vice president obama's on stage first time with elizabeth warren. she will go after him. >> released social security benefit expansion plan this morning. lots to talk about. stuart: tax the rich. i got it. time's up. stuart, it is yours. neil: tax stuart varney. that is what they're all doing here. amazing, dump it on the rich. following on developments, trade back and forth, how many times you heard me say, you want to foe which way the markets go, get a headline what is happeni with the trade talks. more promisinghe look, earlier indications today were the chinese were bending and dodging. we're bending and dodging. we're making concessions. they're making concessions. we'll get into details of it. there are reports being disputed as well. they're trying to get things ironed out before they talk to one another very soon. it isn the details. right now good enough for 118

point gain in the dow jones industrials, which puts that not too far away from record territory. we can do that like this in this kind of market. blake burman at the white house to sort out rumors, everything here. bottom line, markets propelled own the belief, we're closer to something, setting a framework for something. i give it to you. reporter: neil, this is one of those days where you have to separate, put in one bin, what weigh know. you have to separate, put in the other bin, what is out there being reported in the trade spaces, maybe potentially a possibility. let's start with what we know, which is the act of goodwill, as it has been seen by china and what the u.s. is describing it as, delaying tariffs increase from october 1st, to october 15th and apparently an ag buy from china, will come with it as well. this is what a spokesperson for the commerce ministry said today. quote we welcome the goodwill by

the u.s. so far as i know chinese companies have begun to make inquiries about purchasing u.s. ag products. that is good, forward-moving sign. the president recognized it on twitter, saying it is expected that china will be buying large amounts of our agricultural products. the reason i highlight expected. it was expected china would do it before but necessarily didn't go down the road. what the president and chinese government are openly talking about. let's separate some stories out there that also caught the attention of the market. first the one with the "wall street journal" which said, citing chinese officials or chinese sources, that china kind of wants to separate the trade deal between trade and national security and move down the trade track, so things can be propelled forward on that end. that would make huawei an outstanding issue. as you know the u.s. team has talked about that as a national security issue.

so when we got treasury secretary steve mnuchin on the north lawn earlier today, i asked him if the u.s. views huawei in the national security lane or trade lane or both? this was his response. watch. >> i think as we've talked about huawei again there are national security issues associated with huawei and those are not things that that we are discussing. department of commerce looking for waivers for certain issues that are not national security. huwai, there are two sides to that. reporter: a statement from the commerce ministry of china seemed to push back on that. quote, we're not aware of a separate track. we repeatedly laid out china's position on huawei. it is hoped the u.s. will remove restrictions and sanctions on huawei, for continuro relations. that is one story. neil, as i know, the bloomberg story which said the trump administration, advisors are

considering an interim trade deal, that would be sort of a watered down trade deal. here is what i'll tell you on that you don't really see anyone right now from the white house or don't see anyone from the treasury department rushing to the cameras saying indeed that is the case. in fact when we spoke with steve mnuchin out here, when he was out here doing interviews today he noted how the president can indeed raise tariffs if he wants down the line. neil? neil: just to understand the president is for delaying raised tariffs until at the 1st of october? reporter: right. neil: that is the 70th anniversary of the communist state of china. that is something he is definitely doing, right? >> that he put out there on twitter saying a delay from the 1st of october to the 15th, raising 250 billion-dollar batch up from 5% to 30% that is the goodwill they're talking about. one thing to note about that,

the expected talks between mnuchin and liu he vice premier was supposed to be in early october. moving that from october 1st, to the 15th, to see how the talks go in washington, maybe see how they raise them or keep them at 25% for now. neil: grade job, buddy sorting that out. if we have anymore details we'll to back to blake at the white house. sorting this out there are more buyers than sellers. that is quick way to interpret this. i stress we have four hours of trading to go. "wall street journal's" greg ip. where are we on this? >> if you look at all the velopments we fairly characterize these as cease-fire in the trade war. this is notes much armistice as

peace. we're knot talking about stolen territory. you're talking about the president delaying steps he was going to take. talking about the chinese making some small goodwill gestures but i don't see here yet like material withdrawal sort of steps taken at each other. at this point things have stopped getting worse. too soon to say things are getting better. neil: i like that, things have stopped getting worse. i will steal that line, greg. the european central bank doing everything that president trump wants, our central bank, federal reserve to do, not only cut rates but add their own asset buying program here to prime the pump. what do you think of the reactions that the market seemed to have interpreted that, to telegraph that certainly the federal reserve will do the same, be forced to do the same, what do you think? >> keep in mind the reason the european central bank isn't doing things the fed is doing,

in europe the growth picture much weaker and inflation much lower. if i had to choose between our interest rates and our economy and their interest rates and our economy i would choose ours. that is the first thing. the second thing, even though the fed believes the economic situation here is better than europe's it cannot make policy in a vacuum and when the ecb moves the way it has that puts pressure on the dollar. that makes it harder for the inflation objectives. that is why the fed will go ahead give us another quarter point next week. unless you see a really dramatic deterioration in the growth, i'm not expecting i don't think most people are expecting i don't see the case for the fed to go as far as as the ecb has. neil: i don't even see the case for cutting rates at all. i'm an odd duck. >> neil, can i -- neil: go ahead. >> we had inflation number today, core number excludes food and energy, up .03% two month in a row.

we're looking 2.4% core inflation, highest over a year. idea we had three or four years ago sliding back to zero inflation or deflation, i think that is sort of off the table. if i'm the fed looking at data i'm feeling pretty good. i'm feeling like that the strategy they pursued this year was to stop tightening, make some tactical adjustments in recognitions of risk to the economy that is looking so far like a pretty good strategy. neil: yeah. i think we're trying to hard to follow people we shouldn't be following. we're using those countries, economies as the role model, right now we're the role model. things are twisted. but what do i know? >> i'm with you. neil: thank you very much greg. we have moody's managing director, what she makes of this. the president made it very clear in tweets, quite a few aimed at the federal reserve, listen you lunkheads, he didn't say lunkheads, something kind of like that, you have got to not only cut but get to the quantity

quantity that i saw under -- quantitative easing i saw under barack obama we see central bank doing although he was a big critic of it running for presidency but what do you make of that pressure? >> the fed responds what is going on in the u.s. economy and what is going on the u.s. economy has been growing at a fairly good clip, however, there are pockets of concern and one is investment. investment has been slowing. so the u.s. consumer really been carrying this economy and i think the fed might be a little bit concerned with the tariffs and inflationary pressures you might see the consumer slowing down. that is the balance the fed has to take into account whenever it makes its decisions. neil: when it makes a decision, presumably, next week to cut rates, is it your bet that it is quarter point? they won't do anything else? they certainly won't do kind of things that ecb is looking to do, buy up notes and bonds, that kind of stuff, to further goose

the economy? >> yeah. certainly, nothing to indicate in the u.s. economy that is decelerating at such a rapid pace that more than one ierest rate is warranted. we're expecting one point during the year but not as much as the ecb is doing certainly. neil: thank you very, very much. very good having you. to her point that meeting next week is being more scrutinized than a lot of them because really within the same two week time frame we already got a read out of europe. we got a read out of japan, south korea, smaller player in the global stage. but read on interest rates there. you're getting this combination of world events that are leading to still lower rates. we're following them south, even as our economy seems to be doing pretty well. we're following that. we're also following the political impact of what's happening on the impeachment front because it is back in focus right now. house judiciary committee, coming as close as it ever has

