tv Varney Company FOX Business April 19, 2017 9:00am-12:01pm EDT
>> my thanks to my all star amazing panel today. that will do it for us, see you tomorrow. "varney & company" begins right now. stuart, over to you. stuart: thank you very much indeed. i'm going to call it a sigh of relief in the republican party. the democrats came up short, there will be a runoff in georgia. good morning, everyone. with most votes counted, the democrats failed to win outright. john ossoff took 48% of the vote and will go up against karen handle in june, republican. this was seen as a referendum on president trump. and he tweeted glad to be of help. the republican party have pledged to rally around karen handle and a referendum on the democrats' resistance. ossoff brought in 8 million of largely outside money, hollywood played a role. he doesn't move the needle that much and facing a divided opposition, 11 republican opponents. bottom line, the democrats
failed to flip the conservative seat. the republicans dodged a bullet. next, this is good for every-- for businesses. scale down your tax reform hopes. instead of a broad rewriting of the tax code, look instead to what republicans think is doable. that is, a cut in corporate tax rates first. presidential advisor pete navarro and noteables are saying the same thing, do what you can because you won't get everything you want. "varney & company" is about to begin. ♪ . >> we do not believe, based on the information we have today, that this is a terrorist-related crime. based on the information that we have been provided and our investigation has shown is that
this is solely based on race. stuart: that's the fresno police department there responding to the man who killed three while yelling allah akbar. details, ash. ashley: yeah, kori ali muhammad, gunned down three in minutes. and expressing a dislike for white people and did shout while being arrested. they believe it was racially motivated as opposed to terrorism or the like, and charged with four counts of murder. accused in a murder the previous week. stuart: we're going to ask the judge in a moment whether this was a hate crime or terror. how about your opinion? what was it. ashley: in the days leading up to this, 40 separate postings on the facebook account, calling for, i think it was the
black army to rise, blaming white people and governor officials for all sorts of no good. to me it sounds more racially motivated, yeah. liz: yeah, it sounds racially motivated. i don't know why he's shouting alu akbar. stuart: who knows, go down as a hate crime. the judge will be with us momentarily. i want to go to the special election in georgia yesterday, it's headed for a june run-off. democrats dumped a lot of money in, but democrats did not win. the republicans, i'm going to say that the republicans dodged a bullet, what say you? >> i think they definitely did. because a win here for democrats would have energized the progressive activist base that's been turning out in town halls and demonstrations since the election. they dodged a bullet. i think there's emphasis on
this being a conservative seat and it only went for trump in the election by one percentage point. it wasn't as if the republicans, it was a slam-dunk for them. i will say that the candidate who ran, 30-year-old basically with almost zero resume', who was described by new york magazine, amongst others, as being paralyzingly boring, so, this is not a message-driven race. this was a race about money, and basically resistance to donald trump, and it failed. which i think is great news for republicans. stuart: i could read this as being, this was pro trump. in fact, mr. trump tweeted at the last minute, asking for support. maybe he went over the heads of republicans, appealed directly to voters, support me. maybe that worked. >> well, apparently it did. and when you consider that there were 11 republicans splitting the vote, i mean, that's pretty tough no matter what the circumstances, right? so, i think it's actually pretty remarkable that they got this below 50% which is what
they needed to do. so, now, the republicans can coalesce around the candidate. bring in some money, there were very little republican money to go towards this race and now there will be. stuart: we'll see what happens in june. stay right there, liz, please. i've got to check the markets for you, as we go into the wednesday session. we're going to be up at the opening bell. 30, maybe 40 points. and that underestimates the gain and i'll explain that in just a moment. look at individual stocks for a moment. morgan stanley, they reported profits this morning that were up 74% and that's a very nice jump. i don't know why that stock is-- that's not premarket. that's yesterday's close, i believe. they were helped by a lot of trading activity, big jump in morgan stanley profits. a whole lot less money coming in at ibm. that's going to be way down. ibm is a dow stock and the down side movement in ibm stock takes 60 points after the dow industrials. that's why a gain of 30 or 40
points for the dow underestimates the actual gain. a couple of stories from facebook for you. first of all, mark zuckerberg addresses the cleveland murder where the video was posted on facebook. second story, facebook plans from really, i'm going to call it gee-whiz technology which ydz. ash, what's this augmented reality? >> okay, so pokemon go, i know you're a big fan of that, you can incorporate digital cartoon figures through, into the real world, looking through your camera. in other words, you're adding a layer of virtual reality. stuart: onto reality. >> onto reality. through a filter, like snapchat when you put bunny ears on your head which we all laugh at. stuart: go ahead. [laughter] >> mark zuckerberg says that technology will ultimately revolutionize everything, a $5 television could be replaced with a $1 app.
the question is, how do you, in what form, platform to you use. google glass, you remember, was the first real attempt at that and failed miserably for privacy reasons. mark zuckerberg says you need to get away from the phone and maybe glasses will allow you to put lahrs. >> you can leave virtual notes on restaurants and friends access, try the lobster, it's brilliant, something like that. >> the breakthrough has to get away from the giant head sets and more easy to use. liz: they're bulky looking. stuart: i can see that. i understand it, i'm looking at reality. ashley: correct. stuart: immaterial -- i can impose objects into that reality. ashley: well done. stuart: we had a long production meeting trying to make me understand what it's
about. >> it's imposing rabbit ears on you. stuart: quite napolitano! . [laughter] we've got a serious questions to ask the judge here, let me back up a little. i want to get back to the results in fresno, a black man hated white people shot and killed three, he posted a video of one of the killings on faibz facebook, caught and shot himself. as he shot he called alua akbar. >> hate or terror. >> there's a federal definition of terror, two or more violent acts. he committed two or more violent acts, he killed four people, intended to change the policy of the government. probably not here. stuart: doesn't meet that test? >> before we get that, the reason for characterizing an act or acts of violence as terror related or even hate-motivated, is to enhance punishment.
if you're in a state that does not have a death penalty and these murders are an act of terror, the feds can take over, prosecute, convicts and get a jury to impose the death penalty. if you're in a state that does have a death penalty, which is the case here, and a state that uses its death penalty, which is the case here, california you don't need the enhanced punishment of a hate crime and don't need the federal jurisdiction and prosecution of a hate crime. stuart: nobody's going to be executed in california. >> well, it does take a long time. they do have the-- they do have a huge death row, it's not texas or florida, but he can be exposed to the death penalty, probably convicted and probably sentenced to death so no good purpose would be served enhancing. stuart: to me it doesn't matter that much if it's hate or terror because the impact on our society is the same. it's random killing on the street.
