we had our seat belts on. want to see if the belief of the u.s. economy is a strength. dagen: have a fantastic weekend. right now, stuart varney, "varney & company," take it away. stuart: good morning, dagen. good morning, everyone. it's friday. this is a good way to end a rotten week. half an hour from now, the dow will go up over 200 points and there will be a solid gain for the s&p, up about 25. look at that nasdaq, up about 81. all right. why this rally? first of all, president trump talked last night about a china trade deal in the near future. maybe not a comprehensive deal, but a modest agreement. he and xi jinping have talked on the phone and will talk again soon. that's regarded as a positive. and china has announced a new stimulus program. that shows they are indeed hurting. there's a protest under way in hong kong right now.

how that turns out and beijing's reaction to it may well have an impact on our market today. we will show you that protest. second, that recession signal, the inverted yield curve, well, as you can see, it is no longer inverted. the ten-year yields more than the two-year, the way it ought to be. but i want to show you this. money is pouring into america's 30-year bond. its yield has dropped below 2% again. why? well, germany's bond has reached yet another new low, negative yield, minus .7%. really crazy stuff. all right. you may think this is a crazy headline, too. president trump, according to the "wall street journal" has suggested america buy greenland. "varney & company" is about to begin.

>> no, i think the longer the trade war goes on, the weaker china gets and the stronger we get. we're taking in massive amounts of money, billions and billions of dollars, as you know, and i think the longer it goes, the stronger we get. i have a feeling it's going to go fairly short. china's lost millions of jobs. stuart: you heard that. i think it's going to go fairly short. president trump talking china trade. more on that in just a moment. first, i want to turn to hong kong, where a protest is happening right now. susan li is there right in the middle of it. tell me what's going on right now. susan: we will be moving right to it as well. if you are looking at these live pictures, we do have a sizeable rally taking place right in the financial heart of hong kong. this is just right beside the famous skyscrapers that dot the hong kong skyline. i would say maybe up to 1,000 are in attendance and the headliner at this rally in

particular which is stand with hong kong, rally to the people power, that's what it's called, this rally. we have joshua wong, the young protest leader in 2014 of the umbrella movement that we know paralyzed the city and its roads for about two months' time. now, this weekend is when we are expected to see the really big rally so on saturday night, we have what's taking place in more the rural parts of the city. we are expecting 300,000, at least that's the number that's being bandied about at this point. that will take place tomorrow evening on saturday. but sunday, there's a rally being called for also the financial part of the city of hong kong as well from central. for anybody that's ever been here, they know that is the main roads in the city of hong kong and the last time there were these rallies in the city of hong kong, two million of the city's seven million residents came out in support. we are expecting pretty large numbers to come out and walk this weekend. stuart: the chief executive

officer of cathay pacific, hong kong's airline, rupert hogg, just resigned. why? susan: well, because of the disruptions caused by these hong kong protests. it was the worst week for cathay pacific as a public company. the stock is trading at a ten-year low. also, there has been some controversy over the participation of some of its pilots, some of its employees, in these hong kong protests. in fact, cathay pacific had to fire two of its pilots because of what they saw as participation in these hong kong protests, and also, of course, the disruptions at the airport. the hong kong airport is the world's eighth busiest, hong kong cathay pacific is the main airline out of hong kong so you can imagine the damage to the business it has taken. stuart: staying in hong kong, james carafano is with us, foreign policy guy with heritage. does the unrest in hong kong give president trump some leverage? >> no. i don't really think so.

beijing knows that the u.s. has super little leverage here. stuart: you're still on. i don't know whether you just lost everything but you're still on, lad. keep going. >> no, no, no. look, there's not much we can do. beijing knows that. here's what they do know, right, which is the one thing is if they send the troops into hong kong, then u.s./china relations won't be the same for a very long time. the trade deal will be dead, the anger against china and the u.s. will be massive, so all the things that china is trying to do to work around, all that would be lost. stuart: what we should be looking at is how these protests tonight and more especially, tomorrow night, and into the weekend, how they turn out. if they turn violent, that's when there is the possibility, the ominous possibility, of the intervention of those chinese soldiers who have indeed massed at the border. that's what we're going to look at, right? >> well, i don't know.

look, the hong kong police are certainly capable of maintaining order in hong kong. they demonstrated that again and again. there are different explanations for why having the troops in the mainland. one is they can be there as an insurance policy in case pro democracy demonstrations move to the mainland. one thing the chinese government couldn't stand. so that's a warning against that. two is it does intimidate the demonstrators in hong kong. if they might be there as kind of a last resort if things really break down, or maybe they are proactively thinking about moving troops in. there are lots of explanations and lots of arguments why sending the troops into hong kong is probably the last thing xi would want to do. stuart: we will take an eye on that one for sure. james carafano, thank you. thanks for joining us. let's get back to your money. take a look at futures because we are going up this morning. 200 points for the dow, 75 for the nasdaq. that is not exactly a v-shaped recovery after the 800 point loss, but it's something of a recovery. market watcher hans olsen with

fiduciary trust with us now. why are we up this morning? because we got maybe favorable trade news and the yield curve is no longer inverted? >> those are the two things that are happening here. in reality, too, the economy is not that weak. if you look across whether it be the hard or soft data, the economy remains in relatively fine fettle. stuart: i read your stuff. you're worried about interest rates going to zero. we have a real sharp decline in interest rates going on. look at that on the screen. the two-year, 1.51. the ten-year, 1.54. the three-year is below 2%. >> context. there is $16 trillion of negatively yielding debt right now. it's up 180% from october. that money, the entire german sovereign yield curve is negative, below zero. which is remarkable. that powerhouse, as you talked about.

that money is coming to the united states. that's flowing. you add that, plus the central banks are all in a repressive mode with interest rates. finally, because we are in the later stages of the economic cycle, the longest economic cycle, longest expansion on record, we have a flat yield curve and every now and then, we are going to see these dips into inverted territory. i think, though, when the next downturn does happen, and it inevitably will, historically, central banks have had to cut interest rates 300 to 500 basis points. we're at, what, 2% right now? that puts us below the zero bound if they have to do that. i think it's not only possible but it is indeed probable when it happens. stuart: that probably would not be good for stocks, i suspect. >> it's a new world. stuart: the world turned upside down. that's a fact. >> indeed. stuart: president trump was talking about what would happen if he loses in 2020, what happens to your 401(k). roll that tape, please. >> you have no choice but to

vote for me because your 401(k)s down the tubes. everything's going to be down the tubes. so whether you love me or hate me, you got to vote for me. stuart: i'm sorry, but i have to laugh because i have never, ever seen a united states president speaking that way. okay. now, is he right? if he lost in 2020, and any democrat won, do you think the market goes down the tubes? >> well, markets hate uncertainty. a change of presidential administrations is the epitome of uncertainty and in truth, some of the folks that he might be running against have a very hostile attitude to commercial -- stuart: the answer is yes, if he lost, down goes the market? >> we would be in for some tough sledding. stuart: thank you. you got there eventually. thank you very much. the "journal," that is the "wall street journal," is reporting that president trump has been quote, talking with advisers about buying some real estate. that would be greenland. ashley: with varying degrees of seriousness, we are told.

but don't laugh. this is not the first time the u.s. has looked at buying greenland. harry truman back in 1946 offered $100 million for it, was turned down. back in 1867, the state department tried to buy greenland and iceland. that didn't happen, either. the danish have already responded saying we are open for business but we're not for sale. former prime minister of denmark says this must be some sort of april fool's joke but it's in the wrong season. greenland itself, 811,000 square miles, population of 56,000, kind of a pivotal place in the world between the north atlantic and the arctic oceans there. the u.s. does have -- stuart: that's the response. we are open for business, not for sale. learn more about greenland on greenland.com. okay. ashley: they are using it for their own advantage. of course, denmark owns greenland although it is semi-autonomo semi-autonomous. fascinating stuff. stuart: it's friday, isn't it. that's the kind of thing will make a headline on a friday morning.

ashley: can you put a golf course on greenland? i'm wondering. stuart: thousands of golf courses. the place is gigantic. it is the largest island in the world. the australians object to that because their island is a continent. ashley: right. that's right. stuart: you learn everything here. i'm telling you. you really do. back to the markets. we have come back down -- not down, but come back a bit. now we will be up about, what, 1 180 for the dow. change of heart from israel. why the country will now allow congresswoman rashida tlaib to visit the west bank. hong kong's president is calling on residents to withdraw as much money as possible from atms to disrupt the area's banking system. that's a different kind of protest. president trump continues to tout our economy but the mainstream media is having absolutely none of it. they are still drumming up fears about a recession. we will cover it, next. "varney & company" just getting started. 900 acres. 48 bales.

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stuart: police in new york are now investigating a third suspicious device. the first two pressure cookers found to be harmless, but jackie, what do we know about the third? jackie: thit's a third pressure cooker found in chelsea. it is not clear to police at this point if that one is explosive or not. this has been an ongoing story this morning and it's continuing at this point. we will update you when we have more. stuart: who leaves a pressure cooker or two or three lying around in new york city. unless it's to scare everybody to death. all right. president trump again touting the strength of the u.s. economy. roll that tape, please. >> china wants to make a deal and i will tell you, iran wants to make a deal, because the sanctions are not good for them. they are not happy. so we'll see how it all turns out. but it's in good hands. it's in good hands. the united states right now has the hottest economy anywhere in the world. stuart: however, the mainstream

media is playing up recession fears. look at this headline, "new york times." here we go. economic trouble signs hang over trump's trade war. okay. from "the washington post," trump banking on strong economy to win re-election. frets over a possible downturn. joining us, jack kingston, former republican congressman from georgia and former cnn contributor. we will get into why you left cnn in just a moment. first of all, my proposition to you is that the media is talking down the economy deliberately. they want a recession. am i going too far? >> no, you're not. this is absolutely the case. the democrat presidential candidates do not have any issues, they think that america wants socialism, americans aren't embracing it so i think the media is stepping in, trying to help them out, talk about doom and gloom. if you remember, absolutely the same headlines that we're seeing today, we saw in 2016 running up to november and then we even saw

in december 2016 that the stock market was going to crash, america was going to plunge into a deep recession because donald trump, and yet here we are, six million new jobs later and the economy is rolling. stuart: why did you leave cnn? >> you know, it was one of these things where i think they just did not want the opposition party to speak. we were generally, we trump supporters were on panels and it was always four versus one or one versus six and yet i think there were people there who thought that was too much. i was told hey, you defend president trump all the time, and my response was yes, because you criticize him all the time. you know, you can criticize him but when everyone is pounding on him, you need to defend the guy. with this economy, there were so many good things to talk about. think about this. in spite of the doom and gloom, 164,000 new jobs created in july

alone. we are over one million this year, 2019, yet they're saying the economy is bad. wages are up, the market is jittery right now. everybody understands markets get jittery but it has broken its all-time high 80 different times under donald trump. stuart: got it. thanks very much, jack. appreciate you being with us. if you ever want to go back to cnn, just watch out. >> you've been there. you know. stuart: long time ago, though. next case, congresswoman tlaib, not going to israel. okay. despite getting clearance to visit her relatives on the west bank, she's not going? jackie: no. she just tweeted this. quote, i have decided that visiting my grandmother under these oppressive conditions stands against everything that i believe in. so just to backtrack quickly, she requested permission to go, netanyahu said she and ilhan omar wouldn't be allowed to do it because of their support for the anti-israel boycott movement. then she did get permission. now she's saying nope, i'm not

going. stuart: i'm with israel on this. why, you and i joked about this, i thought first they should let them in, but i think israel has every right to say wait a minute, you want to boycott, divest and sanction israel, you are opposed to us, you are one of our enemies, why should we let you into our house? i think they have every right to stop them. now tlaib, congresswoman tlaib is not going. futures. check them out again. we have come back a little bit. we were going to be up 200. now we will be up about 150. race car driver dale earnhardt jr. and his family out of the hospital after their plane skidded off the runway and burst into flames. we're on that story for you. from the couldn't be prouders