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neil: lot of house democrats pushing impeachment right now. judiciary committee moving as close as it ever has on this very issue. now a lot of other democrats are saying go slow on this, because we have a lot of other big issues, sure enough will come up tonight in a big debate in houston among the top 10 presidential candidates for the democratic nomination for president. edward lawrence has been sorting all of this out in washington. he has the latest. hey, edward. reporter: neil, the democrats

are headed down the road to impeachment although house speaker nancy pelosi shut down the question, she will not respond anymore to this, but the house judiciary committee voted to go forward, to set the ground rules for a formal inquiry. republicans pushes back on the committee. democrat jerry nadler says the president can respond if he wants in writing. listen to both sides. >> under these procedures, when we have finished these hearings, considered as much evidence as we're able to gather, we will then decide whether to refer articles of impeachment to the house floor. >> the judiciary committee has become a giant instagram filter, to make you appear that something that's happening that's not. reporter: democrats are divided. the vote today satisfies impeachment-hung bring base but moderate democrats worry this is going too far. representative donna shalala says, this is sucking the air out of the room of good stuff we're doing. they do have some things on the agenda this month. they have to pass a series of

funding bills in the house and senate, so the government does not shut down on october 1st. on the gun debate, senator chris murphy is hoping to see a bipartisan deal that can pass both the house and the senate. >> my hope they will get together, white house staff, is with the president today. and give us clear direction whether he want to have a real expansion of background checks come before the senate, fortunately senate republicans made it clear they will not do anything without president trump's blessing on guns. reporter: they would like the usmca to come up with a ratification vote. u.s. trade representative robert lighthizer responded to an offer by democrats about the enforcement part on usmca. no word when that vote will come up in the house of representatives. neil? neil: edward lawrence, thank you very much. how would you like to be among those who crafted tax cuts we got from republicans, hear each and everyone of the den

democratic candidates talk about weighing of doing all the piling on to them? elizabeth warren suggest ad wealth tax, going after the very wealthy, coming to extending social security benefits for poor individuals. congressman kevin brady, on all of that, the former chief of the house ways and means committee getting tax cuts through. congressman what do you think of all the democratic candidate want to undo what you did? >> they're trying to attack our tax reforms and reregulation because it is working for the american public. certainly working for the economy. we lifted million 1/2 people out of poverty last year. what i love is now most new hires for working age people in america are people of color. so we're getting people out of the sidelines, giving them some opportunity. they had the opportunity to join us. they failed. decided not to do that.

all i'm seeing is crazy ideas on the tax side. neil: you know one of the things the president mentioned, congressman, had the federal reserve not started hiking campaign we would be in a lot stronger position. the impact of tax cuts and stimulus from that alone would have carried over but they botched it. what do you think? >> december was a mistake, no question about that. neil: december rate hike was a mistake. not the others before it? >> well look, i actually think, i have a different view. i don't want the federal reserve to micromanage our economy. i don't want them putting their foot on the brake prematurely. i don't want them hitting the gas because they think they need to for some reason. if they protect the value of the dollar and keep, pay attention on inflation, frankly we have strong enough economy, if you get fiscal policy right, which we have, and monetary policy is just neutral, we're going to grow.

neil: all right. the certain is the growth has not stopped, not reversed but is slowing. some were talking about session a few weeks ago. that was a bit premature. >> yes. neil: are you concerned the oomph from the cuts have not materialized to degree you like? >> no question, some of the federal reserve action, trade challenge, global slowing of growth has had an impact, no question about it. i think there are many days where wall street is a bit disconnected from the average economy. the biggest challenge our businesses still tell us they have is workforce. they cannot find workers they need. what would you call this downturn? help wanted recession. never before, have we had had such urgency for neighbor. the clothe is there. the president resets, redesigns

that relationship with china. i think we're at 3% growth or more. neil: joe biden is not as tax cut averse as colleagues running for the presidency, but he has recommended taken corporate rate down 21%, upping anywhere from 25 to 28%. it's a moving target, but not returning to the 35% statutory level it was at. what do you think of that, among the choices, his are the least tax onerous? >> if that is the least onerous, tells you how bad the whole lot is. that would -- why doesn't he just pledge to send jobs overseas? truth of the matter we lowered the rate to 21%, redesigned whole international code to become more competitive. since we did that, five countries already lowered their corporate rates. some below us. this is competition.

having one of most innovative and tack code on the planet is hard work and we'll have to continue that work going forward. going backward, look, it will cost the jobs, manufacturing patents, innovation, even joe biden -- neil: more than taxes right? the reason i mention it, a lot of ceo's have, withheld some future hiring and expansion they don't know the trade thing is working out. they're concerned this is spreading and it could be problem. do you think that, the trade war, whatever you want to call it, congressman, has complicated things in a way that you didn't plan on? >> yes. >> the answer is yes. clearly it has an impact. we know what the president is trying to do with china and this may be the moment in time where economically we're strong, where we can challenge these unfair trade practices, and redesign that relationship the i will tell you this though, much of

what we did in the tax code was to change location decisions, where businesses put their plants, their patents, do their research. we're just now finishing many of the rules and regulations that go with that. the reason i always say i think the best part of tax reform is yet to come because that will significantly impact where those new manufacturing research plants are. they are going to be in the united states. neil: real quickly, are you angry at a lot of the ceos who either bought back stock, free to do, or rewarded shareholders but didn't do a lot of the other things that maybe you had hoped and that sticks in your craw? >> yes and no. not for a couple reasons. we had a number of companies, you know, go to their employees, provide, not just bonuses but higher pay raises. what we've seen as well, a lot of new retirement benefits and paid family leave. things that work for their workers. stock buybacks, look what's

wrong with bringing back profits from overseas and investing it here in america for any reason? in fact, you know, if you can't find something of value to invest in this moment why not return it to the shareholders and drive it into the economy? neil: kevin brady, thank you very much. texas republican. ranking member of the house ways and means committee. the former chairman, the one who crafted the tax cuts that came to pass. we've been focusing a lot on joe biden but the rising star democratic party according to polls for now is elizabeth warren. she for one tax hikes is a new mantra, particularly targeting the wealthy. now the wealthy are responding. guess who is going to be the focus when she starts debating? yeah, elizabeth warren. after this. i knew about the tremors.