>> if it is terror, it might be part of a network, that is the fear. this does not appear to be that, so, sometimes terror, hate, nonterror, nonhate is semantic, unless they're connected to groups, international groups that are methodically attempting to cause us harm. stuart: sounds to me reading between the lines, you don't think it's terror, you think it's hate. >> i do, i think it's an ordinary criminal prosecution for first degree murder with a likely conviction and likely death penalty. whether they use the death penalty in california, the average wait time 20 years. stuart: they haven't executed anybody-- >> no, entirely different human being by the time you're executed. chestnut was not the last, but-- >> in california he was? >> no, they've he is cuted since then, but it doesn't seem that long account. stuart: back with you shortly. now president george bush, sr., he's been hospitalized, 41.
liz: remember, he was hospitalized, at methodist hospital. pneumonia. he's on the mend and he had it in january. he was coughing, couldn't sleep. now he's in good spirits. his 93rd birthday is coming up and should be noted he has a form of parkinson's disease as well. stuart: 93rd birthday, god bless him. a terror plot in paris foiled, they were planning a pre-election attack. the first election round is on sunday. we're on it. vice-president pence says if the north koreans test a nuke, america is ready to respond. and trump's economic advisor, one of them, peter navarro said here yesterday, a corporate tax cut is a priority. tax cuts for individuals, you might have to wait until next year. [laughter] >> have a nice day. we will be back.
>> well, look at this. we're going to be up about 40 points at the opening bell, but that does not tell the whole story. one of the dow 30 stocks is ibm. ibm is going to be way down this morning. it will take 60 points off the dow. so, if it were not for ibm, the dow industrials would be up almost triple digits. bear that in mind. national house trade director peter navarro, he was on the show yesterday talking taxes, roll tape. >> we need a tax bill that's consistent with president trump's promises and we need that as soon as possible. remember, during the campaign, one of the most important promises was to lower that corporate tax rate so that we could keep companies here and create a bunch of jobs. so, yes, we need tax reform. stuart: ah, did you hear that? corporate tax cuts a priority.
guess who is with us, david mcintosh, club for growth, a man who i disagreed with on other issues, but-- >> today we're in total agreement. stuart: tax cuts, i think that the republicans are zeroing in on what is doable and that is a corporate rate tax cut. are you with me? >> i agree. i think they've got to also make sure they call them pass through to small businesses that run on the individual tax forms, get the same tax cut. but when we cut both of those rates dramatically, we will see tremendous economic growth. stuart: i think they're talking about just cutting corporate tax rates. they're going to leave personal income tax cuts aside for the moment. >> i think in the end they'll need subchapter s and llc's. stuart: you can do that? not a big deal to include that in there? >> no, what it leaves out border adjustment taxes that are divisive. i think they'll put that aside and focus on the tax cuts. the president promised those, the central piece of his tax plan and they'll get it done.
stuart: yes, but, what about people looking for a cut in their personal income tax rate? that's going to-- now, there's an article in the new york times, i know you've seen it, they're chiming in, do the corporate tax rate cuts first and leave personal income tax cuts until next year. >> do that in an election year when people are looking and deciding how to vote. stuart: so you agree with it? >> i'm in favor of any of the tax cuts, get as much as you can get done. stuart: you changed your tune. if you're on our air saying we can't have health care reform, we don't get all we need, we're not going to vote for that. >> i've got good news for you. i think the republicans holding out improved the bill and i think they're about to reach an agreement with the president and conservatives. we'll see. everybody has been working hard over the break and i think they can get it done now. stuart: you're telling me.
>> we're running ads in moderate districts, vote for the new bill that takes care of the insurance costs. stuart: so you've learned your lesson. >> and the bill moves in our direction, we're happy. stuart: now, what you're saying here, that's a rather rosie scenario. if you did indeed get a health care measure passed, relatively quickly. >> yeah. stuart: and everybody could agree on it and you say they're close. >> they are. stuart: and you follow that up with cutting the corporate tax rate, that's all doable and that's very good news. >> this year, it will send the markets even further up. it's tremendously pro growth. the health care bill itself is a big tax cut and then on top of that, if you can cut the corporate rates, you've got to take care of the pass throughs and cut their rates, also, and then unleash a tremendous investment and job creation. stuart: so you had to drag you all the way to new york to get you to say something good about the future of the legislative agenda of president trump. >> i've always said, i'm for his conservative pro growth policies.
it's the ones that don't grow the economy. stuart: okay, okay, okay. leave that aside. >> leave well enough alone. >> lets he a sing kumbayah and mcintosh, you're all right. president trump says enough is enough. stop looking down at blue collar workers. stop this european elitist mentality. what the president said precisely after this. think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at
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>> i'm fascinated by the skills gap. the existence of opportunity is-- shouldn't be a polemic, it shouldn't be political, but of course, everything is. 5.6 million jobs that exist as we speak, 75% of which do not require a four-year degree, are sitting there they require training. stuart: i like that guy. dirty jobs guy, talking about blue collar jobs on this program and now president trump is calling for more blue collar jobs and technical training, too. watch this. >> when i was growing up in queens, we had vocational schools that were great. we don't have schools like that so much anymore, but we're bringing them back, vocational schools. these are very talented people that love that type of work, and it's great work. stuart: you know, liz peek,
he's just revealed an essential truth, hasn't he? it's great work and we're underserving those people. >> yeah, and by the way, it's one of the greatest mistakes our education system made many years ago to get rid of two track, and some people were encouraged to go to the different track because they weren't equipped to go to college. that was demeaning and some sort of second class citizen on that. and we have a skills gap and don't have people trained. when angela merkel was here, that began donald trump talking about vocational training, he cited germany as having a brilliant vocational system and youth unemployment is way below ours so it works and gives people, young people particularly the skills to get a job. liz: same with finland, be an electrician or a plumber, and
get paid a lot of money. the elitists hijacked the country, the hotel model, building out cafeterias, and white elephant stadiums and hijacking middle class family and existing on the taxpayers nickel. stuart: since when did you have to have a four-year college degree to participate in the american dream. ashley: that's what's being sold though, the elitist view. that's what it is, elitism. it reminds me of england and europe in general where you look down on the working class. ashley: oh, yes, yes. stuart: it's detestable. liz: who are paying the taxes that fund this. stuart: i would love to see the president break right through. i'm sorry, liz. >> the left wing head of the department of education in new york, i've heard her talk now about vocational training being a positive thing. stuart: that's a breakthrough. >> but because she understands that people need to make a living. stuart: we're going to open
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average closed yesterday at 20,523. we're likely going to go up 30 or 40 points from there, when that opening bell rings in 10 seconds. watch out, however, the overall performance of the dow will be affected by one of the dow 30 stocks and that's ibm. here we go, everybody. wednesday morning, we're off and running and i see a lot of green appearing there. it looks like, well, i guess ibm opened and that's why the dow went down right from the get-go, but there's a lot of green on the other side of the coin right there and you will see it in the dow industrials, there we go. now, we're up 9, we're off and running and i think we're-- up 13 points, there you go. you see bottom right-hand corner on the screen there, ibm, big, big loser. ashley: down 5%. stuart: down 5%. that really, really hurts the dow industrials. ibm coming through and that takes 50 points off the dow, okay? so with the dow now up 12, you could say it's more like 60. that's ibm.
