welcome back. we've got final thoughts real quick. anybody? dagen? >> my prayers go out to the folks in haiti right now. they are living in very extreme conditions. i mean, people are being chopped up in the streets and they have no food. god bless them. maria: thank you for that. have a great day, everybody. thanks for joining us. "varney & company" begins right now. stu, take it away. stuart: good morning, maria. good morning, everyone. headline, the market will likely open at new record highs again. we will get to that in just a moment. okay. we are going to start with the election results. here we go. first off, kentucky. the democrats claim victory in the governor's race but the republican governor bevin has not conceded. a last minute rally by the president did help republicans win five of six races in kentucky, including the election of kentucky's first black attorney general. he is a republican. in virginia, the democrats have taken full control of the state legislature. new gun control measures are now expected there. perhaps more relevant to all of us, airbnb lost in jersey city,

new jersey. a local initiative put restrictions on short-term rentals. airbnb spent $4 million opposing this initiative and they lost. expect similar ballot measures to pop up elsewhere. in seattle, it looks like amazon lost its bid to change the nature of the city council. the hard left socialists still run the city. they do not care for amazon. in a moment, we are going to ask what impact yesterday's vote will have on the 2020 election which is just one year away. as for the market, let's get back to that. we are going to open higher. all three of the averages. dow is up about 30. that would be a new all-time high. the s&p is up about three. the nasdaq, yes, again, an all-time high if it opens with a nine-point gain as it looks like it will. you better take a look at uber. this is the day when early investors can sell their shares if they wish. the stock is down 5.5%

premarket. this company went public in may of this year at $45 a share. as of now, it's down to below $27. $26.49 right now. it has not been a great year to go public. uber, lyft, pinterest, smile direct, peloton, they are all below their initial offering price. but the markets overall, setting record highs. let's get on with it. "varney & company" is about to begin. stuart: president trump tweeting on the stock market this morning. i'm quoting now, stock markets, all three, hit another all-time high, an historic high yesterday. you are so lucky to have me as your president. spend your money well. okay. that's the president weighing in on the market first thing this morning. we are going to get to the elections. democrats take control in

virginia and claim a narrow victory in the kentucky governor's race. incumbent matt bevin has not conceded the governorship in kentucky, not yet at this point. joining us, liz peek and charles hurt. liz, overall, looking at all these results from yesterday, what impact will portend for the 2020 election? >> i think what we saw was that president trump's appeal to his base is still very very strong. he basically brought the republican governor candidate bevin in kentucky to even with his rival. the race is still being contested, in fact. and that was from a huge deficit earlier in the summer so he definitely with a last minute rally helped bevin catch up, if you will. in mississippi, he also had an impact. i think what we saw, though, also is a continuum of the 2018 midterm elections. women in the suburbs probably

was a very big deal in virginia taking democrats taking the legislatures, both houses of legislatures in virginia. so i think it's sort of a mixed message. i think for the president, let's be honest, if he had won, if bevin had won in kentucky, president trump would be taking a victory lap because he really put himself on the line to try and sway that vote. he did sway the vote. it just wasn't quite enough. however, in kentucky, which is i think what we will be talking mostly about today, every other republican won. so this was the country's either most unpopular governor or in the top five. so he was a terrible candidate and i think that's what republicans will probably respond with. stuart: charles, come into this. the same question. what do you see in yesterday's results that portend for 2020? >> well, my first caution is always about reading too much into not only midterm elections but off-year midterm elections where turnout is historically low.

that said, i think it is very important for republicans to take account of the enthusiasm among anti-trump democrats who in places like virginia, they are very energized and republicans need to go into next year's elections fully aware of how enthusiastic the opposition is, and they need to fight every inch of the way. however, what i would say is the biggest thing out of yesterday's election, andy beshear, a popular sort of machine politician in kentucky, he squeaked by, he squeaked by in kentucky by campaigning on kitchen table issues. you know who's not campaigning right now on kitchen table issues? any of the democrats running for president right now. andy beshear didn't win that election by promising free health care for illegal aliens or for medicare for all, taking away people's health insurance. that's not what andy beshear

campaigned on. if andy beshear were running for president on the platform that he squeaked by on in kentucky, he would be laughed off the debate stage. so to me, the biggest warning out of all of this yesterday is democrats should be really scratching their heads and wondering are we going the right way by talking about all this crazy stuff because it won't sell in kentucky, it won't sell anywhere in america and they are going to lose if that winds up being their -- the platform we are hearing from right now from democrats winds up being the platform they run in 2020 on. stuart: stay there, please. more for you later. i want to talk about airbnb because voters in jersey city, new jersey put restrictions on airbnb rentals. quite severe restrictions. liz, this crackdown, i will call it a crackdown, they spent heavily to avoid it but they lost. i think it could spread elsewhere in the country. i think airbnb is in trouble here. >> not just airbnb.

this is another attack on the gig economy. we have seen this in california where they tried to limit change employer restrictions to really get rid of lyft and uber and in new york, we have had attacks on airbnb for some time. it's about restricting personal freedom but it's also in support of unions, hotel workers unions in particular. i think it's actually a terrible outcome. i do understand in jersey city there were some particular issues about people fearing the house next door would become this big party house or something, because it could be rented out and i think that's a valid issue. it's certainly a valid issue in new york, or places where you talk about renting out apartments because that's really close by. but i think in general, democrats have really sort of decided that the so-called gig economy doesn't work for them because it doesn't generate union workers and union fees and so they are out to suppress it. i've got to tell you, i think it's like rolling the clock backwards. i don't think that works. stuart: i've got two items on this i want to tell you about. first of all, the mayor of

jersey city will be on this program a little later. on your screens now, airbnb's statement. i will read it for you. it's -- this is part of the statement -- it's unfortunate to see the hotel-backed special interests run a campaign that moves jersey city in a different direction. we will have a lot more on this throughout today's program. it's a big deal. japan's softbanc taking a big, a huge loss on its investment in wework. how much, susan? susan: $4.7 billion. that's how much they lost on wework. uber, by the way, one of the early investors in uber as well. and softbanc will lose about $3.5 billion on his uber stake. and slack, it hasn't been a great year for ipos and softbanc's investment in some of these unicorns, they will lose $350 billion there as well. don't cry for him. he's still worth about $13 billion. his worth is down some 30% since

july but he has made some bad investments. even he says my own investment judgment was really bad. i really regret this in terms of his investment in wework. stuart: i don't feel sorry for the guy. he's worth $13 billion but he's in a difficult position. he has to keep attracting capital for -- susan: the vision fund. it's $100 billion. stuart: how do you attract that kind of money if you make mistakes like that? susan: you have saudi arabia which is contributing most of that $100 billion, because they are looking for returns outside of the country. but more importantly, he's been seen as a visionary since he turned $100 million investment in alibaba into $100 billion, that's probably his biggest fortune, is that he's pledged a lot of his personal wealth for loans against 19 banks. that's a big problem right now. stuart: it sure is. susan, thank you very much. look at uber, please. that stock is down about 40% since it went public in may of this year. today, early investors can sell their shares if they wish.

what more do we have? ashley: the lockup period ends today, so that means an estimated 763 million shares will be available for trade. that's about $20 billion worth of uber stock. so could this lead to a big selloff? possibly, yes. that's what some analysts are saying. just because the lockup period expires doesn't mean the stocks that recently ipo'ed are going to take a dive. looking at recent performances, tencent went up nearly 5%. levi, nearly 2%. we will see. stuart: i would like to see how that stock closes today. ashley: yeah. beyond meat lost 18% on its lockup period. stuart: thank you, ashley. the owner of the popular dating app tinder feeling the heat from the competition. match, the parent company, gave a weak forecast. match is down 12%. better sales at the burger chain red robin.

♪ red robin i'm very sorry. it just came at me. it's a jingle. i kind of like it. they lost money, down 3%. restaurant chain wendy's reported higher sales in north america. that's good enough for a 4% gain for the stock. 21 bucks on wendy's. overall, this market will open higher, 30 up for the dow, 3 for the s&p, 5 for the nasdaq. next case. a successful trial test in new york city, dunkin's beyond meat sandwich now going national. ashley: that's pretty. stuart: ashley tried it earlier this morning. eating on camera. what a strange thing. we will tell you more about this in just a little while. never eat on camera. tik tok scrutinized on capitol hill. it's a chinese-owned app and it's being investigated for

national security concerns. we are going to tell you what those concerns are. president trump calls for war against mexican drug cartel monsters as he puts it after the brutal killing of an american family caught in the cross-fire in mexico. where does that leave our border policy? more "varney" after this. - did you know that americans that bought gold in 2005

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stuart: profit up 10% at cvs. they got a boost from their aetna health insurance business which they bought last year. the stock is up nearly 3%. more money coming over the transom at the health insurer humana. that's up 2.25%. kroger and true car, they are partnering to launch a car buying program. kroger, though, down just a fraction, three cents on that. in fact, it's not affecting the stock. now this. president trump calling for a war against mexico's drug cartels after the brutal killing of nine americans on monday. charles hurt, come back in, please. i want to know what impact this

has on our border policy, if any. go. >> well, i think with this president, it ought to have considerable impact on our border policy. i mean, this is an astonishing story to read what happened to those families down there is just staggering and whether we like it or not, we may not want to be at war with drug cartels in mexico. they are at war with us. it underscores one of the strongest things about president trump and that is he asks questions like why are we involved in a civil war in syria, why are we enforcing syria's borders when we are not even enforcing our own borders along the south. it raises really important questions. we get involved in all of these things all over the world that have very little impact or direct impact on us. this is something that has a very very direct impact on us. this is a country that is falling apart directly to our

south, pouring huge amounts of horrendous deadly drugs into our country and i think it's an important question. he could get -- stuart: if you make the assumption the mexican government doesn't actually control all of mexico, do we have leverage on the mexican government? do we have leverage if they can't control their own country, what leverage do we have? >> well, i think the president has shown that he, you know, in terms of getting the mexican government to help us with the effort to stop the flow of illegals coming into their country, which of course then slows the flow of illegals coming into our country, he's proven that he does have leverage over the mexican government, but you are right. i mean, mexico is bordering on a failed state. the other thing i don't understand is why this isn't something that is covered by the quote unquote, mainstream media wall to wall. this is a real dangerous

situation and you're right, i don't think the mexican government can do it alone and based on what president trump tweeted out, it suggests that he would be more than happy to help figure out a way to do it, whether that involved u.s. troops or u.s. intel, whatever. and i think that he could probably make the case to the american people and make a case that american people would probably like. stuart: that would be serious stuff, charles. i've got to end it there but that indeed is serious stuff. see you again real soon. thank you, sir. all right. it's wednesday morning. we are going to open this market in just a few minutes and we are going to go up. let me tell you also about airbnb. going to tell you again, this is a big deal. they were dealt a big blow by voters in jersey city. jersey city's mayor will be joining us with his reaction to this later on our program today. roku, they make the streaming boxes. they report after the bell. next, we have an analyst who says roku is the most promising

