investors will be watching. earnings are strong, optimism is there for trade. the market seems like it's going to continue to move. maria: we'll see. it's down 46, well off the lows. have a great day. jackie, steve, liz, thank you so much. see you soon. "varney & company" begins right now. stu, take it away. stuart: good morning, maria. good morning, everyone. oh, watch the tech titans go. the stock price of two giant american corporations going up sharply this morning, adding tens of billions of dollars to their value. i will start with apple. it is a juggernaut. strong iphone 11 sales, more new phones coming next year, watches, wearables, selling very well. the stock premarket is going up. by the way, there are predictions this morning that it goes way up from here, maybe hitting $300 a share early next year. we'll see. right now it's up four bucks. facebook, the teflon stock. i will call it that. shrugging off the recent bad p.r. with a premarket gain of,

what, what have we got here, $8. revenue up, ad sales up, profits up, and there are now 2.45 billion active monthly users. it was a spectacular report. stock's up. these two stocks are helping the market but a statement from china has put a damper on things. beijing says it's doubtful that a long-term trade deal can be reached. china concerned about the impulsive nature of president trump. where did they get that from? the dow industrials down about 50 at the opening bell. s&p down six, a fractional loss for the nasdaq. then there's politics. namely, the vote in the house this morning, starting the impeachment process. this has consumed the congress. it has not consumed the market. it seems to be ignoring d.c. entirely. we will follow it and pay special attention to votes of moderate democrats from trum trump-leaning districts. will they approve removing the president from office because of a phone call to ukraine?

can't wait to see. stay right there. "varney & company" is about to begin. the washington nationals are world champions for the first time -- stuart: keep the video rolling while i talk over top of it. the washington nationals won the world series last night, they beat the astros game seven. they were down 2-0 after six innings but stormed back to win the game by a score of 6-2. the first time in 95 years that d.c. has had a world series champion. i'll say nothing -- ashley: it wasn't a home game, either. never won at home. stuart: i'm not going to mention the booing of the president by washington nationals fans. i'm not even going to mention that. ashley: you just did. stuart: i was rooting for the astros but there you go. let's move on.

china i'm going to call it pouring cold water on the long-term trade deal. that is hurting the market this morning. come in, market watcher gary kaltbaum. look, let's put the china news on one side for a moment because we keep hearing the same thing. seems to me that this is a goldilocks market, goldilocks economy. profits up, economy expanding, fed doing what we want them to do. looks like it's poised to go up, right? >> oh, i don't like the word goldilocks. whenever i use that, it means the market's going lower. let me say the market is acting fine, broadening out, and one thing that's happening right now that's not getting enough talk is our central banker jay powell, who talks tough, is printing $60 billion a month right now and markets have loved quantitative easing for the past 10, 11 years. i think that's doing the trick, plus around the globe easier money. i was reading this morning japan says they are going to go even lower in rates even though they already have negative rates. i think the market's in good

stead into the end of the year, and then we will worry about next year when that time comes. stuart: talk about the juggernaut otherwise known as apple. yeah, they've got a rosy forecast for the holidays. i think that's what's really helping the stock this morning. plus services and wearables doing real well. it's at $247 premarket. would you buy it at $247? >> i wouldn't. i think you will see some pullbacks but let's be clear. couple of things. number one, it's no longer the great growth stock it used to be. but that's because they already do $250 billion in sales. but they are growing services and wearables and all this other stuff while the iphone's been heading down, just because everybody has one. for me, though, the bigger story is the 5g next year and whether apple will sell a ton of phones when that switch starts to come, and i think the answer is yes. so yeah, i think the story continues. i got to add one other thing. i was in new york city last week and about 11:30 p.m. i was

walking past the apple store on fifth avenue which is open 24 hours. at 11:30 p.m., the place was packed. i think that tells you a lot about what's going on with apple and this great ecosystem that they have created, and good on of course steve jobs and i think tim cook, who is no steve jobs, has done an admirable job. the stock is going to do fine. stuart: you're right. that place is jam-packed any hour, any day. it really is an amazing piece of retailing. thanks for joining us. see you again real soon. let's take a look at facebook, which i'm going to call a teflon stock. despite the threat of regulation somewhere down the road, this is a company which is just going straight up. a stock that's going straight up. jim anderson, the social flow guy, is with us now. i think i can call that a teflon stock, can't i? >> evidence would certainly seem to support that. the numbers just get crazy. huge numbers. but the thing that struck me, 94% of their revenue was from

mobile devices. you just talked about apple. 94% from a company that was late to mobile. stuart: that's interesting. 94% of what facebook brings in the money from these things. >> that thing. $17 billion or so. it came from that device. it's your attention on that device is what's driving facebook. stuart: i know you don't analyze the market and stock prices, but it seems this looks like a very positive outlook, barring immediate action on antitrust, for example. that's way down the road. >> i think it has to be way down the road. it's a real issue and five years from now we may look back and talk about that but for now, they have figured out how to capture your attention. they've got a new ad format called story which sounds like aesop's fable but it's a whole new monetization. that 94% represents the power of story. stuart: i want to talk about twitter. they have banned all political

advertising. i want to bring in grady trimble because you've got reaction to this, the banning of paid political advertising. reaction to it, please? >> there's mixed reaction, i would say. twitter says they are doing this to stop the spread of disinformation. we will get to a tweet from hillary clinton first. she says this is the right thing to do for democracy in america and all over the world. what say you, facebook? brad parscale, campaign manager for president trump, takes a different view. he says twitter bans political ads, yet another attempt by the left to silence trump and conservatives. wouldn't be surprised if twitter lifted the ban after 2020. facebook has gotten a lot of criticism lately for allowing political ads, including all types of free speech. that's kind of the approach they have been taking, whereas twitter says it's banning all political ads except very specific ones that encourage voter registration. stuart? stuart: thank you very much indeed. i notice the stock actually is down this morning premarket.

it's dropped below $30 a share. jim anderson still with me. so what's going on here? is it an attempt to have a go at conservatives or have a go at zuckerberg? >> i think it's a shot at facebook, not conservatives. if twitter wanted to silence president trump they are doing a pretty poor job of it. the president has been all over twitter. twitter needs to differentiate themselves from facebook. i don't know whether this is right or wrong. do you ban political advertising, do you fact-check? you will get criticized no matter what you do. twitter aspires to be more than facebook light. i think there are legitimate arguments to be made. we will say how it plays out. stuart: you raise an interesting question which i haven't thought of. if they ban paid political ads, that doesn't mean they ban president trump from his twitter feed. >> no. it does not. one could argue it's actually to his advantage because he's got however many tens of millions of followers, he can tweet out as often as he wants to. he doesn't have to pay for the reach. stuart: suppose i receive a paid political ad, it comes to my

in-box, wherever that is. >> in your feed. stuart: in my feed. okay. then i want to send that ad on via twitter -- >> share it. stuart: want to share it. can i do that? >> not anymore. not after november 22nd. they are going to ban paid political ads but the organic posts, president trump's tweet, if you want to share that if it isn't paid, you can still do that. stuart: got it. thank you very much indeed. starbucks, when i say they are doing well in china, they are doing real well in china. i think their sales in china are up 5%, was it? the iced coffee product doing particularly well. starbucks going very nicely this morning, up 3%. $87 a share. a rosy forecast from dunkin brands, still the best coffee on the market, in my opinion. up 2% at $75 a share. lyft, another rosy forecast there. what's the stock price? up at $46. that is up 4%. however, blue apron sales down, and the stock is down 3%.

all right. let's check the overall market for a moment. it's thursday morning. we open the market in 20 minutes. the dow will be down about 50. s&p down about six. the nasdaq down a fraction, just about four points. then we have the house is going to vote on a resolution formalizing the impeachment inquiry. can the democrats get the numbers? i will certainly ask that question. secretary of state mike pompeo called out china in a big speech last night. i was there. he called beijing's policies hostile to western interests. we will show you exactly what he had to say later this hour. tobacco company altria has cut the value of its juul stake by $4.5 billion because of the crackdown on vaping. we've got the story. apple's wearable gadgets, that's what i will call them, like the apple watch, for example, doing well for them, but are they really helpful to your health? i'm asking doc siegel that later this hour. he hesitation?

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stuart: want to see a stock that's sliding this morning? look at wayfair, a furniture online seller. it's down 15%. they took a big loss in the third quarter. the stock is down big-time. i'm going to show you live pictures from hong kong. a lot of people on the streets, peaceful at this moment. that is actual hong kong island there, the central district, i believe. over in the peninsula, tear gas? ashley: yes, police are firing tear gas to break up demonstrators, apparently all dressed in black, wearing anti-government, anti-establishment masks but they are mixing in they say with halloween costumes as well which made it very difficult for police. stuart: we have to say whatever crackdown beijing has had so far, it's not been responded to by fewer people on the street. ashley: no.

lauren: carrie lam said at an event last night that quote, frankly, there is no room for optimism. where do you go from here? they are in a recession, the first one in a decade, and the worry is it's going to get a lot worse. a lot worse than -- stuart: they are out on the streets again. thursday night in hong kong. this is not a weekend night. ashley: halloween night. stuart: from hong kong, to capitol hill. a couple of hours from now, there will be a procedural vote on impeachment. come in, congressman dan muso, republican from pennsylvania. do you think the democrats are going to get the votes they need? i would imagine speaker pelosi wouldn't allow a vote unless she knew she was going to win it. is it that clean-cut? >> they are bringing their only hope of defeating president trump next year to the floor for a vote today. yeah, you're right, this is actually a scary day in more ways than one, right? i mean, we have a vote taking place to remove a president from office. we've had proceedings with no due process, no transparency.

we've really created a very toxic environment. the one person who was on the call, president zelensky, who said there was no pressure, no quid pro quo, should have been the star witness here, is completely ignored and you know, this scary thought, what if zelensky decided he wanted to take down the american president and decided to lie and say you know what, there actually was pressure, that the media would ask for his head, the national media, and the house would be impeaching with fervor. stuart: i think we must pay very close attention to how these moderate democrats vote. they come from districts which went for mr. trump in 2016. jeff van drew, kendra horn, oklahoma, joe cunningham, south carolina, anthony brendisi, new york. they all won traditional gop districts. you have to watch how they vote today. >> well, absolutely. this resolution that they are actually voting on offers real

no changes. it calls for adam schiff to have one open hearing. does not allow the president's counsel to be in the room. there's no transparency. it's just a continuation of what's already occurred and truly allows adam schiff, i mean, of all people, someone who knows who the whistleblower was, someone who is known for not telling the truth, gets to serve as prosecutor and jury. this thing is a sham. let's face it, we now have a pretty good idea of who the whistleblower is and is anybody surprised that he's a former obama staffer, that he worked at the cia, that he's known to have worked with joe biden? there's no surprise here. if this was a lifetime movie it would be less predictable. stuart: congressman, we will be following this real closely in the 11:00 hour. i know you will be, too. thanks, sir. appreciate it. check out the market which is completely ignoring this impeachment imbroglio. we've got the dow opening down

maybe 40, s&p down a fraction, same with the nasdaq. the winds have died down a little in california, just a little, but the wildfires are still burning in parts of the state. in a moment, we will take you to a winery in the northern part of the country that was destroyed in those flames. we'll be right back.

