more, but he's not going to get pushed into doing it by either the market or the fed. i think the market liked that certainty it got. maria: also maybe it was the philadelphia federal reserve that came out, the index came out, it dropped to 12 but it was higher than expected. markets turned around. dagen, thank you so much. good to see you. let's get right to david asman. "varney & company" begins now. david: thank you very much. stuart is off today. i'm david asman. good to have you here. here's the big story. president trump once again saying he is disappointed in jerome powell after the fed cut interest rates by just a quarter of a point. you will hear the sound. stocks reacting modestly to the rate cut. we are going to be up when the market opens in 30 minutes and i'm saying a lot of that has to do with some positive news about china talks. but there is one stock that's going to be down severely this morning and it's a big stock. u.s. steel. it gave a dismal outlook for its business due to falling steel

prices and lack of demand. oil is up about 2% amid more tensions with iran. that country's foreign minister is threatening all-out war in the event of a u.s. or saudi military strike. meanwhile, facebook chief mark zuckerberg heading to capitol hill today, trying to promote his vision for moderate internet regulation, as antitrust investigations are heating up. plus, we have news on a possible isis connection to that mechanic who tried to sabotage an american airlines plane. and major tv networks are saying no to advertising e-cigarettes. "varney & company" starts right now. david: first to washington, d.c., where midlevel china trade talks are kicking off today and they seem to be having a positive effect on the markets. the dow jones industrial went from negative to positive on the news.

edward lawrence joining us live from the white house right now. hi, edward. what's going on? reporter: yeah, literally right now, the talks with the chinese delegation have started. the delegation has walked in there. these are deputy level talks that will set up the talks between the heads of the two trade delegations in early october. now, about an hour ago, in an interview that was aired on "mornings with maria" an exclusive interview with vice president mike pence, he says china must address the structural issues around protecting intellectual property and trade. >> president trump is going to stand firm til china comes forward, opens their markets to our goods and ends the practices that really, really have harmed american businesses and american private property for decades. reporter: chinese sources say that among the discussions that are happening is the chinese buying more u.s. agriculture. also, the chinese laying out a plan in this discussion to further reduce the number of forced joint ventures, showing

their commitment to protecting intellectual property. also, the chinese talking about during the deputy level meetings increasing the number of holding foreign owned enterprises within china. china wants to talk about discussions related to removing themselves from a currency manipulation list treasury has them on, also reducing or removing tariffs now in place. again, these are deputy level talks to set up the main event in early october but we will get a sense of the progress that's happening right now. david? david: good stuff. thank you very much. president trump weighing in on the fed decision, as you might have expected, to cut rates by just a quarter point. he wasn't happy with it. roll tape. >> i don't think he knows how to play the game very well. they've raised too fast and i have been saying this openly, and they have lowered too slow. so i'm not thrilled with the fed but despite that, we have an incredible economy and we don't have inflation. >> chairman powell's job is safe? >> it's safe. yeah. it's safe. i mean, sure. why not?

he's got a job and you know, i'm disappointed in him. i'm very disappointed in him. david: he's got a job. joining me, former dallas fed adviser danielle dimartino-booth and former kansas city fed chairman herman cain who also ran for president. danielle, first, your reaction to all this. yesterday, he said no guts, no vision about his fed chairman. what do you think? >> well, look, he's going to continue to berate and bully powell. this is great. he's collecting a paycheck, this is what we're supposed to take from trump. but you know, in powell's defense, we have had fresh data out this morning, jobless claims remain very low, philadelphia fed came in stronger than what was expected. so we are still seeing a lot of green shoots in the economy to suggest that the fed doesn't have to go hit the panic button, and ease as dramatically as say, the europeans. david: but you can't ignore the europeans, can you? they keep lowering their interest rates and part of the job of the fed is to make sure

that the united states currency is sort of in parity with what's going on around the world, right? >> you are absolutely right. but the other point relative to the fed is that they are inherently cautious. so that's probably why we only saw 25 basis points. but what the president is alluding to is we are not taking advantage of some of the things that the europeans and other countries are taking advantage of because we are lowering too slow. i believe that that was the president's point. david: well, the new york fed, this is something that seems to be ominous to some people, have been stepping in recently to help money markets, putting billions of dollars in overnight for folks, banks and others who were caught short on cash. danielle, is this a big problem? >> well, i think it's a big problem if the fed can't get its arms around what's happening right now. there's a supply/demand imbalance. they came out, they did another operation this morning.

these are theoretically emergency measures that they're taking but you can't take an emergency measure every day. there are some facilities and other options that have been discussed at the fed that powell certainly had the option of rolling out yesterday that he chose not to do. again, it wasn't until he mentioned that if pressed, quantitative easing would be back on the table. it was not until that moment in his press conference that markets began to turn around and come off their lows. david: but herman, we think back to 2007, there were some money market problems that sounded a little similar. they were short on cash, the new york fed had to intervene. happening again now. is it just a coincidence that it happened in 2007? >> i don't think it's a coincidence and i think that the key question is did the new york fed have to do that. danielle alluded to it. i don't know all the details, but remember, one very important point, the u.s. economy and the world economy are very complex

entities and so one move by one federal reserve board does not necessarily tell you everything that might be going on. as i said, the key question was did they have to do it rather than was it the right or wrong thing to do. david: good question. good question. >> yes, they did, to answer that question. david: we will hear more from herman in just a moment. facebook chief mark zuckerberg has a plan for moderate internet regulation and will pitch it on congress. what's going on? susan: first time he's back in d.c. since his two days of testimony in 2018. he's here, yes, to sell his vision of self-regulation of facebook to the politicians but also to shake hands and of course, a charm offensive is on. david: on both sides, by the way. susan: so last night, he was at a dinner apparently, according to our sources at fox business, he met with senator blumenthal, senator cantwell and today he will meet with mike lee, chairman of the subcommittee on

antitrust of the senate. we deal with politicians on both sides of the aisle talking about a breakup of names like facebook. do they have too much control over the internet and over the discussion, not only antitrust, privacy concerns and content moderation. david: for all those concerns complaints, they are wining and dining each other. susan: the stock up 40% this year. teflon. david: look at u.s. steel. it's going in the wrong direction, down big time heading into the open. ashley, what's the deal? ashley: weakening steel prices is a big problem. we also have restructuring costs in the case of u.s. steel. they expect a loss earnings per share of 35 cents this quarter. the estimate was for 6 cents. since the tariffs were announced last year, the shares of u.s. steel makers, not just u.s. steel, have been in a slump. we had steel dynamics also recently reporting lowering prices for steel and the trade tensions, and global slowdown that's hurting demand. you put all that together, it's

been a tough go and certainly for the steel industry. by the way, those tariffs were put in place to help the steel industry. david: of course. [ speaking simultaneously ] david: of course the world economy is slowing down. well, president trump campaigning in california, trying to broaden his base. he's also trying to do that by wading into the gm strike. of course, he's been reaching out to african-americans in a big way. but according to a latest fox news poll, it's not really helping that much. he's trailing all the major democratic candidates in head-to-head matchups. so herman, clearly he's widening the base, clearly he's trying to do what other republicans have failed to do, and i think he is succeeding in a lot of areas but why isn't it showing up yet in the polls? >> you remember the phrase silent majority? i think you have some silent blacks when it comes to them saying how they feel about trump. i know anecdotally from black people that i talk to, they love the results that this president

is getting. our challenge, the communications world's challenge, is how do you communicate all of the positive things that he's done. i believe that some people simply don't know it. secondly, you have a lot of democrats that are already predisposed to be in favor of some of these very radical democrat presidential candidates, so i don't think that these numbers truly reflect the number of people who understand what's really going on from this president that's helping not only blacks and african americans, but helping everybody. david: absolutely. starting with the unemployment figures which are just extraordinary. more jobs than ever before in american history. herman, great to see you. thank you very much. >> thanks, david. david: check the futures, they are up and they were down all morning until we had several things happening. one, this meeting that was talked about among officials leading into the major trade discussions with china coming up in october, then we also had a very interesting meeting with larry kudlow on "mornings with

maria" speaking positive about the china trade talks. that i believe has led to a turn-around in the futures. we'll see what happens in about 20 minutes when the markets open. meanwhile, the new iphone coming out tomorrow and according to reports, preorders have been strong, but is this an indication the phone will be a big hit? we will ask one of our top tech watchers later this hour. secretary of state mike pompeo says there's no doubt iran was behind the saudi oil attack, so can we punish the iranians by blocking them from coming to the u.n. general assembly in new york next week? that story coming next. 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. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that.

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david: we have some breaking news out of israel. prime minister netanyahu's opponent benny gantz has declared victory in israel's elections. you have more on this? ashley: this is going nowhere fast. gantz, the former army chief of blue and white party, yes, he may have the lead but it's like .77% after the election two

days ago. this is deadlocked again. the idea of a unity government where two parties, perhaps gantz's party and netanyahu's party comes together. gantz says no way. what happens now is the israeli president rivlin will meet with the parties separately and try to decide if he believes one of them can actually form a government that can get a majority. david: the deal-making that's going on right now. ashley: third election looking likely. david: secretary of state mike pompeo accusing iran of being behind the saudi oil attack, calling it quote, an act of war. here's what president trump said about military action against iran. roll it. >> we'll see what happens. a lot of things could happen. we could have a peaceful solution, that's good. it's possible that that won't happen. but there's never been a stronger country militarily, not even close. david: joining us is congressman adam kinzinger, republican from illinois and former air force pilot. congressman, nobody wants a war but on the other hand, the

iranians keep racheting it up. we don't do anything, they keep racheting it up. we are tightening, we are squeezing them economically but should there be something more than that? >> absolutely. think about it, there's really three options but taking the history basically from 1979 on, this is nothing new with iran. now, it's been speeding up here pretty recently as we saw with the drone attack which, by the way, was the economic equivalent of losing ten f-16s. it wasn't a small your uncle's barbecue drone. the size of an airliner. the president should have struck then. but i think what's happening is iran is going to continue to push the limit until they provoke a u.s. response. it's like if a bully is pushing you around, you got to punch him in the face. that's where we're at right now. he can either strike oil fields, the equivalent oil facility in iran, he can take out the military equipment iran used or what i think is actually maybe even better is going after iranian assets in syria. i think that's proportional. i think it would have an impact and look, too, the israeli strike iranian assets in syria

all the time with no response. david: i didn't realize that we were not doing that. we were not going after their financial interests. a lot of new yorkers, by the way, are dreading the coming u.n. general assembly because the streets get more crowded than usual. it's a big mess. is there any way we can keep the iranians from coming there? it is on u.s. soil. i know it's historically open to all parties no matter how obnoxious they may be, but what about keeping iranians out of new york? >> yeah, it's possible. i don't think it will be done because of just what you said, it's kind of considered basically a diplomatic immunity zone to bring all these world leaders together and of course, iran has a big stake in terms of some of the happenings in the middle east now. but i hope that iran finds a very unfriendly audience in the u.n. i hope the people, you know, like knee-jerk blame america stuff is getting pretty old when all you have to do is look at yemen, for instance, and see that the iranians overthrew the legitimate government of yemen and put only military aid in there and no humanitarian aid.

really bad nation doing bad things. david: quickly, what do you think their next move will be if we just keep on the economic track and don't do anything militarily? >> it will be something else. it will be another tanker seizure, another strike somewhere. david: do we have to wait for an american to die before we do something? i don't want to wait until an american dies. i want to stop them from killing americans. >> yeah. that's my concern, too. because that will be eventually happening, more than likely, and then we will be forced to respond. better to punch the bully early and shut him up. david: congressman kinzinger, you make a lot of sense. appreciate it. take a look at the futures. markets are up after having been down for most of the morning, though they have lost a little steam. they were up in the futures about 58 moments ago, now they're up 40. still a good sign, all the indices are up. we'll see what happens in about 14 minutes when the markets open. meanwhile, the american airlines mechanic who allegedly tampered with a plane before takeoff had ties to isis and propaganda from the terror group on his phone.