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stuart: we reported moments ago that a third suspicious package had been found in new york city. the police have just given the all-clear. it is harmless. let's move on quickly. attention, gamers. we've got an investment for you. we've got a pure play, a gaming etf, a pure play, electronic sports and video game playing. will hershey is with us. you've got this etf and the stock symbol is on the screen. nerd. good choice, young man. good choice. is it a pure play? i know it's a basket of stocks,

but are all of those stocks about video gaming and e-sports? >> yeah, very much so. really, when we look at creating a thematic product, we want to provide people exposure to that theme. we are not going to add amazon and microsoft in there where you end up with something that looks like a broad-based benchmark. we will invest in companies that are very much tied to this space. stuart: pure play. >> yes. stuart: would i be right in saying that playing these games and competing in these games, we in america are behind other parts of the world like asia and india? >> very much so. leaders in the space, believe it or not, unlike other industries, are really korea and china. they call it, you know, 400 million viewers of e-sports worldwide growing to 600 million by 2022. a lot of those are in asia. stuart: why is your stock, your etf, i've got a chart on the screen, it's flat. >> it's flat, i mean, it's tough launch i launching june sports with all the market volatility we have seen since then. at the end of the day we are investing in public equities so

we will trade in line somewhat with the broader market but we like the theme of investing in e-sports. stuart: got you. will, thanks very much for joining us. good stuff. okay. two big stories. we are obviously following them for you. big crowd gathering in hong kong. is that him? is that joshua wong? okay. that may be joshua wong, a leading protester in hong kong. he may be the speaker now at that rally and protest in hong kong. it's ongoing. we will take you there in a moment. a stock market rally. that's the other big story. which is in progress or will be in a few minutes. nice bounce-back to end a wild week. back after this. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines.

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with one purpose. to fight your cancer, together. that's the mother standard of care. this is how we inspire hope. this is how we heal. cancer treatment centers of america. appointments available now. stuart: this is called the power of the people rally. you're looking at it, left-hand side of your screen. a protest in hong kong. elsewhere, the protesters plan to max out hong kong cash machines. it's part of their protest. why they doing that? jackie: they are trying to send a message to beijing saying we are financial center and you need to give this more attention. it's a non-violent way of trying to up the chaos there. certainly when you pull out all the cash, you know, it can cause a lot of problems. stuart: it sure can. it sure can. it looks dark where they are right now because of course it is 9:30 at night.

ashley: that would do it. stuart: the protests get rolling at night. there's a sizeable crowd right there. i want to know how it ends. that's what i want to see. all right. five seconds to go and we open this market on a friday morning. i know we are going to go up. the question is, how far up and how do we close. that's the other story. okay. we are off and running and we are up 115, 120. we are up 122. 130. i'm going to call it like this. we are up a half percentage point right from the get-go. that's the dow jones industrial average. show me the s&p, please. where is that? that is up about two-thirds of 1%. the dow is now up 160. nasdaq -- sorry, the s&p is up 19. look at that nasdaq go. i guess that's good news for the technology companies because that thing is up close to 1%. the ten and two-year yield comparison, have to do it these days, as it should be, the ten-year yields more than the

two-year. ashley: just. stuart: just. but we'll take it, okay? where is the price of gold on a day when the market's going up? the price of gold is down eight bucks but still strong. $1,523 per ounce. who's with me? david dietze as usual on a friday. welcome, david. rebecca walser in the studio with me. jackie deangelis and ashley webster. right at it. we are now up 170 points. why? give me reasons. >> strong consumer. we saw retail sales double reported yesterday versus what was expected, plus productivity gains, plus coupled with, of course, shock and awe language from the finnish member of the ecb talking about all the monetary stimulus the ecb is going to provide in september. those two factors alone are helping drive this market north. stuart: may i just interpret that. the finnish guy, we don't normally pay attention to finnish guys on this program, but he's saying there's going to be a gigantic stimulus program

in europe. that, you say, is good for us? >> absolutely. because it's lowering interest rates there and it's going to keep a lid on interest rates here. stuart: rebecca, first appearance in new york city, i think, or maybe the second. >> that's okay. stuart: give me reasons why the market's up. >> i think he's exactly right. we have strong fundamentals, consumer sentiment is so high. retail sales are up and we're good and strong and if we are going to -- it's the rural that's the problem, if the world is going to give monetary quantitative easing and stimulus, then we can take it and we will at a time so it doesn't come to our shores because we're good. the united states is still good. we have great fundamentals. stuart: and trade sensitive stocks on your screen now is another reason why the dow is up. they are all up. boeing still at $329. look at apple, please. they are planning, they say, they are planning on adding 20,000 jobs in america in the next four years. does that make you want to buy apple's stock at $204? >> it's still a good long-term play, absolutely. they are the ones to go to still.

they are shifting their actual business model, not so much hardware but software, apps and all that. they have 9,000 manufacturers in the united states. they are providing jobs. >> it's good politics. obviously, they are also seeing the effect of relying too heavily on offshore sourcing for all their materials and so forth. they are trying to bring it back on here. it curries favor with the president and they have gotten a reprieve in terms of the trade tariffs until december 15th which could be good for iphone sales. stuart: i have to take a look at disney. why? because "toy story 4" is disney's fifth billion dollar movie just this year. ashley: record-breaking. incredible. stuart: five movies this year. ashley: despite their lousy earnings report last time out. stuart: all of those movies, by the way, are going to go on to disney's streaming service which opens up soon. so david, is that a bad sign for

netflix? >> it puts them under treasure pressure because before, disney did not have the streaming channel and now they've got the streaming channel, they are the king of content on the planet. stuart: netflix. >> i would be a little worried about netflix. i'm so excited. disney has these five movies, before they have "frozen 2" coming out and "star wars," the final one in all the series which makes my goosebumps come. stuart: they are all sequels. no original stuff. >> you grew up with luke skywalker, this is the last skywalker. this is huge. i project we will have another two movies that go a billion dollars. stuart: young lady, i grew up with cary grant. what have you got? ashley: that's stu's luke skywalker. look, the five billion dollar movies, to your point, which one of those is original? stuart: none. >> responding to consumer

demand. another interesting factoid, box office receipts are down 6.5% year over year which shows the power of the streaming channel. stuart: check that big board. we are up almost 200 points as the futures market predicted. hold on for a second, we might get to a plus 200. there you go. thank you, everybody. nvidia, they make gaming chips, they are up today. strong performance in their financial report, up 12 bucks. that's 8%. walmart, that was a real big winner yesterday. they had a very strong earnings report. they are up some more today. $114 a share on walmart. that's up 1.3%. how about bitcoin? what happened to that? maybe a rush to safety last week, but now they are back to exactly $10,000 a coin. here's the news i really like. okay. the price of oil, let's get rid of that. here's what -- there you go. $2.63 per gallon is the current quote. the regular price of gas

nationwide on average. by the way, in california, it's $3.60 on average. i'm not going to say a word. john deere, it's not deere any longer, it's deere and company, their profits fell but they gave a strong sales outlook for latin america. that apparently is very important. the company says farmers here are holding back on buying big equipment, i guess that's because of the trade war. >> absolutely. it is 100% focused on the fact china is not buying our agriculture so where's the demand. stuart: yet the stock is up 4%. very very nice gain there. >> long-term consumer. it's going to be long-term, you know. we will make this work out. stuart: you think investors are betting on an agricultural deal? >> i think so. i think we will at least get that. that's not the problem. it's the intellectual property and made in china 2025. stuart: let's go on the next one. we have ge. very important subject here. this is for you, david. ge took a big hit yesterday and

the day before after a madoff whistleblower, not going to try to pronounce his name, accused ge of cooking the books. ge says the allegations are without merit. you have been a bull on ge. let me point out that the adviser, this analyst, he gave his report which was very negative on ge, he gave his report to a short seller before the report was made public. that implies to me this analyst, mr. markopolos, has a vested interest in this stock going down. come on. >> certainly we have to look at his motivations and how much he was paid and what he shares in terms of the short sellers' profits. but more importantly, the fact that ray culp, the new ceo of ge, has voted in terms of dissing this report in terms of opening up his wallet, he's invested $2 million of his own money in ge stock.

it's a publicly traded entity, not like the madoff fund. this has been looked at for several years now by all analysts on the face of the planet and they have not found anything similar. i'm skeptical of this report. ashley: he called it a bigger fraud than enron. really strong statement. stuart: he used the word fraud. ashley: yes. stuart: which is litigious. yesterday ge fell 11%, the biggest one-day decline in many, many years. i don't know how many years but a long, long time. >> full disclosure, i joined with mr. culp in buying some shares yesterday. stuart: you did? >> yes, i did. not to a million dollar scale. i think we will see a rebound. stuart: okay. what do you think? would you touch it? >> yes, actually. absolutely. i do think that this report is not on the status of bernie madoff. if you look at the reserves and what they can pay, they can deal with the $18 billion this analyst is even talking about. i don't think this is enron. this is definitely not enron. stuart: okay. it's still at $pai8.60 a share.

a few years ago that would be unthinkable. how about capital one? the "wall street journal" reports that some employees raised some red flags before the big hack. tell me more. jackie: the "journal" is saying they were worried about the strength of that cybersecurity unit, that there was a lot of turnover with the employees and maybe the company had not invested enough in software to defend against these hacks. page thompson, that former amazon employee, got in there. she got the data and there was a breach. we believe that it was not used for nefarious purposes at this point, but you know, it raises awareness on companies strengthening those units, making sure they're secure for customers. stuart: capital one up a little bit today but not recovering fully from where it was previously. show me the techs, the big techs. where are they now? all up this morning. all right, david. take a look at those on the screen. do you see any bargains there? anything you would buy right now at those prices? >> we certainly like microsoft, apple has a good valuation.

amazon is going to enjoy the strong consumer. i think these higher valuations actually can be justified for several reasons. one is low debt, huge increase in revenues and basically monopoly status. who doesn't own -- use google when they are searching for something? stuart: rebecca, which if any would you buy? >> i think facebook long-term has some long-term strategy growth because as you look at libra, what they are looking to do there, i think investors will be speculative. stuart: if you owned any, would you sell them today? >> no. stuart: david? any sell? >> we are holding today. stuart: but you did buy ge yesterday. >> i'm on record. stuart: all right. 9:40 eastern time on friday morning. you know what that means. rebecca, it was a real pleasure. come back to new york again. david, same to you. come back soon. thank you. all right. the dow industrials now up 200 points right there. just made that mark, 200 points up.