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calendar year, 2019. come on in, roku analyst beth kindig. i know you think this stock is going up some more so i want two things. how high is it going and why is it going up some more? tell us, please. >> i have been long roku since its ipo. i covered it from 30 to 60 to 30 back to 100. it's a very choppy stock. the reason why, though, it's been so promising is because it capitalizes on an explosive trend called connected tv ads. the reason why it's so explosive is that for the first time, television advertisers have been able to use data to reach television audiences. the market and investors are very aware that data is powering nearly every industry. television advertisers have not been able to access data in order to target audiences until basically two years ago with roku's platform. stuart: so it's right now at about $140 a share, roughly speaking. where is it going to? >> it's going to keep going up, again, very choppy stock.

there will be some pull-backs but very promising area, because of how big of an opportunity connected tv ads is. there's a supply and demand bottleneck. you can go well over 250 on roku. stuart: whoa. never bury the stuff at the end of the interview. put it right up front. that's how you grab the viewers. it could go north of $250 a share, what, in a year or two? >> it will go north of $250. it will keep going up because it's centered in a perfect trend right now. you don't want to bet against a tech company that's meeting demand through their technology. they own the entire tech sector in ott. it's important to get behind. stuart: we got it. north of 250. we like what we hear. thank you very much indeed for being with us. thank you. next one. the nba. they are launching a streaming service. lauren simonetti, what's it all about? lauren: $7 a month, that's very

affordable. a lot of people still pay for expensive cable pay tv bills so they can watch live sports as they wish. this gets you almost everything. lots of games, lots of special shows, for $7 a month. a lot of folks looking to cut the cord. they say that's it. stuart: i don't need cable tv to get the nba streaming service. i can do it online? just get it just like that? lauren: just like that. add that to all the other little bills you pay for netflix, disney plus coming next week, apple tv. all in. stuart: nba streaming online. short, sharp, to the point. not bad. the futures market shows a gain at the opening bell this wednesday morning. we will be back to cover it after this.

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nine young grandchildren -- ashley: i was going to say. stuart: has occasion to watch animated films. susan: that actually goes to theaters to watch it? stuart: i didn't say that. susan: there you go. stuart: i just don't like paying the price of a large soda. it's 9:30 eastern time. it is wednesday morning. we are off and running. check that big board. check the dow 30. when some of them open they will either turn red or green. there you go. we are up an equal number of winners and losers and a narrow win in the very early going for the dow 30. we are up 11 points on the dow industrials. show me, please, the s&p 500. that is up a tiny fraction fraction, .03%. call that flat. the nasdaq composite, is that up? if it's up we've got -- no, it's down. a ten-point loss for that. that's just a fraction of 1%. big stock to watch today is uber. premarket, they were down. the market's opened and now they are down some more. they are off 8%, $25 a share.

please remember, this is the day when early investors, if they wish, can sell their stock. it looks like a lot of them are. volume, 26 million down 8.5% in 60 seconds. stock still in record territory with the dow and the nasdaq. they are coming off their fresh highs. economist john lonski is with us along with susan li and ashley webster. john, this looks suspiciously to me like a year-end rally. >> i think you're right. we see an underlying improvement in the economy, earnings will be growing, and at the same time, i believe interest rates are not about to go through the roof. it's premature to begin talking about a stronger economy leading the way to fed rate hikes. stuart: do you remember 1998? >> 1998, yes, i do. stuart: that was a year-end rally. >> we had all these problems. long-term capital management, the market performed horribly in the summer. then the fed began to cut rates

into the fall, we gained traction and by year's end, we were going through the roof. unfortunately, that led to the grossest overvaluation of u.s. equities in history. i don't think that's going to happen again. stuart: the 1998 year-end rally followed the end of the demise of impeachment of bill clinton. susan: the market went up 30% after the impeachment vote. markets are expected to go up later on this year because you have so much money sitting on the sidelines. $3.4 trillion in money market funds just itching to get into some higher returning capital like, for instance, stocks. stuart: and central banks worldwide are printing money at an extraordinary rate, like $76 billion a year or something. some of that's going to find its way -- >> it's like 1998. there was weakness abroad. the u.s. was growing by 5%. interest rates in the united states were falling mostly because of weakness abroad. it pushed rates lower in the u.s. that could happen again. stuart: year end rally, here it comes, according to john. all right.

say no more. don't ruin that one. reuters reports that walgreens, that is a dow component, is taking a closer look at going private. why would you want to go private? why? >> well, that's because your growth potential isn't all that great. you think that you can maximize returns by going private. you are going to have to borrow an awful lot of money. they are talking about $55 billion. stuart: money's cheap. >> yeah, it's cheap, but i will tell you that the leverage loan segment of the high yield market, there has been suffering of late. it's been lagging the rest of the high yield credit market. this might be tough to pull off. you are going to need several private equity owners, major private equity firms to come up with the necessary $55 billion. stuart: all right. the market says not so sure about going private. they are down 33 cents. okay. we've got a new intraday low for uber. is that the intraday low?

[ speaking simultaneously ] stuart: okay. uber's stock is down, what, 40% since its introduction as a public company in may of this year. what was that, 25? 2558 was the low this morning. that is the all-time low for that stock. okay. it's bounced back just a little right now. today is the day when insiders, early investors, can sell their stock if they wish. susan: i don't think that's an avalanche. if it was, we have 1.7 billion shares available to be sold off from early investors. if that was the case, you would see a much steeper decline than this today. in fact, you know, i think people that are underwater with their uber stake, including softbank which also lost $3.5 billion buying into uber at higher valuations closer to $75 billion, they would actually need to sell when the stock is higher in order to cap those returns and return money to investors. stuart: if you are an early investor and still -- susan: you are down anyway. stuart: why sell? ashley: exactly. stuart: why not stay and wait?

what it does mean, surely, that that stock is going to stay down and depress for some time to come. isn't it? >> the problem is if they start to make money. it's too easy for similar companies -- susan: when would that be? stuart: they think they are going to be profitable by the end of 2021. susan: on an adjusted basis. that assumes a lot of conditions in terms of taxes, depreciation, et cetera, et cetera. stuart: susan li, should i buy uber at $26 a share? susan: i would wait closer to $20. it's a prove-me stock. can you actually make money in 2021 after amortization, depreciation, et cetera, because they are still losing a ton of money when it comes to eats and delivery. ride hailing is actually positive because on an adjusted basis they are already profitable, believe it or not. stuart: more than i needed to know. ashley: you ask that question every day. stuart: that was a very good answer. an off the cuff question and sudden response. pretty good. susan: that's rare. that is rare. stuart: your mom is watching. the dow industrials after, what, five minutes' worth of business,

we are down 20 points. look at that level. 27,468. roku. they are already up 355% this year. analysts a moment ago said it would go north of 250. it reports this afternoon. roku is at $139 right now. softbank as we said, booked that huge loss on its wework investment. softbank is down 4% this morning. not so rosy forecast from the parent of tinder, that would be match. you give a not-so-rosy forecast and your stock comes down, 4% right now. cvs profit got a boost from its aetna health insurance unit. it's up. humana gave a rosy forecast, it is up. the company formerly known as weight watchers, third straight quarter of lower revenue. it's now called ww international. it's down 20%. check capri and apple. the fashion company, i guess that's capri, it owns michael

kors, says people are not buying fancy watches because they are buying apple watches instead. that's interesting. ten-year treasury yield, what is it? above 1.80, i think. yeah, 1.84. that yield is rising. check the price of gold, around $1500. $1489. check the price of oil. been pretty flat recently. flat today at $57 a barrel. now this. new york city gives the green light for the tesla model 3 to operate as a taxi, a yellow cab, in new york. sounds like a win for tesla to me. >> i think it does. that's provided they don't have any problems, operational problems with its car. stuart: what do you mean by that? >> not catching fire or anything of that sort. we hope that doesn't happen. it expands the exposure for tesla. it has to be a positive. stuart: got it. remember when dunkin and beyond meat teamed up on a breakfast sausage sandwich. well, they are going to take it national. before we go into that, let me

tell you this. ash tried that thing this morning. roll tape. >> here we go. going to go straight down my tie. i know it. all right. lauren: it's interesting. there's a big battle for breakfast. wendy's report earnings today, by the way. they are getting into breakfast in a big way. ashley: everything is fake these days. stuart: ashley, never talk with your mouth full and never eat on camera. ashley: i broke every rule but it was 5:00 in the morning and i was hungry. by the way, it wasn't bad. dunkin says -- stuart: quite an endorsement. it wasn't bad. ashley: you know, i'm hungry, everything is going to taste good. i had fake meat before. i'm quite impressed overall. they say this particular sandwich, dunkin has fewer calories, less total fat, less saturated fat, cholesterol and sodium is also lower. all this compared to pork. stuart: let me say this.

beyond meat is a unicorn that's done real well. there's a stock -- susan: 300% up from its ipo. i agree with you. stuart: compared to uber, pinterest, smile direct, peloton. all the rest of them. susan: okay, but getting into the plant-based meat industry, right now the industry is valued at $4.6 billion. they say it will grow to $85 billion according to ubs by the year 2030. barclays says it will get to $100 billion. stuart: good lord. last word from economist lonski. >> what are the barriers to entry that beyond meat, you know, has? is it going to be very easy for competitors to enter into this industry as it grows and again, take away that profit margin. stuart: okay. we're done. it's 9:40 eastern time almost. john lonski, thank you very much

for being with us. check that big board. we are down 30 points on the dow industrials after ten minutes' worth of business. elizabeth warren, senator warren, sparring with jamie dimon. the banker jamie dimon says success should not be vilified. but the democrat frontrunner, elizabeth warren, trying to make him the bad guy for having more money than anybody else. it's a battle of socialism versus capitalism. i'm going to tell you why capitalists should not back down in this argument. that will be in my 11:00 editorial. a new report says uber's self-driving car that killed a pedestrian last year was not programmed to react to jaywalkers. judge napolitano on that one. chuck schumer wants gas-powered cars off the road. he wants to subsidize people to buy new electric vehicles. wyoming senator john barrasso says the plan will just be a

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stuart: all right. 13 minutes into the session, we are down just 18 points on the dow industrials. we have the restaurant chain wendy's, they did report higher sales in north america, confirming that the consumer is in pretty good shape in america. the stock, though, barely reacting, up just five cents. how about shake shack? yesterday the stock dropped 21%. remember, they made a very weak sales forecast. this morning, they have opened down another 20 cents. that's another .33%. no recovery at this point for shake shack. look at this opinion headline from the "new york times." i will quote it. are electric cars the wheels of the future? it was written by varney regular, senator john barrasso. republican from wyoming.

the good senator joins us right now. sir, i think your conclusion is that electric cars are not the wheel of the future. you want to explain this? >> well, chuck schumer has said if the democrats take the senate and he wrote about this in the "new york times," that he wants to get every gas-powered car off of the road in the next 20 years. and the amount of money that he's talking and proposing to do this makes cash for clunkers look puny. this is cash for clunkers on steroids. it's over 100 times the cost of cash for clunkers to pay people to get these off the road, to subsidize electric cars and that's his agenda should the democrats take control of the senate. stuart: i don't get it. why on earth should i be forced into an electric car when gasoline costs me $2.50 per gallon and they really have perfected the internal combustion car? are you with this demand that we all go on with electric cars?

