our technology and financial solutions are changing what's possible in all sorts of ways. so, how can we change what's possible for you? maria: have a great weekend. "varney & company" begins right now. david? david: thank you very much. good morning. i'm david asman. stuart's off today. he will be back on monday. here is the big story happening any moment right now. president trump is going to be welcoming the australian prime minister to the white house for an official state visit. we expect to hear from the president later this morning. as soon as he starts speaking, of course you will hear it as well. big news in the 2020 presidential race. new york city mayor bill de blasio ending his very long shot bid to be the democrat nominee. de blasio failed to gain traction with voters, even with democrats in new york city. tim cook arriving this morning in new york city. apple's flagship store, he's

there to celebrate the store's grand reopening as well as the launch of the new iphone 11. we have three of those versions of the iphone 11 right here on set. it is out today. we have the phones here and we will get a review from one of our tech watchers. take a look at apple's stock this morning. it is now trading up a little bit. it could go much higher once we get details on what's in that phone. and stocks are going to be up modestly when the market opens in about 30 minutes. we have another positive development on trade which is sending stocks a little bit higher. 400 chinese-made products will be exempted from tariffs. this as deputy level trade talks get under way in d.c. this very hour. lot of news to go at on this friday morning. "varney & company" starting right now. david: breaking news. president trump getting ready to

welcome the australian prime minister to the white house any moment now. blake burman is there. i understand there's going to be a state dinner. it's only the second time that's happened in this presidency, right? reporter: second time during the trump presidency, you're right. good morning. also the first time australia will have a state dinner here at the white house since 2006, dating back to the end of the george w. bush presidency, when he welcomed john brown. today, the guest of honor is scott morrison, the somewhat newly elected prime minister of australia, been in that role since last year. he's set to arrive here within seconds, we believe. you are looking live, left side of the screen there, south lawn of the white house as it's expected to be a roughly 30-minute or so presentation on the south lawn. all the pomp and circumstance you could want on what is a stunningly beautiful almost fall day here in washington, d.c. 500 members of the u.s. military on the south lawn right now, as morrison will also receive a 19-gun salute. after that, the two leaders, the president and the prime

minister, will head over to the oval office for a meeting there. then a bilateral meeting amongst their teams and then there will be a press conference here at the white house. 11:45 is when that is scheduled to be. then the official state dinner this evening over here at the white house for the prime minister of australia but that's not the end of the relationship for this weekend between the two. the president will be traveling with the australian prime minister also this weekend to ohio. when you look at all the beauty that's taking place on the south lawn, there are a host of political issues and global issues that these two will likely tackle. we are led to believe by administration officials that they will be talking about space exploration and also rare earth minerals, as you know, rare earth minerals are at the heart of the issue, one of the issues at least between the u.s. and china, as china is a major supplier for the u.s. as it relates to that. david? david: mr. morrison is known as australia's trump because he

defied all of the polls in order to become prime minister. he's kind of a conservative outsider, became prime minister, so there's an identity between the two men. reporter: yes. they align politically. in fact, at one point when morrison was a member of parliament he brought a bag of coal to the parliament floor and said don't be afraid of this. as you know, that's very trumpian. david: it will be very interesting to see. lot of pomp and circumstance. we love that stuff. good to see you, blake. see more of you this hour and the next. to china now, president trump exempting hundreds of products from tariffs. you have the details? ashley: we have the deputy level meetings going on right now as we speak, all in preparation for the major face-to-face renegotiation, picking up next month. so we have kind of an olive branch, some exemptions as you say, more than 400 types of chinese products from tariffs. what kind of things are we talking about? there's a long list but dog harnesses, dog leashes, steel

wire barbecue grills, miniature lighting sets for christmas trees. david: the stuff we get from china. ashley: plastic drinking straws. david: not in san francisco. ashley: exactly. indoor tabletop water fountains. i for one am relieved about that. david: all right. diplomacy, china trade talks and politics. big announcement this morning from new york city mayor bill de blasio. kristina? >> he couldn't gain traction so that's it. he's calling it out. he's now announced he's no longer running for 2020 presidential candidate. david: lot of new yorkers saying we were hoping you would still be on the road. >> a lot of them called him the absentee mayor. here are his comments earlier this morning. >> i have contributed all i can to this primary election and it's clearly not my time. so i'm going to end my presidential campaign, continue my work as mayor of new york city and i'm going to keep speaking up for working people.

kristina: working people. we kind of knew it. he alluded to not qualifying for -- david: there is the president and the first lady, as we told you before, they are awaiting the prime minister from australia, scott morrison. he is a conservative, moderate conservative, kind of a similar back story with the president. he's actually a minister, pentecostal minister by trade. he defied all the polls which said he wasn't going to make it. the president and the first lady are really rolling out the red carpet. this kind of thing only happens about once a year, at least with this presidency. it is a state dinner that is going to be afforded to the prime minister. that's only happened once before in this presidency. by the way, apple, big news from apple as they roll out their iphone. we will be covering that. have no fear. we have it all covered. but there is the prime minister of australia. scott morrison is his name, also known affectionately as sco-mo

by some folks in australia, meeting the president. let's see if we can hear any conversation between the men. you can't hear the president and the prime minister or the first ladies talking to each other but you can hear the commands of the military there as they honor both men. this is an official state visit. doesn't happen very often. ashley: it doesn't. you know, it's interesting, the previous australian prime minister, malcolm turnbull, did not have great relationship with donald trump. in fact, when donald trump had a phone call with him, he said it was by far the worst phone call i've had that day. there was a leaked audiotape that mr. turnbull was heard laughing at donald trump. as you say, scott morrison is a huge fan of president trump. they have similar ideas, especially on immigration. they've gotten on very well in the past at the most recent g-20

and in fact, donald trump says i predicted his victory in the re-election campaign back in may of this year. david: actually, blake referred to this, they also share a very similar attribute with regard to energy, australia is a huge energy producer. they produce a lot of what's used by china which is very close by for the energy that they use up that they gobble up, i should say, and there were some efforts on the part of the green party in australia to cut back on fossil fuels. this prime minister has turned that around very much like our president trump has turned that around. ashley: blake mentioned other than the pomp and circumstance and the state dinner tonight, they will travel together to ohio this weekend. in fact, on sunday, they are going to tour an australian-owned manufacturing facility in ohio. interesting spin. david: i know the president has been very interested in foreign companies opening up operations here in the united states. of course, that's one of the reasons we have the best jobs number ever, more jobs than job seekers by far.

we turned around from the obama administration on that front. you can see he's meeting a lot of economic people there. wilbur ross shaking the prime minister's hands right there. we have steve mnuchin. it's interesting that always the economic force of this country are put out front with president trump. kristina: that's a message not only to whoever is visiting but to all the people that are watching right now on television, too, showing the economy is first. since his election in 2016, the president has actually made quite a few state visits. we are talking about this being the second major one dinner here in the united states, he visited south korea, china, vietnam, japan and the united kingdom. did you look at the menu? ashley: i did not. cheeseburgers on there? kristina: no, no. they are focusing on seasonal veggies, baby kale, sun-choked chips at the first course, then a pasta dish and fennel mussolin? david: the president and the prime minister there --

ashley: you know -- oh, national anthem. david: first we hear the australian. may be familiar to a lot of folks. ♪ you are hearing a full 21-gun salute on the white house lawn. 19. for prime ministers they did 19. very interesting. i didn't know that. ashley: this is being labeled as an official visit. it can't be labeled as a state visit because technically the

queen is the head of state of australia. david: does that include the dinner? we refer to it as a state dinner. ashley: to the australians it's an official visit. kristina: they are going to be talking about cooperation for iran, because we know the australia joined the american-led effort to protect the ships and the other topic of conversation will be a plan to reduce ocean waste. that's going to be on the table as well. we know climate change, there's a big strike going on in australia at the moment. protest. david: we will actually talk about that a little later on, whether or not schools should allow truancy in order to join that so-called strike. here we go with the u.s. national anthem. let's listen in. ♪

♪ ♪

david: the colors after the national anthem. and we saw the podium there with the microphones. we assume the president and the prime minister were going to speak. apparently not. they are going to be speaking a little later on after they have a meeting in the oval office. you can hear there the inspection orders being given. the president is going to inspect the troops along with the prime minister. gosh, there's nothing better than those men once they have their dress blues on. it's extraordinary. as soon as they begin to talk, as soon as the president and prime minister begin to talk, we are going to bring that to you. but we do -- this is a business channel. this is of course highly important to americans. we wanted to bring you the opening of that and all day,

there are going to be celebrations and festivities and pomp and circumstance. we are going to dip into that throughout the morning and of course, again, whenever the president speaks, particularly to the prime minister or about what they're doing with each other, we are going to actually bring that to you live but we want to take a look at dow component apple. of course, the new iphones, iphone 11, hits store shelves today. susan li is at the apple store and as we saw, it's also a beautiful day in new york. tim cook could not have asked for a better day. reporter: that's right. it is beautiful out here. who says iphone launches aren't what they used to be. if you walk down fifth avenue which is where we are right here at the opening of -- reopening of the flagship in midtown manhattan, take a look at the line of enthusiastic apple fans who have been here, some have been here for hours waiting to get their hands on the new devices, the new iphone 11, also the apple watches and the ipads as well. but of course, this reopening of the flagship has special meaning

since we do have the unwrapping of this iconic cube. it's been closed since january 2017 and we had tim cook, ceo of apple, in attendance along with deirdre o'brien, head of retail, both here to open the store at 8:00 a.m. this morning. you know, preorders for the iphone 11 this year have been better than last year and they are hoping that's the case as we have been looking at the slowing e pho iphone sales. i know there's a transition to services for the company but take a look at the fans that have lined up today to get their hands on the hardware, it looks like they still sell a lot of these iphones. back to you. david: susan, you got a busy day ahead. i'm glad it's good weather outside. you don't have to stand in the rain, as often happens when you cover these things. thank you very much. let's stay on the new iphones and bring in editor in chief of tom's guide. here's my main question. why would i trade my iphone x in for that? you brought three of the new iphone 11s with you. >> so the big thing is the

camera. a lot of people love taking pictures with their iphone. in fact, they are now replacing digital cameras for taking all of our pictures. in this case, here's the first time i'm going to say that apple has not only met the hype, they have beaten the hype with these new phones. our reviews are up today and we are giving all of them 4.5 to 5 stars for the iphone 11 pro max. just because of the camera. david: how many stars did you give the iphone x? >> that was 4 at the time because it was new. face i.d. was new. they were working out the kinks. so where they really shine literally is with low light photography. let me give you a couple examples. over here, this is taken with last year's iphone. not talking about a couple years ago. now, with night mode, which is new, this is the same -- david: oh, my god. >> the same scene. david: you went from black the a picture. >> yes. the fact that you can take these sorts of photos without a flash is almost like magic. you see that sign in the background that you can't see? david: whoa!

kristina: it's not grainy, correct? >> no, that's the amazing part. it's not just new optics. they rls pare also putting in n computational photography. david: they got away from the bells and whistles that people weren't willing to pay $1,000 and now talking about really improving the quality. >> right. i actually think that's one of the reasons people are going to buy this phone. it's not about gimmicks which samsung is sometimes accused of. it's nailing the basics, better cameras, longer battery life and outside, we got a much brighter display. david: starting cost is a lot lower. >> $699 for the regular iphone 11, goes up to $999 for the pro and $109 for$1099 for this. they are using video stabilization. david: it stabilizes the shot. >> as we are moving and panning around, it looks like a movie. and you can switch between the three cameras. kristina: what about 5g technology, though?

