>> basically, they inflated all a week now, i think this market the costs of housing, all the is sensing positive trade news tech billionaires and on china, and here's one of millionaires. now people can't afford homes. last week, the philadelphia fed report, manufacturing report, n. maria: all right. current conditions were sharply have a great day, everybody. lower. "varney & company" begins now. expectations six months from charles payne in for stuart this now, i have never seen that kind morning. take it away. charles: thank you very much. of divergence. good morning. the chart went like this. i'm charles payne. stuart is out today. if you look at the chart, it we have a ton of big stories, always goes in tandem. yesterday, the richmond fed, including the earnings parade that continues this morning. same thing. some big names, start with this is again, asking boeing. manufacturers, they are going to the stock actually going to be need much more workers, hours up. we are going to bring you a lot are going to be up, new orders will be through the roof. more. it can only be one thing. it actually was down a lot, it's it might be why boeing and these made a big turn. other companies are holding in the company says it still today. deirdre: that's a great point. anticipates getting regulatory of course, we also heard from approval for the max 737 to the chinese vice premier over the weekend. return to service before the end of the year. they are sticking to that he made some very optimistic comments. timeline. caterpillar also going to be up. liu he saying essentially he thinks the u.s. and china can it was down just half an hour ago. the market's going to open in work out some kind of trading half an hour. framework and he also said it this company reported lower sales in the last quarter, would be a good thing for both lowered its full year profit economies, the two largest outlook, but expects the cost of economies in the world, by the tariffs to be less than way, if the trade war could at expected. that's going to be key. least have a little bit stronger

and the stocks are obviously now having an impact on the than a truce and he said it broad market. looks like the dow jones would also be good for the industrial average will be off global economy. maybe 10 points, essentially that was a lot of positivity coming through from the vice flat. the other two indices, s&p down, premier and it seems like the nasdaq ironically up despite market has been, you know, texas instruments' bad news last coasting a little bit on that, night. in the next hour we will then in general, better than hear from facebook's chief mark expected earnings news. i know today is not the best zuckerberg. he will be getting grilled by lawmakers on capitol hill. example but to your point, if he will testify before the house you look at caterpillar and financial services committee and boeing, honestly, there's no it's all about libra, the huge sell-off. cryptocurrency zuckerberg is charles: lower level china expected to say that libra will officials, you know, just a little bit lower, also meet strict regulatory standards, poses no threat to continuing to say china is not trying to be the world's sovereign currencies and could maybe change income inequality preeminent power, which goes in this country. president trump heads to 100% against made in china 2025. pennsylvania this afternoon. he will be touting america's energy independence as well as deirdre: right. charles: i don't think we will hear president xi say that but the importance of fracking to that state's economy. to hear even lower level chinese remember, some leading candidates on the left want to officials say this now over the last couple weeks, to me ban fracking, some say on the first day of office. mitigating, you know, just putting down the saber rattling and we have news on hong and trying to say let's reel kong. the government announcing its this thing in. deirdre: this is what i think. formally withdrawing the i don't think they necessarily controversial extradition bill believe that but this is a chess which sparked months of violent match so they have to sort of counteract what the president is protests. the protesters are demanding doing and the confidence that

the market seems to have in him, other political reforms and whether they have something police accountability. a new report in the tangible to hang on to or not, "financial times" says the that he will pull a rabbit out chinese government is working on of the hat when it comes to trade. plans to replace carrie lam as hong kong's chief by march. it sort of happened when we got we have a whole lot of news to the first news that tariffs are go through this morning. "varney & company" starts right not going to increase, the now. tariffs in december are on hold, that was sort of the first leg of this. but it's this idea that they will have a partial deal, something to hang their hats on, and that that will be good news for the market. charles: there's a political calculus as well. charles: fox business alert, president trump just now tweeting, here it is, big we cannot overlook going into the election year -- success on the turkey/syria deirdre: president xi, president for life and we have elections border. safe zone created. here every four years. cease-fire has held and combat there are a lot of people who missions have ended. kurds are safe and have worked say yeah, this is easy for china very nicely with the u.s., captured isis prisoners secured. to just go in very very small i will be making a statement at increments, which in theory, we 11:00 a.m. from the white house. thank you. would be more anxious to make a we of course will carry that deal but i think the president statement live right here at 11:00 a.m. eastern time. and most of the senior members meanwhile, take a look at of the trump administration have dow component boeing. said we are not going to make just any deal. seems like every day we have in fact, the president himself been talking about this, a slew at one point in time said it's of headaches for the 737 max. this morning, boeing reported their earnings. either a big deal or it's no jackie deangelis gives us the deal. however, as of last friday, in d.c., it did seem to be like

details. okay, we will do this in phases jackie: what's really interesting is when i first and now we are in phase one. reported the earnings it was a charles: which is where mnuchin big eps miss for the company. and them were from the the revenues were slightly beginning. higher. everybody was thinking boeing it's so big and reverses 30 years of malfeasance, will have a really rough day but manipulation from china -- you can see there's a reversal in this stock. deirdre: you can't turn an oil it's now trading higher by tanker on a dime. almost 2% before the market opens here. charles: exactly. basically, what analysts are we are awaiting president saying after they dig in is that trump's announcement on syria. you will get it here live. more "varney" next. the 737 max crisis, if you want to call it, there's no real ♪ incremental negative news here. things are on track because the company said that it still expects to return to service in the fourth quarter. so the miss seems in line with the fact that the company is struggling with this, as long as they get things back and up and running, that's what investors want to see. i'm still a little surprised because tuesday you had kevin mcallister ousted, could dennis muilenburg possibly be next and you are dealing with that issue ♪♪ from last week, what did boeing know beforehand, what were pilots saying about safety issues regarding those text messages. ♪♪ charles: i was watching it closely as well. i felt like when they said the return to service will happen

because at least one major regulator will give it the green light before the end of the fourth quarter, you got to believe that's the faa. ♪♪ jackie: you would have to believe. that would be the one they are waiting for. obviously, they know more than we do in terms of their communication with the faa. i think if we get to that fourth quarter return, that's what investors want. charles: another dow component, caterpillar, also missing on the top and bottom lines. deirdre, they are blaming it on the china trade war, right? deirdre: they certainly are. they are talking about inventories from dealers. just to compare apples to colon cancer screening for people 50 and older apples, they are saying this at average risk. quarter last year, basically honey, have you seen my glasses? dealers were ordering $800 i've always had a knack for finding things... million worth of their goods. this quarter, they saw them ...colon cancer,to be exact. and i find it noninvasively... decrease by $400 million so that no need for time off or special prep. it all starts here... just shows you this kind of you collect your sample, point spread and what they're and cologuard uses the dna in your stool saying. they also say this weakness may to find 92% of colon cancers. persist because of global economic uncertainty and to your you can always count on me to know where to look. point, charles, they talk about the asia pacific region and oh, i found them! i can do this test now! sales and demand from there, and ask your doctor if cologuard is right for you. they are saying they saw really covered by medicare clearly lower demand in china. and most major insurers essentially, missed its estimates and cut its forecast

again. this is actually the second time this year. so expect some pressure on caterpillar and expect that to affect sentiment. there's a lot of people saying this is why we were worried about a trade war. charles: sure. of course. china was always going to be right in the cross-hairs of hi, my name is sam davis and i'm that. going to tell you about exciting want to take a look at facebook. chief mark zuckerberg getting plans available to anyone with grilled on capitol hill in the medicare. many plans provide next hour. hillary vaughn is there. broad coverage and still may hillary, set the scene for us because everyone's expecting save you money on monthly fireworks. premiums and prescription drugs. reporter: charles, we are with original medicare, you're expecting mark zuckerberg to covered for hospital stays and arrive here in just a few doctor office visits, but you moments but we did get a preview have to meet a deductible for of what he's expected to tell each and then you're still lawmakers today and part of that responsible for 20% of the cost. is that he is willing to delay the rollout of libra if he can next, let's look at a medicare supplement plan. as you can see, take the time to address regulators' concerns. he says he wants to be patient they cover the same things as original medicare and they also and do this right and that cover your medicare deductibles follows what secretary -- and co-insurance. but they often treasury secretary steve mnuchin have higher monthly premiums and said yesterday on capitol hill, no prescription drug coverage. that he told facebook their rollout of libra was premature. now, let's take a look at humana's medicare advantage zuckerberg indicating that he's plans. with a humana medicare willing to wait in order to

address all regulatory concerns. plan, hospital stays, doctor he's also going to make the case office visits and medicare that by launching their own deductibles are covered. and, of cryptocurrency, he's going to bring in about 14 million people course, most humana medicare in the u.s. that don't have advantage plans include access to a bank account into prescription drug coverage. in the banking system and also make them more competitive with fact, in 2018, humana medicare china, also aggressively working advantage prescription drug plan on an alternative currency as members saved an estimated well. he says if facebook is able to $7400, on average, on their roll that out, they can beat prescription costs. most humana china and capitalize on that. it's interesting, zuckerberg has medicare advantage plans help been very forward-leaning with you stay active and keep fit by law makers. he was here yesterday on the including a silver sneakers hill meeting with law makers, he fitness program at no extra was here last week meeting with cost. and, you may be able to the house financial services save on dental and vision committee chairwoman maxine expenses, because coverage is now included with most humana waters. interesting to see who comes medicare advantage plans. you prepared with their pointed get all this coverage for as low questions today and what pops up, it could be libra but as a zero dollar monthly plan there's a lot of other concerns on the table right now, too. premium in many areas. and your charles: hillary, thank you doctor and hospital may already very, very much. we will be seeing you throughout the day for sure. be a part of humana's large also, folks, take a look at network. if you want the facts, chipotle. they posted numbers last night. call right now for the free comp store sales up 11%, online decision guide from humana. there is no obligation, so call sales, giving the company a

great boost, but the stock is the number on your screen right down in part because delivery now to see if your doctor is in expenses were higher. our network; to find out if you nevertheless, it's been a great year, up 90% for the year. can save on your prescriptions and to get our free decision winnebago profits higher, guide. licensed humana sales agents are standing by, so call revenues did fall. now. the company is selling more rvs. don't forget about mcdonald's. it's down big yesterday but that's because they didn't meet charles: well, it's almost 11:30 comp store expectations. here on the east coast and we nevertheless, sales in the are awaiting president trump. united states were up strong, nearly 5%. on that, i want to bring in meanwhile, back on capitol hill, economist john lonski. facebook ceo mark zuckerberg is testifying on that company's john, what are these earnings digital currency, libra. reports telling us about the strength of the american hillary vaughn is with us. consumer? >> the consumer is the bright hillary, we got more fireworks, spot in the u.s. economy, if not huh? reporter: we do, charles. the world economy. when we look at retail sales, we congressman meeks making an emotional plea to zuckerberg compare it to manufacturing sales, construction spending and that if he really believes or is whatnot, we find that consumer concerned about people who are spending growth is the only growth rate that's rising right alienated from the banking now. charles: you know, what's system, about 14 million people here in the u.s. who don't have remarkable in my mind about the a bank account, he has other american consumer, wages are going up significantly, unlike ways to back up that concern and prove it, and he doesn't need to they have in more than a decade, they are confident about keeping profit off of it by developing their jobs, seven million jobs his own cryptocurrency. are open, yet the savings rate,

you know, is hovering around 8%. it feels like the consumer since >> we are interested in those the great recession has gotten -- just gotten a little that are not banks and those more conservative but they self-regulate so we have these individuals who are supposed to big months, then they kind of reel it back in, then we have be helping more than anybody these big months. >> i think that's good news. charles: i do, too. else. >> extend the lifetime of this we've got institutions here, already record long economic recovery. i don't know about these, you minority depository instituti s know, forecasts that a recession's starting in 2020, next year. i just don't see it yet. institutions, and if you want to show that you're doing the right charles: the initial now, some thing, then with all of the of these initial estimates we money that you have, you can do it here in the united states and have for holiday spending, holiday hiring, again, it other places also. suggests that we've got some pretty good economic momentum, not just for the rest of the that is an answer that you year but going into next year. should know and i would urge you >> very much, that's the case. to go back and find out, and i i believe that eventually, lower interest rates are going to would almost guess there's zero start kicking in. they are going to help on the dollars there, and you should housing front, though we do have a problem with housing not thereby then look at your policy because of high mortgage yields but rather because of high home and change it, because action prices. i don't know how that's going to work itself out. maybe one of the reasons why the speaks much louder than words. savings rate has gone higher is and you do have a trust fact or.

