad news, more and more homes are scrapping cable subscriptions. give me awful numbers. susan: it is awful. 25% of households will ditch traditional cable by the year 2022. that is in three years. in this year alone, 19% of households have cut the cord. where are they going? as you mentioned streaming. so the recipients are netflix, hulu, amazon prime, probably in the future disney will probably get a lot of subscribers, with at&t and warner media new offering as well. as programing costs go up, subscribers are coming down, guess how these bundles will rye to make more money?

they will charge advertisers more for those slots but advertisers, probably won't pay as much, they're saying if everyone is migrating to the streams services why should i pay more for these advertising slots? but if you unbundle, you think about it, a lot are cable providers, right? they're also telcos like comcast and also at&t. if you unbundle, you actually can charge more, make higher margins on charging for broadband alone. stuart: well it is the cable cutting that really gets to me. i don't care where you go. don't cut me off. ashley: the cable guy? stuart: the cable guy. remember him? we'll have him back. let's get to china trade. we have curtis ellis, former trump campaign trade advisor. curtis, let's get this straight. i don't think there is any quickened to this trade war, what do you say? >> i agree with you. there is no quickened to the trade war. the president is not going to capitulate. let's keep the eye on the ball.

remember what is at stake here. china is out to take over the world, they are using economic means to do it. if they achieved their goal, we will not have a free market economy. we will not have democracy. we won't have a country. first they came for the factory workers. the people in michigan, ohio, pennsylvania, understand that very well. then they came for our high-tech. and then they came for intellectual property. now think about this, stuart. if we don't have property rights, if you don't, aren't secure that your innovation is going to be protected and you're going to be able to make money by innovating there is no more innovation in the economy. there is nothing left for our way of, our way of doing business. yeah? stuart: join this argument, because we're going on for 90 minutes now. i say, that president trump is in a much stronger position than xi xinping of china. i think china's leader is in a corner. i think he is boxed in.

i think we're in the stronger position. what say you? >> absolutely we are. look what happened when they devalued their currency. number one we declared them a currency manipulator which is a symbolic gesture. but remember, right now there is regulation in written in the commerce department by kaplan and others to allow us to put tariff on china for devaluing its currency, countervailing duty. they devalue currency 10%, we hit them with a 10% tariff. they don't have that many tools in their box. stuart: on the other side of the coin, let's look at president trump's position here. a large firm on wall street says we'll go into global recession if the trade fight keeps up, that we'll go into global recession, summer of next year, right before the election that

is not in president trump's interest. >> as long as the american economy is steady, doesn't matter about a global recession. they keep doing this bait and switch. the economy, are they talking about the american economy or the global economy? all of the indicators show that the american economy remains strong. i tell you what, people in pennsylvania, ohio, michigan, wisconsin, they understand, we've been in this trade war for 30 years. they have been bearing the brunt of it. they are happy to see president trump take a stand. if it means they have to pay a little bit more for bedsheets or tube socks, they're saying we're willing to make that sacrifice. look at arlington cemetery, look at others sacrificed to keep our country the way of life. that is the way the voters feel. stuart: tough talk from curtis this morning. curtis ellis. thanks for being with us. we'll see you again soon. >> thank you. stuart: north korea launched two more missiles. this is the fourth launch in less than two weeks. ash, i have to have a question, is this part of the china trade

dispute that maybe beijing says, they launched today, we want to put pressure on trump. ashley: is may be speculation, it is speculation. it is also a case of north korea upset it is not getting anywhere with trying to loosen sanctions on itself and firing off these missiles. they're upset -- stuart: i can hear a buzz. ashley: they're upset, oh, is that me? stuart: that is your rf. ashley: how is that? no, doesn't help. south koreans and u.s. are doing military drills and they start in ernest on august the 11th. they're very upset about that. stuart: okay. i can see that. ashley: is china involved in some way? is the parent -- stuart: in my opinion? probably. ashley: or at least real potential. stuart: i am speculating. ashley: yes you are. stuart: now, china, warning america, if america deploys missiles in asia, land-based,

intermediate range missiles, deploy them anywhere in asia, china says, they will take countermeasures. sure sounds like a cold war to me. that story coming up in our next hour. new york governor cuomo, slamming new york city police department officers for handling of the string of water bucket attacks. they walk up to cops to does them with water. the governor cuomo says the officers appear impotent. you will hear more about this next. ♪ welcome to the place where people go to learn about

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this kind of plan goes with you anywhere you travel in the country. so go ahead, spend winter somewhere warm. if you're turning 65 soon or over 65 and planning to retire, find out more about the plans that live up to their name. thumbs up to that! remember, the time to prepare is before you go on medicare! don't wait. get started today. call unitedhealthcare and ask for your free decision guide. learn more about aarp medicare supplement plan options and rates to fit your needs. oh, and happy birthday... or retirement... in advance. stuart: down 760 yesterday. up 145 right now. modest rebound at best. look at this. this is fifth third bancorp. the stock unchanged. they will raise the minimum wage

for nearly 5000 of their employees. they will pay $18 an hour. that starts on october the 28th. stay on the minimum wage. "the wall street journal" says that new york city businesses are struggling. they have had $15 an hour minimum wage imposed for six months. increased costs, forcing employers to eliminate shifts, raise prices, cut staff. betsy mccaughey has experience with this. former new york lieutenant governor. you warned about this, law of unintended consequences. >> what you see happening in new york city, you will see happening in the seven states that already enacted gradual increases in the minimum wage to $15, such as connecticut, illinois, california, maryland, blue states. stuart: yeah. >> but here's the issue. more people will lose their jobs. the congressional budget office reported if this goes nationwide, the house democrats are pushing for, the fight for