>> yeah. that is the one strike against this, if you are an early adopter, but next year they are going to have 5g. a lot of it was because of the agreement they didn't have with qualcomm. they buried the hatchet. ashley: should we wait until next year? >> it's going to take at least a year to a year and a half for the networks to be where they need to be. if you are up for an upgrade now, definitely get these phones. if you want something that's truly future-proof that will last two to three years, you might want to wait an extra year. david: presales are good? >> better than expected. i think they are all three going to sell well. david: terrific. great to see you. thank you very much. joining us is jonathan hoenig who says right now, apple is a monster. make your case. >> yeah. as goes apple, so goes the market. the reaction we have heard this morning from mark and susan, the lines around the block, bode very well for this company which like microsoft and a few other of these classic big tech companies aren't too far from their all-time highs. apple is that 800 pound gorilla,

it is that monster. 3% of the s&p, almost 10% of the nasdaq 100 and almost 16% of the technology sector spdr, xlk. the reason they kept on top, the reason this is likely to add to share price, in my opinion, is innovation. the original iphone in 2007 was $500. as mark outlined, the new iphone is essentially the same cost in 2007 dollars and look at the innovation, look at the dramatic improvement in product. david: extraordinary. but look at the stock for a second. if it's all you say it is, why aren't investors making that stock go up to $250 right now? >> i mean, that is one thing that has changed since the jobs era. maybe it's because this isn't a dramatic transformation in terms of hot new gimmicks or whatnot with the phone. this is an improvement on the infrastructure at a major lower price at a time the company is transitioning to services. the entire market of course is

topping, we are 11 plus years into an historic run. as long as apple keeps innovating, i just wish we could get this innovation in health care, in schools, in airports. apple does it again. david: you are talking the difference between private sector and the government. we know what that's about. stay there. we want to bring you back in. we will get to you in a moment. right now, facebook chief mark zuckerberg is back on capitol hill, talking regulation for big tech. joining us is tech entrepreneur vivek radoir. you don't much like zuck. tell us why. >> i used to be a big fan. in fact, i thought he was doing wonderful things for the world. over the last few years, we have seen the dark side of his technology. facebook has become a surveillance company. they are watching everything we do. they are greedy for data. now they are trying to put cameras in our homes. they are trying to get young people to, you know, express their emotions and date each other on their phones. they are abusing data. they are selling their souls.

and they keep making promises to improve all this and lying. zuckerberg has been doing this his whole career. he keeps apologizing saying oh, i won't do it again, i'm really sorry, we can do better than this, then he goes back to his evil ways. so this is why i'm so -- david: forgive me, but president trump is speaking at this ceremony for scott morrison. let's listen. >> i would like to welcome you and jennifer to the white house and we look forward to hosting you for a state dinner tonight in the rose garden. it will be quite something. the unbreakable bond between america and australia is rooted in eternal ties of history, culture and tradition. last year, our nations commemorated 100 years of mateship since our gallant service members fought together in world war i. today, we vow to carry on the righteous legacy of our

exceptional alliance. the close relationship between our two countries dates back to the earliest days of the american republic. in 1792 during george washington's first term, the american ship "philadelphia" became the first foreign trading vessel to enter an us straustra port. in the coming days, american prospectors, whalers and merchants traveled to australia for opportunity and adventure. they found in your people a kindred spirit, americans and aussies are loyal, bold, independent -- david: this, as you can imagine, is a long state visit. we are going to see this sort of thing all day. we don't want to take from stem to stern. as soon as he talks policy, he's going to be doing that with the prime minister, meeting inside the oval office, we will bring that to you live. now the president is talking about the history of relations

with australia. we will hear very similar things from the prime minister, prime minister morrison. one interesting little tidbit, we just got the state dinner is actually going to be outdoors in the rose garden. i can't remember an outdoor state dinner before. maybe i'm wrong. there might be. we will go back in the history books. again, it's going to be a very unusual state dinner. they are already unusual. there's only been one other. but again, we will go back to the president and prime minister as soon as they start talking policy. now we want to go back to vivek, talking about zuckerberg. one thing that a lot of folks were really thinking looked unseemly was mark zuckerberg being wined and dined by all these politicians the night before his meeting in congress. it kind of looked like they were conspiring together to come up with regulations that would be a perfect fit for facebook. >> yeah, i know. this is when i'm hoping trump will be tougher than that and won't succumb to zuckerberg's charm.

you know, the company does need to be broken up. it's amassed too much power with whatsapp, instagram and all the other things they're doing, the company does need to be broken up. that's needed and then we need regulations to control data. a lot of ideas being bandied about are good, but i hope we see this and i hope he doesn't buy off the politicians. david: you are talking breaking up, you are talking more regulations. jonathan hoenig is not a big fan of either, are you, jonathan? >> this is really concerning. look, forget about being a voluntary facebook user of which there are hundreds and hundreds of millions. every day, who use this product, the guest talked about zuckerberg as being evil, the corporation being evil. people voluntarily use this product because it benefits their lives. all that's changed is the politics. just like it was nuclear industry back in the '80s or big pharma in the '90s or even walmart in the 1990s, government comes in and you know, the spectacle, i don't even think, was the wining and dining but of all the elected legislators on both sides of the aisle essentially threatening zuckerberg saying we will break

you up, so what can he do other than play the game? david: i would just say that this is a man who has violated s.e.c. agreements, he's been fined by the ftc. so you can't exactly take him by the word, by his word, with a history like that, can you? >> no, we also depend on water and electricity and our telephones but that doesn't mean that you don't need to control the companies that have monopolies on these. facebook has become a monopoly. we have no other choice than to use it and you know, the problem is -- >> you also have a choice not to use it, though. david: hold on. go ahead. >> that's not true. you have a choice not to use facebook. in fact, for years, the whole issue with facebook is people twur were turning it off. there's hundreds and hundreds of online services or my gosh, go use the bulletin board at your local office. this notion that facebook is a monopoly, it's hatred -- [ speaking simultaneously ]

>> the problem is everyone else is on it, you have no choice. you get left out if you don't do it. that's exactly what a monopoly is. >> by serving their customers. by serving their customers. by giving them what they want. >> to a point. to a point. who says they also have to own whatsapp? david: that's the final word. i want to know where you think we will end up given the political realities in washington, given what we saw with the cozy relationship between the politicians and mr. zuckerberg, what will we end up with? >> i think he will buy off the politicians and hopefully the president sticks to his principles and forces this company to clean up its act. >> let me just say quickly, the irony is the regulations that he's advocating for will only help zuckerberg. regulations help those entrenched players. david: we can go a lot further but great discussion. jonathan, thank you very much. i appreciate it. vaping under serious

scrutiny after a rash of illnesses and now one more death. look no further than your phone or laptop to find counterfeit vaping products. i wouldn't buy them. if i was a vapor, i wouldn't buy any kind of liquid vaping product that i didn't know where it came from. but some people are. kristina: you're not a vapor. you are seeing it thrive online, you are seeing it on amazon, instagram, facebook. these are illegal ads and you are seeing, that's the problem, right now there's 530 probable cases that could be linked to vaping. we don't know if it's the illicit pods, the fake ones you are finding online, or the thc, the cbd, if it's just plain nicotine but the fact that there's an eighth man who has passed away in missouri, three-quarters of the men or the victims are male as well. this is still thriving despite the fact that in the united states here, we banned all of the flavors. we just don't know. oil droplets cling to your lung and you are seeing -- david: it's not the united states banning the flavors. it's certain states that are

doing that. it's not nationwide. still a lot of questions to be answered on that. gun manufacturer colt is stopping selling the ar-15 assault rifle. there are other manufacturers of this, but significant that colt is stopping. ashley: such an iconic name in this sector, suspending its production of the ar-15 and other long rifles for civilians. the company says it's just following consumer demand, it believes there are enough rifles on the market for the foreseeable future, says colt. now they are going to focus on fulfilling their military and law enforcement contracts. also, they will continue to provide revolvers and pistols but it's the controversial ar-15 that they suspended production of. for civilians. david: opioid maker purdue wants the lawsuits against it frozen. kristina: 2600 lawsuits right now against purdue. they are asking for an injunction, lasting about nine

months. why? why do they want this to be put on hold? because there is -- they are paying roughly $5 million in legal fees and they feel if they put it on hold, they can focus on dealing with the company. purdue has filed for bankruptcy and purdue was one of the top manufacturers of the oxycodone pills that have been linked, we know there's been over 400,000 deaths in the course of just ten years from -- 20 years, sorry, 1997 to 2017. this is an ongoing story. a lot of opioid type companies have settled with various states, purdue being one of them. david: let's take a look at dow jones futures. we are just about 15 seconds away from the markets opening. it's a healthy gain on all the indices as we can see, particularly the nasdaq, opening up about a third to the positive side. but the dow jones industrial looks like it might open with a 56-point gain or better. there's some rumblings that things are improving in our discussions with china. i know you heard that a million times before. but now 400 products have been

exempted from the tariffs, particularly those products that might be in use during christmas shopping season. a lot of that kind of stuff. there is the opening bell. lot of focus on apple right now, what is going to happen with the iphone 11. we have a rollout of the iphone 11 along with rollout of the flagship store in manhattan. we see the market going up modestly, about 25 points to the plus side right now. now it's 40. climbing but staying in a range. we'll see how the s&p is doing right now, if we switch over to that. it's a little early to see on the dow jones. the s&p is up about the same percentage wise. the nasdaq got an even nicer bump after the opening, if we can switch to that. well, actually it's pulled back a little bit. it's a mixed picture. a lot of things are hanging in the balance. again, lot of questions about what's going to happen with apple. joining us, david dietze, kristina partsinevelos and ashley webster. let's start with apple.

the new iphone 11 is out. what do you think will happen? >> i think things are going to work out well because the bar is set very low. although they have these great new cameras, the battery power is improved, the fact of the matter is it doesn't have the 5g. a lot of people are holding back saying i want that 5g model because that's what's really going to be happening. on the other hand, they are also going to be a beneficiary here of the china relationship and it seems like this economy is holding up well and you need a strong economy to afford an $1100 iphone. david: the apple was trading negative in premarket activity. it's now up almost a percentage point. you think it's cheap at $222? >> you know, it's a value-added growth stock. david: you are hedging. >> well, you know, in terms of the price to earnings ratio it's below the market. on the other hand, of course the dividend at 1.4% is less than the market. it's half hardware, half services. to the extent you can throw more into the services, it can get a higher multiple and take the stock price higher.

david: today it's all about the hardware. >> today it's about the hardware. ashley: i think people, we talked about this earlier. i think people will wait. i love the phone, my iphone 10. i'm not a professional photographer. david: we just had the 11 in here. some of those pictures were extraordinary. ashley: they were. but i want to combine that with 5g. i don't want to have to buy another phone next year to get 5g. kristina: talking about the stock, you asked why there was no movement. if you look, we haven't mentioned apple tv and that will eat away at margins. that was what goldman sachs said on friday. >> they are entering a very competitive market. who will throw away netflix? who won't subscribe to disney for the apple tv? kristina: everybody has apple products. maybe i would make that shift to continue the consistency. >> you don't want to bet against apple longer term but nevertheless, we don't all have apple watches and apple tvs. there have been other ancillary products that have not done well. david: facebook's mark zuckerberg is on capitol hill for more meetings today. senator josh hawley says if

facebook is really serious about privacy it could sell instagram and whatsapp. we just heard the professor saying the same thing. david, these are big money-making apps for facebook. you think they would ever sell them? >> yeah, absolutely. it's possible they are going to do what they need to do to preserve that core franchise which would be of course instagram, of course facebook, so i think they are open to anything but you know, the reality is usually by the time their back is against the wall, technology has changed. david: i do think that some of what was happening on wednesday night with zuckerberg talking to all those senators, it might have been some deal making going on. if you sell, if you sell instagram, we won't be as hard, won't come out with new regulation. that's the way washington works. kristina: i agree. zuckerberg has shown he's open to regulations going forward but does that necessarily mean breaking up the company? instagram is -- david: i'm talking about bargaining. i'm talking about saying i'll do this if you don't do that. ashley: as you say, it's how

washington works. there's a lot of horse trading going on in the background. i guess we'll find out if they agree to spin off instagram. david: meanwhile, tech billionaire larry ellison calling uber quote, almost worthless. does he have a point? >> i do not think so. he's talking about they don't own their employees, they don't own the cars. that's the beauty of uber. they don't have that capital tied up. to the extent that other states follow what california has done, they will own those drivers a little more. remember, larry may be talking his book a little bit. he's on the board of tesla. he's working hard for autonomous driving. it's a horse race going on. david: they have lost $20 billion in market cap. ashley: he says they are going after more business, a business that's not profitable. he says it makes no sense to try to gain more business that's not giving you profits. david: then there's gm. the strike is still ongoing. we can't forget about that. there is now a lot of collateral damage in the economy because of that.