stuart: with the fires still burning in california, it's worth looking at pg & e's stock. that is the utility which is getting all of the blame and most of the liability for the fires in california. it's dropped 90%, the stock, that is, since last october. it's down a bit more today, below six bucks a share. a dozen fires still burning in california. i want to bring in susan li, because you're in sonoma county. show me the winery that was destroyed. susan: yeah. so here we are in sonoma county in this early morning here and take a look at the devastation. this is part of the large kincade fire that swept across 76,000 acres, forcing thousands to evacuate. now, this structure stood here a week ago but as you see, it's now burnt down to the ground and parts of this were built 150 years ago. this morning i can tell you that we can still smell the thick

smoke and also, you can taste it in the air as well, although firefighters tell us that over half of this large kincade fire is now under control, thousands have been able to get back to their homes but they are coming back to limited power and of course, devastation as well. you know, we know that napa sonoma county wine and tourism is a big part of the livelihoods here. 40,000 jobs tied to this industry, $4 billion in the local economy, and they are still trying to recover from the 2017 devastation where we saw that massive fire that tragically claimed the lives of over 40 people. they are still trying to reel back from that. add the 2019 fire on top of it and people are very concerned about their jobs, first of all, and also getting the local economy back up and running and having people come back to napa and sonoma county. just one point for you, stu. in terms of insurance claims, it looks like insurers paid $11.5 billion in 2017. this time around it looks like the costs might go above that level.

don't forget, half of the kincade fire is still burning and raging just a few miles away from here. back to you. stuart: thanks very much indeed. i do know that area quite well. it was beautiful and you hate to see it charred like that from a fire. susan li, we will be back to you later. thanks very much. check futures. how do we open? the word is down slightly. got some china news and that's pulling the market down a bit. we'll be right back. we trust usaa more than any other company out there. they give us excellent customer service, every time. our 18 year old was in an accident. usaa took care of her car rental, and getting her car towed. all i had to take care of was making sure that my daughter was ok. if i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. we're the gomez family... we're the rivera family...

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there are zero reasons to invest anywhere else. fidelity. stuart: here we have it, a china tweet from the president. let's see if it affects the market. i will read it to you. china and the usa are working on selecting a new site for signing of phase one of trade agreement. about 60% of total deal. after apec in chile was canceled due to unrelated circumstances. the new location will be announced soon. president xi and president trump will do signing. i would think that's a positive for the market. that last line. ashley: that, too, but 60%, that's more than i thought phase one was. you know, 60% is pretty good. it's more than half of the bill done. stuart: i thought it was supposed to be a skinny deal. ashley: that's what i thought. stuart: 60% of what you want is still -- ashley: pretty good. it all seems positive. lauren: there's a phone call tomorrow between trade

negotiators on both sides. that comes from china's commerce ministry. so we might know more tomorrow about when exactly there could be a phase one signing. stuart: bottom right-hand corner of the screen, i see futures show a 30-point loss. no immediate impact from the presidential tweet. although i do see the nasdaq -- it's dead flat, to ever so slightly lower. let's wait and see. we have a minute to go before this market opens. at that point, we will see if the new presidential tweet makes any difference to stock prices. will you just put it back on the screen, please? i think it's important and i want to see it again if you can get it. thanks. the last line, just pay attention to that last line. president x, and president trump will do signing. that is definitive. i have to believe that if the president puts that out, they are going to do the signing at some point. it will be at some point -- ashley: very positive. stuart: all right. we are approaching the opening of this market on a thursday morning. when you see clapping and cheering you know you're close

to actual trading. i want to say that the market looks pretty solid. you've got the fed doing what investors want them to do. you've got profits coming in very strong. and you've got two tech titans which are just absolutely going straight up. that would be apple and facebook. here we go. we are off and running and we have opened down a fraction, down six points. flat to slightly lower, i will characterize it like that. not that much price movement in the early going. it does appear to me that the market is completely ignoring this impeachment process vote that takes place later this morning. we are off, we're running, we're down, what, 20 points on the dow but most of the dow 30 have opened in the red. how about the s&p 500? i think that's the same story. flat to slightly lower. the nasdaq, did that open higher? yes, it did. up nine points. we will take that. that's no doubt on the strength of facebook and apple. let me show you apple. $246 is your price quote right

now, up 1.3%. that's $3 higher. their wearables doing well. facebook, almost 2.5 billion monthly active users. that's up 8%. the stock is up $8, nearly 5%. lyft, they came out with a rosy forecast and what usually happens when you do that, the stock goes up. it's up this morning, 3.5% -- sorry, you're looking at starbucks now. they are doing particularly well in china. coffee sales, iced coffee i'm told does rather well. stock's doing well, too. look at that. 3% higher on starbucks at $87 a share. all right. lauren simonetti, ashley webster joining me now for coverage of what's going on on the market. i've got to start with apple. it's such a huge stock, such a huge company, trillion dollar market cap, and it's now at $246. it's a juggernaut. ashley: go ahead.

lauren: we're both so excited. they have their wearables and arcade, their services, that's the video game, everything that they sell, their services are booming. so even though iphone sales are slowing, they have all that and i crunched some of the numbers on apple services, we spent at least $100 a month. if you are in the apple universe, if you add up apple music, apple tv plus which launches tomorrow and the other things, that's at least $100 a month going into the apple universe. stuart: wearables and watches, the new air pods, sales are up 54%. ashley: look at all the analysts piling in, raising their price target, some to $275, some to $290. wedbush comes in at $300 is their new price target. all pointing up. stuart: let's bring in scott martin, who joins us now. scott, where do you think apple's going? i know you own it already. i know you are big on it. you think it goes to $300 a share by early next year? >> by early next year, that's going to be a little tough. i will tell you, one thing that worries me a little about some

of these tech stocks is when the analysts all seem to be upgrading things at one time. that tends to be the loading of the boat to the other side, which i think is fair in the sense of what we have seen from apple lately, especially coming off a couple cycle phone period where things were very met. i don't know if 300 is in the cards. i think 275-ish, especially as money managers buy this stock. i would temper expectations just a bit. stuart: you have a $5 gain as of right now, at $248. by the way, as apple does extremely well, samsung is getting hit by a slump in the memory chip market. can you tell me any more about this? lauren: it's down drastically. profits fell 52% on an annual basis but the stock is not getting hit because the thinking is when apple comes out with their 2020 phone which is going to be a 5g phone and some of the other smartphone makers do 5g, samsung is going to benefit by

putting chips in those phones. investors are forgiving. stuart: next case, i believe we have facebook. yeah. got to look at that. i just call that a juggernaut as well. it's certainly a teflon stock. it's shaking off these regulatory concerns. $196 on facebook. scott, i know you own it. i know you have owned it for some time. does it go well above $200 a share? >> yes. we have owned it for some time, a long time. i hate to do this, but one thing you and i talked about exclusively a couple weeks ago when zuck was due to go to d.c. and talk to everyone was around 180-ish. how people were worried and jumping ship, how we thought it would be a great buy there and it was, certainly. facebook, some of the numbers are incredible. instagram is hammering it. the daus, maus, daily and monthly active users, if you are playing at home, basically created their own planet. i think facebook goes well above 200. it will have fits and starts because of the political issues,

but those are reasons to buy it, in my opinion. ashley: i don't think, to your point of it being teflon, we have had so many negative headlines about facebook and it hasn't stopped the stock at all and it won't until regulators come in and start breaking it up or change the business model. until then, i don't see, you know, they will continue the upward rise. stuart: that has to be years down the road, doesn't it? investors are not going to react to a threat that's miles away. you don't do that. lauren: the fines are doing nothing to the stock price because they are usually small. it would be a major change, a structural change. but if you look at their margins, they are pretty high. contrarian question for facebook would be are they spending enough money, is their focus big and strong enough on cleaning up their act, if you will. stuart: eight bucks higher, $197 on facebook. apple and facebook. next one, starbucks. not quite a juggernaut, but much better sales in china. the stock is up 40% since last

october. it's at $85 a share now. all right, scott martin, one more question. would you buy it at $85 a share? >> i do like starbucks here. a few of our clients own it. we're looking to add more. tell you what's interesting, though. from the numbers, top line revenue, stuart, same store sales, something i know you are going to love, i'm going to say which is margin growth -- yes, yes. i know how to talk right to your heart. those numbers look amazing. it's funny, though, those numbers came in so well yesterday and the stock's not getting more of a pop. i do think this thing hits $100 by say, march or april next year. lauren: i know why, scott. sorry. millenials are drinking coffee all day long. it's not just the morning anymore. >> great point. you know what, if you guys want to do the test like the apple store, go into a starbucks in a busy area, chicago, new york, l.a., wherever, jam-packed all day long. stuart: all right. moving on, the big board now shows a loss, not a big one. down 20 odd points, 30 points. we'll take it. 27,154. which means we are 200 points

from the all-time record high. look at dunkin brands, please. they came out with a rosy forecast. when you do that, the stock tends to go up. 4.7%. look at the online craft retailer, etsy, down big after three brokerages cut their target price because of increased spending on promotions such as free shipping. really taking it on the chin, down 14%. blue apron, sales down. the stock is off 5.5%. better profit coming in at kraft heinz. that stock is up 7%. world wrestling entertainment down big after revenue fell short of those expectations. okay. what's the stock doing? can you show me that? okay. we will move on. you got it? no. all right. the ten-year treasury yield. have we got that, please? yes. that's interesting. 1.73%. this time yesterday, it was

1.83%. ashley: it's dropped. stuart: which means you've got an enormous rise in the price and a huge drop in the yield which implies money is coming in from overseas into our market. ashley: interesting today, we are seeing a big influx into gold, up 13 bucks. well above $1500. not sure why. stuart: back to $1510. ashley: that's interesting. stuart: so gold is up. what about oil? that doesn't really move the market much these days. it doesn't today. it's at $54 per barrel. right. moving on, megacar merger. fiat chrysler and peugeot getting together in a $50 billion deal. five months ago, fiat abandoned merger talks with renault. this is going to work out better, do you think? look, this is all about consolidation all over the world, it's consolidation. there's far too much capacity to build cars which people are not buying. this is all about job cuts, isn't it, scott? >> yes. and consolidation and cutting of

costs and maybe increasing production efficiency. to these mergers i would say yes and i'll tell you what's interesting. recently, take a page out of what we have seen in the u.s. obviously the gm struggles with the unions, ford being downgraded, there's a lot of things going on in auto land that kept us away from that space for quite some time. i wouldn't encourage anyone to go near it. stuart: they all invested heavily in electric cars and there's no guarantee that electric cars are going to be as big as everyone says they are going to be, right? >> especially if the power is cut off. look at all these folks in california that are poised to get tax breaks to drive teslas, can't even charge the cars. stuart: there you go. on that subject, lyft, they gave a rosy forecast. they give their profit report, they come out on the call, they say -- i have been wanting to invest in a ride sharing company, whether it's uber or lyft. i want to invest in them. i haven't so far. scott, which one should i pick?