are you behind that? >> that's -- well, you know, it is part of the green new deal, stuart, which will blow a big hole in our economy if it were to ever pass, it would hurt our competitiveness internationally, but this is their focus and you know, the average electric car, it's about $20,000 more than an average gas-powered vehicle. this is pure fantasyland, what they are proposing, but that's what is out there. you know, i believe electric vehicles are established in the united states. people that want them, can have them. i don't think we should pay subsidies, you know these electric cars, the big ones, the $100,000 cars, they are getting about $7500 of a tax rebate, if they buy those cars, so the taxpayers are subsidizing them and now what we found out through the irs is that's not really looked at so closely, so many more people are actually getting the subsidy than are actually getting the cars new.

stuart: this is all part of the push for climate change legislation. the planet is in danger, et cetera, et cetera. are you with that? do you think this kind of extreme action is necessary? >> well, i think the climate is changing. man is contributing to an extent. but these are efforts by climate alarmists who want to do things drastically, unilaterally, immediately, and things that will put us as a country at a competitive disadvantage. they will hurt our economy at a time we now have a strong healthy growing economy with over six million new jobs, under president trump and the republicans, and tax reform. this wants to turn the page back to the old times with tepid growth and a slow economy, and i think this is actually harmful rather than helping us as we move to the future. if you want to deal with climate change, we have to do it through innovation, not through taxation and regulation. stuart: senator john barrasso, republican, wyoming, thanks for

joining us, sir. appreciate it. >> thank you, stuart. stuart: yes, sir. now we've got an update on xerox. charlie gasparino confirms they have made an offer to buy hewlett-packard. gasparino says carl icahn is pushing for this deal. both stocks up. xerox up 3%. hewlett-packard up 11%. now you know. look at uber. the self-driving uber car, in a crash in arizona. we hear it was not programmed to spot jaywalkers. what's this? susan: that's right. so what happened in 2018, in march 2018 was a self-driving uber car killed a woman tragically as she was crossing the road with her bicycle. this was in the dark. according to our phoenix affiliate, their reporting suggests the collision happened just a few second, in fact, the preliminary report from nhtsa says the self-driving vehicle actually spotted the pedestrian before hitting her but a system used to automatically apply brakes in a potentially dangerous situation had actually

been disabled and the person, the backup driver was actually watching a tv show on their phone at the time. so you know, as a corporation you can't be charged, but the authorities are considering charging the backup driver. stuart: we've got to work out liability for this kind of incident in these self-driving situations. i don't think we have really gotten to grips with liability at this point. but we will. susan: but so many are testing i it right now. you have waymo also. stuart: that's right. check the big board. we are 18 minutes into the session. fractional loss for the do dow, .09% down, that's 23 points. the chinese owned video app tik tok being investigated about national security concerns. now, this app is wildly popular with youngsters, teenagers, kids. lawmakers don't like it. our social media guy will tell us what the concerns about that are.

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stuart: the fcc approves the merger of t-mobile and sprint. both stocks on your screen right now. both stocks, very little change. the parent company of the very popular short video app tik tok investigated over national security concerns. what's going on here? joining us is media guy, jim

anderson with social flow. first of all, let me see if i've got this right. tik tok owned by the chinese. therefore, the chinese have access to millions and millions of these kids who are putting short videos on. does this raise the remote possibility of blackmail? is that the concern? >> i think that's one of the concerns. i mean, any time the chinese government, you know, has control over a chinese company which owns that much data, that much content, you are going to have concerns like that. look at the problems we get into around censorship or content moderation with twitter and facebook. layer the chinese government into that, and you have a real formula for a problem. stuart: is this a real concern, though? a youngster, i mean, 10 years old, 11 years old, that's the age a lot of people who use tik tok, if i put a video on there, forget about it and 20 years from now, the chinese come knocking on the door and say do you remember when you did that, is that really a concern here? >> i think, yes, with all video, but that's not unique to tik tok. i think with our digital lives and digital footprints there's a legitimate societal concern.

there's a more near-term issue around censorship and content moderation. look what happened with the nba. a single general manager made a single tweet and set the nba back a decade in china because the chinese government didn't like what they said. so i think that's the concern, right now the chinese government and the chinese parent company is saying hands off, tik tok is run by people in the u.s., it's moderated by people in the u.s. well, that's what's happening today, maybe, but what about tomorrow, next week, next month? stuart: i will give you another one. maybe it's far-fetched or not, you can tell me, deep fakes. where you've got the visual image of millions of youngsters, you can make them say anything you like. >> yeah. that's a real problem. but again, not unique to tik tok. again, our digital foot will pr there's video out there increasingly for all of us. it's a rich treasure trove. it's particularly demographically young and young audiences are of great appeal xh commercially to advertisers. 13 is the technical age when you can start to use tik tok.

i'm sure there's a lot of people under 13 using it. stuart: i didn't realize that. >> half their user base is under 25. stuart: what can we do about this? >> i think there's going to be a lot of discussion, cfius, the governmental oversight, i think congress wants to understand how it's being managed. i think it's going to be tough to be a u.s. manager of tik tok owned by the chinese. i don't know whether they will ultimately divest it or not. i think there's bipartisan support to really ask these hard questions. there aren't that many bipartisan topics out there. stuart: very true but it is wildly popular. >> it is. stuart: jim, thank you very much, sir. another facebook data breach to tell you about. apparently this was, is this to do with software development? sh ashley: it is. software developers had access to groups that were on facebook. a lot of that was revoked after the cambridge analytica revelations but apparently, we only just found this out, some of the software developers still had access and at least 11 of those developers, accessed group members' information in the last 60 days. what we don't know is what they

got, how many, what groups were affected, how many users' data was accessed, how many times. you know what, you start to get numb to this because it's almost daily. stuart: you do. you get numb to it. precisely right. we report it almost every single day. ashley: yep. stuart: thank you, ash. president trump, he held a rally in kentucky, for kentucky governor matt bevin monday night. democrats there claimed victory in yesterday's election. bevin, though, refuses to concede. what kind of an indicator is this for the president and his presence in any given state? when it comes to next year's election? we will ask former governor of arkansas mike huckabee. he's on the show today. new reports say juul ignored signs that it was getting teens hooked on vaping. if that's true, could it be a criminal case against juul? judge napolitano will decide. airbnb dealt a big blow in jersey city. voters there put restrictions on

rentals. why are residents so against it? i will ask jersey city's mayor steven fulop. he's on the show about 11:20 this morning. we'll be right back. peyton, what are we doing here? brad, welcome to peytonville. what's this for? song inspiration. i started in my garage, but nationwide protects so much i had to expand. nationwide helps protect everything you see in here, brad. every family, every business, every dream. see mrs. hoffman? nationwide protects her home and car, but also her dream of retiring to become a yoga instructor. oh, they have backstories. of course they do. here, i got more to show you. keep up, now. a little hustle.

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stuart: as the saying goes don't throw the baby out with the bath water. i would apply that to two of the most innovative companies in america, airbnb and uber. both are running into opposition that could ruin them. airbnb lost in jersey city, new jersey. angry voters put pretrickses on rental. restrictions on rentals and they didn't like outside investors converting homes into semihotels without taxes and regulation. this came after a shooting deaths in an airbnb party house in california. the airbnb vote will provoke

initiatives elsewhere. this will snowball. for uber, a similar story. ride-sharing kills established taxi and car service companies t brings a lot of traffic to airports and city centers. there is pushback. in california a new law says uber and lyft drivers are entitled to benefits that disrupt the ride-sharing business. in new york city the number of uber cars is capped. that really hurts. this kind of restriction will likely spread. now i would like to invest in these new industries. i think they're good, they are are a force for good. the pushback makes me think twice about regulating. if we overregulate we take profit out of the business, we take the drivers out of the business, we take rental unit out too. more than anything, overregulation would deny our innovators success they deserve. america advances when bold new ideas are allowed and

encouraged. we lose if we stamp them out. that is my opinion. second hour of "varney" about to begin. ♪ look who is here. the perfect guy to respond to my editorial, ed conard, former bain management. i think they open america up to innovation. regulate by all means, don't overregulate. don't kill them. what do you say. >> hard to disagree with that you always face this tradeoff which is politicians can be deeply miss guided by regulations. they don't have an understanding of the business. they are not up to date. they come up with dangerous stuff. they destroy a lot of value i think in the process. on the other hand, google, facebook, companies like this have enormous amount of

information on us. we have to, we have to in some ways regulate how much surveillance we'll allow them to have. what they will be able to do with the information we have. in the case of airbnb, as you point out there are lots of parties going on in the airbnb places. there have to be some restringses that guide these but there is always a difficult trade-and-a-half between trying to rein it in. stuart: america is most innovative society on the planet. we welcome the new stuff. we revel in it. >> all of it. stuart: what is happening to airbnb, uber lyft, some others coming on strong, put as damper on the innovation, puts a damper on our culture. are you with me? >> no doubt about it. look at the data. we're producing six times asbillion dollars start-ups as europe is. 10 times venture capital as percent of gdp as france and

germany, the most prosperous countries in europe have. our middle class is earning 20 to 30% more than the richest people in europe are. we are enjoying enormous benefits. europe would be a lot less prosperous if not for american-made innovation. virtually all of it is coming from the united states. we need to be very, very careful in that regard. stuart: repeat that, americans are, what is it, 20, 30% more wealthy? >> look at consumption what really matters, the middle class american is consuming about 30% more than a middle class german has. stuart: that is our standard of living, spending power? >> absolutely. stuart: because we have relatively free market, capitalist innovative economy? >> if you look from 2,000 alone, our productivity has grown 30%. that is how much gdp we produce

per hour of work. germany is up 20%, france is up 20%. we're half again more than what they have produced in the last 18 years. stuart: are you disappointed with president trump? we thought of him as a free market kind of guy. is he? >> the stock market is up 50% since he took office. in germany it is 20, 25%, the rest of europe is 10 to 15%. so we can nitpick here. let's not miss forest for the trees. stuart: will you leave the country if elizabeth warren becomes president of the united states? >> no. but i might go to florida. [laughter]. stuart: wouldn't we all. >> don't we have to stay and fight? isn't that our obligation? one thing i tell you, people have tried to consolidate power in the hands of government and politicians all over the world, all through history and it has not worked out well at all. in the united states the freest country on the planet, we have

produced much more prosperity for our middle class than anybody else. she is talking about going much further than europe has gone and europe has destroyed a lot of prosperity. after world war ii they were catching up to the united states. until late 1980s, beginning of the 1990s. since then we spurred ahead. left them behind. stuart: ed, thank you very much indeed. we appreciate it. >> sure. stuart: let's bring in jackie deangelis. jackie is in jersey city. what is airbnb saying about a negative result for them in yesterday's election in jersey city? reporter: good morning to you, stuart. airbnb, a spokesman told, fox business, quote it is unfortunate the hotel-backed special interests run a campaign that moves jersey city in a different direction. there are airbnb listings in over 100,000 cities around the world. we will continue to do all we can to support hosts.