gm is making an effort to end the strike with united auto workers, promising 5400 jobs, $7 billion to the workers. grady trimble is in detroit. what are you hearing from the workers on this? reporter: well, they tell me they will stay on the picket line until both sides reach a fair deal for them and for the company. it's important to point out this is one business week of lost production for general motors and because of this strike, it's not just general motors that's taking a hit. companies that supply parts are as well, things like suspension systems, seats and radiators. so their stocks are taking a hit. we are also hearing about layoffs among some of those companies as well. as far as any progress being made, uaw officials did send out a letter for the first time to employees the other day saying that some progress is being made but we just heard from a source who tells us this could go into next week because of some sticking points that they still aren't able to hash out in those

closed door negotiations. david: all right. thank you very much. we will come back to you, grady. he was talking about the suppliers, just to give you an idea what's happened since the strike started on sunday night. delphi technologies, that's one of the suppliers to a lot of companies that have gm products, 12.5%, that stock is down. 12.5%. american axis and manufacturing holdings down, and the list goes on. it really is hitting a lot of companies that do business with gm. >> that puts even more pressure on the situation. i keep wondering would it ever reach the point where there would be intervention from the federal government to make the sides reach an agreement. certainly the stakes couldn't be higher because the uaw was half the size of what it was a couple decades ago, they are fighting off some corruption charges but gm is trying to tell wall street we are the new gm, we don't kow-tow to the unions. we may have already hit peak

auto, we don't know. they are afraid of trying to bolster their position -- david: the other thing is it's an election year and the president is looking to increase the support he gets from union members. ashley: he doesn't want this to drag on, either. as we get closer and closer to next november, we are still a ways off but you're right, if this does drag on and on it could have political implications. david: ladies and gentlemen, let's go back and look at apple. it just hit a trillion dollars once again. it slipped off the trillion dollars in market capitalization. it's up a buck. it's about a half a percentage point right now but it may pull down and go above it but for the moment, it is a trillion dollar market cap company. thanks, everybody. great stuff. i appreciate it. all right. quick check of the big board. let's see what we've got. 22 to the plus side. pretty moderate gain considering what was happening in premarket activity. it was up over 50 points in premarket. it's pulled back a little bit from that. we'll see how it turns out

throughout the day. lot of news on apple might affect the overall markets. earlier this week, u.s. steel was the third steel company to miss earnings estimate, sending the shares lower. joining us is joe kasuchi with a steel fabricator. what's going wrong with steel companies right now? >> this is what's going on. last time i came here, increases were up, demand was there, the mills were producing, the capacity was running about the same but they were saying hey, guess what, let's price up everything right now because the tariffs are in place, let's do this. demand was there. in time, year later, here we are. demand has decreased. david: prices are up and demand is down. that's a problem for steel companies. >> exactly. so what happened now, from what i gather, it's all these mills actually decided to compete against each other to gain market share. so the best part now is four months ago, five months ago,

there was no announcement of any type for the reduction of tariffs. they just dropped their prices. it went almost overnight. next thing you know. recently, i believe like three months ago, the prices went down another 20%. a year ago i was on here telling everyone it was 35%, 40% going up. david: so the tariffs were put on to kill off competition from our foreign competitors but the competition internally became so intense that it's now hurting the companies. >> exactly correct. think about it. the new york market -- david: bottom line, you can't kill competition. don't try it. it won't work. >> exactly. david: what happens now? >> now, this is the interesting part. now they will continue to drop prices. right now they are at an all-time low which is interesting, for the last two, three years. i'm curious to see what's going to happen next. construction itself, steel framing industry, all those products you use for concrete buildings and such, let's use new york as a market. it's being reduced. david: just to explain to folks,

you essentially buy the steel to make skyscrapers, right? >> that's correct. david: okay. go ahead. >> so that being said, the residential market has taken a massive hit in new york. if you notice, projects are still going but that's because it's been in the pipeline for the last three years. they are going to have financing problems come this year, next year. now it's the commercial cycle. commercial, industrial projects will be coming up. but it's not as plentiful as the residential market once was. you will see a drop, which they are. that's why mills are sort of panicking, if you will. that's why they're dropping prices. david: bottom line, if all the tariffs are taken off of steel, what's going to happen to these companies? >> now that's the interesting part because now you will allow imported steel to come in which is major competition to the steel market. canada being one. david: couldn't happen at a worse time for u.s. steel. >> it is a bad time, i agree. david: all right. thank you for being here. appreciate it. we have been talking about the iphone today. but stay tuned for our 11:00 a.m. hour. we have one of the top apple watchers in the world.

gene munster is on the show. he's been bullish on apple. does he think the company still has room to grow? we will be asking him. also, iran has threatened everybody, all-out war if the u.s. or saudis or anybody else conduct any military air strikes against it. no matter that they were apparently committing air strikes against their neighbors. we have arizona senator sally -- martha mcsally, sorry, wrong there, what does she think we should do about iran? she's on the show at 11:00 a.m. airbnb planning to go public next year. coming up, we have an early airbnb investor. he is bullish on the company but is he worried about the threat of regulation? that's next. managing type 2 diabetes?

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david: we have a little bit stronger move on the plus side of the dow. that's good news. also happening on the nasdaq. the dow is up 60 points right now. the nasdaq is up as well. meanwhile, alphabet and walgreens teaming up on drone deliveries. what's going on with that? ashley: it's a pilot program where they would deliver food and beverage over the counter medications, not prescription medication. you've got to get your prescription dropping out of the air from a drone. they are testing it in christiansburg, virginia, apparently which is the test city for many of these drone programs. they have been doing that there for the last three years. you want to know how many walgreens are out there? approximately 78% of the u.s. live within five miles of a walgreens. i want to know where the other 22% live. in the middle of nowhere. david: they are off the grid. all right. thank you very much. airbnb announcing that it will go public next year. joining us now is early airbnb

invest investor, santash. i love airbnb. i used it many times. i would like to use it in manhattan but i really can't. i don't want to be bothered by the possibility of regulators breathing down my neck. that's the biggest anchor around this stock right now. isn't it? >> right. regulations has been all along right from the beginning, the city ordinances and all that. but in the end, it's very popular. people supplement their income. you really can't stop that. there are really three constituencies here. you have homeowners, landlords and then you have the city government, regulators, the politicians. david: which in many ways are the worst because it's the local governments that get the heat from their hotel industry, right? they pay a lot of taxes so they have a lot of hold over the politicians. >> for now i think there's a groundswell of support from the homeowners who want to supplement their income. david: how can they, how can homeowners who aren't organized as well as the hoteliers fight

that lobby group? >> they r airbnb are fighting with airbnb, they are coming together with them, kind of going against them, because i think a few violators here and there but overall, i think they're fine. they are following the rules. you will see some tweaks around, airbnb has said they will follow the rules and enforce whatever is needed. there has to be a middle ground. there's a lot at stake for everyone. i think just for some stats, over $65 billion has been earned by the homeowners or renters, over a lifetime of airbnb. that's a big number. david: how about airbnb's cut in all this? is the money flow of the company good? >> it's very good. it's profitable. for a change you have a unicorn coming to market that's profitable, growing at 40% plus, and it's amazing. it's still growing. david: that's the hit larry ellison just made against uber, money flow was terrible and -- >> exactly. you can't use that against airbnb. and they just scratched the

surface in china and india. that's a growing market. another ten years that will be 40% of their bookings will come from outside. this that's a huge market. they are doing well. they are profitable. they need to work with airbnb. david: what have you heard about investor enthusiasm or not about this company right now? >> there is a lot of enthusiasm. everyone wants to get into this. there's huge demand for it. you will see that. the ipo will be well received because they have a good story to tell. let's see whether they do ipo or direct listing. that's a whole different story. they can afford to do both. david: minus the regulation, that's a big thing to try to ignore for a second, it is a good business model, minus the regulation. and there is a lot of competition not just in the united states but worldwide. you think the competition element could be a problem going forward? >> no, they have an early, the first mover advantage in this area so -- david: but just for an example, my daughter went to paris, france and wanted to do it on the cheap and she used one of their competitors in paris. it was a terrific experience

that she had but it was a direct competitor to airbnb. >> that's fine. it's still not a zero sum game. there's a huge market there, huge demand there and there are so many more listings to come to market. they just have seven million so far. there's going to be a lot more. so the supply is going to be there, demand is going to be there. not a zero sum game. the market is still open. david: management? >> management is very good. they have been very straight up right from the beginning. no scandals, no corporate governance issues which is a huge thing. i think net-net this is going to be a nice clean company. david: we wish you the best. i love it myself. i just see those regulators as breathing down the neck and just weighing them down terribly. >> it will be litigated to the hilt. in the end there will be common ground. david: good to see you. thank you very much. check the dow 30 stocks. we are up about 50 points now. there is more green on the screen than red. that is a good thing. president trump praising nancy pelosi after she rolled out her plan to lower drug

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david: saudi arabia revealing new images of that oil facility that was damaged in the drone

strike. look at this. pretty extensive damage. kristina: this is the oil field you are seeing now, these are images of ruptured pipelines, infrastructure that's been scorched. this is the second biggest oil field. that's why it's very important they get back to pre-attack levels. they insist that they will do that by the end of the month, hitting 1.2 million barrels per day. but the big concern is can they get to full capacity again or at least their pre-attack level. this is visuals of the attack last weekend you are seeing. david: of course, we remember the fire, the extraordinary inferno that happened when this thing went up. the question is whether next week, when the u.n. general assembly meets, whether the u.s. will unveil details sort of in a cuban missile crisis way, details of exactly how it came from iran which is -- kristina: and if the supreme leader will come here because he's been granted a visa. david: okay.

the less said of him, the better. house speaker nancy pelosi releasing a plan to have negotiate to negotiate drug prices and president trump actually likes it. what's up with that? ashley: praising nancy pelosi, can you believe it. yes, it's lower drug costs now act from nancy pelosi, basically allows the department of health and human services to negotiate price on some 250 or more drugs that lack competition. if they don't negotiate, there will be fines. they will also establish the cost through looking at the price of what other countries pay for their drugs, like australia, canada, france, germany, japan and the united kingdom. they average out those costs, then they come to a number. guess what? president trump praising this. let's take a look at his tweet. he says because of my administration, drug prices are down for the first time in almost 50 years but the american people need congress to help. i like senator grassley's drug pricing bill very much and it is great to see speaker pelosi's bill today. let's get it done in a bipartisan way. david: he wants a deal.

ashley: let's hope. david: thanks, ash. let's take a look at the big board once again. i think the best thing you can say about the market is it is kind of securely in the plus side, but it's kind of playing around, around 60 to the plus side, then it drops down to about 30 to the plus side. nasdaq has lost a little bit of its gain. but again, after yesterday's activity, this looks very good and we may have another plus week here. another check of apple. it's releasing the new iphone today and it hit $1 trillion in market value this morning. fallen off a little bit of that, but we will be following apple all day. they've got a couple of huge events not only the release of the apple 11, but also the reopening of their flagship store in manhattan. starbucks trying out a store for local ordering only. tell us about this. kristina: it is going to be called starbucks pickup. it will be at penn station. we don't know the exact day it's opening. the only way you can get goods from this starbucks location is

if you purchase it through the app, then pick it up. they are basing it off of a store in china, starbucks now. the only other format they have been testing in that market. they are bringing it here to the united states. interestingly enough, the app, they already according to starbucks have 17 million members that use the app. do any of us have it on their phone? i don't have it either. it's grown 14% in the last quarter. that means starbucks now will have their regular store format, the roasteries that are very fancy, very expensive, you can even get alcohol there, then now -- david: ever since we have installed in our company these fancy new machines that have coffee, when i can get it for free, why go to starbucks, period? ashley: amen. david: sorry. that's the way it is. we've got a lot more coming up. kids in new york city are getting a free pass if they ditch class today to attend a climate protest. charlie kirk is here. he's got a lot to say about that. also, president trump wants the epa to help san francisco get its homeless crisis under

control. next hour, we are going to be talking to a former epa official who says that's a bad idea. plus, mark zuckerberg will meet with house minority leader kevin mccarthy just a few moments. we will go live to capitol hill for the latest on the facebook chief in d.c. there he is. e age of expression. but shouldn't somebody be listening? so. let's talk. we're built for hearing what's important to you, one to one. edward jones. it's time for investing to feel individual. imagine a world where nothing gets in the way of doing great work. where an american icon uses the latest hr tools to stay true to the family recipe. where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. . . benefits and payroll.