>> you have a coin you can flip? i like uber's overall kind of scope better than lyft's, but stuart, it's so funny to hear you say i want to invest in a ride share company. it's like why, they lose so much money per ride. but it's getting better. lyft is starting to figure it out as i think uber will. i just think it's something i would wait maybe a year or so on, until they have more experience as a public company and you get more earnings reports to sift through to see if there's real improvement. stuart: i do not wish to invest in a vaping company and here's why. altria has cut the value of its juul stake by $4.5 billion. juul, of course, is a vaping company. altria's got a big stake in it. it's rwritten down that stake t the tune of $4.5 billion. that's put altria, a tobacco company, that's put that up 1.6%. $46 a share on altria right now. we got anything else? ashley: altria, definitely

trying to get away from traditional cigarettes, plowed in almost $13 billion into juul for a 35% stake. that was last year. guess what happens. we had this big controversy about vaping and the illnesses that have been associated with it, although juul will tell you it's because people are using it to inhale thc, but bottom line is a big write-off. not the only one. i think fidelity has a big write-off and hedge funds also. they all piled into this stock, now having to write down. stuart: can i just close out this segment like this. seems to me like the economy is really doing rather well. and all the indicators, it seems like we are clearing the decks for a nice stock market rally. profits good, fed's doing what we want, the economy is growing nicely. are we poised for takeoff, scott? >> takeoff, i'm not so sure. i think we are poised to nothar. that's what you're referring to, what the fed is doing and should be doing.

a weird quick thing. as the interest rate curves have gotten more normal in the sense of rates are lower on the short end, higher on the long end, i know that's gobbledy-gook but it's interesting to look at economic data points, whether it's jobs, gdp, consumer confidence, business spending, all down, my friend, since the fed started cutting rates in july. stuart: all right. we got it. scott martin, thanks for joining us this thursday morning. see you again real soon. i better check the market. it's 9:42. little late this morning. we are down 50 points on the dow, 27,134. secretary of state mike pompeo slammed china in a pretty fiery speech last night. i was there, by the way. we will show exactly what he had to say in a moment. new york city has banned the sale of foie gras over animal cruelty concerns. we are asking a chef who serves it in his restaurant, what impact that's going to have. and happening on capitol hill, the house will vote on impeachment procedures.

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stuart: well, i thought that the presidential tweet saying that the president and xi jinping would sign phase one of the deal soon, i thought that might help the market but it hasn't. we are down 60 points now for the dow industrials. quick look at ford motor company. the uaw has got a tentative deal with ford. no difference in the stock. cigna, insurance company, gave an upbeat forecast. the stock is up a mere $1.72. estee lauder cut its forecast and also said the hong kong

unrest affected sales there. the stock down 3%. now, let's get to world wrestling entertainment, down big. its revenue fell way below what was expected. the stock is down nearly 13%. secretary of state mike pompeo really slammed china in a speech last night. watch this. >> the communist government in china today is not the same as the people of china. they're reaching for and using methods that create challenges for the united states and for the world. and we collectively, all of us, need to confront these challenges from the prc head on. it's no longer realistic to ignore the fundamental differences between our two systems. stuart: i would call that a hard line speech. joining us, curtis ellis, former trade adviser to the trump campaign. with a speech like that, where he laid it out against china, i don't see how you can get a long-term deal that restructures china's laws or economy. >> well, it's certainly in

china's interest to restructure their economy. you cannot -- we know you, stuart, we all know the virtues of capitalism and private property. it has produced the greatest wealth in the history of the world here in this country. if china were to follow that playbook, they will do better in the long run than sticking to theft and state-owned enterprises and subsidies which right now, they are acting as a parasite on the rest of the world. stuart: yes, but to completely reverse that? that's what president trump wants. that's what mike pompeo wants. >> exactly. stuart: do you think the chinese will totally reverse their whole world view, the organization of their economy, their behavior on the public and the world stage? they going to reverse that? >> it may take time. stuart: how much time? a long time. >> actually, let's look at it this way. over 20 years, the united states companies invested in china

rebuilt their supply chains inside china. that took place over a period of 20, 30 years. so that's not that long a time in the grand scope of things. we can rebuild those supply chains back in the united states and china can rebuild its economy. look what happened in taiwan. look at the german economic miracle after world war ii. these things can happen very quickly if people put their minds to it. stuart: yes, but you've got to get an agreement from a communist dictator that he's going to change his ways. come on, curtis. you think? >> if we give them the proper incentives. stuart: what is the proper incentive? >> not letting them rip us off and continue to rip us off and as mike pompeo said last night, we need to think anew about the peoples republic of china. we need to recognize that it is hostile to our values and our way of life and we can't pretend that they are nice and that they behave the same way we do. stuart: i've got 20 seconds left. you tell me, five years from

now, has china radically changed its behavior? >> five years from now -- stuart: yes, five years. >> -- it will not have the influx of western capitalism that has been propping it up and giving it every incentive to continue doing what it's doing now. stuart: all right. that's sort of a diplomatic answer and you know it. curtis, thanks very much for joining us. see you again. check the dow 30. we've still got a lot of red there. yes, we do. in fact, the vast majority of the dow 30 are in the red and the dow industrials are down 73 points. apple's tim cook says wearable health devices like the apple watch, a big part of apple's future. google, as you may know, have been thinking about buying fitbit. are these wearables just a fad? i'm going to call it health virtue signaling. almost useless. doc siegel on that, next. ♪

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stuart: we're down 77 points on the dow industrials, but still above 27,100. now, i want to talk to doc siegel, as in dr. siegel, about those wearables. you know, wearable computer stuff, you know, fitbit, for example. apple watches, for example. i don't think they're much good,

doctor. come into the discussion. i don't think they're much good. this thing here, my apple phone, it tells me how many steps you've taken, it tells me how far i've walked, how many flights of stairs i've gone up and down. what's the good of that to me and my health? >> i used to be against it and i was against it on this show. but i'm starting to come around. stuart: why? >> a new study out of johns hopkins looked at all the centers for disease control data from ages 50 to 85 over a five-year period and they found that people are dying more frequently from not exercising as monitored by a fitbit or apple watch versus everything, smoking, alcohol, heart disease. if you simply exercise daily and you don't monitor it by self-report, oh, i went to the gym but you didn't really go, but this thing shows if you went. that kind of monitoring leads people to be more compliant. i'm starting to come around. another thing, i have found that that apple watch device tells

you if you are in unusual heart rhythm. i made fun of that. i got news for you. it saved lives. it saved some of my parents' lives. people go to the emergency room. stuart: can't take my blood pressure which is very important to my health. can't test my blood which is very important to my health. can't do any of that. period. can't do it. >> it's going to be able to -- stuart: it's virtue signaling. health virtue signaling. that's what it is. you buy a fitbit, an apple watch, run around with it and say i'm looking good, i'm doing what i ought to do. virtue health signals. >> it's getting better. listen, it's going to be able to do your blood pressure in the future and it's going -- it's about a year away from being able to tell your blood sugar which you could then beam to me by wifi and say doc, my sugar today is 250, what do i do. that's potentially life-saving. the key here, this is where you and i agree, the key here is that doctor being in the loop. stuart: it's good for business. that's why you like it. it's good for business. >> i got too much business.

it isn't about business. it's about actual health outcomes. i'm buying it. as long as i get the info. stuart: you are the expert here. i will take your word for it. >> really? i win this? stuart: you win. yeah, you win. i'm not going to buy one. don't get carried away. dr. siegel, thank you, sir. appreciate it. all right. new headline in the "new york times" points to joe biden's troubles on the campaign trail, in the "new york times," please. his poll numbers are slipping. i say he's facing a crisis and by extension, so is the moderate wing of the democrat party, if it's still there. my take on that coming up next. plus, wildfire coming within feet of the reagan presidential library in simi valley, california. what are they doing to prevent future wildfires? that's a good question. they occur every year around there. how are they going to stop them in the future? today was supposed to be the brexit deadline. now boris johnson has about six more weeks to get his deal through parliament. will he get the votes? nigel farage comments in our

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stuart: almost 10:00 eastern time on thursday morning. that is mortgage rate time for the 30 year fixed. number, please. ashley: greatest hour for the week for me. 3.78% is latest on 30 year fixed freddie mac. that is up slightly from last week, 3.75. it has been going up three weeks. minor amounts. homebuyer demand remains strong. the biggest problem in the housing market? lack of supply of homes. stuart: that is historically very low. very low i would have to say. not a record low. certainly down there. ashley: yep. stuart: check the big board. the mortgage rate news is not important for this stock market at this moment. they're concentrating on other things. i don't know what. we're down 103 points for the dow and now this.

when "the new york times" points to problems in joe biden's campaign you know that campaign is in trouble. "the times" headline, the many ways that joe biden trips over his own tongue. well the writer list as series of gaffs which keep on coming, even though he has had six months of campaigning to sharpen up. "the times" quotes are leading iowa democrat, quote, he comes across like he is stumbling around, trying to figure out what he is going to say. that in a "new york times" of all places. more bad news, new polling shows biden's lead over trump in head-to-head matchups is narrowing sharply, not good for the biden camp. he is supposed to be the one who will beat him, trump, like a drum. sounds like an empty boast now that his early big lead has crumbled. that is not his only polling problem. in iowa, the civics poll of likely caucus-goers puts him in fourth place. when it comes to raising money

he is in deep trouble, trailing warren, sanders, mayor pete. it takes money to campaign effectively these days. joe ain't reeling it in. joe biden is facing a crisis, by extension so is the moderate wing of the democratic party. as he fades, socialist power ahead. watch today's impeachment process vote. moderate democrats are shall we say, conflicted? new jersey jeff van drew, oklahoma kendra horn, south carolina joe cunningham, new york, anthony bren dell. ze, massachusetts colin son, in minnesota, all elected in in 2016. it puts them in a corner just like joe biden. it is crunch time. aingely left have taken over the democratic party and socialists have taken over the democratic campaign and the second hour of

"varney & company" is about to begin. ♪. stuart: visiting tax exile, he lives in florida these days, doug schoen, a fox news contributor, and a democrat. where am i going wrong? >> i think you're overstating case. president at 43% approval. he is still behind leading democrats. faces impeachment vote he will lose today. that is not good. stuart: you think i'm overstating my case joe biden fading badly? >> i'm talking about overall case about weakness of democrat -- stuart: tell me about joe biden. >> he is still the front-runner. but heading in the wrong direction. i agree with you there. stuart: will he last the distance? >> he will last through super tuesday if he is able to survive the first four primaries and caucuses which don't good h look good for oim except

south carolina. stuart: the moderate democrats in the house of representatives, those moderate democrats in a corner. they have been pushed to impeachment process and they might have to. >> a few of them in the corner, isolated them. vast majority of moderates bought in pelosi and schiff's approach. i think that is problematic. i'm not sure it is going to hurt them as badly as you might suggest, but it sure isn't the path i was recommending. even nancy pelosi was recommending. stuart: do you think they get the votes to pass this resolution? >> yes, i do. i do. i would be startled if they don't. stuart: do you think they will have democrat unity? >> i think they will have democrat unity except for a few moderates they give a pass after they figure out that they got the votes. stuart: if you only scrape over the 218 line, that is not a strong performance. >> 219 is a lot better than 217. stuart: you're such a diplomat.