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kristina partsinevelos has more on this one for us. >> that's about $2.2 million worth of ads in just two weeks they're pulling according to ispot, a company that measures advertisements. why they are pulling it is because there's still no final word as to the safety of these e-cigarettes. they are still investigating. we know there's been seven deaths, 400 people that have been fallen ill after vaping. we have talked about this before, the big thing is what is the issues smoking vaping products with thc, is it nicotine or the black market for all the flavored goods. we know juul is one of those major advertisers. their products are being pulled from shelves. the flavors are now illegal in the united states, india banning all e-cigarettes. china pulling a lot of the e-cigarette advertisements from retailers. you are getting it across the globe. those companies you mentioned, viacom, cbs, warner media, said they may put it back up if the research shows it's not harmful. juul, though, still advertising

themselves as an alternative to cigarettes. david: you're on "bulls & bears" today? >> oh, no. david: investigators uncovering a disturbing connection with the american airlines mechanic who allegedly sabotaged a plane. tell us about it. ashley: 60-year-old abdul alani is being held without bond for damaging an air data module on a flight that was due on july 17th to go from miami to nassau. this individual, prosecutors claim, had sent video depicting people being shot to an individual, so telling that individual that he wanted allah to cause harm to non-muslims, claims his brother is in isis and at one point said he needed to fly back because his brother had been kidnapped. all of this could be fantasy but there's no doubt he's charged with tampering with a plane which is incredibly disturbing that one mechanic could do this. thankfully a member on the flight crew noticed something was wrong. the flight was canceled. prosecutors not quite sure

whether he cannot confirm he has any relatives in isis. none of what he's accused of other than tampering with the plane -- david: that person on the flight crew spoke up. people, if you see something, say something. this guy did, he might have saved a lot of people from dying. thank you. let's take a look at the futures. they are up, they were trading down for most of the morning but they turned up on good news from china. there are these preliminary talks before the october main talks, before trade leaders, and that is good news for the markets. we've got the opening bell coming up after this. at fidelity, we believe your money should always be working harder. that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity.

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advantage prescription drug plan members saved an estimated $6900 on average on their prescription costs. so call a licensed humana sales agent today at the number on your screen, to see if you're eligible to enroll today. and say yes to getting the right health care coverage without having to wait for it. david: attention, gadget heads. soon you are going to be able to make campaign contributions through your device. susan, i'm not sure about this. it's not only this device, it's also alexa, right? susan: you say hey, alexa, i would like to donate $500 to president trump or $500 to elizabeth warren. that will be voice-enabled on your speakers and alexa-powered devices in the future according to amazon. but what's interesting is who they deem as principal campaign committees. you have to have that designation in order for that to take effect on these alexa devices. it's not apparent who amazon actually considers deemed worthy

for these alexa donations. so the eligible candidates, you have to of course have a u.s.-based street address, u.s. bank account, credit card, et cetera. david: well, as you were talking, we had the opening bell ringing down on wall street and the person ringing the bell, i think it's on the nasdaq side, right, andre durant, ping identity ceo. their ipo is coming out today. we will have them on in the 11:00 a.m. hour. ceo of ping identity. there's reason to cheer today, by the way. the markets are doing pretty well. you see some red on the screen but the majority is green, as we see an up market of about 30 points, as the market opens on the big board. let's take a look at the s&p, see if it's all the way through the indices. the s&p is up about .15%. not a huge opening but again, considering it was down most of the morning premarket, that's a good thing. and nasdaq is the healthiest of all the openings, opening up about a quarter of a point.

17 points, to 8,195. take a look at oil. it's up a little bit. remember, we had been down for the past couple of days as tensions seemed to ease a bit in the mideast. now tensions may be racheting up a little bit as the iranian foreign minister said some nasty things about the united states and saudi arabia. that sent shivers a little bit in the oil markets and they are up about 47 cents for a barrel of oil. u.s. steel. that is the big individual stock story. huge company, of course, they did well initially with the tariffs, steel tariffs on foreign steel, but eventually as the world economy began to slow down, partly because of trade tensions, that put an edge on steel as people stopped their orders for steel. u.s. steel is now down 11.5% in fast trading markets to $10.92 a share. but now it's at 12.25% loss for

u.s. steel. joining us, michelle mckinnon, susan li and ashley webster. michelle, you have been consistently bullish. what could turn you bearish right now? >> i would say the consumer. the consumer continues to be strong, the consumer is the backbone of this economy, of america, and i think if i saw the consumer slow down in regards to retail sales, if i saw the consumer be less optimistic, i would say that would be a cause for concern. david: although we have to say that yesterday, despite all the doom and gloom that we have been hearing from commentators on air and everything, we still are the strongest economy in the world. it seemed like the fed was saying that. susan: that's right. by the way, one of the main governments that still pays you for holding some of the debt that the country owns. but expected to show the slowest growth since the financial crisis. we are only looking at global growth of 2.9%, the worst in ten years. that also justifies why the fed had to cut interest rates

yesterday and they might cut again, 60% say they might cut in december this year. david: in fact, it was powell's statements after the initial figures came out of the rate cut where he suggested that if the economy slows more, they will be more aggressive, maybe not cutting rates specifically but broadening -- ashley: they will have to be. it's interesting, 2.9%, europe would kill for 2.9% growth. it's barely growing at all. but there's no doubt, we are the only game in town. our economy is doing fine. there's mixed data but overall, there's been more hopes in the housing sector but the fed is going to have to keep cutting just to compete with such low rates around the world, especially in europe. the strong dollar kills you, right? david: but our economy compared to europe, take a look at european markets right now. i think we can put that up on the board. they are up right now. that's a good thing. but you look at what's happening in germany which had a bad quarter, negative quarter. you look at a negative quarter in the uk. michelle, i'm wondering why would you think there's some

bargains to be bought in europe right now? >> i'm laughing only because let's face it, guys, you don't get good prices with good news. without question, europe is trading at historically low valuation, they have a higher paying dividend. i'm sure if we sat here in 2008 and 2009 with all the terrible news, not that i'm saying it's similar, but still, you've got to think about those similar motions, similar reactions when you look at all the bad news. that's where you get good prices. susan: also, if you look at it, you should be avoiding dollar assets because the fed is so obvious that they want to weaken the currency, the u.s. dollar, you might as well look elsewhere where you might find bargains like europe and outside of u.s. borders. david: but i'm a hard sell on this. i look at what they're doing with regard to their economic policy. they are going in the wrong direction. susan: for now, though. for now. david: they're not lowering tax rates, they're not deregulating. in fact, you have massive regulators in the european union

who were reaching over the pond -- ashley: the central bank only needs to do so much. christine lagarde will be taking over the ecb, says you can only put so much fairy dust on this. she's calling on individual governments, germany in particular, to do more on the fiscal policy side. susan: they have the power over their own currency. ashley: they still try to help their own economy. susan: germany has benefited from a cheaper euro. has everybody else, because they're slowing down? probably not as much as germany. >> here's the thing i think you're missing. you've got a lot of companies overseas, particularly in europe, you have multinationals in europe. let's pick shell. shell is a multinational company that has global sales that is trading on a much lower valuation to exxonmobil. which has very similar revenue. to me, it's not like shell gets all its business from europe. it's trading at a lower valuation, a better yield. those are the kind of opportunities i'm talking about. david: i'm going to switch to some music for stuart's ears.

he's not here but he would love to hear about this. microsoft is buying back shares and hiking the dividend. michelle, shares of microsoft are up 36% this calendar year. would you buy it? >> i think it's very important to still have tech. we own it in our broad-based etfs growth sector. would i buy a tremendous amount, i'm not sure. it's obviously had a massive runup. i think tech is still important to have in the portfolio. i certainly wouldn't back off of it. david: you are talking about facebook. it's not only microsoft. susan: but microsoft is doing some financial engineering because they actually haven't finished off the 2016 share buy-back program and are adding another extra on top, bumping up the dividend by 11%. you can do that when you're worth a trillion dollars and there aren't that many bargains out there to spend your cash. david: on the other hand, if you are spending your money not on building, investment, sending it out to shareholders, that's a problem. ashley: it is a problem. people would like to see that

money used to build the business but shareholder value is tremendous. the stock has quadrupled in five years and as you say, it has reached a trillion dollar market cap. impressive. david: what's impressive is the market is up 80 points right now. the dow jones industrial average is up 80 points. again, for most of the early morning premarket activity, we were seeing negative numbers. that seemed to turn around on news from larry kudlow on "mornings with maria" and others that trade talks were improving with the chinese. we'll see what happens there. meanwhile, olive garden, parent darden restaurant sales, coming in lower than expected. take a look at what's happening with the stock, it's down about -- over 4.5%. fed ex, remember what happened yesterday, a really bad day for fed ex. today, kind of flattening out. figures $150 is a good place to stop in the downward movement. investors think that for now. check roku, down again on new streaming competition, down

just a tick. look at home builders ahead of existing home sales. that comes at the top of the hour, about 10:00 a.m. eastern time. it's a mixed picture on home builders. they are waiting for the numbers to come in. great stuff, everybody. thank you very much. now this. facebook chief mark zuckerberg has a plan for moderate internet regulation. that's what he's calling it. he's going to be on capitol hill today to pitch it to members of congress. joining us is jim anderson with social flow. his firm helps companies with social media. what's interesting, today is the hearings but yesterday lavent night, not only was he wining and dining but was being wined and dined by a lot of politicians. it was senator mark warner had a dinner for him where the wine was flowing. there's something unseemly, mark warner will be introducing legislation will social media, yet he's being wined and dined and wining and dining zuckerberg right before he introduces this stuff. that doesn't look right. >> it's such a better look for

facebook than sitting in front of the camera uncomfortably surrounded by all of the house or senate and you know, all the cameras. it's a much better venue for mark zuckerberg to sort of get out there, have some one-on-one relationships, build relationships on both sides of the aisle. david: don't get me wrong, i think it's a smart move for zuckerberg. nobody is saying this guy's not smart. it's very smart move by zuckerberg. but for the outsiders, for us civilians outside of the world of tech, it looks unseemly. this is a guy who is hob-nobbing with politicians who are supposed to be regulating him, coming out with regulation that will affect him, doesn't look right. >> i understand that. don't make a mistake, he will take his flogging. facebook has so many issues. they are playing whack-a-mole. they have antitrust concerns which is really the umbrella concern he's most concerned about. you have privacy, you have alleged election interference, you have alleged bias against certain political views, you've got the facebook libra cryptocurrency we have talked about. he's got so many issues he's dealing with. i'm pretty sure those meetings

are not all happiness and light. david: bottom line, we always see it whenever he's facing off with congress, you say it's uncomfortable for him but i think it's much more uncomfortable for the politicians who don't know enough to really carry on a conversation with him. >> that's a great point. this is a complicated sector. he obviously has built a company worth more than $5 billion. we have seen time and again most of the regulators and congressional leaders don't necessarily even understand how his business works. david: great to see you. thank you very much. more on mark zuckerberg coming up at 11:00 this morning. we will be talking to south dakota senator john thune. i want to know what he wants to hear from the facebook chief during his trip to d.c. today. also at 11:00, president trump trying to appeal to blue state voters with trips to places like new mexico and california. is this just a waste of time? we will be asking trump 2020 campaign press secretary kayleigh mcenany coming up. up next, we have florida senator rick scott. he's fired up about medicare for all socialized medicine.

he says the american people deserve to know exactly how much these proposals are going to cost before we vote on them. more "varney" coming next. i get it all the time.