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neil: those met all the criteria, there were just 10, because plenty of others who are going to make the big debate tonight in houston. now the clear front-runner right now is undeniably joe biden. look who is getting more press attention as of late. that would be elizabeth warren. the phenomenon around her campaign, she eschews big corporate dough, the fund-raisers that other candidates need. she gets more than enough in small denominations. what some say is bernie sanders approach to this. talk to the people. it is popular, populist. and has her in the center seat. let's go get a read on all this from tom bevin. she added to popular appeal with a plan that shores up more social security dough for lower and middle class folks, taxing the rich, those $200,000 and over, just what they like to hear.

what do you think? >> smart politics. elizabeth warren is trying to sort of thread the needle being joe biden occupying the moderate space and bernie sanders the revolutionary, right? she is more in the bernie sanders camp. she is not talking like she is trying to promote a revolution but she is espousing a lot of his policies. she has been making inroads with the establishment. that is what she would need to win the nomination. she has enthusiasm. she will be in this for the long haul. she has a great operation in terms o on the ground and in the early states. neil: how is that polling, obviously new hampshire will be a important bellwether for her. has advantage of being from nearby massachusetts. bernie sanders has advantage being from nearby vermont. i don't know how that splits, what do you think? >> new hampshire joe biden's lead is down to half a point in "real clear politics" average. five polls in the last six weeks. biden leads in two of them,

sanders leads in two of them, warren leads in one of them. in new hampshire it is wide open. joe biden promoting himself as an electable front-runner, if he falters in iowa and new hampshire he will have to play defense before he gets to firewall in south carolina. neil: how is this whole tax hike thing resonating? walter mondale proved when you raise taxes on the rich or anyone, it comes back to boomerang. it maybe help you secure the nomination in a general election battle what do you think? >> it will be interesting. warren is doing the populist thing. she, her framing for this whole thing is income inequality. the rich have too much, the rest of us have not enough. and so she has got a very easy way for people to digest this, understand it, by looking we want to take two cents from the

richest of the rich. that will pay for all these programs for everybody to have. it's a interesting message, in the current political environment it may be political popular but for democrats at large, comes down to the midwestern rust belt states, how it is perceived there. that is the real question. we don't know the answe to that. neil: tom bevin, "real clear politics," cofounder, from beautiful chicago. all the bus about things looking good on the front, i will not say charlie gasparino will rain on that parade. but i am saying charlie padearino will rain on that what a time to be alive. the world is customized to you. built for you. so why isn't it all about you, when it comes to your money?

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neil: the u.s., china doing business. a lot of this, trade quagmire, 18, 19 months, will we ever get oaf this. this is going on for a long time even before jackie deangelis was born. nevertheless she will report on the history of that. hey, jackie. reporter: i am. good afternoon, to you, neil. we were thinking about china different perspective. the president mentioned good will, when he talked about delaying tariffs on october 31st. goodwill is about the relationship that the two administrations have they're working through the negotiations. we wanted to look back at how businesses started in china, how businesses developed there. how this has all gone down. negotiations started in the

'70s. business got going in china in the '80s, the people's republic of china. and '90s is when things took off. coincidentally i lived in china the '90s. what impressed me, american brand, logos, fast-food particularly. mcdonald's opened in china 1990. that was relatively late. the company says it wants 4500 mcdonald's chain in china by 2020. what about kfc, yum! brands? they came in 1987. pizza hut followed in 1999. when i lived with the family, neil, what was so interesting, it was aspirational to go to the chains. that is what we did for special occasions. don't forget starbucks getting there in 1999. clothing brands, levi's, nike, it is interesting, levi's says china is only 3% of its business today. but a huge market going forward. for nike, it is 20% of its market. you can see the kind of growth

levi's is expecting there. the question is all about manufacturing, right? the president put pressure on companies to shift the supply chains. a lot of people are wondering can there ever be another china? listen to bob hormats on this? >> the short answer is none of them in themselves can be the next china. some can take some of the supply relationship with the united states, that china now enjoys. they were already shifting because of higher wages in china to the countries you mentioned. myanmar, vietnam, mexico. reporter: this is interesting, there are reports out that there is some sort of a short term deal with china. maybe that is best interest in china. the chinese suffering being squeezed by the trade war. pressure on american, the president and administration are learning a lot how to do

business with china and kind of relationship that they need to foster that ball and push it forward, come to an agreement, neil. neil: we shall see. that has been a long time coming. jackie, thank you very much. charlie gasparino, has his doubts, right? >> yes, i will tell you why. i met with a chinese diplomat, very influential, can't use names. neil: can the name the place? >> in new york city. neil: olive garden? >> no in a townhouse, that houses olive garden. major -- a lot of people that do private equity do business in china and they mad a major chinese diplomat there. i was asking the first question, i was deemed first question, the lone reporter, i asked about trade, are you going to do a deal? i mentioned in his preamble the diplomat made this point.

since 1980, china has taken 800 million plus people out of poverty. it is not the poverty we have here, which is, sometimes entrenched, it is much dire, much more extreme poverty. they have 20 million people left in this extreme poverty, okay? everything they do is directed, president xi, everything is directed to get 20 million people out of poverty. there can be no compromise in getting those people out of poverty. this is what he said. no compromise? you won't take a deal, that sort of makes compromises a little bit with us, short term, maybe pain is diverted, from being so focused 20 million for long-term gain, relationship with the u.s., long term? he says nothing will stop us from compromising, there will be no compromise getting those 20 million people. i took that as like, they don't care, i.p. theft is means to an end, getting 20 million people

out of poverty. all the stuff they do, unfair trade relationships. neil: why the talk was they wanted to separate that stuff. it is disputed. what do you think? >> they are not going to divert their attention away from what their main goal, according to them get 20 million people out of poverty. i said, isn't this hurting you the tariffs? let me tell you something. he gave me a history lesson about the opium wars, how western colonialists tried to exert pressure on china to change their trade policy, britain and france, that is what the opium wars was b china was strong economy in early 1800's, very big exporter. they changed dynamic, destroyed chinese economy. they will never go back to that. neil: long memory. >> they will never lose face. that is what he told me, we cannot lose face particularly western aggression on trade. there is very little that they're going to compromise if you start attacking them on twitter.

just so you know. neil: doing things, reportedly we'll buy more agricultural goods, or administration says we'll open up more markets. >> you say you'regonna? no, they say we're not gonna. neil: okay. >> i'm just a simple country reporter. i tell you -- neil: you never lived in the country. >> what country you're supposed to say. i say this threats are not going to work with them. they will not compromise. neil: that is all we have had. >> all we can do identify where they step over the line which they clearly do, i.p. theft and other things, i think, threatening them is not going to work. creating some sort of global alliance which puts pressure on them in softer way was probably the only way to go and president trump didn't do that. i don't hold up much hope anything is going to change. neil: you're a hater. but thank you for that lesson and opium wars and everything else. that was a ratings juggernaut. thank you. >> you were around back then. neil: yes i was. >> way before jackie was born

[laughter] neil: absolutely. thank you very much, buddy. he goes to the fancy evident places, hangs out with the fancy evident folks. it what's it is. we have a lot more coming up, including the administration's crack down on vaping crisis. whether or not that is moral thing to do, constitutionally can he do it, after this? when you open a new account. just another reminder of the value you'll find at fidelity. open an account today.

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neil: banning e-cigarettes. it is moral an ethical battle. the president says it is harming our kids, six teenagers died, others gotten very sick, a moral imperative we get the e-cigarettes off the market. grady trimble has been following it all. grady. reporter: the specifics of the ban the president will roll out with the help of administration in next coming weeks still have to be worked out. fda is working on guidelines t could be a few months before we see a ban. it will focus on flavored

cigarettes. those are ones especially appealing to young people. it has parent concerned. that is at the national level. at the local level, lawmakers and school districts across the country are trying to figure ouw o deal with i in tampa, florida, in 15 minutes, a state representative is introducing legislation to curb vaping in florida among young people. a school district plans to see big e-cigarette makers for damages to the district and its students that lawsuit could become the first of its kind. some schools installed vaping directors to monitor students. that alerts teachers and min straighttores if somebody is vaping in a bathroom. michigan passed a ban on e flavored cigarettes. juul, the biggest maker of the products, it support as ban and some regulation on these types of products especially the flavored ones but it needs to be categorywide. in other words in juul is

affected, then other makers need to be affected. ceo said this to the "san francisco chronicle" in an interview recently, when we took flavors off shelves, surprising speed which they were replaced by other companies products. that's problematic. the flipside of this argument, neil, a lot of people say vaping is better than smoking because, smoking cigarettes, there is tobacco in that. that kills hundreds of thousands of people every year. health officials saying stop vaping entirely while we vet these deaths and all illnesses happening across the country. neil? neil: grade did i, thank you very much. we've been following story where all the big grocery stores, online, elsewhere are pushing to deliver to you. the latest is walmart which is planning to roll it out in every state in the country. that got us thinking. is anyone ever going to go to traditional grocery stores again, after this?