we'll deal with that more in a moment's time. different story at morgan stanley, a 40% jump in the quarterly profit, in the gains from trading activity. up 3 and 3/4% on morgan stanley. facebook, zuckerberg finally addresses the cleveland shootings and says the company needs to do more and by the way, facebook has big plans for something called augmented reality. we will try to explain that to you in just a moment. it's a very big deal. who is with us? ashley webster, elizabeth macdonald, liz peek, shah gilani. i'm going to start with this. it looks like the republicans and the administration are focusing on a slimmed down tax plan. a slimmed-down version which would focus primarily on a corporate tax rate cut. shah gilani, do you like the sound of that? >> something is better than nothing, but i don't actually like the sound of this. i would love to see them marry
corporate and personal income tax cuts and that would give donald trump some support, general public support, support from democrats which he hasn't gotten. this will be a fight to get corporate tax cuts. stuart: i don't agree with you. they won't be on board with it? >> they'll fight tooth and nail and wait until next year, you wanted corporate tax cuts, we fought you on this and now give us this. i think it's going to be a battle. i don't know how much they will be able to get through. stuart: i think if you cut carpet taxes, business and republicans are on that side. if you cut the tax rate for people repatriating their profit why of from overseas and spend it on infrastructure, democrats would go on that. >> depends on the structure of the corporate tax cuts and what they do from the repatriate frch revenue. i think he needs to fix it and
the way to fix it, cut personal taxes. stuart: i think you're totally wrong, shah gilani, none of the less, i'll turn it liz peek. >> i think it would be great to cut corporate taxes, as we heard from a guest earlier in the segment, it's important to include people who are running businesses and file as individuals. that's a big sector and those are the people who really need a tax cut, not perhaps you and me. i know it's horrifying to hear, but the people who run businesses and file as individuals really need a tax cut. and i think, i'm kind of with shah, i'm not sure that democrats are going to go along with this. the liz warren faction is going to say it's a corporate give away and have all kinds of resistance to the idea that corporations get tax cuts and by the way, if they get tax cuts they're probably going to have to get rid of a lot of deductions and other kinds of reasons that tax corporations pay. liz: they've got to sell it as a jobs package. it's like tracking nasa in a hurricane, with the ideas
throwing around, carbon tax, a vat, focus it. stuart: you're all deflating the good news here. liz: oh, it's on the table. stuart: this is doable. >> maybe. stuart: a tax cut that you can get done and get done this year and it will have a measurable impact on future growth. ashley: the standards have come down considerably. [laughter] >> my taxes, now you're grabbing onto anything that's possible. don't say it. >> the market likes something in here and anything, if we get anything along corporate tax cuts, it will be great for the market. stuart: the market is up this morning because profits are good and they're focusing on a corporate tax rate cut. >> let's say, republicans promised to go big on tax reform and that's not going big on tax reform. liz: they don't need tax reform. stuart: tax cut. >> they need simplification. liz: cut the taxes. >> i think we should have boxing gloves and go at it,
what they should do in congress. stuart: i'm moving on. facebook, getting into -- getting into something called augmented reality. i'm not sure what that is. [laughter] . ashley: augmented reality, that's something. stuart: ashley did a great job of explaining augmented reality to me earlier and we're going to ask him to do it again. ashley: i forgot what i said. okay. this is taking the real world and imposing a digital image into it. i'll start with snap chat. you can take a picture of yourself using the app and put on bunny ears or a dog nose. take that further, mark zuckerberg envisions a world, point your camera at a bowl of cereal and an app puts tiny sharks swimming in the milk. the question, do you always have to use a camera on the future? he says glasses in the future, let's not forget the google class.
ashley: incorporating images in the world and virtual messages on the walls for friends. go into your household and replace the big old tv with an app that will give you the same view through your glasses. we look at futuristic stuff. we're a long way from that, but we're getting there. stuart: that's what zuckerberg is about, he's looking down the road, he wants a community in which everybody is linked, totally linked. ashley: in the virtual world. liz: sounds crazy to me and he also wants your thoughts, you know, put on the internet. he's looking for science behind that, and product behind that. i don't want my thoughts on the internet. >> exactly. [laughter] >> i'd be watching. liz: no, you wouldn't. stuart: let's get a grip, everybody. please. look at the price of oil. hovering around, 52, $53 a barrel and we're now up 8 points 52 on the price of oil. gas holding dead steady. the national average for regular is still $2.40. now this. disney, they've got espn,
reportedly ready for another round of layoffs at espn, this is the cord pulling people. disney at 114 this morning. yahoo! reaffirming that the verizon deal will close in june, so what, it's up 8 cents on yahoo!. higher profit at u.s. bancorp getting a boost from an increase in loans and the stock is up all of 13 cents. morgan stanley, that's a big winner. that's the story. they reported better profits, much better profits. i say, shah gilani, there's a 3% gain on morgan stanley. i say, you give me an update. how are profits doing? this is the reporting season. are they meeting expectations or what? >> goldman sachs wasn't so good. morgan stanley hit it out of the park, trading, underwriting revenue, fantastic. so generally speaking, most of the earnings that are coming in so far are beating expectations by a pretty good margin and most, i think if we probably would add them up now, probably
double digit territory. so far so good. stuart: is that a floor under the stocks, 20,000 on the dow-- >> with grappling, it's leaning moore more and earnings driven. stuart: the financial stocks are moving higher, good earnings reports, lots of them. adidias apologizing for an e-mail that congratulated runners who survived the boston marathon. what's that about? >> the boston marathon attacks. adidias says you survived the boston marathon. and people took offense and saying you're insensitive. i think people are thin skinned and adidias, i think that people overreact.
i don't think they meant it, that's a faux pas. ashley: i think that's the environment. the moment you have a misstep people are going to pile on and it becomes aggressive and accu accu accu accu accuseatory. stuart: amazon won a patent for what's called an on-demand clothing manufacturing warehouse. try to explain that one. that's machines making custom clothes for you. >> wow. stuart: on-line, dial it up, call it up, you want it, you get it. liz: i tell you, this is retail apocalypse if they do this. you pointed out, it's fast fashion, clothes quickly made to your specifications and they put in a patent for textile printers, cutters, assembly line and cameras taking pictures of garments to get it done rapidly. the clothes you want, the way you like them. >> by the way, that's kind of where the industry has been going. the old model, have a fashion
show, people place their orders for the stores, wait three months. that's really dead. basically people are doing fashion shows and fashion now, you order right away and it's delivered right away. but this is, liz is right. that's fashion apocalypse. >> amazon pushing the edge of the envelope doing what amazon does, plowing its profits into growth prospects. it's a fantastic idea. another reason that retail is going to continue to suffer. and amazon leads them farther down in the hole. >> and wanted to go into fashion for some time and really have not been able to make any inroads. >> and people are able to deliver this and return it if it doesn't work and get new goods and services part of amazon's game. stuart: that's why amazon is at $900 per share. i've got an issue before you go, shah. ask you a question. the french election, round one is this sunday. it could end up, when we get to round two, it could be the far left, a communist, up against maureen la penn, a nationalist.
if that's the standoff in the french election that-- our market goes up or down? >> it goes down, we saw a pretty good glimpse of that yesterday. when european markets fell, it might be the right versus hard left and nobody likes it, doesn't seem to be a middle ground, across europe, sold. and u.s. markets fell on the heels of the european market. this is more of the same coming if either one wins-- >> wait a second, on monday morning we'll have the results of the first round of french electionings, if it shows a runoff between far left and far right, our market goes down? >> i think so. i don't see a reason for anybody for anybody to hold it up. stuart: if that's the results. the big born-- the big board shows 3 points.