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that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org. david: check on the big board. it's pulled back a little bit. it was getting a little out of hand, considering it was negative for about the three hours preceding the market opening. it went up to about 80 points positive on the dow, it's now about 51 points to the positive side, 27,198. it's day three of the gm workers' strike and gm is no longer paying for striking workers' health insurance. it's a very interesting situation. everybody was thinking that this was going to be kind of an easy play here but it may go on a bit longer than expected and the stock is down today. here we go, stuart.

this one's for you. microsoft just hitting an all-time high. there you go. got the trumpets and everything. it's up $2.77 right now. that's a 2% gain, to $141.33. do you know how much it was when he bought it? probably about ten cents. well, you know who to borrow money from. meanwhile, some truly astronomical numbers have been thrown around when putting a price tag on medicare for all. now senator rick scott wants some answers from the government bean counters. senator scott joins us now. senator, bernie sanders has pretty much accepted this george mason study that shows it's going to be anywhere from $33 trillion to $40 trillion over ten years. that's about a doubling of the u.s. budget. that's enough for me. but you want the cbo on it, right? >> first off, when you go to the store, don't you look at what things cost? david: of course.

>> sanders, warren, cory booker, all of them, medicare for all. shouldn't we know what it's going to cost? i asked the congressional budget office what's it going to cost. you would think all those wonderful presidential candidates from the democrat side would want to team up with me and say we really want you to do it because they haven't done it yet. do any of them want to do it, no, because they actually don't want people to know what it's going to cost because then they have to answer whose taxes are going up. david: exactly. we saw liz warren, by the way, even stephen colbert, who is not known as a right wing extremist, pressuring her saying aren't middle class tax cuts -- aren't middle class going to have to have tax hikes as a result of this and she wouldn't say. if she does, by the way, i think we are going to have a walter mondale moment. remember in 19 -- was it 1984, when ronald reagan was running for re-election, sort of bragged about the fact that he was going to raise taxes. i think we have that clip. let's play that. >> mr. reagan will raise taxes

and so will i. he won't tell you. i just did. david: well, as a result of that, many people say walter mondale lost the election. by the way, ronald reagan did not raise taxes, he lowered them significantly in his second term. i think warren and the others trying to avoid doing a mondale thing. >> absolutely. we don't need tax increases. we need to spend our money better. look, we need to know the number. i'm asking right now, national television, elizabeth warren, join me in the letter, bernie sanders, let's get on this. let's make sure the cbo tells everybody so that you can tell everybody exactly how much their taxes are going up because one, your taxes are going up and your health care will be worse because the government doesn't do a good job. david: i think it's a terrific idea. remember that nancy pelosi line, we'll read it after we vote for it. we should know how much it's going to cost before any chance of voting on it. before you go, senator, you're

concerned about the government buying drones from our adversaries. i didn't know this was happening. tell us about it. >> well, do you want your adversary to be spying on you? david: no. >> we are buying drones from china. think about that. our federal government is buying drones from china, then china has all that information so they can spy on us. how crazy is that? so my bill would say we're not doing this anymore. we're not buying drones to spy on us from our adversaries. china is clearly an adversary. there's no ifs about it. we don't want to do business with huawei. david: have you heard any response from the pentagon when you ask them about this? >> everything i have known so far, people are very interested, they get it, they understand it. they want to make sure there's good american product. there will be american product if we buy it. it's pretty simple. david: i have a very simple last question. you were governor of the great state of florida. now you are senator from that state. which job do you prefer? >> i like both of them.

david: oh, come on. you're hedging. >> it's just a different job. i love my job as governor. i got to solve state problems and now i get to work on, you know, on national issues and international issues. this is a great job. i get up every day excited about it. david: you still get to file your taxes in the state of florida where you don't have an income tax? do -- >> that's right. yep. i file in florida and hope everybody moves to florida. 500,000 people moved last year. it's the best place to live. david: i don't know if it will fit 300 million people but i agree. it's a nice place to live. great to see you. thank you for being here. appreciate it. check the dow 30 stocks. they are up, it's a nice gain on the dow, up 50 points to 27 -- almost 27,200 right now. a lot of news this week on streaming. companies are spending hundreds of millions of dollars to land classic tv shows like "seinfeld" and "the big bang theory" but which streamer will come out on top? we will ask a top tech watcher, next. orlando isn't just the theme park capital of the world,

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david: take a look at some of the streaming stocks, as netflix pays about half a billion dollars for "seinfeld" and hbo shelled out $600 million for "the big bang theory." it's kind of a mixed situation right now. joining us is market watch tech editor jeremy owens. great to see you. what do you think about this?

is it a smart use of money? >> for netflix to go after "seinfeld"? you know, the thing is, those kind of programs are not going to attract subscribers. for a service like netflix, which already has a lot of subscribers, that will keep them on. the problem with all of these streaming services coming on together is that people could churn through them. i'm going to have netflix this month because i want to catch up on "orange is the new black" and then i will go to hulu to catch up on this one and then i'm going to cancel that and go to this one. the way you combat that is to have some of these shows that people will always watch even if they're not watching anything new. they will turn on "friends" or "seinfeld" or something they have already seen because it's funny and comfortable and they will stick around and not churn out. so companies like netflix that already have a lot of subscribers need those type of shows. i don't see it as much for something like peacook, nbc's new streaming service. nobody will pay nbc a monthly fee to watch "the office." david: good for netflix, bad for nbc. take a look at apple, if we can. the iphone 11 comes out

tomorrow. reportedly preorders have been really good for apple. it's down a little bit but just a tick, $222.50. what do you think about the iphone 11? preorders look good, but could that be misleading? >> well, sure. the preorders look good means that there are certain models that are pushed out to longer delivery times. apple could totally do that. there is no visibility to see these preorders are actually doing well. one way we have always known, usually preorders go off on friday, apple will put out a press release on monday if there's anything they can claim as a record. we didn't get a press release monday. i don't think they're spectacular. i'm sure they're fine. david: okay. all right. i want to talk about 5g for a second. it is being rolled out, we know china is way ahead of us in terms of the rollout. but other countries, switzerland in particular, is moving ahead with 5g. nevertheless, there are concerns. serious concerns by politicians there about radiation, the way you beam out 5g carries a lot more radiation than it does with

our regular system now. is that a concern for you? you are a tech guy. you deal with these things all the time. are you concerned about 5g radiation? >> not in the least. you know, we went through this with smart meters out here in california, you know, it throws off more. eventually we will get to the point where we have to start regulating this. we do regulate it but it's not at a point where i'm scared of it. david: great to see you. thank you for being here. appreciate it. we have breaking news. walmart president and ceo doug mcmillan was just named chairman of the business roundtable. you remember they came out with this report yesterday suggesting there's a slowdown in the economy. he's going to be replacing jpmorgan's jamie dimon, who has been chairman of the roundtable since january 2017. dimon is going to remain an active member of the business roundtable but again, they have been pouring a little cold water on the economy. we will be talking to other guests about whether that's the right thing to do. secretary of state pompeo, meanwhile, says iran is responsible for the attack on

saudi oil facilities. president trump's military options are not off the table. here is the question, though. could we be heading for any kind of ground war with iran? general jack keane is coming up on that. plus every time you fill up your car with gas, part of the tax you pay goes to highway maintenance but as of now, electric cars getting a free ride and anyone who buys one gets a hefty subsidy from the government. senator john barrasso wants to change all that. he's going to tell us what his plan is in our 11:00 a.m. hour. check the big board as we go to break. markets are up today, very nicely. an important piece of economic data is coming up at the top of the hour. we are going to get the latest read on existing home sales. that could change either positively or negatively the way the market is moving now. we are going to break the number down for you, that's coming next, right after a short break. at fidelity, we believe your money should always be working harder. that's why your cash

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david: nearly 10:00 a.m. on the east coast. 7:00 a.m. on the west coast. we're about to get latest read on existing home sales in august. couple stocks stand out. microsoft hitting all-time high today, along with the market it is up. oil is up tick as tensions in the middle east seem to be getting more tense but u.s. steel, a big story of the day. that sort of rockefeller stock as we call it here, down significantly double digits. we just got numbers on existing home sales. susan? susan: better than expected, 7.9 million homes. we were expecting 5.3 million. better than expected. inflation story and up tick we're seeing in housing. existing home sales represent 90% of the market. july was a better number as well after what we called a disappointing spring selling season. interest rates were up over 1%

month over month. that is encouraging. david: it is encouraging. susan: housing starts yesterday seeing the biggest gain in august since 2007. so the housing market might be bumping up once ben. david: once again predictions of a falling economy looking badder, worse and worse as we go along. we got the latest read on mortgage rates. ashley, interesting number here. ashley: an uptick. an uptick nearly the biggest uptick in a year. 3.73%. david: still very low. ashley: still very low. 3.56 last week. so there is nearly a year of, first uptick in nearly a rear. there is positive news, purchase applications up 13% year-over-year and residential permits over 12% year-over-year. the demand is there, even if we saw an uptick in mortgage rates. david: talk to a guy selling his house. our own gary kaltbaum is with us here. >> at a good price. at a good price.

at a good price by the way. what is the question? david: overall existing sales numbers, pretty good. >> i think housing numbers are fine. look, you know i have never called for recession in spite of many calling for recession and depression. i think we're pretty decent here. my worry has always been we're not immune to what is going on around the globe. there is some issues in europe. there is issues in asia. of course the trade war and all that other stuff. something has to be watched closely. for me, there is no way we're going into recession when the market is at or near new highs. the market will flush it out first. if the market is down 10 or 15% we'll think about it but i think we're in good stead here. david: you see pockets though. housing is a good pocket or at least the month of august. you look at the pockets of u.s. steel and fedex. >> of course. david: there are individual pockets of concern.