that is really what the conflict is about. this is disruptor company coming in with a new business model, people can lease out part of their homes or all of their homes for short-term rentals. that is displacing the hotel industry. so the concern from residents here who voted for stricter riglation is that they don't want to see these tourists coming into these residential areas. they prefer for them to be at hotels. airbnb is actually saying, look, this is extra income for homeowners. it is helping people. while the hotel industry is saying it is really hurting us. what is interesting about this particular vote, a lot of anticipation leading up to it, airbnb spent over $4 million trying to lobby its position, trying to swing votes if you will. the hotel industry, the workers union, they spent about one million. so that made this the most expensive local referendum in new jersey history. that is according to "the new york times." this is a battle that certainly isn't over.

this is going on in a lot of different cities. new york city is one, for example, in my building, there is a lot of issue. they don't want airbnb listings in the building. having said that los angeles, amsterdam, paris, vancouver, they all passed laws to limit airbnb and short-term rentals in the cities. stuart: in my opinion don't throw the baby out with the bath water. jackie deangelis in jersey city. by the way of mayor of jersey city, steven fulop will john us on 11:30 this morning. what is the problem with airbnb? we'll hear from the man himself. we're down three points for the dow. 27,488. market watcher todd horowitz joins us right now. todd, apart from today, in the last few minutes, it sure looks to me like we're headed for a nice year-end rally. what say you?

>> good morning, stuart. like santa claus will come, most likely, we have a nice dull market rally, keep grinding higher on daily basis. eventually, listen we could grind like this until 28,000. there is no limit how far or long this grind could go. extremely slow, no volatility. volume is light. investors chase yield. as long as they chase yield the only place to go is the u.s. stock market. stuart: we're one hour, nine minutes in the program. we talked about the stock market. we have not yet mentioned the word impeachment. do you think the impeachment makes any difference to the stock market whatsoever? >> i don't really think so. it may, short periods of burst it may have some effect. overall everybody recognizes that president trump has done a phenomenal job working this economy. he has done a phenomenal job fighting over all the garbage

pushed his way. at the end of the way, he has done a great job, i don't know how many presidents take the market from 08, when he came in, continue the rally started. that is very unusual, that we could see this much of an add-on with a new president. stuart: your big deal is debt. you think that there is a debt bomb and at some point it could explode. we could have said that for the last 20 years. what do you make of the debt bomb explosion and when? >> you can't ever say when. we can't forecast when it will happen. we all know there will be another market meltdown at some point. they don't announce themselves. they show up. right now we're grinding higher. i say the next big, big move will be down. it could be a year from now. we could be 2,000 points higher from here. investors should not worry about the debt bomb or anything else. the bottom line united states

stock market gone up 8 years for 150 years. no reason to expect that to change. you have strong fundamental companies with good earnings, show growth, you should have same expected return over the next 150 years. stuart: todd horowitz on board with a year-end rally. todd, thank you very much indeed, sir. >> thank you, stuart. stuart: president trump calling for a war on drug cartels after a group of americans were killed in mexico this week. martha maccallum will be with us shortly. she spoke with a family member how a young boy saved other children. we'll also be joined by a young woman who has been outspoken about the perils of socialism in central and south america. she once ran for the presidency of guatemala. she has a warning what she experienced. big upset for the gop in virginia and kentucky after virginia suburbs went democrat and democrat andy beshear claims victory in the governor's race in kentucky?

what does that indicate for 2020? former arkansas governor mike huckabee is next. ♪. does your broker offer more than just free trades? fidelity has zero commissions for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity.

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stuart: not much change to report for you on the market thus far this morning. the dow ask up a mere, i'm sorry, 14 points that puts it at 27,500. now this. october saw a record number of robocalls. wait a minute, susan? i thought they were supposed to have been gotten rid of? susan: not gotten rid of but they trailed off in august and september. new rules came in place by the fcc and senate rule. empowers, phone companies like at&t and verizon, authenticate, track, block the calls, that hasn't helped five 1/2 billion were made in october.

stuart: last month there were five 1/2 billion number robocalls. susan: record number. they are getting very smart. they have spoofing techniques. using technology to get through the sensors. some are scammers trying to get in, social security and some of your payment methods. some of the top scams during the month of october 47% were coming from debt collectors supposedly. telemarketers 12%. credit card offers, 10%. health insurance was 22%. this is very concerning for those, they don't know who is calling. they think it is authentic. so they give away private information. in the end hurts them. stuart: so it is not fixed? ashley: it is not. they can't track them down. that is hard thing. very, very difficult track down, follow the line to eastern europe or wherever but can't actually catch them. stuart: i get them on the phone. announced during the show. any minute now i will get one because they're watching.

susan: five 1/2 billion. stuart: very annoying for everybody. thank you, susan. let's get to the elections. democrats took control of the legislature in virginia. they are claiming a narrow victory in the kentucky governor's race. republican governor bevin has not conceded yet. bring in former arkansas governor mike huckabee. is this bad news for the president in 2020. >> excuse me, i'm just getting finished a robocall here. social security and checking account. they will wire me some money. i don't want to miss that. stuart: don't. >> you know i think this election really showed the significance of president trump's involvement. the fact is matt bevin, governor i personally like and thought was doing a fine job but for reasons i don't fully understand he had the lowest numbers of any governor, democrat or republican in entire country. most people thought he would lose in a landslide. the fact that it is still so close. networks have all called it but

he has not yet conceded this is a razor thin victory for the democrat, if in fact he is certified the winner. everyone else on the entire ticket won as a republican. no one had the influence donald trump has when it comes to campaigning. i think people are forgetting he is spending his political capital on candidates up and down the ballot all over the country, unlike any president has ever done before. and it is showing in results. stuart: what about the after fran american republican, daniel cameron won the attorney general's race in kentucky. what is the significance? >> he is incredibly charismatic guy. the future is wide open him. they say ag stands for aspiring governor. that is what it really stands for. most people run for ag, they want to become governor.

they run there, become governor later on. look for him to be a real player in kentucky politics, whether governor, u.s. senator or some other office. he is articulate. he is very, very, just i think charismatic. he has got all the stuff that it takes to be a real winner. his election, but again, go all the way through the ballot. republicans won every statewide race except governor. as you say that one is a little disputed but i think in the end the democrat probably will be certified the winner there. stuart: governor huckabee, thanks for joining us, sir, we appreciate it. i will break in. we have a developing story here. the "detroit news" reports that retired united auto workers president joe ashton has been charged in a bribery an kick back scandal. he is the 13th highest ranking person surrounding the u.s. auto industry. "detroit news" coming to us with

that one. more headaches for the e-cigarette maker, vape people, juul. juul reportedly ignored signs it was getting teens addicted. judge napolitano will break it down for us. he is next. ♪. this is the age of expression. but shouldn't somebody be listening? so. let's talk. we're built for hearing what's important to you, one to one. edward jones. it's time for investing to feel individual. 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. (man) we weave security into their business. virtualize their operations. (woman) and build ai customer experiences. we also keep them ready for the next big opportunity. like 5g. almost all the fortune 500 partner with us.

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- or go online today. stuart: a new report, says, juul, the vaping people ignored early signs that it was hooking teens. not sure i really understand this i want elucidation from judge andrew napolitano. what is the actual charge here?

>> the allegation is deviation from juul from approved marketing language. when you are licensed by the fda to sell a product the fda has to approve the marketing. juul gave them the marketing. they haggled a little bit and they agreed. the allegation is that juul used other marketing to entice teens to use it, marketing that was not approved. that is the allegation. that is not criminal. it is civil. the worst thing that could happen to juul, the fda could remove approval of product. the second thing could be a very heavy fine which they would tolerate. stuart: it helps so many people actually stop smoking tobacco. >> i say well, yes. people in the medical community saying tobacco is harmful. our own dr. siegel testified in his view, the view of many people in the medical community, it is his view that it helps people to wean off of tobacco

and that was one of the arguments given to the fda when they licensed this. now a lot of things have happened since then. adding after market flavors. flavors. looking at your tie. it's a perfectly fine tie, one of the flavors they added was cotton candy. i'm looking at pink tie thinking of cotton candy. will that entice a 30-year-old or entice a 13-year-old. stuart: in my opinion it doesn't matter. you get a vaping device, you will get hooked on nicotine. nicotine is very powerful drug, anybody that takes it gets addicted real fast. >> the addiction is not the wrong. the fda knows that tobacco is addictive. they do their best to regulate it, requiring certain warning labels. nobody pays attention to the marketing. stuart: tell me about the situation where a pedestrian was killed by a self-driving or in an incident with a self-driving

uber car. who is liable? >> the pedestrian, the pedestrian was jaywalking and the software was not programmed to alert the car for a jaywalker. that is absurd that they wouldn't think of that. so there is certainly liability on the part of the manufacturer of the sort of wear and user of it. there may be liability on the part of the deceased person's estate, jaywalking is against the law. stuart: never. >> the jury would be told, when you violate the law, that is evidence of negligence. stuart: no jury would ever find a victim liable, ever. it doesn't happen. >> it does happen, mr. varney with the pink tie. stuart: wrong again. thanks, judge. republicans took quite a hit in virginia's suburbs in yesterday's election. my next guest says that loss was because of health care. watch out, republicans. we'll be back with that. ♪. ♪ limu emu & doug

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don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement. ♪ yesterday love was such a easy game ♪ stuart: headline. susan knows the song. susan: i like it. ashley: i will sleep tonight. stuart: arrangement with the strings in the background. all the rest of it is, sir george martin. that is correct. that is your beatles 20 seconds, susan. susan: i liked it. stuart: check the big board. we're down 17 point as we speak. i think we're just got numbers on oil. what have we got? ashley: we do, a build of 7.93 million barrels. we were expecting a build of

1 1/2 million. a lot more oil sloshing around in reserve. which should put downward pressure. up all morning marginally. interesting whether we see oil turn around. stuart: it hasn't so far. we got it. let me tell you about softbank. don't turn your tvs off. let me explain what soft wang is. a giant japanese based powerhouse, they want to bring in $100 billion every three years. to make invests in up start companies. they reported a whopping great big loss. what happened? susan: first loss since 2005. you should know softbank, it invested in wework, uber, slack and like, they invested in sprint with merged with t-mobile. they have done a lot in the u.s. market. however they are losing shirts when it comes to the unprofitable unicorns. they lost four 1/2 billion dollars in the wework debacle. we heard from the visionary

founder, still worth $13 billion. his net worth fell 30% in the summer months because of losses not only with wework, it was a mistake i regret it, my own investment judgment is really bad. he lost 3 1/2 billion dollars with uber as well. stuart: he admitted his investment judgment wasn't great. that is why he lost so much money on uber. so much money on wework. his reputation has been dented. can he bring in $100 billion in fresh money all the time? susan: i think that is difficult. the first time he brought it in from saudi arabia, right? where oil prices are going you can't find that many saudi arabias in the world to get 100 billion-dollar vision funds every three years. i would argue that san has great vision. a chinese company back in early 2000s, alibaba. he would make a 100 million-dollar stake into $100 billion plus? don't cry for him. he is fine.