are you on the plane to florida after this. >> i hope so. stuart: i don't mean to cut you short. we want to look at events in hong kong. they are moving in to break up or counter the protesters. that is in kowloon. ashley: that is where we saw police activity. they have been using tear gas. the bottom line, the protests in hong kong have not died down. earlier we saw pictures of thousands of people on the streets, even as beijing cracks down and tries to end these protests, they're not ending. they're still out on the street. it is what 10:00 at night there this is the time when things start to heat up. and they are indeed heating up all over again. i don't know what the the end game here is, but certainly not over yet. we thought we would bring you pictures, because that may have some tangential influence on

china trade, certainly, chain-u.s. relationship. lauren: we're looking at images the dow is down triple digits. stuart: could there be? lauren. we got a report out of chicago pmi manufacturing, at 39-year low. the worst drop we saw in 39 years. national number for manufacturing. we get the jobs report tomorrow. look at the manufacturing sector. the positive here, because i don't want to be negative because the economy is still growing. businesses have cut back on their spending but they haven't cut back on their workers necessarily. so until that happens, if that happens, but with the release of that manufacturing report, the market went lower. stuart: the chicago report did it. not hong kong. chicago manufacturing report, that is what did a downturn in the dow. we're off 100 points. still above 27,000. look at facebook. that is a performer. they have got almost 2 1/2 billion active monthly users.

now they're making money, despite the threat of regulation that comes down the pike. joining us now, market watcher joel schulman. joel, you invest in entrepreneurial companies. >> yes. stuart: is facebook still an entrepeneural company that you would invest in now? >> well it is still an entrepreneurial company. we still invest in facebook. we're happy with the performance. up 43.6% year-to-date and further today. this company invested 32%, 32% in r&d. revenues are up 39% from last year. despite all grumblings and criticisms. this company is growing. they're growing subscribers. they're growing revenues on instagram. it's a strong company. entrepeneural. there are a few things we're not happy about, that show some signs of bureaucracy entering in, when you look at number two, number three corporate players. taking out very large sums of cash for compensation but not pointing at stock.

by and large this is entrepreneurial company yes. stuart: same question with apple. they're making money, wearables, services doing very well. slightly lower iphone sales. do you regard this, apple, a much older company than facebook. do you still regard it as sort of semientrepreneural? >> that's a great way to put it. we view them as semientrepreneural company. steve jobs tragically passed away a few years ago. tim cook done bite leading the charge. this is very well-run company. this is not bull eye totally entrepeneural company. the team stays together a long period of time, invest in r&d, sg&a costs are going up. we see some signs of bureaucracy

entering in. for a $1.2 trillion company they're doing very well. stuart: starbucks was up much more earlier. it is up 1% higher. doing well in china, cold drinks, cold brew doing well all over the world. i don't think you would call starbucks a entrepreneurial company. do you like the look of the stock as it goes forward? >> i like the look of the stock. howard schultz was there until a few years ago. he owns $3 billion, he is chairman emeritus. i'm not sure he is active live involved in any way, shape or form. still the single largest zare holder has influence and created company we've seen today. revenues growing approximately for company this size, 7% growth. they're growing throughout the world. we consider this again another near entrepreneurial company. not a position we own. we no longer own starbucks but we do own apple and of course facebook. stuart: big picture, real fast,

joel, as i look at this market unfold, i see tons and tons of money pouring into big tech. not so much pouring into industrial companies or insurance companies. that kind of thing. big tech takes everything these days. >> well it is interesting you say that. the s&p as you know all-time high. much of it has been driven by industrials in the last few months. so the industrialization have performed very well. it has been i.t. consumer discretionary and communications services that haven't done as well. which is unlike what we had in the beginning part of the year. i see the three sectors you just mentioned, i.t., others coming back quarter end. i think we have a strong christmas. small kaupe surged last few weeks. non-u.s. is also very strong. seems like money, risk capital is coming back into the markets. large caps benefited first.

and rest of year if we have a strong christmas, it will be very nice. stuart: maybe i should diversify after my dear old microsoft. joel schulman. thank you. thanks a lot. to california, the ronald reagan presidential library has been spared. next we'll talk to the man in charge of the library and we'll talk to the mayor of simi valley. i want to know what is being done to prevent more of these fires in the future? we're about an hour away from the house voting on that impeachment measure. big news on the hill today. you know we're all over it. the second hour of "varney & company" getting started. ♪ most people think of verizon as a reliable phone company. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next.

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stuart: low of the day, ladies and gentlemen. we're down 150 points on the dow. that is half of one percentage point. at top of the hour, that is when the slide started. that is when the chicago area manufacturing index, i think it was index, it was released and it was really weak. at that point the market started to sell off. we're down 160 points. general motors recalling 600,000 suvs and pickup trucks. there is a risk of sensor failure that could cause braking. that has taken out 2 1/2 percent pour general motors. california, you remember yesterday we reported on the reagan library, we told you accurately it was evacuated because of fires getting real close. on the phone now, the executive director of the reagan foundation. bring us up to speed. what is the situation today? >> hi, stuart, it looks like a moonscape around the entire

library. files encircled it. thanks to heroic efforts on the ground. many firefighters saved the reagan library and saved it today. we'll not be open, but have our level best to have the reagan library open tomorrow on friday. stuart: at this point is library threatened at all or has the fire receded from it completely? >> the fire receded. there is not another piece of grass or tree surrounding the high blairry. it went up in smoke. the exterior is in tough shape. the library is find and still standing. stuart: we'll grasp at the good knaus. we'll take it to run with it. john, thank you, appreciate it. staying on wildfires, bringing in keith mashburn. the mayor of simi valley, that is where the reagan library is

located. that is where fires are raging recently. your honor, obvious question here. these fires occur quite regularly in your area. what can you do to prevent fairs in the future? >> well there is a lot we can do. have residents and freeways cleared of excess brush an fuel that burn during these fires. there has been an effort by the electric companies. they're shutting off circuits which is very disruptive to our city but they think that that might reduce the chances of fire. stuart: are you allowed to clear brush? are you allowed to do that? i think, i was told the environmentalists gone to courts want all forests to be totally natural. you can't clear the fuel away. are you allowed to do what you want to do? >> well it is a battle with the environmentalists. however ventura county, simi valley, has been very

successful, requiring residents that live in brushed areas to clear the brush back away from their homes by at least 100 feet. that allows, they call it defensible space. allows firefight firefighters to get into homes with fuel. lets fires to go through where there is fuel not next to the homes and saving their homes. stuart: i know you're extremely busy. we're very sad to see what happened to your part of the country. it is a truly beautiful area but we hope that you can stablize and regain the ground very quickly. your honor, keith mashburn, thanks for joining us. >> thank you very much. stuart: totally different subject. totally different. new york city, banning the sale of foie gras. they say it is abusive to animals. it sells big in upscale restaurant though. this is the banning of a legal product. the owner of the boston chops steakhouse is back on the show.

he is fired up about this. what is he going to say about the ban in new york city. talking about starbucks or dunkin'. which one do you prefer? they're both doing well. we'll sort it out for you. ♪. whether you're out here on lte.

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27,020. the chicago manufacturing report -- ashley: i think trade too. the market started off with a bloomberg report today, the chain fleece officials are not so sure about it. concerned about mr. trump's volatile behavior. mr. trump said all stations go. we're ready to sign a dial. 60% is done. all very positive. but the market is not -- stuart: we're slipping 163 points. ashley: caterpillars, big trade stocks moving lower. stuart: show me the 10-year treasury yield that will be important. ashley: 173, wasn't it? stuart: now we're down nearly 200 points. what i'm thinking the money is pouring into the bond market. that is what happened. a lot of money pouring into our bond market which raises prices, lowers the yield. money pouring out of the stock market. we're down nearly 200 points. let's settle a dispute here. let's talk coffee for a moment.

on your screen, two coffee, dunkin', starbucks. both of them are doing extremely well. their coffee business is really winning. i was going to ask, which serves the best iced coffee? ashley: i don't drink iced coffee. stuart: i know you don't. so i will ask you a different question. which is the best coffee in the world? ashley: australian coffee if you want the answer. my wife watching at home, who is australian, it is fantastic. it is great. it doesn't use drip, expresso. expresso-based coffee. i'm sorry, starbucks to me is bitter and burnt. stuart: expresso, our producer this hour says is from australia. flat white. >> it is fantastic. lauren: starbucks sell it by the way. ashley: but it is not the same. stuart: there is limit. i'm staying on food. let me move on. you know the calorie counts you get on fast-food men use,

driving orders in fast-food joints, down. what? lauren: yeah. about three years ago someone looked at this and wrote a piece in a medical journal. they looked at 104 fast-food chains in three years in some southern states. they found that orders at these restaurants the number of calories went down. first they went down by 60 calories on average. the next year by 23-calories on average. not much, moving slightlier in the healthy direction. personally when i go into a restaurant, i see number of calories on something, sometimes i'm blown away. i don't need that. no thank you. does it have impact? i will go with yes according to the study, minimal. stuart: the higher the calorie count, the lower the order rate? lauren: yes. stuart: that is accurate? ashley: people saying too high in calories, is that the inference? lauren: that is the inference. stuart: i've done that myself. ashley: no you haven't.

stuart: i have. lauren: cookie you see 700 calories. you don't need the cookie. ashley: i do. higher the calories the better. stuart: we're spending a lot of time on this. next one this, gets important here. boris johnson has been pushing for brexit from day one. supposed to get it october 31st. he says if he is reelected in december he can get the uk out of the european union by january. what's all that mean for us in america? nigel farage is next. the pentagon releasing video of a raid that killed isis leader al-baghdadi. we'll show you some of the footage next. ♪. imagine traveling hassle-free with your golf clubs.

