panel. your final thoughts? >> just get ready for a tumultuous august and september. >> on china trade war, the president is right to dig in here. to me it's larger than trade, larger than the economy. it's about national security. the chinese are not -- they are going to continue to steal our intellectual property. at least we can change the calculus. maria: good point. we will leave it there. great day. "varney & company" begins right now. stuart, take it away. stuart: good morning, maria. good morning, everyone. this is extraordinary. the world is jumping into a whole new era of free money, printing money with abandon, cutting interest rates below zero. as you tune in, we are in the middle of it all. start with this. the tumbling yield on the treasury's ten-year bond. last night it was around 1.70%. now it's all the way down to 1.63%. that is a monumental move, rarely seen before. it shows money is pouring into america because this is the only place which actually pays interest.

in europe and japan, government bonds pay no interest at all. in fact, when you buy a government bond there, you don't even get all your money back. never in human history has the lender paid the borrower. rates are tumbling. this amounts to a worldwide race to the bottom in interest rates. where it leads, i don't know. but it's now very likely that our federal reserve will drop rates aggressively from here on out, simply to keep pace with everyone else. if they don't, the u.s. dollar will keep going up, keep disrupting our trade and our economy. i thought that with all this free money flooding into the world, that a lot of it would go into the stock market, our stock market. that is not the case, at least not right now. the dow will open with a big drop, over 250 points to the downside and there will be losses on the s&p and nasdaq as well. other markets are convulsed by it all. look at gold. there's a rush to the safety, what they think of as the safety of gold. it's back above $1500 an ounce,

up 25 bucks an ounce as we speak. and look at oil. $52 a barrel. even though iran is threatening the mother of all wars, if we don't remove sanctions. $52.31. what a day. follow your money here. it's going to be a big, wild day. "varney & company" is about to begin. stuart: president trump's getting in on the action, tweeting this on rates moments ago. three more central banks cut rates. our problem is not china. we are stronger than ever. money is pouring into the u.s. while china is losing companies by the thousands to other countries, and their currency is under siege. our problem is a federal reserve that is too proud to admit their mistake of acting too fast and tightening too much, and that i was right. they must cut rates bigger and faster and stop their ridiculous

quantitative tightening now. yield curve is at too wide a margin and no inflation. incompetence is a terrible thing to watch, especially when things can be taken care of so easily. we will win anyway but it would be much easier if the fed understood, which they don't, that we are competing against other countries all of whom want to do well at our expense. there you have it. futures, look at it now, down some more. down 270, down 81 on the nasdaq. we've got to check that ten-year treasury again for you because it moves all the time. right now we are at 1.63%. keith fitz, come on in. it looks to me like it's a race to the bottom. what are the implications of that? >> well, the implications are that they are playing with occam's razor. i think the president is correct, the fed has screwed up. to their favor, this is good and

they are trying to get ahead of it but where it goes, i don't know. i think we could see 1%. stuart: do you have a sense that we are in a financial crisis? >> not yet but i think the fed doing this strongly tips the scales in that thing. the problem we've got in this country is we are predicated on spending. when the rest of the world is predicated on savings. it's been a tough road to hoe for many, many years. it is not going to be an overnight fix and certainly doing this is not going to aid that. stuart: hold on a second. liz peek with us this morning. you heard what president trump tweeted, very critical of the federal reserve. what do you make of this? >> i think he was right. last year, seven rate hikes really did not do us any good and in fact, caused the economy and the stock market to get into a bit of trouble at the end of last year. i think they are behind the curve and the curve is being set by overseas forces. i think that's what the fed missed last year. they missed the slowdown globally. i think it's what they've missed

this year, too. this race to the bottom in terms of interest rates is extraordinary. there are $12 trillion of debt instruments out there yielding negative returns. not since 2016, the brexit vote which threw markets into tumult have we seen anything like this. i think there's a lost t of uncertainty. i think china is part of it. the federal reserve can't correct it overnight but they have to keep in step. stuart: any idea why this is happening, why this race to the bottom of interest rates? is there some kind of fear it's a global recession and it's trying to do something about it? >> it is clearly that. we have seen a slowdown in important european economies, germany most particularly, china obviously is slowing. but basically, central banks around the world have signaled for months that they were going to be easing and they are doing it i think a little more aggressively than anyone anticipated because the data looks pretty weak. i think as far as the stock market, the reason investors are saying oh, my gosh, sell stocks, is because they don't know what this means. they're sitting there just like

we are saying whoa, why is this happening. stuart: what are the implications. >> absolutely. stuart: one point i would raise with you, keith, you have this free money all over the place because some economies are slowing dramatically but it doesn't work. so far, free money has not worked. >> well, this is a lesson we learned the hard way in japan in the '90s and early 2000s. you can't give money away if people don't want it in the first place, no matter what the rate. stuart: okay. keith, stay there, please. i have a couple more questions later. i've got to, you know, while we in the top of the show, give viewers the sense of importance of the financial moves we're seeing and politics. moments from now, president trump leaves the white house to visit the scenes of the deadly weekend shootings. he will maybe speak to reporters before he departs. if he does, you will see it. back to liz peek because i want to talk to you about politics. the president going to el paso, dayton first, then el paso, walking into a mine field.

>> he clearly is because he's being blamed in essence for the el paso shootings. the new narrative on the left is that president trump is a racist, he's encouraged racism and he's responsible for any anti-immigrant, anti-people of color activity that takes place in this country. it is so unfair. his stance against illegal immigration is exactly what barack obama talked about several years ago, bill clinton, chuck schumer, everyone up until today literally or at least the last six months has opposed our open borders. now because the president has stood firm about not wanting tens of thousands of people to cross our border illegally, now he's a racist. this narrative is very dangerous. people are trying to scare americans and people who are in the country legally and illegally into thinking that their lives are in danger. the "new york times," i want to just call this out, ran a piece likening white nationalists in the country, of which there are

some, not enormous number, to the rise of isis. this was literally a story they ran two days ago. it is so offensive to me to even pretend that there's any likeness between those two things. look, this all started with charlottesville. the left has created what i consider to be a false narrative about our president but by the way, should he go to el paso, of course he should go. he's the president of the country. stuart: he's the comforter in chief. absolutely. i've got to deal with the main corporate news story of the day which is disney. earnings came out yesterday. i'm not so sure i really care about their profit and loss. i care about what they said about their new streaming service in the future. keith, come back in again. what did disney say about streaming? >> here's the thing. disney said we are willing to take a short-term hit because we think the potential is so extreme going forward. this is a classic case of we are going to invest now, future growth is out there with regard to hulu plus, disney plus.

i think they are on the right track but i do think it's dicey given the overall tenor of the market. stuart: down seven bucks in the early going. would you buy it? >> on a short leash, yes, i would. because i buy off on the narrative. i think earnings double if my back of the envelope calculations are right within the next three years. stuart: keith, thanks very much. some individual stocks we are following for you. big story is interest rates on the overall market. but look at cvs. nice forecast, rosy forecast. the stock is up 5%. office depot, yeah, they lost money but here comes the expectations again. not as much as expected. premarket, office depot is up 19 cents. papa john's, pizza people, have returned to making money. not sure that's a correct quote but i believe papa john's will open a little bit higher. unchanged right now. back to the futures. important story. we are down 280 points as we speak. that's on the dow.

83 points on the nasdaq. looks like 1% plus. losses all across the board. the ten-year treasury yield all over the place today, mostly down -- ashley: 1.625%. it changes constantly. stuart: got it. whoa. what a story. next case, the democrats can't let it go. house judiciary chair nadler says impeachment proceedings could begin in october and he's going after e-mails from justice brett kavanaugh that date back more than a decade. president trump going after the drug companies to lower prices. next, we have the ceo of a vast, huge drug company, astra-zeneca. they make well-known drugs. are they worried about the president's plans? what are they going to do about plunging interest rates in europe? we will ask him. we are waiting for president trump's departure. he's expected to talk to reporters. you will hear what he's got to

say if he speaks. "varney & company" just getting started.

stuart: look at this. now we're down over 300 points for the dow, down nearly 100 for the nasdaq. this is why. the yield on the ten-year treasury is absolutely tumbling. in fact, bond yields are tumbling worldwide. 1.62% on the ten-year, u.s. ten-year, as of now. haven't been this low for a long, long time. it reminds me of 2007-2008. frankly, it does. breaking this morning. fed ex ending its ground delivery deal with amazon. tell me more. susan: this just crossed about half an hour ago. fed ex says they will end their ground delivery contract with amazon and won't renew it at the end of this month. they also ended their express contract which covered air shipping back in june. what they are doing is shifting away from amazon. other players like walmart,

target and the rest are trying to get to one-day shipping, two-day shipping, so fed ex says if amazon is developing its own delivery service, we will move on and try to service the other players. both down 1%. stuart: you have a whopping big decline overall anyway. let's look at astra-zeneca. major drug maker. they make popular drugs like crestor, nexium and a whole lot more. the stock is down just a fraction this morning. pascal soriot, the ceo, is with us now. sir, i have to start with this. you are a european country. what are you going to do about these plunging interest rates, negative yields all across europe and japan? how does that fit into your business plan? >> actually, you know, we are used to adjusting to those changes. the currencies against the u.s. dollar have declined across the entire world.

we are a u.s. dollar denominated company so of course it's impacting us. we would rather not be impacted this way. stuart: does this really trouble you? because i don't think we have ever seen anything quite like this before. are you troubled about this? >> no. i mean, we are basically adjusting. again, you know, i would hope that this would be resolved but we are adjusting, we are a company used to those changes. we are global so we are very global in nature. we have ups and downs. stuart: i have to ask you about china. your sales there, up 44% in the second quarter. you sold more than $1 billion worth in china in 13 weeks. do you think china will continue to be a big strong market for you in the future? >> certainly. china, as we all know, has a tremendous population and very big needs. the country has changed, the

country is opening up, the government is clearly wanting china to engage on a global basis, and locally there has been fast-tracking innovations, new products and reducing prices just like all the countries around the world are doing. we are very much driving our growth for our new products and believe we can continue growing in china over the next few months and years. stuart: what about the president's plan to lower drug prices? will you be affected? >> we may be. actually, nobody knows what the outcome of the discussions will be. you know, we were disappointed to see reform has been put on hold for the time being. it's a pity because it would enable us to reduce our list prices very very substantially. the package that is going through senate, some aspects are good, some other aspects are not presentable, we believe, but there are good things and the system has to change. we are very supportive of the discussions that are ongoing

today in the senate. stuart: we want to thank you very much for being on the program this morning. just so happens that you are surrounded by something of a financial crisis so we cut it rather short. but i do hope you can come see us again. pascal soriot, ceo of astra-zeneca. >> thank you for having me. stuart: sure thing. big day. look at futures. we're down very sharply, 290 down for the dow, 90 down for the nasdaq. what's the yield on the ten-year? ashley: just clicked to 1.63%. the german bond minus .6%. stuart: goodness me. that's the lowest yield ever on a government bond, by a long way, actually. okay. 1.62 on the verge of 1.63. chaos in times square. a large crowd mistakes a backfiring motorcycle for a possible shooting. what a story. we've got it for you. chaos. while we are waiting for president trump to leave for

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stuart: financial news dominates today. look at this. we will be down 250 points,

maybe more, maybe less, i don't know, four or five minutes from now when the market opens. we are going down and down significantly. why? because of this. look at it. the yield on the ten-year treasury is now at 1.62%. i have to stress this. when we all walked in or when we walked out last night at the end of the show, the yield on that ten-year treasury was about 1.7%. now it's all the way down to 1.62. doesn't sound like much but if you know anything about the world of money, that is a monumental decline in the rate on the ten-year treasury and in europe, they are in negative territory. you lend them money, they don't give you any interest at all. in fact, they keep part of what you have lent them. this is a unique situation and it's a unique financial situation that we are in right now. let me change the subject completely just for a moment. show you what happened in new york last night. panic in times square. a motorcycle backfired, and look at the crowd. they are all over the place.