are they harbinger of the economy. >> markets all-time high. david: talking u.s. steel. we're looking at it, down 13 1/2% today. of course they benefited initially from the tariffs on foreign steel but as those trade concerns slowed down, world economy, people stopped buying as much steel as they were. that is what is hurting the company now. >> look there is a bear market in steel. something that has to be watched which really has not affected the overall, especially here. i'm not going to say it is company specific. if you look at nucor, some other steel stocks, not very good, even though u.s. steel is much worse than others. but on the whole, i think we're in decent shape. and now you have our central bank after 10 1/2 years and full employment, and actually says

yesterday, they will have no problem printing money even if we don't go to 0% or have any trouble. markets absolutely love that the wealth effect will stay in full gear. that helps the economy also. david: president trump, for one, was not very happy with a quarter basis point cut. he thought there should have been a bigger cut. what do you think about that? >> well president trump, well, candidate trump when obama and yellen were at 0% was yelling at screaming at them being too easy. now all of sudden they're two tight at 1 and 3/4. david: there is a difference between 0% and one and 3/4 of a percent. there is significant difference. president obama had 0% for most of his presidency. that gave him a big leg up to do a lot of other things. >> you won't see me arguing. i can't stand that there is 0% screwing savers. i think the president should

leave well enough alone. 1.75 on fed funds and ten year. that is easy money. powell as much as i can't stand the fed is in line with the markets. david: he is is not line with what is happening in the world? do we want him to be? >> we're not supposed to be. because somebody is at negative rates means we should be at negative rates. david: right. does it mean that we should be lower than what we are now. >> we have never, ever, had to be in line with everybody's rates across the globe. there are some countries with rates at 8%. david: gary not listens. i didn't say in line. should go to negative. should we lower ours so the dollar makes our goods more competitive than they are right now. >> i think around here is pretty darn good. the economy is sound. who knows what is down the road. markets are acting fine. i think the president should back away, and leave well enough alone. i'm a big believer when things

are going right, less is more. david: you know what, gary, generally i agree with you. i like the pressure the president is putting on get. they deserve the pressure. they might do what they didn't do yesterday, not cut at all. that would be a concern if they didn't cut at all. at least there was a quarter percent cut. >> watch the 10-year yield, if it stays here, no reason to do anything. if yields start tanking again, they have to play catchup. david: gary, good luck selling that house. >> see you tonight, good sir. david: absolutely. on bulls and bears at 5:00 p.m. president trump says he will use the epa to crack down on san francisco's homelessness problem. he said the waste from homeless people, used needles is creating environmental problems. matt ma cove yak, potomac group

president. you're from austin, texas, nowhere as bad as it is in san francisco but do you think the president is on the right track here? >> i do. the homeless challenge in the major cities around the country is gets worse. think about this statistic. california has the largest number of individuals than any other state. three quarters don't have shelter. new york state, only 5% don't have shelter. california is problem totally different scale than any other place in the county. l.a. county last year saw homelessness increased 12% in one year. after passing a billion dollar bond in the city of los angeles in 2016. after passing a tax increase of 300 million a year over 10 years in los angeles county in 2017. david: matt, let me get to you talk specifically about the epa. >> sure. david: the epa was set up to regulate those things hurting public health. i would argue, i think the

president make make as good cas, public health is now endangered by simply the irresponsibility of these city leaders to clean up the streets? >> no question. public health and public safety are both threatened by large homeless populations that are allowed to do whatever they want, wherever they want, whenever they want this is absolutely the case in places like los angeles and san francisco. this is a novel approach i think the trump administration is taking by looking at this through a pollution lens. the left claims to care about the environment, claims to care about things like beautification in urban areas. let's see if they put their money where their mouth is with the trump administration and my guess is they want. david: we saw how to turn around in homeless crisis in 1990s. mayor giuliani did it near had new york city. is it was not humane for people to live and defecate on the street. it wasn't humane for them. it wasn't healthy for the

homeless. we'll get you into a homeless shelter but put you away. you will not sleep on the streets. he cleaned up the street for 15 years. it was fine until things began to change with de blasio. >> no that's right. obviously homeless populations are complicated there is drug and alcohol abuse. those need treatment. they need to be off the street. people with mental health problems. they need to be off the street. they need shelter there is no question. that is part of the reason why the trump administration in june, president trump signed an executive order to ease affordable housing development. they're doing what they can at the national level. ultimately cities and states are going to have to step up. david: there is a word that these city and state leaders have to know, intervention. you don't allow people to continue to live in horrid situations if you care about them. if they really care about the homeless they would intervene to get them off the streets. matt, thank you very much. good stuff. >> thank you. david: facebook founder mark zuckerberg is in capitol hill,

meeting with lawmakers, to make a pitch for moderate internet regulations. hillary vaughn is with us. hopes they will be moderate changes, right? reporter: that is kind of the point of this two-day trip with zuckerberg to have face time with lawmakers behind closed doors, talking about potential future internet regulation. last night senator mark warner organized a dinner with a group of senators including senator richard blumenthal who publicly called for facebook to be broken up. blumenthal told fox earlier this morning that the meeting went great. this is very interesting. this is rare trip tore zuckerberg who has not been on the hill since he testified in a public hearing before congress last year. they want to talk about a number of issues. election security, antitrust concerns, potential conservative bias and user privacy. this afternoon zuckerberg will meet with one of the loudest skeptics of his company, senator josh hawley who has been outspoken about conservative bias on the platform and

possible censorship. hawley called for a third party audit of facebook. that is likely to come up in his meeting this afternoon. facebook requested a meeting with senator brian schatz who has been very critical of facebook's cryptocurrency libra. so what happens behind closed doors, we're waiting to find out. it is very clear, david, that facebook's zuckerberg really wants to get face-to-face time with these lawmakers in behind closed doors. david? david: i would like to be a fly behind those closed doors, to hear what is happening. hillary, thank you very much. iran's foreign minister has threatened quote, all-out war in the event of u.s. or saudi military strikes. this threat coming as president donald trump promises to increase sanctions on iran. what are we going to do about all this? we'll be asking general jack keane later this hour. i want to know what's up with the u.s. chamber of commerce talking down the economy? our economy is strong so why are their numbers on small business that they just came out with so negative? we'll be asking them.

meanwhile, holiday shoppers are expected to spend over one trillion dollars this holiday season. that is according to deloitte. our top retail guy is next. does he buy those numbers? we'll ask him right 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. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands?

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david: checking the big board. we're holding steady on the plus side for the dow jones industrial average, up about a quarter of a percent point, 70 to the plus side. 27,217. check u.s. steel. all this is happening with the dow despite the fact that u.s. steel is taking a huge hit today, sort of like what happened to fedex yesterday. it is down 13 1/2% more or less right now, down to 10.77 a

share. steel purchases are going down worldwide as a result of trade tensions. initially the trade tariffs put on foreign steel helped u.s. steel. now it is pretty clear that the trade tensions are causing the opposite to happen. check overstock taking a hit, patrick byrne talked about his problems right here on "varney & company," we were the first place on television any way he talked about what had happened to him that eventually led to his departure from the company. he sold 5 million shares over the past three days. and that has led to a problem for the stock itself. it is down about 4% right now. of course this is a stock that trades four, 5% either way on a single day quite often. there might be some other factors here. he said he will help recapitalize the company if it needs it in the future. meanwhile the holiday shopping season is around the corner and deloitte is expecting sales to trop one trillion dollars. let's bring in jerry store --

storch, a retail icon. do you believe the figures? how can you tell what a consumer can do two months from now? >> no one can forecast the future but the best indicator of the future what is happening right now. we say in retail the trend is your friend. sales are up 4% year-over-year. if i were a betting man, absent external forces you will see sales up 4% next few months. deloitte said sales up 4 to 5% range. the consumer is strong. they have been strong for several years. employment near full employment. we saw jobless numbers today, freight again. david: right. >> people are working. when they work, they have money. when they have money they spend it. david: pretty simple. another one for you, gerald. fedex, profits down this quarter. coming after they cut their business ties with amazon. what is your take on fedex? >> well, amazon is a big deal. amazon is over half of e-commerce in the u.s. alone.

and so they couldn't come to terms on pricing. so fedex parted ways. that means that fedex is not taking part now, at least not fully in this whole internet revolution. where the growth is in consumer sales. in that same august report i mentioned earlier on retail sales, the internet sales were up over 16% year-over-year. it was just incredible. now fedex has lost that best from amazon. also it's a global company. they're taking a big piece of that global slowdown we've seen even though the u.s. is more robust. internationally it is not so strong. so they're seeing that happen. if anyone is hurt by tariffs got to be a company that makes its living through trade which is what they do. david: fedex reinvented itself time and again very successfully. do you think they will do it again here? >> fred smith is one of my business heroes. every company goes through a rough patch but they always offered tremendously innovative services. i'm sure they are working on that now.

everyone is chasing them since they began. remember when they first came out with two-day service. everyone raced to one-day service. everyone raced to one-day service. then we get there by 10:00 a.m. 10:00 a.m. a.m., whatever it is. they are a fine company. they made the business decision that amazon was not profitable at levels amazon wanted. amazon has become their competitor. they are identifying them as such. amazon is shipping the packages themselves. david: gerald storch, thank you. >> my pleasure. david: we'll talk to the ceo after company out with a debit card for kids? would you want your kids -- their aim is teach youngsters about saving money. that is a good idea. i don't know, are you addicting kids on debit cards, credit cards early on? we'll can for hem. the governor of new mexico wants state residents to be provided free college tuition

with the growing list of democrats wanting free college tuition. the question as always, is, how will they pay for it? after this. ♪ have fun! thanks to you, we will. aw, stop. this is why voya helps reach today's goals... ...all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these? oh... um, we're more of the plan, invest and protect kind of help... sorry, little paws, so. but have fun! send a postcard! voya. helping you to and through retirement.