25,700. weight watchers, they face criticism for releasing an app that targets children as young as 8 years old. we are on the story. i'm calling this an example of gross hypocrisy. the democrat frontrunners are ranting about income inequality and reforming capitalism even though all of them are multi-millionaires. my take on that coming up at 11:00. it will be a rant. new report claims 75,000 stores will likely close by 2026. what's going to be done with all those dying malls and empty buildings? we will tell you next. what do you look for when you trade?

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stuart: all right. we've got a gain, holding on to a gain of about 160 points, the best part of .66%. how about weight watchers? reportedly, they are trying to attract youngsters, children as young as 8 years old. kristina partsinevelos, come in please. i want a value judgment right off the top. you think that's okay? reporter: it's a really tough question because i was an overweight kid and maybe this app could have helped me when i was younger. however, do i really want a company to be teaching me the ways of how to be monitoring my food. should it be the responsibility of my parents or school. what weight watchers is doing, they are launching an app and it's going to be called curbo by ww. weight watchers changed their name to ww to remove the weight from their name so we are not so focused on the scale, but this app will provide, like you said,

kids up to 8 years old or 8 all the way to their teen agers, they can get this app which teaches them about breathing exercises and then they have a traffic light system, so if you put in your food, say you eat salad for lunch, that's green which means you can eat it freely. but if you had pasta, that's yellow so you should maybe have it in moderation, slow down. then if you had soda or candy, that would be a red, stop. think twice about having that again. so that's the system they are trying to teach young children how to be eating their food. it's going to cost people about $69 to use the app. you can pay even more to get video coaching. but of course, that raises the question, is it creating a culture where you are obsessed with your weight at a young age, will it instill eating disorders or is there a really smart move for ww, weight watchers, because they are getting young people to use the app at a young age and eventually continue to use it, you know, in the future.

you have children. i don't have children. how do you feel about it? stuart: good one. reverse it back on me. that's very good. i'm not prepared to say it's bad and i'm not prepared to say it's good. i'm exactly the same as you. it could be useful and it could encourage an overconsciousness of one's weight in a very young person. reporter: true. very very true. stuart: that was very good. you got me. i was going to get you right at the top of that question. i demanded a value judgment and you threw it right back on me. reporter: i'm a journalist. i don't think anything other than the facts. stuart: i'm just a performer. thank you very much indeed. i've got a big number for you. ubs expects more than 75,000 stores to close by 2026. jay scott shields is back with us, a commercial real estate kind of guy. welcome back. good to see you again. what are we going to do with all these empty malls? >> what you are really seeing is

kind of a shedding of the dead wood, the old business model. stuart: what's going in their place? >> a lot of things. there's a transition that allows people to get in and get entertainment, get service industry stuff that's really internet insulated, as well as the experience in the entertainment. that's going to come back to take the malls but -- stuart: wait, wait. let's speak in english. entertainment centers. movie houses? >> movie houses, bounce parks for kids -- stuart: bounce parks? >> yeah, like trampoline parks for kids. you've got different sorts of activities that, you know, families can go to, that children can go to. stuart: restaurants? >> tons of restaurants. restaurants, probably the overswing. there's too many of those going into the new facilities. i think you will see some correction. but this is really the outgrowth of the overbuilding and diminishment of sensitivity where people build too close to other stores because it was better to put -- stuart: no, no, no. come on. you know what's going on here.

this is online selling which is killing the department stores. >> the department stores which are the anchors are definitely going away. there's no doubt about that. but what you're seeing is a fine dovetailing of the click and mortar strategy. you will see a lot of folks go in and make their buying decisions in the store, but make the purchase online. that happens a lot. stuart: so if you change it from a macy's or nordstrom or whatever and you put in a restaurant, amusement park and movie house, does that bring in the same number of people per day, per month, as the old department stores and the retail businesses did? >> it does. stuart: no. >> it truly does. in fact, what you're seeing -- stuart: get out of here. >> you talk about -- stuart: when i went to malls a couple years ago, they were jam-packed. >> correct. especially at the holidays. stuart: you couldn't move. go there now, you can roll a cannon down the front of it. >> because people are going to the interior corridor malls. it's a much more defined shopping experience. you go to the store, buy what you're there to buy and you leave. when you get to things like

entertainment, like food, like gyms, they are bringing thousands of visitors to that same location each day and people are spending a longer period of time. then what happens is you go for that tag-along experience, so when you leave the gym you go to eat. when you leave the entertainment experience, you go to eat. the idea of the shopping is coming around because it's dovetailing well again with that internet strategy. stuart: sir, i think you are playing defense. i don't blame you. thanks for joining us, sir. check the dow. we are up 150 and on the left-hand side of your screen, it's almost all green. most of the dow 30 are going up. it's a broad-based rally. that's what i'm trying to say. look at tobacco stocks. the fda has unveiled new graphic warning labels that will appear on cigarette packs. will that stop people from smoking? we are going to try to show you what these new packs look like. it's pretty gruesome. and the fda will encourage -- will this encourage

people to go and vape instead? there's problems with vaping. ashley: yes, there is. stuart: doc siegel wraps it up for us after this. this was me before liberty mutucustomized my car insurance, so i only pay for what i need. and this is me now! any physical changes to this man's appearance are purely coincidental. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow,

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stuart: a little warning for you. the video you are about to see contains graphic images, gruesome indeed.

the government's coming out with new graphic warning labels for tobacco products. they're on your screen now. turn away if they look too graphic for you. dr. marc siegel is with us now. okay. you can't see that in detail. that's on purpose. but it is truly gruesome. do you think it keeps people away from smoking tobacco? >> yes. 50% of people used to smoke back in the '60s. now it's 14%. we are down to about 30 million. it's already going down because people are aware that smoking is hazardous to your health. everyone knows that. thing is they don't know all of the reasons. i got to tell you when i went to medical school, we saw that black lung and very few doctors smoked after they encountered what a lung looked like physically, this is a picture of it you just showed, and the same thing with your fingers and toes could actually have decreased circulation. so the visual and by the way, people out there don't know that smoking can cause bladder cancer. they know it causes lung cancer. they don't know it can cause bladder cancer. so they show red urine, that's pretty graphic. the tobacco companies of course

are saying it's an infringement on their first amendment rights. that's a legal discussion. but i'm all for this. stuart: okay. will it not push more people into vaping as opposed to smoking and are there not now, we are finding out now there are problems with vaping. i think it's, what, 50 teens have been hospitalized because of vaping. what do you say? >> i agree with you. i think it will push more people to vaping. we have already seen that with teens. high schoolers are now vaping, one out of four or five is vaping, now, that used to smoke. in fact, at the other end after you are addicted to the nicotine, you may turn around and go and smoke cigarettes much more likely. even if i use those ads to keep you away from cigarettes, in the end you go back there via the vaping route. you get addicted to nicotine, then you smoke cigarettes. having said all of that, i actually think vaping is safer and i prefer that people vape, but i don't like the nicotine and let me tell you something about this lung disease you are talking about right now. it is real.

more than -- stuart: from vaping? >> from vaping. vaping has side effects we haven't fully understood yet. propylene glycol can lead to an allergic reaction and lung problems. also the thc which you know from marijuana is in there and also nicotine. so certain percentage of kids are going to have these strong reactions that can put their lives in danger, very small percentage compared to smoking. it's a cost-effect analysis. i prefer vaping to smoking. if i had my way you would do neither. stuart: okay. neither, neither. it's a serious subject. i'm not making light of it. you're dead right. now, look, i don't know if there will be a recession this year or next. i'm not in the prediction business. i'm not going to predict it. however, if you watch the mainstream media, you watch them, it's already a fact. it's president trump's fault, of course, and it will cost him the election, of course. my take on that coming up, top of the hour. the latest from socialist congresswoman alexandria

ocasio-cortez. she says the core part of president trump's base is made up of racists. yes, most of them, racist, she says. this is the modern democrat party. second hour of "varney" coming up. gain i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually. (carrying up to 50 times its tbody weight.essly marches on. it never questions the tasks at hand. but this year, there's a more thrilling path to follow. (father) kids... . .

stuart: 10 eastern, two big stories we follow you. hong kong, left-hand side of your screen, thousands are gathering for a protest, called the power for the people protest meeting. this could be start of another dramatic weekend there. right-hand side of your screen, market, solid gains, half hour into the trading session. it has been a volatile week. we have solid gains to close it out at least at this point. first though, this. i don't know if there is going to be recession this year or next but it's a question we asked many of our guests since the recession threat hit the headlines this week. if you're managing money, you would better have an objective

view, recession, yes or no? here's what our guests had to say. roll tape. >> i don't see recession anytime soon. >> i don't think we're seeing anything anytime soon. >> if we go into recession in 2019, i will wear a chicken suit on this program. >> this is not a time to hit the panic button universally across equities. >> in the past a harbinger of a recession, i agree with you, money is pouring into the u.s. >> i think the answer is most likely no. i think that the u.s. economy has enough strength to avoid that. stuart: well, that is janet yellen, former fed chair, saying no, no recession. the media, however, are the media. sees things very differently. they talk up the recession threat. they want a weak economy as we approach the 2020 election. roll at that tape. >> warning signs of a recession are flashing everywhere. >> while we think we have this great economy. this is one issue i take huge issue with larry kudlow is is

basically lying to the american people every time i comes on air when he says the american economy is crushing it. >> how worried should americans be right now about a recession? >> americans should be worried, because our president is a fraud and a failure when it comes to business and when it comes to managing our economy. stuart: oh, dear. the media is doing the work of the left. they are the pr people for the anti-trump be brigade. the reason is obvious. they think recession would stop trump's re-election. they so detest our president they would sacrifice prosperity to get him out of oval office. the signal achievement of the trump presidency, historic growth, low inflation, cheap gas, rising standard of living for all. it is a wonderful thing. the left cannot afford to recognize the success, it is president's pathway to a second term.