stuart: i'm not crying for him. i question where does he go from here? his judgment is bad will he bring in pressure -- fresh money. susan: where will fresh capital to fuel private rounds and where can you get $75 million if uber is not making money? stuart: venture funds. you got it. tesla, new york city, will allow tesla's model 3 to be used as a taxi. so what? ashley: the first all electric model been given a green like by the new york city taxi, limousine commission. first time we ever see iconic yellow and black color scheme on a tesla. they have to get the medallion, as we were talking earlier today. it used to cost a million bucks or more because they were hard to get. stuart: that crashed. ashley: that crashed. the question, let's not forget ceo elon musk promised a million strong network of autonomous

robo taxes by 2020. somehow may not make that. this is one small step. stuart: you got that right, son, let me tell you. thanks. ashley: sure. stuart: let's get back to the elections, yesterday's elections. our next guest says the kentucky and virginia suburbs voting democrat will prove to be an issue for republicans and the president in 2020. look who is here? the man who loves to talk tariffs but will not talk tariffs today, tim phillips. americans for prosperity president. welcome back. >> good to be here. stuart: you say it is health care, that was the sticking point, especially in the virginia suburbs. a big problem for the republicans? >> it's a problem. state elections are tougher. health care favors republicans in this case think about this. looking at colorado, cory gardner, republican policy, up next year. voters are looking at elizabeth warren, bernie sanders talking about taking away private health insurance, dumping hundreds of

millions of people into medicare, cade struggling. that will help cory gardner or thom tillis, policy champion, republican up next year in north carolina as well. stuart: in the virginia suburbs -- >> it was tough, no question about that. stuart: they bought the democrat line. they did not buy the republican line. whatever the republican line is, they didn't buy it. >> there are a lot of questions. i'm in northern virginia. one of districts that flipped. we had a good can date, gary higgins, lost a tough race. suburbs is problem with the tone and manner of a lot of candidates. they need to lean in, frankly be a little more positive about what they can do, problems they can solve. i think some of these candidates on the republican side are struggling with that, frankly. it matters. stuart: i see your point. i thought it was pretty stark choice here. elizabeth warren, bernie sanders would do away with the health care system as we know it and introduce something similar to what they have in britain and canada. >> yeah. stuart: there goes your private

health insurance. that i thought would be enormous selling point for republicans. >> last night, a state election. also in kentucky. people look at a different set of issues, stuart. i think they do. look more, who they like, who they want to have cup of coffee with at state level. the federal elections i do believe health care will be a bigger issue. i think this move to do away with private health insurance which will hurt poor folks struggling with medicare, medicaid. it makes it harder to get in to see a doctor if some folks are on public programs. including folks with private insurance that will be bigger issue with cory gardner, thom tillis, these good people who happen to be republicans up next year. stuart: i know you, tim phillips. you hate tariffs. >> they are taxes. they hurt people. stuart: you've been campaigner against tariffs. >> they hurt our country.

stuart: "the wall street journal" that the u.s. treasury collected $7 billion in tariffs alone. >> stuart, have you looked at the trade gap? trade gap that supposedly tariffs would fix is wide as it ever has been. also economic growth, we would love to see it plus three, plus four. not happening. so much good is happening with the tax cuts. this is brand new debate for us, we never had this before. stuart: just $7 billion in tariff revenue. >> taxes from the american people. that is what those things are. stuart: paid by the american people, paid by importers. >> economic growth is not where it ought to be. stuart: paid by i am povertiers. paid by i am povertiers. >> economic growth is not where it ought to be given tax cuts and regulatory reform the administration is doing. it is great stuff. we should have bigger growth. we know that. stuart: we are about to sign, i think, phase one of the china trade deal. >> i hope so. stuart: we got there because we imposed tariffs. we might roll back tariffs. china wants to roll back more of

the tariffs, more than those imposed on september the first. come on, you are happy? >> i don't mean to report recent history, i sat here with you, couple years ago, you said the following these tariffs are negotiating point tim. they will not go into effect. they have gone into effect. stuart: it is still a negotiating point. >> best tax cuts, best tax reform in a generation this administration passed. god bless him for that. best regulatory reform with this administration. put those two together we should get economic growth at 2 to 3%. we're not getting it because of government spending both parties are responsible for and tariffs. stuart: tim, thank you. health care, we got off it but go back to it. elizabeth warren tout as plan for "medicare for all," the cost 52 trillion. in the next hour, indiana senator, mike braun, put it to him, any gop health care plan is

better than "medicare for all"? who will argue on that? some people may. socialism devastated many, many countries. next i will talk a young woman who doesn't want the same thing to happen in her native guatemala. socialism is not in the human nature of things. she is fighting it. she is a welcome guest on this program. ♪ driverless cars, or trips to mars. no commission. delivery drones, or the latest phones. no commission. no matter what you trade, at fidelity you'll pay no commission for online u.s. equity trades.

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stuart: not much stock price movement today. certainly not the overall market. the dow industrials are down a tiny fraction, 14 points. we're at 27,478. our guest this morning a guatemalan fighting socialism in her country. she says, i find this interesting, socialism she says is not in human nature. good point. i want to learn more about that. gloria alvarez, the lady on your

screens. she joins us here on "varney & company." tell us, you say socialism is not part of human nature. explain that. >> neuroscience and psychology found out that we are wired to have self-esteem, to have self-interest and to pursue our own goals. because something maybe karl marx didn't know. not even sigmund freud was current when marx wrote communist manifesto. we know this, socialism psychologically doesn't go -- stuart: we're individuals. we demand our own individual freedom, our other than personalities, our own choices. but socialism you say is the opposite of that? >> it is the opposite because it sacrifice of our individual needs and wants and dreams, in the sacrifice of imaginary collective. it is defined who is that collective. it is always dictators will. it doesn't matter if it is the soviet union or china or

venezuela. it is always individual sacrificing his life, liberty or private property for that. stuart: isn't it more fair? i think latin america always moving towards socialism, i want to be more fair because of income inequality. >> yep. stuart: you don't think socialism is fair? no? >> only equality gives you more equality misery for the people but the dictators are always living better than the media. so what happens in latin america is that we all have cronyism. we all have, we don't have free markets. it is just venezuela and cuba are the extreme on one end. that doesn't mean rest of the countries have capitalism or free markets. we all have a little bit of socialism. stuart: you wanted to run for the presidency of guatemala. >> yes. stuart: you're not allowed to? too young? >> i'm too young. i'm 34. according to the law, you have to be 40. my candidacy was independent

with no political party. and also that is illegal. stuart: do you think you would have polled quite well had you been allowed to run? >> i think so. the idea, because i am, i'm sick of the candidates, what happened with my candidacy, people asked how can someone can't run has more of a structure what she would do, my campaign was 10 specific points. they could contrast that and analyze it versus people

actually running. stuart: would a totally free market, i take it that you're a free market person individual liberty. >> with objective views as well. difficult to put practice in place like guatemala your grandfather was from hungary? >> my dad from cuba. my mom is from hung geir yaw. stuart: you grew up, you heard horror stories of communism and social i. >> you see what is socialism. when i do the fight all over latin america, people are like, wow, how can you get it so easily? not that i get it so easily. history repeats itself. when you have bad ideas, it is always miserable reality. stuart: you better come back to see us. come back before you run for president in guatemala. gloria alvarez. thank you for being here. >> thank you for inviting me. stuart: thank you. jersey city mayor steel fulop. he is going to join us. voters in his city approved serious regulations on airbnb. at a new time for you. len ven:05 this morning. he is on the program today. president trump calling for a war on mexican drug cartels after nine u.s. citizens were

killed earlier this week. martha maccallum joins us after this.

stuart: same story. we're still virtually unchanged for the overall stock market at this moment we're down .05% on the dow industrials, down mere

13 points. go nowhere thus far today. roku, that is a streaming box basically. that stock is up 355% this calendar year. they report their profits or otherwise after the closing bell today, as we walk up to that, they're up two bucks at $141 a share. earlier this morning, a roku analyst was on this show saying it is going to $250 a share, not too long of a time frame. walgreen's, they're exploring going private. they're down 3%. i have don't know who would replace them in the dow if they do go private. they have to raise a whole bunch of money if you want to go private. walgreens is at $58 a share. let's do a little gee whiz, shall we? it is from amazon. you got that right. >> gee whiz. stuart: they're testing ear buds that can track your workouts.

wow. susan: i know. wow, wow. the echo ear buds are one of the newest devices launched by amazon a few weeks ago. according to report looks like they might be able to track your workouts in the future. we know that google bought fitbit. we know it is lucrative. you heard from capri and michael kors, saying apple watch taking sales from traditional watches as well. so echo buds, apparently in the future in your app, alexa enabled app, might be able, supposedly if there is placeholder to track your fitness going forward. we know that amazon thought about testing this. is this a game changer if they do fitness tracking on ear buds? stuart: are you asking me a the sensible question about ear buds susan: apple son forefront of this, with apple watch, tethered to airpods in the future this is forward guidance we're getting

for technology. stuart: i can't wait for the forward guidance. thank you very much. susan. serious stuff, let's do this. president trump called for war on drug cartels after an american family was brutally killed in mexico earlier this week. martha maccallum spoke with a member of that family how the 13-year-old saved other children. roll that tape, please. >> his mother and, my niece and, she, a great mother. she taught him well. these are great children. these are children of, of good standards and good faith and that doesn't surprise me that he did that. stuart: martha maccallum is with us now. host of "the story" with martha maccallum. president trump spoke with mex can's president about this.

this looks like he means business. >> it is about security to the south of our border, to the north of our border. this happened less than 100 miles from the arizona border. it really reflects the growing issue of the cartel violence that is so brutal. there is lot more to the story we know now. these families, it would appear this was obvious targeting, they were miles apart, these three suvs. stuart: really? >> miles apart. i think the idea that this was, that they were caught in mistaken crossfire is falling by the wayside. stuart: so the potentially, this was, this was a massacre. >> yeah. stuart: a deliberate massacre to send a message to who? >> exactly. that is what i asked trish last night. what kind of message were they trying to send to you? there are reports that one of the woman got out of car, had her hands up, please don't shoot. this was a very, it appears to be, i want to be cautious here, appears to be a very targeted

hit. several years ago this, one of the drug cartels kidnapped a 16-year-old boy from this group. they wanted a million dollars from the family. they later returned him without the million dollars but then, about a year later they killed a 31 brother of his. so there has been obvious friction between these groups. this is a group of, the family, basically they do pecan farming and cattle farming in the area. but some of their property crosses into cartel territory. i think there is more to find out here for sure. stuart: i wonder what impact it will have on our border policy? what will it do to our relationship with mexico after this happened? we don't know what it is going to do. >> president trump offered help. mitt romney has also been supportive of this. his grandfather was one of the people who lived in this area in northern mexico. they were separatists from the mormon group. they're not part of the mormon group anymore.

they were polygamists early on. they say that is not the practice of this group anymore. a lot of questions here. it clearly is good, you don't want to say good, it clearly builds the case for a stronger force hand at the border because we don't want any of this crossing over. stuart: i will be watching tonight at 7:00. i'm sure you pursue this. >> absolutely. stuart: martha, thank you for being with us this morning. >> good to be here. thank you. stuart: thank you. now voters in jersey city, they dealt a blow to airbnb. they approved heavy regulations on short term rentals. why is jersey city so against airbnb? the mayor, steve fulop will joan me in couple minutes. i will surely ask him. elizabeth warren, the left's darling, launching attacks on the wealthy. deem dime fought right back -- jamie dimon fought back. my take on that next.