15,. 3.7 million people would lose their jobs. some people will gain, because they will have more income, but many more people will lose. the democrats are arguing that nobody can raise a family on minimum wage. that may be true but very few people, stuart, getting the minimum wage are raising a family. if you look at bureau statistics half are under 25. six times have as part-time job as full-time job. these are entry level people acquiring the basic job skills so they will be ultimately worth $15 an hour or more. stuart: you do this, you go to $15 an hour, and you basically, you eliminate entry level positions. >> oh, yes. you see fast-food is already doing that. restaurants are doing that with automated hostesses, take your own seat. that sort of thing. you can only charge so much for a bowl of pasta or a burger. stuart: you're right there. let me move on to this, governor cuomo, governor of new york, he went after the top brass at the

new york city department of policing. he was discussing the recent water bucket attacks. so first of all, listen to governor cuomo. roll it. >> it is one of the most disturbing, embarrassing situations that i've seen. i don't know how you are training police officers, when you are basically assaulted, that is an assault, you retreat. stuart: i wish we could run more of that. there is the video. >> it's a disgrace. really the buck stops with mayor de blasio, because he is sending a clear message to the police, not to respond. he is vying for the support of the far left of his own party. of course he is out in iowa and other places, campaigning to be president, really doesn't give a darn what happens in new york. so he is appealing to the felons and illegals, and he can say to law enforcement, law-abiding people, we don't care -- stuart: absolutely outrageous. absolutely outrageous.

that is assault on a police officer. >> many, many, democratic politicians are claiming this is racial issue. a brand new study came out, national proceedings of the academy of science that shows that police officers, regard let's of race, fire on or respond to an assailant, not based on the color of the assailant. black officers, white officers, likely to shoot an a sail ant, based on their actions, not their race. race has nothing to do with it, i want to tell our viewers, wednesday night, mayor de blasio will be with sean hannity on the fox news channel. that is must-see television. >> absolutely. stuart: stay up for that. >> i will be glued to my seat. stuart: betsy, thanks for joining us, appreciate it. a lot of talk about the new gun control laws after the weekend's mass shootings. senator mcconnell says he would be open to legislation. speaker pelosi would bring the house back from recess to talk gun control if the senate is on

board. you would think two sides get together to tackle this? we will ask brian kilmeade who is next. tensions running high in hong kong. protests continue. china threatened, they said they might keep the military out. they said the police force will handle it. hong kong's chief executive is refusing to give in to protesters demands. what's the endgame here? we will discuss. ♪ from the couldn't be prouders

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stuart: would you like to bank with apple? apple sent out the first invitations to apply for its credit card. what do we know about the credit card? susan: it is so exciting. apple invited select customers to apply for the apple credit card. it will roll out broadly to one billion appeal, iphone users later this month. this card is simple. no transaction, no penalties or fees. interest rate 13 to 24% depending on your creditworthiness. no reward points. you get 3% cash back on

apple pay purchases. 2% back and 1% daily cash. instant approval. one minute. that is all you need. stuart: might be a customer. sounds good to me. ashley: we've been warned. stuart: that time on a tuesday morning when we go live on the radio with brian kilmeade. he is the host of the "brian kilmeade show." brian, every time there is a shooting a mass shooting a gun control debate gets started. nothing ever gets done. will something get done this time around in your opinion. >> i don't know. the bump stock thing did get done. the president did it through executive order. the one thing i think possibly could get done, going through my callers here today, and, being on the show, "fox & friends" this morning, i sense that most people agree that if you are violent as a 16 and 17-year-old, as the dayton shooter was, you should not have your record expunged when you're 18. that gun shop owner, or the

whoever has a booth at a gun show, when they run the background check, can you imagine how that man or woman feels selling a gun to the future killer of people in dayton or, people in el paso. so i would think that if you have a rape list and a kill list in high school, i don't want that record expunged. definitely that violence is not assuaged or just plowed under when you become a young adult, especially when you become a 20-year-old, and you tell people i'm not getting good enough tips, i might kill the next person that doesn't tip me. that is something that could be done. stuart: look, i want to move on real fast, to something that you and i talked about off-camara this morning when we were doing "fox & friends." you told me there has been a sharp decline in youngsters actually participating in sport. give us that story, will you? >> 10 years ago, 45% of kids were playing some sport between six and 12.

down to 38%. multiple things. they're on their phones, right? they're also gets expensive, number one. number two, these coaches, coaching them like they're pros. number three, if you're good, who cares. if you're great, oh, i want to get you into college, start on high school, ninth grade, 12th grade. what if you're good? a good lacrosse player, there doesn't seem to be a market for you, or pushing you. a lot of us are not born great athletes, me among them. why am i practicing on my own, running on my own? i can't get a scholarship to nebraska. i can't get a full ride to alabama? why am i bothering? since when do you have to be great at something to work hard at something? therefore, it is too expensive. i'm just okay. probably not going to get money for college. i guess i will do something else. no longer fun. stuart: i see your point but the greatest decline is in football and baseball, isn't it?