>> well, we turned negative. we're down 11, 12 points, but we're right at 20,500. what's the biggest drag on the dow 30, i can tell you that's easily called. ibm down very strong, a very sharp 5% lower. that accounts for 60 negative points on the dow. ibm's off $8 per share. now, we've got this for you.
strong words indeed from vice-president pence on north korea. roll that tape. >> the united states of america will always seek peace, but under president trump, the shield stands guard and the sword stands ready. rest assured, under president trump's leadership, the united states will continue to protect our people and our allies, and to strengthen the bonds between us today, tomorrow, and every day that follows. stuart: key phrase there, the sword stands ready. joining us, sebastian goshinger, assistant to president trump. can you spell out what it means? does it mean we'll be ready to shoot down a north korea missile should they fire one, a preemptive attack on a nuke site if we thought there would be a preemptive test. what does it mean? >> stuart, you're a friend and
the viewers are fabulous on fox business, but everything changed january 20th. so, we don't give our play book away. what it means, in and the broader scheme, this administration especially the president and vice-president understands that state craft, running the ship of state is more than just words. it's not just about diplomacy and statements, it means that we will back up our words with force as necessary, and it means that we're prepared to use it whether it's in syria with cruze missiles or afghanistan with bombs. when the interests of our friends and allies are at stake. stuart: the sword stands ready, got it. can you tell us, i realize a limit to what you can tell us, but the speculation that america hacked into that north korean rocket that blew up on the launch pad. a lot of speculation about that. can you say anything about it?
>> again, i'm going to. stuart: no. >> what sean said. sean spicer said we're not going to comment. we have cyber capabilities on the whole not well-used by the last administration, but we're not going to talk about whether or not we were involved, i'm sorry, stuart. stuart: that sounds like a yes. >> no comment. stuart: you're very good, sebastian. and i'm glad you're a friend of the program. now let me change topic. the shooting in fresno, a black man kills people and hates while people and as he's doing one of the shootings he's shouting alu akbar, is he a hate crime guy or terrorist? >> look, the hate crime moniker is pointless, when you're killing people just for random reason to do with your personal ideology, you're picking people out at random, then, no, this
is something more than that. if it is confirmed that this is somebody who shouted allah is greatest, that's what it means, then this is a jihadi attack. we're not going censor the truth like associated press or change the transcript like the last attorney general with record to the orlando killings, when the world allah was removed from the transcript of the dispatcher. let's wait for the facts. if he's shouted that as we've seen in numerous terror attacks, of course, it's another radical islamic terror attack. stuart: sebastian gorker, thank you for joining us. >> thanks, stuart. stuart: check that dow 30. we are down 7 points, but there's still a lot of green, why is there so much green when the dow is down? simple answer, ibm. it's a dow stock and it's way down, weighing down the average.
facebook's zuckerberg says the next big thing in technology is augmented reality. he wants to bring the virtual world into the real world. not the first time we've heard that. the guy who said this is next. roll it. >> trust me, we will be talking about augmented reality five years from now, virtual reality, maybe we won't. stuart: augmented reality. ar. >> ar, augmented reality you'll see a lot more of it.
>> ah, we have an update on the snap election call by britain's prime minister. ashley: it's going to happen. parliament -- she needed -- theresa may needed two-thirds vote and got some and then some, 13 against. stuart: i wonder who-- >> they're going to the polls. stuart: i bet a scotts nationalist. ashley: that's the block. thank you very much, ash. [laughter] i don't know why i'm laughing. this gets me, i'm a futuristic kind of guy despite my age. facebook is rolling out something augmented reality or plans for augmented reality. that's not to be confused with virtual reality. don't confuse them. mashable's correspondent, that's the man right there.
now, ashley did a very good job of explaining augmented reality to us. you've got the image of reality in front of you and you can augment it with virtual reality like put little figures into it. >> that's more or less. facebook is launching an entire platform, really based in the camera, the facebook camera, so, everybody can have it with facebook and kind of enhance their real world with everything from games to signs to one of the things they showed, for example, is the table with the coffee cup and a plant and they added steam out of the coffee cup, flowers onto the plant, and so, changing your real world on the fly and then sharing that info with people that are with you on facebook. stuart: this would be incorporated into the facebook app on my smart phone. go to the app. >> right. stuart: there's a camera in the app? >> you've always been able to take pictures within facebook to share instantly and they have augmented-- you have the augmented reality where you can look at facebook
and take a selfie and put ears on yourself. that's a simple form of augmented reality, many combining your real face with ears, a tongue, rainbow. snapchat has been doing that. when facebook does stuff like this, a lot of this has to do with slamming snapchat. stuart: that's true. take me down the road a couple of years when we've got augmented reality as a reality and i can use it. >> right. stuart: what would we use it for? >> the practical thing, which is smart. imagine that you have friends who are going to london, and you've told them about a restaurant, you've said, go to this restaurant. when they get there, they hold up the camera and there on the wall is recommendations you've put there about what to order. it's virtual. it's augmented reality because it's not actually there for anyone else and no one holding up the phone will see it, but you will see it because it was placed there because it knows where you are, who you are through the app.
that's a practical application. stuart: before it turns me on it's got to do something more than post something on a restaurant wall. >> your wife wants you to remember to buy something, instead of writing on the board or the refrigerator, look at the refrigerator through the phone and it's there for the day. stuart: how many years away are we from using, everyday people. >> i think we're within 12 months. stuart: you're kidding me, 12 months? >> i think we are going to see some of the features roll out by the end of this year and have the hardware to support it. you know, one of the things that i think is going to happen, apple's going to have ar built into the next iphone. i think that's going to work in concert with what facebook is doing, not in opposition. stuart: good stuff, thank you very much indeed. you explained it very well. >> i try. stuart: thank you, sir. democrats, well, they threw everything they could into that georgia runoff election and didn't work. they came up short. my take on that, top of the hour. here it comes.