they are so overcome with trump hatred, they actually want good times to end, all for political advantage. the president said yesterday, that if he does lose in 2020, quote, you will see this economy go down the tubes. i think he is right. that is one recession forecast i will make. the second hour of "varney & company" just getting started. ♪ stuart: just getting into us now, university of michigan consumer sentiment indicator. what have we got, ash? >> 90.1 which was a big drop to the previous month, which was 98.4. hill history strong. not a horrible number but not as strong as has been. stuart: no immediate reaction from the markets. the number has been out a couple

minutes, we've gone from plus 120, to plus 135. ashley: lowest level since january. stuart: talking about the media talking up the possibility of a recession. tammy bruce with us, fox news contributor. welcome back to the program. >> thank you. stuart: you heard what i had to say. the media talking down the economy. that is my premise, they want him out of the oval office, what say. >> you bill maher i don't like very much has been honest. he wants a recession because it would get rid of trump. audience i know that would be awful, look at end result. at least now that has been expressed it is clear. with the consumer sentiment rate, media does have power to some degree to influence mood. we know the economy is, rests on the mood, the attitude of the american people. but what is strong here? and the thing that is different from any other time in the past is donald trump. stuart: yes.

>> that is the significant framework. historically we're heading into recession. historical frameworkses do not matter. the present matters. the president matters. the difference, he sees this, created a different dynamic in the country and yellen to admit the economy is that strong, this is not necessarily the direction we'll go. stuart: janet yellen. >> talking about a hollywood producer. that is significant. stuart: it shows absolute contempt and underlying hatred which our media has for this president and the left has for this president. >> that's new. stuart: they are prepared to sacrifice prosperity in the name of getting him out of the oval office. >> they always have been. hatred for donald trump is really hatred for the american people. they have never had respect. there has been contempt for the american people. people who are to be looked down upon. they are the masters of the

universe. they are the ones who know everything. it has been a habit to really, you control the population by keeping an economy that is weak. you don't want people to have too much money. you don't want them to have voice money gives them for candidates, for choices in their own lives. that always has been going on. trump's additional crime of his many, he freed the american people with the economy that helps them live their lives, pursue the american dream. that is what he is doing. the american people feel it, know it. they see juxtaposition of very angry left media who don't like that at all. stuart: man, you have got some energy. every time you have got energy to spare. can i have some of it, please? >> it is easy when trump is delivering the manner that he is. it is exciting. stuart: well-done, tammy bruce, good stuff. >> happy friday. stuart: indeed. jonathan hoenig, capitalist pig hedge fund manager. i'm not asking you whether or not we get recess.

i'm not asking you that. i'm going to suggest this constant barrage of talking up a recession, it really has an impact i think it has impact on the market and may have impact on economy. what say you. >> i disagree, stuart. economy can't cause recession. recession comes from reality. from you and tammy, take a quote from gordon gekko, don't get emotional about stocks. whatever you feel about the president, take the politics out evaluating the market. price is very effective leading indicator, question of recession, i can only point you back to the early 2,000s. the market plummeted in march of 2000, they doesn't call a recession of march 2001. watch price. take politics out. that is your best indicator for future of the economy and potential for recession. stuart: are you still bearish on

stocks? the stocks themselves are bearish. look at this action. 72% of stocks are below the 50-day moving average. what does this mean? in effect the trend for most stocks is down. in a particular, stuart, not even stocks here in the u.s. i'm seeing european banks get absolutely destroyed. this could be a scenario, for example, europe or china, as they say, catch as cold and rest of the world gets pneumonia. yeah, i'm bearish. stuart: you always liked gold for at least six, nine months, saying gold, gold, that is the way to go. you often pushed gld. i think that is etf of, gdm on the screen. >> yes, yes. stuart: which one is it that you like? tell me. >> it is gld. as they say, stuart, a rising tide lifts all boats. this is one of the few areas in markets doing well. when it comes to gold, people tend to be all or none.

they are crazy gold bugs if you will or completely anti-gold. look at one part of your portfolio. an extremely strong part. the fact asset like gold is six-year highs. that is bullish indicator. that is doing well, stuart, despite the fact the dollar is up. i think if you're looking for places to put new money, go with the flow, stick with the trend. right now a trend is with gold. stuart: very interesting. by the way, you lost your razor, what is the beard? >> i'm trying to get chicks. stuart: and the tan, whatever you say. is that makeup or a genuine tan? >> this is genuine thing. stuart: you got that tan in chicago? i will leave you alone. jonathan. >> great to see you, stuart. stuart: let's get to hong kong, serious stuff. protests ongoing again. i want to know this, will china's military move in, if

these protests today and under the weekend turn violent? as you can see, right-hand side of your screen, those are military vehicles gathering at the border, hong kong, mainland china. we're following the story of course. congresswoman rashida tlaib has decided not to visit israel after being granted a visa to go see her grandmother. she and ilhan omar were previously denied entering the country. then they got the visa. talib says no. i'm not going. we have details. stuart: remember the violent attack on andy gno at a antifa rally last month? antifa is back in portland. holding counterprotests to a proud boys rally. what is the mayor going to do there in portland? we'll ask on "varney" after this. ♪

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stuart: characterize a gain of 16 points on the dow, i would call it a modest gain. we're 25,724. there's a protest, ongoing, happening right now in hong kong. susan li is in the middle of it, joining you us on the phone. i want to know how many people are there and has joshua wong spoken yet? susan: we have numerous speeches on stage. we're echoing the similar sentiment. it is packed in the downtown core. hard for me to see. what we've heard so far, hong kong is not part of china. it is friday night. more people are able to join this rally tonight. the big ones are planned for

this weekend on saturday, sunday. we do have, i would say, roughly a few thousand really decked out here, gathered here in downtown hong kong. i'm just outside the famous buildings in the city. we're talking about the famous bank of china building. -- owned by the billionaire as well. i just want to also show you some of the laser beams if i could, if you can see me. right. if you can see me. there we are, love technology. there is a lot of people right now, i as you can imagine, the signals are very hard to come by here in hong kong. -- enthusiasm. they're saying the same things, hong kong is not part of china. i would say almost a bit of anger, especially among the young people gathered out here, they want to fight for their rights, their freedoms. you heard that over and over again, celebrating fact that we do have the protests, especially into an 11th week. i want to show you, the,

demographic that is gathered here tonight. as you can see, black shirted which has been one of the hallmarks of the trademarks of protesters, waving their signs around, promoting the big rally expected this weekend in kowloon. once again here in the heart of hong kong. as you can see a lot of people, very dense here in the heart of the financial district. i don't know if you can hear some of the chanting. stuart: we got it. >> what they're saying. stuart: susan what we've got, we can see large numbers of people, most of whom are apparently young and most of whom, at this moment in time, absolutely, definitely it is all peaceful. stay there, susan. we'll get back to you shortly if there is any action so to speak. i want to bring in christian whiton, former state department official. seems to me this weekend is crunch time in hong kong. you have a rally now. you have a big protest meeting

tomorrow night. if they turn violent, there is always a possibility of a crackdown. and that would be, make-or-break hong kong, am i right? >> you're right in the sense if the p sb, if the paramilitary police from china invade the colony, invade the territory i should say, i would think that would leave the u.s. with no choice to end hong kong's treatment as separate trading customs territory. we would view it as part of china. that would really kill hong kong as a financial center but hopefully that point happen. stuart: true, true, wait a second, christian, that gives president trump leverage on china, he can say, deal with this humanely, and implying if you don't, the talks are off, right? >> right. that is what he has done calling very clearly for talks between the government and protesters and democracy leaders in hong kong. we should give trump credit for that. that is not something president

obama did when iranians took to the streets. not something lbj did when prague spring erupted in 1968. this is a good step president has taken. stuart: the ceo of cathey airlines has resigned. i believe he has resigned. that cathey has to toe the beijing line, stay out of politics completely. kind of ominous, isn't it christian. >> cathey is under pressure and huge amount comes from the main land. china said hand over the name of all of your crew lists. anyone on the crew lists been involved in the protests at least the non-authorized protests, that plan cannot come through chinese airspace. a dead head flight from jfk from hong kong was diverted to osaka, japan because the list was not provided in time. china is turning the screws financially. glass half-full view of that,

china will use economic coercion when it has it, and doesn't want to take the step of invading the colony, hopefully. stuart: they announced a big program of stimulus which gave a lot of money to the people of hong kong yesterday. doesn't appear they have been bought off. christian, thanks for joining us. see you real soon. yesterday we reported one of alibaba's cofounders buying a stake in the brooklyn nets for record amount of money. he is also buying barclays center. now the nets ceo he plans to step down. details on all of this coming up for you next. americans over the age of 65 reportedly more screen obsessed than millenials. really? i'm not so sure about that. we have -- not me. we've got the story coming up for you, i promise. ♪ there's a company that's talked to even more real people

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stuart: gone back up again. now we have a gain of of 209 pos that. is modest. gain. now this, americans elderly are more screen obsessed than younger people. i don't believe it, but tell me, ash. ashley: according to nielsen, whether you want to believe it or not. stuart: i do. i live by them. >> seniors age 65 and over from that nearly 10 hours a day, looking at their television, smartphones, computers. that by the way is 12% more than americans age 35 to 49 and a third more than those 18 to 34. now a large amount of that, 10 hours, is 7 1/2 hours in front

of the television. stuart: television. ashley: television. stuart: all screens. ashley: not just smartphones. stuart: okay, okay. ashley: that is maybe where you may have been led down the wrong path. stuart: that fooled me. ashley: they spend nearly two hours looking at their smartphones, seniors. obviously seniors have more time on their hands. they're retired. spend a little time watching tv. they look, not that you would know anything about, but, that is the case. stuart: but. ashley: what is other interesting part of this poll, 18-34 hardly watch television at all. stuart: i know that. ashley: that is very interesting. stuart: my children, grandchildren, they have the tv screen, got them in the house, everything is on this, the way it is. kiss of death for my business. next case. sort out the chinese tech money coming into american basketball, shall we? alibaba, cofounder is expected to sign a deal to buy brooklyn's

barclays center. now the nets, because the nets play there, the nets ceo, he is going to step down. i take it he is stepping down because he was told to step down? >> he has worked there for gsc global, parent of the nets. all of sudden he is stepping down after this. he will manage the transition, something that we do know. we know, joe sy, bought the barclays center in addition to majority stake in the team as well. that is a pretty big investment for him. stuart: did the ceo who is out, manage the team or office manager type? >> he was office manager type. stuart: the team has not played very well. i can understand that change there. all right. i'm told they made the playoffs. ashley: you're thinking of the knicks. stuart: yes, my apologies to all basketball fans throughout the world. clearly i don't know what i'm talking about. i better move on. call this a rally. look at that. i know what i'm talking about

here. talk to me about money. i know all about it. we're up 244 points. the best part of 1%. wait a minute. are you worried about a recession? a lot of people are. if you are, where should you put your money? how do you play defense if you think you have got a recession coming? we'll answer the question momentarily. capital one, turns out staff pointed out security problems before the big data breach where millions of customers lost their information. nonetheless, capital one stock up. maybe they don't have much liability. we'll see about that. we'll be right back. ♪