very traditional sports. >> football because of head injuries. viewers, football is so healthy in terms of young audience members, fantasy football, betting, has whole generation involved. baseball has a real problem. for people that go, they like it. for ones that play, the game is great, for stadiums, so much to do, but there is a generation looks at this, that is my dad's sport or my grandfather's sport. it is too slow, not enough action. i'm telling you, especially in the inner-city communities, they're walking away from baseball. that is, that is a problem. i know we're both biased because we're soccer fans and players, but soccer has the most diverse ethnic background. it is the fastest growing player and league mls is growing like wildfire. that might just be the future. lacrosse, not as a pro, but as an amateur sport is also on fire. stuart: fascinating story. i think influence of these

things that is turning kids away from sport. this is the principle thing, in my opinion. hey, brian, you're all right. we'll see you again soon. >> all right, stuart. you seem nice too. stuart: see you. marriott, the hotel chain, they're taking quite a big charge on the data breach. how much is it going to cost them? susan: $126 million. that is what they pegged so far in the latest earnings. 383 million guest records, including passports and credit card information since 2014. this goes back to starwood reservations database. don't forget starwood bought marriott. they merged to be the world's largest hotel group. compare that to equifax. equifax had only 180 million customers stolen. 383 versus 183. you can argue equifax is more sensitive. stuart: does marriott split 126 million between people whose data was breach or that is what the cost is to fix this problem,

which is. susan: i would imagine both. penalties and customers. stuart: 126 million. susan: that is a bargain. stuart: it gets expensive. coming up my take on the china trade war. no sign of a quick fix but i think xi xinping, china's leader, i think he is losing ground. president trump has upper hand. just my opinion. my editorial coming up next. check the big board with all the market volatility, i want to know where is a good place to put my money? i will ask one and only charles payne. he is on the show. trump derangement syndrome is at all-time high after the shootings. what is the trump 2020 campaign going to do about it? we're asking them next hour. more "varney" after this. ♪

stuart: it's a trade war. it's a currency war.

it's a new cold war. the world's two largest economies are going at it and everybody feels the pain. there is no sign of a truce. there is no sign of a quick fix. and the escalation continues. america has formally declared china to be a currency manipulator. that opens the doors to more tariffs. china says america is deliberately destroying the international order and they're not going to buy our farm products, either. that's pretty strong stuff. step back for a moment and look at the big picture. it's china and its leader, xi jinping, under the greatest pressure. this is my opinion. china has big internal trouble, hot money is on the run. that's called capital flight. very bad news. chinese companies which pay their debt with expensive dollars, they're in trouble and that's called bankruptcy. then there's hong kong. xi's achilles heel. this morning, new reports that government organized thugs have again attacked demonstrators and a stern warning from the

authorities, don't you underestimate our security forces. what does that mean? xi is in trouble on the home front. so is president trump but that's not nearly as bad. the president's problem is the impact on the economy. yes, it is slowing. a big investment firm says if this keeps on, the fight keeps going, we'll be starting a global recession in nine months. that's next summer right before the election, which mr. trump hopes to win on the back of our prosperity. to president trump, the trade fight is an electoral problem. for xi jinping, more serious than losing the election. chinese politics can be brutal. the communists keep firm control by promising political stability and rising prosperity. xi is losing ground on both fronts. trump has the upper hand, in my opinion. the third hour of "varney & company" about to begin.

stuart: on days like this you need charles payne. lo and behold, he's here. he's the star and anchor of "making money with charles payne" on the fox business network. let's get at it. you heard my editorial. i say president trump has the upper hand. what say you? >> i agree 1,000%. stuart: you do? >> yeah, listen, i keep hearing folks say china's got a 100 year game plan. it was called made in china 2025, not made in china 2055. bottom line, they have had a hundred years to get to where they are now but there were a lot of bumps and bruises which fuels their fire to this day. there was a power struggle when xi got in there. there are different forces within the communist party. the politburo just had a meeting recently over this last weekend so he set himself up for president for life as long as things keep going well. their stock market peaked in 2015. he is in a corner.

i know he's got to look strong on one hand, but they lost -- they admitted they lost two million jobs already directly associated to the trade fight. two million industrial jobs. in a nation that really has to keep that conveyor belt from poverty, from extreme poverty, the middle class growing. if that breaks down at all he's in trouble. stuart: the other side of the coin is president trump's position. morgan stanley, yes, morgan stanley, they say look, we've got a global recession in nine months in the trade fight keeps going. that threatens president trump's electoral position in 2020. >> in fact, i think the only thing that could derail the trump re-election would be recession before the election which is why elizabeth warren saying one would happen was a brilliant move on her part just in case the wheels do come off, she can say i was the one who predicted it. having said that, i often hear commentators say the market is down and is going to hurt trump's re-election campaign. the people that will put president trump in office aren't watching the market like we are. so they feel good.