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neil: if i'm john bolton i don't know how i feel about this, oil down again in hopes that john bolton's exit leads to talks with iran and north korea. like a ding-dong witch is dead thing. that is not very fair or nice. that is the way the markets work. walmart unveiling unlimited grocery delivery subscription. in any state in the country, walmart will deliver what you want and the groceries you need right away. which got us thinking, it happens sometimes on this show, what if everybody did that? a lot of people are doing that. are grocery stores as we know them, going to be like the department store malls of today? no one will go there?

stu leonard ceo, stu leonard disagrees with that. despite the growing trend, grocery stores are not going anywhere. his is an event in the new york, new jersey, connecticut area, he can claim that. >> it's a family business. >> right. >> i have to bank on the fact retailing is here today. neil: but you do have delivery? >> we started with instacart. they will deliver person's groceries, order it on line, deliver it. it is 3% of sales right now, growing at about 50%. neil: do the customers pay surcharge for that convenience through instacart, right? >> through -- neil: but you don't pay it? >> no, we have milk at 1.99 a half gallon. say, 2%. 13% extra would cost you a quarter delivered to your house. neil: has it expanded your business doing that? >> you know, i don't know that. i know a lot of customers said i didn't have time to run over to buy stuff. i think it helped 50% growing it and 50% people who were going to

come anyway. neil: when you're delivering food you have to be fast at it. >> i know. neil: not one of those things you can wait for a nonperishable item. how will that work out? big grocery chains is one thing. big stores are another. for someone like you, that is your bread and butter quite literally. >> we're like 80% perishable at stu leonards. we have fresh meats, fresh fish, fresh fruits and vegetables everything from local farms. neil: yeah. everything is local, right? >> i find people want to pick their own salmon out. you should see people in front -- i want that piece, i want that piece. neil: really? so my wife has been there. it's a long day. that experience, that touch and feel is different in your case. you're different. your store is different in that respect, period. >> that is what we're trying to do, keep retailing fun. we're just opening in paramus next tuesday at the paramus park mall. we're opening in an old sears site. neil: isn't that wild.

>> here is one of the greatest retailers that ever existed, closed and here we are now opening -- neil: that could be a scary omen too. you're not worried about it? >> look at my nails. neil: you do, a lot of people are not familiar with you going to the stores, is an event. do stuff for kids. almost like going to a carnival. you obviously differentiated early on in the grocery business very low profit margins but you found a way to expand those? >> we're high volume. we sell, we buy direct from the farms. i go visit a lot of farmers all the time. we bring the stuff in. we have animation shows like disney, in the store for kids. we're adding something in the paramus store, augmented reality, where kids can hold their phones up, animation shows come out of the wall in the store. neil: you give a lot of stuff away, right? >> lots of samples.

neil: yeah. >> we kid some customers we'll not put price tags up in the store. we'll weigh them on the way in, weigh them on the way out. neil: you lose a lot of money with me. one thing i have thought of, your voice is ubiquitous, tri-state radio ads, you're still doing them, right. >> right. neil: people bump into you, don't know the face but know stew leonard's but they know the voice. >> we have a lot of customers going through stores. i grew up in the business. my brother, two sisters. my dad watches who love you. neil: you make crab cakes sound delicious when you say it. when i say we have crab cakes -- >> i'm excited about what we do at the store. we say it is nice, find the line looking for a new trend or product. look in new york city, there is lines of people waiting to get in for that cupcake. neil: your stores are constantly changing but is that the pressure you guys are under?

all the big names, you know, with talk about walmart. they're all doing it. all major chains. they, shop rite, so many others are going this route. so, maybe with the exception of some of your stores, has it made grocery stores we know them dinosaurs? >> i don't know, i don't think they will be a dinosaur. you have to keep innovating. we have cauliflower pizza right now, that's selling more than the regular cheese pizza. neil: cauliflower is the crust? >> the crust. you still put mozzarella cheese. neil: does it taste okay is it? >> it is phenomenal. neil: you're not italian. how would you know, [laughter] >> we took a burger, took filet mignon burger, put different cuts. you have to come up with things all the time. it is pressure. it is always fun. we're looking around, sniffing, scratching. neil: amazing. he has been doing this for so, so long.

not remotely heavy, not remotely fat. i walk in one of his stores i gain 10 pounds. we'll have more after this. [upbeat action music]

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studying my playbook? yeah, actually. neil: all right. we are less than a hundred points from a record on the dow jones industrials. that was reached on july 15th. the s&p 500 also within spitting distance of a record itself, one that was reached at the end of july, around july 26th. a lot of it has to do with growing optimism on the trade front. know, we've heard that one before. but at least adding to a little of the buying excitement here is what happened out of europe. the european central bank not only cutting rates, that was expected, but doing their own bit of quantitative easing to stimulate the european economy. now, the president seizing on that to say that's the way to do it, that's the way you goose an economy and right now, he was sending a strong signal to the federal reserve for whom you might have heard he's not a big fan to do the same. we are still waiting on front. the federal reserve meets next week. expectations are at that gathering, they will cut rates a

quarter point. that's about it. if you are expecting anything dramatic like we saw out of the europeans, not yet. not yet at all. "wall street journal" editorial board member james freeman is here. kat timms and dan ribboen. the markets again are almost in sync on trade, trade, trade. better it looks, better for them. this is uncanny. >> i don't know that it's uncanny. look, the market just doesn't have any big catalyst to go up or down right now. so anything, any time anything happens with u.s./china trade war that's good, market goes up. any time there's any headlines it's bad, the market goes down. neil: it's almost completely trade-centric. the worry that you hang your hat on something that's yet to materialize. >> that's just where we are right now because there's not anything else. we don't have earnings coming out right now. there are low expectations for earnings growth in the third and fourth quarters but we hen't actually seen those numbers yet. you also don't have anything big. the ecb came out and did exactly what the market hoped they would do, then a little bit more so

that's got traders a little excited, little bit of pickup in their step, you know, little more stimulus for europe. hey, if that's how you do it, if donald trump wants the european economy, .5% growth, negative 2% growth in germany -- neil: what i think is it's one thing to set your standards with the economies that are on fire and getting it done. we are imitating losers. >> right. yeah. there's an excitement with these cuts -- neil: my producer said [ inaudible ]. >> there has been some excitement. that was the whole point, to try to fix these problems with growth, but there's still the issue of fiscal policy that this kind of is sort of -- like putting a band-aid on a bullet hole essentially. what you said, we want to have slow level growth, fine, let's do that but i don't understand why we would emulate these countries but i would say we should just end the fed entirely. then we wouldn't have to worry