because the consumer realizes they have to save more in order to satisfy these more demanding i mean, i met with a lot of your downpayment requirements on a investors who are pulling out of new home. libra. let's just look at the news, charles: real quick, in the last because the other thing that's sentiment numbers, we saw most important to me is our concern about the trade tariffs actually declined, it was like democracy, and democracies 29% respondents mentioned it from 36%. around the world. 3% mentioned impeachment. you tell me, when you look at 2% mentioned gm. around the world, it seems to me i think the experts that facebook was an accelerant underestimate how smart consumers are. they are paying attention to all in many of the destructive politics of today. this news but they also are not letting it impact them to a certain degree. >> let me say one thing about reporter: we also heard from congressman brad sherman from the tariffs. california say that he thinks i looked at the september zuckerberg, the richest man in america, is coming before number, the u.s. import price congress today hiding behind the poorest people in the world, index excluding off petroleum products. this gives you a pretty good trying to give a good reason for indication whether or not tariffs are directly adding to inflation via import pres lawmakers to buy their excuse that they should be allowed to you know what that index did in develop and expand this september? cryptocurrency, not just here in it was d just don't see, some o the u.s. but also around the world. charles? charles: hillary, thank you very, very much. by the way, folks, there's some

data, where tariffs are putting big changes, ceo changes to tell you about this morning. deirdre, one is at nike. appreciable upward pressure on deirdre: one is at nike. broad measures of consumer prices. the former ebay chief, john let's not forget the stronger dollar in the background. charles: good stuff. always appreciate it. donahoe, former ceo, actually, thank you. hey, folks, the nba season kicked off last night. at ebay, he's a current board as expected, there were some member of nike, so this isn't a hong kong protests. tell us about it. revolution. this is just kind of a shifting deirdre: there was a fan in the staples center who was waving of positions, he was also this hong kong flag and so on working with a cloud computing social media, of course, you firm so i think this just speaks just had both sides weighing in. to the tech focus of almost you had a lot of people every single sector we talk praising, i don't know if we have video of the flag, had some about, but especially retail. so nike actually at the moment people praising the fact this gets about a third of its fan was flying the flag. business from online. you had others saying look, so john donahoe is somebody who politics and sports don't mix can support that, make that and of course, just to let you grow. nike's had a lot of success at know, the chinese state media online sales success, retail did not air any nba content and success in overseas markets as well as u.s., china included, and in fact, digital revenue for tencent, the media partner to espn and the nba, which has a nike, up 35% last year. so this is clearly where the $1.5 billion contract with the company is going. listen, it does have to fend off nba, they only showed essentially clips from the game. competition from adidas, it has so any time anything that was to fend off competition even not on the court was shown, they from sellers like amazon, who did something else with their obviously aren't producing their

own clothes, but it's a retail time. of course, there are a lot of competitor for sure. people talking about this. then some of the smaller shaquille o'neal is just the boutique names. so it seems like this is a play latest. a former player. voicing an opinion and i have to moving towards tech. say listen, he retired in 2011 charles: so the ceo, the stock so i think he's in an easier was at $50 in february 2016, position, if i may say so, than some of the current players. charles: it gets back to houston went to $300 -- rockets general manager. deirdre: mark parker did well. deirdre: certainly did, darryl that's a 90%, you know, over morey, he said he has a right to freedom of speech which is a those years, de wehe did well f tenet for the u.s., not so much them. charles: nike before, you had to be a major sports fanatic and in china. charles: thank you very much. folks, let's check on the equities futures here. retail person, and now to bring just gaining some traction. it to technology is phenomenal. it's not up a lot, but i will speaking of sports, dick's tell you, considering all the sporting goods, their chief news that we've seen this executive may be eyeing a morning, if the dow is off 150, presidential bid. jackie has those details. 170 points right now, no one jackie: yeah, that's what politico is reporting. would blink. that's what makes up 16 even ed stack is the ceo at dick's, more impressive. he is a businessman, very meanwhile, facebook's mark zuckerberg is testifying on reputable, and a big republican capitol hill in less than an donor. it looks like he may be eyeing a hour. he will be questioned about cryptocurrency, that libra third party bid because there project of theirs. we will take his opening were some focus groups, one in southern wisconsin, that statement live. the president heading to centered on some questions about pennsylvania for a shale him versus elizabeth warren, conference. donald trump, joe biden, for joe biden is anti-fracking. example, those were the main he's already in that state.

frontrunners here, and it's will trump be able to beat biden on some of his own home turf? interesting because the questions were basically focused that story's next. each day our planet awakens with signs of opportunity. around, you know, showing leadership, how businessmen could do this, how he could gain some traction potentially there, but with opportunity comes risk. and you know, it would change and to manage this risk, the world turns to cme group. the dynamic significantly in terms of the race that we're we help farmers lock in future prices, watching because you've got your banks manage interest rate changes democratic candidates that aren't really very strong, the and airlines hedge fuel costs. democrats are worried about that, you throw another all so they can manage their risks and move forward. businessman in, a lot of people are talking about bloomberg, for example, and things could change it's simply a matter of following the signs. a lot. charles: i'm really surprised they all lead here. cme group - how the world advances. the guy from starbucks, his name hasn't resurfaced. jackie: howard schultz. charles: yeah. howard schultz. it's earlier. people are thinking about parachuting in. deirdre: he wasn't, at least what i expected, because he does actually have an amazing american story. he grew up in brooklyn, he talks about supported housing, he's a and let me tell you something, rodeo... billionaire. that should have been out there and i don't know -- i wouldn't be here if i thought reverse mortgages took advantage charles: first person in the family to go to college.

great story. want to check mcdonald's and of any american senior, or worse, that it was some way to take your home. chipotle. earnings are out for both companies. mcdonald's shares, you know, you it's just a loan designed for older homeowners, and, can see slightly higher here. despite the fact chipotle is it's helped over a million americans. down, their numbers were absolutely phenomenal. i want to bring in john tapper, a reverse mortgage loan isn't some kind of trick to take your home. host of "bar rescue." consumers, they are flocking to it's a loan, like any other. these fast casual restaurants, these fast food restaurants. eating out is on the verge of big difference is how you pay it back. find out how reverse mortgages really work with aag's free, taking over eating at home. >> it's incredible what happens, no-obligation reverse mortgage guide. charles, when taxes are lowered, eliminate monthly mortgage payments, pay bills, medical costs, and more. disposable income goes up, we put a few dollars into consumers' pocket and they spend it. call now and get your free info kit. mcdonald's this quarter is up 4.8%. good domestic number. other mortgages are paid each month, but with a reverse mortgage, but what's interesting is while mcdonald's has grown, popeye's you can pay whatever you can, when it works for you, or, you can wait, louisiana kitchen, for example, introduced a chicken sandwich and pay it off in one lump sum when you leave your home. this summer and it sold out nationally. discover the option that's best for you. while mcdonald's growth continued, also burger king call today and find out more in aag's free, introduced the impossible whopper, which of course is the no-obligation reverse mortgage loan guide. meatless hamburger.

access tax-free cash and stay in the home you love. so all of this competitive and promotional activity is going on you've probably been investing in your home for years... but we are still seeing growth almost across the board. making monthly mortgage payments... it's a very exciting time. doing the right thing... and you know, with the higher potential comes more innovation and it's become your family's heart and soul... and we are seeing a lot of these well, that investment can give you tax-free cash just when you need it. companies introduce new products, for example, mcdonald's is working now on a learn how homeowners are strategically using beyond meat burger, to introduce a reverse mortgage loan to cover expenses, pay for healthcare, later this year. they're testing it right now in ontario. protect investments, and so much more. great potential drives innovation. look, reverse mortgages aren't for everyone but i think innovation drives promotion. and everybody is making more money. it's exciting. i've been 'round long enough to know what's what. charles: it really is exciting but it all comes down to you got i'm proud to be a part of aag, i trust 'em, to have a certain amount of confidence, the consumer has, i think you can too. right, to go out and kind of, i mean, listen, it's more trust aag for the best reverse mortgage solutions. expensive than still eating at home. >> it sure is. but you know, when known brands so you can... retire better. bring in new products, and we have initial brand loyalty to many of these companies, we're quick to try these new products. so established brands with new product introductions is working

big-time in the restaurant business. charles: i'm really surprised popeye's was caught so at for demand. the lines were huge and i hope they don't miss an opportunity but you'remessing with this, so charles: take a look at nike, folks. the company hired the ceo of come out with an even better cloud computing service now, chicken sandwich. i want to put you on the spot a little bit. we know delivery is the big trend but what's after that? going to open higher. what's the next big thing in your industry? >> well, you know, delivery is they want to be called a tech company. an important part but i think we take a look at dow component are going to find much more johnson & johnson. combined packaging. i believe that we are going to the fda said they discovered start to see commissary kitchens asbestos in a bottle of where multiple brands work together from one delivery hub. johnson's baby powder. now take a look at snap, so we'll be able to order from another quarterly earnings increase of users and revenue. multiple brands through one looks like changes made last year are starting to work. delivery service and one delivery. the stock has been wavering that's where i see it going. slightly higher, slightly lower i see a whole commissary kitchen since last night. then president trump heading multiple brand distribution to a shale convention in facility, almost, driving pennsylvania later today. delivery in the future. joe biden, by the way, is big shift in the way we go at already there. a new poll from cnn found that it. charles: it is a big shift. i don't mind telling you, you joe biden's lead among democrats just made me very hungry doing has actually increased to 34%.

he leads elizabeth warren at this segment. i'm done in 23 minutes. 19%, bernie sanders at 16%. catch me at the commissary. want to bring in congressman i mean, at the cafeteria. thanks a lot. lloyd smucker, from appreciate it. senator elizabeth warren, she went on a walking tour with pennsylvania. some small businesses yesterday in iowa, and that brings to mind congressman, the left wants to ban fracking. elizabeth warren says she would ban it in her first day of something that she said cable office. how is that playing out in your yeaa state? couple years back. roll tape. >> well, the natural gas >> i hear all this class warfare. industry in pennsylvania is no. booming. we are now the second largest there is nobody in this country producer of natural gas in the who got rich on his own. approach that the president has nobody. you built a factory out there, taken, the promises that he's good for you, but i want to be made, that he's kept, reducing clear. you moved your goods to market on the roads the rest of us paid regulation on the industry. it's now created 320,000 jobs in for. charles: all right. you think she told any of those the industry, 44.5 billion in business owners that? hey, you got a great fertilizer economic production. business but you know you didn't so it's great for our state and great for the country. we are now talking about energy build that. jackie: that is pretty shocking to watch. it's interesting because no, independence decades ago that would have been unthinkable. she's not taking that kind of charles: it's interesting, why approach right now. she likes to say that she is a the democrats would think this capitalist and that is what would sell in your state. differentiates her, for example, from bernie sanders. not only is the marcellus shale

but you know, people have to look at that tape and say that's a remarkable find, remarkable what she thinks. technology event for america, charles: right. the high-paying jobs it creates this propelled her to the national stage. and also, what it's been able to deirdre: that's what i was going help us with with our co2 to come back to. i feel like small businesses in emissions and things like that, some respects on the national we are actually meeting goals that were set by the paris platform have gotten i'm going to say ignored as a group. accord that hardly any other country is meeting. they have been disfavored when >> the uptick in natural gas some of these politicians chase production that we've seen has votes. so i do think she is in just a helped our country to be the country that has reduced strategic move trying to say i'm emissions by more than any other the person for small businesses. country in the past few years. i think she's tried to remind charles: i want to ask you to people, okay, small businesses switch gears just a little bit don't have the same need as because there are some concerns right now that usmca, for some these big bag corporations, she has openly said facebook should reason, may be losing steam. be broken up. congressional negotiators are i think she's trying to meeting with trade rep lighthizer later on today. distinguish herself, too, in her brand of capitalism. what do you feel is going on here? this seems to me to be the charles: i saw a survey a week ultimate slam-dunk and ironically, i don't see how ago, and the lowest rated in democrats who are trying to woo union workers and farmers could trustworthiness and honesty, 6% even not, you know, how nancy for big business, 6% for pelosi could not bring this in politicians. the biggest group that had the for a vote. >> let's put this in context of largest votes were small business owners. the economy we have now. we really do, as a nation, the president, by the way, spoke appreciate small business at this conference three years owners. at least we say we do in polls.

ago. pennsylvania is very different now than it was then. i don't know if we support them the economy is booming. enough but we certainly admire we have the lowest unemployment what they do. rate in history in pennsylvania jackie: we probably don't support them enough but they are right now. over 125,000 jobs created. the backbone of the country. how many people do you know the usmca is the next step. personally, i certainly do, that this will create a market for have become very successful and our farmers. that, you know, created a life for themselves and their family i serve in the 11th district. farmers, manufacturers, this based on small business in this will be an additional boon to country. they certainly shouldn't be neglected. our economy. i'm just not necessarily sure we have the votes to get it even if elizabeth warren is done. this is important to do. making that case that she would we need to bring it to the floor necessarily be the one to do it. now. i don't know why we're not doing deirdre: i think there's always that. this danger okay, well then, it will help the president to what's the definition of small, negotiate a better deal with china as well. right. at what point does she get to charles: wow. step in and say okay, you grew congressman, thank you very much. really appreciate your time this morning. >> thank you for having me. this small business charles: all right, folks, let's successfully, now you're a big business, now we have a problem. take a look at the futures as we charles: also, when you go after get closer to the opening bell. these large businesses, often it's the small businesses that gradually moving higher. nasdaq, again, i'm shocked get hurt. big businesses can hire lawyers, probably as much with nasdaq they can hire lobbyists, they after the texas instruments report last night. can take an economic hit. i was sure semiconductors would sometimes you actually are take nasdaq lower. building a moat around these big right now, it looks like it opens higher. businesses, making it more the dow jones industrial average at one point had a 100 point difficult for the small business that you say you champion to be decline earlier this morning.

looks like it could open higher this morning. competitive. deirdre: that's a really meanwhile, biogen continues interesting conversation, especially in the tech community, and there are a lot to skyrocket after yesterday's of people saying if you break up, for example, google or news that it will pursue facebook, i mean, they have approval for its alzheimer's treatment. lawyers for years. the question, is there any hope they can hire whoever they want this thing works, because it and drag this out as long as would be -- that's not possible. so you're not really, because the argument is you are stifling, big companies are stifling the next generation. even counting your families. dr. marc siegel will come in later on. and they are saying no, that's not true. to exactly your point, small business, small company, can't go hire lawyers that cost $1,000 as soon as the homeowners arrive, an hour. we'll inform them that liberty mutual customizes home insurance, charles: i think we are now so they'll only pay for what they need. starting to see officials -- your turn to keep watch, limu. here comes president trump. wake me up if you see anything. [ snoring ] >> well, thank you very much. [ loud squawking and siren blaring ] my fellow americans, i greet you this morning from the white house to announce a major only pay for what you need. breakthrough toward achieving a ♪ liberty. liberty. liberty. liberty. ♪ better future for syria and for the middle east. been a long time. but when i started seeing things, over the last five days, you i didn't know what was happening... have seen that a cease-fire that so i kept it in.