their 401(k) is up, they're not too worried about the nuances, the day-to-day movement. as long as they know president trump is fighting for them, they are on his side 100%. so recession, though, i think is the only thing that can derail his re-election chances. stuart: here's what worries me. big picture now. this is not just china versus the u.s. it's not that. it's the spiraling down of interest rates. every single european government now pays no interest at all on a government bond. here, the rates are coming down, down, down. i see that as a deflation threat. what do you say? >> i have been saying this all along. it's gotten worse in the last couple days, masked by the headlines. yesterday, the services prices number was down dramatically. friday last week, the manufacturing side of the economy is in a deflationary death spiral which is sort of ironic. remember when this whole trade war began, we were told manufacturing prices would go up. they have gone into complete free-fall. you know, listen, i know the fed is trying to be cool, keep a

calm, sort of calm presence about them. even today, the reason this market rally has doubled is because of the most dovish member of the fed saying maybe one more hike, we'll take a look. i understand they are trying to look calm but sometimes when things are excitable you need to be excited. stuart: that's why we are now only up 70 after being down 767. >> what was the word, the word he used, the new phrase, right, oh, we're in the right neighborhood, just about the right neighborhood. like with rates. it's about right. but you know, they should either stop talking or really, when they are concerned, really express it in a way that we can appreciate, because this i don't think does anything to help the market or investors. stuart: i want to know about bitcoin. i never talked to you about bitcoin. i can see gold has a rush to safety.

treasury securities, i got that. but bitcoin? you think that's a flight to safety kind of product? >> i went home last night, i got a couple gold bricks, right. stuart: you got kilo bars? >> no, they are a little smaller, about this size. they're heavy, though. they're huge. i looked at them and said what happened to you yesterday? bitcoin rocked. what did you do? i'm looking at them, all you ever do is sit here and gather dust. stuart: is it an alternative, bitcoin? >> i'm intrigued, i have always been intrigued. i don't trust the formula that says only a limited amount will ever be mined. i'm concerned about that. but tell you what, it was amazing, if you are a bitcoin lover, yesterday was the best day in a long time. for it to be considered an alternative in a currency war was phenomenal. stuart: would you touch it with a ten foot pole? would you buy it? >> put it this way. my ten foot pole from a year ago is now a one foot pole. i'm not there but i'm getting closer. stuart: last one. where are you putting your money right now? best pick? >> i don't really have a best pick, per se. i'm looking at mastercard real

hard. here's the beautiful thing with these kind of selloffs, at the end of earnings season. we know the companies that beat, we know the companies that are taking market share. we know the companies that have pricing power and we know the companies that gave great guidance. it's so easy to put together a list so when the dust really does settle, you have something to buy. mastercard right now is at the top of my list. stuart: how is that book going? >> amazing. we sold out the first printing in less than three weeks thanks in part to your interview and others. stuart: hardly. give me the title? >> unstoppable prosperity. stuart: you can't fail. >> we sold them all out, can you believe it, in less than three weeks. they're back. we got them now. go get them, folks. stuart: unstoppable prosperity. i like it. charles, we will see you at 2:00 in the afternoon weekdays. >> i will take on the fed today. stuart: are you? >> the fed's op-ed. i think they're deflecting. they have too much power and should be held to account. stuart: go get them. the book cover, there it is. we've got it up.

that will be $10. check apple. trying to reclaim the trillion dollar market value. the stock has to get to $221.27. if it gets there, it's a $1 trillion company again. right now it's $195. microsoft. they released their biggest windows update ever. the stock is up 1.5%, nearly two bucks at $134. north korea launching two short-range ballistic missiles overnight. that's the fourth weapons test in less than two weeks. does that play into the china trade dispute? we ask the question and we will get an answer. trump derangement syndrome running hot. i know it knows no bounds. following the shootings in el paso and dayton, that's all you hear. hate trump. i say it needs to stop. the trump 2020 campaign will join us next on that, as the third hour of "varney" gets rolling along. ♪ do you have concerns about mild memory loss related to aging?

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you only have an attack like this when you have a president who gives people permission to act on this hatred and this racism and this intolerance. >> it is shocking to me that he is so utterly self-aware and this is why from my perspective, he is not welcome here. he should not come here while we are in mourning. >> that would not be a welcome visit given the environment that he's created over the past three, four years. he would not be welcome in my hometown. stuart: you heard them. some democrats adamant about the president not visiting the sites of the deadly shootings. president trump is set to visit el paso and dayton tomorrow. trump 2020 advisory board member jenna ellis is with us now. what are you saying to the

president in advance of that visit? how do you tell him to handle this? >> yeah, i think that he handled the press conference yesterday extremely well and i think it should be pointed out that there is such a distinct contrast between how the democrats immediately went negative, politicized this, targeted president trump and he just came out with no partisan interest and was so empathetic. if he can hold that, i think that would speak to america very well. stuart: but is he going to address the other side of the fence, so to speak? not the border fence, the other side of the political aisle, because you know full well that as soon as he gets there, the media will look for demonstrators and focus entirely on the demonstrators and interview them. how do you counter that? >> yeah, i think that's where we also as consumers of the media have to be very responsible because president trump is doing his job as the president of the united states. of course he should go to el paso. of course he should go to dayton so for anyone saying he shouldn't just because they hate

on trump, that is not recognizing that he is the duly elected president of the united states. stuart: but they're saying he's responsible for this. they blame him for this. >> they do. and that just doesn't match up with facts. if you look at how much this president has had diversity within his office between race, gender, he has had more women in high level positions in cabinet than any previous president. so the facts just don't line up, yet the mainstream media and the democrats refuse to look at that. they refuse to look at facts even in their own platforms and their own campaigning. we saw that in the debates just how completely veering off of reality they actually are. so we cannot necessarily confront that except with facts and by speaking truth and also by conservatives not meeting fire with fire in some instances, because let's remember, this isn't just about taking down the other side. this is about protecting and preserving the america that grants all of us individual liberties and we have to show that contrast with facts and logic.