about it. >> mario draghi came out today and said we need fiscal stimulus. we need you folks out there in government to do more. i don't think president trump would like it too much -- neil: no. this was his swan song move, who knows what christine lagarde will do in his place. the effect it has if we all race to zero, all the smart wall street guys are talking about yeah, we could get to 0% rates, then what? >> well, this model isn't working. it's interesting, even the european central banks' own research shows it's not working. but this is easier than reforming your economy, cutting tax rates, cutting regulations. the interesting thing about the president is, his model works. we have already seen that. now he's urging kind of more of the european model. neil: his notion is the cheaper your currency, the better it is for multinationals but the jury is still out on that longer

term, isn't it? it doesn't always work that way. >> yeah. i think the ecb would love it if it absolutely did work. neil: they would be going gangbusters if it did. >> they have gone gangbusters. negative .5% interest rates. >> why not negative 1 or 2? neil: not to bemoan this too much but the lower they have gone, the lower their economies have gone. you would think someone would slap their head and say this is idiotic. >> they don't want to change anything of actual fiscal policy, the way they actually do things. it's easier to say lower it again, lower it again. it's not a long-term fix. neil: do you guys focus on the ins and outs of this? you touched on this. we don't know what's going on, we don't know the administration's position, we don't know about the confusing reads we get of what the chinese are conceding. what i do know is they pick a lot of fights simultaneously. i was talking to peter navarro, you know, trade spokesman for

the president, pushing this new thing on international postal rates, it numbs your mind thinking aboutit. it's a battle that might be a worthy one but in the middle of all of this, i have to wonder if it's worth it. i want you guys to react to this. peter navarro. you ever lose track of all the people you're taking on? >> so who are we -- we've got -- neil: the world. >> hang on. we got a great deal with canada and mexico that congress has to pass. we just had a great deal with japan that's moving forward. we're talking to the uk as soon as they solve their brexit deal about getting things. we're getting investment from europe. i don't see all these conflicts that you allege. we can do more than one country at a time, neil. trust us on that. neil: you're convinced of that, it's not confusing? >> the proof's in the pudding. neil: no, we don't have a china deal. it got nasty. the point was, i'm not here to

besmirch him. i just think we have so many fights and so little time and it's confusing people. this postal rate thing he's arguing over countries get better deals than we do. i get it. it might be a legitimate fight. one battle at a time. i think it's confusing folks. that's all i'm saying. what do you think? >> i think the problem is mr. navarro is a trade warrior and he thinks trade deficits are a problem, so he's urging the president to pick all these fights around the world, and i think china is a different case. i think the president has succeeded in persuading people that the theft of intellectual property, the limits on the rule of law, make it different. so i would hope if this thing is dragging out for awhile, we talked about this before, making trade peace with our friends while you focus on getting the best china deal would encourage that corporate investment. neil: we need our friends. all these people, oh, neil, you're a globalist.

no, i'm for getting along with other countries. and one of the things i just notice with this, the china fight is a legitimate one. i take nothing away from that. the president is waking people up to the fact it's a real concern. they have cheated and lied for many years, certainly that you and i have covered them. fine. but in the process, we have gone after south korea, we have gone after japan, gone after canada, gone after mexico, maybe some of those fights were worthy and worth it. others i imagine are not. that's why i think we need a backstop of friends and we are running out of them. >> it's too much, especially most economists would point out some of the deficit has to do with the fact that america just consumes more than it produces. we are not going to ever be able to completely close that because imports do make up for that. so i don't see any point in as you said, taking on our allies because we do need some allies. neil: yeah. >> to function as a country. neil: what do you think? >> it would be nice, it would be great to have allies. that was really the coalition president obama was setting up under his term.

when he was trying to set up the tpp and moving forward -- neil: the trans-pacific partnership was supposed to be a group to counter the chinese. now, we bowed out of that maybe for perfectly legitimate reasons but we lost our bargaining chip, right? >> right. that was the idea, to set up this global coalition that could counter the impact of a rising china and the influence they were trying to have in asia. that's what he was doing. when president trump came in and pulled back on all these alliances, then started trying to renegotiate settled trade deals, it's worsened our relationships with our allies and now we are seeing the exact reason the president, president obama, was trying to set these coalitions up in the first place. neil: by the way, i fully understand and appreciate the degree to which, i have heard from tech ceos and the like, yeah, they do steal our stuff, and it's why we kind of trimmed our exposure to china long before this president came along because it was pretty blatant so intellectual property and all the issues we have been talking about are legitimate and worthy to pursue. it's just that we are spread thin fighting with everybody. >> yeah, i don't think it's too

late, by the way, to try and do a new asia deal. obviously it would need to have a new name, i think the president needs to rebrand it. but our friends over there still don't want china to dominate their part of the world -- neil: but they are already flipping it around and using it as an excuse to say this is why our business is hurting or using it as an excuse to say this is why we're trimming our growth plan. so are some overdoing it and blaming it for the slowdown that's going on, because that's what the president was arguing. >> i think there's a mix. some of the concerns are legitimate, especially when we are taking on not just china and the tariffs, many industries are dealing with it right now but at the same time, the economy is really strong so i think some people are overstating it. i think that as with many things, the case is the truth lies somewhere in the middle. neil: for today, for all i know we could hit a record in the stock market today. we're not that far away. 50, 60 points.

what do you think drives it, when push comes to shove, is it just that we are the only game in town by comparison, these same markets we're trying to imitate, these economies we are trying to imitate, we are better than them and that's ultimately what's scoring this for wall street? >> look, stock traders say all the time there is no alternative. t-i-n-a. where else you going to go? you going to get a ten-year treasury yield with, what, 1.75% now? you going to go with a 30-year yielding just under 2% or just over 2% now? you going to some japanese bonds that are paying you nothing? german bonds that are charging you to hold them? what else, where are you going to put your money besides the u.s. stock market which actually for a time last month was paying a better dividend yield than the ten-year? neil: all of a sudden you get a lot more bang for your buck via dividends than you do on a 30-year and certainly ten-year, right? >> yeah. i think the reason we talk so much about trade is because that is the big overhang.

everything else, i think the president has succeeded in basically solving the competitiveness problem in the u.s. economy. we have now got a tax system that allows our businesses to compete, he's made great progress cutting regulation. if we get the trade thing resolved, i think really sky's the limit. >> just amazing how big of an impact something so small can have. the president made a small concession to china and the markets are loving it. experts are saying not really time to pop the champagne yet, we don't know what's going to happen long-term but the market is popping the champagne essentially. i get it because champagne is -- >> also, my colleagues at the "journal," this story today that china is making a new effort to figure out how to resolve it, i think this is -- we have had a lot of these before. who knows what ends up happening. but it definitely suggests that this balance that's been out there that xi jinping has kind of given up on cutting a deal with trump and he's now looking

to the next administration is not the case. they are trying to find a way to make this happen. >> i would disagree. i read that story you're talking about, and it says they're turning the focus now. i think it's because they still have these ir reconcilable differences on the big issues. the question is, is trump or president xi going to back down from these irreconcilable differences and neither man, neither side has given any sort of idea that's what's going to happen. maybe we can get a short fix but again, president trump today came out and said we are not going to do an interim deal or short-term quick fix. we want a big deal on these issues. we want to make sure a big thing, you know, things change in a big way and meaningful way for the u.s. economy. that seems to be president xi's stance as well. with those two opinions, it seems like we've got the immovable force and what's that, the unstoppable object. i mixed up my metaphors. neil: we are going to take a quick break here. there are a lot of folks

watching what these democratic candidates will be debating in houston tonight. we talk about a recovery. could elizabeth warren's plan to go after the rich and in a bigger way than we ever thought possible, they are annoyed, that's probably an understatement, the rich, but could this boomerang on you? we are on that, after this. i get it all the time. "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter...