he started believing things that weren't true. we established along syria's i knew something was wrong... border has held and it's held but i didn't say a word. very well, beyond most during the course of their disease around 50% of people with parkinson's expectations. early this morning, the may experience hallucinations or delusions. government of turkey informed my administration that they would but now, doctors are prescribing nuplazid. be stopping combat and their the only fda approved medicine... offensive in syria, and making proven to significantly reduce hallucinations and delusions the cease-fire permanent, and it related to parkinson's. will indeed be permanent. don't take nuplazid if you are allergic to its ingredients. however, you would also define nuplazid can increase the risk of death the word permanent in that part in elderly people with dementia-related psychosis of the world as somewhat and is not for treating symptoms questionable. we all understand that. unrelated to parkinson's disease. but i do believe it will be permanent. nuplazid can cause changes in heart rhythm and should not be taken if you have certain i've therefore instructed the secretary of the treasury to abnormal heart rhythms or take other drugs lift all sanctions imposed on that are known to cause changes in heart rhythm. tell your doctor about any changes october 14th in response to in medicines you're taking. turkey's original offensive the most common side effects are swelling of the arms and legs and confusion. moves against the kurds in we spoke up and it made all the difference. syria's northeast border region. ask your parkinson's specialist so the sanctions will be lifted about nuplazid. unless something happens that we're not happy with. this was an outcome created by us, the united states, and

nobody else. nation. very simple. and we're willing to fwltake bl and also willing to take credit. this is something they've been trying to do for many, many decades. since that, others have come out to help and we welcome them to do so. other countries have stepped forward, they want to help, and we think that's great. the nations in the region must ultimately take on the responsibility of helping turkey and syria police their border. we want other nations to get involved. we have secured the oil and therefore, a small number of u.s. troops will remain in the ar area, where they have the oil, and we're going to be protecting it and we'll be deciding what we're going to do with it in the future. in any event, by the moves that we've made, we are achieving a much more peaceful and stable area between turkey and syria including a 20-mile-wide safe

zone. an interesting term, safe zone. that's the erm tterm we're usin. hopefully that zone will become safe. thousands and thousands of people have been killed in that zone over the years. but it's been fought for many, many decades and i think we have something that's going to be strong and hold up. turkey, syria and all forms of the kurds have been fighting for centuries. we have done them a great service and we've done a great job for all of them, and now we're getting out. long time. we were supposed to be there for 30 days. that was almost ten years ago. so we're there for 30 days and now we're leaving. supposed to be a very quick hit and let's get out and it was a quick hit except they stayed for almost ten years. let someone else fight over this long blood-stained sand.

i want to thank vice president pence and secretary of state charles: all right, folks, take pompeo for leading the american a look at biogen. this company will revive an delegation so successfully to alzheimer's drug it had actually shelved. the stock got a huge pop yesterday, up about 30%. turkey several days ago along it will continue that move today. with national security adviser want to bring in dr. marc o'brien. i want to thank them very much. siegel. explain why this is such a big the american delegation deal, doc. negotiated the original five-day cease-fire that ended kurdish fighters to safely leave, it >> because in alz diseaheimer' z just got them to a point where frankly, they were able, it enabled them to get out, to go disease, you build up a certain plaque in the brain. that's the holy grail, can we and move really just a few miles prevent this protein from building up. it interferes with brain cells in a slightly different communicating with each other. your memory don't work. you end up with alzheimer's. direction so this enabled them to do so. there is also earlier stages of countless lives are now being it before you get severely ill saved as a result of our and we have imaging studies now, negotiation with turkey, an p.e.t. scans, we can look at the outcome reached without spilling brain and biomarkers in the blood where we can tell you're one drop of american blood. on the road to it. question is, if the proteins

no injuries, nobody shot, nobody aren't there yet gunking up your brain, can we prevent them from forming. we are looking at vaccines and killed. i have just spoken to general now there's this other drug that biogen makes, it's targeted mazlun, wonderful man, the man therapy, an antibody. you inject an antibody and it in control of the kurds and he was extremely thankful for what goes right for that protein. the united states has done. by the time the protein's could not have been more already built up, it's too late. so can you get it as it's thankful. the general has assured me that starting to build up. what's happened now that's isis is under very very strict causing them to say wait a minute, they canned these two lock and key, and the detention studies but now found higher doses may have more effective -- facilities are being strongly effects at stopping the plaque maintained. there were a few that got out, a from forming, that gunk, and small number, relatively having people do better on speaking, and they have been tests. charles: it was a shock when largely recaptured. they pulled this drug the first i'm also sure that he will be time. the stock cratered. issuing his own statement very and so some are saying how this shortly. sudden epiphany. we had a great talk. i know you broaden it and gave but we saved the lives of many, larger doses. many kurds. >> larger doses. he understands that. charles: do you feel, though, the chances of it making it through a pretty rigorous fda

process? >> we will know in december war was going to be vicious and because they will unveil all the probably not very long and i'm data they have. all we have now is summaries. very happy to have been involved in it, as are our vice my prediction is that i think they are going to be able to convince the fda. i do think it's going to get president, our secretary of approved but not because of the state and all of the other higher doses. people on our team by getting because of the idea of giving it earlier in the process. that cease-fire to stick. before you actually have we've done something that's alzheimer's, i think an antibody very, very special. like this could actually help. charles: imagine that. but by getting the cease-fire amazing. >> i think they are on to something here. i'm not surprised the stock's after a tremendous amount of gone up. charles: thank you very much. the market is opening in less than five minutes. really tough war for a very the dow up 23. short period of days, that is don't look like a lot but we something very special. could be up 150. we'll be right back. our troops are safe and the pain and suffering of the three-day fight that occurred was directly responsible for our ability to (thud) make an agreement with turkey (crash) and the kurds that could never (grunting) (whistle) have been made without this play it cool and escape heartburn fast short-term outburst. with tums chewy bites should turkey fail to honor its cooling sensation. ♪ tum tu-tu-tum tums obligations including the protection of religious and ethnic minorities, which i truly

believe they will do, we reserve but shouldn't somebody this is be listening?pression. the right to reimpose crippling so. let's talk. we're built for hearing what's important to you, sanctions, including substantially increased tariffs one to one. edward jones. it's time for investing to feel individual. on steel and all other products coming out of turkey. we are now an economic powerhouse like never before and very importantly, like no other. our economic might is stronger than it's ever been and our competitors are not doing very well. we also expect turkey to abide by its commitment regarding isis as a backdrop to the kurds watching over them, should something happen, turkey is there to grab them. further, we implore european most people think of verizon countries to come and take those as a reliable phone company. (woman) but to businesses, fighters that the u.s. captured we're a reliable partner. we keep companies ready for what's next. and bring them back to their (man) we weave security into their business. countries for incarceration and virtualize their operations. for trial. (woman) and build ai customer experiences. until just recently, europe has we also keep them ready been very unresponsive in doing

for the next big opportunity. what they should have been doing like 5g. for a long time. almost all the fortune 500 partner with us. (woman) when it comes to digital transformation... now is their chance to finally verizon keeps business ready. act. american forces defeated 100% of ♪ the isis caliphate during the last two years. their medicare options...ere people go to learn about before they're on medicare. we thank the syrian democratic come on in. forces for their sacrifices in you're turning 65 soon? this effort. yep. and you're retiring at 67? they've been terrific. now turkey, syria and others in that's the plan! the region must work to ensure well, you've come to the right place. it's also a great time to learn about an aarp medicare that isis does not regain any supplement insurance plan, insured by unitedhealthcare insurance company. territory. it's their neighborhood. here's why... medicare part b doesn't pay for everything. they have to maintain it. they have to take care of it. only about 80% of your medical costs. there were some political pundits who responded to this part is up to you... yeah, everyone's a little surprised turkey's offensive in syria by to learn that one. calling for yet another american a medicare supplement plan helps pay for some of what medicare doesn't. military intervention. that could help cut down on those out-of-your-pocket i don't think so. medical costs. but halting the incursion by call unitedhealthcare insurance company today...

to request this free, and very helpful, military force would have decision guide. and learn about the only required deploying tens of medicare supplement plans thousands of american troops endorsed by aarp. against turkey, a nato ally, and selected for meeting their high standards of a country the united states has quality and service. this type of plan lets you say "yes" to any doctor or hospital developed a very good relationship with, including that accepts medicare patients. president erdogan. the same people that i watched there are no networks or referrals to worry about. and read giving me and the do you accept medicare patients? united states advice were the people that i have been watching i sure do! and reading for many years. see? you're able to stick with him. they are the ones that got us into the middle east mess but like to travel? never had the vision or the this kind of plan goes with you anywhere courage to get us out. you travel in the country. so go ahead, spend winter somewhere warm. they just talk. how many americans must die in if you're turning 65 soon or over 65 and planning to retire, the middle east, in the midst of these ancient sectarian and find out more about the plans that live up to their name. tribal conflicts. thumbs up to that! after all of the precious blood remember, the time to prepare is before you go on medicare! and treasure america has poured don't wait. get started today. into the deserts of the middle call unitedhealthcare

and ask for your free decision guide. east, i am committed to pursuing learn more about aarp medicare supplement plan a different course, one that leads to victory for america. options and rates to fit your needs through much work, we have done oh, and happy birthday... or retirement... in advance. things that everybody said couldn't be done. today's announcement validates our course of action with turkey that only a couple of weeks ago charles: all right, folks. was scorned and now people are that's a live look at capitol hill. saying wow, what a great facebook chief mark zuckerberg will testify at the top of the hour on libra cryptocurrency. outcome, congratulations. we will bring you his opening it's too early to me to be statement. any fireworks also, you will be congratulated but we've done a good job. hearing those as well. we've saved a lot of lives. to wework founder adam most importantly, we have neumann. he is in for quite a golden avoided another costly military parachute. deirdre has the details. intervention that could have led deirdre: yeah. so $1.7 billion is more or less to disastrous far-reaching consequences, many thousands of his benefit. people could have been killed. now, that is not exactly what goes in his pocket but he is the last administration said selling off about $1 billion, assad must go. they could have easily produced that outcome but they didn't. sorry. we have some stuff on screen we in fact, they drew a very wanted to alert you to.

the first slide was what wework powerful red line in the sand, has committed to paying its you all remember, the red line landlord. so $47 billion over 15 years. in the sand, when children were and the deals they have are just gassed and killed, but then did $4 billion over 15 months. not honor their commitment as you can see the difference between those two numbers and what it points out is that adam other children died in the same neumann is an example of what horrible manner. not to do as a founder. but the underlying business still has a lot of problems. but i did honor my commitments charles: still has a whole lot with 58 tomahawks. of problems. that's the opening bell ringing right now. eight long years after president the board is populating. obama's ill-fated push at regime boeing, we told you an hour ago that would be the number one performer, you would have said no way. change, u.s. troops are still on it was looking down. the ground in syria. we open at $345. quite a reversal. more than half a million people they missed on profits. revenues beat slightly. are dead, hundreds of thousands then there's caterpillar. their profits and revenues also are terribly injured, and missed the street, virtually millions more syrians are unchanged there at the start of trading. chipotle had an amazing quarter. displaced. it really is a nightmare of they posted big numbers last night. misery. across the middle east, we have it's unchanged. seen anguish on a colossal hit by delivery expenses but you know what, sell on the news. it's up 90% this year. scale. we have spent $8 trillion on i wouldn't be a seller. and snap, while they report more wars in the middle east.

users, that stock is up just never really wanting to win slightly, fractionally. those wars, but after all that stock with a big short position. money was spent, and all those want to bring in shah gilani, lives lost, the young men and women gravely wounded, so many, dreer dre the middle east is less safe, deirdre is with us and jackie deangelis. listen, you can see the stock has gotten down to the $330 less stable and less secure than level several times since the before these conflicts began. 737 saga began and buyers have emerged, and they emerged even the same people pushing for before the start of trading these wars are often the ones today. it's sort of the assumption that demanding america open its doors at some point this will be to unlimited migration from resolved. >> i think that's exactly it. maybe there's a little short war-torn regions, importing the covering here. i expect the stock to continue down after the news. i don't think the earnings were terrorism and the threat of terrible. i think that -- i don't see them getting better in the near terrorism right to our own future, certainly not the next shores. but not anymore. quarter. barring the max being passed by my administration understands faa and getting back into service which i don't see happening now, i think the stock that immigration security is should be a little bit lower. i think i told you off camera, national security. as a candidate for president, i i'm a buyer at 320. i have large orders down there made clear that we needed a new to buy. you may not get there. approach to american foreign charles: you may be looking a

policy, one guided not by year from now at 500. you know what, just to save ten ideology but by experience, bucks. >> everybody knows this is a go-to stock. history and a realistic it's them and airbus. you have to be in the stock understanding of the world. eventually. we are building up america's it's a question of what level you want to get in. charles: these are four magic military might like never numbers, 20, 44,000, 6.3 and before. investing $2.5 trillion since my 9.1. over the next 20 years, 44,000 commercial planes will be bought around the world, 6.3 trillion election. but we will not be depleted. dollars, the servicing on them, we will not happen again, it will not be allowed to happen $9.1 trillion and two companies again, where our military is to split it. deirdre: i agree the numbers depleted, fighting in areas of weren't that great but analysts said there was no incrementally the world where we shouldn't be. negative news on the 737. when we commit american troops investors wanted to know, we to battle, we must do so only priced this in, we knew it wouldn't be great but things will get back on track. when a vital national interest and they have other products, they have other models. we know the 737 max is grounded. is at stake. and when we have a clear everybody knows what that news is. objective, a plan for victory the company took the action it needed to take, grounded the planes and there's other models. and a path out of conflict, that's what we have to have. charles: real quick, before i'm we need a plan of victory.