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stuart: elizabeth warren versus jamie dimon. top banking critic versus top banker. big fight. it's really socialism versus capitalism. you know, it looks like the 2020 election, doesn't it? this thing really started in the summer of 2011 when warren famously laid out her socialist position. roll tape. >> i hear all this well, this is class warfare, whatever. no. there is nobody in this country who got rich on his own. nobody. you built a factory out there, good for you, but i want to be clear. you moved your goods to market on the roads the rest of us pay for. stuart: okay. senator warren is now a frontrunner for the democrats in 2020 and she has staked her campaign on tax the rich,

confiscate their wealth and make big companies ask the government for permission to do business. that is her pitch. referring directly to banker jamie dimon, she tweeted this. it's only fair that he and his billionaire friends chip in to make sure everyone else has a chance to succeed. ah, the fight is on. mr. dimon jumped right in. warren, he says, would change the complete nature of how you run a corporation. he's right. if you have to ask the government permission to operate and you are forced to change the way your company is governed and the government tells you who takes the profits and which workers to hire, you really have fundamentally changed american business. dimon went on. quote, she uses some pretty harsh words. i don't like vilifying anybody. i think we should applaud successful people. come on. isn't that the point? financial success gets no respect.

the socialists of this worldpeddlea harsh message of jealousy and confiscation. you've got more than me, it's not fair. we will take it off you. the socialists make us all victims. it's good to see jamie dimon pushing back. successful people should not stand quietly by and let the socialists destroy our prosperity. the third hour of "varney & company" is about to begin. stuart: you know, i think we need some reaction to that little rant of mine. who better to give it than anthony chan, the former jpmorgan chief economist. whose side are you on? >> i'm on the side of capitalism. i grew up in the poor housing projects here in new york city. what i want to see is more resources to help people lift themselves up. when they get lifted up, i want them to feel proud and i want america to feel proud of them

also, not vilify them. stuart: i just don't like bashing success. it seems that if you are successful in america, especially if you are financially successful, you become wealthy, you are bashed. they just want to take it off you. >> it's the wrong incentive. we all know that's the wrong incentive to have. we want to reward success, not punish success. stuart: i'm very critical of senator warren for this -- for her views on how to license corporations. you know, if she wins the presidency, she wants to make it so you've got to go to the government to ask permission to do business. that to me is anti-capitalist. that is socialist. what do you say? >> well, what i say is i want to reward success. i'm always non-political in nature but whenever i see that capitalism is under fire it does bother me. stuart: at this point you've got to get political because they're coming after your money, my money. they're coming after our capitalism. you've got to get political. >> i have to, but i always -- i

do want to reward success and that's the right way to go. by the way, on both sides of the aisle, there is talk out there that rewarding success is not such a bad thing. stuart: i'm with you on that one. we've got a successful market on our hands. not doing much today, we are down 20 on the dow, but you know, it looks to me like we've not a year-end rally going. >> well, seasonally, november, especially december, are usually good months. in fact, when you see that the market does very well in the first 10 months of the year, almost always you see the market doing even better in the last two months of the year. so i think we are being set up for that. then let's not lose sight of the fact the major central banks are in fact giving us a little bit of support. maybe more support than we really want to see but we are seeing it from the european central bank, seeing it from the federal reserve, the bank of japan basically saying they are ready to go and do some more. all this is actually keeping liquidity conditions at a situation that is supportive for

corporate profits and not hurting corporate profits moving forward. stuart: year-end rally, here it comes says anthony chan. thanks for being with us. very good stuff. thank you. let's talk airbnb. that company was on the losing end of a vote in jersey city, new jersey. the city will now require permits for owners of short-term rentals. it will limit the size of those properties and how long you can stay there without the owner being present. we've got a statement from airbnb in reaction to that vote. here it is. it's unfortunate to see the hotel-backed special interests run a campaign that moves jersey city in a different direction. jersey city's mayor steven fulop joins us now. your honor, you heard what airbnb had to say. can you synthesize this? what was the principal objection to airbnb in your city? >> well, i think over the last three years, airbnb has grown from 300 units on a given night

which was home sharing in the truest sense, where for example, you would be sharing a bedroom or apartment in your home, to where it's now 3500 on a given night, growing, and it's majority 70% commercial operators. that changes the character of neighborhoods, it absorbs housing, puts pressure on affordable housing, quality of life issues and of course, safety issues. we tried to find the balance with some reasonable regulations. airbnb fought us on it and the voters spoke resoundingly saying that they want regulations. stuart: okay. i want to bring this to your attention. an organization called keep our homes, it's a campaign, they are pro-airbnb. they accuse you of electioneering. i just have to read the statement out loud here. the video of steven fulop engaging in prohibited electioneering at a polling station shows a shocking disregard for the law almost as soon as polls opened today. poll workers telling voters how to vote to city workers distributing flyers, et cetera,

et cetera, et cetera. they are really upset about you. what's your response to that statement? >> all right. so let's clarify, they sent out a four-second edited version of a video which i said release the whole video and it's clearly that i, nobody in our campaign was electioneering but they won't release it. they released a four-second difficult-to-hear edited version. more importantly, it's consistent with what airbnb has done this entire campaign, spread misinformation and lies and speaks to the ethics of the company. they sent this video out followed by a press release immediately, at the end of the campaign when they knew they were going to lose. i think any reasonable person could just say it reeks of desperation. that's where we are. at the end of the day, i think we are operating responsibly here. stuart: i'm told there was some opposition to outside investors coming into jersey city, buying homes and then turning them into almost a street full of semi-hotels. was that happening?

>> yeah. i mean, we have seen a proliferation of investors coming in, buying five, six, seven homes on a given block and turning them into illegal hotels. it changes the character of a neighborhood, there are safety issues and we thought that some reasonable rules were acceptable. airbnb dug in, this was the first place they pushed it to a vote because the new york market is important to them, and unfortunately, they miscalculated where the voters said publicly how they feel about airbnb's business model. if i was an investor, in airbnb, i would probably be concerned a today because i think it's the first time the people have directly made a statement about how they feel about airbnb in their neighborhood. stuart: have you been contacted by any other municipality about the ordinance which you passed yesterday, maybe imposed elsewhere? >> yeah. so i don't want to put them out there but we have had three cities elsewhere in the country that are much larger than us that reached out to us today for copies of the ordinance and to talk a little about the process.

i mean, the group of mayors across the country in larger cities, it's a very small community and we tend to work together. so people obviously take note of this and it's the first time it's gone to the public so you know, i would expect others would look to replicate it. stuart: to be clear, you're not kicking airbnb out of jersey city. you're just vastly restricting its operations there. >> well, i wouldn't say vastly restricting. i think there's a lot of color there. let me just say, let me say i think airbnb has an important role in any city with regard to home sharing and allowing people to supplement their income and make a couple extra bucks and that's great. i also think we need to protect integrity of neighborhoods and communities. this was kind of a middle ground. i think that's what the ordinance did. stuart: your honor, thank you very much for being with us today. i know you are very busy. we appreciate you taking time to be with us. >> no problem. thank you so much. stuart: yes, sir. now then, yeah, we have visited

pennsylvania, we have visited michigan, two out of the three key swing states that helped president trump win in 2016. next, we are rounding out the week in wisconsin. manufacturing jobs are in focus in that key swing state. we'll take you there. last night's elections, democrats took control in virginia and claim a narrow victory in the kentucky governor's race. incumbent governor matt bevin, republican, has not conceded. next, we are joined by brad blakeman. he played a critical role in the florida recount of 2000. big question, what do these elections signal for 2020? we are asking all the questions. stay with us. third hour of "varney & company" rolling along. ♪ aetna takes a total approach to your health and wellness

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stuart: our very own connell mcshane has been visiting swing states all week, taking stock of how voters feel about the president. today, he's in wisconsin. connell, this is all about manufacturing in wisconsin, isn't it? connell: yep. absolutely. and trade, a little, stuart. i'm here on the outskirts of where we are, racine, but manufacturing, people building things, that's what this area is all about. it's interesting, i will say something about this area. they can really pick them. this is racine county in wisconsin. they have gotten every presidential winner right going back to -- the last time they got it wrong was '88, but all the rest of the time, even when the state goes with the eventual loser, this county goes with the winner. so follow what they do here. on the manufacturing side, you talked about unemployment is going up a little but it's really relative. the un eemployment rate is 3.8%. it was 3% a year ago. it's gone up a little. trade is also important.

i just had an interesting conversation with the mayor of this city. he was telling me foxcon, the big company from taiwan, is coming in. the political part of our conversation with the mayor, his name is cory mason, is what i found interesting. i think you will, too. he's a democrat, this guy. i said to him, you know, last time around, you guys, meaning your party, hillary clinton, you really ignored this state. he said yeah, that will never happen again. huge mistake. the democrats will spend a lot of time here. but he told me their main point, at least his opinion, is beating donald trump and i said well, what about someone like elizabeth warren, too far to the left on economic matters? he said the main objective is to beat donald trump. now, that was the complete opposite of what i heard yesterday from a top democrat who said the democrats have gone too far left. i don't know which side wins out. maybe the states are different. but i did find that kind of interesting. stuart: it was. that is very interesting indeed. all right, connell. we will catch up with you later.

thank you very much indeed. connell mcshane. let's get to the election. kentucky's governorship, too close to call. democrat andy beshear, i think that's the correct pronunciation, claiming victory. republican incumbent matt bevin has not backed down. he's not conceded. brad blakeman is here, former deputy assistant to bush 43. put it all together for a second. the democrats win in virginia, the democrats probably have won the governorship of kentucky despite president trump's rally there on monday night. what does all this mean for 2020? >> well, battleground states, virginia is obviously bluer than it was yesterday but virginia was a close majority when republicans had the majority so it wasn't as if the democrats had a rout in virginia. just a shift. the northern suburbs of virginia, i call it urban suburbia because democrats don't want to live in washington.