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...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? david: 10:00 am on the east coast. 7:00 a.m. out west. happening now, facebook's mark zuckerberg meeting on capitol hill with lawmakers talking about internet regulations try to get his links in. facebook, monster stock has been doing great all year. another tech stock is doing well, although it has pulled back a little bit, but tim cook has a day. visiting apple's flagship store. he is celebrating the store's grand reopening.

plus he has a launch of the new iphone 11. really spectacular model. it has variations in the model. they're all out today. we're talking more about that and stock which hit one trillion dollars in market cap. president trump welcoming the prime minister of australia to the white house. we expect to hear from the president a little later this hour. as soon as he starts speaking, talking about policy, what matters to you and your money, we'll bring it to you live. the big board where we have been most of the morning since the market opened, up 60 points on the dow. same percentagewise on nasdaq. hillary vaughn following mark zuckerberg's movements in meetings with law lakers in washington. what is on the agenda, hillary. reporter: mark zuckerberg walked moments ago into the capitol. he is meeting with house minority leader kevin mccarthy

and judiciary ranking member doing collins. this is zuckerberg leaning into lawmakers that have been critical. they have been airing their grievances against the company over antitrust concerns, privacy concerns. conservative bias on the platform. that will be discussed at this meeting mccarthy is holding right now. afterwards we're expecting zuckerberg to make his way into the house intel committee chairman's office adam schiff for a meeting with him as well. this is part of a three-day tour never happened for zuckerberg. we haven't seen him on the hill over a year. it is very clear he is trying to get face time to put across a embracing posture with lawmakers who turned up the heat on his company. has he made progress. josh hawley, richard blumenthal are still not convinced that facebook doesn't need to be

broken up and not convinced facebook is really doing anything on privacy. david. david: anymore word on exactly what law make remembers saying to or negotiating with zuckerberg about? for example, if you do this, sell off instagram we'll lay off you and regulations? >> yeah. senator josh hawley said exactly that he said if you want to prove that you are serious about privacy, sell whatsapp, cell instagram. make it clear you are not buying up your competitors then maybe we can talk. facebook is facing several antitrust issues and more probes about conservative bias on the platform. they really want zuckerberg to show he is serious. hawley used the word, talk is cheap. that is his take following the meeting with zuckerberg. richard bloom said after hours long dinner with zuckerberg he thinks facebook has a long way to go before he is convinced they do not need to be broken up over antitrust concerns. david.

david: hillary, good stuff. thank you very much. check shares of facebook right now. it is up as it has been most of this year. 40% rise this year. john allison is with us to talk more about facebook and other things. john, i'm expecting some kind of a deal. zuckerberg is known to be very good at negotiating with politicians. first of all, whenever he faces off with him, they look like idiots because they don't know one thimble full he knows about technology. do you think there might be some kind of a deal? i will sell off part of what i have if you lay off some of the regulations you were planning? >> david, it's a good thought but i don't think it is going to happen. i don't really think it will solve the problem, really, that all of us are in the facebook playpen, whether facebook or whatsapp or instagram and in that playpen we're in there with some bad actors and some bad robots and our data is being sold to all sorts of people. i think the real deal. i think you're right, the deal

has got to happen and regulation has got to happen in the space, how we can control the privacy of what all of us are saying on these apps. if zuckerberg, who i agree with you, a very smart individual, can figure out how to satisfy people on that score, i think he can keep his companies. i think if he can't, i think he will have constant pressure. david: that is very good oversight. thank you very much for that one. let's move to microsoft. you like microsoft. you say it is all about the cloud. make your case? >> well, microsoft, it was all about windows 10 years ago. one of the extraordinary things this company has done is reposition itself to be the, have the high ground in the cloud, but not just in the cloud in terms of storing stuff, having applications but in terms of productivity. microsoft is the world's quintessential productivity improving company. in a world where we all are trying to increase our wealth in a healthy way, productivity is the key to the game.

so in that sense, i don't think microsoft's days are behind it. i think it has another big, big long-term leg if you're a long term investor, precisely because the productivity conundrum is really key part of increasing our wealth here and abroad. david: let's move to old tech, start with gm. a strike is ongoing. there are signs that it will affect other companies that rely on gm. gm suppliers tumbled this week. delphi is down 16%. american axle is down double digits as well. you still like gm? you think it will come out of this okay? >> i'm the last guy you would think would like gm i like a many things are part of leading edge but the reason i do is twofold. number one, i think it has become one of the best managed companies in the world having been in the old days having been one of the worst managed companies in the world with

mary barra. people underestimate gm and whole auto business i think, and gm thinks they are ahead of that. whether it is electric or autonomous. i think it is focus. part of the thing with auto companies they have to focus what they do best. gm led the way in terms of withdrawing from certain countries rand withdrawing from certain brands. that is the reason. i think it is much more after high-tech company that people understand. david: the proof is in the pudding. they have a 6% profit margin. if you look at ford they're under 2%. >> not only that they have abundant free cash flow. one of the great surprises will be when we go through slowdowns or recession right now we're not expecting but we think the that gm will continue to generate free cash flow and come through it far, far differently than it ever has in its past. david: very good. china, finally let's talk about that a little positive movement in there, we have released 500 products from the tariffs,

coming here. is, is this a truce or, at least it means that we're going in the right direction instead of tightening more, no? >> yes. you're absolutely right. i think there is every intelligent investor i'm aware of does not think that the trade war is yielding the productive effects that perhaps some people thought might. i think these little steps, right now they're little steps, are good signs toward trying to find a way to wind this thing down but in a way that actually produces something of substance, maybe creates the long term environment in which some much bigger things of substance can be achieved, which we all know have to be. david: of course today the trade deputies meet before the big meet national october. so we'll all be looking forward to that. john allison, really terrific stuff. thank you, john. appreciate you being here. >> thank you very much, david. david: look at netflix. putting that up on the screen, taking a hit. gerri willis at the stocks

exchange. what is going on there? reporter: dire analyst warning on the stock. every core isi saying based on recent data checks, this is not made up, based on data checks which influid a slowdown in app download growth we could get disappointment in international subscriber growth in next quarter for netflix. very big deal for the company. this is really the metric this stock gets tradegraded on. the company is expected to report october 16th. consensus $1.04. the stock is down 27% since the july peek. you see how the company has been trading. a dire analyst warning on subscriber growth in international markets. could be down, this is based on data checks. we're seeing is slowdown in app download growth. so big news for netflix. back to you. david: they need the "seinfeld" purchase right now more than ever. thank you, gerry.

thousands of new york city schoolkids will be skipping class to attend a global climate rally. the city has given permission to do this. this is really good use of school time? we'll be asking charlie kirk about that. amazon workers are also planning to walk out for today's youth climate strike. as jeff bezos pledges to be carbon neutral by 2030. we have details how he plans to achieve that, coming up. the pentagon reportedly planning to present president trump with several military options on iran. comes a day after iran warning the u.s. that a strike would provoke, quote, all-out war. our defense guy, james carafano, is next. ♪ at fidelity, we believe your money should always be working harder.

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david: on friday, on the big board, stocks are inching up a little bit. now 86 to the plus side for the dow. looks like good news for this week as a whole for stocks but particularly on this friday. nice when you have up day on friday. people hold the stocks for the weekend. ambassador lighthizer on capitol hill right now. he is meeting with democrats about the usmca, canada, mexico, u.s. trade deal. again that is more good trade news. the state department is granting visas to iran's president and its foreign minister to attend the u.n. general assembly next week. but they denied these requests from a bunch of other iranian officials. ashley, how many and why? ashley: looks like 124 iranian officials wanted to scrum on the to come to new york city. david: fun time. ashley: let's go to starbucks. david: free parking. ashley: exactly. clog up the city streets of

new york. about 40 of those visas were accepted. but you could argue about 84 of those visa requests were denied. the big one being the president rouhani, foreign minister zarif. >> 40 denied. 80 accepted. ashley: there were denials. there was a point none would get the visa because of what we have seen happen. david: a lot were pushing for that after the strike in saudi arabia. ashley: yes. david: let's bring in james carafano from the heritage foundation. what about this? a lot of people said there shouldn't be any iranians coming in. >> this is the u.n. general assembly meeting. it is very unprecedented for the u.s. to block entry of -- david: it is unprecedented for iran to hit oil supplies of saudi arabia, right? >> i mean during the height of the cold war we left the soviet leaders come here, so. it would be a precedent. the fact that the u.s. denied a number of visas, that was a

message to the iranians. david: what more do you think should be done right now? it seems every time we just tighten sanctions that is the only response to the aggression, they ratchet up that aggression? what should we be doing now, other than what we have been doing? >> first off my analysis is different. i don't see them escalating ratcheting up. i see them throwing punches, different ways to get out of the box. they are of a different kind. we tried to shut down strait, we stop. we shoot down a drone. we stop. i don't think we'll see this again. this is unprecedented attack. i talked to a lot of people. this was not something they had done before. it was a mass attack. it was well-targeted, it was designed to do a lot of damage. it was from iranian soil, they caught everybody flat-footed. i don't think that will 457 again. everybody is looking for that kind of strike. that is probably off the table.

david: we're talking about the u.n. do you think we will have enough evidence to present to the public to lay it all out at the u.n. general assembly? >> the saudis did a briefing t was pretty extensive. i thought pretty compelling. so i do think we are at a point where there is public information to clearly conclude it was 17 attacks. a combination of cruise missiles and drones. it was definitely from iranian territory but here's the deal. it was probably mobile launchers. even if you wanted to retaliate, there is nothing there but dessert. they found a spot nobody was looking where they could essentially make a shot at the saudis, give them a real bloody nose but, again i think it's a punch as opposed to an escalation of -- david: james i have to tell you talked to people in the pentagon, people who are in the pentagon, who are arguing you

get all sides, arguing for building a coalition, making a strike in iran, specifically against irgc military targets. i take it you think that would be a mistake? >> well, that could be one of the options that's on the table. look, i don't think the iranians care if you kill a couple irgc people. i don't think they lose a lot of sleep over that. what has been great about the u.s. so far, the reason why the iranians are trying these kind of crazy things because we are hurting them in ways they can't hit back, in ways that really hurt them. is when we shut off the money supply, we do the cyber strikes, we do the covert things, they feel that pain, it is deeply frustrating and embarrassing to them. i like the idea punching them in a way they can't get back, not getting into the tit-for-tat thing. david: jails carafano. great stuff. thank you, james. >> thank you. david: tim cook is visiting new york's flagship store for the grand reopening of the launching of the i iphone 11.

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david: happy friday, everybody. a happy market day. the markets are up 83 points on the dow jones industrial average. all indices are up. good news for apple. the new iphones are out today. a lot of presale activity. it is back to being a trillion dollar company. susan li at the apple flagship store here in new york. you're seeing a lot of people

line up to get their hands on things, right? susan: i think the enthusiasm out here on fifth avenue may have pushed apple up to trillion dollars. we're through the morning and there are a lot of eager apple fans lining up to get their hands on the new devices the iphone, the watch, the ipad. this is a special occasion since we have flagship store in manhattan closed since january 2017. it has taken 2 1/2 years to get it back up and running where you enter the iconic glass tube to go underground. we got a sneak-peek, inside with the crowds as they picked up their new apple iphone 11 devices. the reason why it took so long, apple tells us, they sunk the ground by seven feet. it is two times larger than it was a few years ago. a lot of people come through these doors, 57 million visited since 2007. each year more people visit this

store in midtown manhattan than they do the statue of liberty. they have tripled the size of the staff as well. they speak a lot of languages. there are a lot of visitors come through here. because of this special occasion we have ceo tim cook in attendance opening the doors this morning along with the head of retail at apple, deirdre o'brien, a very powerful person in the executive ranks. as you can see, we do have iphone sales slowing but if you look at amount of line-ups and people, see the amount of energy and enthusiasm here, there is still a lot of buyers of these phones. so don't discount apple. i don't think investors are today. david: susan, i don't want to sandbag you, but i want to know eventually, i wonder how much workers at apple get paid? because in this job market to find really talented people that are multilingual, they must pay a fortune for some of these people? >> they must be. apple has a lot of money.

they have over $200 billion in cash. david: that is where they should spend it. >> they do it well. i think they can afford to pay them them. david: susan li, thank you very much. staying on big tech, twitter announcing they are shutting down thousands of fake news accounts. ashley, tell me more. ashley: spreading fake news around the world. a lot is pro-government propaganda says twitter. places like united arab emirates, china, spain. for instance, accounts set up from china to sow discord between the protesters in hong kong. there was also accounts they found amplifying a pro-saudi message coming from egypt, u.a.e., directed at qatar and yemen. also you have these remotely controlled bots, david, they can be easily, once you figure them out, you knock them down, as you know they come back somewhere else. accounts suspended in spain and ecuador. david: whack a bot.