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♪ you say yes, i say no, you say stop, i say go, go ♪ stuart: harmonious and good song. i haven't got time to play much of it now. because we have a market sell-off. we have news from speaker pelosi. i will give you the news from speaker pelosi first. she is holding a news conference. she said she is optimistic that the house is still on path for a yes vote on the u.s. mexico canada trade deal. optimistic they're on path for a yes vote. would i have thought that would have been a positive for the market. if you get usmca, that's a nice trade deal, i would have thought that was plus for wall street. apparently not. we're still down close to 200 points. the market is paying attention

to news out of china on trade. they don't think there will be a long-term deal. the news from the chicago manufacturing people, a big drop in the recent reporting period. we're down at the low of the day, 204, 211 points as we speak. now today, october 31st, this was supposed to be the day when the brits got out of the european union. but not going to happen today. there will be a election on december the 12th, and maybe we'll get out. they will get out after this. nigel farage, mr. brexit, is with us now. nigel, i know you don't like boris johnson's deal, but the bookie say he is odds on favorite of the december 12th election. if he wins, will he take them out? >> no. it is brexit in name only. it leaves us tied to a new eu

international treaty. it takes us into three years of trade negotiations where already the eu have predetermined that we have to have regularly alignment on social policy, employee, protection, all environmental law including paris, and the believe it or believe it not, taxation. so we finish up with this, heading toward as period where a trade deal even at the end of it with the eu would neuter in many ways our ability to do trade deals with the usa, many other parts of the world. this is not brexit this is a short-term fix, the reason are boris johnson is odds on at the moment, the british public unsurprisingly board after 3 1/2 years. stuart: i think they're exhausted. they want an endgame here. electing boris johnson under terms of exit from the eu is the best they have got. you, your party, you're 50-1

once winning this. the labour party is 13-2 against inning. boris johnson, 6-1 on. there is exhaustion here. that is what is going on. >> i understand that fully, however we have a six-week campaign. i am going to do my best in the next couple weeks, starting tomorrow to explain to the british public that because we have an election, there is a chance here to press the reset button. i will urge boris johnson, drop the deal, drop the treaty. let's go for simple trade. whether on wto terms. which is how the uk, usa currently trade. whether it is for the free-trade agreement but without political strings. that is what the brexit vote want. i am hoping presence of me, brexit party, gets him to change course. otherwise we will not get anything that even resembles brexit. stuart: this may be a technical point, but just follow me

through with this for a second. boris wins december the 12th. takes us, takes you guys out of europe at the end of january. that point, would we, the brits be able to negotiate a trade deal with america? you are shaking your head, no? >> absolutely not, no way. we would not be able to sign a trade deal with america until 2023 but i think, the terms that have been put on by the eu, on regulatory alignment, means we won't ever be able to sign a trade deal with the usa if we go down this route. that is an error a mistake for everybody. i understand boris's difficulty. he inherited a very difficult situation. mrs. may signed up to the appalling deal. he inherited that. he made it slightly better but we're not going to truly be free. so i am urging the prime minister, you know, please, drop

the deal. let's go for a clean break, and if you do, you will have my 100% support. you won't just win, you will win big. stuart: he won't do it, you know that, don't you? he won't do it. >> you never know in politics. we'll see. stuart: nigel, you've been great covering this for us all the way through from the original brexit referendum all the way through to the present. we always appreciate your presence on this program. nigel farage, thank you, sir. appreciate it. okay. i will show you video of a raid that killed isis leader al-baghdadi. it was released yesterday. we'll show you some of it. what new information do we have? what can we glean from it? ashley: apparently this was in the planning stages for a while. all the planets aligned, weather, certainty the target was there, lunar data. even where the moon was, all that came together. this video released, a short video. you see black silhouettes of

u.s. soldiers approaching a wall of a compound that this took place in northern syria. you can see bombs going off. the site was bombed after the attackers and survivors gotten out. they did that, because they didn't want this place to become a shrine. stuart: by the way the pentagon just told fox news north korea did indeed launch a missile, a projectile. what did they say a missile or projectile? ashley: original reported two from the western province into the east sea. this is the 12th weapons test north korea conducted so far this year. stuart: 12th. we have to pay attention at the bottom right-hand corner of your screen. the dow industrials are down 228 points. i'm trying to look for negatives here. reasons why we're down. i'm just wondering if this impeachment process vote that is going to start within the next hour has that got something to do with the market selloff? i don't know. maybe.

the comments from pelosi what do you say, producer? okay. okay. speaker pelosi just said the timing of the trade deal, usmca, has nothing to do with impeachment. i would have thought that was a positive for the market because the market wants the usmca deal. she said it earlier that -- ashley: she also says coming to terms with this usmca and it will also be a template for future trade deals. again, that is positive, right? stuart: i would have thought so, yes. ashley: check out china trade stocks, caterpillars, those are definitely hurting in this market. that is helping bring the dow down. stuart: fascinating. dow down 200 points. not quite the low of the day. down 230. we'll keep you up to speed. tobacco company altria cut their stake in juul, four 1/2 billion dollars.

that is a big stock. alta is up, down a fraction. lauren: just a fraction. they reported earnings. wall street liked what they had to say. they wrote down the investment in juul. obviously under pressure being linked to illnesses and deaths potentially related to vaping. so they cut their stake more than a third. now juul is valued just $24 billion. altria has to assure its investors that, its juul stake won't jeopardize altria's bottom line in the end. stuart: got it. altria is $45 a share. house members are about to vote on a resolution to formalize the impeachment probe. you will see it unfold here in the next hour. first though city banning foie gras. chris coombs, serve this is delicacy in his restaurant. he has strong thoughts on the ban of in new york.

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stuart: a presidential tweet concerning the federal reserve. here it is. people are very disappointed in jay powell and the federal reserve. the fed called it wrong from the beginning. too fast, too slow. they even tightened in the beginning. others are running circles around them and laughing all the way to the bank. dollar and rates are hurting. our manufacturers, we should have lower interest rates than germany, japan, all others. we're now by far the biggest around strongest country but the fed puts us at a competitive

disadvantage. china is not our problem. the federal reserve is. we will win anyway. that is not having any impact on the stock market, which is down 200 points on the dow industrials. here are negatives. chicago manufacturing area, down sharply. a negative chinese report on china trade earlier today. they don't think that it looks good for long term agreement. and we have this impeachment vote, the impeachment process vote i should say, coming up in just a few minutes. maybe that is a negative for this market. i don't think so, but maybe it is. nancy pelosi saying that they're on track for a yes vote on usmca. that is a positive. have no impact on the market so far. we're still down 218 points. a couple of big names to check for you. first of all, kraft-heinz up 12%. that is a big gain. look at blue apron. the stock has turned around.

ashley: earlier this morning this thing was down. stuart: i don't know how much. blue apron is up 8%. ashley: buying opportunity. stuart: all right. new york city will ban restaurants and grocery stores from selling foie gras. it takes place in 2022. chris combs is with us. thanks for coming back two days in a row. you love us. >> we're on a roll. stuart: new york city counsel members don't like foie gras because ducks are force fedded. you own a restaurant and steakhouse. would you stop selling it? >> i will do what i am told. foie gras is really building blocks of my cuisine at my fine dining restaurant. as a chef i perfected my entire can reperfecting preparations. if we look at farming, what is humane, what is not, they're making foie gras the bad guy.

there are chickens raised in this country put in far worse situation than the ducks. i've been to the farm. the ducks seem really happy. i'm happy to serve it. it is delicious. i think it is picked on because it's a luxury item. stuart: you have been to the farm where foie gras is produced? >> abs absolutely. stuart: i heard they put a food down the duck's throat and force feed it for 20 days? >> i don't know about length of time. i saw ducks enjoyed feed. i'm not sure ducks are generally aware whether they're being forced fed or not. i'm not a duck. i do know as a chef it is delicious. i love serving it, ultimately, i think the foie gras farms could look at practices in modern farming and perhaps they have two years before the ban takes effect. perhaps come up with a humane way to raise these ducks, specifically for new york city. we're smart enough farming these days we can figure this out. i think they need a little bit

of pressure. stuart: it seems that the culture is shifting. wayne that long ago when we had people objecting to boiling lobsters alive. you still see that, that is still a problem. now it is foie gras. >> right. stuart: chickens in cages. the culture, you have to admit the culture is shifting, isn't it, towards animals and farms? >> i love being nice to animals. i think it is super, super important. where do we draw the line here? i've been to chicken farms down south where, you know, they have, they have them racked with rabbits. the rabbits are deaf indicating on the chickens. there are bad farming practices. you can't go banning everything. you ask people to change the practices. same thing with veal and caged chickens. you should know where the food is coming from and how it is raised. as an artist, a chef, i don't want to be told i have one less color to paint with.

stuart: chris, you have come back. you're a glutton for punishment. i hope your restaurant goes well, the steakhouse and the fine food restaurant. >> thank you kindly. stuart: we're digressing away from the dow industrials down 200. you can buy liquor from walmart. you don't have to go inside to pick it up. more delivery? lauren: you have to drive to the store. they bring it out to your car. this is curbside pickup by walmart for booze, for alcohol. in 2,000 stores across 29 states. it is grocery wars. but the issue, you want to be able to deliver everywhere. this is in 29 states. more than half the country. it gets confusing. when walmart can, starting to do this in some markets, california and florida being two of them, deliver alcohol to your door, that changes the game. stuart: big deal, pick it up. bought it, pay for it. drive by,. ashley: driving and liquor. what could go wrong? maybe better have it delivered? stuart: your last word there, ash.

ashley: all i'm saying. stuart: serious stuff. the house is about to vote on an impeachment procedure. basically voting to vote again later. what does it really do besides create political theater and red meat for the mainstream media? i will ask former georgia republican congressman jack kingston. he is on the show next. ♪. ♪ limu emu & doug hour 36 in the stakeout. as soon as the homeowners arrive, we'll inform them that liberty mutual customizes home insurance, so they'll only pay for what they need. your turn to keep watch, limu. wake me up if you see anything. [ snoring ] [ loud squawking and siren blaring ]

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we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... for a free kohler® nightlight toilet seat with in-home quote or visit kohlerwalkinbath.com for more info. stuart: news from the market. we come off the lows of the day but we are still down 190 points on the duh industrials. -- dow industrials. get back to the impeachment vote that starts very soon in the house of representatives, former new york congressman and cnn contributor jack kingston. we'll never let you forget you're a former cnn but we will. do you think democrats have the votes in the votes coming up? >> they have the votes. i would say it is suicidal. i was there during the clinton impeachment. you never want to do this on a partisan basis. that is exactly what they're doing.