ashley: it happened around 10:00 on seventh avenue, 46th, in the middle of times square. backfire, this gives you an idea of the psyche of the country at the moment. multiple calls to 911, terrified people screaming shooter and running for their lives. several pedestrians were injured, bruises, lacerations, nothing life-threatening. it took about 20 minutes before the nypd announced that times square was safe. by the way, at a mall in utah last night, a sign fell, a loud bang in the mall, everybody scattered, frightened, running into stores and hiding. this is the psyche of the country right now. stuart: that's how jumpy we all are. ashley: legitimately so. stuart: of course. of course we are. here's something. we have got a number on this. i'm surprised to hear it. the united states, the u.s., collecting billions, billions in tariffs over the past 12 months from china. how much? susan: $63 billion in the year through to june.

think about this. in may you got 5.3 billion, 4.8 billion in april, and that's important because that's when tariffs actually went up to 25% from 10% on $200 billion worth of chinese goods so we are on pace right now, it looks like we will bring in about $72 billion at the end of this year. we could get to $100 billion if those tariffs of 10% on $300 billion worth of chinese goods goes into effect on september 1st. stuart: that money was paid by american importers of those products. that's correct? susan: that's right. u.s. companies and u.s. importers pay these tariffs. they decide how much of that price hike goes to the consumers when they hike prices on their goods. stuart: i just wasn't expecting a number as big as $63 billion. susan: this is what trump said. every tariff they take in in dollars they can reserve to give to farmers in aid. stuart: interesting. he wants to back up the farmers. got it. we are showing you on the screen various markets which i think are in turmoil this morning. we showed you gold just a moment

ago. it's characterized as the key flight to safety. look at it. $1,510 an ounce, up 25 bucks. 1.7%. president trump was tweeting about these financial developments earlier this morning and he was hard on the federal reserve. i'm going to isolate just one part of one of his tweets. look at this. talking about the fed, he says they must cut rates bigger and faster, and stop their ridiculous quantitative tightening right now. with rates tumbling all round the world, i don't think the federal reserve has much choice. if you've got negative rates in europe, central banks in new zealand, india, thailand, all cutting rates, the federal reserve has no choice. ashley: i think you have to. this continues the way it's going, they will have to act before six weeks' time. they have to. stuart: if you leave rates, the federal reserve rates, where they are -- ashley: 2%, 2.25%.

susan: what sentiment does that send to the markets? doesn't that send panic signs basically, saying we are in some big trouble, we are acting beforehand? i don't think that's a great message to be sending to an already i would say jittery market. stuart: i take your point. but if they don't lower rates, if they leave them where they are for another six weeks, and the rest of the world is cutting like crazy, and they are, what happens to our dollar? goes through the roof. susan: can you imagine if the treasury yield on the ten-year goes to work for them in some ways as well. stuart: i hate to get technical but that means you have a very inverted yield curve, because the fed keeps short-term rates up here and the market puts long-term rates down here, which results in recession fears. look, my opinion is they have got to keep pace with the rest of the world. now, i thought, i really did think this, when you've got

tumbling interest rates, that's good for the stock market. when you are printing all of this free money, the stock market, our stock market, would go up. ashley: to keith's point, doesn't mean people will take the money and do something with it to boost the economy. because there's so much uncertainty over the trade war and you know, recession around the world, and in the united states. stuart: truth is, this free money is not flowing into our stock market. it's flowing into our treasury bond market. as the money flows in, the price of bonds goes up and the yield comes down. we just showed you a moment ago, 1.62% on the ten-year treasury. that is extraordinary. susan: money around the world is just flooding into any u.s. assets. that's the only place you can get yield right now, as you see stock markets are near record highs, so this is a globalized one-directional move for monetary -- i guess monetary investment. that's what you're seeing, because we are looking at recessions and a slowdown elsewhere around the world, you can't get money on japanese or

german and even 12 other european nation bonds, where else are you going to go? stuart: i'm going to go back to the example which i try to use. supposing you are a money manager in berlin with $1 billion. you put that billion dollars into a german bund, bond, as it's called, and you will only get $994 million back. no interest. and they take part of your money. if you put that billion into an american treasury bond, they pay you interest to the tune of 16.2 million and you get all your money back as well. where would you put your money? you put it in the treasury. ashley: the president talking to reporters before he heads off to ohio this morning, then on to texas. he says look, the market reaction to the trade war with china was anticipated. he says it could have been worse. said china has been taking us to the cleaners for 25 years and we have to do something. stuart: so he is blaming wall street and saying -- ashley: yep. stuart: he said the trade war is not -- tell me again.

ashley: he said the market reaction was anticipated and that it could have been worse. stuart: i don't think anybody was anticipating such a sharp decline in treasury yields. i think that's what's upset the market this morning. here we go. it's 9:30. it is wednesday morning. we are off, we're running and i think we're running due south. here we go. first few trades, down. 320 points. 321. we are at 25,697. a sea of red among the dow 30. in fact, all of them are down. one has not opened yet but all of them are down. that's a loss of 1.25%. how about the s&p? that's down, too. it is down 1%. not quite such a huge loss. the nasdaq composite, where's that this morning? obviously down, just over 1%. the really big decline is the dow industrials. where is that ten-year treasury yield now? 1.62%, is it?

there you have it. i'm interested in the price of gold, flight to safety. ashley: oh, yeah. stuart: way up this morning. $25 higher. look at that. now oil. here's a real surprise. iran is talking about the mother of all wars if we, america, don't end sanctions. look at it. oil is at $52 a barrel and falling sharply. ashley: if it finishes below $53.04 today, at this rate it appears so, oil, wti will be in a bear market from its april high. down 20%. stuart: oil-related stocks, oil drillers, way down. $51. look at that. just hit $51. ashley: global recession concerns. stuart: global recession concerns. look at that, down $3.366. bottom right-hand corner of the screen. jack hough, shah gilani, susan li, ashley webster.

interest rates dropping around the world. shah, what are the implications of this extraordinary downside move? >> i think you hit it earlier. the implications are that the dollar is going to continue to gain strength. that's a problem for u.s. companies, multinational companies whose earnings come from overseas. already in this quarter, about half of the companies who reported have created some mystery in terms of the future because of lack of transparency. some of them are setting up currency hedging programs, they never had them before. international markets in terms of currencies have been volatile. the dollar is continuing to be strong. as long as our interest rates remain higher than everybody else's, we will continue to see a strengthening dollar. that's a problem for earnings. we are starting to see that in the stock market. stuart: i don't want anybody to panic but it looks to me, jack hough, i think i can use the word financial crisis when i see numbers like this on the screen. we are down 400 points. >> a weak ago on your fine network, i told people 2% on

bonds might not excite you but it might be the best deal you see for some time. earlier this week, i said 1.75%. we are below that now. a low point on that ten-year is 1.37% from 2008. at the rate we're going, we could hit that by year end. we could breach that by labor day. bonds are getting crazy around the world. $15 trillion as you said around the world with negative yield rates. stuart: so upsetting the stock market. we are down 400 points as interest rates tumble. susan: the reason futures took a turn and dive was because of german industrial production, way worse than expected, based on declines of 1.5%. you were expecting upside of half a percent. that brings a contraction of 5% for the german economy which we know is the largest, biggest driver in the european union. so you are seeing this globalized slowdown taking place. stuart: that's at the heart of this, isn't it. this race to the bottom for interest rates is about a global slowdown. whether it does any good to print all this money and keep rates down is another story

entirely. jack? >> you mentioned the word crisis. this is not banks collapsing. this is a shortage of economic growth around the world and we have fake economies in every developed nation on earth right now. we all have ultra-low interest rates that are nowhere near normal. we all have blowout fiscal spending with big deficits and even with these fake economies, they are struggling to grow right now so people are seeing things that are truly new right here. i think that's why you are seeing investors getting really uncomfortable. stuart: the president has spoken with reporters as he was leaving the white house to go on his trip first to dayton, then to el paso. we will take the president at what he has to say, but we will keep you informed with what's going on with the financial markets at the same time. right now we are down 415 points on the dow. we are down to 1.62% is the yield on the ten-year treasury. i'm going to go to that -- also, i've got to tell you gold, straight up this morning, straight up, $25 higher.

now, here is the president. >> we are going to dayton first, then we're going to el paso. we will be meeting with first responders, law enforcement, some of the victims and paying my respects and regards. i will be going with the first lady and it's a terrific opportunity really to congratulate some of the police and law enforcement, the job they've done was incredible. really incredible. reporter: [ inaudible ] what do you say to your critics who believe that your rhetoric is emboldening white nationalists and inspiring this anger? >> my critic ars are political people. they are trying to make points. in many cases they are running for president, they are very low

in the polls. a couple of them, it's ridiculous, very low in the polls. if you look at dayton, that was the person that supported i guess you would say bernie sanders, i understood, antifa, i understood, elizabeth warren, i understood, had nothing to do with president trump. so these are people that are looking for political gain. i don't think they're getting it. and as much as possible, i've tried to stay out of that. reporter: [ inaudible ]. >> well, i do agree but i think we have toned it down. we have been hitting -- we have been getting hit left and right from everybody. many of the people, i don't know. a couple of people from texas, political people from texas that aren't doing very well. i guess somebody said the mayor, i had one very nice conversation with the mayor of dayton. could not have been nicer.

then she goes and says i tried to -- well, i spoke to her and didn't receive any calls. they're trying to make political points. i don't think it worked because i would like to stay out of the political fray. as i was saying and just came out, the dayton situation, he was a fan of antifa. he was a fan of bernie sanders and elizabeth warren. nothing to do with trump. but nobody ever mentions that. reporter: [ inaudible ]. >> say it? reporter: [ inaudible ]. >> no, i don't blame elizabeth warren and i don't blame bernie sanders in the case of ohio, and i don't blame anybody. i blame -- these are sick people. these are people that are really mentally ill, mentally disturbed. it's a mental problem. and we're going to be meeting, we're going to be meeting with the members of congress. i have already got meetings

scheduled and i have had plenty of talks over the last two days, and i think something's going to come up -- we are going to come up with something that's going to be really very good, beyond anything that's been done so far. reporter: [ inaudible ]. >> we're going to see where we are. we're dealing with leadership right now. you know, you have two sides that are very different on this issue. let's say all good people but two sides that are very different. if we get close, i will bring them back but it has to be, you know, we have to see where we are. normally, this has been really a decision, congress gets together, they try to do something. but if you look over the last 30 years, not a lot has been done. reporter: what would you support? >> i'm looking to do background checks. i think background checks are an important -- i don't want to put

guns into the hands of mentally unstable people or people with rage or hate, sick people. i'm all in favor of it. reporter: [ inaudible ]. >> well, i can tell you there is no political appetite for that at this moment. you can do your own polling and there's no political appetite for it from the standpoint of legislature but i will certainly bring that up. i will bring that up as one of the points. there's a great appetite and i mean a very strong appetite for background checks and i think we can bring up background checks like we've never had before. i think both republican and democrat are getting close to a bill, to doing something on background checks. reporter: [ inaudible ].