knock them down, they come back somewhere. president trump wants to use the epa to get san frond's homeless crisis under control. a former epa official says that is not a good idea. he will make his case. president is due to speak shortly with the prime minister of australia. they will talk policy, a lot of other things. you will want to hear that right when it happens. ♪ 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

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david: the president is speaking right now by the way. we are going to present that to you in a recording. we have to record it, put it out

what is called the spray. the bottom line, the president made some news. we have sanctioned the iranian national bank at the highest level. he was asked how high? the highest level, repeated that. very interesting information about what we're doing with regard to iran specifically on these economic sanctions which look to be at a whole new level than what they have been before. again, soon as we roll that out, you will see it live right here on fbn. the big board is up nicely right now. we're up about 88 points on the dow. we're edging our way closer to triple digits. chinese authorities say they have detain ad fedex pilot. that he was illegally transporting ammunition. i'm not sure i believe this. ashley: this was non-metallic air pellets in his luggage. he is a former air force colonel. he was detained september the 12th. this is example of china playing

games if you like, taking people -- no coincidence i don't think the background of this pilot played into it. gordon chang, mo who is our main china watcher, china has gotten on a hostage-taking bing. it is only going to get worse. that is gordon chang's place. i believe he has been let go. but he was held for quite some time. david: despite that happening, there is progress with china trade talks. it is happening in d.c. new this morning, president trump granting tariff exemptions to several hundred chinese products. edward lawrence joins us. he joins us here in new york. which products were granted these exemptions? reporter: we're talking 437 products of 400 things that will be exempted. laminate flooring, motors, motorcycles, electric motorcycles. items related to electric cars. david: related to the christmas shopping season.

reporter: related to the christmas shopping season. first of all the exemptions are retroactive. in some cases companies can recoup losses or tariffs from july 2018. this is long way back here. the president offering concessions a way to roll back tariffs which what our chinese sources said looking into this week, a possible roll back of tariffs. this is a way to roll back tariffs without actually rolling back tariffs. you have a huge exemption list in number of stuff imthe toed from the chinese. david: good stuff. we'll come back to you after this. i want to bring in our china watcher. a stanford professor. she is a member of the u.s.-china relations committee. professor, this sounds like it is progress, no? >> i think it is. it is clearly a good will gesture. two things about the exemption worry me. one, despite the u.s. trade representative's best efforts, hard to make a process like this fair. likely companies with the best lobbying will get exemptions.

two, chinese economy is not that dependent on exports anymore. i worry relying on tariffs alone isn't enough. china has only 0.8% of its gdp of net exports. we need to use other tools to win this trade war. david: like what? >> i would say for example, we need to start working with our friends and allies. when you have a bully in town like china is on economic issues, you want to have friend along. so if we get the europeans, the japanese, others on board, we'll be much stronger. david: looks like we might get mexicans and canadians on board if we get a usmca deal. how important is getting a usmca deal in our leverage with china? >> i think it certainly helps. we don't want to be fighting with our friend here in north america if we're pushing back against mercantilist issues with china and by the way the mexicans and canadians are also suffering from that chinese

mercantilism. i hope congress can resolve its differences with lighthizer and we get the usmca done. david: the president of course is against these regional treaties. he wants to be country specific in the treaties. usmca is an exception to that but when you're talking about europe, yes, it looks like we're making progress with the uk deal. we're making progress by the way with the japanese deal. we have a partial deal with japan. it is not a comprehensive one. will that be enough to sort of piecemeal this process together of a coalition against china? >> we used to do trade deals all as one enormous round of, gatt round, eurowide around as you well know, david. lately that has fallen apart because the u.s. wants to do less. partly because the rest of the world wants to do less. i think bilateral deals alone will not be enough but smaller regional deals help. maybe we find our way in a reformed trans-pacific partnership at one point i think

would be beneficial. david: interesting. professor, stay with us. i want to ask edward for a second, michael pillsbury, chief advisor to the president on these matters. yesterday he said trump may escalate the trade war if there is no deal soon. what do you think about that? >> he said 50%. the tariffs could go 50 or 100% related to that this is kind of a message to the chinese. basically we're doing concessions here, rolling back exemptions basically on 437 items. now it is your turn or things could get worse. kind of a message to the chinese there seems going out. we expect chinese sources there could be agricultural buy, the announcement that the u.s. has been looking for maybe either this week or next week, the u.s. or partsinevelos of the chinese trade delegation is going to take a trip to the midwest states to tour farms as a goodwill gesture. all this fits together for a clearer picture, david. david: let me go back to the professor on this because pillsbury's statements are

interesting saying he will ratchet the whole thing up but as we get closer to the election we know how the market will react, it will go down. that will not necessarily be a good thing for his re-election chance. >> i agree. i certainly hope do the markets or companies i speak to we get a trade deal sometime sooner not later. that we also do not lose sight of the fact we need a broad trade deal, not narrow that they buy some more of our products but deal with the structural issues at the heart of this. the idea american companies are really set up not to succeed in china, there is forced technology transfer, stealing our intellectual property all the things we know, i hope robert lighthizer, mnuchin and the negotiators are not losing sight of that. david: they're the smartest negotiators i have ever seen in terms of trade negotiators. they're in great position to do

that. professor, thank you for being here. >> thank you very much. david: switching gears to the federal reserve board. james bullard, president of the st. louis fed. he is explaining why he wanted fed to cut rates even more. he want ad full half percentage point. edward? >> he wanted a 50 basis point cut. he said he wants to get inflation in check. he is concerned about the fed undershooting a inflation target, constantly undershooting the inflation target, something charles payne talked about deflation, the concern there. he thinks we need to use the bullets, the weapons now in order to keep the expansion going. david: if in fact we do expand more, get a trade deal with china, market pose up, people spend cap-ex then you can raise the lates? >> that is his point. it is interesting last time we had a dissension on both sides going up and down, december 2014. five years. this is sort of unprecedented territory. a very divided fed going forward

where things should be right now. james bullard, the st. louis fed president believes that he needs that 50 basis point cut now. two other fed presidents say no, they shouldn't have cut at all. david: a lot of confusion in the fed. don't forget to tune in with his interview with boston fed president eric rosengren, 2:00 p.m. eastern time here on fox business. starbucks trying something new, openly a pick up only store kristina how does this work? >> you have to use your app in order to pick up the goods there. according to starbucks they have 17 million members downloaded the app. none of us downloaded unfortunately. can't speak for edward. we're seeing the growth rate 14% quarter over quarter. see a lot of strength. luck coffee, ashley is nodding right now, a popular regional rival here. they also do the whole pickup

thing where they accepted as. starbucks moving forward with smaller locations, makes it a lot cheaper in metropolitan cities. david: we have a rival fox, free coffee. a hard thing to beat. ashley: i am glad they put it at penn station. you don't want to hang around long. david: the man who correctly predicted donald trump would become the gop nominee in 2016, announced who he thinks will be the democrat nominee in 20206789 we'll tell you his pick. the president raising $50 million during his 2:00-day fund-raising swing through california. is the president more popular there than people think? we'll ask our california guy, steve hilton. he is coming up in the next hour. ♪ this is the age of expression.

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david: checking the big board. the dow maintaining steady movement between 50 to the plus side and 100. just short of that triple digit level for a large part of this morning but, again it is nice to be in the green on a friday. facebook's instagram is cracking down on weight loss adds. why are they doing this? kristina: because of a actress that pushed forward a movement from the good life. what are they doing? cracking down on miracle weight loss products, any type. they will more specifically crack down on advertisements geared towards, promoted to those under 18 years old, that are proproviding false promise. kim kardashian had three endorsements of a lollipop. it was a appetite suppressant lollipop. those three posts are taken down

exactly for anybody, for that matter. this is a huge campaign by jamil. she is an actress on the good place. david: kristina, thank you very much. president trump wants to use the epa to take on san francisco's homeless problem. we have the a former epa white house lee acon under president obama. thank you for being here. >> thank you, david. david: the president seems to have a point. the waste being left behind by these people is an environmental concern, is it not? >> i think the problem, david the president approaches these human beings as though they are the pollution. david: no, what they leave behind. dan, forgive me what they leave behind. again, people can say it is far more humane to get people off the street than leave them there? >> i think his concern, david, it is born out by his rhetoric in new york and in the white house, here, removing this from plain sight. talking about homeless people being in the vestibule of great

bridges and great buildings and great roads. david: for their own health and safety as well as people around them, dan. >> david, if you want to address this issue there are problems like the one, housing voucher that the community development block program in hud he denied, ben carson denied the very day he made the comments. he cut the hud budget by 18%. if you want to deal with mental health, health care, housing programs, that would be a very good place to engage in the homeless population. david: dan, that is not what exacerbated home let's problem. we tell you here in new york. we have a lot of experience with it. we had a period of terrible homeless problems in the '80s. giuliani got people off the streets. far more humane to do that, leave them there, defecate on the street and leave waste behind, dirty needles, not only an environmental concern it is very serious health concern. in l.a. you have cholera, cholera, for god's was left to

the worst third world nations in world. we haven't seen it in the united states with 19th century. >> no one disagrees homelessness needs to be tackled. there is city in the bay area with high homeless population, had environmental clean up issues to deal with it. a watershed needed significant repair made to it. there was federal grant, partnered with local grant, partnered with private dollars to leverage, get folks jobs clean up public health. that is approach that can work. the epa is not in business of fining cities or notice to city because of human habitants. david: i agree we should do what works. what l.a. and san francisco are doing doesn't work. what giuliani in new york worked for 15 years until de blasio came in and messed the whole situation up again. we should focus what works, getting people off the street the for their health, for their safety, for ours. i think that is very simple.

we have a slight disagreement. i agree hud should get involved. getting hud involved as well as the epa would be a good move. thank you for being here. i appreciate it. >> thanks, david. david: new york city has given schoolkids to take part in a global climate protest. over a million students given a free pass. should we be encouraging truancy? we'll ask charlie kirk that question coming next. ♪ every curve, every innovation, every feeling. a product of mastery. lease the 2019 es 350 for $379 a month for 36 months.

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david: check the big board. we're up 68 points now. apple is once again a one trillion dollar stock. of course it comes on a big day. they reopened their facility here in their flagship store in manhattan. they also come out with the iphone 11. big day for apple. once again a trillion dollar company. check jcpenney by the way. haven't seen a lot of movement from that exempt for today. it is up 17%. the reason is the company has been in talks with creditors to ease its credit problems. that is seen as good news by investors. happening around the world today, millions of people taking to the streets to raise

awareness about climate change. kristina, more than 1000 amazon employees expected to walk off the job, right? kristina: the first time in amazon's 25 years history workers talk about climate change, protest it. they feel amazon has not done enough to reduce its footprint, even though jeff bezos put out a statement yesterday he plans to meet the goals of the paris climate agreement. they plan to be a zero emission company by 2030. they will hit the 80% mark by 2024. they will order 1000 electric delivery vans. they will be working with supply chains to fix that. they are also going to be looking at campaign donations. if they give to a climate denier they will stop doing that. there is word that they will stop selling cloud services to oil and gas companies. they're looking to reduce the carbon footprint, half, 50% on all shipments by 2030.

and they are going to be lobbying washington to work on plans to -- david: forgive me for being, ashley, a little bit skeptical on this. ashley: yeah. david: some of this is jeff bezos trying to pay off dissent within the company, right? ashley: i think he is. 100,000 ev vans on the road by the year 2040. i think it is just -- he took the climate pledge yesterday. david: big move for the company but part of it is to take care of the employees who weren't so happy about the progress they were making on that front. ashley: right. david: in new york city public schoolkids are getting a free pass if they ditch class to attend a protest. here with more is charlie kirk. thanks for being here. i always have problem when schools are trying to encourage -- you're not supposed to have to encourage protests among high school student, right? they are supposed to do it on their own? >> yeah. look if someone wanted to protest something in new york city, they should protest the failing public schools. david: that's right. >> there are 84 schools in the

city of new york, 84 schools that don't even meet the state standards of what an acceptable school. so 84 schools in new york city are deemed failing. now mind you, there is more schools than any objective observer would deem failing. that is what the state considers to be failing. you know only 14% of black students in new york city are proficient in math? yet, the administration and people making decisions in the new york city public school system are now encouraging truancy to go protest what exactly? something that makes people feel good but doesn't actually do good. this is a disappointing day. david: the other point is, as you mentioned, education should be the key focus of schools but even if they get into these issues of protests offer talking about climate change, you have to have both sides. you don't put it all in one basket, what they're doing, unless you become a political propaganda institution instead of an educational one? >> sure. that is exactly right.