stuart: do you think many republicans vote for it? >> i don't think a single one that defects. it is too unfair. the process doesn't give equal witnesses, equal access to information. equal ability to release transcripts. even equal ability to share time with members of the committee and it is in the wrong committee. it is going to the intel committee and not the judiciary committee. i don't see how any republican could vote for it. i don't see all the democrats will vote it despite their partisanship. stuart: what about the democrats elected last year in districts in 2016 that went heavily for president trump? i would have thought they're kind of vulnerable if they say yes on the impeachment procedure vote? >> there are 31 of them. they are absolutely vulnerable. i can tell you this, newt gingrich and henry hyde during the clinton impeachment hearings, they would always tamp down the partisans, those of us with very strong republican districts. we were marginalized. newt and henry hyde always made sure those who were in the swing

districts kind of led. he wanted to know how it was selling back in their districts. we already know that independent voters by 13% are against this. and so in the 17 states which we targeted, that have the 31 swing districts in it, independents, republicans, are all against this and 70% of them want us to go to health care and work on trade agreements an national security. so, i think speaker pelosi is driving her majority off the cliff. stuart: congressman, would you hold on for a second. i want to deal with the twitter announcement that they're going to ban paid political advertising. before we get back to you, congressman, i want to have ashley go through this? ashley: tell you what jack dorsey the ceo of twitter said. he said in a series of tweets in short, a political message he says, earns reach when people decide to follow account or retweet. when you pay for that tweet, you remove decision and highly

optimized an targeted political messages on people t wouldn't be credible for it to tell users it is dedicated to stop spread of misinformation and not target users of political ads. zuckerberg says there is free expression. dorsey says this is not free expression and about paying for reach and paying increase of political reach that has significant impact. stuart: congressman kingston, come back in for this please. what is your take on the twitter ban on paid political ads? >> i would say number one there is high suspicion among conservatives in washington that the high-tech companies, these so-called platforms are leaning and tilting towards whatever the liberal side of politics is. the question of twitter, are you a platform, are you an editorial page? if you're an editorial page you play by those rules. i think biggest thing we need is more competition for twitter and facebook. the whole clan of them right now because they are skewing things

in the direction they want to move in. stuart: it is very hard to get competition fortes book when they have -- for facebook when they have 2.5 billion active users. where do you come up with competition? it's a tough thing. >> you know what? fox news was not here 20 years ago. three networks dominated the airwaves. so it is possible. i think we're going to get there, gosh the pain in between now and then will be tremendous in terms of proper information and equal distribution of both sides. stuart: congressman kingston, thanks very much for joining us on a very important day. always appreciate it. >> thank you, sir. stuart: yes, sir. elizabeth warren admits her "medicare for all" plan could lead to the loss of two million jobs but she says, it is the cost of doing business, and a small price to pay in order to get health care for everyone. wyoming senator john barrasso, he is a former doctor. i think he is still a doctor of course, we will take his

temperature on this one. impeachment procedure vote happening on the floor next hour. right now they're holding a vote ahead of that vote. we'll have the vote for you when it happens. third hour of "varney & company" just ahead. don't want to miss it. imagine traveling hassle-free with your golf clubs.

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or the latest phones. no commission. no matter what you trade, at fidelity you'll pay no commission for online u.s. equity trades. stuart: you're about to see a vote on the impeachment process. i don't know how it will go and i don't know how many vulnerable moderate democrats will vote for it, but i do know that the congress is now consumed with an attempt to remove the president from office just a few months before a presidential election. i call it a gross waste of time. it simply demonstrates the left's undying hatred of this president. they will talk loftily about defending the constitution. of course we want to defend the constitution but throwing a president out because of a phone call simply doesn't cut it. the i don't know about you, but i voted for representatives who would get things done as well as

defend the constitution. so it was refreshing to hear speaker pelosi last hour say she is optimistic that the house is still on the path for yes on the all-important u.s. mexico canada trade agreement but when is it going to happen? because here comes a government shutdown. on november 21st, three weeks away, that's all, the money runs out. if there's no action by then, shutdown. how do you get a spending deal in a congress obsessed with impeachment? how do you get legislation on prescription drug prices in a congress obsessed with impeachment? all of these things in jeopardy because the left wants to overturn the presidential election of 2016. watch it unfold as the third hour of "varney & company" rolls on. stuart: the president just tweeting this. i'm reading, the impeachment

hoax is hurting our stock market, the do nothing democrats don't care. that's interesting. because as they were lining up for the vote or getting ready for the vote, the market did turn south quite dramatically. it's come back a little since then. but there are other negative factors out there today as well as maybe the impeachment vote. i want to break down the procedure we are going through here. greg jarrett is with us, fox news legal and political analyst and author of the great "new york times" bestselling book which is called -- >> "witch hunt." story of the greatest mass delusion in american political history. this is another mass delusion here. this is a charade. preordained. of course the vote will turn out the way we expect and probably the impeachment vote sometime later this year, early next year. stuart: take me through this. right now, they are lining up to vote on voting in the future. >> that's right. stuart: take me through it. what happens in the immediate

weeks ahead? >> all right. this is a vote to vote and then later, probably in about 20 minutes we will have the full vote and of course, all democrats, maybe a couple holdouts will vote to open formally the impeachment inquiry. then what happens is all the various committees that have already been pursuing impeachment with investigations, intelligence, oversight, foreign affairs, i think there's one other, they will put together all of their information, gathered unfairly and in violation of due process, give it to jerry nadler, the chairman of the judiciary committee, then he will begin drafting with his democrats the articles of impeachment. stuart: how much of this will we know about? will we know what the committees have said? will we know what -- >> no. a lot of the intel yens commlig committee that will be in the report is completely concealed from the american public, concealed from the white house, not allowed to be there.

this was done in the bowels of the basement, the public not allowed to see it. cross-examination by republicans truncated, not allowed to call their own witnesses. i mean, this is anathema to fundamental fairness and due process. it's really completely in violation of what the framers envisioned. stuart: okay. i want you to i can is stick ar the next hour. if something happens i want your expertise to tell us what is happening. ip not sure i can handle it myself. >> i'm sure you can. but i'm happy to help. stuart: thank you very much indeed. let's get to your money. check that, please. at one point we were down over 2ed h2 00 points. we have come back a little. now we are down minus 169. i want to concentrate on apple because frankly, we are going to call it a juggernaut. that's what it is. it's the stock of the day. they made a ton of money despite a drop in iphone sales and we

want to bring back in again dan ives, apple watcher supreme, back with us today. did i hear you say correctly on this program just the other day that apple eventually goes to $300 a share? did you say that? >> yeah. in our opinion, that's the next stop here. stuart: time frame being? >> the next six, nine months. given 5g phones and what you are seeing in china because ironically, despite the naysayers, china went 15%, 20% above expectation in iphone 11. i would be shocked if you don't see a stock with a 3 in front of it especially as you go into the 5g product cycle next year. stuart: there's an apple bull. all right. did i hear correctly that apple will introduce four new iphones next year? >> yeah. stuart: will they be 5g phones? >> our asia trip, taiwan and china, that's where we are showing you will have actually

four 5g phones come out in september. that's key because right now you have a 900 million iphone install base. you will have about a third upgrading in the next 12 to 18 months. 5g, when you look at apple right here, they really set themselves up in terms of a one-two punch in terms of super cycle. that's why the stock i think is going to continue to go higher despite some of the negative swirls on the u.s./china situation. stuart: it gets to 300 bucks a share, that's pretty close to $1.5 trillion in value, i think, roughly speaking. >> roughly. stuart: is it the best technology company in the world? >> in my opinion right here, the best two technology companies in the world. stuart: best two? >> apple number one, microsoft two. stuart: let's talk microsoft. why don't we. it's about $144 at the moment. did you say it's going to $170 early next year? >> 170. if you look what happened on friday night with jedi, that was the big bake-off between nadela

and redmond. that was big to lose jedi to microsoft. that shows in cloud that continues to be the core bet in terms of where they are taking this. stuart: did you see this coming? go back a few years when the iphone was just getting going and microsoft had just been taken over by nadella, did you see this kind of expansion coming, this coming brilliance in the market? >> our top two picks over the last year is microsoft and apple. there has been a lot of ups and downs through that but fundamentally i view it as an investor longer term. you want to invest in cloud, who's your pick? microsoft. in terms of what they are doing. in terms of smartphone, where you are in terms of the cycle, the install base, golden install base, go with cook and apple. that's why there's many naysayers, but these stocks will continue to re-rate higher in my

opinion. stuart: dan ives, thank you for coming on the show. dan ives, thank you very much. good man. thank you. let's check facebook. why not. a real profit machine despite a lot of political headwinds. it's facing antitrust investigations and all that kind of thing. that's made no difference to the company's financial performance and its stock is up another near five bucks this morning. facebook is at $193. compare that to twitter. taking a shot at facebook by not allowing any paid political ads on its site. they posted lackluster earnings last week, ad revenue is down because of bugs on the site. today the stock has dropped below $30 a share. $29.42 on twitter right now. other stories, we are watching them for you. elizabeth warren still hasn't said how she will pay for medicare for all, but we have a new study claiming it will cost

$34 trillion. senator john barrasso fired up about that and he's on the show coming up. any moment, the house will start to vote on the impeachment procedure. we are all over it. we will see what happens. on top of everything, it's halloween on this, the third hour of "varney & company." ♪ turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪

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at northwestern mutual, this is what our version of financial planning looks like. tomorrow is important, but she's only seven once. spend your life living. find an advisor at northwesternmutual.com. stuart: stocks off the low of the day and maybe this is why. the south china morning post reports that -- or says that negotiations between president trump and president sxi jinping are quote, going as planned. they continue to be in contact over phase one of the trade deal. mildly positive, i guess. now we are down just 160 as opposed to 240.

let me ask ash and liz, welcome to the show, liz, do you think this impeachment vote about to proceed, is that a negative for the market? liz: no. not in the long term. it isn't. you know, the china trade deal, china wants all the tariffs lifted before it buys $50 billion in u.s. farm goods which would be historic. we have never seen china buying that amount. stuart: that selloff is not the negative -- liz: no. ashley: not at all. it's been going on for awhile. i think the market are ignoring it and moving on. the trade headlines are moving the market. stuart: i want to bring in special guest senator john barrasso, republican of the great state of wyoming. senator, the speaker, pelosi, just said the passing of usmca will not be affected by impeachment. she's optimistic that they are on track for a yes vote. are you buying that? >> well, i don't buy much of what speaker pelosi has to say. it's important that she brings this to the floor for a vote. it's important for our country, certainly it's important to my folks home in wyoming and

certainly in the rocky mountain west. the agriculture community. we need this, it's an important agreement. it's time to get it done. the democrats have been delaying and stalling far too long. stuart: have you any doubt that if it reaches the senate, the senate will oppose and reject impeachment? >> well, impeachment, i have no doubt that the house along partisan lines is going to pass this proposal today but even if they do, it still doesn't have the sort of transparency, the sort of due process that one would expect so you look at what they're going to do today, i think the american public has a sense of fair play, and this isn't it. they are going to continue to meet in secret, in the shadows, in the cellar. the american people deserve better. if it comes to the senate, then you are kind of getting a little bit before this, they have to go through a number of things in the house, but i'm ready to go in the senate and act as a juror

and talk about the importance of the thing that, look, there's an election coming up. people are already electing the president. the house is obsessed with impeachment. they have been obsessed since before president trump even took office. you know that, stuart. i think they're just pushing this along. don't you think they looked at the 20 democrats running for president and saying we can't beat president trump, we need to come up with an alternative and that's the alternative, trying to overthrow the results of the election from 2016. stuart: okay, look, i think it's a gross waste of time but that's just my personal opinion. senator, i just want to change the subject for a second because senator warren, elizabeth warren, she's admitted that medicare for all could be resulting in two million lost jobs. as a doctor, formerly a practicing doctor, still a doctor now, what do you make of that? >> she's come out on all different sides of the proposal. first she says she's with bernie.

bernie says it's going to bring new jobs. she won't say how she's going to pay for it. bernie said he's going to raise taxes on the middle class if you make more than $29,000 a year you are going to pay more in taxes. look, medicare for all, i believe is a loser for the american people. the total cost as you know is more than the total cost right now of medicare, social security and medicaid combined. it would bankrupt us as a country. they provide health insurance for illegal immigrants but take it away from 180 million people who get health insurance through work. so people will pay more to wait longer, for worse care, and i put it this way. bernie sanders is going to take your wallet and tell you you're going to do it. elizabeth warren, she's trying to pick your pocket and hope you won't notice. stuart: that was good. senator john barrasso, thank you very much for joining us, sir. appreciate it on a very big day. >> thanks for having me. stuart: yes, sir. got it. okay. now let's have a look at the market again, please. we are still down.

kraft heinz, nice gain in profits there. whoa, that helps. the can sto stock is up 11%. there are a lot of big movers today, big names that are moving sharply higher. we have gone through apple, facebook and starbucks. all of them big performers. all of them big names. the overall market, that's still down right now about 180 points. .66%. we think we know why, as we reported moments ago. what did we say? liz: well, it's bouncing off the lows because there could be a china trade deal. both sides are positive. it's the chicago pmi, the manufacturing number, didn't come in so strong for that region. that could be the gm, right, gm labor strike. we don't know. stuart: yes. the report we got from the south china morning post was xi and trump still talking and that apparently is good news but it's not had that significant an effect on the market. we are still down right around the 27,000 mark. any moment now, the house

will start its impeachment process vote. the markets right now remain down. not sure the impeachment process is a factor in the market selloff but we're on it. "varney & company," third hour, rolls on. ♪ of a different kind. adp helps canyon ranch place the right people in the right jobs, so employees like dave can achieve what they're working for.