>> south korea and i have made a deal, they have agreed to pay a lot more money toward the united states, as you know. we've got 32,000 soldiers on south korean soil and we have been helping them for about 82 years, and we get nothing, we get virtually nothing. and south korea and i have made a deal where they're paying a lot more money, or they're going to pay a lot more money. the relationship is a very good one, but i felt all along, i felt for years it was a very unfair one. so they have agreed to pay a lot more and they will agree to pay a lot more than that, and we're with them. we're with them. reporter: [ inaudible ]. >> so you have to have a political appetite within congress and so far, i have not

seen that. i mean, i can only do what i can do. i think there's a great appetite to do something with regard to making sure mentally unstable, seriously ill people aren't carrying guns. i have never seen the appetite as strong as it is now. i have not seen it with regard to certain types of weapons. reporter: [ inaudible ]. >> i am concerned about the rise of any group of hate. i don't like it. any group of hate, whether it's white supremacy, whether it's any other kind of supremacy, whether it's antifa, whether it's any group of hate, i am very concerned about it and i'll do something about it. reporter: [ inaudible ]. >> no, i don't think my rhetoric has at all. i think my rhetoric is very --

it brings people together. our country is doing incredibly well. china is not doing well. if you look at the trade situation, china just admitted yesterday that they have been a currency manipulator. first time they have ever been called out. companies are moving out of china by the thousands and our country is doing very well. we are going to see how it all works out. somebody had to do this with china because they were taking hundreds of billions of dollars a year out of the united states. somebody had to make a stand. so i think our country's doing really well. reporter: [ inaudible ]. >> i think the markets -- i think the market reaction is anticipated. i would have anticipated. i would have maybe anticipated even more but ultimately, it's going to go much higher than it ever would have gone because china was like an anchor on us. china was killing us with unfair trade deals. the people that allowed that to

happen are a disgrace. china, what they were doing to us, for years and years, bilking hundreds of billions of dollars out, stealing intellectual property, targeting our farmers, all of that's ending and they understand that. reporter: [ inaudible ]. >> that's right. i'll be convincing some people to do things that they don't want to do and that means people in congress but you got a lot of people on one side and you have a lot of people on the other, but i have a lot of influence with a lot of people and i want to convince them to do the right thing, and i will tell you, we've made a lot of headway in the last three days. a lot of headway. reporter: [ inaudible ]. reporter: you and the shooter have used the same language. do you regret that? >> i think illegal immigration, you are talking about illegal immigration, right? yes? i think illegal immigration is a

terrible thing for this country. i think you have to come in legally. ideally, you have to come in through merit. we need people coming in because we have many companies coming into our country, they are pouring in, and i think illegal immigration is a very bad thing for our country. i think open borders are a very bad thing for our country and we are stopping. we are building a wall right now. we won the lawsuit in the supreme court two weeks ago. the wall is well under construction. it's being built at a rapid pace. we need that. we need strong immigration laws. but we won't allow millions of people to come in because we need them. we have companies coming in from japan, all over europe, all over asia. they are opening up companies here. they need people to work. we have a very low unemployment rate. so i believe we have to have legal immigration, not illegal immigration. reporter: are you watching the

stock market reaction? >> i am. i think the market reaction is to be expected. i might have expected even more. at some point, as i just said, we have to take on china. they have been taking -- look, they have been taking us to the cleaners for 25 years. this should have been done long before me as the president. you know the story better than anybody. you know it better than i do, frankly. hundreds of billions of dollars a year taken out of our country, stealing intellectual property. and you know what? we right now, we are sitting on top. we have money pouring in, we have powerful companies, strong companies, china is losing so many, they are losing thousands and thousands of companies are leaving china now because of the tariffs and we are in a very good position, as to whether or not a deal will be made, i will tell you this. china would like to make a deal very badly.

reporter: [ inaudible ]. >> well, you know, joe is a pretty incompetent guy. i have watched his interviews. i watched what he said and how he said it, and i wouldn't have rated it very high in the first place but joe biden has truly lost his fastball. that i can tell you. thank you. stuart: that is all the president had to say in his brief meeting there with reporters. i will summarize it very quickly. no political appetite in terms of legislation to ban assault weapons. that's what the president just said. he also said somebody had to take on china, our country is doing very well. he also said the market, stock market, could go much higher if china is no longer an anchor. what have you got? ashley: ten-year yield just dropped to 1.598. stuart: okay. let's bring this all together. the yield on the ten-year treasury has just dropped to 1.59%. what an extraordinary tumble in yields we are seeing. that means an enormous amount of

money is flowing into treasury bonds. look at global interest rates. japan, negative. france, negative. germany, negative. netherlands, switzerland, negative. japan is the same story. that means you lend money to the government over there, they don't give it all back to you, and you get no interest at all. what a situation. as interest rates plunge, so does the stock market. now we are down 574 points. i need help. jack hough is still with us, shah gilani, ashley and susan, of course. you know, all right, your comment, jack, go for it. we are in a hell of a situation here. >> i might need to revise what i said about the possibility of reaching a new all-time yield by labor day. it could happen sooner than that. looking at all these negative bond yields, saying that's happening in europe, that's not going to spread here. yields here are already below the rate of inflation. people who are signing up for ten years at that yield, they

are already saying i'm going to lose buying power over this next ten years and i know it and i'm willing to do that. stuart: would somebody please tell me why yields are tumbling like this all over the world? what's the basic reason for this? shah, can you tell me? >> the basic reason, stuart, is the anticipation of further cuts by central banks around the world. the problem we are seeing in terms of the lower and lower rates is for the most part on the surface, it's a trader's game. this isn't the public buying treasuries. this isn't the public buying trillions of dollars worth of negative yielding. these are banks, leveraged funds, buying these negative yielding instruments. why are they buying negative yielding instruments? they are buying them for capital appreciation. they know that central banks are going to continue to lower rates, which increases the capital appreciation they get. they are making money as yields go down, as prices go up on their bond holdings. that's why they're buying them. this is a trade, a massive trade

in anticipation of central banks continuing to cut. stuart: that's fascinating. what have you got? susan: we have insight from one of the largest bond funds in the world, pimco. they say the global slowdown in manufacturing, we are looking at a manufacturing recession around the world, but even here in the u.s., some would say, also trump's latest tariff threat on china, the risks of the fed falling behind the yield curve and that's adding downward pressure on global bond yields right now, and some great insight. they say central banks are not the villains behind the negative rates but victims or secular drivers behind these negative rates which are demographics and technology with a global aging population and more automation coming in. stuart: they are looking for lower yields. susan: they are definitely looking for lower yields. stuart: look at that. 1.59%. we went on the air 49 minutes ago at 9:00 eastern time. that point, the yield on the ten-year treasury was 1.63%. you might think it's not much of a move but when you go from 1.63

to 1.59, that is absolutely gigantic. as yields fall, money flowing into treasury bonds, it's also flowing into gold. look at that. we are up $31 an ounce. i think that's at least a six-year high. $1,515 per ounce. ashley: look at the oil, down two bucks. $51.54. that's down nearly 4%. stuart: why is oil down so much? >> because the pressure of an economic slowdown is greater than the threat of a geopolitical war. it's much more about the economy. by the way, these lower rates, i will just ask you, who out there is feeling stimulated right now? because that's the purpose of bringing down these rates, to stimulate the economy. there is no one who is on the fence about buying a house yesterday who will watch this and say i'm going to get out there and buy right now. this is stimulating no one. this is about central banks using currencies because government can't pay their bills around the world. stuart: mortgage rates, though, are going to tumble.

>> yes. stuart: 1.59 on the ten-year, you've got to be 3.5%. susan: at least. stuart: maybe lower than that. very, very soon. the refinancing activity is going to get up big-time. financials getting hit very hard. goldman, morgan, morgan stanley, et cetera, et cetera. home builders hit hard. this is a universal across the board selloff. the dow is down 540 points as we speak. big tech, don't forget big tech, please. way down today. losses of 1% and more for all of them. shah gilani, $64,000 question, is there anything you are buying now? >> not today. but i am going to be looking hard and fast in the next couple of days, perhaps next week. i have a feeling this selloff will continue for a few more days, maybe into next week. i think at that time, when it settles out, there will be tremendous bargains. lot of stocks that i think disney being one of them, i really like. i like the fact disney is taking

a little hit here. i missed out on the rise of disney. i would like to get back in a little lower. i think these are opportunities presenting themselves. there is going to be a lot of stocks on sale. i think again, when this settles out and it will in due course, there will be some tremendous opportunities to get back in here. global growth is not as bad as everyone thinks, certainly not as bad as interest rates are anticipating it to be, not as bad as the trade in bonds is indicating. that's a trade for the most part, these are institutions forcing rates down, forcing central banks' hands and it's a beautiful trade. they have done it before. don't forget, stuart, we were at about -- over 2% on the ten-year not that long ago. this is almost an unprecedented move down. what did we have? we had the economy went from 3.1% gdp in the first quarter to 2.1% and still above trend. that doesn't warrant this kind of move in the bonds. this is a trade, it's a global trade, and i think it's going to settle itself out in the next few days, maybe week. stuart: he thinks it settles itself down in the next few days. >> i just say if you are trying to pick the bottom of the stock

market, of course, no one can do that reliably but if you are looking for a safe haven for the next ten years and you've got 1.5% to lock your money at and the other choice is blue chip american companies, where you can turn your money over to smart people and say you figure it out, turn my stash into a bigger stash over the next ten years, i will take that trade any time for the long term. stuart: yes. so you think that -- ashley: i'm 100% with jack on that. stuart: both of you are saying at these much lower prices for big name blue chip american stocks, that could be a source of safety. >> stocks look reasonable. bonds look straight up crazy. susan: that's true. ashley: 100% agree. susan: the s&p at a two-month low. there is a silver lining here because hedge fund strategy has now reversed. they have closed off some of their shorts because they remade some of the money caps and the money with the selloffs we've seen and the declines we've seen over the past week. they are raising cash to sit on the sideline and might be going in to bargain hunt, especially with these big name blue chips, as you mentioned as well. there might be more money

rotating in at these lower levels. stuart: i'm astonished. look on your screen, global interest rates. japan, switzerland, germany, netherlands, switzerland and japan, we should add. there's probably a couple of other central banks around the world which are offering negative yields. never seen anything like it before. the world turned upside down. susan: it has. stuart: mark grant, he says the world has never seen anything like this before. he's been following this very very closely. ashley: yeah. susan: he's right. stuart: where does it end? ashley: yeah. stuart: how do you deal with china? >> you have to start getting creative now. i'm calling it 50 shades of stimulus. you really have to use your creativity. what are they going to do next? if you are getting hit for 1%, when you are putting money in the bank, what's next? they give you a kick in the seat of the pants when you put money in the bank? susan: the world changes as well. as i mentioned, demographics plays a role into this, aging economies as well that are stagnant like europe, for one.

japan. technology innovation, productivity, less employment. that changes the dynamics and maybe these lower bond yields, negative bond yields, something we haven't seen before but it's a reaction. >> the rate is so low around the world, right, the structural conditions for economic growth are just not great in the developed world. are we sitting here applying shock paddles to a patient who is just not going to get up? ashley: that died last week. stuart: i feel like i'm the patient here. all right. we are down 507 points as we speak. back to 25,500. ashley: ten year back to 1.61%. >> i take it all back. stuart: now we are down only 500 points. i'm making a joke of it, but this is serious stuff. this is financial turmoil writ very, very large. now, we have concentrated on stocks, way down. interest rates, way down. gold, way up.

i've got to also tell you that oil, way, way down. even though iran is threatening the mother of all wars, the price of oil is $51 a barrel. it's down two bucks. that's an enormous selloff. i want to bring in someone who knows a lot about oil. he's a heavy investor in oil companies. zane tankel. we know this guy is the owner and operator of, what is it, applebee's. i know you as a huge oil -- >> i'm a director. stuart: i know. you follow it closely. you tell me why oil is at $51 a barrel this morning. why? >> well, if i had the answer to that, i guess i wouldn't be on your show. i would be doing something else right now. stuart: i want an answer. >> i will give you an answer. so oil is a very fungible commodity. brexit, slowdown in china, the anticipating recession here, because it is a fungible, the future is the buyers of oil are very worried about where the

needs and the demands for oil are. inventories are rising because we are not using them, and as inventories rise, obviously the prices come down. technology permits us, for example, to produce more oil today with about 930 rigs up and running than we did with almost 2,000 rigs about three years ago, four years ago. that's due to fracking. so technology, slowdown in the world economy, all the things you just pointed about the market, about oil responds to that. stuart: tell me about the oil drillers. the oil exploration companies. because they are heavily in debt. that's the nature of that business. they are facing a sharp decline in the price of their product. >> you are absolutely correct. stuart: i see bankruptcies. >> we did, not too long ago when it went from 110 to 37, 38. i think we could be seeing that scenario all over again. absolutely, it's a very very treacherous time to be in stuart: i'm fascinated overnight

iran talking about mother of all wars, presumably with america, if we don't end sanctions against iran. the price is tumbling two dollars a barrel. >> because there is so much of it. we have more resources here in the united states than anywhere in the world. the saudis control the gulf and basically their cartel on the pricing. so the reality is, that while we have more oil than anybody we are still a victim to the world's economy and the world's marketplaces. oil is supply and demand. stuart: just fascinating isn't it. >> sure is. stuart: a few weeks ago, a few months ago, who would have thought you would be back to $51 a barrel? >> i wouldn't be in the business if i thought that two weeks ago. i would have jumped out absolutely. we could be in this trough for another year or two years. this trough can last a while. this doesn't bounce like the stock market where it can hit

a v. curve. once they lay down rigs, what you do, get them back up and running again is a long process. not you lay down the rig when there is no demand, you crank it up when the demand challenges. stuart: there is no inflation. you're more likely looking at deflation rather than inflation. >> stuart, you know that is certainly a major concern right now. until we know about brexit. until this trade war is the big one, slowing down china left and right. they are big users of oil. until we know, oil doesn't like uncertainty, just as the stock market doesn't like uncertainty. stuart: i'm used to talking to you about applebee's. i'm glad we're talking about oil. >> we use oil in french fries. stuart: thank you very much. >> thank you. stuart: thank you to shah ghailani, jack hough, managing us through, it is fascinating, dynamic, extraordinary

development in world finance. i needed you guys to help me through it. i appreciate all that help. here we go, five seconds to go, and it will be 10:00 on the east coast. three seconds. we have atomic clocks here. it is 10:00. east coast. this is 7:00 in california. this is huge day for your money. let's go straight at it. look at the big board down 474 points. we were down 550 a few minutes ago. it's a whopping great decline. the s&p is down 1 1/2%, huge decline. the nasdaq composite also down 1.25%, nearly 100 points down. we have to check the 10-year treasury yield. all over the place. we're at 1.61. a few minutes ago we were at 1.59. what an extraordinary development. ashley, you and i have been in this business a long time. ashley: we have.