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neil: all right. the 2020 contenders will be debating in houston tonight. all eyes on elizabeth warren. she released her latest plan on social security, how to shore it up or at least help average folks get more, average and poor folks get more by, well, going after the rich. hillary vaughn has more in houston ahead of the big debate. hey, hillary. reporter: hey, neil. senator elizabeth warren and former vice president joe biden will head to the same debate stage tonight, going

face-to-face for the very first time. warren, who has steadily gained momentum in the polls following her debates, has a shot to finally take on the frontrunner. warren tonight will take the stage with a new plan in hand. this one to expand social security, promising people who get social security benefits $200 more a month. the plan would also bump up benefits for low income families and people of color. all of this paid for by the top 2%. warren says top earning families will contribute over 14% of their net investment income to social security. biden among the candidates who have plans like warren at a fundraiser in new york last week, said you have to have plans but you have to be able to execute those plans. that fund-raiser was hosted by the co-founder of a houston based natural gas company which biden got a lot of heat for attending in the first place so he made a pledge not to take any campaign cash from fossil fuel executives. texas is the top producer of oil

and natural gas in the country. some of the candidates onstage tonight have promised to ban oil fracking, a controversial natural gas extraction process. senator kamala harris, bernie sanders and elizabeth warren all have pledged to put a stop to it. there are also two texans onstage tonight, beto o'rourke and julian castro who both shied away from an all-out fracking ban but are looking for a chance to shine tonight. beto will have to do that while censoring himself because abc and the dnc issued a memo to all candidates to not use foul language on the debate stage, and beto has been using the "f" word on the campaign trail when expressing frustration about gun violence. he will have to keep his four-letter words out of his comments tonight, though. neil: he can't use that word. hillary, thank you very, very much. meanwhile, ted cruz is warning that texas could be very hotly contested in 2020. maybe that is why the trump campaign is flying its socialism

warning banner before the big debate. back with our panel now. james, kat, dion, who is shaking his head. you don't want to get him upset. they are going to say all these guys are separated only by the degree to which they want to spend you into oblivion. you say? >> i think the big mistake elizabeth warren is making here is paying for her plan. that was a big mistake hillary clinton made. you need to embrace m & t, embrace all the new economic models. everything you want, free, no more taxes, no raising taxes, just free, free, free, free stuff, free college, free social security, free medicare forever. neil: but the party base seems to like it. right? >> i don't know. for me i'm a single issue voter. i actually vote on whoever uses the "f" word the most.

it's ridiculous. no, look, i think a lot of voters are very liberal, particularly democratic voters in primary elections. for that voting bloc, they like to hear these kinds of things. everyone else, though, not so much. a lot of people are scared by words like socialism and the fact that some of these candidates, remember when obama was some super progressive and he was a socialist? these people are actually using the word socialism and obama is too conservative now. i think that for a certain segment of the population, yes, but that segment seems to be influencing the party overall, if you watch these debates. they are trying to see how much further left they can push each other. neil: i don't know where all this goes. i do know that elizabeth warren is going to be closely scrutinized here. she is the rising polling star. you will warn me, as you should, it's too early to seize on that when no one has voted yet. part of her appeal is she backs up what she wants to do with the plan of how she plans to pay for

it, particularly it's on the rich. the latest wrinkle in that is this plan to beef up social security payments for average folks and hang it on those who earn $250,000 or more to pay for it. but again, it plays out a theme ats consistent. she just verbalizes it more than the others. >> i think dion may be on to something. neil: he's on something. >> that's a lie! what did i do? >> i mean, it might be better to just say you're going torint the money because she keeps going back to the 1% with each of these plans. you know the climate plan. even if you took every dollar the 1% make each year, every single dollar, it wouldn't even pay for the government-run health plan she's proposing, not to mention all this other stuff. so your question about the frontrunner i think is a big question in these debates is when do people start treating her like a serious contender. neil: tonight will be the first

shot at that. >> i think you wonder is it tonight that someone finally raises the issue of claiming to be native american all those yea years. now, maybe candidates are reluctant to go there but if she takes the lead, if she begins to leave bernie behind her and she's the second place person, you might expect some of those questions. >> i just do not imagine doing that. you know? neil: do not imagine -- >> i have always been like and i have never pretended to be anything else. neil: you think that's her achilles heel? it is said republicans are going to pound that. >> i think she has a lot of them. part of it is she is so far left. even if you took -- if you get bezos making 30 grand a year, there still wouldn't be enough money to pay for all of these things she's proposed. a lot of it hasn't been constitutional as a separate issue. then also, this is an issue that trump at least would absolutely have a field day with. she would be up there on the

debate stage and she would be giving out this point by point plan that she thought out so well and trump would just say whatever, pocahontas and the crowd would go wild. you would win on that. neil: it's still early on. thank you guys. don't go anywhere. next we are looking at apple, of course hitting a trillion dollar company yesterday, adding to that substantially today. of course you had apple at its low, we were talking about how this was faring a couple decades ago when you could get it for a split adjusted buck a share. right now it's at $225. more after this. the community, we present limu emu & doug with this key to the city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ]

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♪ neil: all right. get this. walgreens is now offering 3% cash back for anyone with an apple card purchase. yet another reason to keep pushing up apple's stock price. it's holding well above the trillion dollar valuation. again, little bit north of $225.

it can go back and forth. it hit this about ten months ago, then came out of that, but it's a whole new world right now. investor and managing partner gene munster is joining us. and our panel joins us with their insights as well. thank you for stopping by. >> thank you, neil. neil: let's look at apple post the product announcement. some people shrug their shoulders on the new watches or new iphones. be that as it may, it seems to be back in fine form for now. you think this lasts? >> i think it does. i think there is measurable upside to the stock. i just want to take a step back and put some perspective on what the consensus investor view of apple today is. that is an 85% largely hit-driven hardware business. that's why there is events like we had this week, a lot of focus

and scrutiny on the features. that's an example of hit-driven hardware. 15% is a stable services business and that obviously is growing a little bit faster but that's the consensus view. when i think about the fair valuation of apple, i think it's important to change the lens a little bit. i think this will become the prevailing view over the next couple of years, is that this is not a hit-driven hardware business, but this is a consumer tech staples company. very similar to other consumer staples company, but this is the one company that can make tech usable for all of us, and ultimately, that should drive a multiple that is similar to other consumer staple companies. just to put that into perspective, procter & gamble and coca-cola trade at 25 times next year's earnings. apple trades at 15. if you apply a similar multiple as apple to -- as procter & gamble and coke to apple, that would yield about a -- about 60%