stuart: to be conciliatory in some ways to the other side. conciliatory? >> i think from my practice in trial law, you have to admit when your side has done things wrong. you also have to admit the facts. the facts of this situation is that this is terrible. no one ever wants mass shootings. but that doesn't mean that the democrats are therefore right that president trump is responsible. stuart: i think trump derangement syndrome is out of control. if you can use the expression it's reached new highs. that's the way i think about it. what are you going to do about that? how do you counter that? >> yeah. you know, it's just remarkable and absolutely crazy how much the fever pitch just continues to rise and how much the democrats have looked at this whole trump derangement syndrome and people are buying into it. i think the only way to combat that is for every single person to be responsible consumers of the media, not just believe what they hear about president trump, but actually go and search out for themselves the truth because if we were actually truth finders, not just trying to take

political partisan interests, if we were seeking the truth of the matter, then that would actually dispel a lot of the myth. stuart: we have the "new york times," "washington post," labeling the president as a racist right flat out, stating it as a fact, not a subjective opinion, but a fact. hard to get beyond that. >> it really is. just because i speak out on behalf of the president, i'm on his advisory board, i have even gotten called a racist. there was a hash tag that i had to report on twitter. this is just crazy. a fellow colleague of mine was threatened with his life. this is where we're at in america that just because the opposition party wins according to democrats, then they can come after and target people who are speaking genuine policy and have a different opinion than theirs. that is wrong. we need to have the courage to stand up and continue speaking truth. stuart: well said. tough call, though, isn't it? >> it is. stuart: jenna, thank you very much for being with us. i just want to show you the big board, please. let me go to that first.

go to the big board. look at that. ashley: we almost lost whatever we gained. stuart: lost it. lost it. we were down 767 yesterday. we bounced back 150 this morning. now it's virtually gone. back to a small gain. two points. that's it. so the selling appears to be continuing. as some of our market guests have suggested this morning, the selling ain't over. all right. check cvs. they are offering a new subscription program. it's $5 a month. it gets you free shipping on prescription drugs and other online orders. looks like a direct response to amazon. the stock down in a generally down market. amazon, jeff bezos cashing out a little. he sold $2.8 billion worth of amazon shares in the last week alone. not sure why he's done that. but the stock has come down from $2,000 a share to $1765. that's in the space of about three weeks. check this out.

ford unveils the most powerful street-legal mustang, 0 to 60, 3.5 seconds. we will tell you how much it costs and when it goes on sale. tesla trying to boost sales by offering something free to customers. we will tell you what the freebie is after this. ♪

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stuart: well, well, well. take a look at this. the most powerful street-legal mustang ever is the shelby gt500. listen to this. 760 horsepower, a supercharged v-8 engine, 0 to 60 in about 3.5 seconds. how much? i will tell you. $73,995 plus $2600 as a gas guzzler tax. it goes on sale this fall. i want one. but i'm too old to drive it properly. ford's new mustang flies on the road but here's a car that actually flies in the sky. looks like something out of "back to the future." a japanese company built this thing. it's battery-powered.

it's a flying car, four propellors, hovered off the ground for about a minute in a recent test flight. i'm not so sure it will ever sell that well. in an effort to boost sales of their high end models, tesla is making a big offer to customers. tell me more. deirdre: you get free lifetime free charging. keep in mind there are tens of thousands of electric vehicle charging stations around this country. if you buy a brand new model s which is the fancy sedan line, or the model x which is the mid sized luxury suv, you get lifetime super charging for all. if you sell thor e ecar to me, don't have that benefit. it's for the first-time buyer. worth noting they had offered this years toiago to encourage people who are anxious, where am i going to be able to charge if i go on a road trip. they offered this, then they started to phase it out. they have been playing with their consumers on this for awhile but they say this time it's different. cue the monty python music.

this time it's different if you buy an s or x, you get lifetime charging. stuart: attractive offer. ashley: it is. stuart: if the tesla charging station is convenient. deirdre: there are close to 48,000 in this country. stuart: i don't know whether you can answer this question. how long does it take to recharge? deirdre: that, i do not know because i don't have a tesla. stuart: i have seen one of these tesla charging stations at the side of i-95. how long do i have to stop to recharge? ashley: we will look into that. stuart: our producer says about a half hour to one hour. deirdre: enough for you to have a little snack, little lunch. stuart: i don't like stopping like that. i want to go. deirdre: all right. you're in your helicopter. stuart: no, i'm not. no. ford f-150. more china news. hong kong sending a warning to protesters saying that all criminals, their word, will be held responsible and don't underestimate our security forces. next, we have a china watcher.