stuart: susan a little less. have you seen anything like this susan? susan: no. in 2018, things were looking scary, somebody bought gold at $1800 an ounce when ben bernanke was printing all the money, i'm not exactly shaking. we're 1000 points plus off record highs on the dow. i would keep things in perspective. lower global bond yields is concerning. talk of quantitative easing once again from the federal reserve is sounding kind of scary. stuart: that is money printing. susan: that is correct. stuart: there is talk of the federal reserve doing that again. ashley: we have sinking interest rates around the world, negative territory many cases. stocks are sinking with those rates. stuart: we need professional help. ashley: yes. stuart: i'm just a pure amateur here. steven orf, federated investors. he is the chief investment officer. he joins us right now. good timing young man, good

timing indeed. i think we're the same vintage. have you seen anything like this before? >> this kind of a selloff or the bond market? stuart: bond market. >> we are low levels of yields, they could go lower still. stuart: they could go lower still? >> why not. u.s. yields are way above the rest of the world. that is what is driving us down. stuart: our yields down. why is it not driving the stock market up? >> it will, stuart, it will, stuart. a buying opportunity is emerging. stuart: brave guy right there. >> look the underlying u.s. economy is pretty good. my biggest worry is actually china. trump is winning the war with china. the concern is, they are fighting it hard and they're prepared for a lot of pain, but boy, the chinese economy is one of the drivers of global growth. europe is really feeling it.

they're very dependent on china. we're much less so. that is what is happening. if china gets worse and worse, that will pull down global growth. we're the last engine of growth here. we're still doing okay. my view the markets had way overdue correction. sharp run up off the december lows. we come through a soft patch. we have global monetary stimulus. probably fiscal stimulus behind that. i'm trying to play chess. everyone else is playing checkers here. i get it. if you look two or three moves down on the board, the economy will probably relist. at some point china will have to cave. stuart: you're calming us all down here. >> yeah. stuart: you're saying at some point, i don't know about rebound but the market will to back up again? >> yeah. at fed -- federated we're looking where to head back. in december we were saying, i don't care what powell is saying he is going to reverse course

very quickly. he will not do three tykes until he causes recession. he did. this time around powell already reversed course. i don't think we'll get that. i was hoping we would get a quick deal. china killed that back in may. now we're in slow motion. i call it the slow boat to china. that will take a while to work out. so i don't really see a catalyst near term, other than price. stuart: okay. >> so maybe, around 2700 or something -- the yield on this market now is way ahead of bonds, right? the earnings yield on the s&p is over 5%. stuart: that's true. >> this is safer than a lot of governments paying money to take their money from us. stuart: blue chip american stocks which pay a dividend, where you have a possibility of capital gain, that is the safe haven? >> right. i think you start easing in. we have not yet done it. keep modest overweight in

equities. that is how we would be positioned here. if we get more attractive buying opportunity, which i think we will in the next few weeks. or simply time is the other way to get there. i think by the fourth quarter we get through this messy period. this is a long overdue correction, stuart. stuart: i know. >> like everyone is scrambling around in a panic over this. stuart: i can't get over this tumble in treasury bond yields. i'm in my 70s. i've been around a while. >> i wouldn't guess you were in your 70s. stuart: you're supposed to say that i've been around a while. i can't remember i saw the treasury of the 10-year treasury go from 1.70 to 1.60 in matter of hours. >> if you've been a japan investor over long period of time, you have seen negative yields, low yields for very long time. when the demographics are such

the country is literally waiting for itself to die? stuart: you think it is demographics? >> they don't want to take the risk. they will pay for security. growing economies you will not see negative yields. germany growing up on japan. the demographics are not good. stuart: there are negative yields in germany, france, switzerland. >> switzerland is negative. i think it is demographics. it is a big piece of it. stuart: demographics, age structure of your population. >> right. stuart: i understand japan is the emotional extreme demographics of any society in recorded human history. very few babies, loads and loads of older people. you think that is driving -- >> big driver. people been through traumatic experience like big drop in equities. everyone knows equities will go down 40%. everyone knows that. everyone is running for cover when they're down five. we know it is not going down

40%. we've been through a big secular bear market. we're in a a secular bull marke. you buy. stuart: no panic from this guy. thank you, stephen. >> be patient. it will take a few weeks. it will not end today. stuart: take a few weeks, we'll be okay? >> i think. stuart: steve, thank you very much indeed. we appreciate it. thank you very much. president trump is now enroute to dayton, ohio, then he goes to el paso, texas. charles hurt is with us. charles, he is walking into a mind field, he wants to be and is trying to be the comforter-in-chief, being told you're not welcome here. it's a mind field, right? >> it's a mind field. i don't think it's a mind field of his making. it is a mind field made business his political opponents who are clearly trying to use these

horrible tragedies to score political points. they, first they start off by believing or at least in public, political settings, claiming that everything that they don't agree with is somehow related to hate speech. then they start blaming president trump for these horrific events. most sane people look at this, they shake their heads, and they're disgusted to see politicians behaving like this. i think donald trump goes down there. he will comfort people. he talks to people. he speaks plainly for how much he has no patience for hate of any kind. he is committed to figure out ways to prevent this kind of violence happening in the future. most people in america, either agree or stand up and applaud him. stuart: okay. there may have been a shift in public opinion following the killings over the weekend.

i perceive a shift in the narrative at least. and the president this morning said, there is no political appetite in terms of legislation to ban assault weapons. what do you say to that, charles? >> i think, that after everyone of these events, anything like this, the initial reaction of everybody, what queen we -- can we do to help, how could weily have prevented this? at the end of the day something has to be done to prevent crazy, hateful lunatics, from getting into positions where they can hurt people like this. the question is, what is that? is it a red flag law? the problem is if you're going to start taking guns away from people, that you know, what kind of due process is going to be set up in place to make sure that that is done constitutionally and fairly? going around collecting guns from people, that is a very, very difficult thing to figure

out, and i think a lot of people looking at the federal government, look at all levels of government. they don't have much faith, right now anyway, these people could probably do something like that fairly. so the idea of disarming people, at a time when people are feeling insecure and feeling like, you know, i wish i had been standing there with a gun i would stop the guy after the first shot, that is the thing, that these gun control advocates are running up against. stuart: i think the president will get a very hard time from the media when he arrives, especially in el paso. >> do you think, stu? stuart: i think media go straight to the demonstrators, straight to the hispanic community, straight to the not welcome signs, that will be all over the media, later on today. that is the way it is, charles, if i'm not mistaken. >> look what happened with "the new york times" yesterday. they wrote a perfectly plain, accurate, headline and they got

destroyed by these crazy leftists. they buckled and they changed the headline in order to placate the angry masses. stuart: we covered it all, charles. thank you very much, indeed. got another big story. we got to cover it. that is your money, charles. >> good stuff. stuart: stay tuned for that. look at that. we're down 375 points. the market come back just a little. down 1 1/2%. big selloff, it was not as bad as 10 or 15 minutes ago. the price of gold up $31 an ounce at 1515. that is a flight to safety. we wetter check bitcoin. there has been talk that too is a flight to safety. i think you can make that case today. $12,000 per coin. jack hough still with us. jack, the point's been made on the program this morning by others that maybe blue chip american stocks are a safe

haven. >> yeah. stuart: maybe at these lower prices, that's the place to go, what say you? >> stocks are a steal relative to bonds. stocks represent companies with people who use brain power to figure out how to make you money. bonds, give you a fixed rate of return. in the u.s. stock market, s&p 500 index fund, that there is nothing wrong with that. that is fine direction to go. this divide where handful of stocks run up the market, got expensive, it left a lot of blue chip companies. it is good time for stock investor. i'm looking around for things to write about in "barron's." i suspect a lot of stock buyers are doing that. you mentioned bitcoin by the way. stuart: yeah. >> people are buying it, thinking safety, think it goes up, to me that is a desperation trade. people talk about that as a currency. this is doing the opposite what a currency is supposed to do, stay stable, keep your money at even value.

to me this is just people who feel like they have run out of better ideas, but there are better ideas out there. stuart: you may have brought the market back a little bit. thanks, jack. let's concentrate on interest rates. the yield on the 10-year treasury now at 1.65%. as we said at the start, it was 1.61. sorry about that. we've been all over the place. ashley: actually, 1.62. bounced back from 1.59. stuart: lower 1.60s. we came it was 1.70. now it is 1.61. i need help, lots of it. art laffer, former reagan economist. art, what is going on? what is going on? the world is awash in free money. where is this ride taking us? >> let me say what the problems are. the problems are the rest of the world is not doing well economically. that's a fact. and that's something really weighing very heavily on the

u.s. as well. number two, the trade negotiations with china are not going as well as any of us would hope they would but the president assures us he will get a deal, that china wants one, i still believe he is correct on that, but that is weighing very heavily on the markets. number three, there is no inflation, stuart. there is no inflation anywhere in anything. that keeps interest rates really, really low. i think that's not a problem. the problem i see, the indicator i see that is a problem, that tells me that the world is worried about recessions everywhere in the world except the u.s., and it is worried about china is that gold prices are way too high. gold is the last refuge of the cautious and it is first refuel of the cautious. when he fear the world, gold is up and up 250 point in the last year. that is a heck of a big increase. that is a huge risk premium people are putting on markets. that concerns me they're not

feeling good about the economy, feeling good about the country or the world. stuart: is all this going to work? in europe they have negative interest rates. they are printing money unbelievably. same story in japan. they both got depressed economies but it is not working, isn't it? money printing stimulus, it is not working. >> never has. it doesn't work. you can't spend yourself into prosperity, stuart, it is silly. you can't tax yourself into wealth. it doesn't make any sense. europe is crazy. they're worried about income inequality. they will get equality at zero. they will not like that result whatsoever. the u.s. is the one beacon of hope. the only worry i have, is the elections in 2020, you know if we get one of these guys like warren or bernie sanders, stuff like that in there, that would be very seriously damaging to the u.s. economy. other than that i think the u.s. is a beacon of hope. i think we're doing a great job. i think the u.s., if it

continues will lead us, the world out of desperation and into prosperity. stuart: you say, we might lead the rest of the world but supposing the rest of the world drags us down? after all if japan -- >> they already have. they are have. if the rest of the world were booming we would be much higher markets, much higher prosperity than we are. we would have 4%, 5% growth rates, stuart, if the rest of the world were doing well. you know that is the problem here. the rest of the world is following old line tax-and-spend policies that don't work, regulatory policies. i think the first sign of revolution in the rest of the world is brexit. i hope it works. i hope they get out of there. i hope other countries follow suit. but until that happens the u.s. has to be the leader. and it starts with a good deal with china. we get a good deal with china, that market will rebound like you can't believe, stuart. we'll get, 5, 6,000 on the dow on that. that is what will happen. if trump's correct, i have no reason to not believe him, china

wants this deal as much as we do. it is better for them. stuart: i will leave it at that, art. what a day for you to be here. >> i don't know what to say, very stressful time, strenuous, take a brown paper bag, put it over your mouth, breathe calmly. once you get mellow, sort of like the old sketches in "lord of the rings," whatever it was, be calm, cool, collected. stuart: what are you trying to do to me, art laffer. you're a great-grandfather, i'm a grandfather. telling me to mellow out. >> i just had my fourth great grandchild. how is that for neat? fourth. isn't that cool? stuart: that is a bright spot in a day of financial decline. love it. art laffer. see you soon. >> thank you, ashley. ashley: by, art. stuart: check markets again. we have come back a bit. we were down 550. now we're down 320. the nasdaq was down nearly 100.

are now we're down 41. just check big tech for a second. interesting. susan: there you go. stuart: half an hour ago, way down, all of them. apple is down 65 cents. google is back up three bucks. amazon still down. facebook is a few cent higher. microsoft at 133. all right. what have you got, susan? susan: tell you about the crowded trades as i mentioned to you. a lot of money rotated into a select number of stocks. that include the big tech you saw on your screens there. so when they fall, they take the market along with it. but when they come back they will also take the market back as well. stuart: fair point. we're talking really today, the major move is in interest rates which have come, way, way down. yield on 10-year treasury is now 1.62%. joining us on the phone, global bond strategist, mark grant. is this man? is this mark grant, the man himself?