the whole idea of protest, you said it best, you're actually rebelling against authority. if the authority that you're engaging with is allowing to you exit school, you're not actually protesting anything. david: right. >> you're actually being encouraged to go, what you're saying advanced political opinions. this is too bad because i don't like seeing people in third, fourth, fifth grade, are honestly, statistics show it are not able to read and write at grade level used as political props. david: this is a disgrace. matt drudge, very rarely comes out on twitter saying essentially the nomination, democratic nomination is elizabeth warren's to lose. do you agree? >> i do. i think elizabeth warren is the most likely democrat nominee. joe biden hit the top of his polling started when he started his campaign. elizabeth warren, she embodies the ethos of the democrat primary which is constantly angry and bloodthirsty, seeking out revenge for an election they

were not supposed to lose in 2016. she is blending socialism, populism in very unique way. we'll see if she can keep it going. if you add bernie sanders and elizabeth warren's support together, that far surpasses joe biden. david: charlie kirk, always good to see you. >> you bet. david: we've been bringing all the latest on the iphone 11. it landed in stores today. apple hit one trillion dollars valuation earlier. the two things are not necessarily unconnected. top apple watcher gene munster is coming up. is he still bullish on the company? we're still waiting to hear from the president. he is meating this morning with the prime minister of australia. he already announced sanctions against iran in a meeting that we'll bring to you live. in slight delay. you will hear it here first. alien hunters are arriving in area 51 a facebook page rallied them to storm the secret military base. we have cameras on the ground

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david: it is 11:00 a.m. in new york, 8:00 a.m. in california. i'm david asman in for stu. we are expecting to hear from president trump this hour. now, we already know some of what he said, what we are going to present to you is a tape, tape playback of a scrum he's had. he is entertaining the australian prime minister and we know because of notes we are getting from inside the room of what he said. one of the things he said is there will be severe sanctions that are going to be put against iran's national bank. this could really paralyze iran in a way financially that they haven't been so far. this is a joint news conference with the australian prime minister. ashley, the bottom line here is if they can't move their funds at all, if we completely cut off their connections to the financial world, they are stuck

in a way they have never been stuck before. ashley: they are already really feeling the heat. i'm always surprised when i hear we are going to put these sanctions on iran. why don't we have every sanction available to us on them already? we know they are a bad actor. what happened in saudi arabia recently is another example. we should be holding their feet to the fire at the highest possible level. this i hope we will start to do that. david: the question is if we have to go further than that, will there be some kind of strikes against iran. if there are strikes, chances are it will start with air strikes against iran. one person that knows quite a lot about air strikes is the senator from arizona. she was with the united states air force for 22 years. she flew combat missions, the most highly decorated i believe, she can correct me if i'm wrong but female fighter pilot we have ever had in the air force and senator mcsally joins us in new york. senator, thank you for being here. appreciate it. >> absolutely. david: thanks a lot. you actually flew combat missions in the air force. you know what's involved in something like that.

are we ready to do so in iran if necessary? >> well, i have been deployed to this region six times, five times in the middle east and actually i'm heading over there soon. can't get into the specifics. look, our military is always available and ready if called upon in order to achieve our national security objectives. look, this is not a surprise, what iran has done. their malevolent activity has continued to be an issue with their terrorist actions both through their proxies and now directly attributed to them against saudi arabia but they have been attacking israel, shooting down our drone, oil tankers, you see this kind of -- david: do you think economic sanctions are enough, or are we going to have to send a harder message? >> i think there's a couple things that are really important here. the message to our european allies is get on board. the deal is dead, it was always a bad deal, iran was always the largest state sponsor of terror. this is an act of war. they need to stop looking at the almighty euro and coming on board for their own security and

their own oil. david: senator mcsally, i wouldn't interrupt you for anybody but the president. let's listen in. >> it's a great honor to have prime minister of australia and congratulations and thank you very much, mrs. morrison, thank you very much for being here. we appreciate it. this is a lovely ceremony. i hope you liked it. it was an honor of you and australia. okay? thank you very much. so we have a lot of things to talk about. we are talking trade, we are talking military. we have been great allies for a long time. there's no better partnership and we have developed on a personal basis a tremendous friendship and that helps. that helps a lot. but we will be meeting after this and having some very serious discussions about many things. i do want to, if i may, intercede for just a second, we have just sanctioned the iranian national bank. that is their central banking system. it's going to be at the highest

level of sanctions so that just took place and a couple of other things. we have our secretary of treasury here, steve mnuchin, if you want to say just a word before we begin. >> mr. president, as you instructed me, we are continuing the maximum pressure campaign. this is the last remaining source of funds to both the central bank of iran as well as the national development fund which is their sovereign wealth fund, will be cut off from our banking system. so this will mean no more funds going to the rogc to fund terror and this is on top of our oil sanctions and our financial institution sanctions. reporter: [ inaudible ]. >> this is very big. we have now cut off all source of funds to iran. reporter: goes all the way up to the very top? >> it does. >> right to the top. right to the top. okay? yes. right to the top. thank you very much, steve. appreciate it. so we are dealing with many nations, we are dealing with

some of the neighbors to saudi arabia and of course, we are dealing with saudi arabia. saudi arabia is very much involved from the standpoint of what we're doing and what they're doing and we're working together with others. we're also working on the cost of this whole endeavor and saudi arabia's been very generous. we want to see if it works out and if it works out, that's great. if it doesn't work out, that's great. in the end, it always works out. that's the way it is. it always works out. so you'll be seeing certain things happening but a very major factor is what -- these are the highest sanctions ever imposed on a country. we have never done it to this level. and it's too bad what's happening with iran. it's going to hell. doing poorly. they're practically broke. they are broke. and they could solve the problem very easily. all they have to do is stop with the terror. they have been the number one, as you know very well, number

one country worldwide of terror between sponsoring it and doing it themselves, and we can't have it. they have a tremendous potential. they have an incredible potential. i can speak on behalf of australia, too, in the sense we would like to see them do very well. we were discussing it before, the prime minister and myself. we want to see them do well but it looks to me like with what's happening, maybe they want to keep going at it, and when they go at it with us, there's no way they win. no way they win in any way or in any capacity. so we wanted to let you know about that. that's the way it is. thank you all very much. we are going to spend a lot of time with australia today. today is a very special day for the united states because we are honoring a great ally and a great friend. thank you. thank you. scott, would you like to say something? >> it's a tremendous honor for australians, for us to be here with the president and mrs.

trump. it's a very gracious invitation but it's an invitation that recognizes not just, you know, the great relationship the president and i have been able to forge so early, but this goes back a long way, this relationship. as the president often says, we have been in a lot of battles. those battles of course is what's happened in the field of conflict but we are battling continuously for a prosperous and a free world. >> we've never lost. >> we are going to keep doing great because we will keep this partnership together. it's a partnership where we both carry our own weight. we look to america but we don't leave it to america. reporter: [ inaudible ] australia on iran? >> he was saying we both would like to see a prosperous iran. for people right across the world to be able to benefit from prosperous economies doing well. that's what we want. this is why australia and the united states have always worked so closely together because that's what we want for our own

people. that's what we want for everyone. >> and we have been speaking a lot about this subject, the two of us. i think we have very similar views on the subject. reporter: do you want to address the recent whistleblower story? >> what story? reporter: the whistleblower? >> ridiculous story. it's a partisan whistleblower. it shouldn't even have information. i have had conversations with many leaders, always appropriate. scott can tell you that. always appropriate at the highest level, always appropriate. and anything i do, i fight for this country. i fight so strongly for this country. it's just another political hack job. that's all it is. reporter: on that point, did you discuss joe biden, his son or family with -- >> it doesn't matter what i discussed but i will say this. somebody ought to look into joe biden's statement because it was disgraceful, where he talked about billions of dollars that he's not giving to a certain

country unless a certain prosecutor is taken off the case. so somebody ought to look into that and you wouldn't, because he's a democrat, and the fake news doesn't look into things like that. it's a disgrace. but i had a great conversation with numerous people, i don't even know exactly who you're talking about, but i had a great conversation with numerous people, numerous leaders, and i always look for the conversation that's going to help the united states the most. that's very important. reporter: [ inaudible ]. >> i don't know the identity of the whistleblower. i just hear it's a partisan person meaning it comes out from another party but i don't have any idea, but i can say it was a totally appropriate conversation, it was actually a beautiful conversation and this is no different than you know, the press has had a very bad week with justice kavanaugh and all of those ridiculous charges and all of the mistakes made at the "new york times" and other places.

you've had a very bad week. and this will be better than all of them. this is another one. so keep playing it up because you're going to look really bad when it falls. i guess i'm about 22-0 and i will keep it that way. reporter: did you mention joe biden during the conversation? >> i don't want to talk about any conversation other than to say -- other than to say great conversation, totally appropriate conversation, couldn't have been better and keep asking questions and build it up as big as possible so you can have a bigger downfall. reporter: will you be asking australia to do more when it comes to china? >> we're talking about china all the time. scott has very strong opinions on china and i think i would let him maybe express those opinions. maybe do it right now. you're not going to get a better audience than this. >> we had a comprehensive trading partnership with china. we work well with china but as we have spoken many times, we need to ensure that as countries

develop and realize their potential, they come on to a whole new level. that means there can't be special rules around that. we have a great relationship with china. china's growth has been great for australia. but we need to make sure we all compete on the same playing field. this is something that the united states and australia have been very consistent on, that we need to move into this new world where economies are changing, china is a big economy, not as big as the united states but a big economy and that means we have to get on the same page with how the rules work. that's what we're working to achieve. >> i will say this. we are making a lot of progress with china. they are having a very bad year. worst year in 57 years. the tariffs are coming in to us. we are taking in billions and billions of dollars of tariffs. they are devaluing their currency which means the tariffs are not costing us probably anything but certainly not very much. they are also adding a lot of money into their economy. they are pouring money into their economy. but we're taking in many

billions of dollars. at some point in the not too distant future it will be over $100 billion. we have never taken in 100 cents from china. it was always the other way around. with that, they've lost over three million jobs, their supply chain is crashing and they have a lot of problems. i can tell you they want to make a deal. that i can tell you. they want to make a deal. so we'll see what happens. reporter: are you prepared for military action against iran? >> always prepared. there's never been a country more prepared. there's never been a country more prepared. look, i spent $1.5 trillion, we are spending another $738 billion now but i have spent $1.5 trillion rebuilding our military. we have the finest ships, the finest planes, the finest everything and actually, scott, and australia, they purchased a lot of great stuff from the united states over the past, military equipment that you have. we have the greatest missiles in the world, rockets in the world,

jet fighters in the world, planes in the world, ships, and we have under construction a number of the most powerful submarines ever built and they are getting very close to completion. we have the largest ship in the world right now, the "president gerald ford," the largest ship ever built, and just flew over it yesterday, actually. it's massive and beautiful. we have the greatest -- and i have to say this, when i got here, scott, it was a different world. it was a different world. we were very depleted. i actually saw one of the related networks today saying how strongly and good and how well we've done with isis. i defeated the caliphate. when i came, the caliphate was all over the place. i defeated the caliphate. isis. now we have thousands of prisoners of war, isis fighters that are prisoners of war, and

we are asking the countries from which they came, scott, from europe, we are asking them to take back these prisoners of war, and they can try them, do what they want. so far they have refused. at some point i'm going to have to say i'm sorry, you either take them back or we are going to let them go at your border. but they came out from germany, they came out from france. we captured them. we did everyone a big favor, we have taken over the caliphate 100%. if you remember, i was thinking about getting out when it was at 96%, 97%, but they were all over the place and we did it. we did it in record time. it was a total caliphate victory and now i want the countries to take back the captured isis fighters and if they don't take them back we're going to probably put them at the border and then they'll have to capture them again. because the united states is not going to have thousands and thousands of people that we've captured stationed at guantanamo bay, held captive at guantanamo bay for the next 50 years and us

spending billions and billions of dollars. we've done europe a tremendous favor. they mostly come out of europe. and we have done them a tremendous favor. and the united states is not going to pay the cost of thousands and thousands of isis fighter prisoners in guantanamo bay or some place else. we won't do it. so they have to make their decision. otherwise we're releasing them at the border. next. reporter: will you get your national security team on iran today? what do you expect to hear from them? >> i have a great new person. you know robert o'brien. lot of people wanted robert very badly. look, i had 10, 12 people that i thought were fantastic for the job. he's a great friend of australia. scott was telling me, he was very happy with the choice. robert is going to be outstanding. he just picked a deputy who was in the administration, you all know him. you know who the deputy is. i guess they have to announce that separately but he's fantastic. essentially, he's already on the

job. but you know, he did a tremendous job as hostage negotiator. we are -- we have a tremendous record, nobody comes close to our record with hostages. reporter: are you going to be discussing options for iran today? >> sure. sure. also, with secretary of defense, secretary of state. we are discussing with everybody. you know, the early move today was the central bank of iran. okay? reporter: would you support [ inaudible ]? >> it's always possible. reporter: will you expect australia to join any military action? >> we haven't discussed that. we will be discussing that later. but we haven't discussed that yet. reporter: would you consider [ inaudible ] 100% tariffs on china? >> i'm not going to get into that. right now china is paying 30% on $250 billion. that starts in another couple of weeks. as you know, president xi called through his top people and they

have a 70th anniversary, very important date for them and it happens to be october 1st which is the exact date of the increase in the tariff. and they asked us out of respect would i delay the tariff a little bit. i said how about if i move it forward. let me move it forward a little bit because they didn't want it to fall on the same day. it's exactly october 1st. so i said let me move it up a couple of weeks. they said no, no, no. so out of respect for president xi, who i do have great respect for, i moved it back two weeks. but right now it's 25%. it goes up to 30% on october 15th. reporter: [ inaudible ]. >> no, i haven't. i just tell you, everybody's read it. they laugh at it. it's another -- it's another media disaster. the media has lost so much credibility in this country. our media has become the laughingstock of the world.