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cut. we'll dub it. liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ stuart: on the floor of the house of representatives, the representatives are being gavelled to order and the vote on the impeachment process is going to begin. we will mark the dow industrials at a minus 188 just as this vote starts to get under way. when the voting actually begins, we will show you the voting board and we will show you how many votes are needed and how many votes they've got. the speaker has left the podium. i believe they are going to start voting now. my colleague greg jarrett is with us. he wrote the book on this impeachment process. i want to know something. i have heard a lot about these witnesses who keep saying yes, he's done terrible things. are we dealing here in facts or what? >> no. you're dealing with opinion.

all of the witnesses called so far are not fact witnesses, they are opinion witnesses offering their interpretation of a conversation they weren't a party to. in one case, lieutenant colonel vindman listened to the conversation, then said well, i think it's improper. that's an opinion. the only facts are contained in the transcript itself, in the statements of the two participants, zelensky and trump. there is no quid pro quo, no demand, no condition, no pressure. zelensky said i felt no pressure. it was a normal conversation. it turns out they didn't even know until five weeks after the conversation that there was a quid in the pro. this is absurd. liz: this is the issue. what law did the president break? tom brokaw, anchor, has said they have not -- the democrats

have not delivered the goods yet to the american people with clarity, what law did he break. so we also know that yes, the house gets to set its own rules on how to conduct this, but it's been doing impeachment by leak, trying to move the needle on public opinion. "new york times," upshot and siena college survey show 52% still oppose in six battleground states, oppose impeaching the president right now. >> let me add one other thing. the criminal division of the department of justice looked carefully at the official record of this conversation and said there's no crime here. that was a unanimous decision not by political appointees, career prosecutors at the doj. so what are we left with? i mean, truly, you hear nancy pelosi today say oh, democracy is atutter nonsense. are we going to impeach a president because he said to the ukrainian president, gee, please look into corruption. stuart: are we going to throw him out of office for that.

look at the screen now, left-hand side. that's the voting board. the magic number we believe, it depends on how many members are present in the chamber, but we believe the magic number where the resolution is approved is 217. as you can see, on the far left column, the yes column, they are now at 210. they are rapidly approaching the 217 mark which would mean the house has said yes on moving forward with the impeachment process. liz: look at that. two democrats, the producer just pointed out, new jersey congressman an think another congressman, the democrat from minnesota opposed. stuart: jeff van drew from new jersey -- ashley: they say no. stuart: two moderate democrats said don't do it. >> they are sort of from red districts that flipped blue. so you know, they are in trouble. stuart: 217. they just hit that number. they have the votes to pass the measure. so the impeachment process moves

forward. ashley: there you go. stuart: we can definitively say that from this vote as we speak. now, when this vote started literally two or three minutes ago, the dow was down 188. okay. they voted yes. the procedure will move forward and now they are down, the dow, 180 points. no impact from this vote on the market. the market is actually responding to other factors like a decline in the manufacturing sector around chicago. trade headlines early this morning, we heard from china, they are doubtful that a long-term trade deal with america can be accomplished any time soon. we had some positive ideas coming in from the president. he said president xi and himself will be signing a trade deal, the phase one deal. that did not affect the market at all. we are still down. right now, off 193 points. greg jarrett, you know this stuff better than i do. now they have said yes, now what happens? now what do they do? >> well, it goes to the various

committees, especially intelligence, that will conduct their investigations but you know, once again, their process they have just approved a moment ago is completely unfair. for example, republicans are not allowed to call witnesses unless they first get permission of democrats. i mean, if i was trying a case and i had to get the prosecutor's permission can i call a witness, please, sir, they would of course always say no. how is that fair? it's not. stuart: the hearings within the intelligence committee, will they be held in secret? >> no, from now on they probably will be held in public. but you know, it's unclear, you know, whether every committee chairman may invoke oh, classified status and go behind closed doors. and the other charade here is oh, were we going to release the

transcripts. no, read carefully, it says we will enable the release of transcripts but only if guys like schiff approve. you know, they are probably not going to do it. >> think about this. most people that will be voting eventually for impeachment will never be allowed to see all of the witnesses, especially those that have taken place in the last 30 days, to judge their credibility, to see the full cross-examination of them. that will all be hidden from them and they will be voting on impeachment. this is ludicrous. stuart: outrageous. liz: i understand the house is allowed to set its own rules. 100 lawmakers including republicans were in on those hearings. so that's now the court of public opinion. will the court of public opinion the voters see that the democrats can also veto the president and his attorneys if they try to bring in additional evidence or witnesses, they can -- the democrats can now refuse that. stuart: okay, but look, it is halloween and on halloween, we

have the house vote to proceed with the impeachment process. ashley: set the ground rules. stuart: look at that board. pay close attention to that board. it's entirely political. democrats almost entirely in lockstep voting yes. republicans absolutely voting no. >> in the last two impeachment proceedings, nixon and clinton, there was bipartisan support and the rules were fair. they didn't have to get permission to call a witness. stuart: let's listen to speaker pelosi, please. >> the motion to reconsider is laid upon the table. stuart: that is the official recognition that it passed. they have the votes. the voting time is up. i think the final tally was 220 something that they said yes. that beats the magic number which i think was 217. the resolution has passed. now it's onward and upward. again, you've got to say this.

that was entirely political. almost unanimously voting -- >> senator john kennedy said it best when he said this is a freak show on halloween. it absolutely is. it rests squarely in the hands of people like pelosi and schiff and nadler, who had no intention of being fair. you know, when nancy pelosi said about an hour ago oh, gee, this is solemn and serious, prayerful, and nobody comes to congress to impeach the president, are you kidding. do you know how many democrats a year ago ran on the promise they would impeach the president. so she's the queen of prevarication and deception along with adam schiff. stuart: okay. what we're looking at is yes on the impeachment process. the dow industrials barely budged. we were down 188 when the motion started, when the voting started. the voting said yes and we are down 173.

my interpretation is that the impeachment vote, you want to put it like that, has no impact on the market whatsoever. right now, we are down 171. let's stay on your money. let's stay on the market. come in, mark grant, our top bond guy. mark, okay, it's halloween. inject a moment of levity into the proceedings, please. do you think that this impeachment vote has anything to do with the stock market? let's start there. >> stuart, i have a little different viewpoint than you do. i think the market hasn't moved with the passage of the impeachment resolution because everybody expected it to pass. i think everybody expected it to pass. the big issue now is, i call it polonomics, what the politics of what this impeachment process is going to do to the markets moving forward, depending upon what's found or not found.

so not only do we have to deal with economics going forward for both the bond and the equity markets, we have to deal with whatever political disclosures come out over the next while. stuart: can you explain why the yield on the ten-year treasury went from 1.83% yesterday to 1.70% today, or thereabouts? what's going on with that? >> a lot of that was caused by chairman powell, basically what he said was here we're cutting a quarter of a point which was widely expected, but he went on to say, which is the critical part, that there's not going to be any raise in interest rates unless they see some significant move in inflation which i don't foresee forthcoming, and consequently, with the ecb and by the way, i saw you on earlier and i congratulate you for bringing that in as part of the discussion, continuing with their quantitative easing program, with the fed now buying short-term treasury bills and

also increasing the size of their balance sheet, we're looking at relatively low yields for a long period of time, in my opinion, and i call it the borrower's paradise. stuart: okay. i want to refer to what germany and japan are doing, literally today. i saw germany's negative interest rates move further into negative territory and i understand that japan is going to go for another round of either printing money or whatever it is that they do to get interest rates, already negative, even further into negative territory. that's simply extraordinary. >> yes. stuart, never in the history of mankind have we seen $17 trillion in negative rates. it's just unbelievable. i mean, really unbelievable. they keep up with this so the japanese central bank has assets, liabilities and assets

more than the entire gdp of japan. our view is that the european union, they can't afford their budgets of their countries, they don't want to raise taxes, they don't want to sell assets, so they go to the ecb, they have them make this pixie dust money for nothing, then they take the pixie dust money and buy their bonds and corporate bonds and sovereign debt and so for the first time ever, governments are going to have to borrow money and people are paying them for the privilege of lending them the money. it's just unreal. stuart: you are the first guy to point this out to us, the significance of these negative interest rates. now, this morning, just an hour or so ago, the president tweeted and said look, he thinks the fed is a bigger problem than china. what do you say to that? >> you know, i see the fed in the first place r, they've got long history in how they deal with these kinds of situations. i think they are moving away

from it but i think it's difficult for them. i think the fed could combat japan, switzerland, and the entire european union, need to move rates down some more but not go into negative rates. i think the positive side is this is good for the united states government. we borrow with less interest rates, it's good for a lot of corporations. it's horrible, however, i should point this out, for savers, retirees, pension funds. it makes it very tough. insurance companies, i can tell you, i do business with a lot of them, they are having a very difficult time trying to come up with yields. we're creating a big dichotomy here. stuart: yes, we are. mark grant, appearing live on halloween, we wish you luck with your trick-or-treating adventure tonight. we will be seeing you real soon. mark grant, everyone. thanks very much indeed. okay. is that a magic wand? >> my magic wand. stuart: yeah. right.