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♪ should have known better with a girl like you i like everything you do ♪ stuart: i sing it all the time, i know i do. should have known better with a girl like you. leave it there, ash. show me the big board. all right. there is a reason why we're up 200 points on the dow, because, the ceo of bank of america fine figure in the financial business, the ceo of bank of america says, he says he sees no underlying signals of recession and consumer spending is up this year over last year. that's why you have got a nice up she goes. up 211 points. that what we dealt with.

up 211. let's suppose you do see recession coming down the pike. maybe you're worried about a recession. where do you put your money if you want to play defense? you think bad times are coming so what do you do with your money? i will ask peter mal u.k., creative planning ceo. that is why he is on the show. he will tell us how to play defense. peter, tell me, where do i put my money? >> i think if you're, if you look at high net worth investors, they're goal oriented. 9/11, tech bubble, 08-09, none of them came with a nice little warning sign ahead of time. they happened for difficult reasons than all the things everyone has been talking about over the last week. if you look at an inverted yield curve. it is not a great indicator either. someone goal oriented always assumes there will be a recession. there will always be one. we don't know how long it will take. stuart: i got it. you tell me now where to put my

money those folks five-year or plus in equities. get major pull back, recession they consider it tremendous opportunity because they have a long time horizon. short term money, going into bonn, accepting lower yield, you need income or now, you don't have enough equities income will meet your needs, need it next few years, it doesn't matter stocks look more attractive in the environment than bonds. you have to be in a spot where you can access that capital. it really comes down to that. accepting that the dow will be at 30,000 one day. we don't know when it will be, there will be recession one day, we don't know where it will be, smart people are always planning that way. they don't care the yield serve inverted five minutes couple days ago. they are always in that position. stuart: which kind of stocks? a lot of our guests said put it into high dividend paying stock. what do you say to that?

>> i, i mean, i think argument there is the dividends are more than the yield on bonds. so that, when you get bonds approaching zero, dividend-paying stocks start to look attractive. i think that is true. it starts to create a lot of interest rate risk inside of a portfolio. so our approach is still to be more diversified. we like dividends. we're not going overweight that part of the portfolio. you still have a long time horizon. we're looking for total return from that side of our clients. stuart: you're telling me, no change? i mean if i'm worried about recession down the road, you're not telling me i don't know. keep most money equities stocks, put some into a bond fund, get at, get cash real fast. that is no change to me? >> i'm telling you people trying to predict recession, move money around in anticipation of it, are far more likely to wind up losing money than somebody who just says, something is going to happen at some point for some

reason, i need to be prepared for it. i need to be in a position to take advantage of it, rather than try to navigate my way around all indicators that are likely worthless. stuart: i am 71 years old. i have money in the market. what am i going to do? i have a short time horizon, i don't know how long i'm going to live. i don't know when i will retire? i can't look five, 10-years, down the road, next year, the year after, what will i do, peter? >> i don't think that is true at all. you have a time horizon well over a decade. that is only if you're thinking about you, not whoever your other beneficiaries are, in which case you're talking multiple decades. you need enough to save to get you through a few years. if we have recession, most recessions don't last for five years or two years. they last for seven months or 15 months. i bet you have, you can set enough aside to make sure you're good in an area like that. while the stock market is down one in four years. over 10 years it is down 2% of

the time, you put long term money, five-year plus money over there your time horizon is long. a lot of people in the 60 es and '70s think the time horizon is short. not really when you will retire, it is how long you will live, what is happening after that, dictating your time horizon. we always have equity bias for that reason. stuart: i take your point. i thank you very much for your confidence that i will live at least another decade. we'll see. peter, thank you for joining us. we appreciate it. thanks a lot, sir. >> thanks for having me. stuart: apple, will add jobs in america? >> 20,000 jobs by 2023 their total employment is 90,000. they will take the footprint to 2.4 million. that includes relationships with suppliers as well. stuart: 2.4 million in total? >> in total. not just direct employees. some jobs will be, they were announced earlier in san diego. labs and research. they will have engineers in seattle. a lot more opportunity, to your

point earlier, this is definitely, they have been caught up in the trade war conversation. it is part of that narrative of moving, shifting things around, seeing the supply chain around. figuring out other ways to do things. stuart: president trump leaned on apple, clearly, bring some of that cash back here. employ people here. looks like they may be doing that. >> absolutely. stuart: wonder what apple employees think about bending to trump's will? ashley: probably not thrilled. stuart: okay. protests in hong kong, yes, it is happening right now. susan li is there. i can see she is on camera. we are just moments ago, protesters could be heard singing, is that right, our national anthem? you heard them singing the american national anthem moments ago? >> that's right. they're playing it on loop. the american anthem was pretty loud and prominent throughout the rallies and protests here in downtown hong kong. this is the financial heart of hong kong. this is the road which is

basically anyone ever lived here, this is one of the main arteries to the financial heart. you're looking at mandarin oriental hotel, also hsbc towers. right beside it, also the home of the wealthiest man in hong kong. he is also the most respected businessman in the city. so there is also symbolic as well, with these rallies taking place and these protesters wanting to, want their freedom, want the right to pick their leader. they also want extradition bill killed. that is more after microcosm of a bigger issue, they feel their rights and freedoms are dissipating quickly, much faster than what was promised to them in 1997 during the hanover from british rule to chinese rule. here are a look at some posters they have tonight. power to the people. stand with hong kong. they're asked, reiterating, one country, two systems promises that beijing made to the city of hong kong, the people of

hong kong. they will be able to keep their rights and freedoms for 50 years after 1997. there is a big rally taking place, big rallies taking place this weekend across hong kong. on saturday night we're expecting 300,000. that is what protesters are telling me in terms of numbers they're expecting on saturday night in kowloon distribute. sunday, another one big one in downtown, hong kong financial part of it. that will be from here where we are now. that is called central, all the way down to causeway bay. the numbers so far, don't forget these type of marchs attracted one or two million last time they were called for. this time around they're still looking for a beg turn out from the people of hong kong. also i want to point out, i was asking them, what are you chanting? they keep saying the same thing, we are a new generation, a new era. most of these protesters are pretty young. this is a new era in hong kong. we have different values. not just money. not just capitalism. we want our rights as well.

we'll keep and hang out here, yes the rallies and speeches might be over, don't forget, some clashes taken place with the violent confrontations with police and tear gas being lobbed have taken place after speeches are done. you have some of the say protesters are hanging around, maybe the police go up and confront them. we have seen that take place before. let's hope it doesn't happen tonight. we'll hang out here to make sure. stuart: hang in there, susan li. we'll be back shortly. thank you, susan. congresswoman rashida tlaib will not travel to israel. she and ilhan omar were previously denied entry. then israel decided to give talib a visa to visit her grandmother. now she says she is not going. we have the story for you. president trump says he want to buy greenland. he talk the about it, citing rich natural resources, iron

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stuart: really have a rally. better than 1%. up nearly 270 points. you have it right there, bank of america ceo says he sees no underlying signals of recession. when he said that, the market went straight up. michigan congresswoman rashida tlaib says she will not visit her grandmother in the west bank, despite getting clearance for a visa from israel, she says no, she is not going to go. matthew brodsky is with us.

matthew, if i were the government of israel i would not let them in because these two members of congress are in the bds movement, boycott, divest, sanction israel. what is your reexecutive? >> that is exactly right. the bds movement is not above criticizing movement for its policies. it is anti-semitic movement is designed to undermine and remove the jewish state to have a palestinian state. the argument from their side, pro-bds movement is really a trojan horse. what i make of this, it is remarkable to the extent of the arc of the story has changed just overnight. israel is of course a democratic nation and a country of laws. it has a law in 2017 that says, if you support it, this bds type movement, you cannot be allowed in. israel was clear that rashid talib could come to visit her grandmother who lives there on humanitarian grounds if she made

that request and decided, and said that she wouldn't participate in those type of, those type of things. now, israel immediately said yes. the fact that she says, that she is not going to come now lays bare the fact the trip was all about agitation. you can see that according to the sponsors of the trip, who was paying for the trip, who was supposed to be their tour guide. that is really telling, which changes the arc of the story completely. stuart: what do you make of this bds movement and the presence in the american congress? more to the point, its presence in the democrat party which has a lot of jewish people voting democrat and yet you have these bds movement also within the party? what is going on? >> this is, this is, a crucial debate that is actually occurring amongst american jews amongst the pro-israel community. what it seems, trump trump and

netanyahu understand the bipartisanship that used to exist in congress, it no longer exist. israel is the republican issue. they are pro-israel. democrats are sliding in the direction, we can see, they have been unable in the house to condemn anti-semitic comments from ilhan omar or rashida tlaib. that is the direction it is going. the american pro-israel community is a little split and divided. they think that can be reversed. doesn't appear, there is no indication that is really the case. so, it seems like a wise decision on netanyahu's part they have to protect their state as a nation-state. these people who are detractors, don't believe in notion of a nation-state to begin with. that is a dangerous proposition if you're israel and security is your number one concern. stuart: is this bds movement any

way successful that you know of? >> it had success, but really the remarkable extent even, i say even european countries have noticed it is undermining their own idea of what the peace process is supposed to do. it is good that there have been anti-bds movements here in the united states and it has been very successful. also on a state by state level. and i think that bodes well for israel's future. the mess that is on the left side of the political aisle right now is something that democrats are going to have to deal with, you know internally. we'll see if that happens. stuart: matthew, thank you very much for joining us today. pleasure you being here. thank you, sir. portland warned people to stay away from the riverfront section tomorrow where antifa and the proud boys are holding rallies. could turn violent like the antifa rally did in july. you're watching it on the left-hand side of the screen. we have a former member of