>> this is me, stuart. i'm here. i'm here. stuart: i'm sorry you're on the phone. i wish we could get you in the studio. >> me too. stuart: i've been reading your stuff forever and ever. and you were the guy right out front with sounding the alarm on these negative yields in europe. now i do read your stuff, mark, and you've been saying you don't know where this is going but you do think all this free money will end up in the american stock market and drive stock prices higher and real estate prices higher here. are you sticking with that, mark? >> yes. stuart, i think that eventually over time, because the, we're now at minus 15.1 trillion or negative 15.1 trillion in bonds in japan, switzerland and european union, the european union, i totally agree with art, is in huge trouble and instead of taxing and doing the normal things, what they have done is go to their central bank, raid the cookie jar, create money out

of nothing, buy sovereign debt, buy corporate debt, and they're creating a giant havoc in the bond markets. you're going to see money into the equity markets i think, over a period of time, there is no yield in europe anymore in anything. stuart: where are we going long term? if everybody is just printing free money all over the world, maybe even america does the same thing, where does that end up? >> there are two stages to that, stuart, in my opinion. the first stage is, drives equities up. it drives real estate up. it drives hard assets up. stage two, when interest rates are so low, as we head towards zero, that they don't have any effect on either the equity markets or the bond markets, real estate markets we start into reversal, it doesn't move

the needle anymore. so i think it's a two-step process. stuart: i read your stuff, you say never in the course of human history have we seen the lender pay the borrower to take the money. every ever in human history. is that, that good whichever way you want it. >> several thousand years we have never seen anything like this before. there were differentials in interest rates but we have never seen negative yields like this. we're at 15.1 trillion as i said. if you, account for inflation, there is over $30 trillion in negative yielding debt right now and it is a free cash flow. in other words, if the united states manufactures and so forth in the united states, if they do business in, have revenues, the cash flow is approximately 8%, this money created by the central banks is a free cash flow. so it is really like 12 times

the effect of money in the gdp or money at ibm or amazon or somewhere. so europe is in so much trouble in my opinion, they can't raise taxes without getting thrown out or see the dissolution of the european union. so they have picked this one thing which they learned during the 2018 and 2009 financial debacle, which is to have the central banks issue money and then buy bonds. in the case of switzerland, not only bonds, sovereign debt, corporate debt, also equities, etfs. it is getting to be a severe situation i think. arthur was exactly right. stuart: mark grant, we really appreciate you being with us this morning, first time on the show ever, even though you and i conversed on the occasion. >> yes, sir. stuart: thank you very much, mark. >> stuart, great being on with you. you're a pleasure. stuart: thank you, mark.

jack listening to all this, raising your hand? >> i would ask, ashley, remember what normal looks like. people might know. i will define it a 10-year treasury, five to 6%. that is half century average for where rates are. we didn't get back to normal at any point after the great recession. we thought we were about to climb, maybe halfway back towards normal. now we're back down in the basement again. makes me wonder, i'm 46 years old. will i ever see five to 6% on treasury treasury again? susan: no. stuart: seem as long way off. >> how does the story end? we wait for the bubble. we wait for the bust. we need even lower interest rates to do something about it. we wonder if we have you have dry powder. when do we ever see normal yields again? stuart: there is one bright spot. mortgage rates. ashley: it hasn't worked yet. especially millenials not getting into the housing market. stuart: that's true.

mortgage applications last week went up 5.3%. that is encouraging. not bad. not bad. susan: even though existing home sales are in the doldrums past 18 month. how much money rotated into u.s. treasurys the past five days. longer dated treasurys have gained about 6% in five sessions. that is the biggest, five-day session gain since 2011. so eight years that we've seen the type of money furiously go in to buy government bonds. stuart: if i would have bought a u.s. government bond, five or six days ago, i bought the bond, i would now be sitting on a nice capital gain? susan: yeah. stuart: i might not get of much interest but a capital gain. same story with the german bond. i don't get any interest. might keep some of it if i stay there forever, but i have a capital gain big time if i trade it in. ashley: yes. >> on subject of houses, to mark grant's point, if you think

central governments are not going to accept no for an answer, they will get some inflation no matter what, that is one of the better trades, buy a big box, use a lot of leverage and wait. you might say people buying houses for that reason. stuart: what a day. we're down 390 now on the dow, having been down 550 earlier in the day. let's sum it up. two big stories we're following for this hour. president trump on route to dayton, ohio. we'll take you there live when he lands. the market selling off big time. interest rates around the world are falling fast. big day for politics. even bigger day for money. we're covering it all. varney continues after this. imagine traveling hassle-free with your golf clubs.

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stuart: now we got very important numbers coming up in about one minute. ashley: yes. stuart: we'll be talking about how much oil we have got in storage. in other words, how much oil we have used. that's going to make, i think will make a difference to the price of oil, currently at $52 a barrel, depending on the numbers at precisely 10:30. we'll know whether that moves up or whether that moves down. i have to tell you at the moment we're down 360 points on the dow jones industrial average. we've been down all morning. really big selloff, right from the get-go. at one stage the dow was down 580 points. i think that was the low. now we'll get to gasoline and oil in a moment. right now the national average for gas is, oh, stop it, stuart. $2.69s per gallon. we do have gas buddy who told us recently we'll drop 50-cent a gallon from there.

ashley: by thanksgiving. stuart: by thanksgiving. that is not that far away. at 10:30, precisely in 10 seconds, we'll find out how much oil we have in storage, how much we use. i'm interested to see how it moves the price. here we go. literally seconds away from the oil numbers. this will make a difference to the price, maybe to the stock market. tell me when you have the numbers, ash. we got it. ashley: up 2.39 million barrels. we were expecting a drawdown of about the same, 2.8 million barrels. there is more in storage which means using less. stuart: using less. ashley: plays into perhaps the global slowdown. stuart: the price should be down and it is. ashley: it is down 4% again now. down 51 as you can see. stuart: down $51.48 a barrel. ashley: it was 60 bucks in april. that is a 20% drop.

susan: down from the peaks. stuart: zane tankel told us a oil company director, the chance of a v-shaped rebound for oil is slim to noun. he expects the market to be down to this level or lower for some time to come that could be mean bankruptcies for oil drillers, explorers. they rely heavily on debt. if they have the price coming down, you're down 51 now. 4% lower. you can expect real problems. susan: lower oil prices doing drags on oil names. they make up 10% of the weighting in s&p 500, oil drillers down 5%, 4%, 9%. not pretty at all. i'm sure the oil majors are down. they are. exxon, conocophillips, bp, royal dutch, all down, 1, 2, 3%. as susan says that weighs on the

overall average. we'll r we're still down 350 points. 25,000, 664. falling stocks prices and rising gold and bitcoin. now this, president trump visits el paso, texas. he first goes to dayton, ohio and then to el paso. i will bring in texas congressman lance gooden. he will walk into a mind field, there is a lot of talk that the president could lose texas in the 2020 election. ire response to that please? >> first off, how sad we've come to the point that the president of the united states visiting a sight where so many people have lost lives, a tragic, tragic time, how sad that should be a mind field for the president of the united states. we have members of congress, we have presidential candidates, that before the day had ended, they are criticizing and blaming the president of the united

states for mass shooting, similar to those that took place when barack obama was president, democrat presidents have had many mass shootings and tragedies on their watch. it is horrible, a terrible problem. to blame the president of the united states on day one is outrageous. some of cries from presidential candidates and members of congress in el paso are shameful, distasteful. it should give every american pause that is what their congress has come to. stuart: granted it is a political tactic to attack the president. >> absolutely. stuart: attack him on grounds he didn't say anything about guns, when he made his statement about white supremacy. >> can you imagine -- stuart: i have to return, lance, i have got to return to this. >> sure. stuart: there are serious questions whether or not he can keep his hold on texas in 2020. address that. >> i think the president will be fine in texas. republicans had a wakeup call in the last election. i think republicans are more

engaged than they ever have been. they will continue to be more engaged. republicans are taking the election cycle seriously. we rested on our laurels politically over the last decade. things have been so good, we're now realizing it is time to take action, engage voters previously haven't engaged. you will see drastic improvement in taking the election in 2020. stuart: the president is basing his re-election campaign on the prosperity his growth program created for the economy, also for the return on your 401(k), the stock market rally. >> right. stuart: the economy could slow if the trade fight with china keeps going. the stock market comes down offer the highs. i put it to you lance, that the president is vulnerable on the key issue? >> if i had a crystal ball i would suspect we'd be in another place today. but i will tell you the economy is better than it has been in 50

years. i can't predict what will happen in the next year but things seem to be looking up and up for this president. i think one thing democrats and republicans can agree on, is this president has a ten den sy he gets lucky on areas people think he is wrong. this economy was one of them. he didn't win because he was lucky. this president will make things happen in the next cycle. the economy is growing. democrat know that. why they're not talking about it. when a tragedy happens, they don't talk about the things we should be talking about. they start slamming the president of the united states. it is unconscionable. you will see continued distractions, next year, three or four months until we get to the election next year. i think donald trump is fine in texas. i think he will be fine nationwide. stuart: i'm making sure you're ready for the news headlines this evening after the president visits el paso. you know what happens. every demonstrator, every

protester, every voice that hates him will be all over the evening news. are you ready for this. >> yes. can you imagine if he said i'm not going to el paso. they would have been outraged f president says he is going they're outraged. if he says he is not going they're outraged. when do we move forward from the political bomb throwing to actually move the american people forward? what we're seeing out of members of congress on the democratic side in el paso, presidential candidates who can't even talk to the media without talking the f-bomb, they talk about how president trump is not presidential, give me a break. it has to stop. stuart: republican congressman lance gooden, republicans from texas. thanks for being with us on an important day. we appreciate it. i will get back to some corporate news. as you know disney had its financial ruts yesterday. profits fell a little short. they announced more details on their streaming service. it is called disney plus.

i'm intrigued by this. what will they deliver? susan: disney plus is going 12.99 permont. we were looking for pricing this will include hulu, disney, espn. at 12.99. that is on par with netflix which is at 13 to $14. hb o max, apparently their price, rumored price, will start at 16 to $17 a month. this is a bit of an undercutshall we say. when you have big franchises including marvel, "star wars," and the like. some would say this is very interesting, the pricing that they have put in. competitive as well. stuart: i see netflix taking a hit this morning, perhaps on the disney streaming news. >> well -- stuart: netflix at 300, down eight bucks. >> yeah. stuart: set me straight here, disney is going to bundle part of its streaming service.

susan: that's right. stuart: bundling with espn. susan: sues which they own. you can get hulu or disney plus separately. that will be cheaper. stuart: if you unbundle it is cheaper. susan: disney plus on its own costs 6.99. that is incredibly important for disney and bog iger, in his 14 year tenure, he started off this is the most important product launch in his 14 years as ahead of disney. they took a charge for all the advertising for direct to consume service. this is big deal for disney. this is why they bought fox. getting all the content under one roof and marketing it to subscribers in the future. international subscribers, getting hulu into international markets along with disney and the rest. stuart: there was one other point raised in the earnings report by disany.