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david: more free stuff. new mexico out with a plan to offer free college for state residents. kristina partsinevelos is here with more on this. how does it work? reporter: before we get to new mexico we have to talk about the fact that student debt levels are astronomically high. it hit a new record. for a bachelors, debt level is

$29,200. it increased 2%. the growth rate is little slower. there is good news. if you live in connecticut you have the highest amount at almost $39,000 worth of debt. if you live in utah it is the lowest. often we hear a lot of people talk about the rising debt level. politicians like elizabeth warren and bernie sanders saying we should wipe out student debt at the state level. that is where the new mexico part comes in, they're taking it into their own hands. new mexico proposed a new free education for all residents regardless of your income. tough attend 29 of the public institutions within the state. they plan to pay for this, the cost is 25, $35 million, the estimate, will pay for that through oil revenue. it still needs to pass legislation but it would be free tuition at these public institutions. new york has a similar plan where it's free as long as you don't make more than 125,000. david: that word free is thrown

around easily. it is not free to the taxpayers who have to bail out the kids who have student debt or who have to pay for the thing, right? >> precisely. that raises a point, critics arguing that tax dollars go up, the fact maybe money should be better spent towards health care, or, you opt to make this choice to go get a higher education over the lifetime, person with a bachelor's degree ends up making more money. you have to pay the debts now but later on you make more. this is ongoing -- but it is a problem though. $1.6 trillion. expected to go up to 2 trillion for all student debt. we hit the peak or maybe not the peak but the highest levels. david: you remember how much the tuitions are really worth in the bottom line. >> we can get into the debate of government subsidies. why are they giving money to schools. david: we can indeed. kristina. good point. united auto workers strike is it continuing.

gm dropped health insurance for those on strike and the people on strike only live on 250 bucks a week. how can you live on that. boeing chief will not allow the boeing 737 to take to the skies until he i am heavily, he is a licensed pilot, flies the plane. ♪ imagine a world where

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♪♪ ♪♪ ♪♪ ♪ baby you're a rich man, baby you're a rich man too ♪ david: stu, likes, baby you're a rich man?

ashley: i believe so. david: surprise, surprise. it should be the theme song for this show. it's a good day. a good day to get rich. the market is up 84 points right now. it was down significantly in premarket activity but turned around when there was good news on china trade talks. that is always what tips the scales at least for the past year or so. market, dow jones trading at 27,232 right now. the u.s. chamber of commerce out with new data that says the china trade war is hurting medium sized companies. let's bring in neil bradley, the u.s. chamber of commerce executive. good to see you. thanks for being here. there is so much good news. why so negative? >> well there is great news on the consumer side. generational low unemployment, rising wages. consumers are spending money. you go to the business side there is less good news, right? so big businesses are drawing back on investments and fixed property for the first time now we're seeing middle market companies which are 40% of the

economy, 40 million jobs, who are expressing uncertainty about the future, what they're cite something uncertainty with the trade wars. 40% of them say that tariffs are hurting their business. david: you know what is not uncertain about the future, neil, are millions of investors all around the world who have nothing but bad news report on their economies who bring their money here because they see a booming u.s. economy with the best jobs market i have ever seen. >> no question we're doing better than relative to the rest of the world but we should be doing better here at home. policy decisions are holding back economic growth here. at the chamber we don't want to settle for two, 2 1/2% economic growth. we think we should be at 3%. david: i think the president thinks 5%. he thinks you have to do something about the chinese who have been eating our lunch for decades? >> sure. he deserves credit taking on the chinese. david: what is he doing that is bad policy decision? >> it is escalation. imposing tariffs, getting to the

table, threatening to impose additional tariffs whether on china october or in december. he currently threatened to do, or tariffs on automobiles out of europe or japan. this is the sword of damocles -- david: we signed a partial trade agreement with japan. my point is, neil what do you do other than the president is doing to get these countries to act the way they should act toward us? >> there is lot of things we can do to rein china, including with our allies. frankly we should have stayed in the trans-pacific partnership. we would have had allies surrounding china to challenge them economically. you know, there is a lot of things that we can do. there are certain things that we should be doing right now to help the economy. one is halting the escalation of the trade war. two is congress passing usmca. congress has a lot of responsibility here too. david: absolutely they do. do you think that will pass before the election? >> i do. i think it will pass before the end of the year.

david: wow. >> i think it will pass before the holidays. david: really? that is one reason we love to have you here you guys have great information what is going on inside the beltway. nancy pelosi does not want donald trump to have any win before the election this could be seen as a beg win for the president and his trade push, it could also provide us with leverage dealing with china. why would she be willing to give him that win? >> i give a lot of credit to the president and ambassador lighthizer and nancy pelosi. they're actually working through issues trying to come up with something that both sides support. you saw statements out of speaker pelosi last couple days, that were very encouraging. all sides are entering in good faith. one thing we at the business community, chamber are asking politicians to do, put the american people and economy first. at least with respect to usmca they appear to be doing that. we have did over 90 events with members about congress in their districts over august. members of congress, whether they're democrat or republican want to vote for this bill. i'm confident that they are

going to have that chance before we all sit down and celebrate thanksgiving dinner. david: wow. from your lips. before thanksgiving? that is a very optimistic preview what's going to happen. neil bradley, good to see you from the chamber of commerce. >> thanks for having me. david: news on amazon chief jeff bezos is hitting back at his critics saying that the his company doesn't do enough for the environment. they're buying up 120,000 electric cars. they are vowing by 2030 to be powered by 100% renewable energy. we'll tell you about that coming up. the united auto workers strike against gm continues. gm has dropped the strikers health benefits. grady trimble is in detroit. how long can this last? reporter: hey, david. we'll have to see. it is starting to get political. amy klobuchar running for president as a democrat will

arrive here any minute, talk with picketers and meet with them. one of their big concerns they don't have health insurance coverage through general motors. gm stopped paying for that to put pressure on the union. now that means the union starts to pick up the tab under a program called cobra. the problem with that, they have to pay for that out of the emergency strike fund. that could potentially drain it even quicker. it doesn't include health and vision insurance. that is a concern for these people. there is also confusion what is covered and what's not. they will be talking with regional representatives with the union in the coming hours to try to figure all that out to make sure it doesn't affect them and their families as this strike goes on. for now the talks are going on a few miles from here. there hasn't been much that has come out of those conversations as of right now but we'll keep you posted with the latest as soon as we learn any new developments. david: grady trimble, thank you very much. nbc announcing their new streaming service. it is called peacock, not

surprisingly launching in april. no price named yet. roku and netflix were both down on this news. apple has a big reopening of their fifth avenue store here in new york. susan, we remember the glass cube. will this look like anything like that? susan: it has been unwrapped the iconic apple glass cube. it was closed in 2017 for renovations. it has taken two years to get here, reopening on friday to the public, just in time for the iphone 11, when sales officially go online. as you can see here, executives from apple talking to the media. david: you see the logo with the cube around the apple. >> the head of retail, and people, she tooked it off. she took over the job from angela arrons, former burberry ceo. it is bigger and brighter. executives wanted more natural lighting since it is downstairs. it is underground. we have tim cook who will be in attendance tomorrow morning at

8:00 p.m. just in time for the arrival of the iphone 11. preorders are pretty good. retail, bricks and mortar still important to a company like apple even if they are moving into services. david: apple's stock up a tick. oil up 2% amid tensions with iran ratcheting up again. iran's foreign minister is threatening all-out war with a saudi or u.s. military strike after president trump ordered new sanctions on iran. we have general jack keane coming up on this next. the fed cutting rates a quarter point. president trump is not happy. he wants rates going even lower. here is the question, will we see more rate cuts this year? we're asking the one and only charles payne. that is at the top of the next hour. ♪ this is the age of expression.

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david: check the big board. we're in triple digits. the good sign for the markets. good news about china talks helping the market turn around negative figures that we had in premarket activity. we have breaking news on the president's tax returns by the way. new york city's da is coming after them. ash, what are the details. ashley: they filed lawsuit against manhattan d.a. against cyrus vance and according to documents filed in manhattan federal court. basically the democrats through cyrus vance have been trying to get eight years of business and personal tax returns from

maziars, president's accounting firm. i saw a statement from jay sekulow, lawyer for donald trump, says in response to the subpoenas we filed lawsuit in federal court on behalf of the president in order to address the significant constitutional issues at stake in this case. david: that is the story. president trump is suing the manhattan d.a. cyrus vance. ashley: yes. david: big story. president trump is ordering new sanctions on iran after the saudi oil facility attack. roll tape. >> we'll see what happens. a lot of things would happen. if we could have a peaceful solution that is good. possible that won't happen. there is never stronger country military, not even close. david: bring in general shake -- jack keane. foreign minister saying any saudi strike on iran by united states or saudi arabia or anybody else would lead to quote, all-out war. they're free to strike wherever they want but nobody is free to defend themselves, right?

>> well, first of all i don't buy the statement he is making. that is bravado, psychological warfare designed to strike fear in the american people. designed to impact the analysts and decisionmakers that, if the united states responds militarily with a coalition based on what iranians did, egregious act of war in attacking the world's economy. certainly retaliation to completely justified based on that premise, then they're going to, going to all-out war. that is nonsense. why is that nonsense? because the iranians, first and foremost want to preserve power and run their regime. and if they do anything, like they're describing, then, the united states would have no choice but to respond comprehensively against them and

they would lose their regime. they're not going down that road. here is what they fundamentally believed, they miscalculated. they miscalculated all along about the administration. they never expected comprehensive sanctions they put on, that the united states has put on the iranians and it is crippling them. they have negative been in such a hard place before. they have never acted so desperately as, as they're acting now. i believe, after we go to the u.n., lay out all the evidence, we'll get more international support for what the iranians have done because it is a fundamental attack on the world's economy. and also build a coalition to conduct a limited military retaliation. it must take place. the iranians are counting on the fact we will not do that. david: general, forgive me for interrupting but the point is, every time they do something, they don't see the reaction from us i think they fear, some kind of a military retaliation, from us or one of our allies, so they

keep ratcheting it up. first a hit on tankers. they take over tankers. then a hit on our drones. now this hit on the saudi facilities f we don't do something other than tightening economic sanctions against them, won't they ratchet it up yet again? >> absolutely. they have shot down three of our drones. they sabotaged tankers and attacked saudi pipelines and oil pump stations. we tried diplomacy. we increased sanctions. e reached out to them to negotiate. that diplomacy hasn't worked obviously, but the fact is now they have upped their game as we said. they would exhaust their playbook. this is in their playbook. the next thing after the playbook would be to attack u.s. facilities. this is an egregious act of war. this is essential that we respond. they are counting on the fact we will not. david: president says we won't react unless u.s. personnel is

actually injured or killed. i don't want to wait for that to happen. >> that is not true. that is absolutely not true. that is not where the president is, okay? the president is playing this very close to his chest. when he plays something close to his chess, be prepared. that is what is happening here. diplomatic efforts, build a coalition, get support for what the iranians have done. then we have to take a measured response but it has got to be, when we do, when we do take this on, start hitting military targets and also economic targets in a limited way, it has to be consequential enough, david, to deter them. it can't be a pinprick. it can't be what we did to assad after he did the chemical attack and we didn't, we did not conduct a consequential attack on him to deter it. he did another one. it has to be significant enough to stop it. david: we've got to run. but you really lay it down on the line. we appreciate you coming in, straightening it out all for us. we appreciate it. thank you, general. >> good talking to you.

david: good talking to you as always. more breaking news from the markets. airbnb will file for their ipo next year. we've been waiting for this, susan. susan: in a statement on their website, plans to list on stock exchanges next year 2020, making it one of the highest profile market listings debuts next year. they haven't told us where they intend to list. airbnb, has taken in more than a billion dollars in revenue, in the second quarter of 201019. they are making big sales. they have considered a direct listing according to reporting from reuters. they are going to the stock market next year. internally they have valuation calculations. this company internally back in the spring, valued itself at $38 billion. it has been a tough ipo market. we were shelving at least for now they say until october of ipo listing. they're cutting valuations in half. now a quarter of what it was. we'll see whether in 2020 --

ashley: new york city. david: hotel industry is putting a lot of pressure on politicians. they put pressure on airbnb. a new startup launching a debit card aimed at kids. they say the goal is to teach youngers financial literacy are they just getting kids hooked on credit cards? attention, "downton abbey" fans who could spend a night in the iconic mansion from the show. we'll tell you how much that will cost you in the next hour. ♪ ♪ ♪