. stuart: they through everything into the georgia special election but the democrats came up short. they hoped for a huge upset, a repudiation to president trump. they did not get it. $8million for the democrat john's campaign, almost all of it from outside the district. hollywood contributed lavishly. he complained hard. primarily against president trump. but despite it all, he did not move the electoral needle that much. he got 48% of the vote, only slightly above the democrat's score last november. he wanted an outright win. he did not get it. the republicans, well, they're breathing a sigh of relief. they fielded 11 candidates, so they knew their vote would be split. they knew they would not win out right. at the last minute, president trump took to his twitter account and urged georgiaians to rally behind the gop. it may have helped. remains popular with the file.
it is the republican party that is taking the heat for basically doing very little. so it's onto the june election. john versus karen handle. i'm going to say hollywood versus georgia. it will be another important political test. the far left versus the trump growth agenda. two months ago. two months in which the republican party has another chance to show it can unite and get something done. the second hour of "varney & company" is about to begin. ♪ ♪ . stuart: well, that doesn't tell the whole story. yes, we are up four points. we would be up more than a lot more than that had it not been for ibm, which is a dow stock and acting as a huge drag on the dow industrials. 60 negative points from ibm alone. how about the other big technology names? we always check them and all oall of them are up this
morning. facebook, microsoft, alphabet, apple. the fabulous five, all of them up again today. how about the price of oil? still around 52, $53 a barrel. we'll get a reading on how much oil we've got in storage in the next half hour. that could move the market price. the georgia special election heading to the run up after the democrat fell short of the 50% he needed to win outright. president trump took to his twitter this morning and responded with this: dems failed in kansas. and are now failing in georgia. great job, karen. it is now hollywood versus georgia on june the 20th. mark, former deputy campaign director for george h.w. bush joins us now. all right. mark, i'm saying the republicans are breathing a sigh of relief. that's my side of the story. what's yours? >> well, stuart, let's put this in business terms. if you're a major democrat donor and nancy pelosi told
you that this race was trump's water lou, this was the beginning of the end for majority control, for republicans in congress, and you cut a big, fat check for this race, your return on investment was zero. nothing. you got nothing out of it whatsoever. are you going to cut another check for the runoff race in june? i don't think i would. would you? . stuart: okay. fair point. fair point. let me draw your attention to one thing that's popping up this morning. it looks like the republicans are focusing narrowly on a tax cut for corporations rather than a big, grand, rewriting of the entire tax code. we're getting this from peter, i'm getting it from an op-ed in the new york times this morning from various presidential advisers. what say you? because that narrow tax cut for corporations seems to be doable. >> well, it's not enough. it's not enough. i don't think the president will support that, and i think the struggle will continue among his aids and his top economic leaders in the
administration. look, they're still working in the south, still in discussion. i'm banking on the idea that donald trump, president trump will stand by his promises, he will restructure rates for individual income taxes, he will also provide incentive for repatriation of dollars overseas from corporations. i don't think any of this is defined yet, stuart, so let's not believe everything we read in the newspaper. . stuart: okay. i got it from peter. this isn't in the new york times. >> i understand but peter is just one voice in the white house. in fact, you may be testing out the idea of taking one step forward first with the corporate tax rates. but then we've got a whole package behind that. stuart: okay. but if it's one step forward, i would like to take it, quite frankly. but i have to ask you this. why don't we keep congress in session throughout the summer recess or however long it takes to get something done? i know there's a lot of support for that. >> amen. absolutely. there is no reason whatever if
they haven't gotten the job done yet, why would we put things off until after the summer recess? i completely wholeheartedly support that. i think speaker ryan ought to start talking about that with his caucus right now. because, look, we still have to get health care done, and i predict that will be done by memorial day. but we need this economic package. look, in 1986, ronald reagan didn't get that package done in that term until later after the august recess. but i don't think we can afford that kind of time with this administration. we need to do it now. stuart: okay. we hear you. thank you very much indeed, mark. same subject. congress is in session for what? eight days in the month of april. and we still got health care and tax reform still in limbo. so i'm going to ask the question again. should congress be forced to stay in washington, dc and keep working on health care and/or tax reform and tax cuts until they get something done? tammy bruce is with me. i'm harping on this because they got to do something.
what say you? >> they do. look, even earlier in your first hour, you had a conversation with club growth and work that is happening right now. so the sign is that they they don't necessarily need to be in washington officially working to get things done. is these helpful. we are seeing news of course over the last few days that there is some kind of coming together, which means they are working. at the same time of course, i think we're safer when congress is not working. so i'm a little divided here. stuart: not this time. >> but, look, they really only work to two maybe three days a week normally anyway. with the money that we pay them, i think this is a larger conversation of having these individuals work god forbid four days a week, perhaps, in a normal dynamic because the nature that's what's happening in the world and here at home, and i think that should be something that's discussed in the long-term. stuart: look, i've seen many times in this program. how many people have come to us and said we're this close. we are so close. just so close. if you're that close, stick it
out and get closer and do it. >> and that is the trump effect as well. again, the difference between politics that it's better to do nothing because you're safer and in business, it's better to do things quickly and effectively. and we've got to bring those elements together. i want there to be, you know, some good diplomacy and discussions, and a longer process that the founders wanted when it came to making legislation. but enough is enough. we can bring in donald trump's approach to business, get things done, because that's the cost effective thing to do, and it will help the country in the long run. stuart: i wonder how many members of congress are listening and watching this broadcast as we speak. more the merrier. i'm going to stay with facebook for a second. the company wants to bring the virtual world into the real world through augmented reality. now, we've done this four times on the program so far. but it is a big deal. so why don't you explain it again? ashley: well, yeah, number five. mark zuckerberg believes that
the way forward is the augmented digital reality in the real world. in other words, when we look at snapchat if you use snapchat, you understand you can put bunny ears on your head, you can put a dog nose, whatever you want to do. we all laugh. he'll take it a step further. you can look through a device, probably the camera on your morphine and incorporate digital images, a layer of them in the real world. pokémon go was another example as we chased digital figures around in the real world. stuart: a recommendation for a restaurant on the wall of a restaurant. ashley: yes. stuart: we're not expecting this to come along immediately. ashley: no. stuart: but it's the kind of thing that the kids might take up and then develop out from there. i think it's a big deal. liz: the world we've been living the last eight years of an augmented reality, what do we want this -- stuart: that's cruelty. cruelty. liz: it's funny. stuart: that's awfully close to an all-time high for
facebook. i guess the world likes augmented reality. you're about to see starbucks. that's the new creation. the unicorn frappuccino. it changes flavor and changes color as you stir it. okay. >> it also promises to fix your health care. stuart: and give you a tax cut too? i'll buy that thing. president trump advocating for vocational schools promising he'll bring them back. actor john will give us his take on that in a moment. and the first round of the french election comes up on sunday with a communist, that man right there, gaining some steam. we're all over that story. ♪ predictable. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall...