susan: yeah. stuart: park attendance. i believe park attendance is down just a him because of? susan: hong kong. hong kong impacted protest, impacted some traffic at their theme park. they haven't seen any depressed attendants in shanghai. shanghai cost $5 billion. stuart: in california and florida -- susan: there was a bit of weakness. stuart: people were worried about the long, long lines to get into the "star wars" park. susan: talking about political impact i guess from the protests. impacted their attendance as well, and traffic. this is 5 billion-dollar revenue stream for disney. this is a very important component of their earnings. think about the price charge and price increases as well, higher margins, yes, foot traffic may be down but you're making more money, charging people more. stuart: same old story. susan, good luck, thank you. dow industrials down 311 points. the yield on the 10-year

treasury, 1.6, whatever it is. what have you got, ash? ashley: 1.61. it was up to 1.628. let me check where we're at because we have seen rate come back a little bit as the market comes back a little bit. 1.633. market comes back from 1.59. stuart: what a day. what a day. we'll be back with more on an extraordinary day after this. what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪

stuart: the state of play for your money is this, down 1.25% for the dow industrials. that is a loss now of 320 points. we have been all over the place this morning. at one stage the dow was off 580. the 10-year treasury yield also all over the place this morning. we're at 1.63%. we had been down to 1.59. staying on the markets, our next guest has analyzed president trump's tweets, all of his tweets in the 2018, to see

if there is any correlation with market moves. when he tweets, how does the market move, especially when he uses key words? scott did this research. he is verizon investments chief investment officer. welcome to the program. >> thanks, stuart. stuart: i will isolate these words. first of all when the tweet mentioned the word trade, what was the market response? >> what we did, we took a look at, we pulled all of his tweets last couple years, we analyzed, when the tweet said trade, the u.s. market had fairly positive response to that. chinese market doesn't have a positive response. wasn't much impact on volatility or interest rates. stuart: when a tweet says trade, market slightly higher, chinese market slightly lower. tariffs, when he said that word in a tweet, response to the market? >> a little bit the other way. the u.s. market underperformed a little bit. chinese markets did a little better. not very much impact from the

10-year rate or volatility. stuart: when he mentions the word china? >> china was an interesting one. china had bigger impact on china than it did on the u.s. chinese markets meaningfully underperformed. stuart: overall when the president tweets about trade, tariff, china, there is market response. >> when you combine all three of them, one all three of trade, tariff, china a particular tweet. that was actually a meaningful response. negative across the board for risk assets. stuart: all three words in any one tweet, everything down? >> bad news for the markets. stuart: that is fascinating, any, i know you studied this, this morning the president was tweeting about the federal reserve, really bashed them. >> that's right. stuart: you got to get out there and lower rates. what impact on the market do you think, i know you have not studied it yet, what do you think? >> this is not a new set of tweets from the president. he has very informed opinion.

traders are liking at what other central banks are doing around the world. the interesting thing for the last couple months we had reconvergence of central bank policy globally we have not had since trump was elected president. all central banks converged into a dovish stanes. interesting surprising on dovish side are close geographic call proximity to china. a clue what is going on inside of china. stuart: worldwide you have the sharp decline on the yield on government bonds. >> that's right. stuart: it is all over the world. everybody is doing this, in fact in europe and japan, it is negative. they don't give your money back. have you studied that? you're a market watcher. where is that going? i don't see how that unwinds. >> there is greater theory to it. if you had negative yielding debt over last couple years that is weird thing. stuart: that is a capital gain. >> that is a capital gain. stuart: you don't get interest. they might keep some of your money -- >> but you made money in the

portfolio if you're trading it. really what we think is going on with rates, we think the equity market is having a little bit of a disconnect. interpreting a sharp drop in rates as really large fears in global growth and really large fears for the china trade situation. i think it may just be a situation where traders are getting ahead of what is becoming increasingly accelerating global bank easing cycle. if that is the case, makes sense rates going down, but going down for reasons than the equity market is interpreting. stuart: wouldn't stimulate europe or japan market? >> they have different regulatory structures in place. they're not very flexible. that is their biggest issue. stuart: one of many. scott, thank you for being with us. >> thanks, stuart. stuart: good luck. we have a minus 330 on the dow jones industrial average. president trump i think, i don't know whether he landed in dayton or not yet, but that's where he is going. he is about to land. we'll take you there, when he lands we'll follow the president through this. we're following that stock market. yes we'll follow the bond market

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stuart: i'm not going to say this is necessarily a comeback but sure looks like it, doesn't it? ashley: it is. stuart: at one stage, a few minutes ago, an hour ago maybe

we were down 580 points. ashley: 10-year keeps rising. it is up to 1.64. that is no great shakes. as the 10-year goes up, the market comes back. susan: one reason european markets, with all the concerns finished in positive territory. that is helping sentiment today. stuart: we have 350-point turnaround on dow industrials. now down 230. got it. let's do this, in the wake of mass shootings in el paso and dayton, ohio, 2020 democrats urging new measures on guns. joe biden says, he is going after assault weapons. martha maccallum is with us, host host of "the story." >> good morning. stuart: if he is going after assault weapons, that implies that public opinion shifted after weekend killings. what do you think? >> you know, i think that if public opinion didn't shift when

25, 26 i think, five-year-old children were murdered in sandy hook, it feels to me like that moment, right, that sickening moment across the country where you want to find some solutions to these problems. and my, my sad guess is that the moment could pass again. we need to address underlying issues that are driving these shooters. it is not as simple as political ideologies. i think it is a structural, cultural, issue, that has left us bereft of a lot of community organizations, family, church, whatever it is, allowing some of this to at least fester. also accessibility to these weapons is, to the, when you have an evil person who has the accessibility to it, that that is an issue. you have, a number of republicans who are out calling for red flag laws. stuart: right. >> john thune speaking differently on this issue, lindsey graham. it may be that the political

tide turns, stuart. i think it's a little early to tell. stuart: i agree with you. the president said this morning there is no political appetite in legislative terms, in terms of legislation to ban assault weapons. but then again, that is, what we might call an extreme measure, red flag laws, bring you back a bit to something that is possible. i think that's where we're going actually. >> i'm reminded of, we face a national security threat now from these shooters. when you look at the number of these shootings in this country, compared to other places it is astronomical. i go back to the post-9/11 moment. not that there is parallel between, islamic radical jihad movements and this movement but you have to figure out as a nation, and a security problem, how do you get at it, right? i have been thinking about this a lot. i think one of the ways the red flag law could potentially have some heft, if you created something akin to a terror watch list, right? if someone ends up on the list,

because they have been triggered by, for example, a hit list that they wrote in high school a rape list that they wrote in high school, if there is some sort of way to put the data points together, when this person goes online, this person walks into a gun show, you have a 30-day wait, young man. stuart: i need to ask you about this. a group of protesters, who want gun control, they are gathered outside of mitch mcconnell's home at night, one protester went so far to say mcconnell should be stabbed. outside of his private home, all night long, trying to keep him awake, what do you think of this? >> she said you should stab him in the heart. this is sick. this is very unproductive. i think what a lot of people don't understand about mitch mcconnell, is that he is very pragmatic. he looks at things in terms of whether or not they can pass. he understands the people that, you know, are serving in the senate. every time anything comes in front of him, he says to

himself, can this pass? will the president sign it? he looks at it in very pragmatic way. a lot of people in this moment like to see emotion, like to see sensitivities he may have for this issue, his approach to these things tends to be very much, can it pass? perhaps at this moment he sees it can't. stuart: all part of blaming the president for the shootings. terrible thing. >> in this moment, potentially to come together, you know, it is sickening really to see both sides not be able to put their own political needs aside and their next election, get something done. stuart: martha, thanks very much. i will watch at 7:00, that's a promise. thank you very much. we're following markets down on the dow and lower interest rate yields on the 10-year treasury. we're also following president trump who will arrive in dayton, ohio, very shortly. back in a moment.

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about your money. bottom right-hand corner of your screen, stocks down, interest rate yields down. left-hand side of your screen, the other big story of the day, the president arriving right now, that's his plane, air force one, just arrived in dayton, ohio. he goes on from dayton, he goes to el paso. this is profoundly important trip. he is going as comforter in chief but we know he's going to receive a lot of hostility, both in dayton and in particular, in el paso. let me take you to the markets real fast. the dow is down 290 points. we have come back a lot from where we were earlier this morning. the yield on the ten-year treasury was down to 1.59%. that is traumatic indeed. we are back up again now to about 1.63%. still very, very low. now this. the president is comforter in chief at times like this. 31 killed in dayton and el paso

over the weekend. he's heading there, he's arrived in dayton now. but the left is denying him that role. instead of comforter, he's being blamed for the killings. he's being criticized because his address to the nation didn't mention guns even though he called out hate and white supremacy, called it out directly. the left is determined to exploit this politically. they think they can secure the minority vote in 2020. they have set up this mine field that the president is now walking into. this is how the el paso visit will be played in the media later today. i will guarantee it. the cameras will be on the demonstrators. the sound bites will be from people who don't want the president to be there. they will seek out hispanics who don't want him to be there. and they will go straight to democrat presidential candidates eager to call him names. you can see it coming. racist, bigot, anti-immigrant. they say all of that. what you will see today is another plank in the democrats'

2020 campaign. slime the president, blame him for anything and everything bad. energize the minority vote. not good. if ever there was a time to put aside the blame game so we can really come to grips with this terrible mass shooting crisis, this is it. the third hour of "varney & company" about to begin. stuart: daniel garza is with us, libre initiative president, an hispanic organization, i think i can describe it as that. open-ended question, as the president is about to emerge from air force one in dayton, ohio. here's this question for you. has the president lost whatever support he had within the hispanic community? >> no, i don't believe that. look, i think you're right, this is an opportunity for americans to unite, to come together, to

seek solutions, the kind of attributions being laid at the feet of the president are irresponsible and reckless. we have to get past that. i think we have to get to the solutions themselves, how we are going to address this. the people of dayton which is about an hour and a half from where i'm at now, and the people of el paso, are hurting. they are in anguish. they need to be consoled, too. they need solutions to this. stuart: does the hispanic community want him in el paso? >> look, i'm reminded of a foreign visit that was made by president john f. kennedy on one occasion when he was combing his hair incessantly and an anxious staffer said mr. president, we have to leave the plane. he said son, when i walk out of that plane, it's not john f. kennedy. it's the united states of america. in a very real way, we have one president at one time and that's donald j. trump. like it or not, he is the one who represents us, who has to console, who has to unite, who has to heal people.

that's exactly what's needed. this isn't about politicians. this isn't about party. this is about consoling and standing together with the people of el paso and dayton and gilroy as well, by the way. stuart: the president and first lady just descending the stairs there coming off air force one. this is dayton, ohio. the president has just arrived. he will no doubt greet officials at the bottom of the gangplank there, then proceed to the event where he's going to meet officials and the relatives of victims. that, you will see throughout this hour as the president goes to dayton and then on to el paso. i want to raise a difficult issue here. there was a tweet from democrats joaquin castro, the brother of julian castro, the presidential candidate. that tweet released the names and businesses of san antonio citizens who had donated the maximum amount to president

trump. that tweet outed these people who have contributed to president trump. look, i say that incites violence. i want your input. what do you say? >> it's unwise. whether it was his intention or not, what it does is send a chilling effect to those who are exercising their constitutional right to petition the government, to be involved in the political process without fear of harassment and this does exactly that. it's really unwise of congressman castro. stuart: do you think there will be pushback against julian castro, the presidential candidate, because of what his brother tweeted? >> my sense is that he's feeling the blowback and i don't think he will do it again. i think it sends, i think, also a message to the rest of folks in congress that look, to weaponize i think contributions by people, you know, candidates who they favor, is irresponsible and un-american.

stuart: i'm pretty sure that the english speaking press when they treat this visit tonight will treat it with hostility. i think they will go straight to the protesters and those people who don't want the president in el paso. but what about the spanish-speaking press? what's their reaction to the president in el paso? >> look, mr. varney, you have to know that spanish language media has been center left and they have never been friendly to the president so you kind of know what to expect already, that it will be slanted against the president. you know, they do bring on some guests who will speak i think favorably of the president, but you know, three to one it's going to be slanted against the president. stuart: do hispanic people, spanish speaking people in the united states, do they have conservative values and by that i mean family values? are they centered on the family? are they centered on working for a living, saving, buying a house and climbing the food chain? are they conservative oriented?