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amino acids and nutrients, combined with b vitamins, zero sugar, and zero artificial colors. go to 5hourtea.com to buy a week's supply of 5-hour tea. that's a week of more get-up-and-go, feeling alert, and more energetic. if you try it, and you don't think 5-hour tea gives you the boost you need, you'll get a full refund. go to 5hourtea.com. david: some boeing news. this is interesting. faa chief won't certify the boeing 737 max until he flies it himself. ashley? ashley: he is a licensed pilot for the 737 max. he will get in the cockpit and he will fly it. he says he has to do this before the plane is certified, however him doing that doesn't mean it is certified. in fact for recertification one pilot has to fly it from boeing and one has to fly it from the faa. mr. dixon is not a test pilot for the faa he is just doing this to make a statement. david: he is certified for the

max? ashley: he is certified. he will go into the simulator to see what changes were made to the software but interesting development but needs to get recertified as quickly as possible for boeing. david: i admire his courage. a new start up called greenlight launching a debit card aimed at kids. it is aimed to teach young folks to manage financial literacy and parents can monitor it from the smartphone. timothy is here. you know what the complaint is from anybody who had kids. do you want to get kids accustomed to a credit card while in the preattorney era? it doesn't sound right to me. >> it is actually a debit card. david: but it looks like a credit card. >> yeah, yeah, but it is actually like three accounts in one. it is a debit card that the parents have control over so they can choose the account, the stores where the kids can spend. they can choose how much the

kids can spend. it has a built-in savings account as well. and a built-in giving account for parents who want to teach their kids to give back. and very soon here, in a few months, it will have a built-in investing account as well. so it is kind of the multiple accounts all built into one. but it is debit, spend what you have is the mantra and, learn to save because you need to have savings set aside too absorb the unexpected. david: i appreciate new ventures and i hope you, wish you nothing but the best in the future. you have got millions of dollars in people that believe in you, have invested in this idea but when you look at the website that you have, i looked it up. it showed a 10 or 11-year-old girl in front of a bunch of dresses holding debit card. it wasn't anything about saving t was about spend, spend. >> if you look throughout the website, even in the app when you're a customer you can see that it is not, it is not kind

of heavily oriented towards spend or anything like that. it is about essentially, it has choice tracking and allowances. idea of kids learning to perform work and actually earn money that they get, so it ties chores together with allowances. then it has, the debit card so that you know, the kids if they're going on a school field trip or traveling with a sports team or, you know, doing things like that, then the parent actually have the convenience of being able to give them some money but also have control over where it is used and how much they spend. but on the savings account, one really neat feature, one really popular feature is the parent paid interest rate. so the parent can actually set an apy at any amount this they would like. david: wow. >> they have, so some set it at like 25%, 50%. david: i was going to say. that would be my rate for my kids. >> exactly. it is working. the average across all our

parent is 18% and kids just saved over $10 million in the greenlight platform. david: i wish you the very best. you have a lot of support from financial investors. good luck to you. timothy, thank you very much. >> thank you for having me. david: facebook ceo mark zuckerberg is on capitol hill. he will try pitching lawmakers for his plan on moderate internet regulations. here is the question, can he convince hard-line law make that's want tougher regulations on facebook and other social media companies? we'll ask senator john thune. he is with us. president trump wrapping up his trip to california. before that he was in new mexico. seems like he is trying to appeal to blue state voters but is wasting his time there? we'll ask 2020 trump campaign press secretary caylee mcenany coming up. president trump wants to use epa regulations to tack can

san francisco's homeless population. how will that work? we have the a former epa officialing coming up here on "varney." ♪ automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today.

david: check the big board. we were up 63 points. we were up triple digits for a moment and things were looking good but again, think about how we were negative for most of the premarket activity today. nice turnaround when people started talking nice about china trade talks again. that seemed to turn things around. the fed rate cut wasn't as much as a lot of people were hoping for but at least there was a cut. some people were worried there wouldn't be any cut at all. september is historically the worst month of the year for stocks. we, included today, the dow is up 11 of the past trading days so that is actually a good deal. ping identity, it's an i.t. security company and the ceo is going to be with us momentarily.

look at how it's trading now. it's up 21%. they just issued their ipo this morning. that's why the man who is going to be with us, was ringing the bell on the board. ashley: the ipo price was 15 bucks. as you say, nice opening for this company. we'll see. david: a 22% gain for ping, i think they will take that. i want to talk about the fed. president trump was not satisfied with the quarter point rate cut. roll tape. >> well, i think we should do more because other countries have done more. if you look at germany, if you look at japan, if you look at so many others, they're cutting much more. in fact, they're borrowing money and getting paid to borrow money and we're paying interest and we are the most prime in the world. we have this great economy, we're doing better than we have ever done, our employment numbers are the best they have ever been and unemployment numbers also. we are doing great. but we should be cutting. there's no inflation. david: come in, charles payne, host of "making money" on this network.

what do you think about this? >> i thought it was okay. i understand where president trump is coming from, too. i think you can argue a couple things in the sense that you know, there's this thinking you only cut rates when the economy's in trouble. so the idea that president trump and others in his administration, by the way, other thinkers outside are saying that doesn't have to be the rule, why not give a good economy a boost to make it a great economy, particularly when there's no risk right now of inflation. by their own admission, the inability to get inflation higher is one of the big things that worries the fed. they have talked about it. mario draghi really talked about the idea that deflation which we know is much more insidious than inflation, that the idea of trying to stop deflation once you go into deflationary death spiral, it's impossible to stop it. david: the fed can't ignore what's happening overseas as they continue to cut rates into negative territory. >> they alluded to the global

economies that have -- one of the reasons they're doing that is the weakness of the global economy. without necessarily saying global interest rates, the fed talks a lot about the global economy, but you got to understand there's a correlation between those rates, trying to prop those economies and the relationship between the dollar and corporate profits and everything else. david: in the meantime, our economy is still doing great. i mean, the point is you have business -- you have these big industrial lobbying firms, i call them that, in washington, business roundtable, chamber of commerce, talking down the economy. what do you think of that? >> you know, it's just, it's unfortunate. it really is. with the business roundtable, when they came out with their new mission staying it was all about stake holders, not shareholders, my challenge to them is prove it. if it's not about the bottom line, then you should be less resistant to this trade war because you are talking about doing business with a country that has a million people in reeducation camps, a country that's stolen a lot of things from us, you know, so the idea of this is the new business

roundtable and by the way, they will have a new person in charge of it, the ceo of walmart is taking over from jamie dimon, if this is the new business roundtable, show us. don't talk down an economy. by the way, this morning i don't think it was the china trade talks that got us moving higher. it was the economy. the philly fed manufacturing number was phenomenal. inside that number, employees surged, work weeks surged, manufacturing is one of the weaker parts for our economy. but it's not as weak again as they have been telling us. david: they are saying it's in recessionary territory. we also got good numbers on housing, existing home -- >> this week has been mind-boggling for existing new home sales, housing starts, mortgage applications. i mean, if we turn this around, forget about it. we really could be -- that could be the beginning of the next leg higher. david: on the other hand, charles, stay with us, we are looking at u.s. steel right now, way down. what's going on with that? ashley: expecting a first predicted loss of 35, 36 cents

this quarter. expectation was for six-cent loss. they had to battle weakening steel prices, restructuring costs and also, they say you know, look, this was the third steel company in the last three days who have said look, their outlook has gone down and down. the tariffs that were put in place last year, in 2018, have not helped this sector at all because global demand -- david: they did in the beginning. ashley: initially. not now. david: that's the point, whether or not initially obviously the tariffs were meant to help u.s. steel and it did help u.s. steel, but then the trade concerns, tariffs, growing number of tariffs, brought down world trade and that's why people aren't buying enough steel. >> i think world trade was going down before the tariff war. china's economy was growing at 12% and going to the trade war -- david: the tariffs haven't helped. >> but isn't it ironic, we were warned tariffs would make prices go up. we were warned steel prices were going to go through the roof and president trump was picking

winners and losers. same with lumber. we had tariffs on canadian lumber for two years. lumber prices have gone into a death spiral. that's what i mean by deflationary death spirals. these are the things people said don't do these tariffs because steel prices will go through the roof. they went the exact opposite. there are other factors that determine pricing, you know. it's unfortunate but it started happening very shortly afterwards and now it is into the throes of this death spiral. david: the holiday shopping season around the corner. deloitte has a big number for it. lauren: let's bring it home to the u.s. very positive, what recession, what slowdown, what trade war, because between november and january, they are predicting retail sales to rise between 4.5% and 5%. that's more than $1 trillion in holiday sales. it was about 1.1 trillion last year, expected to be higher this year. so again, the consumer right now is not a pocket of weakness in the economy. david: you have been talking

about retail for years, literally. there's been a real breakthrough in terms of the retail market here despite again, all the gloom and doom you hear about brick and mortars, retail is still doing great. >> brick and mortar is suffering but the transition, you look at this retail sales report out most recently, and $64 billion online, $61 billion in general merchandise, obviously department stores have gone down, but just yesterday, kohl's announcing 90,000 seasonal workers. 90,000. kohl's is one of the -- they're in trouble and they announced this. so it really, it's a transition. what i like, even though we are losing retail jobs, those are the second lowest paying job categories so if they are transitioning to warehouse jobs and those things that actually pay more, i'm okay with that. david: talk about fed ex. not much of a bounce-back after the big drop. is this more of a fed ex story than it is a story about what's happening -- >> i love fred smith. i love the idea in college that

he writes his dissertation and the professor gives him a gentleman's c because it could never work out. turns out to be the blueprint for fed ex. good news, he gave the professor a job later on. i do believe that this is a fed ex story. i went and looked at the last nine years. their operating margins peaked in 2016. their rate of growth peaked in 2016. they made an acquisition in a european rival that will not pay off until 2021. they thought it was going to be a lot sooner than that. i think they have been flat-footed. when you don't have a relationship with amazon, when you don't have a relationship with amazon, it is tough. reminds me of having a relationship with the u.s. postal service. these companies take massive hits. maybe it pays off as the rest of the world gets better and demand picks up from these alternatives but without a relationship with amazon -- ashley: that decision cost $900 million a year. they are aligning themselves

with walmart and target. >> sure. sure. david: the stock is down to $150. think it's a buy? >> i wouldn't buy it yet. i don't like the trends i have seen over the last three or four years. if this was just a flash in the pan, i would say it looks intriguing. i got a lot of calls on it yesterday. i'm like no, look at roku. lauren: is it good for ups, what fed ex is saying? conversely, an opportunity for ups? >> amazon has given them both headaches. they are making these massive investments. moments ago they announced a 10,000 electric vehicles they will be buying. it's not from tesla. david: charles, you always end with a bang. >> lot of winners and losers when it comes to amazon. david: catch charles on "making money" that airs on this network at 2:00 p.m. eastern.

never miss a single show. you will make money. facebook chief mark zuckerberg on the hill today. coming up, we talk to south dakota senator john thune. i want to know what he wants to hear from the facebook chief today. and meanwhile, president trump trying to appeal to blue state voters with trips to places like new mexico, california. is it all just a waste of time, though, when you think about california? we will be asking trump 2020 campaign press secretary kayleigh mcenany. the third hour of "varney & company" starting right now.