going to bring up another dow we will only win. component, but deirdre mentioned our whole basis has to be the we. right plan and then we will only i talked about this months ago win. nobody can beat us. when neumann sold stock. deirdre: bad sign. nobody can beat us. i want to again thank everyone charles: i'm saying if this on the american team who helped stock had gone public, shah, at $47 billion, it would have achieve the cease-fire in syria, crushed the stock market overall saved so many lives, along with and ended this rally, and it would have been a major black president erdogan of turkey. eye for wall street. wall street actually dodged a bullet. >> big-time. i agree with you. a man havi've gotten to know ve well and a man who loves his this would have crushed the market for the simple reason country, and in his mind he's doing the right thing for his there would be no constance left country, and we may be meeting in any ipos coming to market. in the very near future. i also want general all the ipos in the tech sector in general. this is not a tech stock. charles: $8 billion valuation. mazlum for his understanding and for his great strength and for deirdre: i feel like that shows the health of our system, is his incredible words today to that this didn't go public. it got pulled because people me, but me just as a were like okay, this is honestly representative of the united a dumpster fire. states, because he knows that we charles: although it got pulled after uber was a disaster, lyft saved tens of thousands of was a last week, smile direct got kurds, and we're not talking in

reiterated on october 7th by all the long term, we're talking in the underwriters and the stock continues to get crushed. the short term. we're talking something that was yesterday, two days ago, 14 of going on immediately and the underwriters upgraded something frankly that was peloton. that continues to go down. planned for a long time. wall street better be very careful. the job of our military is not goldman sachs put a target of $36 on peloton this week. to police the world. they are nuts. other nations must step up and jpmorgan doubled their target on smile direct from 14 to 31. do their fair share. you know, if you are the lead that hasn't taken place. underwriter and keep telling people to buy these stocks, as today's breakthrough is a critical step in that direction. they are getting hammered, you lose credibility. thank you all very much. are you putting investment god bless america. banking ahead of the investor, thank you. thank you. reporter: mr. president, you they better be very careful. said the isis fighters had been that's all i'm saying. want to switch gears now, back to caterpillar, because they did miss on the top and bottom recaptured. charles: joining us, senator lines. deirdre, we are seeing movement rick scott. senator, your thoughts on what the president just spoke to the just slightly higher. deirdre: which is a little bit nation? >> i think first off, i want to of a puzzle. thank him for his hard work. i don't know if that reflects optimism about u.s./china trade i hope this is true. i hope the cease-fire works, the finding a framework. we heard from some positive comments over the weekend from kurds are in a safe place, the chinese vice premier liu he turkey does not continue to saying essentially he thinks the invade syria. u.s. and china can work out some i agree with the president that we don't want to be in conflicts sort of framework.

there were just positive noises. at this point that's just what forever. you know, countries around the we are listening to. world, especially european but yeah, caterpillar said not union, they have to start showing up to help make good surprisingly, lower demand in things happen. china, then they say it's affecting the way that people i still want the make sure that we understand, the kurds have buy here. again, not a surprise. if you look at this quarter last been our partner iake care year, they had something like $800 million worth of orders. of them, be their partner. turkey is not acting like an ally. this quarter they just reported, they're not acting like a they had a decrease of $400 friend. they bought the russian missile system, the s-400. million. that just shows you, that i think we have to continue spread, to what extent business leaders are anxious. sanctions until we understand they have no confidence. that they're not going to be on they don't know whether to russia's side. they are part of nato and as invest in equipment or people or how to move forward as long as part of nato, you have to stop the trade war continues. the jackie: conversely, the market is really looking at all this, even boeing made some comments about trade and the 787 cut in today hopefully we can down the road celebrate because there is production. the market's actually looking at a cease-fire that work. this and saying we expect a trade deal and i think that's kurds are in better place, what you're seeing in both of these stocks today. american troops are coming home. i don't think we can sit here deirdre: that would have to be it. jackie: even when management and say erdogan is our friend doesn't necessarily see it coming, the market has because he sure doesn't act like confidence that it does. our friend right now. maybe it knows something. neil: seems like the litmus test >> there may be market effect in here. we are near all-time highs for is the so-called safe zone is the benchmarks. exactly that. to your point, kurdish allies

if this is the worst news out, are indeed safe and there are no maybe i should be buying into these stocks because the market has another leg to go higher, especially if there's positive reprisals. news out of the trade talks, the sounds like president trump is market will go higher. not saying it's a slam-dunk, and maybe it's time to buy in. charles: if we break out, this a great framework and that it market will take off. there are a lot of money will work out. managers who have not put -- i remains to be seen. mean, we had cash levels this we're talking about centuries of year out of this world. my theory is that if you look at war there. >> erdogan has not been our the richmond fed manufacturing friend for quite a while. report yesterday, and philly fed with he bought the s-400 i from last week, it's amazing. i saw something i saw from the proposed a resolution in the philly fed report last week i senate. we got to sanction him for that. never saw before. current went straight down, they're part of nato. expectations through the roof. they shouldn't be buying russian manufacturers are not saying it out loud, i think they expect a missile systems. you can't be part of the f-35 major trade deal within the next six months. i think you are starting to see that with some of the trade sensitive stocks as well. and buying russian missile let's talk about some big systems. you can't say they are a great ceo changes this morning. nike hires the ceo from a cloud friend and ally. charles: you allude to the fact company, service now, and then that europeans never say service now hires the former ceo of s.a.p. anything, that is all on us. deirdre, pretty interesting i appreciate what you're saying about the nba, the controversy. merry-go-round. deirdre: i like what you said the season has begun. earlier. you said nike wants to be a tech your take what we saw so far? company. i think for any of these >> first off, shaq, you saw that

consumer-driven companies to succeed, that has to be at least part of the pivot. shaq, an nba player cares about i feel like that is what's going human rights in china or in on with nike. hong kong. of course, handing over the ceo fascinating. first, that is number one. role to the former ebay chief. so again, just to underline that i'm very disappointed in the nba connection to tech and how to i'm appreciative of what shaq evolve your brand and of course, did. he is wonderful individual. nike has its own sort of he cale with me after the pulse tracking devices and runners and terrorist attack to visit bikers and all sorts of victims in orlando. athletes, amateur athletes are i'm disappointed that the nba happy with the product. charles: last night when wants to sell jerseys, sell chipotle, one of the highlights was their digital sales. shoes. only focus on human rights abuse omnichannel is huge with all of them. if it will help shoes and starbucks considers itself as jerseys in the united states but much a technology company now as anything else and they are not in china. collecting data, by the way, on they don't worry about it there. us that they might be able to charles: we appreciate you use in an intriguing way in the holding on. future. appreciate your thoughts. >> charles, bye-bye. deirdre: every single company is a tech company. charles: the s&p 500 would just charles: guys, real quick. be the s&p tech sector. your thoughts. an eventful morning, jackie. how do you differentiate then? >> when you listen to what the >> i don't know. we want tech to lead once again. president had to say it is tech led since 2009. everybody would like to see tech remarkable. lead again because that's where he said we'll take the blame, the growth has been. the credit and the u.s. did this nike, going back to nike, i want and the cease-fire is, he was to go back to nike, you look at taking credit for it.

management at nike has been fantastic. that's where we stand right now. the stock is incredible, near its all-time highs. >> trying to see if it would affect the markets. it's just, they have been such a it doesn't seem to. well-run company from phil the markets came off ever so knight to parker who took it slightly. over from phil knight in 2006 no big reaction. and i think the new ceo is going charles: dow jones industrial average up 47 points as i hand to do an even better job. it over to neil cavuto. charles: conversely, under neil: thank you very, very much, armour, kevin plank is moving charles. a couple quick points what the aside, i think he's made some president says before i get to serious mistakes. the mark zuckerberg testimony there's no doubt about it. going on capitol hill. i think that's going to help we are still trying too find their stock. evidence where he said thousands >> i agree. of kurds who were saved as a charles: i don't know a lot about the resume of the guy taking his place but i think result of this decision and this move and lifting of a freeze kevin plank becomes something of a lightning rod. that didn't help. that had been in existence now >> not only that, he got a little distracted with personal beyond just what the turks projects and i think that's probably a good change for under committed to already. that was prompted by the president's removal of u.s. armour. troops from northern syria in charles: mark zuckerberg the first place. arriving in capitol hill. so lifting that cease-fire and we are told it's not a robot, then imposing it, keeping it in it's the real deal. you know, i think he's got an place was something that necessitated by his actions. again it is russian troops in impressive game plan. deirdre: he has to. the area working with the turks that is policing all of this, not u.s. interests. charles: he's going to counter so this is something that the the maxine waters of the world, saying this is how you lift people up. you know a lot of folks in your

district, they don't have bank accounts. they can't get bank accounts. this is how you get folks who are at the bottom rungs of the economic ladder into society. deirdre: well, he does have to come up with some strong p.r. because maxine waters and others have actually called for the digital currency libra to just be halted, outright halted, until more information can be gathered. so from what we understand, mark zuckerberg is going to take a little bit of a scare tactic in saying listen, if you don't support me on libra, china is going to beat us all, including in this kind of digital currency evolution that more or less -- charles: you mentioned china, you scare the conservatives. you mention the economic income, he's got something for everyone. deirdre: i think he has two key purposes from just the communications standpoint today. one is okay, libra is not scary but if you don't support me, china will beat us and you don't want that. the second key category is i

will be very responsible with the 2020 presidential election and i'm not going to stand for foreign interference. we already shut down three russian sites and one iranian site, and we are the best people for the job. now, of course, he's going to take questions of well, then how come you weren't the best people for the job in 2016. charles: or also, why are you going to allow fake ads. deirdre: exactly. they did release this week, not surprisingly, ahead of today, a whole bunch of transparency measures and i mean, very specific. we are going to show you -- charles: bottom line, they are allowing -- many people are upset that, you know, listen, he's the champion of the first amendment now. that's great. great stuff. but still, he's going to get some heat, to your point. deirdre: oh, yeah. >> my two cents is libra will never fly. there's one reason, one reason only. called the federal reserve system. how can a cryptocurrency that stands to threaten the hegemony of the federal reserve system in the united states that owns the american currency, how will that ever be allowed to happen? charles: we have cryptocurrency out there now. >> bitcoin has been allowed to

survive because it's not a threat. it's a speculative instrument people trade. it's not used as payment. it's not used as a means of exchange anymore. deirdre: a hobby only. >> it's speculative which, by the way, very limited utility and only $21 billion worth can be mined. this is unlimited. it's like fiat money. as long as they get more deposits, more membe charles: so many people say facebook is a country of its own, with that many people. with a currency of its own with that many people. certainly, it would be up for abuse but that is a great point. i want to bring you in on this. when was the last time we have ever seen president trump, maxine waters and jay powell on the same page? jackie: it's interesting. i will even throw elizabeth warren in there when it comes to, you know, to tech to a certain extent as well. the president definitely has said that it's gotten a little out of control. some of these companies do need to be reined in a little bit. facebook is certainly one of them. it's not even just about what

they're doing with libra. it's about everything else, the privacy. you mentioned transparency. so i have completely gotten off of facebook because -- deirdre: and insta? jackie: i still have that instagram account. one foot is in, one foot is out. i just feel like no matter what they do, they make it difficult for users to understand the changes they're making. they are saying we are transparent but still trying to trick you. deirdre: he has a tough day ahead, mark zuckerberg. i agree with you on libra, in that it's sort of between two chairs. it's sort of like it threatens the existing financial structure but it's not free enough for the people who truly want a bitcoin-like currency. charles: there was a paper at the fed a week ago, though, that said eventually there will be a major cryptocurrency. deirdre: it's coming. this is chapter one in a book of ten chapters. but the integrity, this data integrity, i mean, listen, going up to 2016 election, half of the

u.s. voting population saw an ad that was either created by or manipulated by russian sources. so he has a terrible track record. cambridge analytica, he had to go before a similar kind of day, ten hours of questioning over two days, that was april 2018, and answer all these questions, why he didn't do a better job and not understand that cambridge analytica was basically taking data that they shouldn't have been taking. so yeah, he's going to have a rough day. charles: hey, folks, we will keep zuck on the screen all day long because it is going to be explosive and impacts every one of us. meantime, take a look at the dow. we are up 50 points, up as much as 60 at the start of trading. also, let's check on apple. morgan stanley have raised their price target now to $289. wall street falling all over itself to see who can have the higher share price target there. winnebago profits were higher though revenues were down. the stock is making a really nice move. this stock has been on fire the last few months.