i want to know when and how the situation in hong kong ends, and what is the end game here? it's important to the u.s./china trade fiechght. ♪ (groans) hmph... (food grunting menacingly) when the food you love doesn't love you back, stay smooth and fight heartburn fast with tums smoothies. ♪ tum tum-tum tum tums

stuart: we really did lose almost all of the rebound, down 760 yesterday, up 150 at one point this morning, now up just 50 points. not much of a rebound. let's move on. i think this trade fight has president xi jinping of china, i think he's in a corner. i think president trump has the upper hand. i know that's just my opinion. most people seem to disagree with it on the program this morning but let's bring in steve orlins, on the national committee on u.s./china relations. president trump has the upper hand. what do you say? >> last time i looked, president trump has to stand for re-election next november and president xi amended their constitution to eliminate term limits. stuart: that's true. >> the political pressure on him is substantially less. i think, though, he must be disconcerted by kind of the

tariffs, president xi must be disconcerted by the tariffs and by branding china as a currency manipulator because what china has been doing is actually the opposite. china has been supporting its currency and now suddenly, they are being accused of forcing a devaluation. they just must look at this and go huh? what's going on here? it must be very confusing to the chinese leadership. stuart: one of the reasons i say that president xi is in trouble and kind of in a corner is because of hong kong. we've got reports today that gangs are attacking the protesters all over again, and the authorities are saying, warning people hey, watch out, we're coming after you. that sounds like a real crisis in the making, and that i think is a real problem for xi jinping. i think it is connected to china trade. where am i going wrong? >> didn't you live in hong kong once? you lived in hong kong. i lived in hong kong for ten years. ultimately, what's happening now is the protests are beginning to affect the economic viability of hong kong that we have seen data now that retail sales are

dropping, trade is dropping. that is damaging kind of the overwhelming majority of people in china. so you're beginning to see a pushback not only from government, not only from the liaison office of the peoples republic of china. what i hope and expect is going to happen, it's going to peter out. the protesters in many ways have won already. they should declare victory and go home. the extradition bill that was the cause of the protests initially has been withdrawn. carrie lam said it's dead. the protesters should now kind of take that victory, recognize that they now have the ability to influence government policy and allow hong kong to kind of go back to work. what hong kong people care about, it's a tough place to live. 's t it's very expensive, it's difficult to make ends meet. when you have protests like this going on, it's really going to damage the economy and cause multinationals to question do i want to be based in hong kong

which is what you and i remember from those days, it's very dangerous because that is the basis of hong kong's success. stuart: so you don't think president trump has the upper hand. you think the protests in hong kong will ultimately fizzle out so -- >> i think -- i hope that will happen. i expect it will happen. ultimately it's not even clear anymore what the demands of the protesters are. initially, it was stop the extradition bill. well, it stopped. they won. they should actually go home. there certainly is a radical fringe that wants to continue the protests but my guess is knowing the people of hong kong, having lived there for many years as you have, i think we are going to see people begin to push back hard against those protests. stuart: i'm sure you saw this, but china's foreign ministry warned america against putting intermediate land-based missiles anywhere in asia. here's the statement. if the u.s. deploys missiles in this part of the world at the doorstep of china, china will be

forced to take countermeasures. to me this sounds like the beginnings or rather, the early part of a cold war. >> it's symptomatic of the deteriorating relationship both in the strategic side, the economic side and the political side. what we are seeing is unfortunately a deterioration across the board which ultimately is bad for the people of the united states and i think it's ultimately bad for president trump's potential to be re-elected. stuart: but it also is very hard to see the end game here. if you escalate the trade fight, hong kong has escalated to some degree, the missile question, escalation. warships between the mainland and taiwan, it's all escalating. i don't see how you bring it all back down to earth, fix everything, we all live happily ever after. >> that's where leadership on both sides need to exercise leadership. we need a good relationship with president xi and president trump. this is not in the interests of each of our countries.

this is not in the interests of the people of each of our countries. stuart: true, but you don't see this happening any time soon, do you? >> one hopes it will happen. that ultimately, it's not, you know, president trump needs to be re-elected. president xi needs to do what's good for his people. this kind of strategic competition where we each spend hundreds of billions of dollars on defense is not good for rebuilding infrastructure, for education, for doubling down on r & d. stuart: that is not going to change. the two sides are drawn up opposite each other. there's no quick fix here. >> but ultimately, what we are beginning to see is increasing pressure both in the academic community in the china watching community against kind of this narrative that china is a strategic competitor and enemy of the united states. there's a debate that's occurring in the united states now, whether or not this is in our interests. my view, it's not. stuart: you sound like you want america to give in. you want president trump to back

off a little bit, make nice. >> on the tariffs, i certainly want him to end the tariffs. stuart: he's not going to. he's tariff man. >> he will at some point in time determine the political pressure is sufficient that he needs to declare victory and go home. that the agricultural states may be shifting to the democrats because of these tariffs, that energy exporters are not able to export their energy and those states are going to begin to shift. we are going to begin to see a political shift. in terms of the strategic competition, that's actually more dangerous and more difficult to resolve, that basically the presidents have to say the threats to the united states, the threats to china, are common threats and we need to work together to resolve those while we have issues which we differ on. stuart: all right. you are welcome on the program even though you totally disagree with me. >> that's pretty good. i don't totally disagree with you. we have disagreement today. i lived in hong kong once upon a

time. stuart: i bet you lived on the peak. >> i lived on the bay. stuart: you know the hotel there? >> knew it well. lived about 400 yards from there. stuart: they opened the first mcdonald's in hong kong right in repulse bay and on day one they sold more fish fillet sandwiches at that restaurant than any other restaurant, mcdonald's in the world. >> i remember that. accurate data. see, we agree. stuart: there you go. thank you very much, sir. now, on a similar theme, look at tencent. that's a big chinese tech company. they are in talks to buy a stake in universal music. they are going to pay $3 billion for it. that's the record label which has contracts with drake, queen and the beatles, by the way. it's owned by a french conglomerate. dow component disney reports its numbers and profits after the bell. look for investors to look in particular at the streaming

service that disney is coming up with sometime in the fall. that's what i'm interested in. ashley: that's what it's all about. deirdre: it's priced to get us all in. so what is it, $6.99? ashley: $6.99. stuart: i would pay that. deirdre: why not. stuart: how many people can you get on their, you know, the account number? ashley: you would know. stuart: i jumped on somebody else's -- i'm not supposed to do that. ashley: you didn't do that. stuart: no, i didn't. certainly not. my daughter did not use her password to get me on to netflix. i wouldn't do that. we are digressing a lot here. oh, a promo. stay with fox business for full coverage "after the bell" 4:00 eastern. ashley will be there. ashley: can't wait. stuart: i want the know how many people can be on one account.