>> if somebody is disrespectful to you, i'm going to turn them into a green warted frog. stuart: good man. mark, thanks very much. see you later. by the way, the president had several tweets this morning including this one moments ago. the impeachment hoax is hurting our stock market. the do nothing democrats don't care. all right. market watcher heather zumarraga joins us now. heather, come in, please. i don't think the impeachment move that we have seen today has affected the markets. am i right or wrong or what? >> i think you're right. the markets are down because look, we just hit all-time highs yesterday. i should have been on the show yesterday. you know i love coming when the markets are hitting all time highs but they are taking a breather right now. the federal reserve signaling that they are no longer going to cut interest rates anymore and i think that's a positive. but look, i think markets are taking a little bit of a breather. i don't think that the impeachment -- stuart: is it a temporary, a short-term breather? because i see profits real

strong, i see the fed doing what investors want the fed to do. i see the economy is still growing at the best part of 2%. it seems like the economy is performing very well and that would imply the market moves up again after this little pause is over. you with that? >> it absolutely does, it really does. the consumer is the backbone of the u.s. economy right now. fed chair powell hinting that despite global weakness, u.s. wages are going up, unemployment at 50-year lows, wages for blue collar and lower income americans which matters the most, that is still rising. it is a goldilocks economy because of all of these positives in the u.s. economy. we still don't have inflation overheating above the 2% target meaning they don't have to increase rates either. the markets are in perfect position right now, poised to head higher. look at earnings. earnings have been great overall. stuart: look at facebook and apple as well. for the moment, let's talk

coffee for a second. dunkin, starbucks, they posted solid earnings this week. sales are up across the board. doesn't this speak to the strength of the consumer? >> oh, it absolutely does. i think a perfect example may be is between also target or versace in terms of if you are cost conscious, value oriented consumer, you go to dunkin donuts to get your coffee in the morning. both starbucks and dunkin donuts posted beats on earnings. dunkin was a little light on their sales but starbucks interestingly is doing well in china, 5% same store sales growth in china despite the potential trade war. but i did see a women's health magazine, i know it's halloween so there are all these fancy drinks at starbucks but the pumpkin spice latte is one of the most unhealthy things you can possibly drink. you might want to stay away from that even though it's halloween. stuart: the spiced pumpkin --

>> yes, pumpkin spiced frappacino was the most unhealthiest drink at starbucks. stuart: how much is one of those drinks? i can't repeat it. how much? >> you know, i don't know. it's got to be at least $6 or $7 because i know that's the average of what you pay when you go there and because this is a special halloween trick-or-treat drink, i don't know, maybe i will go buy one later for someone else. i don't know that i will drink it myself. maybe a soda or moonshine might be healthier than what you are buying at starbucks. look, the lines are out the door. it's on every corner. the consumer is strong and on halloween, hey, go ahead. have a treat. stuart: heather zumarraga in the right place at the right time. thanks very much for joining us. happy halloween to you. >> you got it. stuart: house passed, the house did pass the impeachment inquiry motion. next, congressman barry lowdermilk was in that vote. we will talk to him. we are getting reaction from

the white house. we will tell you what they've got to say in just a moment. ♪

stuart: we are getting the white house response to the yes on the impeachment process vote. what is it saying? ashley: they say democrats have done nothing more than enshrine unacceptable violations of due process into house rules. which is exactly what greg jarrett just said as the vote was going through. stuart: why don't you repeat it so we can speak in plain english. >> the u.s. supreme court has said due process applies to congressional investigations. that includes impeachment inquiries. so far, this has been the antithesis of due process. you're not allowed to challenge witnesses, you're not allowed to call your witnesses, the public is not allowed to see it.

it's all done in secret. we are supposed to accept the impeachment of the president based on evidence we are not getting the proper opportunity to see teased by hope out of ignorance, we are supposed to take it as scripture upon faith. stuart: okay. ashley: isn't there supposed to be a public phase? will there be a little bit of sunlight on this? >> there will be some but republicans are handcuffed in calling their own witnesses. they are not making up the rules. liz: a federal judge has supported the house setting its own rules. i hear what greg is saying. we are on historic ground. we are about to try to undo a 2016 election going into an election. we have never been here before in this country. stuart: are there different rules for the house of representatives legally speaking and the regular court system legally speaking? liz: the senate can set its own rules, by the way, when it goes to trial. so in the benghazi hearings, there were -- stuart: i'm talking about the house. liz: there was secret testimony in the house.

stuart: i'm talking about the house. >> they can do anything they really want but again, the supreme court has said congressional investigations have to have due process. so the question is, can somebody bring a writ to say you are violating supreme court decision on due process here. i don't know. we will wait and see. stuart: we shall indeed. i want to bring in congressman barry loud eeloudermilk, georgi republican. you were in the vote, obviously. you are a house member. it seemed to us watching that it was almost entirely along political lines. i think only two democrats said no and every republican said no. >> that's right. i mean, this is to me one of the saddest days in the history of congress. i mean, this is the epitome of hypocrisy to listen to the democrats on the floor today talking about the founders, talking about the constitution, when as you have just brought up, this resolution, this

process, violates the very tenets of what they founded this nation on. this is totally one-sided. this is simply the democrats who predetermined three years ago they were going to impeach this president. they just needed to figure out why. mueller report didn't work out. everything did not work out. in fact, they were embarrassed when it was held in public. that's when hethey decided we wl take it behind closed doors underground in the basement of this building. i'm on financial services, that was named as an impeachment committee. i can't even get the transcripts of volker who supposedly, according to our folks on the committee, totally exonerated the president of anything. yet "the washington post" gets hold of taylor, ambassador taylor's transcripts? come on. they are selectively leaking what they want the narrative to be. it isn't about justice. it's about undoing what the american people said they wanted because the democrats don't trust the american people to make the decisions that they want. stuart: well, is anything going to get done in congress bearing in mind this obsession with

impeachment, which is moving forward, and i specifically want to know about usmca. speaker pelosi said they are on track for a yes vote. you are on the financial services committee, i think. tell us about will anything get done with a spending plan? you've only got until november 21st before the money runs out. >> i don't see that we are going to get anything accomplished until they actually get their impeachment vote. i think that's the track that we're on. they are going to vote to impeach this president. they don't want anything to get in the way. they don't even want the truth to get in the way. they don't want the americans to know the truth. that's why they're using this process. there will be an impeachment vote. once they impeach the president it goes over to the senate i think they will pass the usmca. but the problem is why haven't we done it already. why haven't we passed spending bills. why have we not reauthorized the military which expired back in september. we can't even get the ndaa done and that's probably the most important thing that congress does, is because they want desperately to impeach this president. they have been looking for a reason. they thought they had found it

with ukraine and ironically, to have a quid pro quo you got to have a quo and the president of ukraine, the supposed victim of this crime, said there was no pressure. he said there was no quid pro quo. so how do you impeach somebody, in fact, there's laws that have been passed in 2014 and three times in the ndaa that requires the president to ensure that ukraine is rooting out the corruption before we send them any money. so ironically, if they do impeach this president over ukraine, they are impeaching him for obeying a law the majority of the democrats passed. stuart: you must have been in touch with your constituents in georgia. can you just give a consensus about how they are feeling on this? >> look, you know, the majority of the people i talk to, republican, independent, even some democrats, have told me will you please just get off this impeachment, let the american people decide who they want president, and get to work doing something about the cost of drug prices, the cost of

health care, immigration is still the number one issue in georgia and in my district. people care about the crime that's going on on the southern border. but no one's dealing with it up here because 100% of our time is being focused on this sham impeachment. stuart: so what are you going to be doing for the next two or three months? >> well, even in financial services, is one of the six committees that are named. historically it's always been just judiciary committee. thistime it's not judiciary, it's intelligence for some reason that's going to be handling the procedures. then we have also named these other committees including financial services which is basically document gathering committees. they just empowered us so we can go out and subpoena for all these documents. in fact, financial services committee subpoenaed deutsche bank for trying to get the president's tax records, but after like 1.2 million pages of documents were given, to the financial services committee, there was nothing they could use. deutsche bank didn't even have

the president's tax records. so this is the type of thing that we will probably be doing, more subpoenas that people like myself and other republicans will be left out of and we will hear about it after the fact. stuart: congressman, thanks for joining us, sir. very important day. we are glad you're with us. thank you. >> thank you. stuart: i do have to turn to my colleague greg jarrett. you know, i can't follow all these legalisms and i'm getting -- we've got to go to a break. then i will talk to my colleague about lawyers after this. ♪ so. what's on your mind? we are a 97-year-old firm built for right now. edward jones. it's time for investing to feel individual.

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stuart: i believe this is unusual. speaker pelosi actually cast a vote in the impeachment process voting. ashley: very unusual. prior to that, she said when a sad and solemn day this is, none of us come to congress and expect to be voting to impeach the president of the united states but she added her vote in for good measure. didn't have to, but she did. stuart: early this morning she says it's a sad day, we don't really want to do this, don't come to congress to impeach, now she actually joins the vote. liz: this is just rhetoric right now from nancy pelosi. forgive me, but it is. remember when the republican baseball practice game shooting, she said the country must unite in unity, immediately, within a week or so, went on the attack. the daily news opinion page in march 2016 said impeach trump.

the trump supporters are feeling like he's being railroaded into impeachment. the ukraine matter is serious. the public should be allowed to see what the democrats are finding in this. these are serious accusations. i will say this, it's led by adam schiff, house intel chair who misled on the trump russia collusion story, who misled on the whistleblower contact with his committee and who was criticized for his parody of the trump/ju cra trum trump/ukraine phone call. stuart: round this out for us. do you believe serious damage is being done to america by this impeachment process? >> yes. we were talking during the break. what foreign leader wants to talk to the president of the united states knowing there are whistleblowers spying on the president who will then file complaints, even though they are not privy to the information alleging wrongdoing for seeing the release of the transcript of the conversation. it's very telling that nancy pelosi actually opened the impeachment inquiry without a vote before she even saw the

transcript, before it was released. that means evidence began off with his head. they have been looking for an excuse to reverse the election results since 2016. several attempts, emoluments, the firing of comey, the mueller report, never worked and time was running out so okay, let's go with this. stuart: how do you get -- i think china's looking at this. >> of course. stuart: china sees our president is being impeached. the impeachment process has started. doesn't that give them leverage? ashley: of course it does. he's the president. of course it does. it's undermining him. they would love to stand in the wings and watch this thing unfold. it hurts our position in critical trade -- stuart: sorry to interrupt you. we have to take a commercial break. got to make money somehow. more "varney" after this. ♪ ♪

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stuart: i want to take a moment for my colleague gregg jarrett sticking with us throughout the last hour of the show and mention again his book, "witch-hunt," the story of the greatest mass delusion in american political history. "new york times" bet seller list? >> number three "new york times." stuart: selling well? >> i think it is doing well when you make the list. i hope people read it. it really tells but the original witch-hunt. now this is the sequel witch-hunt. stuart: you will see this thing through. they started this process. it ain't going to be over anytime soon. >> you're right about that. stuart: got it. gregg jarrett. stuart: big check on the market. we've been holding all this the morning i should say. when the impeachment process vote started, the dow was down

188. when the impeachment process vote said yes, we were down 180. now 20 minutes later we're down 164. i don't think impeachment had that big of an impact on the market. more like trade did it i. neil it is yours. neil: thank you very much, stuart. happy halloween, everyone. ♪. that is scary music because this phase one trade deal, phase one maybe not done. china pulling a michael myers on halloween, spooking markets, taking a hatchet to the hopes of a long-term trade deal. weak manufacturing data that added to the terrorizing fears. are they justified? [laughter]. we'll