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stuart: bank of america ceo did his work, didn't he? he sees no signals of a recession. ashley: excellent. stuart: when he said that the market went straight up. it is still going straight up. now we're up 283 points. 25,863. all right. we like it. potentially wild weekend coming from portland, or oregon, proud base, far right group has a rally. antifa, far left, also has a counter rally. obvious fears of violence. portland move ad plan 5-k run to avoid the confrontation. portland is telling people, avoid downtown. gabriel is with us, a former antifa member who saw the light. all right, gabriel, last time around the mayor of portland, i think his name is ted wheeler, he did not forcefully condemn antifa's violence. what is he going to do this

time? >> honestly the clear difference way he was acting then, and acting now. he is finally taking the threat of antifa seriously. i wish he had done that a few weeks ago, when you don't take antifa seriously, people get hurt like andy gno averagely attacked by antifa all those times ago. what needs to happen, i want to see the people who attacked andy gno behind bars. i want to make sure the mayor allows police to do their job. stuart: well, will the police be allowed to do their job? last time they took a very much hands off approach to the violence? i remember seeing andy gno, actually, being savagely beaten by antifa people. the police didn't do anything. i don't believe they have prosecuted anybody yet either. >> i don't think anyone has been arrested. they say they're looking, the mayor said there is going to be arrests soon but we'll just have to wait and see about that. one thing to remember, where is

the violence coming from? it is not coming pro a void. it is encouraged by a lot of different people in the mainstream media. stuart: wait a second. tell me more about that. >> sure. stuart: you're saying, laying the charge out there, that people in the mainstream media are encouraging antifa violence. give me an example. >> sure. just last week, for example, on msnbc one of their panelists was encouraging people to grab pitchforks and torches march to the home of trump voters this is straight out of antifa playbook. this is embarrassed one of the things i did when i was antifa. i marched to home of ceo and berated him with a lot of my antifa friends because we hated him. the panelist took a step even further, telling people they should carry weapons. next time there is conservative attacked simply for their political beliefs the left is going to own it.

stuart: can you tell me you left antifa? >> the reason i left antifa, because i started asking a lot of questions. and, they didn't like that very much. it was, thanks to the leadership institute. i met somebody from the leadership institute i started asking questions to them. they responded, instead of calling me names, instead of intimidating me. i work for the leadership institute. defend them against extremist violence on college campuses. stuart: one of the people approached by or harassed by antifa, this who go up close to them, they don't bathe. that they smell. i don't mean to be too graphic on this program but is that true? >> i can't speak for everybody but i did know a few. stuart: you did? >> yes. is not a complete falsehood some of them don't bathe. stuart: i described them as far left. are they far left communist

trotskyites or communists? >> antifa is very interesting, a lot of them as a group doesn't stand for something. they stand against something. that being said a lot of different factions exist. i knew a lot of people who were socialists, communists, other groups you wouldn't think were part of antifa, animal rights groups or pro-environmental groups. it is a lot of different groups mixed together. gabriel, thanks for being so explicit. we appreciate it, sir. gabriel, thanks for joining us. >> thank you. stuart: got a question for you, what do 2020 democrat front-runners have in common. besides free handouts and socialist policies? they're all multimillionaires. find out how much they're worth after this. thousands in hong kong on the streets again. the summer of protest continues. president trump says he is concerned about a violent crackdown on the demonstrators. whatwhat what happens if the tas

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experience the luxury desire of a full line utility vehicles. at the lexus golden opportunity sales event. lease the 2019 rx 350 for $389 a month for 36 months and we'll make your first month payment. experience amazing. stuart: it is 11:00. check that big board because this is a solid rebound to end the week. i don't know how it's going to close but right now we're up 334 points, 1.33%. the market took off, i'm guessing about 20, 30 minutes ago, when bank of america's ceo said there's no clear signal of recession. at least not that he sees. when he said that, the market went up and right now, we're back to 25,900. now this. how many times have we heard presidential candidates rail against the rich? how wicked they are, how unfair

the whole capitalist system is. if you've got money, they're going to take it off you. what gross hypocrisy. all of the democrat frontrunners are multi-millionaires. repeat, multi-millionaires. forbes dug into it and here's what they found. joe biden, $9 million. elizabeth warren, $12 million. bernie sanders, $2.5 million. kamala harris, $6 million. they are rich by any standard, and none of these four made their money in business, the way you and i make our money. oh, no. they're government people and they want to run the government and take money off other people. it is senator warren who wants every big company to get a license from the government before they can do business. that's okay with her. senator warren made her money while working for the nonprofit harvard university. it is senator sanders who used

to rant against millionaires and billionaires, but he made his millions as a writer and real estate investor. he now only rants against billionaires. it is joe biden who calls himself middle class joe. a $9 million net worth puts him firmly in the upper class. senator kamala harris, she married a very wealthy lawyer in the year 2014, as "forbes" puts it, she brought the clout and he brought the money. they are the frontrunners. one of them is likely to be the democrat nominee for president and no matter which one it is, he or she will rant about income inequality, taxing the rich and reforming capitalism. sell your houses, bernie, and give some of your profit to the poor. write a check to the treasury, joe, because you used a tax loophole to get rich. pay the wealthy -- the wealth tax, senator warren, it's your proposal. and senator harris, you own houses in los angeles,

washington, d.c. and san francisco. you need three? there's a homeless problem in california. they will do none of the above. rich socialists never do. it's your money they want. the third hour of "varney & company" is about to begin. stuart: okay, it was a rant. it was. it was snarky. it was a rant. i want some reaction to it. no better person on this planet to react to what i just said than steve hilton, host of "the next revolution" on the fox news network. it occurs to me, you and i were probably brought up with people like this. rich socialists. so here's your chance. sound off. >> well, first off, that was so great. one of your best, i think. i keep the rants coming, as far as i'm concerned that was terrific. i especially loved the line about kamala harris and the

homeless problem in california. i relate to that. all right. so all of this reminds me of something you and i will remember, a great line from margaret thatcher amongst many. she said something very simple and true which is you don't make the poor richer by making the rich poorer. very basic point. yes, we can agree that we want to lift people up, we want to give them opportunity. it is true that there is a problem of inequality. depends how you measure it, of course. but none of those problems are going to be solved by trying to bring down the people at the top and take their money away. you actually want people to have that incentive to get rich so that they create businesses, they generate the wealth, that then can lift everybody up. that's been the story of capitalism all along. these people just don't understand it. it's so simplistic what they're saying. all we need to do to solve all the problems is take some money off these people. by the way, they're part of the rich, as you say, and give it to everyone else but there's not enough money to go around. they don't understand the basics of how a capitalist economy

works. stuart: did you know some people confuse you and i because we both have a british accent and both share somewhat similar politics. i'm going to move on. i have to ask about hong kong. there's a rally going on right now and an even bigger one tomorrow. this could be crunch time for hong kong because if these rallies turn violent, it is possible that they will put down violently and that will make a big difference. what do you think's going to happen? >> i think there's a very high chance of that because i think xi jinping doesn't really care about hong kong. it's a problem for him. he would much rather that all that financial services industry go to shanghai, part of mainland china. he's got much more control over it. i relate to this very personally. i worked in hong kong for a year, just before the handover. i knew the previous government. chris patton was my boss back in the day when i worked in the conservative party headquarters.

i will never forget coming out of some great party in the early hours, literally watching the chinese military vehicles rolling into hong kong to take up their positions. and i thought you know, this isn't going to end well. it looks like you've got to that point now where the hong kong people are sick of the betrayal of the promises they were given about their independence and freedom. i don't think it's going to end well. i don't think it's going to peter out. and i don't think the chinese are going to tolerate this kind of dissent because it's a terrible example to the rest of the country, as far as they're concerned. i'm not optimistic, frankly. stuart: that will make a big difference to the trade talks if it turns out as we think. steve hilton, thank you very much, sir. see you on sunday night on the fox news channel. >> thanks, stuart. stuart: let's get back to your money. nice rally going on. look at this. the dow industrials are now up well over 300 points. we are back above 25,900. the market is up today to round out a pretty bad week.

john deere tractor guys, it's actually deere & company is the proper name nowadays, reported their earnings this morning. sales down. their chief executive is blaming it on the trade war with china. farmers putting off buying their tractors because of uncertainty, but the stock is up because deere said we are doing very well in latin america. maybe that makes up for it. look at ge, general electric. their stock rattled by that bombshell report from the whistleblower who did bernie madoff in. now, what's -- ge's ceo, chief executive, he's got to respond to this. ashley: he has to. because markopolos was making incredibly strong statements, calling it a bigger fraud than enron, for one. ge fighting back, calling the allegations of accounting fraud as absolutely meritless. this from ceo larry culp of ge saying look, we will always take any allegation of financial misconduct seriously but this is market manipulation pure and

simple. he goes on to say mr. markopolos's report contains false statements of fact and these claims could have been corrected if he had checked them with ge before publishing the report. he also claims, you know, he was working with hedge funds that were shorting ge and gave them this report prior to going public. stuart: didn't he put some $2 million of his own money? ashley: that's the allegation. stuart: he put, the ceo put in $2 million into ge's stock. ashley: he did, as a matter of good faith in the company. so as i say, remarkable claims, ge fighting back hard because when you are accused of such a thing. let's not forget markopolos was the one who for years said bernie madoff was running a ponzi scheme. stuart: i think this goes to court because claims have been made which have affected the stock and he gave that report, markopolos gave the report to a short seller, someone who wanted the stock to go down. ashley: his claim was ge was hiding nearly $40 billion of losses in its insurance unit.

that's what it boils down to. stuart: that will be checked in court. almost guaranteed. an amazon promotion for their hit show causing a stir in a california gas station. too many people showed up to try to score some really cheap gas. cops had to get involved. we will tell you the story in a moment. later this hour, we have one of the organizers of the hong kong protest joining us live from hong kong. what can we expect this weekend? we will ask. that's coming up next. apple making america great. they have announced they are going to create 20,000 jobs in america over the next four years. more "varney" after this. ♪ ♪ all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument,