better earnings at blackstone. the amount of money they control, we don't have enough digits on the screen to show you the stock making a 3% move at the open. and microsoft report after the bell. maybe that's where stuart is today. maybe he's somewhere huddled up and just like microsoft, beat, beat, beat, beat. whatever that magic he does every time they come out. facebook, let's take a look at the stock. it is the focus today. here's the thing. facebook has held up pretty well despite all of the slings and arrows, the investigations, the fines, and it's up again this morning. chief mark zuckerberg is going to testify again on libra cryptocurrency today. by the way, let's see where netflix is. because it got hammered pretty good yesterday on that news that verizon is going to give away a year free of disney plus streaming to its customers. nice little rebound there. then there's the check of gold which lost some of its luster, pun intended. it is up eight bucks but under the $1500 mark. oil, which has been in the

trading range all year long, $53 has been the support level, might need news to get through $55. the ten-year has made a remarkable rebound. 1.74%. no one's talking about inversion anymore. pretty soon, we will be hearing the yield is too high, the yield is too high, sell everything. but not for now. shah, what do you think? one last thought before you go? >> to me, it's trade bonds and buy dividend-yielding stocks. charles: right. >> instead of trading stocks, there's more action in the bond market than there is in the stock market. i know forward earnings are coming out today. i'm a buyer of ford. i own it. i want to buy more if earnings are off. 6.5% dividend yield. charles: and you have upside potential. >> and upside potential. charles: great seeing you. love the shirt. the tie and the combination. all right, folks. democratic front-runner elizabeth warren calling for another $800 billion for primary and secondary education. her plan includes closing

charter schools. joining us, cabot phillips with campus reform. you say more money is not what's needed so what is needed? >> i think first off, spending the money more efficiently, addressing the root causes of so many of these issues. when we look at the cost of education in america, often we say it's too expensive. in this case, elizabeth warren, rather than addressing why it's so expensive in the first place, the reason for that problem, we are saying well, we are going to accept it's very expensive and throw more money at it, raise more taxes on people, and the idea that the government doesn't already take in enough money is just not true. last year, after republicans cut taxes, there was more tax revenue than ever before in our nation's history so the idea that it's just slapping an extra wealth tax on people to take in a couple extra billion dollars to fix that, it doesn't address the root of the problem. costs are going to keep going up and you will have to keep raising taxes on people. it's a 2.7 trillion tax increase over the next decade in order to pay for all these plans. $2.7 trillion, larger than the gdp of every nation on earth

except for seven. this is a massive amount of money. it doesn't actually address the root problems of the issue. charles: to that point, cabot, if you are looking at just how much we spend even per student, and the outcomes we have with the oecd measures, we are in the 20s and 30s, it's absolutely remarkable, what about accountability? what about giving our students even tougher curriculum, setting them up so they succeed later in life instead of having to do quotas and shutting people out who have achieved things? why doesn't that catch on with some people? >> i think any time you have a government bureaucracy, there is going to be complacenccomplacen. it's a breeding ground for complacency when you don't have those things. our education system is not exactly welcoming to innovation. i think we need to be doing more to innovate. when you see candidates like elizabeth warren and bernie sanders demonizing charter schools, very often serve as competition for our public universities and public

education at the lower level, i think that competition is a good thing. many times it's demonized and also this entire wealth tax conversation we are talking about, i really do think this is showing a fundamental shift in the way that we as americans are viewing wealth. where in generations past it was kind of this idea that yeah, we should teach young people an educational level, young people to emulate success, to want to be successful and hopefully to view wealth as a goal in the end and now it's been demonized to the point of if you get wealthy, we deserve to take that from you. they are selling these ideas and saying rich people are just greedy, they want to keep all their money, as if there's nothing greedy about saying we should be able to take that from you to do what we want with it. charles: although i got to tell you, you go into a gucci store or versace store, you listen to the music, if you weren't the height of materialism and consumerism, young people to me sound like they want to be wealthy and want to be rich and want their own private jets. maybe the politicians are falling just a little bit short, once you get out of grade school

and they can't indoctrinate you anymore. always great talking to you. thanks. quick check of the dow 30, folks. we have been open for 18 minutes. it's a split screen. boeing still leading the way, dow, apple with the new higher price target. travelers rebounding from yesterday. coke got an upgrade this morning. sort of a mixed picture there. nike, we know the ceo change. caterpillar, we saw the bad news there. meanwhile, mark zuckerberg's testimony on the hill just minutes away. we will have his opening statements live, so keep it right here. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination.

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charles: fox business alert. this is a live look at the hearing room on capitol hill, where facebook chief mark zuckerberg will testify about his libra cryptocurrency. that hearing starts at the top of the next hour. all right. so you know, we talked earlier about this and the fireworks that are expected. deirdre: two key topics, right. libra digital currency, the resistance it's going to have, especially from the chairwoman, maxine waters. charles: why doesn't she like it? deirdre: she wants an overall halt and it's not just libra, so i don't think she has anything in particular against mark zuckerberg or facebook. she just wants all crypto

halted, all development halted until more can be learned. so i think mark zuckerberg's counter is going to be listen, you don't want all the innovation and all of this to come from china, so you should at least let an american company take a good stab at it, so that's sort of, i would say, topic number one. then topic number two is something jackie mentioned earlier, which is about data integrity, you know, how much do we trust facebook as we go into another presidential election, and i think zuckerberg is going to field an awful lot of questions about that. it's an often reviewed statistic in the run-up to the last one, half the american voters saw a manipulated ad, they had the cambridge analytica scandal. so mark zuckerberg already did the d.c. experience, let's call it that, ten straight hours over two days, i shouldn't say straight, it was sort of five and five, in april 2018, already answering for a lot of the data integrity, but none of these issues have gone away, right. so they published a bunch of stuff about transparency, showing you will know which

candidate paid for which ad, you will know where the money comes from. they say they have improved that ahead of this election cycle. so he's going to field a lot of questions on those two topics. jackie: the more he does this, it seems like he's getting really good at it, right. it's just become sort of part of his job and role as ceo. charles: the first time everyone thought that was really a robot, his indifference or even smugness is all gone at this point. he's certainly trying to woo these folks. deirdre: his role is changing. the company grew up and i think for a long time, they put sheryl sandberg out there, the c.o.o. as the quote unquote, adult in the room to handle all these sort of policy issues but at the end of the day, he's the founder, he's the ceo. he has to do it. charles: thank you very much. let's check on the big board here. we are higher, we have kind of, you know, popped out of the gate here, the dow is up 45 points. again, considering the news an hour before the open, it felt like we were going to be down a whole lot, in part to texas instruments. they reported their numbers last night. they missed big-time. they cut their earnings, cut

their estimates. that stock indeed still down almost 7%. eli lily shares are falling -- sales fell short, rather. the diabetes drug actually missed the mark. it's off almost 5%. take a look at chipotle because it is down this morning. i think that's more a sell the news kind of thing. i know costs are higher but they just had the perfect quarter, with the stock already up 90% going into this number. meanwhile, president trump will also be making a statement this morning, this on turkey, syria, the conflict there at 11:00. we will bring you that as soon as he starts to speak. then there's shaquille o'neal chiming in on the nba's china controversy as the league's new season gets started. it's under way. we have florida senator rick scott is hot on this topic and we will get his reaction. but first, mark zuckerberg about to be sworn in on capitol hill. again, that's at the top of the hour. we will have his opening statements live and bring you all the fireworks. more "varney & company" after this.

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charles: any minute mark zuckerberg will raise his hand and testify before the house committee. other topics will come up. they will include antitrust, political bias. we will take you there, when mark zuckerberg opens with a statement. right now i want to go to hillary vaughn on capitol hill with a preview. hillary. reporter: charles, one of the topics in the background is all of this is antitrust concerns. zuckerberg has to make the case facebook should get bigger, that 47 attorneys generals launching antitrust investigations into the company but also can facebook be trusted with your money, your financial information, your data? that is something zuckerberg

will address. that they protect your privacy, but would not exploit your financial information for their own profit and personal gain. there are lawmakers thinking about the questions you ask. one of those is congresswoman alexandria ocasio-cortez who opened her twitter dms last night to her followers, asking them what they want to ask zuckerberg today. she tweeted this, if you were say a member of congress sitting on the financial services committee, given five minutes to question mark zuckerberg what would you ask? she answered a lot of people wanted to dm her directly. it is still open this morning. interesting to see what questions she has for zuckerberg today. charles? >> thank you very much. we'll listen in, when the chair of the committee asks him questions, maxine waters. that should be very interesting to say the least. after that we'll monitor the hearing for any fireworks.

you don't have to watch the whole thing but you will get the best parts. i want to bring in jim anderson. your thought with we'll see today? >> it is really interesting in mark zuckerberg's prepared statements he simplified this down, a cheap effective way to pay money for other people. he is also personalizing, talking about people who can't get to bank accounts like women in developing countries. that is cryptocurrency, techie language used before. charles: more than a billion people don't have access to a bank account could have through mobile phones if the right system exists. that is 14 until in the united states. that is maxine waters. >> that is exactly right. the china angle. how quickly we bring it up, if we don't do it, china will. that is a pretty powerful argument. we'll see how quickly that comes up. charles: hillary vaughn brought up a couple things. 47 ags probing antitrust.

can facebook be trusted. that is the ultimate question here, do you trust them? you have all of our secrets. you haven't kept them secret. you know, some people think you manipulated them or are concerned about that. that is another step, in addition to our secrets we'll give you our money too? >> that is right the ultimate question. can they be trusted. antitrust is facebook's biggest threat. i wouldn't say that is a threat to libra. imagine they break facebook up. that doesn't mean libra is done. you could argue mark zuckerberg has more passion about the libra mission than he does for facebook. charles: how does that work? maybe at some point they would be two separate companies? >> i don't know how the antitrust will play out. facebook could be broken up a lot of ways. google you could split youtube off. instagram. charles: have the access to the facebook database? >> the devil is in the details.

they have created a separate steering committee, holding company that facebook does not control. so they have the marketing conduit though. if you can use it easily as you use of. charles: we've seen big names bow out. credibility, well-respected companies that might have mitigated anxiety whether or not you could be trusted have bailed out. what does that say for this project? >> i always thought when mastercard, and visa were in to libra, keep your friend and enemies closer this is very threatening to mastercard, visa and the payments industry. big tech is coming for payments, whether apple, facebook, another company. they're coming. they sort of wanted to be in the tent, understand what is going on. now you see a very adversarial position. charles: how long could it take to evolve, understanding all the opposition? >> i think we're talking five

years. mark zuckerberg can play the long game. he is 35 years old. he can afford to spend next five or 10 years of his life making it reality. charles: hold on, i want to bring in former arkansas governor mike huckabee. what are your thoughts? a lot of people are suspicious of mark zuckerberg and facebook? >> i think they should be and the reason because facebook has proven they're manipulating data to steer people toward a particular point of view. zuckerberg realizes he is in real trouble. the reason he is showing up at congress, the reason he is hosting dinners for various conservatives to try to make friend is because both left and right are coming out to get him for different reasons. but the reasons are legitimate. i give them that information. i give them to them at all. what i worry about manipulate content, steer people toward a particular view, a they isolate

engoers don't like, that is frightening. they're monopolies. they're not just social media companies. they're monopolies like utility. they will end up getting regulated and subject of antitrust suits and quite frankly they should be. charles: when it comes to cryptocurrency in general, governor, the ability to liberate underserved communities, not just in america but around the world. vis-a-vis the federal reserve, fiat currency in charge, the establishment probably hating this idea, who wins? >> the new wave wins. we're, as huxley would say a brave new world, we better embrace it. things will change. with it will come crypto currency. zuckerberg want as piece of it. i don't blame him. federal reserve and other critics and credit card companies can learn to play ball or watch from the sidelines. charles: the actions that we're

seeing, 47 ags, now with antitrust probe into facebook. there is a meeting next week a bunch of ags to look at google. four or five big silicon valley names know everything about us. they know us better than we know ourselves. would it be wise to go down the path of antitrust or is this leading to major financial shakedowns? >> i think it is about antitrust. i don't think it is just about the finances. i think some smart plaintiff lawyers are salivating at the opportunity to file class-action suits. we'll see that. it will drag out for years, ultimate thely lawyers will win big. charles: i hear the gavel. congresswoman maxine waters, gaveling in. photographers are moving. mark zuckerberg is looking around. obviously this is a huge, huge moment, maxine waters statement and swearing in of mark zuckerberg.

while we wait for this, jim, let me quickly add the governor said no matter what crypto will be here? >> i think he is right. charles: fed can't stop it. federal government can't stop it. lawmakers can't stop it. it is a juggernaut will be in our lifetime. >> we need to rebrand it. cryptocurrency says, cheap payments done by our mobile phones. why are we carrying a wallet with embossed plastic credit cards. if you designed a payment processing system right now ground you wouldn't use the plastic. you would use your mobile phone. charles: certainly wouldn't use paper. >> when your battery dead. we still have to solve the battery life problem for mobile phones. no reason why you should use those others. charles: if it is inevitable, how much regulation, should evolve around it if it is inevitable and control our lives? >> considerable. you're talking about the financial infrastructure right?

as much regulation as you get around banks and credit cards companies you should have around cryptocurrency companies. charles: are you concerned about the ability to compete? how many companies compete with facebook, libra, cryptocurrency? >> maybe three. a game for big tech. big tech will be a big winner here. that is where we come back to the antitrust. do you let three companies win this game? facebook, apple, one other or come in and split the payment system off. amazon is incredibly well recessed company could compete in this game. are we going to let them? charles: are we back to square one, the idea the companies are well-positioned so large, maybe you break them up. realistically, how many pieces, you will be dealing with a handful of players with extraordinary amount of power and ability to control our lives and influence our lives? >> the analogy comes back to me, the oil companies back in the