upside to the current stock. that may seem absurd when you think about $1.7 trillion but i would almost ask the panel and investors more broadly, why in fact do companies that grow, procter & gamble will be flat in revenue growth, coke will be down, apple will be up 6% or 7% this year, why does a company that ultimately has greater growth opportunity and is a staple trade at a much lower multiple. that's a lot there, but -- neil: that would be a lot. that would be a $350 stock at a minimum. go ahead. >> i think related to that question, where the multiple should be, gene, i'm wondering, you are comparing it to these consumer staples companies and people who started that great innovation culture at apple probably would not have wanted to be compared to sort of traditional firms like that. you mentioned the rollout this week of kind of what seemed like incremental improvements. can you tell us about the state

of innovation at apple? do they need to keep creating amazing new stuff or can they kind of milk the franchise like a procter or coca-cola? >> they need to have great products and ultimately, one of the metrics that they continue to share, it's a metric that they reveal which is 99% customer satisfaction rating, it was 100% a few years ago and they gave the number out, but it's been high and part of that is because they do innovate. i think that largely gets lost, i think, in this conversation as we look at the specs around the technology. if you just take a step back and think about the products that they build, the features that they have, it is innovation. i would argue that these are the best consumer tech products in the world, if you compare that to samsung or huawei or google or amazon's hardware. i think there's a strong argument to be made for that. so the question about

innovation, back to your question, is i believe they are innovating and i understand they are not new product categories. there are large categories they will go after, health care and mobility in the future, but i believe they are innovating. keep in mind, the three features that people want most in any phone is first a great camera, second a better battery, apple delivered on both of those and third, a price they can afford. that's the piece that apple still largely struggles with, that they are a high end price point. >> for me it's just a pet camera. i have had this iphone 7 for so long, i don't want a new one because it's too big but this pet camera might get me. neil: you are not sort of technology woke, are you? >> i'm not. but i am woke in terms of taking pictures of my cat. neil: that's fine. that's fine. no one asked about the quality of the phone. can you hear it. >> millenials don't talk on the phone. neil: we don't have time to talk. we have time to discuss right now this escalating tension with north korea and china and how the two are going to sort of dovetail to get a deal. after this.

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neil: all right. i mentioned this before. if you're john bolton, you have to be thinking really, guys, this isn't hard enough? oil prices continuing to slide right now on the fact that he's gone and the prospects of talks with the north koreans and chinese, all that improves, even the iranians and the former cent-com commander on all of

that. commander, thank you for taking the time. >> hey, neil. neil: does the world change because he is no longer calling a lot of the foreign policy shots? >> i think everybody is watching and waiting here to see what happens, who comes next. i'm not sure that there are going to be any earth-shaking moves in the immediate future here in terms of policy changes or anything like that. but of course, all the interested parties are waiting to find out if there's going to be another initiative, take korea, the u.s., both sides certainly have a majorwanting t forward in some kind of discussion because they both want something significant. we want nukes to go away and they want sanctions to go away. neither one are likely to happen any time soon. just unilaterally. but there's a strong motivation, i think, on both sides to get started again with a discussion. >> do you feel like the market's overreacting here?

because from the start of the trump administration, i don't think other countries' leaders have really known what to make of it. the president says one thing, he says another, and it may be a direct strategy on his part to keep folks on their toes, but it doesn't really seem like, it's not as if john bolton is out and now a noted dove who loves everybody and wants us all to get along is in the trump white house, right? >> of course. of course. i think markets are looking for a sniff of something to try to move along and if it looks like good news, then things are going to go up. if it looks a little challenging or a little unstable, then they come down. >> admiral, james freeman. good to see you again. it's been awhile. wanted to ask you if there's anywhere in the world, among these adversaries, potential adversaries, do you feel like there's a particular place where the art of the deal potential is promising? do you see a former adversary that you think is really ready

to make a deal, chart a new course? >> i would say probably the korean situation is the most likely, because you have two leaders that are very similar in their approach, and in the case of the north koreans, kim jung-uncan basically call the shots himself. they have some kind of chemistry they have demonstrated. kim is firing his missiles again but he's been pretty cautious in not pushing beyond what i think they verbally conveyed to one another, so for our standpoint, there's some things we can do to get moving. i know they would like to see sanctions lifted, just across the board. i don't think that's going to happen, but there may be a way to get going. i think that's the most likely one. iran, very complex. they've got a lot of issues. again, revolutionary regime that really wants to move a lot of things in their favor in the middle east so a lot more baggage there.

and of course, the taliban, afghan situation is just challenging. it just won't go away. they have been resisting outsiders for centuries and it's really tough to get anything done there. i think of all the likely hot spots or security problems right now, korea is the best bet. china of course is the biggest issue long-term. that's not going to change. but in terms of maybe trying to get something quick, i would say korea is probably the best bet. neil: all right. admiral, thank you very much for taking the time. we will watch things very closely. meantime, we are also watching this. 145 ceos pushing senate leaders to act and act right now on gun violence. after this. fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard.

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but how do i know iflly i'm i'm getting a good deal? i tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if i'm getting a great price. this is how car buying was always meant to be. this is truecar. but shouldn't somebody this is be listening?pression. so. let's talk. we're built for hearing what's important to you, one to one. edward jones. it's time for investing to feel individual. neil: all right. that's a lot of ceos, 145 right now pressing senate leaders to act on gun violence, do not put it off.

kristina partsinevelos has all the details. what's going on here? kristina: yeah, they are calling firearm violence a public health crisis that demands urgent action. you said 145 ceos from some of the largest companies in america. you've got gap, uber, twitter on the list, dick's sporting goods, even bain capital. there's a lot of missing companies. you have primarily a lot of tech companies and ad agencies but nothing, no big wall street banks that have signed this letter. what they're demanding is background checks on all sales and transfers of guns. they are also expanding or want to see the expansion of the red flag law which pretty much removes a gun from anybody deemed a danger to society. that would be temporarily taking away their gun. in the letter, they wrote and i quote, gun violence in america is not inevitable, it's preventible. there are steps congress can and must take to prevent and reduce gun violence. we need our lawmakers to support common sense gun laws that could prevent tragedies like these. what you're seeing, a trend

right now, corporations that are getting more involved in the gun control debate in america. this comes after several retailers have asked customers not to openly carry guns into their stores. part of that list, walmart, cvs, walgreens, starbucks has done it in the past, panera bread has done it in the past. we are talking about what does america think. there was a very, well, a relatively recent poll from pew research about bipartisan support for several of these gun policies. one in be theingparticular is t background checks for private gun sales. 91% of democrats, 71% republicans. at the moment, the president is slated for a briefing on potential gun control policies today. back to you. neil: thank you very, very much. by the way, we do want to let you know that with the strong stock market here, we are not that far away from a record. we are keeping a close eye on the dow, now around 27,277. so about 80 points or so from record territory hit earlier

this past summer, around the end of july. in the meantime, not just the trump administration cracking down on vaping. what a lot of states and schools are doing before they even get a chance to move themselves, after this.