they live in virginia and follow their vote. now we have amazon coming in to arlington and alexandria. 30,000. so that's going to have an impact again in suburbia. republicans have a problem with suburbia. we have to do better. that's virginia. now, let's go to kentucky. but for the independent, who ran, a libertarian, he siphoned off 2% of the vote. but for that siphoning off, bevin would have -- stuart: you think the libertarian took the votes away from bevin? >> no question about it. now the recount. or recanvassing. kentucky as of right, you can't have a recount. you have to go to court. you have to prove that a recount is necessary. now, what i'm doing is huddling with lawyers, huddling with political people to understand where the votes could come from. you have to be pragmatic because the courts are going to be the ultimate arbiter in this case of whether you are entitled, but let's say kentucky --

stuart: you going to press for a review or recount, whatever you want to call it? you going to do that? >> it all depends on what the political people tell me as to where are votes likely to come from. he should not be engaged as a sitting governor on a fool's errand. if you lose, you lose. all the down ballot candidates won handily. this isn't about -- i think it's more about the sitting governor losing the race, the personality and the politics, than it is anything else because when you go down ballot, we have a new attorney general, the first african-american attorney general in kentucky who is a republican. so republicans did fabulously well in mississippi. so there was a little something for everybody last night. but i think republicans overall did very well. virginia is concerning because virginia is a battleground state. but trump didn't need virginia last time. stuart: that's right. brad, thank you very much for joining us. see you soon. thank you, sir. you've got to check out

uber. i think it's another down day. yes, it is, down 2.5%. their lockup ends today. that means early investors can sell their shares if they wish. ashley: 763 million shares suddenly become available. stuart: down -- ashley: not a steep drop-off at all. stuart: i want to see how this thing closes. ashley: exactly. stuart: gene munster is coming up. i want to know if i should buy uber at $27 a share. we will also get his thoughts on apple, this is apple, storing massive amounts of data in china. does this give beijing access to our personal data? we will certainly ask him. apple is down a fraction. now this. the u.s. has collected a record amount of money in tariffs in the month of i think it was september. that's right. we will tell you how much. we have our top trade guy to break it down for us. ♪

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stuart: a development on tariffs. our treasury has collected a record amount of money from tariffs in the month of

september. come on in, edward lawrence, who is going to tell us how much. go. reporter: when the president says billions are pouring into the treasury, he's right. the latest monthly treasury report shows $7 billion in tariffs were collected in the month of september. that's a record. but it's also 50% more than the tariffs collected last year in september. now, i talked with economists who say yes, that's a drag on the economy and yes, though the economy is still doing well, those economists say imagine if the tariffs on chinese goods just weren't there. now, as it stands, the amount of tariffs collected in september is a record but so is the amount of tariffs collected in fiscal year 2019 so far. it is eclipsed last year's total record. the u.s. collected 70% more tariffs this year rather than last fiscal year, and those increases coincide with the chinese products 25% tariff on $250 billion in chinese imports and imposition of 15% tariffs on some of what the rest of china imports into the united states.

a little nugget for you, stu, so far in general, those tariffs on those chinese goods are being absorbed by companies. we are not seeing that inflation pressure as of right yet, but some within the federal reserve, they do believe that once the uncertainty goes away, that inflation may come back. we'll see. stuart: did you see chelsea play ajax yesterday afternoon? reporter: i did. i did. ashley: good man. stuart: we do apologize to all of our viewers who haven't a clue what we are talking about but there was a fabulous soccer game yesterday. reporter: two red cards in that game. i have not seen two red cards in a game. stuart: two red cards, two penalties, 4-4 tie. what a game. thank you very much, edward. we appreciate it. ashley: ignore the buzzer. stuart: we are totally ignoring the buzzer. of course we are. so is edward. he's a good man. here's a question for you. get off the screen, edward. if health care is a top issue in the election, how can republicans lose when the democrats are all talking about

medicare for all, the impossible plan? mike braun is our health care senator. he joins us next. ♪ we're carvana, the company who invented car vending machines and buying a car 100% online.

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stuart: you know, this market really isn't going very far. at the moment, the dow industrials are up .18. i'm going to call that dead flat. okay? let's move on. medicare for all, that is senator warren's plan, and it's slated to cost, what, $52 trillion over the next decade. senator mike braun is with us, indiana republican. we think of our good senator as our health care senator. let me ask you this. if the democrats run with medicare for all, at this vast cost, how on earth can republicans lose on the issue of health care? >> there's no way we can and what amazes me, stu, been here just a little over ten months, it seems like most of my cohorts cut class on eighth grade math, and especially finance 101. $52 billion, even if that's not the right figure, trillion, i

mean, you divide that into ten years, that's the size of our federal government currently in terms of what we spend. so it is complete crazy talk. i think that's why the president is going to get re-elected in november of 2020 because none of these plans make sense. there's no way you can pay for them. stuart: i just want to check one detail which i have not seen before. is it correct to say that warren's medicare for all plan would put veterans benefits at risk? is that accurate? >> it would in the sense of when you are going to spend that much money, how would you spend money on all the other programs, because they never talk about how they are going to pay for it. you cannot keep borrowing money at the tune we are currently doing which is a trillion dollars a year in deficit, so until there's any discussion of how this would work, and when she talks about a wealth tax, she talks about you couldn't tax the top two quintiles of all their income and pay for this

stuff. so it's really fantasyland. for those of us that understand what it will take to reform the health care system, it gives us a lot to talk about. stuart: senator, last one here. i know you are hot on health care price transparency. you often talked about that with us. give us an update, please. >> so the only way this doesn't work for enterprisers and the health care system is if they keep digging in to where they don't want to embrace competition and transparency, and sadly, when i had to take them on 11 years ago in my own insurance plan, it was like pulling impacted teeth. so it is -- all the ceos that run these large health care corporations know what needs to be done, and i tell them embrace it, fix yourselves, or you're going to have bernie sanders s e

your business partner. stuart: you think that's likely, really? you really think that's likely? >> if they keep fighting it the way they have so far, because they don't want to give up the gravy train they have been on, we will lose what is the best health care system. it just costs too much. they know what needs to be done. they need to have the gumption and the will to start reforming themselves or yes, it could default, politically cascade to some type of medicare for all. that would be a disaster if it occurs. stuart: yes, it would. i come from a country which has health care for everybody, et cetera, et cetera, et cetera, and it's just not working real well. senator braun, thanks for joining us, as always. thank you. >> you're welcome. stuart: i will stay on health care, bring you this. cvs, pharmacy guys, reported earnings earlier. profits up, thanks to their partnership with aetna health insurer. that's doing a lot of good. the stock is up 4.7%. that's cvs health corporation.

humana, health insurance guys, up big as well. solid revenue. their ceo chalking it up to an expansion of their medicare plans. they gave a rosy forecast as well. you do that and the stock goes up. nice gain. 2.8% on humana. if you have been catching more robocalls lately, you are not alone. i thought congress was doing something about this, but we have had a record number -- lauren: a record number. 5.5 billion, "b" like boy, billion calls in the month of october for americans. three states being targeted the most, people in new york, california, texas, they have been targeted. in fact, the average person in each of those states has received 17 calls per month. this is a record, worst ever. to your point, there are a few bills let's just say floating around the house and the senate. there are new rules in place by the fcc. long story short, the bad guys are winning. they have different tricks. they are going through lines like internet call lines so not

exactly traditional phone line, so they can mimic local area codes. so you're not sure if it's from your area code where you live, maybe you pick up because you're not sure if it's a family member or a business that you forgot you were interacting with. however, this group called robokiller, they are in d.c. this week, meeting with members of congress this week to try to get this under control. stuart: i hope they can do it. it's one thing after another that has not worked. ashley: we complain about it, about once a month, and a number of calls just get larger and larger. stuart: the worst thing is that a lot of these calls are from so-called debt collectors. deirdre: that's the number one category, almost half the amount of calls. when you pick up the phone and somebody says you owe money even if you know you don't, you think wait a second, do i owe? it begins to -- telemarketers, credit card officers, health insurance, banks, those are the other categories but debt collector is almost half the

calls. stuart: i got several telling me arrest warrants were out for my arrest. ashley: yes. deirdre: i got a call saying something about somebody had my social security number so i should call this number back. what i read online actually, because i did, i was like well, that sounds bad, i went online, it said the federal government will never, ever, ever contact you by phone. period. paragraph. if the government needs to get in touch, you will get something via mail. stuart: that's worth knowing. deirdre: it is worth knowing. ashley: me sending some money to the nigerian prince last week was a bad move? stuart: will you never learn? ashley: i will never learn. i send money to nigeria. what can i tell you? stuart: i'm going to call this an eye-rolling story from the formerly golden state. that would be california. the feds now have i'm going to call it a back door to your social security numbers. i guess through, what, the dmv in california? ashley: california department of motor vehicles. i spent many an hour myself in

one of those. yes, they left the back door open for seven federal agencies for more than four years. they were not supposed to have access to your social security number. what agencies, you ask? how about the department of homeland security? the i.c.e. guys? then the internal revenue service. they always find a way to get to you. the irs, among others. they have the social security information of more than 3,000 people who were issued driver's licenses. all of those people were contacted. if any of those agencies actually got access to their number and used it or gained that knowledge. you know, look, at least it wasn't out in the world, world, just for any third party selling it on the dark web. but there again, it's just another example. stuart: it's not a data breach. ashley: no. stuart: in the classic sense. it's using the back door to get information out of california, and california didn't like it so they stopped it. ashley: right. stuart: okay. ashley: that's it in a nutshell. very good. stuart: thank you very much. fbi director christopher wray

has testified that apple is storing massive amounts of data in china. we are going to talk to gene munster about this. what does that mean for your personal private information? we'll be back. ♪

chinese law essentially compels chinese companies and typically compels u.s. companies that are operating in china to have relationships with different kinds of chinese companies to provide whatever information the government wants, whenever it wants. stuart: all right. there you have it. that was fbi director christopher wray. he says look, apple is storing vast amounts of data in china. that's a security concern. apple watcher gene munster is with us now. if data is stored by apple in

beijing, does that mean beijing has direct access to our personal information? >> stuart, i want to first assure people who have iphones and apple products outside of china, that this has no impact on them. apple continues to be i think the gold standard when it comes to secure products and privacy ahead of other phone manufacturers and other data website apps we interact with. that said, china complies with local law -- excuse me, apple complies with local laws. in this case, china has laws around data collection. so an apple user in china presumably is going to have some of their data, it's hard to say exactly what parts of the data, some of that data is going to have -- the chinese government will have access to it. that should not be news. the concept that china has a heavy hand is well known. i think that one piece that is maybe worth enumerating is that if you are talking with someone,

interacting with someone on an apple device, as in any device in china, you should always be careful about what you say. stuart: does it compromise apple? because i remember apple put up a billboard in las vegas. the billboard said what happens on your iphone stays on your iphone. is that statement compromised by the storage of data in beijing? >> in the u.s., it's not. if you look at outside of china, it's not. does that statement stand in china, i would unfortunately think that the truth is several layers below. the fact that you bring it up, first of all, i think is a sign that they do have a p.r. question plate here. i ultimately see this as you have to look at how things are done in china and i think it's still probably the most secure product within china but there is obviously an asterisk to that statement. stuart: okay. gene, you follow uber. so do i.