1920s. standard oil controlled so much of our society. charles: let's take a listen to maxine waters. >> an examination of facebook and its impact on the financial services and housing sectors. i now recognize myself for five minutes to give an opening statement. today we are here to examine the impact of facebook on the financial services and housing sectors. our sole witness is facebook's chairman and ceo mark zuckerberg. charles: maxine waters, she is giving her statement now. the ranking member will give a statement. then it will go to zuckerberg. of course we'll be following this minute by minute. this is amazing news. this is history really in some ways as jim pointed out, it is inevitable the governor pointed it out as well, an inevitable part of our lives. many people sworn off facebook only to get back on it the next day. many people have sworn off social media only to get back on it. hard to do business without

advertising on these platforms. hard to get a message out to the world without using the platforms. there in lies the problem, jim? it is sort, it is almost feels like a faustian out come to a certain degree. maybe government, if they wanted to change things should have swooped in a little sooner. >> maybe so. they are such an integral part of our live. i keep referring to the mobile phone. mine is in my pocket. charles: not at work. >> you may have to get upgraded. lives around the mobile device. you open it up. we talked about addiction before. is it addicted or habit forming? it is integral part of our lives. that will not change. what do we do about it and government intervenes. charles: maxine waters, early statements out of the gate, facebook, employees mostly male, mostly white. this is not a hearing about the

libra cryptocurrency. they are going to cover a whole lot of issues, particularly in this day and age where big business is all of sudden saying that they're woke. we saw that again from the claim birof commerce following the business roundtable's lead, expanding what their mission is for business to include stakeholders, include diversity. again it will be tough, they will have to do a lot more than just talk about this. it is smart on the part of businesses obviously to head this off at the pass, they can see it's a wave, a tidal wave, many don't want to fight it anymore. esg scores will be how you evaluate stocks at some point. you want to know how the companies stand socially. maxine water making that one of the first statements out of her mouth today. we'll see what zuckerberg has to say. jim i bring you back as we continue to monitor this. when he says a billion people around the world don't have bank accounts, this is a way to do it i can remember back 20 years ago

when micro lending was the thing. we saw it spawn nobel prize winners. we saw women in countries, like pakistan, that had bank accounts and businesses for the very first time. are we talking about something changing the course of mankind to that degree? >> i believe that is what mark zuckerberg believes. he has a mission and he has resources and talent to make that happen for the billion people around the world who currently can't get access. charles: governor, i'm sorry, i know you're still there. i want to bring you in. maxine waters started hearing questioning facebook's employment, mostly men and white men. >> here we go, it is about go woke be broke. people doing business with a company they're less concerned about diversity and political correctness. if you're the customer you want a good product at a fair price. if you're a stockholder you want a profit. the best thing we can do in the

business sense to help people who are customers get good things at a very fair price that empowers them as a consumer. if you're the ininvestor you want your company to be responsible. i care that companies are fair and hire the best people for the best jobs but ultimately this is free enterprise. this idea of quotas, forcing diversity which is liberal code word for we have to have certain people with different points of view, unless you're conservative, then you're shut out completely from silicon valley companies, this is nonsense. it is not what makes us strong. i would say this, more importantly giving people a mobile phone and letting them have cryptocurrency, is giving them a good job with a pathway to making money and becoming prosperous. charles: governor, just moments ago as you were speaking maxine waters made several comments. talked about russian ads and

election meddling. that algorithms are biased an targeted ads. she said your pledge, this is to zuckerberg right in his face, your pledge to promote freedom of speech does not ring true. your thoughts. >> i think she is right. i thought i would never agree with maxine waters, but here we are. this is truly historic moment. there isn't free speech on facebook. neither free speech on twitter, google manipulates information as does youtube, they shut down people like dennis prager but give full voice, full throat to people on the far left saying crazy stuff. i think she is dead on here. charles: do you think that is, if you were to speak, for instance, jack dorsey, i had this conversation in person with jack dorsey. i had lunch and dinner with him. more recently we heard from some other silicon valley folks including zuckerberg, it is a situation. we're located in a area where

everyone is liberal. it is hard for to us find anyone to work for us who thinks outside that liberal echo chamber. you buying that. >> not true. not true. there are people who are conservative just as smart as some people who live out there on the left coast. they just look for them. have they thought about branch offices, putting facilities in places? it is amazing how other companies spread their corporate facilities all over the world and country. i'm sure these companies could do the same thing if they were interested in it. they have not shown a interest truly showing real interest in true diversity of point of view. charles: point out to the audience, mack even waters opening statement is concluded. patrick mchenry of north carolina, he is now going to give his statement. we'll get back and mark zuckerberg will be allowed to speak. how much pressure on facebook with the 2020 election, governor? how confident are you they will

police all the attempts -- by the way i think these attempts we miss the point sometimes, these attempts actually point out flaws or schisms in our country we should be introspective about anyway instead of saying you hey, you know what? someone posted these ads. the russians, chinese, anyone else, they know what our fatal flaws are as a nation and they try to exploit them. >> there is no doubt, not just the russians but the chinese and governments all over the world are trying to exploit through social media. they shut down voices they don't agree with. elevation of voices they do agree with. it was point the out three or four years ago in the elections that over 50% of the news that people under the age of 40 got came from facebook. facebook was the primary news source. now think about that for a moment. facebook is not a journalism

organization. it is a social organization supposedly. but when people get most of their news, their information, the very data upon which they make voting decisions and they get it from facebook, then facebook does now become more than just a nice little place where people share recipes for good cornbread. that is why we need to be very concerned about the bias of facebook. charles: you say 40%, governor, was that the number? >> no. over 50% of the information for people under the age of 40. charles: the other 50% just heard about it. i always love what people heard. hey, i heard. i just heard. okay, you heard. but -- >> like democrats in congress. they heard something. they didn't see it, didn't hear it first-hand, heard about it from someone who heard about it from someone, now they're talking about it behind closed doors. charles: all began with

anonymous source. >> always. charles: so, but what is the remedy again? again would be it be then to make them utilities? this is what you are. therefore you have a certain responsibility you don't want but now you have it? >> i do think it is about allowing them or making them perhaps to be utilities where they don't get to control the content. they provide a common carrier function, like a telephone company. the telephone company provides me an opportunity to talk to people. it doesn't tell me what i can and can't say. it doesn't interrupt my conversations or censor them. that is where facebook needs to go if they want to remain legitimate. they provide a forum. people choose who they want to talk to. they choose who they want to hear from but facebook doesn't interrupt, you can't say that you can't talk to that person. we forbid you to connect to this individual. they will have to be a common carrier and not present themselves to be a jury and a judge. that is what they're doing now with content. charles: real quick.

jim is still here he is with social flow, this is his area. do you think the governor is on to something there? doesn't seem like they will quote do the right thing with respect to certain pockets? there is certain hipness and certain coolness and certain righteousness of their core people. these employees are flexing muscle on silicon valley. hey, don't do business with the american defense department. don't do business with this person. employees, 90% or more have progressive leanings are calling the shot, even zuckerberg wanted to change, you question how much he could? >> i think governor huckabee is on to something when he talks about the public utility. the part that doesn't ring true, the fact that facebook is censoring viewpoints. the fact of the matter there is more content out there any of us can possibly consume. there is has to be a way to get content that is interesting to you. they did that too well, filter

bubble, what they you want to see. charles: patrick mchenry wrapped up. zuckerberg is preparing. should we go to him now folks? being. >> your statement will be part of the record. with youville have five minutes to start your testimony. when you have one minute remaining a yellow light will appear. i would ask you to respect our testimony. so we can be respectful of committee members time. mr. zuckerberg you are recognized for five minutes to present your oral testimony. >> thank you, chairwoman waters, ranking member mchenry, members of the committee. thank you for the opportunity to testify today. as we sit here there are more than a billion people around the world who don't have access to a bank account but could through mobile phones if the right system existed. that includes more than 14 million people right here in the u.s. being shut out of the financial system has real consequences for people's lives.

it is often the most disadvantaged people who pay the highest price. people pay far too high a cost, and have to wait far too long to send money home to their families abroad. the current system is failing them. the financial industry is stagnant and there is no digital, financial and architecture to support innovation that we need. i believe that this problem can be solved and libra can help. the idea behind libra that sending money should be as easy and secure as sending a message. libra will be a global payment system fully backed by reserve of cash and highly liquid assets. i believe this is something that needs to get built but i get that i'm not the ideal messenger for this right now. we faced a lot of issues over the past few years. i'm sure there are a lot of people wish it were anyone but facebook hoping to propose this. there is a reason we care about

this. that is because facebook is about putting power in people's hands. our services already give people a voice to express what matters to them and build businesses that create opportunity. giving people control of their money is important too. a simple, secure, stable way to transfer money stem powering. over the long term, this means that more people transact on our platforms. that will be good for our business. even if it doesn't i think it could help people elsewhere. before we move forward there are important risks to be addressed. questions about financial stability, fighting terrorism and more, i'm here to discuss those risks and how we plan to address them but i also hope we get a chance to talk about the risks of not innovating. while we debate these issues the rest of the world isn't waiting. china is moving quickly to launch a similar idea in the coming months. libra will be backed mostly by dollars. i believe it will extend

america's financial leadership around the world as well as our democratic values and oversight. if america doesn't innovate, our financial leadership is not guaranteed. i actually don't know if libra is going to work but i believe it is important to try new things. as long as you're doing so responsibly. that is what made america successful. that is why our tech industry led the world. we co-wrote a white paper to put the idea out in the world and start a conversation with regulators and experts and governments and today's hearing is an important part of this process. what we're discussing is too important for any single company to undertake on its own. we helped to found the libra association, coalition of 21 companies and non-profits working to give everyone access to financial tools. even though the libra association is independent, we don't control it, i want to be clear, facebook will not be a part of launching the libra payment system anywhere in the world, even outside of the u.s.,

until the u.s. regulator is approved. last time i testified before congress i talked about taking a broader view of our responsibility. that includes making sure our services are used for good and preventing harm. i want to discuss other aspects of our work today as well. people shouldn't be discriminated against on any of our services. we have policies in place to prevent hate speech and prevent harmful content. hate speech can show up in how ads are targeted w a settlement with civil rights groups we banned advertisers using age, gender, sip codes to target housing opportunities and limited targeting for these ads. part of our commitment to support civil rights and prevent discrimination. i also know we need more diverse perspectives in our company. diversity leads to better services for our community. we made diversity a priority in our hiring. we made a commitment, within five years more than 50% of our workforce will be women, people

of color and other underrepresented groups. we made some progress here. there are more people of color, women in technical and business he will roles and you know represented people in leadership at facebook now but i know we still have a long way to go. chairwoman waters, ranking member mchenry, members of the committee, this has been a challenging few years for facebook. i recognize we play an important role in society an have unique responsibilities because of that. i feel blessed to be in a position where we can make a difference in people's lives. for as long as i'm here i'm committed to using our position to push for big ideas that i believe can help empower people. thank you. i'm looking forward to answering your questions. >> thank you very much. i now recognize myself for five minutes for questions. it is no secret that facebook allowed russia our country throh divisive online ads.

senate investigationiscovered that african-americans were targeted the most by russia, specifically in places where black lives matter groups were the most active. despite all of your technological expertise russia and iran are at it again for the upcoming election. then last week you announced a new ad policy that gives politicians a license to lie so you can earn more money off this division i suppose. facebook changes the rules when it can benefit itself. last year facebook banned all cryptocurrency ads on its platform because, and i quote, they are frequently associated with misleading or deceptive promotional practices, quote, unquote. seems fair. then earlier this year facebook rolled back the cryptocurrency ad ban, bought a blockchain nnnced its own

cryptocurrency. tell us what changed? how did cryptocurrency go from being misleading and deceptive last year, then becomes a means for financial inclusion this year? it seems to me that you shifted your stance because you realized you can use your size and users data to dominate the cryptocurrency market. you changed your policy when it benefit you. you reinstated cryptocurrency ads because you had plans to start your own cryptocurrency. so this brings me back to your new policy on political speech. my question to you is, how does this new policy benefit you? because it seems that a policy that allows politicians to lie, mislead and deceive would also allow facebook to sell more ads to those politicians, thus making your company more money. but you can tell me, how does facebook benefit? >> chairwoman, thanks for those

questions. i would like to address all of the things that you mentioned in there. on elections, you're right, that in 2016 we were on our back foot in terms of preventing russia from attempting to interfere in our elections. we spent a lot of the last few years building systems that are more sophisticated than any other company has at this point. frankly a lot of governments too for defending against foreign interference. this monday we announced we proactively identified network of fake russian accounts and a few networks of iranian fang accounts, that we proactively took down. certainly as you say signals that these nation states are still attempting to interfere but i hope will also give us some confidence that our systems are now more sophisticated to more proactively identify and address these things. on your question about political ads, look, from a business perspective, the very small

percent of our business that is made up of political ads does not come anywhere close to justifying the controversy this incurs for our company. so this is really not about money. on principle i believe giving people a voice. i believe ads can be important part of voice. especially in the political process for challenger candidates and for local candidates or might not otherwise be covered by the media having ads can be a important way to injt message into the -- >> let me interrupt you for a minute. are you telling me as you said before, you plan on doing no fact-checking on political ads? >> chairwoman, our policy is that we do not fact check politicians speech and the reason for that is that we believe that in a democracy it is important that people can see for themselves what politicians are saying.