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stuart: we've got a fast food

shakeup. chick-fil-a unseated starbucks as the chain with the best brand intimacy. what is brand intimacy? it means customers feel more emotional, nostalgic and comfortable at chick-fil-a compared to other restaurants. by the way, dunkin' donuts -- dunkin', that's the proper name, beat out starbucks as well. dunkin' is number two. we thought you would like to know. apple are going to create, they say they are going to create 20,000 new jobs in the united states in the next four years. okay. let's bring in our apple guy, dan ives, equity research managing director. you love the stock. you've got a price target of $245 a share within the next year. it's $206 right now. make your case. >> they are the poster child for u.s./china trade battle right now. it comes down to the iphone cycle. you have nine million active iphones. about a third of those upgrade over the next 18 months and that's really the key to apple's

story. i think it's a $20 to $25 overhang right now because of the china issues. fundamentally, some of the parts, this is a stock that goes much higher from here. stuart: you think apple is responding to pressure from president trump to get these 20,000 new jobs in america? are they bending? >> look, this has been consistent with what cook said from the beginning when they brought back cash from overseas. they are also investing about $30 billion in capx. i think the supply chain right now, they are caught in the crossfire. in terms of the u.s., i think they are going to significantly invest in ai and a lot of other initiatives in the u.s. right now it's a balancing act for them. no doubt they are in the crossfire and i think this continues to be sort of a focus for cook. stuart: $206 now, $245 is your target. what's the time frame? within the next 12 months? >> next 12 months. i think we get through this, go into this launch cycle. it's going to be a pretty stable iphone release.

even though china is going to be a roller coaster and may need hand holding. stuart: just about anyone invested in stocks has a piece of apple, i think. you are giving them good news. however, let me bring up the subject of uber. you are smiling because you know what's coming. last time you were on the show, you said that uber was at $42 a share. last time you were on the show, a month or so ago. you said it was going to go to $60. since then, it tanked all the way down to $34 where it is now. what do you say? still going to $60? >> i continue to stick with that, both these over the next year. right now, ride sharing, if you look at lyft and uber, these are stocks that if you look at the performance coming out of the gate, it's been a glass half empty. they have not executed to the point right now to give it street cred. this is still a name, where i ultimately view the penetration level of ride sharing, this goes much higher but no doubt right now they have a lot of heavy lifting ahead. it will be a climb to get street

cred back. stuart: are you sticking with 60 bucks a share within the next year for uber? almost a doubling of the stock. >> no doubt. you go back six, nine months ago, we were bullish on apple. many thought we were crazy. fundamentally that stock has rebounded significantly. uber is a name, if you look at ride sharing and execution second half into next year, that's a name we can justify a $60 price. stuart: uber's lockup ends i think november 16th. that means early investors who got into uber very early can sell their shares come november 16th, if they wish to. that could be a negative. >> well, that's why -- the perceived sort of tidal wave of selling is also pressuring these names ahead of that. i think that's one where that continues to be like a lot of ipos, a sort of overhang. i think we get through this into next year, i think uber will rebound. stuart: you got apple to $245 and uber to $60 within the next

year. >> and microsoft, your favorite, which i continue to view as a name, that's the key way to play cloud, a name that goes 20% higher from here. stuart: 20% higher. that would be taking it close to $160. >> i think that continues to be the cloud game. there's a share shift going on between aws and amazon to microsoft on the cloud side. that's a re-rating story which continues to be one of our favorite names. stuart: you can come back on any day you like. if it gets to $160 i'm retiring. you can have the job. want it? dan ives. thank you, sir. appreciate it. all right. check the markets again, please. we have come back a little bit. we were up well over 300. now we are up 277. we are up 124 on the nasdaq. that's a nice gain indeed. 1.5%. retired nascar legend dale earnhardt jr. and his family survived that fiery crash, plane crash in tennessee. his plane slid off the runway after it landed, burst into flames, as you can see. everybody on the plane made it

off safely. earnhardt's wife and very young daughter, they were hospitalized. earnhardt was scheduled to be in the broadcast booth for saturday's race but decided to take the weekend off. ashley: the family dog was on board and survived. they all survived. stuart: wouldn't think so looking at that. the famous car from the classic movie, the 1980s movie "ferris bueller's day off" is up for sale. we will tell you how much it's going for after this. ♪ there's a company that's talked to even more real people

than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room.

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who do you love? a car! stuart: ah, yes. that is the 1961 ferrari 250 gt, icon from the movie "ferris bueller's day off." a replica, repeat, replica, one of three built for the movie, just sold at auction and even though it's a replica, remember, it sold for $300,000.

remember he called it the choice car? remember that? that expression stuck for a long time. come on, let's bring in jeff flock, our own guy. he's at a very exclusive car show in pebble beach, california. he's got an earlier model of bueller's famed ferrari. is this the real thing, jeff? reporter: no. well, that's the real thing, yes, absolutely, but that 300,000 is chump change, stuart. i tell you, look at this car here. this is a ferrari, 1958. this goes for between $11 million and $13 million tonight at auction here at gooding and company. feast your eyes on that. don't crash that one through the wall. this is a bugati, by the way. i did not know that was made by the french. this is a 1936bugati, about between $1.3 billion and $2

billion. i tell you, these are the other ferraris that look like the ones you saw. there are new cars, old cars. look at this jaguar here, a '61 jaguar e-type. is that a beauty? you can race in this one. that's a race car. that's another jaguar from the '60s. that's an old mercedes over there. i want to show you a couple from your youth. that's a gullwing. look at that gullwing. that's a '54 gullwing. now, getting back to your youth, this is a renault. this is something they call a skiff. look at this. this is unrestored. this is made out of wood. you can knock on wood. this is a great car. but the one that really, that i'm sure you rode in at one point is this guy right here. this sells for about $1.5 million. this is a 1911 rolls silver ghost limousine.

i can see a young varney in the back of this, the driver up front. you could get it again if you like. stuart: you know what you're doing, flock? you are guilty of ageism. you are making fun of an old guy. i think it's very funny. i really like it. actually, i really do. thanks, jeff. i know you will be on throughout the day because you have good stuff right there. see you later. jeff flock, everyone. let's update, serious stuff, an update on those three suspicious packages. pressure cookers, they were, found in the new york city subways. they have given the all-clear, the new york police, but they are looking for this man on your screen right now. he's a person of interest. the police just tweeted that picture moments ago. that's who they are looking for. check the big board again, please. we are up 277 right now. are you concerned about a recession? that is what sent the market down most of this week. however, bank of america's ceo says he sees no signs of

recession. when he said that, the market went up. the latest from hong kong. protesters holding a big power to the people rally today. we've got a spokesperson for that rally joining us live coming up in a moment. and the iranian tanker held, then freed in gibraltar back on the move this morning. there it goes. more after this. ♪ -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

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liberty mutual customizes your car insurance, hmm. exactly. so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ stuart: we're up 267 points and if you look on the left-hand side of your screen, we've got all 30 dow stocks on there. 28 of them are in the green. there's only two losers, boeing and mcdonald's. susan li, come in please from hong kong. she has a spokesperson for the rally that's ongoing with her. susan, it's yours. susan: yeah. okay. we had thousands gathering here at the financial heart of hong kong, extending the rallies and protests into the 11th straight week. one of the organizers is a student leader as well in this ongoing battle for your rights. tell me why you're doing this. maybe our american audience doesn't understand what exactly

these protests are about. >> we are fighting the communist party. we are fighting mainland china. we are trying to gain attention and trying to seek help. we want the u.s. congress to try to pass the human rights and democracy act as soon as possible and to sanction those officials who oppose hong kong people's freedom and democracy. susan: what about those like president trump who say it's an issue for china to deal with? >> i believe that hong kong and america has a lot of interest in hong kong and that's why i believe americans should stand with us to support hong kong, try to contain china. china is now rising and i believe that president trump and many congressmen and senators in congress actually believe that. that's why you should stand with

hong kong people. susan: also, president trump says he hopes that president xi of china will deal with the hong kong protests humanely because a number of times yesterday, are you concerned of any heavy-handed tactics by beijing? >> actually, we do not believe in the communist party. the communist party is wicked and evil. that's why we won't negotiate or try to have a diplomatic situation with the party. we don't have faith with them. because what happened in tiananmen square in 1989. the communist party just tried to slaughter and suppress. susan: thank you so much. we have big protests and rallies planned for this weekend as well. we are looking for close to 100,000 or so on saturday night. they are looking for maybe double, three times that amount in the central part of hong kong once again with the rally being called on sunday evening. we will keep a close eye on it. back to you. stuart: that was a remarkably

direct young man, spelling it out very precisely. i call him a brave young man. thank you very much for joining us. ashley: wow. stuart: flat-out denunciation of the communist party, regarded as evil and we are not going to negotiate with them. ashley: wicked. stuart: wow. get it all on "varney." you really do. now we have word the protesters in hong kong are staging, what is it, a mass withdrawal from banks? ashley: this is another tactic encouraging as many people as possible to withdraw their money from their bank accounts and convert them into u.s. dollars. they are trying to send a message that -- the message is to show the semi-autonomous island is more than just a cash source. it's very hard to determine how much money is being taken out. one report says as much as $9 million but that's not been verified and the banks in hong kong are saying they have enough cash to meet the growing demand. another example of the type of protests that are going on is multi-faceted. this is just another one.

more symbolic than anything, but withdraw your money and convert it into u.s. dollars. stuart: i want to go back to what that young man just had to say. because that was really dramatic. i have not heard any protester spell out so much and so clearly their opposition specifically to china's communist party. he called the communist party evil and they would not negotiate with them. he brought up tiananmen square because we are worried about a repeat of that in hong kong. he said that was a slaughter. and they were evil and we're not going to negotiate with them. that's dramatic stuff. ashley: clearly this feels like it's been going on for ten weeks now. there's no sign of it petering out or slowing down. stuart: i think it's crunch time this weekend. two major protests are going to take place, one on hong kong island in the central district, and they are going to be sizeable. if they end in violence or if the authorities lose control, it is quite possible there will be

a bloody crackdown. i'm not predicting that but that's a possibility. ashley: we have seen the army, the troops and vehicles on the border. it's still being said the hong kong police will be able to handle this. hopefully we will not see the army bringing, you know, coming in. that's something we don't want to see. stuart: for sure. staying on china, because they, the beijing government, they are slashing interest rates, introducing a big stimulus package for small businesses, trying to get their feet off the ground. it's a stimulus package, they have put it in place. they announced it earlier on today, as a matter of fact. the chief economist at tdlonbar is with us. looks to me that with a stimulus package like that, china is getting hurt more than we are getting hurt. what say you? >> i think they are getting hurt, no question about that. the whole world is getting hurt, really. but to think this is just a static event, in other words, that it starts and ends with china and somehow the u.s. is immune from that, is a mistake.

because the slowdown in china means a slowdown in germany, means a slowdown in the emerging markets and the one thing we learned in 2008 is the world is very interconnected. to try and look at one country versus another and say well, x percent of u.s. exports go to china so how much does it matter, it's a very interconnected world. so the imf i think had a report saying something like 11% of growth last year in the world came from china. you slow that down, you slow down the world. it will slow down the united states. stuart: but they are doing this because they have a trade dispute with us, also, they don't want this hong kong situation to spill over into mainland china. trying to make it prosperous again is one way of stopping it. >> well, the basis of the communist chinese party's legitima legitimacy post-mao but certainly today, is to deliver to the chinese people, growth.

you are absolutely right in that regard. stuart: were you shocked, you heard that, i think you heard that young man. you certainly heard what we were saying about him calling the communist party evil, not willing to negotiate with it, that was pretty strong stuff. that surprise you? >> it doesn't -- well, it does in the sense the gentleman is being very public about it. you know there's a lot of chinese, communist chinese, mainland china, whatever the right way to call it, i'm old enough to simply say red china but i know that's not the correct way to say it. stuart: the young man was asked what do you think of president trump, what should president trump do and the young man said he wants president trump to support the protesters and stand with them. you think he will? >> well, that puts trump in a hard place. because xi asked trump, not so much asked him, said if you want to keep talking trade, you've got to back off from a public -- stuart: got to treat hong kong humanely was his expression.