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come down hard on vaping. there was some talk that maybe when we got a new hhs secretary, they were going to back off vaping. that has been very clearly not the case. juul, one of the fastest growing unicorns, tech startups, whatever you want to call them, in the history of the country, they are not a tech company, they are not some website. they reached decacorn status -- neil: they knew what they were doing. they marketed to kids. >> they absolutely were. now they say that's not what they're doing, that's not why they have candy flavors. there's an argument just because kids like green apple and ruby red flavors and mango doesn't mean i should not be able to -- neil: you know, i think it was shepard smith was talking about one of the guys marketing this stuff and it's really over the top what they do, and he properly grilled him on it. my concern is that when you start picking and choosing the products that are harmful, i mean, my big fear is that it spreads, that the government assumes this role as our

national babysitter here when in fact, there are other means by which you could crack down on this stuff. we didn't even do that with tobacco, you know? >> yeah, and the recent deaths, that looks like it may be a separate case related to the particular substance -- >> black market vapes are the vast majority of these illnesses. look, i have the juul, okay? i'm addicted. neil: did you smoke before? >> yes, i did. now i no longer smoke. neil: you no longer smoke. how do you feel about kids who then get hooked on this and they never smoked? >> don't do it. all the kids watching, i know cavuto is for the children. i'm sure there's a lot of you out there. i can't stop, i fall asleep holding it every night, i wake up, it's still in my hand. it's absolutely sick. neil: is it addictive? >> yes, it is. neil: where does this go? >> i think a lot of parents probably looked at this and thought it was a relatively

benign way for a kid to rebel, not as dangerous as smoking, obviously. if a kid is already smoking, this is a better alternative. neil: i'm not a fan of it. to your point. shepard interviewed, i agree fully with that, it's a weird thing to fear, but i worry bludgeoning the system to get what you want to get it off the market, whatever, what's next. do you do the same for adults? my big fear, do they go after bacon, do they go after -- >> exactly. where is the "wall street journal" editorial board on this? speaking of overreach. >> i will take bacon. neil: careful what you wish for. you just might get it. in the meantime, europe is planning to block libra, the digital currency that facebook is proposing. it's led by the french. you know, it's obviously accepted in europe that this is going one step too far. i think what they are saying is this whole digital currency thing, much like central banks

around the world, go slow, go slow. this is not right. what do you think? >> look, central banks actually are looking into issuing some of these digital currencies themselves. china just came out recently and said they are looking at issuing their own digital currency, it would be available, it would be the same as cash, backed by the central bank. essentially you have this currency on your phone that would work even if the internet goes out, even if there's no power. so that's the kind of thing central banks are studying and working towards. i think the big fear is they don't want a company like facebook which is a private company, which is motivated by profit, to be able to control this thing. neil: someone will. someone's going to control it. right? >> i have no problem with that. i'm libertarian so i think almost everything should be legal. but i personally wouldn't -- neil: there's something very twisted about this whole philosophy. >> freedom? i'm an american. neil: freedom is just another word for nothing else to do. >> i wouldn't trust facebook, though. i wouldn't trust -- neil: i guess there's this fear that comes across central bankers, you hear jerome powell

talking about it, his swiss bank counterpart, they don't know what to make of this. they just know it could wreck the system that we have. i think they are trying to kill it in the crib. >> there is a conflict of interest here, where a lot of the cryptocurrencies, a lot of the appeal was challenging the products created by central banks. we don't trust your currency, we don't trust that you're not going to keep printing it to suit your policy agenda. that certainly was the appeal of bitcoin for a lot of people, is to have something that central bankers cannot emulate. so to have central banks then deciding how to regulate what are essentially competitors, although i think libra, less of a competitor. it's more sort of integrated into the existing financial system i believe than some of the others. neil: i just don't understand. i know that it's deemed a threat. it's deemed a threat to the system that we have. >> that's because it can replace money, quite literally, if

people are on libra. the idea facebook has, we have two billion users around the world, they want to increase that to three billion. everywhere you go there's another facebook user, the guy at the market has facebook, the guy on the corner has facebook, your local deli, everyone has facebook, you can just manage interchangeably and buy things straight from them. you don't have to go through systems or payments or the government. it creates a lot of questions and a lot of headaches that central banks have only recently stepped up their knowledge on and their study of. i think that's part of this. i think the other part is really like you said, this could get out of control and where you get to a point that facebook rather than governments have control of how people pay for things. that's a really big deal. i don't know that it makes sense for -- neil: so you err on the side of the french more than facebook. >> i don't know that i err on either side. neil: i thinknow. i think i know. all right. in the meantime, water vapor has been detected in the atmosphere of i guess they call them exoplanet. my good buddy and friend is all over this stuff. he was trying to get me up to

speed. but this is a planet about seven times the size of earth. how many light-years was it away? a hundred some odd light-years away? it apparently would accommodate life. i'm just thinking, you know, this planet gets too much for you, kat, there you go. >> you know, look, it has water but does it have vitamin water zero? neil: it does have a digital currency. >> space too far. i don't even go to brooklyn. i won't be going to space any time soon. neil: what do you think? >> well, there is -- neil: i'm sorry. what was it? 110? >> at least twice as far as brooklyn. neil: exactly. something like that. yeah. >> you may need to rely on the other panelists once we get there, because there's an oxford university study, believe it or not, saying men are more likely than women to talk to aliens. neil: really? >> yeah. neil: wow. but we don't ask for directions. by the way, how do i get to your

planet? >> that, we won't ask. neil: all right. but we are discovering more and more of this, right? it was a couple weeks ago there was a planet 30 light-years away, six times the size of earth. it could maybe be like earth. >> yeah. i think this is the alternative to the green new deal. a far superior alternative. instead of paying $30 trillion, we find a new planet and go there. neil: we find confirmation there's life elsewhere, i'm always debating if we have a big day in the markets, do i lead with that or do i lead with -- i have no idea. i want to thank you guys. weren't they a great bunch? no? you don't think they were? i thought they were. all right. we have a lot more coming up. the dow is really moving very very fast. up 157 points here. s&p, within a stone's throw. the nasdaq, not so much. interest rates, they are stacking up. we are back to early august levels here. the better thinks look presumably for the economy and the federal reserve, what's going on in europe, the better things look for stocks. it's coming at the expense of

bonds, taking money out of that. t you take the money out, the demand goes down, the yield goes up. that's where we be. more after this. i get it all the time. "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. . .

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just another reminder of the value you'll find at fidelity. open an account today. neil: there is a big democratic debate tonight. the reason it is getting dis dispeportionate amount of attention, elizabeth warren is surging in the polls. she wants to spend a lot of money that might be meritorious and decent but they cost a lot of money. more social security payments for a lot of folks, that means socking it to the wealthy, those earning $250,000 or more for generous payments for those who are not wealthy. what that means here, if you hear phil gramm and others tell it, it is going to wallop the economy. what starts with the wealthy doesn't end with the wealthy. anyway, former texas senator and man who came up with the gramm-rudman spending restraints, also a presidential candidate, he will join me on

all of this, 4:00 p.m. eastern me saying there isy s much dough you can get from the very rich. he is very annoyed. he will express his grievance on "your world" and he will. man with no brief vanses everyone gets along with him. charles: before you go, one of our loyal viewers eddie hooks, team cavuto is in contest with charles payne for ugliest coats. i think it looks great my man. eddie doesn't like it. neil: someone else told me, i thought tony soprano was gone. i don't need that, charles. come on. charles: we have to take the good and bad as long as they have a nielsen box. neil: thank you, my friend. charles: i'm charles payne, this is making money. breaking right now, we have big stuff going on. investors deal with the typical anxiety associated with hitting all-time highs. bias remains to the up side as buyers continue to emerge, despite a report of potential