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sales agent today at the number on your screen, to see if you're eligible to enroll today. and say yes to getting the right health care coverage without having to wait for it. you wouldn't accept an incomplete job from anyone else. why accept it from your allergy pills? flonase sensimist. nothing stronger. nothing gentler. nothing lasts longer. flonase sensimist. 24 hour non-drowsy allergy relief david: apple fans, new york city has been waiting years to get back under the iconic fifth avenue glass cube, it's been closed for renovation. that's the store that they used to have. tomorrow, they are going to have their chance to reopen it.

ashley, tim cook will be there. ashley: that is the rumor. just to coincide with the release of the new iphone 11 release. this store has been closed, iconic store on fifth across from the plaza there, has been closed for almost three years. if you have ever been in -- david: been an eyesore. ashley: certainly has. you go downstairs to get into it. it was underground. they removed a lot of what was there, expanded, rebuilt that space, more natural light. it has been operating in a little store behind where the cube used to be. all that changes tomorrow. as you say, tim cook himself may be there to greet people as they come in. david: we should invite him here. yesterday on the program, we had indiana senator mike braun on the show, talking about the importance of passing usmca for his state's farmers. so when are we actually going to see some progress on this? let's ask senator john thune, republican from south dakota. senator, great to see you. there are a lot of soybean farmers in your state. they have been really hurt by the chinese tariffs.

i'm wondering if they are hoping that the usmca will help them out in what they have lost with china. >> that's the whole for sure. i think most of our farmers believe that any of these trade deals that are pending, the more that we can get those done and open up more markets to american agricultural products, the more demand there will be and obviously, that will change the price situation that we're currently looking at which has been very detrimental for farmers and ranchers. we have seen depressed prices for a long time. you've got these trade uncertainties coupled with now bad weather has made it very difficult to plant in states like mine, south dakota. it's been really complicating for the ag economy but i think usmca could at least, it's teed up and ready to go, we just need house democrats to act on it. it's been 290 days since the president signed it and they have yet to take it up. if we can get that one done, canada and mexico, two of the biggest markets for american agriculture, then get a deal with japan, i think it will isolate china. i think we can -- david: by the way, your number

one crop is corn. soybean is a close second. corn is number one. of course, a lot of people in mexico and canada eat south dakota corn. that's important, too. i just want to ask when, because we had somebody from the chamber of commerce on earlier who suggested we could get a usmca deal passed by both sides, by both the house and the senate before the thanksgiving vacation. you think that's possible? >> that would be ideal. frankly f it doesn't get done by then, i worry it doesn't get done at all. once it bleeds in a presidential election year, the politics just become almost in a way overwhelming. so to me, this has to get done in that time frame. i hope that the speaker of the house can wind up the negotiations that she has going on but this is a deal that just has to get done for the good of the country, not just agriculture, but our entire, all sectors of the economy which benefit from it. david: let me move dramatically to another industry which is

very different. the high tech industry. mark zuckerberg is in washington, he's been there for more than 24 hours, i think, and it's kind of looked unseemly, what's been going on, because he has been wining and dining and getting wined and dined by a lot of politicians inside the beltway, even though there is legislation pending, i guess it's going to be introduced in the next few days, about social media. you think that's proper? doesn't look right from the outside. >> i think what he's trying to do is he has maintained and has written op-eds to this effect, there need to be more federal regulation of the tech companies and i think he's probably trying to shape that to some degree. david: of course he is, yeah. >> frankly, i think what we need more than anything else with companies like facebook is transparency. they use algorithms, artificial intelligence, to customize and tailor everything we see based on specific user data that they collect, and a lot of times american people have no idea how it's being collected, what's being collected or how it's being used.

so we urge them to be more transparent. i hope that he will, his company will lead the way on that. i think he's meeting with a lot of people today on capitol hill, members of the judiciary committee because he's concerned about antitrust. david: he has reneged on his promises before about -- >> he has. that's right. david: you can't rely on what he says. >> no, that's why i think we need to take steps. we need a privacy law which you have consumers have the right, they have, you know, they have to consent to how their information is being collected and used. we need to move forward with that, irrespective of what facebook does. david: great to see you. thank you for being here. now this. facebook is doubling down on video chatting with an all-new portal device. tell us about the details. lauren: speaking of privacy, would you allow facebook into your living room? with this new device, it's the second iteration of their portal. it's about 150 bucks and enables video chat so you can speak with friends and family, and also

streaming can happen on this device. this is a battle for your living room. facebook pushing into hardware but are they tone-deaf about all the privacy concerns? they say now we have this little knob on the device and if you just shut it off, the camera's off, we won't see what you're doing, you can also turn the microphone off. i just think with everything going on, all of these hearings and grillings on capitol hill, are consumers going to say here, mom, here, dad, here, husband, here, wife, here's a device in your living room. david: we've got to say the stock has been doing spectacularly well despite all of these controversies over the years. you never count them out. now this. fans of the tv series "downton abbey" this is for you. the iconic home will be listed on airbnb. can you imagine? we will tell you how much it will cost you. ♪ what a time to be alive.

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david: the new "downton abbey" movie hits theaters tomorrow and the owners of the iconic english castle are listing it on airbnb.

how much per night? lauren: $187. on november 26, you get to stay at the castle but you have to write an essay of why you are passionate about the show, about the castle, then perhaps you can win. what a nice stay that would be. david: $187. lauren: the service you would get? it's going to be competitive. david: yeah. speaking of airbnb, they have just announced a 2020 ipo but years of compounding regulation in new york city in particular scaring off some investors. ashley: the fight between airbnb and new york city has been at a standstill for years. essentially new york city has very strict rules and essentially short-term rentals of most of the apartments are illegal in this city. the city is now trying to subpoena, get this, from airbnb for the addresses of more than 17,000 hosts in new york city because they are trying to find them because what they are doing is illegal.

david: unbelievable. ashley: they also added $8 million to the yearly budget to find these people who are listing their properties. david: it's that kind of anti-business attitude that is killing new york city. ashley: absolutely. david: that is anti-business. just that simple. speaking of ipos, ping identity up big-time. they are a security company that serves companies like netflix. they just opened for trading at the top of the hour but look at this. it's already up 27%. my question is, are they prepared for a hack of some kind? we will be asking the c.o.o. coming next. listen to this. you will soon be able to make campaign contributions through your alexa devices. is that a good deal? what could possibly go wrong? of course we will tell you about it in a moment. president trump meanwhile trying to appeal to blue state voters with trips to places like new mexico and california. is he really going to flip california in 2020? we will ask trump campaign press secretary kayleigh mcenany, next.

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david: the big board's doing quite nicely, as you can see. a lot more green on the screen

than red. it's up about 92 points right now. let's look at the s&p and the other indices which are doing well also. maybe we can't get them up on the board. trust me, the other indices are doing just as well. ashley: i trust you. david: let's stay on your money. identity security company ping identity went public just a little while ago and the stock is now soaring. it's up almost 30% right now. we have the ceo with us, andre durand at the new york stock exchange. congratulations. why you going public? >> thank you so much. you know, this is such an exciting day for us. we have been serving the largest enterprises around the globe, helping them, you know, secure themselves and secure identities and this market is just exploding. security is changing for large enterprises, identity is now at the heart of cybersecurity, and so we are going public because we have big aspirations and a lot of companies to help. david: i'm just curious about timing, because there have been

some tech ipos of late that haven't done so well. you think you did it at the right time? >> you know, look, we're excited to be out, we're excited about the way that it opened. we have been around for some time, helping these very large enterprises enable identity security, keep their workers, their customers, their partners secure, and look, we're built to last. we're a recurring revenue business. we are mission critical to these large enterprises. i personally have lived through a couple of downturns, i know what it feels like. i think we're in a space that is going to be very durable. david: are you going to use some of that capital to expand to individuals, because you mentioned you focus on the big businesses. >> yeah, there's no plans for that right now. we actually help enterprises secure their customers. so indirectly, we are helping individuals be secure. david: all right.

i have to ask you first of all, have you ever, has your company ever been hacked? >> it has not, thank goodness. david: and how -- there have been other financial companies of course that have gone through that problem with data breaches and so forth. how are you securing against it? >> well, look, we have as a security company, we have a very mature and robust internal security program. we implement our own technology in many places and look, we take the stewardship of keeping the largest global enterprises secure. we know that that's a big responsibility so internally we take security very seriously. david: well, we wish you the very best. it's always fun to see an ipo, particularly one that starts the day up 25% as yours has right now. andre durand, best of luck, my friend. thank you for being here. appreciate it. check microsoft, everybody. good news for all you stuart varneys in the audience. they not only hit an all-time

high but are increasing their dividend big-time. they have come back off of their high, right? ashley: yeah, they have. i can hear stuart somewhere giggling. david: i can hear it. ashley: they authorized another $40 billion worth of buy-backs. they raised their quarterly dividend another five cents to 51 cents a share. we are just noticing, since satiela took over, the stock has quadrupled and don't forget, has eclipsed at times the trillion dollar market cap. if you've got this stock back in the day, we were talking about this earlier, you are smiling today. david: absolutely. i would love to know how much it was when stuart bought it. love to know. i bet it was a lot less than it is today. coming up next, we are seeing a push inside the trump campaign to appeal to voters in traditionally blue states like new mexico, new hampshire. those are two states where he has held rallies recently. come in, kayleigh mcenany, trump 2020 national press secretary.

i remember when new hampshire was a solidly republican state. that changed about 15, 20 years ago. it's become more and more blue. you think you can turn it around and what about a state like california? you don't really think you will turn california around, do you? >> well, look, california, that's high hopes. you never know but nevertheless, i would say we're looking more at places like new hampshire. that's a place where president trump lost by just 2700 votes. we are looking at a place like minnesota. they have two urban centers in minnesota and outside of those urban centers and those counties, romney won those counties by just 65,000 votes. president trump won them by nearly 300,000. so he's really a candidate that can drive up turnout in places in the mold of pennsylvania, wisconsin, michigan, so he makes these blue states winnable. we see it in our rally data as well. david: i don't have to tell you, the democrat candidates have gone further and further to the left.