ashley: multiple people on one account. deirdre: your grandkids -- stuart: i thought this was going to be serious but it's not. facebook has removed the page for an area 51 event. now, that's where they were going to storm, right? ashley: yes. it's the much talked-about, highly classified area about 150 miles from las vegas. was there alien technology, whatever. it was a tongue in cheek post saying let's raid this area, find out once and for all what's going on there. of course they were told don't even think about it. facebook since has taken down the page saying it went against facebook's community standards. ironically, the gentleman involved who started all this, matthew roberts, then decided to hold an event on the same day but just as a festival. nowhere near area 51, just to kind of bring it all around. they took that page down. stuart: by the way, the moon landing, you know it was a hoax.

ashley: well -- what? stuart: i'm joking. please, please, please. ashley: it happened on my eighth birthday. to this day i'm a little scarred. everyone was watching television. stuart: you ever get the feeling we're losing control of the show? now this. chaos at the democratic socialists convention. these are hardcore leftists, believe me. the use of the word gendered or again gendered language. you've got to hear it. third time on the show. it's worth it. a new study reveals where rich people are putting their money. stocks, cash, gold, bitcoin? find out next. ♪

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stuart: so what are rich people doing with their money right now? deirdre will tell us. deirdre: they are selling stocks. they are not as invested in hedge funds and they are investing more in real estate. they are also keeping a little more cash on the sides than usual, and going a little bit into commodities. stuart: who says this? deirdre: this is actually a legitimate group of people. most people who are self-made or they have been running their own businesses, it's called tiger 21, an investment club. the net worth of the group, there's about 750 members. they have a collective $75 billi billion. they are pretty serious. they meet once a month, sometimes more frequently, but they are very serious. they help each other look after their money. i think for a lot of self-made people, entrepreneurs, they feel like their best interests are best served by themselves. it's quite a vibrant group. they put out research every quarter. they are -- stuart: they're legit.

i'm so used to x number of people can't scrape together $200. deirdre: no, no. stuart: leave me alone, please. this is serious stuff. deirdre: this is what's happening, the head of tiger 21 founded it after he sold his first company and he felt a lot of financial advisers were trying to rip him off and decided he could do it better. stuart: they are selling stocks and getting into real estate and keeping cash. let's check the price of gold. that is a traditional safe haven. it's up another $8, $1484 on gold. at least a six-year high. bitcoin, that spiked yesterday when wall street, the stock market was selling off. right now it's at $11,700 per coin. i want to bring in ron paul, former texas congressman, friend of the show. sir, i always think of gold as the go-to safe haven. would you accept bitcoin as the new gold? >> i doubt that. i think that it should be made

available and what i work on is making sure that it is legal but i think its history is short-term so you don't know. gold has a longer history like 4,000, 5,000, 6,000 years people have depended on it to maintain wealth. it is difficult. the biggest problem people have in maintaining their wealth is not whether you have gold or stocks or bonds or whatever. it's whether or not you have your freedom. because just think of in the depression, people thought gold might be a good thing to hold so the government took it away from them and made it illegal. [ speaking simultaneously ] stuart: you don't think we're free? i came to america and reveled in the freedom i found here. you don't think we're free? >> well, compared to others, yes, we're doing pretty well. but i don't consider us a constitutional system of government that was designed many years ago. i don't consider it a libertarian system. there still is respect for property but there is way too much government intervention.

maybe most of our prosperity is dependent on debt. here we are living in a system where you can endlessly print money, take interest rates below zero, then borrow money at trillion dollars a year. somebody has to pay. when you are very much in debt you are really not free. you should be free from debt. that's when individuals feel better when they don't owe a lot of money. stuart: i'm going to read a tweet the president put out about the fed which of course, you are very interested in. i'm sure you have seen this but i will read it for the viewers. china dropped the price of their currency to an almost historic low. it's called currency manipulation. are you listening, federal reserve. this is a major violation which will greatly weaken china over time. you have no time for the federal reserve at all. does the president have a point? >> very weak one, because yes, the chinese are manipulators but what about qe? didn't we manipulate our currency? don't we manipulate when we

badger the federal reserve to lower the interest rate no matter what they really think? then they come along and lower it a quarter of a point and everybody gets hysterical and the markets crash because it wasn't a whole half a point? yes, we manipulate just like everybody but it's different because we as the reserve currency, we are the biggest manipulator because we get to print as much as we want at will, and license our congress to run up deficits of a trillion dollars a year. there's tremendous manipulation. you have to compare somebody that's running a reserve currency to somebody that does not have a reserve currency. i would say there's way too much interference and right now, when you're demanding that interest rates go lower, which is what our administration is doing, you are manipulating the currency. you are saying loan that money out very cheap. i would question this whole thing so i would say china probably is a manipulator, they probably artificially kept their yuan too high for a long time. now they are sort of making up

for lost time. stuart: ron paul, you just made far too much sense but you are welcome on the show. we do appreciate that. thank you, sir. always appreciate it. see you soon. >> thank you. stuart: question. what happens when you put a lot of young hardcore socialists in a room together? answer, doesn't end well. you will see it after this. ♪ hey! i'm bill slowsky jr.,