when you look at what they did to justice kavanaugh and so many other things last week, i think this is one of the worst weeks in the history of the fake news media. you have been wrong on so many things and this one will be, i wouldn't say it will top the list because i think you can't do worse than some of the stories you missed over the last week or two, but the media of our country is laughed at all over the world now. you're a joke. okay. what else? reporter: has the -- reporter: will you talk about the conversation -- >> which conversation? figure it out. you're supposed to be the media. figure it out. which conversation? reporter: july 25th. >> i really don't know. i don't know. reporter: [ inaudible ]. >> so we're doing a great program, we have vice president pence is very much involved and we have a tremendous space program. if you look at our facilities, they were virtually closed up. there was crabgrass growing on

the runways. now they are vital. we're doing -- we're going to mars. we're stopping at the moon. the moon is actually a launching pad. that's why we're stopping at the moon. i said hey, we've already done the moon, that's not so exciting. they said no, sir, it's a launching pad for mars. we'll be doing the moon. but we'll really be doing mars. we'll be -- we're making tremendous progress. in addition, rich people like to send up rocket ships so between bezos and elon musk and others, we are leasing them our launch facilities which you can't get, there are no launch facilities like this, this is big stuff, so we're -- in texas and florida, we're leasing them our facilities so they can send up whatever they want to send up. it's okay with us. and they have actually done very well. they have had great success but rich people in this country, i don't know about your country, but they like building rocket ships and sending them up and it's okay with us.

say it? reporter: [ inaudible ]. >> i think scott and i would rather take a pass. would you like to be on there? i'm not sure but i know him pretty well. i think he and i will take a pass. there are a lot of people that want to go up. i have great respect for the astronauts. reporter: [ inaudible ]. >> say it again? reporter: [ inaudible ]. >> well, australia's mineral industry is massive, far bigger than that. very few, very few countries have anything approaching what australia has in terms of mineral wealth. you have really taken advantage of it and you have done it in a very environmentally sensitive way. i know that's very important to you. it's very important to scott. we talk about it a lot because that business can get out of control a little bit from the standpoint of environment. you have really approached it in an environmentally sensitive

way. coal as an example, you're the leader of safety in coal digging. we actually studied it because we're doing a lot of coal. you almost have no, you used to have black lung disease in australia. you almost don't have it anymore. you have got the dust down. you have wet mines. >> very technologically advanced industry. all the industry is robotics and all the way through. the critical minerals space, this is what we will be talking about. australia has a wonderful partnership with the united states, not just militarily, not just strategically but also economically. that's going to be a big part of this conversation we have today. >> environmentally, i have to say, environmentally, the things they've done environmentally with digging, digging is, you know, when you talk minerals it's about digging. what you have been able to do with the environment, having to

do with taking minerals out of the ground including, you know, i would say even especially because you are leading in coal, i will tell you i sent a whole crew over because your record is so good in terms of illnesses from digging, better than anybody in the world, so we are going to catch you on that. okay? reporter: how do you [ inaudible ]. >> we will talk about that over dinner tonight, i'm sure. there's another term here in washington, i understand. no, we have talked about taking in the president's cup later in the year which will be a great tournament, tremendous tournament. the president knows a lot more about golf than i do and certainly swings a club way better than i do. but he's got a big year coming up next year. he will do great there, if he has the opportunity, if mrs. trump has the opportunity, it's going to be a great spectacle in australia. >> interestingly, the pga tour invited me to go. i would love to do it. we'll have to see what the

schedule is but i would love to do it. it's a very exciting tournament. having it in australia, where you have so many great golfers, greg norman is a friend of mine, great friend of yours, i know, i think he will be here tonight. the first lady has done an incredible job tonight. we will have it for either the first time or certainly one of the few times in the rose garden. it's going to be, i watched yesterday the rehearsal. she was out there and it's going to be incredible. tonight's going to be a beautiful night. and the only thing that can dampen it would be rain and we're not expecting any rain. but if it rains, we head over to the state room and we will be just fine. but we are really expecting, i hope you will be able to see it tonight for a little while. probably you will. we will sort of make sure you do. it's beautiful. reporter: how critical is it that you build a coalition to address iran's provocations and does that start today? >> i always like a coalition. sometimes you find that people made a lot of money that you

would want in the coalition, they made a lot of money with iran which is when president obama made that deal, not only was it a bad deal but the united states didn't partake in a business sense and other countries, germany, france, russia, many other countries made a lot of money with iran. and we didn't make money with iran. which that was just one of the many bad parts about the deal. everyone else is making money and we're not. so we'll see what happens. look, the united states is in a class by itself. we have the most powerful military in the world by far. there's nobody close. as you know, we have spent tremendous and hopefully and we pray to god we never have to use it but we have totally renovated and bought new nuclear, and the rest of our military is all brand new. the nuclear now is at a level that it's never been before and i can only tell you because i know, i know the problems of nuclear. i know the damages that -- i

know what happens. i want to tell you, we all hope and scott hopes, we all pray that we never have to use nuclear but there's nobody that has anywhere close to what we have. reporter: [ inaudible ]. >> well, we look forward to it. we'll be there. you will be there? >> i will be there. >> and to you, it's a much longer trip. but we look forward to it. we have a big message. we have a big message. i haven't been back to new york in a long time. i see that our part-time mayor will be now going back to new york so he will be able to work a little bit harder but he dropped out of the presidential race a little while ago. too bad. he had tremendous potential. he only had one real asset. nou wh you know what it was? height. other than that, he had nothing going. okay. what else? reporter: [ inaudible ].

>> i think the united states has taken a very measured and calibrated approach to date. the thing about our partnership is we always listened to whatever requests were made and australia always considers them in our national interest and we have good conversations about these things, but the thing is both of us, we never get ahead of ourselves on these things. you take this one step at a time. we keep talking to each other. that's what we've always done wherever we've worked together and we will keep doing that. we have such an open line of communication. i appreciate the fact the president and i talk about these things, even when we're not together and we are going to keep doing that and we will just take these things one step at a time. >> you know, the easiest thing for me to do and maybe it's even a natural instinct, maybe i have to hold myself back, i remember during the debates when i was running against hillary and the democrats and the media, i view them all the same, i view their partnership very much the same, but when i was running, everybody said oh, he's going to

get into war, he's going to get into war, he's going to blow everybody up, he's going to get into war. well, the easiest thing i can do, in fact, i can do it while you're here, would say go ahead, fellows, go do it, and that would be a very bad day for iran. that's the easiest thing i could do. it's so easy. and for all of those that say oh, they should do it, it shows weakness, it shows -- actually in my opinion, it shows strength because the easiest thing i could do, okay, go ahead, knock out 15 different major things in iran. i could do that and all set to go. it's all set to go. but i'm not looking to do that if i can. i think i've changed a lot of minds. people are very surprised and many people are extremely happy. many people are thrilled and many people are saying oh, i wish you hit the hell out of them. let's see what happens. but it will take place in one

minute. i could do it right here in front of you and that would be it. then you would have a nice big story to report and i think it shows far more strength to do it the way we're doing it and again, whether it's next week or two weeks or three weeks, doesn't make any difference, whether it's now or in three weeks, doesn't make any difference. but i think the strong person's approach and the thing that does show strength would be showing a little bit of restraint. much easier to do it the other way. much easier. and iran knows they're on borrowed time. they're not doing well. i would love to see them do great. but they're not doing well. they're doing poorly. they're doing far worse than they've ever done before. they're having riots in their streets. they're having a lot of problems in iran right now. they could solve it very quickly. but the easiest thing for me to do is to say okay, let's go, let's just do it. very easy for me to do but it is interesting because when i was

campaigning, everybody here thought that i was going to be like -- it would be one day but what i have done is i have defeated isis. i have rebuilt our military to a level that it's never been before. spent a lot of money. the budgets are not so hard to fix for me but when you are spending $1.5 trillion so far, now another $738 billion on the military, but think of it, $1.5 trillion and we have the greatest in the world. i think restraint is a good thing. i think it's a good thing. reporter: [ inaudible ]. >> yeah, well, we were thinking about having a meeting. i didn't like the idea they couldn't produce a cease-fire. i wasn't in favor of that. i said no, they can't produce a cease-fire, why are we bothering. they thought that it was a sign

of strength to kill 12 people, wound others, badly wound some others, and one of those 12 people was a young man, young soldier from puerto rico, from our country, and when i heard that, i said i don't want to deal with them anymore. we have hit in afghanistan, we have hit the taliban harder than they've ever been hit in the entire 19 years of war. they have been hit hard. it's come back to me through absolutely impeccable sources that they're saying wow, we made a mistake with this guy, we made a big mistake. i was totally willing to have a meeting. i'll meet with anybody. i think meetings are good. i think meetings are good. there's no such thing as oh, gee we shouldn't. i really believe meetings are good. worse that happens, doesn't work out. that's okay. even then, you get to know your opposition. don't forget, i'm looking at them like they're looking at me. you get to know your opposition. you can see if they're real. sometimes you develop a relationship, like we do, but sometimes you develop and many times you won't, but you get to

know your opposition. i think the best thing that's happened to this country is the fact that at least for three years, the fact i have a very good relationship with kim jong-un. i think that's a positive. his country has tremendous potential. he knows that. but our country has been playing around for 50 years and getting nothing. we have a relationship. there's never been a relationship with them. we'll see what happens. it might work out, it might not work out. i'm not saying it will. in the meantime he hasn't been testing any nuclear. you've had no nuclear tests since -- for a long time. and he has been doing some short-range missiles but so does every country do short-range missile. every country does short-range. they're pretty standard fare. i will tell you that we have never had a country so strong. we are just a couple points away from a new stock market all-time high. i think we have done it over 112 times. there's a certain number, whatever it may be, i don't want to be specific because if i give

you the wrong number we will have breaking news, it will be on every newspaper i said 112 and it was actually 111. it will be breaking news. they will give me a pinocchio. let me just tell you, let me just tell you, the country has never been in this position. we have the strongest military we ever had. now we have rebuilt it after the $738 billion, we really have a rebuilt military. it's a great thing. and some of our friends are doing the same thing. i can tell you, australia's military is unbelievable. i saw the order that they put in for some of our most sophisticated equipment and i said that's really great. they have really upped it. i want to congratulate you. you have really done a job on your military. >> up to 2% of gdp next year. in the middle of a $200 billion upgrade, biggest increase in our defense as a share of gdp since the second world war.