>> by all means. look, we believe that family is the keystone to society. yes, we believe in lessening the burden of taxes on all american families, lessening the burden of regulations to increase energy production because a country with energy is a country with a future, that we have jurists who are going to honor original intent, that we are going to give school choice to parents. these are all things latinos embrace, millions of latinos across the country, and they have responded to this administration when they advance those kind of policies. but i would say that i think both sides, i agree with a lot of other folks who are saying do need to temper the rhetoric and get beyond i think any accusations or attributions that are ill-intended for political gain and get to the solution. stuart: as an hispanic american, you are the son of mexican immigrants born and raised in california, you are an hispanic american. how do you feel, on a personal basis now, not a political basis, but on a personal basis, how do you feel in the aftermath

of the el paso shootings where many hispanics were indeed targeted and killed? >> look, it angers you when you hear that the intent of the perpetrator here, of this guy acting out his evil intent, was directed at the latino community. of course it angers you. this speaks to the psychosis of the person and the mental issues that need to be addressed. i think there is racism in america. there are people who are filled with hate and it needs to be addressed, and needs to be discussed but it needs to be discussed responsibly and we need to offer up solutions as well instead of finger pointing and making accusations. i think it's especially despicable when it's done for political gain. stuart: just on a personal basis, have you encountered hostility because you are hispanic? >> oh, look, sure, i mean, because i'm latino, because i travel around the country and talk to certain groups and i feel the blowback, the

resistance, especially when i'm talking about immigration from folks who have an angst about the changing of america, the browning of america even. without question. but in general, this is a kind and compassionate country. this is a country of opportunity. latinos have benefited tremendously with this country and we have contributed tremendously to this country. it is a win/win for both the latino community that is interdependent with the rest of america and vice versa. i think america has honored us and i would like to say that we have honored america. stuart: daniel garza, we appreciate you being on the show today. your input is valuable and we appreciate it. the president right now is in ohio. you saw him arrive, you saw him get into his limousine. after dayton, ohio, he's off to el paso. any headlines, any pictures we get, you will see it throughout this program. in a moment, bearing in mind what's happening in the stock market, i will talk to ron carson. he was named a top 100 adviser.

i want to know if below 2% rates on the ten-year treasury is the new normal. we are really in a race to the absolute bottom. that's a key story today. the tumble in global interest rates. we are going to address it after this. we all feel, we all love, we all cry. it's part of being human. sonoma county declared a homeless emergency in 2018. you have to know the individuals you're serving to understand their needs. working with ibm watson we can bring together data spread across dozens of departments. that gives us a fuller view of the people we serve. dear tech, dear tech, we need to look after everyone in our community. and we want to help our fellow human beings. ♪ ♪

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and financing is available for qualified purchasers. stuart: two stories about your money today, both very important. number one, the dow jones industrial average has tumbled. right now we are down 240. we had been down 580. the other big story is the tumble in ten-year treasury yields and this is a profoundly important story. at the moment we are at 1.64%. literally a half hour ago, 45 minutes ago, we were all the way down at 1.59%. absolutely tumbling. major significance. i want to bring in ron carson, the founder of the carson group. let's get right at it. are we heading towards zero

rates in the united states just like they've got in france, in europe and japan? >> i have no idea. i mean, everybody's trying to guess interest rates ever since i have been in the business. stuart: okay. all right. answer me this one. okay. if you don't know whether we are going to go down to zero, and i understand that you're not going to make that kind of prediction, i understand that, but what's the significance of zero interest rates, actually negative interest rates, all across europe and japan and every central bank in the world dropping rates? what's the significance of that? >> well, what the significance is specifically for the u.s. right now, obviously it's going to force the fed to be much more aggressive in lowering rates just because of the differential that we have. i mean, the surprise move this morning with new zealand down 50 basis points, we've got german ten-year at an all-time low. we've got 14, moving toward $15 trillion of sovereign debt so it's going to force the u.s. to

lower rates if they don't want the dollar to skyrocket. that has all kinds of ramifications. ultimately, you just wonder where does this massive bond bubble is continuing to grow. the last time i saw this kind of move in the ten-year was during brexit and the time before that was during the financial crisis, and i think personally, my opinion is we are going -- we have a good chance of actually seeing negative interest rates in the u.s. if you would have asked me that five years ago, i thought no, it's not possible, there's no way that would actually happen. i think it's a real possibility. who would have ever thought we would have as much as $15 trillion in negative yield? stuart: who would have thought. but with all this worldwide printing of money, this shoving of money into economies all round the world, including this one, i would have thought that some of that money would find its way to the american stock market. right? what do you think? >> yeah, you know, this is where it gets pretty tricky because,

you know, initially you think okay, there's all this money printing, it's got to find its way into the stock market but on the other hand, it's cause and effect. the reason interest rates are negative is because people are very concerned about what the economic outlook is. you look at germany this morning, the manufacturing number was much weaker than what we expected. we have a manufacturing recession basically going on in the world. so you've got to really temper those. you have seen bitcoin, cryptocurrency, we've got gold with a breakout this morning, and maybe, is there a possibility we will enter a super cycle for commodities. there could be some other places, real estate. i think real estate, especially looking at farm ground in some of these asset classes, especially with commodities getting stronger, a lot of money could be absorbed in alternative asset classes. stuart: i find it fascinating. i just wonder where that money will go. ron carson, thank you very much for straightening things out this morning. we appreciate that. thank you. >> thank you. stuart: now, i got this.

this is breaking. it's from the white house. the president may roll out his health care plan next month. i think you've got some new details. ashley: we understand the plan would cover pre-existing conditions. it would also include the idea of international drug prices, meaning the drug prices are the same as those in other countries. we know we pay a lot more here than they do in other countries. what else does it have? it says there will be more freedoms in the health care system. the individual mandate, long gone. by the way, it's going to allow people to keep their private insurance. obviously many more details to come. those are some of the headlines. stuart: that's the bullet points. ashley: of this health care plan that will be rolled out next month. stuart: mentioned this morning it will be a really good plan. he said that in his statement this morning. okay. we expect that full rollout next month, is it? ashley: next month. stuart: thank you very much indeed. big story today, the market, your money and of course, the president in dayton and el paso right now. dow industrials down 270 and as

you can see, left-hand side of your screen, the president has already arrived in dayton, ohio. more on all of this, after this.

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bucks, nearly 5%. it's at $134. they announced their earnings, their profits took a bit of a hit because they paid a lot of money for fox movie assets. bob iger, ceo, laid out a new bundle for disney plus, the streaming service. $13 a month gets you disney, hulu and espn content. it starts in november. now, the streaming stocks competing with disney come november time, let's have a look at them, they are mostly down although we do have roku and at & t up slightly. netflix below $300 a share. the cable companies, they are obviously competing with streaming which comes to you over the internet. give me streaming. can you give me cable stocks? there you go. comcast down, charter communications down, frontier down, verizon, though, up 17 cents. ashley, another part of that report was that disney's theme

park attendance is down. why's that? ashley: interesting, because they had the new "star wars" themed attraction at the parks and they thought they would get a big boost from that but the company says unexpectedly, potential guests stayed away because they were worried about overcrowding. they didn't want to get involved in the crush as this new "star wars" -- stuart: that's it. ashley: also trade tensions between the u.s. and china has not hurt attendance at shanghai disneyland but civil unrest at hong kong has hit traffic at their park there. stuart: it would. i can see that. tear gas does not do well. thank you, ashley. check the big board. down 300 points. i'm not going to say we have stabilized but we have held steady, minus 300 for about the last 35 minutes. good going. big tech mixed. apple is at $196. it's down a few cents. google is up.

amazon, down some more, $1772. facebook is up 30 odd cents. microsoft struggling back -- struggling down, i should say, to $134. chip makers up and down, all over the place recently. mostly up today except nvidia which is down 27 cents. trade-sensitive stocks. we just received this. the white house to move forward with a ban on u.s. government business with huawei. so trade-sensitive stocks, if that kicks up a little bit, boeing down, caterpillar, 3m, united tech, all on the down side. better check the financials, especially the banks. on a down day like this, they are all down. big-time. 2%, 3%, 4%, big banks on the down side. i'm fascinated by the price of oil because it's coming down, $50.99 a barrel. 5% drop. that is enormous, despite the fact that the iranians are saying you are going to face the mother of all wars, america, if

you don't lay off with these sanctions. $51 as we speak. that means the big oil companies, they are all down today. the drillers are down. big oil is really down, exxon, conoco, chevron, bp, all down in percentage terms. that means they are really down. back to the big board. down 303 points as we speak. the yield on the ten-year treasury all over the place. ashley: i've got it, it's been 1.63. it came back to 1.64, it's at 1.63. stuart: call it 1.63. way down from yesterday. more "varney" after this. let me ask you something.

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stuart: we just started to head a little further south. now we are down 320 and the vast majority of the dow 30 are in the red. i just see five winning issues on the dow 30. i want to bring in jim awad, the same vintage as myself. he's seen a lot of this stuff before. are you going to tell people to buy anything right now? you think we are going to get a rebound at some point in the future? what are you doing right now? >> yeah. well, if you look at the facts as we know them today in the

u.s. economy, these big down days driven by fears of what's going on overseas and quantitative trading, i think still create buying opportunities. the u.s. economy is growing, the consumer is going to power through, corporate profits have been better than expected, outlooks were not negative. the rest of the world is slowing and it will slow us some, but i think with the revaluation of multiples that you've had the last few weeks and with the prospect of growing corporate profits, i think when you look back, on these big down days, if you bought, you are going to end up making money before the end of the year. stuart: all over the world, especially europe and japan, they are dropping rates because their own economies are not doing well. they are printing money. it's free money, by the trillions. will it work? will it revitalize europe and japan? >> i don't think so. i think the issues are more

structural in those areas that they are stuck in a slow growth mode because of their economic models and they are going to need fiscal and regulatory reform like we had here in the united states. but the lowering rates won't hurt. it will hurt their financial institutio institutions, only the financial institutions -- it won't hurt the economies but i think they need to do more dramatic fiscal and regulatory steps. they are destined to slow but i think while it will slow us somewhat, we will continue to grow and profits will continue to grow and money will continue to come into the united states and we are a source of stability and capital and entrepreneurship, and we really are the shining light and when stocks go down like this, when you look back, you are going to want to buy them.

you don't want to get shaken out of good stocks because of short-term market movement. stuart: real fast, i never thought i would ask you this question but i'm going to ask it anyway. do you think it's possible we will get down to zero interest rates in the united states? >> no. stuart: okay. >> the economic fundamentals don't justify it. obviously, it's troubling and ominous to see rates dropping like they did today but with the kind of growth and even the subdued inflation but with the 1.5%, 2% inflation that we have, 2% growth and growing profits that does not speak to negative interest rates. stuart: jim, thanks very much for joining us like this. we do appreciate it, sir. we will see you again soon. thank you. check bitcoin. on a tear recently. come in, naeem aslan. is bitcoin the new gold? what do you say? >> thanks for having me. there's no question about that. it is the new gold for sure.

because the reason that i'm saying that is look at the correlation of the risk on assets and the safe haven assets. you can clearly see the two particular derivatives that stand out, one is precious metal, gold and the other is bitcoin. the rally we have seen since the birth of the currency war, which is about to happen, that really tells me that the rest have started waking up to this concept that this particular derivative is very important and they should definitely have exposure to this asset. stuart: i have never bought a bitcoin. never invested in it. obviously you have. is it easy for someone like myself, a total outsider, to buy in? can i just give my dollars to somebody, get an account in bitcoins and when i want to sell a bitcoin, get my dollars back? is it that easy?