in queens, we had vocational schools. they were great. we don't have schools like that so much anymore, but we're bringing them back. vocational schools. these are very talented people that love that type of work, and it's great work. stuart: you know, that hit the spot, didn't it? he wants to bring back vocational schools, which have really gone out of favor the past couple of generations. come on in, john. actor and founder of the gift box and frequent guest on the program and a welcome guest. john, welcome back. >> good morning, stuart. how are you? . stuart: i'm very well, and i was very pleased to hear the president try to stop the denigration of working people, the denigration of looking that's your theme too, john. >> that's for the last 20, 25 years now i've been going around the country speaking about that. and now the president has talked about that yesterday, it's now, i guess my job is done, stuart,. stuart: no. it's not done. we want you to be part of the bully pulpit because i don't
think many people will be against this. i think it's a wonderful idea. >> well, surprised that laugh parents are against at that because they think if their child goes on to be a brick layer or welder that somow they're not as intelligent as the kid that went to four years of college. but, in fact, if you're an apprentice plumber or on a electrician or a carpenter, your road for the next fouryeart than a four-year college. and at the end of the day you're going to be making a lot more money too. stuart: are you in favor of apprenticeship schemes? >> oh, absolutely. that's what buil handed some tools and said here. go build the empire state building. no, you have to know what you're doing as an apprentice. you get through the apprenticeship and then go to journeyman, and then master. before i became an actor, i was a journeyman carpenter, and it's not easy.
they put you through a rigorous training. stuart: i'm going to interrupt you for a second because, look, i was born and raised in europe. born and raised in england and stayed there will will it until my very early 20s, and i distinctly remember people looked down on people who worked with their hands. >> right. stuart: what we call blue-collar people, over there, it's the working class. and there would be that dismissive approach, the working class. i think the president has picked up on that, and he wants to get rid of that elitist view of youngsters who don't necessarily want to go to college. >> well, the best way to do that is to get rid of the term blue-collar worker. i've alw term because it's essential worker. every actor or everybody in the media, sports celebrities disappeared tomorrow, excuse me, our families would be sad, but that's about it. the world would carry on just fine.
but if all the electricians, we realized, carpenters, truck drivers decided not to go to work for one day, civilization would grind to a halt. so i always use the term essential worker. these people are essential to our civilization. without them, we don't exist, frankly. stuart: so why is this not a democrat issue? i mean, democrats traditionally have been supported by blue-collar workers, if i have to use that word again. but now it's a republican issue. >> yeah, traditionally, it was. but don't forget, you had a shift from tip o'neill who was speaker of the house, and you can imagine chip o'neal in the afternoon in the garage fixing his lawn mower. well, try to imagine nancy pelosi doing the same thing. that's why. chip understand that's from where he rose. and he understood people who actually work with their hands. but that changed with the
'60s, all of that change. and even the attitude towards working shop classes were canceled because of this philosophy that we should all be actors or ballerinas. i love being an actor, by the way. but it's also very comforting for me to know that i can go anywhere in the world and get a job as a carpenter. because i possess that skill. well, that's the way i raised my kids, and i think that's -- there's nothing wrong with being a ph.d. who can also win a bar fight. it's not bad to, you know, be a psychologist who can also take out the engine of the car. there's nothing wrong with that. a warrior poet, i guess. you're complete. a 360-degree individual. stuart: see, now we know why you're a popular guest on this program. you tell it how it is. and you're a carpenter for heaven's sake. >> chippy to you. . stuart: yes. a chippy. a chippy.
that's precisely -- how many people in our audience would know that? you could count on one hand, i think. >> my years in london, i go up to a building site, and i say do you need an extra chippy. stuart: as an actor, can you do a british accent just like that? >> do you need an extra chippy? right, make the. right. stuart: that's london, you realize that. >> that's not london. that's more batter sea. stuart: it's batter sea. okay? got that? and i will not deliver an american accent. that's a fact. john, we think you're all right. and you can come back on this show any day you like. thanks for joining us. >> all right. stuart, thank you. stuart: now this. that man in fresno, california murders three white men. while he's murdering one of them, he's shoutingal aauk
bar, and he shouteddal uakbar once. ashley: police in fresno are calling it a hate crime, 39-year-old shooting three people to death as you say. at least 40 postings on facebook is what he talked about to kill as many white people and government officials as possible, asking african-americans to rise and up fight the injustice. he shot and killed three white people in downtown fresno and another individual last week. . stuart: so it may terrorize the population, but it is not necessarily a terror act. it is certainly -- ashley: no, he did shout out allahu akbar when he was arrested, it was almost like a throwaway line as he was taken into custody. stuart: ashley, thank you very much. france heads to the polls on sunday. it's the first round of their presidential election system. it could end up being a battle
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. stuart: france heads to the polls this sunday. it's the first round of the presidential election, the top two finishers go on to the second round later in the year. it's a very tight race. tammy, there are four candidates in the leadership position at the moment. >> right. stuart: but there's a possibility that the last, the final two could be the communist. >> yeah. stuart: and the nationalist maria le pen. >> yeah. stuart: both of them want out of the european union. >> yeah. that's the common ground, when started issuing the concern about the european union is when he started moving up a bit in the polls. le pen of course has been
completely about breaking the european union, so this seems to be the statement. this will be the difference on may 7th when that runoff will happen and both of them seem to be indicating that that might be the move they make. so this will have of course huge repercussions across the world. stuart: the repercussions on our markets on monday morning if the final two in the french election are the communist and the nationalist. >> that's correct. stuart: because both of them want out of the european union. that will be a disaster. but more than likely is one of the centrist candidates will end up with le pen in the final two may 7th. >> yeah. that's what the french perhaps are looking at because of the economic stagnation already in france, the concerns overall about the such dramatic movements in france about getting -- leaving the eu as well as the antiimmigration dynamic from le pen. the centrist candidate seems to be people perhaps the better bet and will bring in this votes of individuals who aren't sure, and that might also be the better bet not just for france but around the world.
stuart: i sense a revolution. i really do. ashley: another quick point? stuart: yes, sir. ashley: islamist terrorists apparently would like le pen to win. why? even though she is antiimmigrant, it's because they believe that would tip france into chaos. and that's what they want. chaos in the system. >> chaos for islamists. . stuart: yes. that's right. look, left-hand side of your screen, that's mcdonald's, that's an all-time high, by the way. $132 per share. recently announced they're going to have mobile organized at every location by the end of the year. i think that's why that stock is at a new high there. i'm going to get to venezuela today. supporters of president hit the streets. this could be the mother of all demonstrations. i guess they're on opposite sides, but what are they demonstrating about? liz: this is now. so basically what's going on is a national holiday in venezuela celebrates its independence today.
but the president has armed 400,000 people militias with guns. so six have been killed so far in the latest uprising. 548 have been jailed, there's torture going on with they're putting people in government buildings and offices because they're running out of jails. so -- stuart: let's be clear. the video that we're looking at there is from april the 8th. liz: correct. . stuart: but today, they're calling it the mother of all uprising. stuart: much bigger scale. all right. we're on that one. next democrat candidate john did not get the 50% needed to avoid a runoff in georgia. even with $8 million from a hollywood backing him. we're all over that story, of course. toyota unveiling a brand-new zero emission truck. we'll have the first look at it. and that's next.