political speech is some of the most scrutinized speech already in the world. >> do you fact check on any ads at all? >> yes. >> describe what you fact check on? >> chairwoman, thank you for the opportunity to clarify. facebook itself actually does not fact check. what we do, we have feedback that people in our community don't want to see viral hoaxes or kind of -- >> let me be clear, you do no fact-checking on any ads is that correct? >> chairwoman, what we do is we work with a set of independent fact checkers who -- >> somebody fact checks on ads? you contract with someone to do that, is that right? >> chairwoman, yes. >> tell me who is it that they fact checked on? >> chairwoman, what we do is when content is getting a lot of distribution and it is flagged by members of our community, or by our technical systems it can

go into a queue to be reviewed by a set of independent fact-checkers. they can't fact-checking. the things they get to, mark something false we issue a label. >> my time has expired. someone else will continue on this line of questioning. i now call on the member mr. mchenry to be recognized for five minutes. >> as i mentioned in my opening statement i think there are bigger challenges an opportunity facing america than your ad model, or even the question of libra. let's start -- charles: folks we got it. we waited for it. i think it lived up to the hype. maxine waters and mark zuckerberg discussing a variety of things. i'll turning around now, jim is still with us. here's the thing. her statement, she started about african-americans being the most targeted during the election, focus on black lives matter,

russia, iran back at it again. the policy allows politicians in her words to lie. last year that the irony of course last year facebook banned crypto ads but now that it is in the crypto business it is okay. then i thought the q&a was pretty intense where she was asking about whether or not political ads are fact checked. he said no. freedom of speech. she says do you fact check any ads? he seemed to be caught. he was not prepared on that. apparently if there is a big ruckus about something that an independent fact checker will check it out. that is not part of facebook's policies. do we have everything right so far? >> that is exactly right. that is an interesting contrast. there were people questioning who seemingly didn't understand facebook's business model. maxine waters clearly understands facebook's business model, they brushed up since last time. they brushed up. he used the term back foot, how

they were caught off guard in 2016 feels like sy on his back foot in these hearings. >> that's right. it's a tough position to defend. you fact check some things. you don't fact connect others. political speech is most scrutinized in our society. that is. charles: everybody else is fact checking it, why should we? >> convenient position for them to take. also, if they went the other direction, now we, facebook are arbiters of what is true, we know where that goes as well. charles: stay me, jim. ryan battle, drucker school of management senior fellow. what do you make of what we've seen so far? >> talk about intense, you can watch this all today. this is where businesses and politics meet the road. you talk about the questioning. zuckerberg do one thing with him, give him credit from a few years ago, he looks a lot better, sounds a lot better. he set it up in away why

facebook. he answered some questions we're all thinking about. why is it them? why is it any other company? the funny part, what became really clear in the questioning was, if facebook didn't have this bad history or data protection i wonder how hard these questionings would happen and if they would be embraced? this is what we're at right now. i think maxine waters really did catch him a little bit off-guard because i don't think he was ready to answer those types of questions right away. charles: to your point he did start out his statement saying hey, he want to make money, simple for folks around the world particularly in america. he said why facebook? he tried to preemptively answer that. because we empower people. we already have a track record giving people a voice and empowering the general public. he also went to the other side of this, the risk of not innovating. i'm not sure how often that will come up in this hearing but he wants to say it over and over again. if you guys continue to hold us back, if you hold silicon valley

back, china will take the lead, russia will take the lead. if you think it is bad now, folks wait until we are the underdog. he talked about the libra association. he did say though that he won't do anything, even outside of this country without government regulation which is interesting because the first go round if you will, there was speculation, you know what? , it was insinuated that maybe facebook would go somewhere else and set up shop. >> you're right on all those points. the last point, let me address that first. they didn't want to get support from anybody, right? they created this association. why they needed visa, paypal, and mastercard. they started backing out which they did from the association, where does facebook go to get legitimacy and support. this is the route that he news has to go to be clear. obviously that is news to the ears to the hill. i think second piece of, from the business community, innovation. we all know it, charles, innovation is dire and is a

need. there is no question that if it is not facebook, there will be some kind of other perspective going down the road. i think it is clear in the payment industry right now, it is far, it is not stopping for anybody, but the question really becomes, if it is facebook, what are the things that is transparent? why choose them? i think that is where he has to be really clear. you're right. i don't think anyone talks about innovation. in the business community we all know in the fintech world evolving so faster, a year from now, it will not hold up for anybody. doesn't matter who you are, including facebook. charles: absolutely right, ryan. stick with us. folks you're still watching mark zuckerberg is on your screen, on the hill. defending facebook, not just the libra cryptocurrency, so many other things. we'll have a lot of headlines out of this. stay with us. we'll give it to you. happening at at the 11:00 hour,

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charles: happening right now on capitol hill, facebook ceo mark zuckerberg testifying on a company's digital currency libra. zuckerberg was grilled on facebook ads as well. want to bring back ryan battle. ryan, interesting when maxine waters pointed out already russia and iran are at it again, he alluded to the fact, we know this, because we busted them. but it points to two things. maybe they're policing it a little bit better, but they're still getting it out there. i think ultimately, how does a company like this defend something, just seems almost like it is almost impossible.

how do they defend it? >> the way that they're set up, they're not able to defend. let's be clear what mark zuckerberg said. they don't police this, right? it is up to users to flag this. only because of attention and election of 2016 they had to come up with something to discuss what they're trying to get some of it. the only real way for a business like this to be ensure there is 100% they have to go through he have single ad, every single post, they have to have, human, it costs a lot of money to do that. obviously that is an option that doesn't look like facebook wants to go down that route. obviously would hurt their margins. it would be something really, really expensive. where is the middle ground for the strategy to do it. resources and asset to get some of it. he said it himself, he would have just said, this is no longer going to be an issue. he is not saying that.

we know there is still a possibility for it. charles: ryan, stay right there. hillary vaughn is joining us from capitol hill. hillary, maxine waters drilled on the fact, if there were fact checks on any ads on this platform? reporter: charles it, was a pretty lengthy back and forth she continued trying to make zuckerberg to commit to a yes or no answer whether or not they choose not to fact check all of their ads or just their political ads. sucker -- zuckerberg said they have a independent party. he said they do not fact check political ads. he says it is not just about the money. he just doesn't want cash from politicians to posted as you don't want to sensor politicians maxine waters started with a laundry is of problems to

company. she said all these issues indicate a very strong, reason, one, why facebook should not be trusted with a digital currency that can compete with the u.s. dollar. two, why facebook would need to be broken up. zuckerberg was humble, bringing himself to the lawmakers admitting, i'm not the best messenger for this right now. he says there is probably some people on this committee that wish it was anyone but facebook to come up with a digital currency platform but he insists that u.s. financial sector is outdated. he also wants to keep up with competitors around the globe that are trying to do the same thing. he was asked what regulators is he talking about? he will get their approval before fully going ahead with launch of libra. he says all of them. everything from the fed, to every regulator that regulates certain aspects libra would touch, he promises in this committee hearing that he will not let libra go forward here in the u.s. or anywhere around the world. charles? charles: hillary, thank you

very, very much. i want to bring in ryan patel back in. hillary brought up the fact the questions began with diversity. we saw zuckerberg saying they need to be more diverse, have more diverse voices. a five-year goal, 50% women, people of color. some americans worry sometimes that euphemism, that means perhaps petitioning the government to have more foreign workers come in rather than training people of color in this country and women in this country. so you know, is he trying to be cute here? because i think the idea with maxine waters is saying is, we're silicon valley with respect to getting americans these jobs? >> yeah. i think most dni initiatives, diversity inclusion especially silicon valley is focused on the talent pool in the night. it is to create that kind of number, to make that kind of change that fast obviously would

put more onus where did you get this talent from? i think growing being able to get opportunity for people who really wouldn't have opportunities or be able to see. still qualified folks this is initiative that is dire need. it is important to see in silicon valley. this is not something that i think is just a facebook issue. it is in the tech industry as a whole. it needs to change. one is because innovation is so important. a diverse mind set, a diverse way of looking at problems especially societal issue is important. charles: i want to say those. we don't have a education system that is producing these workers. the political pressure going to be so much that facebook has to hire people that may not have the skill set to do these jobs? >> i think the, in my opinion, i think they're getting pressure anyway, not just from the hill. i think they're getting pressure from other folks on wall street and employees.

they will, there are other programs they can get training programs. that has been on the rise. they will have to be creative to your point if that is situation we're running into. charles: ryan, you helped as you lot this morning. we appreciate it. thank you. >> thanks for having me, charles. charles: president trump will make announcement about the conflict between turkey and the kurds in northern syria. that is happening 11:00 a.m. eastern. when it does happen you will see it right here. ♪. you're still out there chasing what matters.

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charles: phonings it has been a busy day. mark zuckerberg. we had serious question and answer period going on. he is in for a very long day. he is making a pitch for libra currency and trustworthiness of his company facebook. we'll check on the big board. the dow has been range-bound. we're up 65 points. we were up all morning long. it looked like we were up 100 points. boeing, a stock of the day, was down to 330 in the pry market.

the company is big winner. it anticipates getting regulatory approval for the 737 max jet to return to service. continue to say before the end of the fourth quarter. then there is chipotle sales were up 11% last year. online sales were absolutely through the roof. what happened to the stock? down 5%. it should point out 90% up through the year. caterpillar also that is down. not as much as anticipated. they really had authentic bad news. they had lower sales. they missed on the top and bottom lines. they lowered the full-year outlook. but now they expect that the costs of tariffs to be a little less. that is mitigating the downside on that stock. coming up at 11:00 a.m., president trump will be making a statement on syria. you will see it here live. we're joined on the phone by retired general jack keane. fox news senior strategic analyst. general, what should we hear from president trump? >> i think admission that the

president took to negotiate a cease-fire with president erdogan and stop military operation obviously from moving any further. that is, that is lasting now. as a result of that there is a degree of permanence to that. i think the announcement largely will be around, he will pull back on sanctions. probably put them in hold based on what has taken place. i think that is probably the centerpiece of the statement today. there is real challenges out there, charles. because, that whole swath of area, about 300 miles, while the syrian, kurds, ypg moved back an area of 100 miles. they're not prepared to move back in the areas. hundred of thousands people were there. if turks try to force that, possibly the syrians and russians now, try to force that. that is major issue for the kurds and for the united states.

the united states has stated we're opposed to that happening. the other thing is, he made mention that he is considering keeping a residual force in syria, to protect the oil fields to fall into iran or russia or syria, assad's hands, also to contain isis. that is under consideration. exactly where that would be, less than what we've done in the past. that is another major issue on the table. charles: so real quick, general, i want to go over this sort of a buffer zone turkey has wanted for some time, contain, maintain control of isis prisoners. secure oil so no bad actors get their hand on it. i think a lot of people here, obviously certainly conservatives but a lot of americans, safety of the ypg, the kurds fought side by side with americans, potential safe zone for them, is that possible? >> yeah.

but it is possible but, they are being pressured right now. to actually move all their families and move away from their homes, move away from their jobs. that is no longer on the table out there. the united states has to stand behind that. that is ethnic cleansing. that is not a safe zone this is clearing them out of the area. appears syrians and russians who were supposedly going to help the ypg or syrian kurds, are wanting to put pressure on them. united states can stand up easily. we control the airspace there. by the way, they don't have enough forces to take on syrian kurds or ypg. there are still issues in front of us to be sure. i think a major announcement is that the cease-fire, seems to be taking on a degree of permanence. that is a good thing. as a result of that the president will pull back from the stuff on sanctions. charles: general keane, thank

you very, very much. appreciate it. >> take care, charles. charles: want to bring in walid phares, i'm not sure how much you heard of general keen. the issue is the buffer zone, turkey said they wanted it all the time. the situation with keeping isis. these isis fighters that we have, under lock and key. securing oil, maybe residual force there, a safe zone for the kurds. is that possible. could we hear that in four or five minutes? >> i agree with the general. >> that is not the entire big picture. the administration will make that call later. what is happening now, the safe zone which is security zone control for turks and their allies and the russians and regime is trying to exist with that. why is that possible, kurd,

allies, sdf, have accepted to lose, withdraw to move to other areas. the problem here, first one as the general said is population. half a million kurds, that is something we need to look at. the problem is we decided to quit syria so anything we are going to do in syria now is going to be very timely, going to be very short in time, because the decision was made basically to quit syria. charles: and it feels like they're trying to, you know, put it back together somehow, you know. it's really remarkable that such a small force was the linchpin, if you could, for so many things to unravel at the same time. but how confident are you, because it feels like things have gotten somewhat better. the cease-fire to a degree is holding, and it seems like all sides are talking in a way that makes it more hopeful. >> cease-fire is holding because

our allies have accepted not to resist the advance of the turks. let's be very clear for the audience to understand. but now we have a second problem, which is isis detainees being released. those detention centers are in the hands of the kurds. the kurds are moving, are fleeing. so we need to talk to the kurds and convince them to make sure the transfer of those detainees to the turks, it's not going to be an easy thing, and also we had a very small force but what kept the peace was our flag. the fact that no regional power would dare attack even one american soldier. now we made the statement that we are going to be outside the area, which means it's going to open up to regional forces including turkey, including iran. charles: the criticism or -- that this is going to spark the revival of isis, is that somewhat hyperbolic, that this event alone will somehow reconstitute the years of success in damaging isis and