>> certainly it is. it is only becoming more easier and easier because large number of good projects are coming up and those projects, what they are doing is making the regulators understand what is the potential of this technology, such as a project fully regulated over in switzerland. what they do is really assure regulators that please make this process very easily. it should be as easy and it is right now, just by how you can go and open up your stock account and you can buy apple, walmart, netflix, whatever you wanted to buy. it is becoming exactly the same now. stuart: real fast, i've got 20 seconds, where is bitcoin priced at the end of this year? >> at the end of this year, i think we are going to make another really big high, perhaps, perhaps definitely above $20,000, but i think it

would be between $30,000 and $35,000. stuart: i should have asked you that right up front. a forecast like that is pretty wild. thank you very much for joining us. we appreciate it. >> thank you. stuart: that's going to live on videotape for the rest of the year. big day for the president. he's in dayton, ohio as we speak. he will be traveling to el paso, texas later. kelly sadler is with us, america first action pac director of communications. kelly, as i sit here, i've got monitors on msnbc and i can see what they are covering. they are covering universally the protests, the protesters as the president arrives in ohio. he's not going to get an easy time, is it? >> not from the mainstream media and surely not msnbc. just yesterday or a couple nights ago, they were comparing the president to some neo-nazi by saying when the flags get raised on august 8th on, you

know, it's some reference to nazi germany, they have gone off the deep end in coverage and they are only inspiring further divide and further hatred -- stuart: how do you counter it? you are a big-time trump supporter. what are you going to do about it? >> the president doing what he's doing today, he's going out to these places that just experienced horrific mass shootings and offering his sympathies to the people, the family members of the victims. to the first responders who so heroically stepped in in dayton, ohio and alleviated what could have been even a worse situation by getting in there really fast and taking action. he is promoting a message of unity and today we saw him again denounce white supremacy, hate of all kind whether it be anti-semitism or antifa, that they have no place in this nation and he's going to do his best to eradicate them. he said this again on monday. the message, though, from the

mainstream media of course will never be favorable because they've got trump derangement syndrome. stuart: i see on the left-hand side, you can't see this, but on the left-hand side of the screen, the protesters have resurrected that big baby, the inflatable baby -- ashley: balloon, blimp. stuart: whatever you want to call it, wearing a diaper, i believe. it's insulting to the president. that's going to be splashed across the media all day today. i think for some time to come. >> well, i think it's too bad. i think the democrat presidential candidates are also beyond the pale in making this a political argument. we had a quinnipiac poll come out yesterday where 20 of these presidential candidates are polling below the margin of error. they are looking to politicize on this horrific tragedy in order to move up in the polling. we have already seen this with beto o'rourke. they are heightening their hateful rhetoric. their divisive rhetoric. this is really irresponsible.

joachim castro put out a list of supporters and donors in el paso with their names and where they are employed. what good is going to come out of that? these people are going to be targeted for their political beliefs. we have got to grow as a nation and be better and politicians and the mainstream media do bear some responsibility in this. stuart: point taken. kelly, thank you for joining us. appreciate it. we'll be watching that media all day long. thank you. the markets still holding with a loss of, what, 300 points. got it. now look at this. that's uber and lyft. they both report earnings this week. lyft is today, uber is tomorrow after the bell. both stocks ever so slightly higher. but below their offering prices. walgreens is shutting down 200 stores. they've got 10,000 locations in america. it won't really affect customers, they say, or people filling prescriptions and they wouldn't say which locations are going to close. walgreens is down 27 cents.

interesting. in an overall down market, 27 cents lower. cvs, rosy earnings report from them. revenue up big, especially in the pharmacy department, thanks to more patients and higher drug costs. doing nicely, the stock. 5.5% up in a down market. here's an interesting market. the price -- the oil market. near the low of the day, now down to $50.78 per -- 72 cents per barrel. maybe that's good news for the airlines. after all, cheap jet fuel is on the way, surely. we will talk to jetblue's ceo about that in just a moment. of course, we are following the two stories, the financial stories of the day. stocks selling off and in politics, president trump in dayton headed for el paso. more "varney" after this. welcome to the place where people go to learn about

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right now. jetblue's chief executive, robin hayes. he also has a british accent. welcome to the program. >> great to be back. thanks, stuart. stuart: yeah. i think you're going to be looking good in the very near future because the price of oil is, look at it on the screen, $50 a barrel, way, way down. that surely means that jet fuel prices are going to go down and your profit margin's going to go up. tell me where i'm going wrong. >> that's a good start. airlines for the most part like low fuel prices. it's the largest cost that we have. i think airlines have struggled over the years with just the way the price moves up and down. i think one of the things we have seen over the last few years overall is instability. we do have to plan for the long term so you can't get super-excited one day and say oil is down 5%, airplanes are very expensive so you have to take a longer term view what you think oil is going to do. stuart: but your business could take a hit because of this worldwide slowdown in economies

all the way around the world. and also, you've got fewer foreigners coming to america from europe, especially, because america with its strong dollar is now much more expensive. that's a negative for you guys. >> right. there's always puts and takes. what i would say for jetblue, 70% of our business is domestic in the u.s. i've got to say, that's still remaining very solid. i was watching your show in the green room and all these guests on talking about what might happen, i mean, we really only have a view two or three months out but demand seems very solid. stuart: still strong? >> yes, domestically. stuart: domestically. because we still have a strong economy. >> yes. stuart: you just bought, what is it, 13 airbus xlr planes single aisle, i think? >> yes. yes. stuart: long distance? >> yes. stuart: you going to use that to get to europe? >> yes. we are announcing 2021, we will start flying to europe. we now have 26 airplanes that can do that. you know, the challenge is everyone thinks there are a dozen or more airlines flying between the u.s. and europe but it's not true. stuart: really? >> it's not true.

you have these three big immunized alliances where these big u.s. airlines get together with big european airlines, they go to the regulators, they get permission to collude on pricing and it allows them to fix schedules and fares. that's why you see such high business class fares to europe. what jetblue wants to do is come in and change that. we want to lower fares, make it more accessible to everybody. stuart: you're right. you fly first class -- the odd compliment, you are right on this. it's true. the first class and business class from america to europe is wildly expensive. >> yes. stuart: you think you can undercut that significantly? >> yes. we have already done it. in 2014, when we started flights between new york and the west coast, with a new business class product called mint, we had the effect of lowering fares. we were studying fares that were below $2,000 for $599 one way and offering customers a flat

bed experience. we have done it in the u.s. market. we will do it in europe. stuart: you are going to keep up with a very competitive pricing? >> yeah. stuart: wait a second. can you fly me from say newark, that's one of your hubs -- >> yes. stuart: can you fly me from newark to anyplace in europe with a flat bed, first class service for less than a thousand bucks? >> well, we will be flying from new york. jfk. we would love more slots in europe but that's pretty hard, as you know. and we will definitely have lower fares. i can't tell you what the fare is going to be, i'm not allowed to do that. if you look at fares now across the country to the west coast to new york, to where they were, they are about half what they were in business and first class. so we will have a profound effect, i believe, in bringing down business and first class fares to europe. stuart: why are you targeting europe? you expect an explosion of travel there? >> it's just what we do best is look at a market that is being gouged by competitors with really high fares. and we go in.

we go in and we lower those fares and offer better product. that's what we do. we are going to do that as we add service to europe. stuart: i see your stock, is that right, jetblue is at -- is that right? >> yes, of course. it's on fox business. it must be right. stuart: oh, he's good. he's good. but look, this is a huge down day, we are down 370 on the dow. your stock is up a little bit. i bet you it's because i said you are going to do well with jet fuel. >> it's that or the oil price is down. stuart: sir, it was always a pleasure. good to see you. thank you for joining us. >> thank you. thank you. stuart: where else do you get three british accents? and we kept the audience. that's pretty good. thank you, sir. now, we have headed a little bit further south for the dow industrials. we are off now 367. we started to come back a little bit. that's the main financial story of the day, along with tumbling interest rates. left-hand side of your screen,

the president has arrived in dayton, ohio. you can see him there just stepped off the plane. that's moments ago. after dayton, he goes on to el paso. we have this for you. the president's campaign and the rnc suing over a law requiring presidential candidates to release their tax returns. to get a spot on the california ballot. we have the head of the california republican party on that one, next. hey! i'm bill slowsky jr.,

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stuart: with the yield on the ten-year treasury at 1.63%, historically extraordinarily low, the dow industrials are down 348 points. we had been down nearly 600. i guess you could say we have come back a bit, maybe 300 points, but we are still down 1.33%. big story out of california. governor gavin newsom signed a law that requires every single primary candidate in the state to release their tax returns. the president is suing because of that. here's his tweet. quoting john yu on the ingraham angle, california is trying to meddle with the ballot to interfere with president trump and it's clearly something they are not allowed to do.

it violates the right of any party to choose its leaders under the free speech clause and under the 14th amendment. john yu, former governor jerry brown vetoed the same bill in that it was ridiculous and totally unconstitutional. just more of the record so-sett presidential harassment. don't feel badly. new york state is far worse. all right. it's true. jessica patterson, california gop chair, with us now. jessica, i've got a feeling you have to take this to the supreme court. if you join this suit, i think you've got to take it to the supreme court because i can't imagine any california court, any of them, being in favor of president trump. what do you say? >> well, thank you for having me, first of all. and the california republican party has actually joined suit with the rnc and we have also filed separately within the california state court, because it is constitutional on the basis of the federal constitution as well as the state constitution.

stuart: can you get an injunction to stop this thing going ahead so the president can be on the ballot in california? >> that is actually exactly what we are doing. in addition to that, it's not just about the president and it's not just about 2020. this has ramifications that go far beyond that. here in california, what some of your viewers may not know is we have an open primary for legislative and congressional seats, and because of that, as you know, historically, the top of the ticket really drives the turnout here and everywhere else, and if we don't have our presidential candidate on the ballot, this gives democrats the perfect opportunity to get two democrats into the general election in some of these down ballot races. it's unconscionable that they continue to play petty politics, but the overreach and arrogance of california democrats has just gotten completely out of control in california. stuart: the other side of the coin is do you think that the president should release his tax returns?

>> well, here's the thing about it. if you don't want to vote for someone that hasn't released your tax returns, their tax returns, then don't. this is again, california democrats looking for a problem with a solution of their own. it's really unconscionable that they continue down this path. we have real problems, problems that you on your show have talked about here in california. we have an unaffordability crisis that has just skyrocketed. we have homeless issues that's become an epidemic here in california. in k through 12 education, that is absolutely failing our children. the democrats in california and governor newsom should focus on those problems and not look for new problems when they don't have solutions that are constitutional. stuart: jessica patterson, chair of the california gop, thank you very much for joining us this morning. we do appreciate it. thank you. >> thank you. stuart: sure thing. all right. we've got the dow now down 300 odd points.

i say 300 odd because we are all over the place. moving upwards and downwards. left-hand side of your screen, the president has arrived in dayton, ohio. i tell you now, the cameras for other networks are focusing entirely on the protesters who are out in force to greet the president. they say he's not welcome. more "varney" after this. so ...how are you feeling? on a scale of one to five? one to five? it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry clive! actually, really angry. thank you. but what if your business could understand what your customers are feeling... and then do something about it. turn problems into opportunities. thanks drone. customers into fanatics change the whole experience. alright who wants to go again? i do! i do! . .

stuart: we predicted the president would be greeted with hostility and contempt when he is in dayton. he is in dayton. we have a brief shot of at baby blimp used to insult the president all over the world in london, in particular. i'm not sure whether the baby blimp is in ohio. ashley: it is in ohio. stuart: the president moved on. all you can see on networks is protesters gathering to be

hostile to our president. the man is trying to arrive at the comforter in chief. he is being total by some locals, not welcome, get out of here. stuart: ashley: you're responsible for this. because of your rhetoric. you have no place being here. of course he does. stuart: he is the president of all people. don't forget that. he did say as he left the white house there is no political appetite in terms of legislation to ban assault weapons. so the president has been out there, saying you're probably not going to get an assault weapon ban. he said that earlier today. of course the other big story is money. we've got a huge down side move in the dow industrials. of the we come back a little. ashley: stablize ad little. it was spooky at the beginning. this is very volatile market. we've seen the yelled on the 10-year now stablize 1.63.

it's a race to the bottom. interesting with the cheap money, markets sinking along with the rates. that is astonished me free money. super easy money, all the way around the world is a race to the bottom. really extraordinary. neil cavuto. it is yours. neil: not helped stocks one iota record run lows at interest rates, the low since october 2016. there is that night to safety, like gold which sis above $1500. first time we've seen that in six years. the president is hitting the fed for problems popping up in the market. not china. things are already a little tense with china. we are indicating very much keen from removing huawei from any u.s. government business. the chinese responding, very intent what we can do to sort of screw up your dla