>> yeah, but xi told trump you have to shut up about hong kong if you want us not to leave the table. to this point, trump has kind of been acquiescing to that. whether he will continue to in light of everything else is another story. no one can really forecast what trump's going to do. but in terms of what's been done so far, i think trump has been kind of quiet about it. stuart: i think it's a crunch time weekend with the big protests suggested. let me talk recession. that's more up your street, i believe. we have had the markets sell off this week in part because of the yield inversion and all that jazz, the possibility of recession down the road. this morning, bank of america's ceo comes out and says he sees no signal of a recession. where do you stand on this? >> i think the consumer is slowing down. i think that when you look at a number of -- stuart: really? >> yeah. when you look at -- stuart: retail sales were pretty strong. walmart taking a lot of money. >> they are, but when you look at those retail sales numbers and you take a few things out and you look at the dip in june versus the up move in july, a

number of categories spending was basically flat over the last couple months. look, there's no recession on the horizon at the moment. okay? stuart: the horizon being? a year? 18 months? >> the next several months, let's say. stuart: several months. this calendar year, you don't see a recession this calendar year but you think the risk is on after that? >> the risk is certainly on after that, because look, the global economy is slowing. that hurts earnings. earnings hurts the equity market. the equity market goes down and the household sector in this cycle is much more heavily invested in equities relative to real estate than at any prior time except for the late '60s and late '90s. so it's not surprising, therefore, that the consumers we saw in december is very very very sensitive in terms of the discretionary spending to movement in the equity market. so july was july, but we'll see what august and september

spending looks like if the equity market remains on a rather fragile footing. stuart: all right. we'll take that. thanks very much. see you again soon. thank you. you got to watch this. there's a special promotion for the amazon prime show called the marvelous miss maizel. we will tell you why the cops had to break up crowds at a california gas station because of that. plus president trump says forget what you hear in the media. the business community wants four more years. you hear what he had to say at the rally last night after this. ♪ imagine traveling hassle-free with your golf clubs.

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firm, says the whistleblower statements are reckless, dishonest and secretive. they turn around and praise ge's stock saying it is a cornerstone of american industry. the stock is now up 8%. president was in manchester, new hampshire last night for another rally and this part stood out for me. about a recent exchange with anonymous businessman in the white house. roll it. >> i had a businessman the other day, one of the most successful guys in the country. i have never liked him. never liked him. he never liked me. i never liked him. i see him in the white house. i said what are you doing here? he said i'm working to make sure you get elected. i said you got to be kidding. you don't like me, i don't like you, what the hell is this all about? he said that's right, we've had our differences. i haven't liked you, but to be honest with you, mr. president,

i have no choice. i said you're right. you're right. first thing i've ever heard him say that i agreed with. he had no choice. stuart: he's got no choice. that's the first time i have heard an american president relate to a crowd quite like that and get the crowd going. i have never seen anything like that before. the man on the right-hand side of your screen is business owners for trump founder. the president helped you out, i think, right? >> absolutely, stu. that was tremendous. absolutely tremendous. the bottom line is the economy's rocking, business owners love trump, america's phenomenal, more people employed than ever before, the confidence factor has never been like this before. business owners are excited. we love president trump. we love what he's doing and to keep america great, keep the economy rocking, to keep consumers confident. stuart: the businessman the president was talking about did not like the president, did not love president trump, disliked him, for whatever reason, but he's going to vote for him and

try to get him re-elected because of his policies. do you happen to know who that businessman was? >> he hasn't released it yet. stuart: i would love to know. ashley: we all do. stuart: what about scaramucci? someone who was formerly with the president, now very critical of the president. what do you make of him? >> one word, stu. loyalty. i'm a man of loyalty and i believe scaramucci made a very bad decision. america is tremendous. entrepreneurs and the fabric, what's woven through american entrepreneurship, the american dream of people feeling great, scaramucci is trying to make a ride. i don't believe it was a great decision by him. i'm for trump. i'm pro-american, pro-entrepreneur and business owners and the employees and people who have more money in their pocket. that's the bottom line. i have heard talk about the recession. i heard in the show all morning. that's just the media trying to bring up negative connotations

about the economy. stuart: the people in your organization, business owners for trump, they are small business operators, right? small to medium size. they are not fortune 500 companies. you don't have their ceos and chief operating officers in your group, do you? >> there are two of them that they want to keep their names kind of not released publicly yet, but they both have employees, about 5,000 employees. they are the infamous people that say we love trump, we just don't say anything publicly yet, but our company and our stocks are rocking. stuart: what response do you get, when you talk to ordinary people and you say look, i'm for trump all the way down the line, what do they say? >> they kind of look like this to the left and right and go so am i. they are just kind of afraid to say the truth. because you have to have a few, you know, you got to be a little challenged not to really promote president trump, promote america. there's never been the confidence in america. people love america. stuart: i'm going to call you a

trump supporter and america supporter. great to have you on the show. business owners for trump. thanks for joining us. appreciate it. thank you. >> thank you, stuart. appreciate the time. stuart: sure thing. next case. a promotional event for amazon's marvelous ms. maizel didn't go quite the way planned. want to take me through this, ash? ashley: this is all about a campaign for the emmy nominations. they are up for 20 emmys. i don't know if you have ever seen it. it's terrific. the emmys are next month. this is campaign season. one of the campaigns was to take back the price of gas as it was in the setting of 1959 when -- where the show is set. so gas went for 30 cents a gallon. it was a promotional thing at various different gas stations across southern california. guess what happened to californians who pay an average four bucks a gallon? it went nuts. santa monica police had to be called in because the lines were backing up clogging traffic. they also did another thing.

movie tickets for 51 cents, manicures for two bucks, cupcakes for a quarter. but it was the gas that got everyone excited, cheap gas. stuart: it would. ashley: the police had to be called in but this is all good for amazon because this planned event has created all this free publicity. stuart: it is mrs. that's the official title. want to get that straight. aoc, alexandria ocasio-cortez played the race card. she says the core of trump supporters are racists. what will pastor darryl scott say about that? we will ask him. he's next. ♪ 2,000 fence posts.

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stuart: well, well, well. it looks like president trump has won a rare partial victory in court in california. good heavens. in san francisco, no less. from an appeals court, federal appeals court. ashley: yes. stuart: what's happened? ashley: you ever think you would say that? stuart: no, never. ashley: there was an injunction put in place that limited the trump administration from limiting asylum requests. now a federal appeals court has blocked that injunction. in other words, yes, you can limit asylum but there's a

catch. there's always a catch, right? the injunction stays in place in only those states within the ninth circuit's jurisdiction which of course includes california, but it does lift it for other parts of the country. stuart: i will call it a partial victory. it's very rare, partial victory. ashley: yes. california. what? stuart: congresswoman alexandria ocasio-cortez going after supporters of the president. listen to what she had to say yesterday. roll it, please. >> like all winning political phenomena, whether they're good or bad in your opinion, they rely on coalition building, so trump relied on a coalition and a core part of that coalition were racists, building a coalition with all sorts of other people that could be susceptible to racist views if they were blanketed and layered and made people feel good about not being a racist thing. stuart: come on in, pastor

darryl scott, old friend of the program. great to see you again, pastor. are trump's supporters, the core of the trump campaign, are they racists? tell me. >> absolutely not. in fact, most of the racism and in fact, all of the racism that i've experienced during this campaign has come from the left. once again, aoc proves that she is not the dispenser of wisdom that she tries to be. she's adopted the democratic party line of playing the race card because the election is drawing near but absolutely not. in fact, trump supporters go out of their way to dispel that racist narrative. but you know, we're not pushovers. we are counter-punchers much like the president is, but we go out of our way to dispel that racist narrative, no matter how much the democrats try to put it on us. stuart: pastor, can you define for me what you think is racism? can you define it?

>> to me, racism is when you feel that your particular ethnic group is superior to others, all others or any other particular ethnic group and then you also harbor hostility and animosity towards them for no reason other than the color of their skin or their ethnic background. stuart: it seems like the word is tossed around all the time these days, and has lost its bite. if everybody's a racist, then really, what does that really mean? you know what i mean? >> nyou know what's happening. america has somewhat grown numb to the shootings that at one time really alarmed this nation, but now, you know, we are amazed at them but we're not surprised about the fact that random shootings can happen at any time, in anyplace. but we're also becoming numb to these allegations of racism. it's getting more and more, like i said, worn out as a deck of cards in a penitentiary.

any time someone turns around, he's a racist, she's a racist and it's losing its sting, losing its gusto. stuart: pastor, i'm very sorry it's so short. it's a pleasure to have you back on the show. didn't we do a bro hug? we got it on tape somewhere. we will roll that. pastor darryl scott, always a pleasure. don't be such a stranger. i want to see you again real soon, sir, please. >> all right. god bless you. stuart: god bless you, too, sir. thank you. more "varney" after this. ♪

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so get allstate... and be better protected from mayhem... like me. ♪ . . stuart: look what is happening on the right-hand side of the screen, half hour ago we saw something remarkable on this program, an interview live, with a young prosters in hong kong? he was outspoken.

he described the communist party as evil. he would not negotiate with it. owe decided to call the tianamen square incident, pure slaughter. a brave young man on this program a few minutes ago. connell mcshane. connell: thank you, stuart, i'm connell mcshane filling in for neil on "cavuto: coast to coast." will the world's problems catch up with us, and what can the world do about its problems? we have comments from germany and china also we'll get into. if you look at polls, elizabeth warren is surging on the democratic side. president tru s