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stuart: they call themselves the democratic i believe socialists of america, and they held their national convention in georgia this weekend. check it out. it came to a halt after there was a sensory overload and use of gendered pronouns. you've got to watch. >> first of all, james jackson, sacramento, he him, i just want to say can we please keep the chatter to a minimum? i'm one of the people who's very very prone to sensory overload. there's a lot of whispering and chatter going on. it's making it very difficult for me to focus. >> thank you, comrade. okay. is there a speaker -- >> point of personal privilege. >> yes.

>> please do not use gendered language to address everyone. stuart: that's right, comrade. comrade, what were you thinking? david nichols, president of nicholas wealth management. this is not your turf but i can't resist asking you, what do you think? >> i will tell you, this is comedy gold. "saturday night live" couldn't dream this stuff up if they tried. how did we get here as a society? there's two reasons for it. when you look at modern liberalism which, when you take it to its full conclusion, is socialism, it really attempts to liberate man to live however he wants, to whatever means he craves. it attempts to remove absolutes from society, essentially remove god from the public sphere. when we do that, it's government now that becomes all-powerful, government provides us our job, our security, our health care. it's the collective now that in essence becomes god. so what we're seeing here is when we remove absolutes, we start to question simple concepts like what is right appear wrong, what is gender,

what does it mean to be a man or woman. the second reason is when you look at our generation, okay, we have only known prosperity. we know nothing else. we didn't live through the great depression. we didn't live through two world wars. we didn't storm normandy with bullets flying past our heads. we didn't see the rise and fall of capitalism and socialism. we only know life with our smartphones and electric cars and chi tea latt hes. we don't have a prosperity issue in our country. we have an entitlement issue. an ungratefulness issue. when you have ocasio-cortez and bernie sanders leading the equity didd ithe democratic par unfortunately ideas like this are spreading like the plague. stuart: i'm glad we brought you on the show to comment on that. that was a very erudite response and we like that. but david, you are on the show to tell us what you bought or what you would buy given the big selloff that we have seen recently on wall street. i think the big stuff you like

is ford motor company. tell us, please. >> it's funny, our interns came into my office yesterday and they were concerned, they were worried. i said guys, this is a great time to buy. if you were buying two weeks ago, you better have been buying yesterday. some of the companies i like, a company like ford. a company that whether or not what happens with the trade issues with china, they are in the business of building ford trucks. they focus on that as their main product. not exactly the product market for china. i think ford is a buy. if you are looking for a company, it provides a 6% dividend right now, has lower exposure to china. it's a great buy. also, small cap stocks that don't have as much exposure to the trade issue i think is where we are going to see value going forward. stuart: tell you what, it's the 6% dividend i really like because i assume that that is very safe and 6% is 6%. i think that's pretty good. david, thanks for joining us. great comments on the democratic socialist convention. come again soon. there will be more "varney" after this.

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stuart: now the retailers, most of them took a big hilt yesterday. some of them are rebounding a little today. but we've got another iconic retailer who is in serious trouble and deirdre will tell us. >> high-end retailer, barney's, very much a new york institution, filing for bankruptcy. they're trying to keep the boston, san francisco and beverly hills locations. they will close new york, chicago and seattle. they owe $10 million in rent. there is other ways to get these goods. ashley: it's a trend more and more flagship stores shutting down on fifth avenue.

calvin klein, lord & taylor. high rent is a big reason and changing consumer behavior online. stuart: if you don't live in new york city, some of our viewers come to the city for vacation or whatever, you walk up and down fifth avenue, which used to be the premier -- >> it's a little bit sad now. stuart: a lot are closed up, isn't it? >> a lot of white-washed windows. stuart: i have a number here on barney's, one of the reasons why they're in deep trouble. their rent from 16 million a year to 27 million a year. up the rent just like that. which means there is an 11 million-dollar difference. you have to make an extra one million dollars a month in profit. >> see how much the greedy landlord are getting now? nothing. that is the problem. you can't rent people out of business. stuart: rents have to adjust to this new lower level. >> there is a lot of stubborn landlords, they don't want -- i remember in 2009, 2018, 2009, there were some people here who just refused, if they were in an

iconic property to lower the rent. they would rather a third of the building be empty. stuart: financial story of the day is the rebound or otherwise from yesterday's big selloff from wall street. modest rebound at the moment. we're up 100. neil, it is yours, stuart, thank you very much. for now a gain is a gain, of the sectors, they're not all participating robustly, but they are up. we have most of the dow stocks looks like about 20 of them on the upside. but again the trade concerns are continuing to weigh on these markets. farmers might be bemoaning their situation, because they're not getting any break. guaranties on the part of the chinese, they're not planning to buy any goods from them anytime soon. meanwhile recession signs are peeking amid the investor yield you hear about, gap between shorter and longer-term rates, pronounced as