reporter: [ inaudible ] is it right the united states [ inaudible ] julian assange? >> that's a question i haven't heard in a long time. i will leave that for you to determine. reporter: is it just a trade issue for you or do you see china as a strategic threat to the united states? >> well, obviously china is a threat to the world in a sense because they are building a military faster than anybody and frankly, they are using u.s. money. presidents before me have allowed china to take out $500 billion a year and it's really more than that. they have allowed china to steal our intellectual property and property rights and i'm not doing that. we actually very close to having a deal. we are very close. we had intellectual property, all the tough things were negotiated. then at the last moment, scott, they said we cannot agree to this. i said that's all right. we're charging you 25% tariffs,

then it's going up and it will continue to go up. and frankly, we are making so many hundreds -- the numbers we're taking in to our treasury, and you see it because sometimes you will see, look at the good reports. look at the great reports that came out two days ago on retailing, on consumers, numbers that nobody believes. well, i think a lot of it, we are taking hundreds of millions potentially over a short period of time, hundreds of billions of dollars worth of money is coming in from china that never came in before. so china wants to make a deal. i think we want to make a deal. we'll see what happens. but i view china in many different ways. but right now, i'm thinking about trade. trade equals military because if we allow china to take $500 billion out of the hide of the united states, that money goes into military and other things. reporter: your reaction to justin trudeau, can he survive this conflict? >> i was hoping i wouldn't be

asked that question. had to be you that asks it. you had to ask me that question, right? justin. i'm surprised. i was more surprised when i saw the number of times. i have always had a good relationship with justin. i just don't know what to tell you. i was surprised by it, actually. reporter: [ inaudible ]. >> i would say a man of titanium. titanium is much tougher than steel. he's a man of titanium. believe me. i have to deal with this guy. he's not easy. you might think he's a nice guy, okay? he's a man of real, real strength and a great guy. his wife is lovely and i want to thank you and i want to thank melania for the work. i hope you are going to be able to see because melania has, she's worked very hard for australia. you have done a fantastic, so beautiful. it will be so different. we look up to the skies and we

are just going to hope it's not going to rain and if it is, that's okay, too, because that will work out also. it always works out. thank you all very much. thank you. reporter: [ inaudible ]. >> there is nothing. it's nothing. nothing. what? >> great honor to be here. >> thank you very much, everybody. david: wow. extraordinary. we have an expression by the way in television, story count, that refers to how many different stories you get in in a particular -- think of the story count that you just heard from the president as he was meeting with the prime minister of australia. he talked about the stock market, iran, china, afghanistan, justin trudeau from canada, the whistleblower story, a trip to mars.

he covered the waterfront of extraordinary presser right there. not unusual. this is what the president does. steve hilton is here to comment on all this. sometimes foreign leaders feel a little uncomfortable being in the presence of a president who speaks more plainly than any president or any leader, for that matter, that i have ever heard. this particular leader, the prime minister from australia, seemed to be kind of amused by it. he was going along with it. they seem to have a great relation, no? >> absolutely. they really do seem to have a very close connection, get on really well as people and just as you were saying, honestly, i was watching that, that was absolutely classic trump, wasn't it. from beginning to end. david: absolutely. >> and the level of transparency as you say, this is why, we can get into the details of the individual stories and there were many, as you said, but just if you take a step back, he's changed politics forever, i think, because imagine after that, going back to the days

where you have a leader who sits there mouthing the platitudes that have been written for him by diplomats -- david: let's be specific. think about president obama. he would answer, again, he was a brilliant man, he had an engaging character, but he would answer one question about one subject, and the answer would take 15, 20 minutes. this is a president again, his story count was limit toed to t or three subjects. this president gets 20 subjects in one presser like that. >> exactly right. he's not giving you some kind of pompous lecture. he's not giving you planned words that don't really answer the question but make him look erudite and sophisticated. this president tells you exactly what he's thinking about the big issues of the day and he brings the people in to his thought process. i mean, the way he did that most clearly in what we just heard was obviously in relation to

iran and saudi arabia where he was basically explaining his entire thought process, i could do this, that would be very easy but actually my view is it's better to show some restraint. you never hear that. you have never heard that in the past from leaders. david: he said iran is going to hell. can't get more specific than that or more blunt than that. he also of course announced something significant, this embargo essentially of the central bank of iran. this is going to crush iranian leaders quickly. >> that's exactly right. you know what, it reminds me of something that took place in an interview i did with the president, a good few months ago now. i put to him a comment that had been attributed to lindsey graham. lindsey graham reported on a conversation with the president, he said look, the problem, this is the president speaking, the problem with you, lindsey, you want to invade everywhere except the places i want to invade. i asked the president okay, where do you want to invade? he didn't miss a beat. he said i want to invade everywhere economically. it was a very revealing answer because it shows that he

believes in that economic pressure, instead of getting entangled in military conflicts and that's exactly being played out with iran. david: think what you will of this president, you have never seen and you will never see the likes of him again in that particular office. steve hilton, great stuff. thank you very much for being with us. appreciate it. got to watch steve's show on every sunday, "next revolution." we always look forward to it. thank you. by the way, the president and australian prime min sister scott morrison will hold a live joint press conference at the white house. if you haven't had your fill you will get another chance. they already answered a lot of questions. that's coming up very shortly. while we wait, we have to talk about the other big story of the day, the iphone 11 is out as the apple flagship store opens in new york city. coming up, we have one of the top apple watchers in the business, gene munster, joining the show next. ♪

david: we just had that tour de force by the president. you will see another one with the prime minister of australia. they are going to have a joint news conference. we will be covering that. but look at the markets on the right-hand side. the president just spoke very hard talk about iran, saying that iran is going to hell, you will be seeing certain things, he said. we are always prepared militarily and this is after he first announced that there would be sanctions on the central bank of iran. think about it. if a country doesn't have the ability to trade with its central bank trading with the rest of the financial world, it is essentially cut off from the rest of the world financially speaking. there are always ways around everything with money, but this is the toughest sanction we have seen. it takes it to a different level. but saying again that it may

actually go beyond this probably put a little pause in the market. we saw it come down not substantially. we are still in the green. the market is up 35 but it has down off of the higher levels. some breaking news on e-cigarettes. a bipartisan group of senators have sent a letter to the fda to remove all pod and cartridge-based e-cigarettes from the market immediately until they can be proven safe. now let's talk about apple's newest iphone hitting the stores today. people have been lining up all morning. we have a top apple market watcher for us, gene munster joins us. luke ventures managing partner. gene, why should i give my x up for an 11? >> well, there are two reasons and they really hit the nail on both the features that are most important to consumers. that's a better camera and separately, better battery life. battery life that's four to five hours longer. i do want to, before i jump into the features, really kind of get some trajectory to your viewers

about how the day is playing out for apple. it's trending in a good direction for apple. we study these line counts and we have historically done that. i want to caution that this is just a glimpse into what the next iphone cycle looks like but what we found surprisingly today is that the line counts at the fifth avenue store, when the store opened, were double what they were a year ago, and we have also looked at three other stores that we have comparable data on and those lines were up 19%. so again, recognize that there's a lot, it's a global business, but it is -- there is a box office phenomenon where you can just kind of get a sense from a small data about the trajectory here. if you put all of this together, my suspicion is that ultimately the iphone franchise is going to be up slightly over the next year, just based on the small data and the investors are generally expecting it to be flat. so moving in the right direction

for apple today. david: all right. well, it's just a number but apple was above the $1 trillion mark in market capitalization. it's come off of that. now it's only $990 billion. that could change. we just saw it moving into the red, by the way, just barely so. what do you think of the market valuation of apple right now? >> i think there's tremendous upside here. it's largely misunderstood and effectively what i believe, i think it should be $350 plus type of a stock. we are talking about 60% upside. that may sound that it's out of touch here -- david: forgive me, gene. i'm so sorry to do this. we are seeing pictures of mark zuckerberg, of course he's inside the capitol today talking to legislators about various regulations that they are considering against social media in general, but facebook in particular, because it's kind of become a whole industry in and of itself. go ahead, i cut you off in

midstream. >> no, i was just simply illustrating that 350 plus is achievable and the reason if you just assume that this is more like a consumer staple business, the way apple's products come together, it almost is kind of a one-stop shop for a consumer tech offering. if you assign a similar multiple as procter & gamble or coca-cola at 25 times next year to apple, that kind of yields the $350 plus price target. surprisingly, apple is growing faster than consumer staples companies. it's going to have kind of mid to high single digit growth this year. consumer staples are typically flat. david: let me move on to another subject for a second. you cover a lot of waterfront here. airbnb says it's planning to go public next year. what do you think of this company? >> you know, it's really changed, fundamentally changed travel, lodging. i think in terms of what the

market cap is going to be, is this a good investment, hard to say because i don't know what an ipo would be priced at, but some pretty amazing statistics. they have paid out to people who have opened up their homes $80 billion. they came out with a stat that just over half of their users say that they can afford a better home because they can basically lease some of their home at times. so i think this is -- has a great framework and they will inch into the tourism space to be able to kind of provide curated experiences. there's about 40,000 of those globally available. david: we only have ten seconds. oracle's larry ellison calling uber quote, almost worthless. agree or disagree? >> disagree. it's likely more down than upside near term but it's far from worthless. david: gene munster, great to have you on. thank you so much. appreciate it. we are still awaiting the president's joint news conference with australia's prime minister.

we will be joined by trump 2020 advisory board member coming right up after this. ♪ imagine a world where

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david: president trump in just a few moments will be holding a press conference with australia's prime minister. we will bring that to you live when it happens here on fbn. let's bring in jenna ellis, trump 2020 advisory board member. jenna, we just heard the president and again, as i was talking with steve hilton about, the number of different stories that he talks about, stock market, iran, china, afghanistan, trips to mars, et cetera, it makes you think of all the promises he made in 2015 and '16 when he was running for the president, how many of those he's followed through. i'm cutting red tape, cutting taxes, holding china's feet to the fire, tightening our borders, getting us out of the bureaucratic paris accord on climate change and appointing judges, appointing judges and justices who adhere to the constitution. you just wrote a piece about that and why it's so important. >> yes. that's on foxnews.com. you know, with all of these premises you just articulated, i think the american people are genuinely seeing that this

president is so pro-america and so pro-everyone, all americans, and that's what he promised. for me as a constitutional law attorney, you know, i really think looking at the description of the office of the president in the constitution, the biggest and most valuable thing is the ability to appoint federal judges and also of course, being commander in chief of the military. those two things really define the office of the president. for president trump, when he was running, to say here is my list, i will be open and transparent, that has never happened before. i was kind of a reluctant supporter at that time saying okay, you are definitely better than the opposition but we will see if you follow through. i have been so incredibly surprised and grateful to this president that he is changing the face of the judiciary. david: and standing by, that's the thing about this president, of course, a lot of people in the media say oh, he doesn't stand by his people, look at the number of positions that have changed in his administration. he stood by kavanaugh when all of the stuff, all of the slime was coming out about kavanaugh,

and all this week as we saw what happened with the "new york times" and the story that they put out there that wasn't really a story because they left out a key element, he continued to stand by kavanaugh. he's standing by these people no matter how much they are slimed by the press and he's winning on that. >> he is, because he's exposing the left for what they do, which is to have political partisan interests and just throw out the media, they want a political fight in dothe court of public opinion rather than fundamental due process. i honestly don't think any one of the other republican primary candidates would have done the same and it would have taught the left their tactics might work. now we have originalist judges that are for the constitution, not for partisan interests. that's what the constitution requires. i'm so grateful to the president for that. david: jenna ellis, a new tennesseean, right? zero tax state. thanks to your husband, i assume. jenna ellis, good to see you. thank you very much. there will be more "varney" after this. ♪

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david: if you like what you saw in the last hour, those remarks by the president with the prime minister of australia, you would like what is coming up. a joint news conference is coming up. we'll cover it live here on fox business but lauren simonetti, what we heard at the top of that presser was interesting. to sanction the central bank of iran. the central bank of a country is key to their involvement with world financial markets. if that is cut off, they're really cut off. all their business is cut off. >> completely cut off t sends a strong, powerful message to other foreign governments if you do business with iran you risk the integrity of your own financial system. if you look at this attack, almost a week ago, on saudi arabia and oil supply, you could make the argument, maybe

iran is so broke as the president said they were trying to get their oil back some way on the market taking out saudi arabia's. david: they will not deal with any markets with the central bank in this position. neil cavuto here to take it through the next hour. what a wild hour it will be. neil: neil. neil: i think you're right. we're waiting the president, his counterpart, australia prime minister scott morrison. as david pointed out, they already had a lengthy exchanges with a lot of reporters with the president answering a lot of reporters questions with late developments. you can see that in the east room of the white house, reporters getting a chance to answer questions again. there will be a state dinner for the australian prime minister for the prime minister and his wife. last time the prime minister was feet --