♪ stuart: okay i just got that out of my ear ladies and gentlemen. and the big board shows a nine point loss for the dow jones industrial average. and 6 points actually but listen we just got the numbers on oil, how much in storage, go. >> less in storage 1.034 million barrels less in storage. they were looking for one out of 4.5 million so oil prices holding steady right now 52. dead flat almost. 52 thank you. less minnesota coming in at ibm boy is that hurting the stock. bottom right hand corner of your screen there you see it down $9 on ibm160 a share that's an enormous 5 a% loss.
remember please ibm is dow stock that is dragging down the whole dow industrial average. higher profit up 54% one of the biggest gainers on s&p 500. 2 at any time 7% gain of morgan stanley. closely watched georgia election heading to a runoff in june democrat john ossoff fell short for the need win outright. charles hurt joins us washington times opinion editor also a fox news contradict tore. charles, the republicans have breathing sigh of relief. [laughter] on the other side of the coin the democrats failed to win. which side of this are you taking? >> well, you know the whole story has been had sort of overblown from the start. you've got a toxic mix of the media desperate for a story and then, of course, democrats desperate for some glimmer of hope. glimmer of life in their party. and so they sort of pin all of their hopes first in kansas last week, and then last night in georgia. the bottom line is, you know,
georgia this district georgia is a state is a republican place. a republican is going to occupy that seat come june of this year. and we'll probably safely be in that seat for as long as a person wants or doesn't screw things up. ening do you think that maybe president trump over the heads of the really party? he was tweeting directly at people in georgia in that sixth congressional district. >> i think no doubt about it. >> there's no doubt about that and he's been doing that since, you know, the since he first arrived on political scene. and i think that there's no way to look at it except to think that that had to help. you know as you pointed out just a minute ago we're talking about $8 million democrats from across the country invested in this hollywood came out. you know went fully to the map for this and remember this is a district donald trump down by
one point all that proves is donald trump is unusual republican candidate. we already knew that, and idea that we're going to pin this close election down there as evidence that donald trump is sort of an unusual candidate well that's nothing new there. i don't get what the big deal is. >> i don't know about the news and not exactly creating this but i'm punishing this and i'm bare with e me, i'm hearing from a couple of sources here. both in "the new york times" and peter at the white house, that suggestings that maybe about tax reform should be focused narrowly at first on just cutting the corporate tax rate. simple id it is doable i'm in ifer pa of it. but what say you? >> it is smart donald trump has to have a win. they have to be -- get tax rsm through. forget health care right now they have to focus on doing something with taxes and r republicans are terrified much
doing that is they're afraid of doing something with corporate taxes that make them look like the corporate is republican party. but, but important thing here is what that would do for the economy and you've got to do it soon because you need to get things going with the economy when, you know, with the economy improves and starts really firing on all cylinders way we think it could and the way donald trump the it is to and donald trump campaigned on then that would be a huge boom for republicans going into next election. >> simplify and focus narrowly you have a better shot of actually doing it and getting it done. >> other things done as well. but -- any kind of victory on that front i think is crucial. >>ening that congress should stay is in session through the summer recess you knew this was coming. stay in session. work until you get something done. only has eight days of work in the month of april. >> and here's where i think you're going to probably start yelling at me. i'm a firm believer that the
most dangerous moment for the the american taxpayer is whenever congress is in session. the reason that washington was built on a swamp was to make this place so imol rabble that congress wouldn't stay in session. so we're -- we're america is at its best when congress is not in session so a firm believer that -- that they should be out as much as possible. they only come here an cause problems. the problem and this is a reason we're at a crisis right now is that they have created such a massive mess here the federal government is in such a financial dire straight that only they can fix it. so right now i would say, you know, come back, mac, you know, make the big decisions, fix the big problem but then from that moment forward, get out of town and come here you know maybe a week, spend a week, year and we'll, country will be much better off. >> i think it was president kennedy who said washington, d.c. combines southern efficiency with northern charm. i think that's how he put it.
[laughter] drain the swamp. charles you're all right i'll never shout at you. thanks for joining as always charles see you soon. yes, sir. toyota introducing wait for it, a zero emission truck it runs on hydrogen fuel cells. a hydrogen fuel cell system. joining us now with first look at the truck, bob carter that man right there he's toyota motor north america executive vice president. bob welcome o to the program. >> good morning, stuart and thank you for having me as you minced we're here to announce our next step in the development of hydrogen fuel cell and just behind me is full sized heavy duty series eight tractor trailer that i'm going to ask my friends to open up to give your viewers a look. >> okay that sounds good to me running and a hydrogen fuel cell i don't know what that is go aide as we're going through this showing it to us -- what is this? this hydrogen fuel cell, what's that?
>> well you can think of a hydrogen fuel cell as a vehicle that actually -- is electric vehicle first but produces electricity that needed onboard that takes pure hydrogen, converts it to electricity that stored in the battery to operate the vehicle. now we've done this vehicle by combining two of our hydrogen fuel stacks out of a vehicle, that produces enough electricity to e horsepower and a 1300 foot pounds that's equivalent to a full sized diesel truck. now with the advantage of this technology is actually quiet running that it produces zero emission and reason i'm at the port of entry today is that as we know this is incredibly important port this 4 2,000 cargo containers that move through this port they're moved
around by 16,000 largely diesel trk and have an a incredible impact on the environment surrounding the port of long beach and perhaps even ports around the world. >> are you in a position to actually put that truck to work in america today? >> i think we might have lost audio there did you hear me bob i'm asking can you put that truck right behind you and put that to work in america today? >> yes, sir. this is not just a show truck. we're going to actually work with the port of los angeles this will be moving cargo starting this summer. again we've developed this technology to really show the capabilities of this fuel cell technology which we've been running, working on for 20 years. >> bob carter we like this kind
of stuff thank you for giving it first look. hydrogen, fuel cell truck from are toyota. much oblige to you. thank you. >> thanks. we have this for you, espn seriously cut its staff, this month as a matter of fact. they're getting rid of a lot of people ash. >> they are and some of the top talent and tough they don't know 40 to 50 as a major shakeup for the channel all of had this, of course, because of core cutting but we understand for the the first time espn or disney -- is actually going to be buying out some of the contracts which as they've been loathed to do before basically paying someone for not working but aim to save tens of millions of dollars all of this -- and they've got a disney earnings report coming up may th trying to make the spread sheet look better and tough times ahead for espn who continue to hammer subscribers. >> how many last?