the lockup period ends today, so early investors can sell their uber stock if they want to. i believe the stock is still down sharply at this point, back to $26 a share, i think that's where we are. $26.84. should i buy it? i really want to get into this industry. i mean, ride sharing to me is fascinating. i want to be a part of it. should i buy uber at $26, $27? >> i think you should -- better for you to buy lyft. i like the idea of wanting to own one of kind of the leadership companies with the future of mobility that is probably going to be one of the most obvious ways technology is going to impact humanity over the next decade is in how we move around. i applaud that view that it's a good segment to own. i think that the better money is probably on lyft, given their more focused approach, it's probably a cleaner path to profitability which is something investors are looking more keenly to. stuart: is that what it's all

about? if they get to profitability, the stock goes up? what about the idea that this is a massive global industry, global business, for uber, and that they reinvest a lot of the money that they take in, a little bit like amazon. there are two views here, aren't there? i mean, do we buy only when they are looking towards profitability? or do we buy when it is a mammoth global industry? >> i favor the latter, the mammoth global industry approach. but ultimately, in this case, in the case of both lyft and uber, they are talking about profitability in 2021. that to me is a reasonable time frame, where you get some visibility to profitability but also, you have this investment phase around this mammoth global opportunity. so i would answer the question that i think ultimately, you want companies that have a massive addressable market. that's first and foremost. but you -- and i think you can stomach a couple years of losses to get to this opportunity, but

you cannot have losses into perpetuity and i think that's one of the challenges with the uber story. stuart: a billion dollars every three monthses n is not a good to make. that is a fact. thanks for joining us. >> thank you. stuart: i'm breaking in here with news from capitol hill. adam schiff, chair of the intel committee in the house, just said that open hearings on impeachment will begin next week. that's actually a week from today. he made that announcement to reporters. now, does that mean we are going to see this stuff on tv? i don't know, frankly. is this a televised hearing? anybody know that? ashley: it's supposed to be. isn't this the public phase? we are supposed to get the rules and regulations of this and a big part of it's not behind closed doors, it's supposed to be out in the public. so to your question, i would think so. i would hope so. stuart: i have been saying that impeachment makes no difference to the stock market whatsoever. but when that announcement was made that public hearings begin one week from today, may be

televised, i don't know, when this announcement was made, we suddenly dropped to a minus 50. we have come all the way back to minus 29. i guess this has not affected the market. deirdre: there are headlines coming through about president trump and president xi jinping of china meeting to sign u.s./china trade deal. it says it could be delayed until december. normally that would actually pressure the markets but it says discussions are continuing over terms and venue. as we know, they were supposed to meet in chile. that was pulled obviously by the chilean leaders. too many riots i assume was the big reason for that. this, by the way, is according to a senior trump official. so the official is saying it is still possible for the u.s./china trade pact to be reached, but -- and a deal is more likely than not. stuart: okay. let me repeat that. it's still possible for a deal to be reached and a deal is more likely than not. ashley: correct. stuart: that's a little tepid.

deirdre: in some ways they are saying also, i probably shouldn't be laughing, we are just trying to find a spot where to meet. there's a list, switzerland, sweden are right now among sites being considered. iowa is being called not likely. we know president xi jinping actually spent some time in iowa as a student so there were some people saying well, that could benefit the president. president xi jinping would be happy to go back there. that seems to be off the list at the moment. china is pushing for more tariff rollbacks, by the way. stuart: yes. yes. that would be a positive if that came to pass. but what we've got now is a statement saying it's still possible for a deal to be reached, and a deal is more likely than not. again, i think that's rather tepid. ashley: it is. stuart: because we have been moving towards as if this thing was going to happen. ashley: it might not. it's kind of a nothing statement. stuart: that's right. that's what you don't want. what you want is a more positive development. look, it's going down. the market is now down 48. that's not a big change. i got that. but it is -- now it's down 50.

i don't think that's a huge positive on trade. deirdre: one more odd strategic headline here. senior trump administration officials says he believes china sees quick trade deal as the best chance for favorable terms, given trump's electoral and impeachment pressures. if i were the chinese, that would make me relax even more. right? stuart: who said that? deirdre: this is coming from a senior trump administration official, says he believes china sees a quick trade deal as the best chance for favorable terms. so at least the way that the white house is reading it is that china actually wants to hurry up and make a deal because they see president trump under pressure. to me that's the exact opposite from any of the experts i have spoken with about how the chinese see things. that to me seems black when it's white. stuart: you see what we are doing? we are parsing every single word, how they are strung together in phrases, how will the computers read this on wall street, answer, it's neutral.

it's neutral. down about 30 odd points. a whole lot about nothing. the idea that a senior trump administration official would say china sees a quick deal as the best way to get favorable terms, that is a truism. i mean, it's a statement of absolute obvious truth which could be taken different ways. that's what's going on right now. what a life. the market did move on it. deirdre: i was just going to say, that's a sharp move down. stuart: i originally put that down to impeachment hearings going public one week from today but i don't think that's got anything to do with it. i think it's the china trade. deirdre: well, i also think if you are the chinese, the best thing in the world for you is a u.s. president under pressure. what better conditions to negotiate in? stuart: yes. that's what the chinese are banking on. that the president is under pressure from impeachment. deirdre: if you believe this headline it's why they want to hurry up and make a deal. to me that doesn't make sense. stuart: now we are down 60 points. okay.

i think the market is taking this as a mild negative. not a huge pop. you see what i'm doing here? i'm in real trouble here. i sound like a lawyer, don't i? deirdre: we can all go back to school. ashley: the indices have turned negative. the nasdaq down about half a percent, quarter percent on the s&p and dow. yes. a negative sentiment, perhaps. whatever that means. deirdre: i was just going to say, i think my read unfortunately right this second is what the market seems to be reflecting. i could be wrong. stuart: is edward lawrence available? edward lawrence is available. i know he's got his mic on. i can hear him breathing heavily. edward, bring us up to speed here. what has just been said? be declarative. reporter: this is reuters reporting from a senior administration official. it appears they are looking for that venue, which is what we have been reporting for a long time, the discussions are to try to figure out where they can sign this phase one deal.

that's the delay that they are talking about in this headline where it says china trade deal could be delayed until december, as discussions continue over terms and venue. they are really looking for that venue in order to -- so both leaders can sign this. it appears here from these headlines, they are looking, they mentioned sweden, they mentioned switzerland as a site, saying iowa not likely. it is interesting, president xi wants to show strength within china so coming to the united states may undermine that a little bit. president donald trump wants to show strength in the united states, so going to china to sign something may undermine that a little bit. so a neutral site makes sense with some of this stuff. but again, the exclusive china pushback for more rollbacks on tariffs seen derailing the process and this is something china has been on about, about the trade tariffs. they want to get those tariffs removed any way they possibly can from this. that has been their goal from day one. now, the president has been open

to pausing further tariffs when he sees progress towards a trade deal, as we have seen here in the past and the chinese sources are telling us that they are okay with rolling back their tariffs in a trade deal but again, these december 15th tariffs are really an issue for the chinese. they would like to see those tariffs go away and that is a negotiating point, it seems, right now. stuart: let me break in for a second, edward, because seems to me that what we are talking about here is a delay in the signing of phase one. and the delay is because they can't find a venue, but also far more importantly, they haven't really agreed on the terms of phase one. that's why the market is down 60, 70, 80 points. it is the terms. reporter: they have been working on the language. stuart: but that's the point, isn't it? who cares where they meet? i don't care if it's the north pole. i don't care when it is. but the point is if they are still discussing the terms of the deal, that's not good news. that's why the dow is down 77.

where am i going wrong, edward? reporter: that sounds like a right assessment. it does say, according to this, if you believe reuters, they are talking to a senior administration official saying discussions continue over terms and venue. but we can tell you that they have been working on that language. you know, they have agreed in principle to the broader strokes of this and are trying to get that language down on paper, and that's where there may be some discussions. we've got some calls in on this. we will get some more information. stuart: it's a mine field. that's what it is. it's a mine field. take any step in any direction -- ashley: tip-toe through. stuart: edward, you're all right. thanks for joining us again. we appreciate it. thanks very much. dow is down 77 on what i would call mildly negative china trade news. we okay with this, sports fans? ashley: we'll take it. tepid. stuart: new york city, your next -- well, not your next cab ride, but one in the future could be in a tesla model 3. yes, new york city. we'll be back with that in a

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stuart: here is a story for you. new york city gives a green light for the tesla model 3 to operate as a taxi. i don't know when it is coming but it is coming. ashley: the first all electric model, is it it not? you have to be a new york cabbie to drive it. you have to get the medallion before you can paint it black. >> need that and yellow paint. stuart: the story on medallions they used to be worth a million dollars each. but along came uber, ride shares. that market in medallions crashed. i think they're virtually worthless t bankrupted a lot of people in new york.

>> provoked suicides for people that put life savings into that. stuart: it did. here is new stuff coming at me. elon musk. he tweeted this. here it is cyber truck unveil on november 21st in la. ashley: l.a. stuart: never live it down. in l.a. near spacex rocket factory. i think i can read. ashley: what is frightening? cyber truck. how many stories we do on cyber hacking. if you want to hack, a truck is dangerous thing. >> ore programs not to recognize pedestrians there is a million innings things. stuart: what is a cyber truck? self-driving? >> self-driving autonomous. stuart: is this a new word, cyber truck is self-driving truck? >> or engineer not in the truck. not a driver. but you have a engineer on site.

not in the vehicle. ashley: cyber truck, a electric pickup truck. stuart: like my ford f-150? ashley: we'll find out on november 21st. stuart: not the great big semi-truck? >> probably meant to ferry gear. stuart: before we get close we get in a story on the china trade story. that broke five or six minutes ago. when it broke the market sold off. at one point we were down 80 on the dow. now we come back. we're down 48. what was the news? what took us down? a statement from reuters, still, china and america, discussing the terms of phase one and the venue for signing phase one. if you're still discussing the terms, who cares where you sign this thing. like i said it could be no the north pole as long as you get the thing signed anyway but if you're still discussing the terms, that's not good. that means you haven't actually

finalized it. you're close but you haven't finalized it. any kind of even mild negative on china trade puts that market down. that is where we are. down 50 points. my time's up. neil, sir, it is yours. neil: thank you, stuart. another reminder, trade dictates the course of the market here. two breaking stories we're on top of right now. the quest for open impeachment hearings set to begin as soon as next week. the president's counterpart in japan possibly putting off a signing, if there is to be one, until december as the soonest. that is next month. the fact of the matter stuart raised, they don't even have all the is dotted, ts crossed, that might be a moot point. we have the dow down 49 points. off record levels. not that much. blake burman at the white house keeping track on developments. on the china thing. do we know? reporter: let's start there. here is what is important to