not only with socialist economic policies, even joe biden now says he will eliminate fossil fuels in his administration. just imagine how this iranian problem would hurt us if in fact we didn't have any fuel production in this country. but how are they going to turn to the moderate side after the convention, after having made all these left wing promises? >> oh, they will try, especially joe biden. you know, he's trying to preserve this centrist lane but we won't let him do that. we will remind voters as you correctly noted, he wants to eliminate fossil fuels. he wants to provide taxpayer funded health care for illegal immigrants. he wants a public option that would have the end result of crowding out private insurance. what does that do in a state like nevada where they have a large culinary union and people are very happy with their employer provided insurance, or a state like minnesota or wisconsin, where the union workers love their employer provided insurance? that will be one of the biggest issues in the election and one we believe will help us maintain

that 2016 map. david: a lot of people who don't necessarily like donald trump say there's no alternative. we actually had one of those people on, actually he does like donald trump, but he spoke to this point, our friend dennis rodman, the former great nba basketball player, was on yesterday. let me just play a bit of the tape from that and get your reaction. >> what do you think about donald trump being re-elected? do you think he should be? >> do we have a choice? do we have a choice? i know some other candidates that's out there right now, i just think people are looking at the business, the money factor, the way he's changed it 180 degree and i like donald as a friend. david: he likes donald but i think a lot of people would vote for him in 2020 don't necessarily like him but think there's no alternative. >> well, they see the economy. i think that's exactly what dennis was pointing out right there. when you look at the money coming into your pockets, there is no alternative. that's why we think in the

hispanic community in particular, there have been at least five public polls that show the president's support climbing from that 29% he got in '16 to the upwards of 40%, sometimes 50% because the hispanic community sees the economy working for them. i think the black community as well will see an uptick in that support because it's finally working for these groups. david: going to be fascinating election. thank you very much for being here. appreciate it. >> thank you, david. david: coming up, amazon, soon you will be able to make donations to your favorite politician through the amazon alexa. i don't think it's a great idea. how does it work? lauren: alexa, make a donation to mayor pete buttigieg. what if you say his name wrong? will alexa still be able to make the donation? ashley: you just made a donation. lauren: so this is what amazon is doing. you know, it's innovative and that's the problem. can the fec regulators keep up with this. they will allow you starting next month to make a donation between $5 and $200 to a candidate in 2020 that amazon

determines as being eligible, not sure what those requirements are just yet, but here's another issue. a lot of -- there's concerns about, you know, alexa spying on you and eavesdropping on your conversations and storing that data. while amazon says you can disable this, some people might not want others to know who they are donating to politically. david: i had an alexa once wake me up. i might have said something in my sleep and it set it off. unplug that thing. ashley, walmart is trying to compete with amazon with its new credit card. ashley: yes. it's the capital one walmart rewards mastercard. it comes out next tuesday. it's kind of an upgrade to their current credit card, especially when it comes to rewards. it offers the introduction offer of 5% back on purchases if you use the walmart mobile pay app. they will do that for 12 months. also, 5% back on walmart.com including the grocery pickup service and delivery service. bottom line, this is to compete

with the apple and goldman sachs card that was unveiled this year. david: we have breaking news on fed ex and it's not good news. one of their commercial pilots has been arrested in southern china. what are the details there? lauren: this pilot, by the way, a former u.s. air force pilot, was detained in southern china, headed to his home in hong kong amid the violence there. but in his carry-on bag, he had air gun pellets and chinese authorities have said that is an illegal transportation of ammunition. they have detained him. david: that's the accusation, by the way. we don't know whether it's real or not. all right. if you are not looking to buy a mercedes, the company is now rolling out an electric scooter. imagine mercedes with electric scooter. we will tell you what it will cost you in just a moment. for the first time in tesla's history, they won the highest safety honor on the model 3, earning the 2019 top safety pick award. we will tell you what tests it had to take on to win that

award. plus, every time you fill up your car with gas, part of the tax you pay goes to highway maintenance. but as of now, electric cars get a free ride and anyone who buys one gets a hefty subsidy from the government. senator john barrasso says there's something wrong with that. he wants to change it. he will tell us how, next. and we are at session highs right now. that is great news. we'll be right back. ♪ ♪ ♪ and let me tell you something, rodeo... i wouldn't be here if i thought reverse mortgages took advantage

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speed or how much it's going to cost. only that they partnered up with swiss scooter maker micro. should be on the roads early next year. i know ashley wants one. ashley: i'm in. david: and some good news on tesla for once. their model 3 just receiving the highest safety award possible. lauren? lauren: bam. okay. this is finally some good news for tesla. will it silence the critics? the insurance institute for highway safety has ranked the model 3 with their highest safety rating. technology perhaps paying off in these vehicles but specifically, the aluminum and steel cabins are very strong. the car has a low center of gravity, reduced rollover risk. it's getting this nice rating, the overall market is up but so is tesla today. david: our next guest has a new op-ed out all about how electric car drivers aren't helping highway maintenance because they aren't paying a gas tax. come in, senator john barrasso, republican from wyoming. senator, you don't want to add taxes to electric cars, you just

don't want to give them the tax rebate, the owners a tax rebate they get when they buy one, right? >> that's right. thanks for having me. you know, what's happening now is our bridges, our highways are in disrepair. we just passed out of the committee i chair in the senate the largest bridge highway infrastructure bill we ever had in this country because the work needs to be done and there's an agreement that it has to be paid for. well, right now, those sorts of constructions are done through the highway trust fund. it's paid for through gasoline taxes. electric vehicles don't pay anything into that trust fund because they don't use any gasoline, but they ought to be basically pulling their own weight when it comes to the fact that repairs need to be done and those that use the roads ought to be paying for it. david: and again, only 2% of the vehicles on the road are electric. if we were to charge them as some people, not you, but some politicians say we should actually charge them for the

money they're not paying in the gas tax, it wouldn't add that much to our revenues, would it? >> well, there's actually significant amounts of revenue that can be raised. you need to do two different things. one is not provide subsidies for these very expensive luxury vehicles, whether it's maserati -- david: it's for the rich. >> it is. $7500 per car. also, i believe those who are using the roads ought to be paying. electric vehicles ought to be contributing because they do contribute to the wear and tear. david: how? how should they be contributing? >> i'm recommending that they be charged a user's fee comparable to what people who use gasoline in their vehicles pay on average. there are ways to do it. that's what one of my pieces of legislation, it's the fairness for every driver act. that's what we are proposing, that drivers of electric vehicles don't need the subsidy because it's now an established market. david: i'm with you on the

subsidy thing but a user fee is just another name for a tax, isn't it? >> otherwise, they are doing damage and have a free ride, asking those people in gas-powered vehicles to pay more and more and more. david: i never met a tax that i liked, senator. i got to tell you. i'm against all new taxes. i think we have more than enough right now. but i'm with you on the tax rebates. i think that's a great idea, getting rid of that. it's beyond time for that. senator, thank you very much for being here. i appreciate it. amazon's jeff bezos saying the company has placed an order to buy electrical vehicles. ashley: an electric vehicle startup, this is all part of a climate pledge, they will be net zero carbon by 2040, 100% renewable energy by 2030. they ordered 100,000 electric vans and mr. bezos -- david: 100,000? ashley: 100,000 electric vans. they are all going to be on the road by 2030.

this is all part, he says they will fulfill the goals of the paris climate accord ten years early and he's imploring other ceos to join him on this climate pledge. david: well, if senator barrasso gets his way they may have to pay a tax for that. ashley: that's true. david: quick check on roku. it's been taking quite a hit lately on all the streaming news. but they are up today and that's all thanks to their new product line, unveiling a smaller, cheaper express streaming device. and a faster souped-up ultra device as well. check streaming names in general, if we can put them up on the screen. it's kind of a mixed picture there. now to california. president trump's epa just putting san francisco on notice saying their homelessness problem is damaging the environment of the bay area. coming up, we will be talking to a former epa official. is this a problem the administration can fix? we'll see. ♪ liberty mutual customizes your car insurance,

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david: on to the homelessness crisis plaguing california and a lot of states in the country. the epa just put san francisco on notice, claiming the

homelessness problem is damaging the bay area environmentally. come in, mandy gunasekara. exactly how are the homeless affecting san francisco's environment? >> the homeless situation in california is getting out of control and a lot of it's driven by their extreme democrat leadership trying to impose expensive policies that just make life much more complicated and much more expensive. and what you have is a growing homeless area that causes all sorts of environmental degradation to the water system, to the air system and you are on the cusp of a budding public health crisis as you have seen a resurgence of once eradicated diseases such as leprosy coming back. david: a whole bunch, cholera. that was a 19th century disease. we wiped it out in the 20th century. it's back after 100 some years. but again, epa was meant to protect public health, and public health is being endangered by the homelessness

crisis. so it does fit into the purview of the epa, does it not? >> it certainly does. there's a longstanding relationship that's been defined by congress that the federal government works with state and local officials to deal with issues, whether it's dealing with a public health crisis or environmental issues. that's exactly what the president said the other night. he put the state on notice if you don't clean this up, protect your people and the surrounding environment, i will. david: mandy, another thing the president is announcing is rollback on emissions standards in california. he doesn't want them to set their own rules apart from the rest of the country. he just wants one national standard for everybody. you think this is a good play? >> it's a great play, and it's what the law requires, which is what president trump is advocating for here. he made very clear there will be one national standard and establishing a one national standard to make cars cleaner, cheaper and more accessible to all americans is in the purview of the federal government. a state like california doesn't

have the authority to dictate to the rest of the country what type of cars we all should be driving. david: both of these issues, you know there's going to be pushback from the local government, certainly san francisco will push back, but california as a whole might push back on the emissions standards. can the epa initiate procedures, initiate these new standards and the epa ruling on homelessness, and -- before the court makes a final decision? >> well, it depends. in some instances, when the courts get involved, they put something called a stay on the effectiveness and enforcement of an action. i don't necessarily see that in this instance, especially with the revocation of the california waiver, because it's something that never should have been granted to begin with. and the law is very express and clear in this area. so the federal government is sitting in a very strong position with regard to revoking california's waiver and implementing a one national standard. david: mandy, great to talk to you. thank you for being here.

more "varney" right after this. ♪ at fidelity, we believe your money should always be working harder. that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. of the value you'll find at fidelity. [upbeat♪action music] . . (pilot) we're going to be on the tarmac for another 45 minutes or so.

david: take a look at uber right now. it is up about a percentage point. it has a new gee whiz safety feature on a it. tell us about it, lauren. >> they have been experimenting with in a pilot program for a year now. it is called ride check. if there is a long wait or crash, they ping you, they respond, get you your help. not sure how this would help in instance of sexual harrassment which has been a big problem for uber as well as lyft. david: good point. fox business's charlie gasparino

is reporting that at&t may part with directv with the rise of streaming. >> who gets satellite tv. they could spin it off. other possibilities as charlie has talked about maybe a merger of some sort, wrapping it in with dish, the two rivals to make it one entity. certainly the satellite tv business is shedding subscribers. a few more just dropped. david: talk about movement, we have movement in the market. it is going in the right direction. take a look at the big board. it is up 93 points. despite the fact that the market was down in premarket activity. very good manufacturing numbers came out. better talk about china trade despite u.s. steel down, double digits down, as the economy. very good economic indicators. remember all the talk, ash, how

we were going into recession. ashley: gloom and doom. inverted yield curve. david: thank you very much for watching. i will see you here tomorrow. mean while neil cavuto is standing by to take it way for the next hour. neil: not standing but sitting watching you guys. thank you very much, my friend. so far no problem for the federal reserve as markets brush off the latest move. why is the president fuming? man, oh, man he is fuming. mark zuckerberg is on capitol hill meeting with senator mark warner. he is here to talk about washington's next steps with facebook, they are coming. huawei took a big shot at apple. we're all over it. first recession and no more cuts. despite cutting rates the president is not happy with jerome powell at all. in case you have any doubt, listen. >> i don't