their effort at a caliphate? >> it's not really abstract. it's really on the ground. we were successful in destroying the caliphate, territorial caliphate. that's not going to come back again because there are too many forces, too many armies will stop isis from creating what was there. but what is now going to be increasing the risk are the prisoners, the detainees by isis. they are going to be fleeing. some would be captured by iraq, by syria, by turkey. some we will try to capture but there will be hundreds, maybe more, who will be loose and those will be a risk. that's the risk of our decision to change our policy in syria. there are always risks. charles: walid, it's always great hearing from you. it is interesting that you say turkey and iran both share in wanting to capture these isis fighters, even though some will make it through. thank you very much, sir. always a pleasure to talk to you. >> thank you. charles: folks, the dow jones industrial average, we are up about 60 points. there's a lot of things going on. you got mark zuckerberg on capitol hill. he's being grilled big-time and

it's not just about libra. it's about everything that silicon valley and of course, the upcoming elections. we got a market that's higher. we thought an hour and a half ago it would be much lower. so it's been a hectic day and it's just getting started. more "varney & company" coming in just a few -- oh, i'm sorry. we're not going to go to a break. it's 11:00 a.m. we will keep going. it's 11:00 a.m. here, 8:00 a.m. out in california. just a reminder, i'm charles payne sitting in for stu. any moment now we will hear from president trump. he will make an announcement on the u.s. involvement in syria and turkey. we will give it to you as soon as it happens. you will have it live as it's happening. i do want to go back now again to look at this market. we have been in a very tight range. the dow has been up all morning long. the s&p has been up all morning long. even nasdaq, which last night after texas instruments reported, i thought was going to get hammered pretty big today, that stock is down, nasdaq is higher. i want to bring in senator bill cassidy, louisiana republican. senator, what should we expect to hear from president trump? >> he tweeted today that the

situation is stabilized. of course, we want to know details of that. and your report says the russians and turks have agreed with the kurds for an ordered pullout and hopefully avoidance of violence and persecution of the minorities there. we want to see it happen. let's see what the president has to say. charles: i'm not sure there's been any issue since president trump has been in office that has angered the republican party more than this decision in syria. since then, critics like lindsey graham have pulled back a little saying hey, let's see what happens, and perhaps there could be a better outcome to all of this than anyone had anticipated when the news initially hit. where did you stand on this and where do you stand now? >> i'm very concerned that we are perceived as abandoning the kurds. it seems as if we had, with relatively few troops, very few troops, had stabilized the

situation. but lindsey's right. if the president's been able to broker a deal where the turks are allowing an ordered withdrawal of the kurds and there is a transfer of prisoners from kurds to turks, isis prisoners, then that would be best of all. there's also, though, the issue of the minority populations which have been persecuted, the syrians, yazidi and others, so you also want to make sure we haven't opened up a humanitarian crisis. if the president has been able to pull this off, more power to the president. charles: what about cynics who say of course we sent troops to saudi arabia, some of these troops that were leaving syria were going to be relocated in iraq, that we are in fact still in the middle east, and now perhaps we will have troops who are going to be there to secure the oil. is this just a fact of life? is this something we can't avoid at this point? >> it may be that the president is really using this as an arm to stabilize certain situations.

clearly the iranians are trying to pick a fight with the saudis. they are less likely to pick a fight with us. if our troops are there to stabilize and ultimately withdrawal, that's certainly consistent with where the president wanted us to be. i will also point out that we are protecting oil not for the united states, but for the rest of the world. we are effectively self-sufficient in north america for oil and gas, natural gas resources. i think one of the intentions here, we are protecting sea lanes for oil that's being shipped to our economic competitors and i think again, that's why the president has been encouraging other countries to join a coalition to help protect those sea lanes. don't put it entirely upon the u.s. charles: i think that's something he's been about even as a candidate, and he's sticking to that. i think a lot of people appreciate that. senator, i want to kind of change course here a little bit because lot of big things happening on capitol hill, including facebook chief mark zuckerberg has already begun to testify. he's trying to sell this new digital currency called libra.

are you buying this zuckerberg case so far? >> first, mark zuckerberg has zero credibility. he's got a great product, facebook, everybody acknowledges that, but he has zero credibility and i say that not as a criticism but as an observation. so any cryptocurrency which obviously has been used as people know, has been used for money laundering, for capital flight and other things, is beyond the reach of traditional scrutiny, would be very scrutinized. it's one more area in which facebook is going into which may be to the detriment of society at large. zuckerberg knows he has this, i'm not doing anything other than pointing out that which is obvious to everyone. charles: so ironic, we had governor huckabee on earlier, and maxine waters said essentially echoed those same sentiments that he was untrustworthy and i think we had a fox news alert, fox business alert, first time that mike huckabee and maxine waters were on the same page. i think there are some interesting bedfellows with

respect to this anxiety associated with facebook, with two billion users also having their own currency and ability to move money not just in this country but around the world. you have jay powell from the federal reserve who is anxious, president trump has expressed reservations, maxine waters and yourself, but everyone keeps saying ultimately something like this is going to happen, that it is inevitable. >> well, one thing i have been concerned about is trade-based money laundering, the means by which trans-national criminal organizations move billions of dollars around the globe. one estimate is that $1.2 trillion is moving around the globe beyond regulators in whatever country it's occurring, $267 billion here in the u.s. cryptocurrency has a role in that if you are selling drugs between china and the united states, you go on the dark web, you pay with cryptocurrency, that is beyond the reach of law enforcement to track that transaction. but that transaction is very much part of drugs coming to our

united states, and people dying from overdoses. so there's a very practical law enforcement aspect of this and we need to be comforted by that, more than mark zuckerberg's reassurances. charles: of course, a statement laced with some political commentary, some insinuations, if you will, he talked about the underclass being underserved in or banking system, 14 million americans without akccess to a bank account, suggesting these are big issues, these are going to be the kind of issues that resonate in 2020. how does congress and more particularly, how does the republican party say to this country we are going to take care of that? >> a couple things. i think it's a little -- i'm a little skeptical that libra cryptocurrency formed by facebook is going to be the answer to that problem. on the other hand, there are market-based solutions. so now if my wife wishes to tip somebody, she may be, i think it's vinmo, she does a vinmo and

sends them some money. so the market is responding to that in kenya, there's a way in which people are able to transact without banks being involved. again, using their cell phones. i think we will have solutions to that that do emerge and that's a wonderful thing about technology, it finds solutions to things which seem intractable. charles: i want to shift gears with you again, talk about drug prices. you just announced that you saved taxpayers $3.1 billion at the pharmacy. how are you getting this message out and how did you save people that much money? >> part of the problem is when congress accomplishes something, nobody reports it. thank you for mentioning that. we talk about impeachment, about dysfunction, but not about saving taxpayers $3.1 billion. closing a loophole some pharmaceutical manufacturers use to avoid paying refunds to medicare programs. definitely at the state and federal government financing levels. we just have to talk about the need to lower drug costs. it is one thing that unites

republicans and democrats. the president is all about it. how can we get that message out. more importantly, get the political momentum that we can -- the political momentum that we can get this legislation passed even in an atmosphere dominated by discussions about impeachment. charles: senator cassidy, congratulations and thank you so much. you covered a lot. we appreciate your time this morning. >> thank you, charles. charles: other stories we are watching for you this hour. shaq weighing in on the hong kong/nba controversy, defending free speech. senator rick scott ready to sound off on that later in the hour. also, president trump heads to pennsylvania today. he's there for a shale conference. joe biden, by the way, anti-fracking, already in that state as well. will trump be able to beat biden on his home turf? we will ask the rnc. we are still awaiting president trump's announcement on syria. when that happens, we will take you to it live. the third hour of "varney & company," just getting started. ♪ does your broker offer more than just free trades?

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charles: so we are waiting president trump's announcement on our involvement in syria. casey smedley is here, rnc deputy communications director. what do you expect to hear from the president? >> i think what we are going to hear from the president just writ large is that he's saying look, he said at this rally recently we have to make sure our military troops, if they are going into another country, it's there for a clear mission, not just there to do the policing of that country, so that's where you see the decision that he talked about previously, although now he's talking about we also want to make sure we keep the region under control. so i can expect i would imagine to hear more from him on that front based on his most recent comments. charles: have you been surprised at the rnc, at the blowback president trump has gotten from his own party when it comes to this issue? >> well, we are a big tent party. we are always talking about where we have the dialogue, we have conversations and president

trump has been very open to those conversations. but he also keeps a very close pulse on where the voters are, and where constituencies are. arguably sometimes closer polls than maybe democrats in congress so he's looking at that and saying this was something that i talked about that was part of the reason why i got to the white house, because people wanted to see our troops either come home or to make sure that if they are going to be put in harm's way, there's a very clear mission and so that's something -- charles: by the way, that mission should benefit america directly benefit the united states. the polls are one thing and it is interesting that you have so many -- you have seen so many republicans and conservatives join with democrats on this issue. that part may be disingenuous. it's going to be really, really compelling to hear what president trump has to say now. some are hoping maybe he can come up with even more elegant solution to what has been a problem that's been around long before he was even in office. >> i think that's a great point. this is a problem that's been

around for a long time. there's no easy answer to it. and he wants to make sure if we are going to be there, there is a clear and direct purpose. that is a great point that you mentioned of what is the purpose for america. we've got to have real clarity on that. charles: i want to mention today both president trump, joe biden are both in pennsylvania. by the way, biden, he held an early morning rally in scranton. president trump is going to speak later on this afternoon. this is going to be at a shale conference in pittsburgh. but we know pennsylvania, this is biden's home turf. he's a scranton guy. he brags about it all the time. this is one of the reasons many want him to be the nominee for the democrats, they think he can beat president trump in these swing states like pennsylvania. how can president trump push back? >> well, it might be biden's home turf but it is trump country. and for a real reason. in 2016, he got elected in pennsylvania because of promises he made. in 2020 he will get re-elected in pennsylvania because of promises he's kept. when you look at nearly 150,000

new jobs are coming to that state, 2200 of them manufacturing. in the obama/biden era, they lost 51,000 manufacturing jobs. obama and biden wrote off pennsylvania, not just electorally but in terms of it being a factor in our economy. president trump gave them a chance, gave pennsylvanians an opportunity to show what they could do and boy, have they performed big for our economy. i would also point out that with joe biden making these comments as far to the left as saying i want to get rid of fossil fuels, that's devastating to pennsylvania. they are now getting back on their feet and here his plan would bring them backwards yet again. charles: i want to go more on biden but i don't want to point there was a remarkable economic analysis of the election by moody's using three different economic models. the pocketbook model caught my attention because president trump in their words would steamroll the competition but they pointed out one thing that i think is intriguing. i think about it with

manufacturing. you create 500,000 manufacturing jobs when the world says you couldn't create one, but if you start to pull back just a little bit into the election, same thing with the economy, it can mitigate all the great work that the president has done already so are you concerned he could actually be a victim of his own success? >> well, he's got to definitely make the case not only of promises made, promises kept but how much more we can do together. that's why you hear him say it's not make america great again, it's keep america great. but when you look at what the democrats have offered, on every issue, it's not only how left can we go but how much more of your taxpayer dollars can we use to create more government programs, have more control of your life. it's the exact opposite of the free market solutions that president trump has instilled that have empowered this great american comeback. so you're right, it's a balancing act between saying we have done so much good together, let's keep this going, because you want to make sure people don't take for granted all this great success that we're experiencing.

there's a reason that happened. that's because president trump has empowered the american people to take hold of their lives, to do all these great things. charles: you know, you talk about biden. this morning there was a cnn poll and he's actually even further ahead of sanders and warren by double digits. maybe the strategy of laying low and not doing much, you know, just kind of riding the wave of, you know, the media kind of made him the number one candidate, name recognition made him number one, although i'm not a big fan of polls and i believe warren probably is doing better, she has been hit since the election -- i mean, since the last debate, rather. but what do you make of this? biden's staying power? >> well, i don't know if it's staying power or just he's the most familiar name that people know right now. we take for granted that people aren't paying attention to this closely as you and i are in the day to day, but i also think it shows the democrats are nervous. the democrat voters aren't sure how they feel about the far left policies of warren and sanders and others and biden, of course, has joined them, but as you saw

this week, "new york times" report saying that they are trying to see if they can get another candidate, maybe even hillary clinton, to come in. they don't feel confident in the field of candidates that they have right now. i think that's going from the very top of the party out through their grassroots supporters who are very nervous that when you put a far left candidate against the results of donald trump, it looks like a resounding re-election for donald trump right now. charles: to your point, the list of rumored people that may parachute into the contest almost getting as large as the group already vying for the nomination. just right about the ceo of dick's sporting goods may want to jump in. thank you very much. appreciate it. >> thank you. charles: hey, a few dow components for you now. walgreens, jpmorgan downgrading it to neutral from overweight, off almost 2%. check boeing. the company is saying that hey, they still expect to get approval for the max 737 jet to return to service before the end of this year. wall street loves that news. that stock is rocketing higher. then there's caterpillar.

they couldn't make the same sort of promise. nevertheless, it's off the lows of the session. think about this. they had a terrible quarter, they missed on top and bottom lines and they lowered their full year outlook, although there's one thing they did say that was intriguing. they expect the cost of tariffs to be less than initially expected. let's not forget about bitcoin. you got cryptocurrency all over d.c. today. getting a big hit, down 630. bitcoin under some serious pressure at a five-month low. we are still awaiting president trump's announcement on syria. we are going to take you there, you can see it's all ready for you, when we come back. ♪

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charles: well, we were told 11:00 a.m. from president trump. we're almost 25 minutes past ber