>> 12 million. >> 12 million and six years. stuart: oh, my goodness i can understand it a serious loss thanks everyone. late take a look at verizon stock please. the company chief executive laura said he's open tore -- it a merger with who? >> comcast, really cvs so why is this happening? verizon has a lot in the balance sheet and rolling o out a 5g network to do more streaming but doesn't have the cash only revenues to do that buildup so feels like a hookup with a big content provider like disney or comcast universal and that could work. >> that would be if they ever did that, you have to have government permissioned to it. that would be huge. a very big story. big story. stuart: liz thanks again. congress still at home enjoying easter break. hardworking americans waiting for their tax break but a corporate tax to see first
question mark -- that's my thesis of the day. a former member of the national security counsel under pram says former or president left a more dangerous world. especially when it comes to syria, they'll tell us how, you're watching "varney & company." no matter how dusty the room or how high the pollen count, flonase allergy relief keeps your eyes and nose clear. flonase helps block 6 key inflammatory substances that cause nasal congestion and itchy, watery eyes. for relief beyond the nose. flonase. hidden in every swing, every chip, and every putt, is data that can make the difference between winning and losing. the microsoft cloud helps
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♪ >> earlier in the program we heard from sebastian a deputy assistant to president trump who told us how the administration is fighting threats to the united states. roll tape. >> this administration especially the president an a the vice president understands that state croft running ship of state is more than just words. it is not just about diplomacy and statements it means that we will back up our words with force as necessary. and it mean that we're preparing to use it whether in syria with cruise on or in afghanistan with 21,000 pound bomb we are ready to take those actions necessary when our interest as a nation or the interest of our frenldz and allies are at stake is. ♪
♪ stuart: look at this facebook is now at 142 over 143 a share it is on track to close in record territory. why? because mark zuckerberg is making a big deal out of augmented reality he think that's the big deal of the future and slow some plan as to what had it's all about. market like it is. investors putting money in. 14277 on pook right now. facebook right now.
now to france police there have a preelection terror attack plot. ash. >> they believe this was going to take place within next day or two. two men age 23 and 29 who met in prison they are known to being radicalized -- subsequent raids after the arrest found three kilo of explosive self gun and isis flag french media say they attack what was focus on a specific presidential consistent. we with doapght know who. but we know that the conservative for -- worn ahead of time by british intelligent service but on to these guy they believe they foiled an eminent attack. now, more is expected before they go to the first round of elections this weekend. there is a belief and mention this earlier this is coming out of france that marine islamist could not mind if she won with and counterproductive meaning they wouldn't mind if she won
and anti-islamist but why because they believe her victim would ten france into chaos to create opportunity for the radicals. >> i must say i think they're rate close to that. >> it is tenuous syria is resuming evacuation after a bomb killed more than 120 of the evacuees. next case, one of president obama's trusted national security staffers says, he thinks obamas mistakes in syria left, quote, a more dangerous world that staffer is here now barry puvell professor a think tank that focuses on international affairs. barry you worked in that administration. are you turning on your old boss president obama, and saying that he didn't do the right thing? >> well, thank you just to be clear, i worked also for the george w. bush service as a
career servant also in the nfc is criticizer where i think it is necessary unfortunately i think the perception of the united states under president obama is noting will to use military force in significant instances even though we have the capability. i think that emboldened adversary to be a little more aggressive in cases that includes what china did if in south china sea. i think russia cohearsive activities across the broad expanse of europe and certainly in syria -- never had a negative sanction was never felt constrained in killing as many civilians as he could including bombing hospitals. >> barry we're told we heard that president obama drew the redline after assad used poidened gas on his own people l but then fail to enforce redline and we're told that he failed to enforce it because of pressure from the iranians.
the iranians said you go after assad and you're not gopg to get a nuke deal with us. is that accurate? >> i have no idea whether that's accurate. i mean, i do know that the obama was lighter on irani activity including destabilizing afnghts that iran helicopters to conduct in key areas in -- across the arabian gulf and i do know that they sort of let up a little bit on what otherwise i think they should have been more, had more pressure on iranians because they wanted to steal as much as we did. so i don't think that's the way -- >> why did obama administration often soft pedal use of force strong military presence and strong military point of view? why did they do that? >> i think it is interesting phenomenon in our society and our policy where presidents come to office with a narrative. and the narrative that president obama came to office with with when he came in in 2009 was
we're going to get us out of wars i think he was rightly, you know, very careful about getting into new entangle thes and zap our military but doesn't mean there respect important instances like syria where you need to use military force in limited way for precise objectives and then get out where you can or at least go to diplomacy. which i think you heard your previous speaker talk about. >> would you describe yourself now as a trump supporter with what he did this syria? >> so far i call this a down payment. this is a down payment on reducing the perception that the united states is not going to use military force for limited and a important octaves. i think it is the beginning. i think there needs to be a strategy now attached to it that back up diplomacy so we can resolve the syria crisis which is a direct threat to u.s. national security. and i think the obama administration's mistake for a very long tile was looking at
syrias a humanitarian crisis only when in reality it is global incubator for terrorism extremism worldwide. stuart: barry thank you so much for joining us this morning very is interesting point of view. thank you, sir. appreciate it. yes, sir. now we have the dow industrials down 42 points. ibm is a big drag on the dow bottom right hand corner of the screen five and a half percent that drags it down significantly. we'll be right back. think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov
>> well, well, well some of our viewers actually are starting to agree with me -- listen to this it kill to us from mary for the salaries these politicians make, may belong in d.c. working, no more vacations we have this from steve. i have an idea, congress stays in session. this summer until they get health care, with personal tax reform, and infrastructure done. that's what i was saying. don't go for a recess for the whole summer. you stay there. get the job done. don't you love the irony how they campaign all the time about problem in this this country and reelected into office, enjoy full tensions when they retire in early age they're not under
obamacare at all they don't have to live under that and then they get to take off. i mean if they're put in office to do the job do the job and work. >> when you're in psychological and you get sore in class you have to stay for summer school remember those days so you make up for credits they deserve to stay in for summer school they need to get the job done and what frustrates me with this close they say with -- that close you stay there until it is done. >> very good point. stuart: they say we're backwards, that close -- just do it. liz: push it over and get it done. stuart: stay there and finish it, my point agreement. we're going to sing any minute now. >> no we're not. stuart: but we will be back -- [laughter] [vo] quickbooks introduces jeanette
forward tax cut instead of a wholesome wholesale rewriting of the entire tax code? that would be a scaling back of the early ambitious plan. but it does look doable. let's spell it out. corporate taxes first. that's it. just that. get the corporate tax rate down from 35% to 15 or 20%. of all the tax cutting proposals, that looks to be the most easily doable. it has some democrat support, and it has little opposition within the republican party. peter told us yesterday that he's -- now, he is one of the people who shaped the president's growth plan. this morning in the new york times, steve forbes, art law enforcement officer, steven moore, and others are also pushing for the simple corporate cut. they would use that revenue to fund infrastructure, wanted
from both democrats and republicans. those who want a personal tax cut will be disappointed. those who want a border adjustment tax will be disappointed. with taxes, you will never please everyone. but the main point is a simple corporate tax cut is doable and in the context of a congress, which doesn't appear to be able to do much at all, that is a good thing. the third hour of "varney & company," another good thing about to begin. ♪ ♪ . stuart: and happening now, president trump holding an event for veterans. he will sign legislation to extend veterans health care choice. we will monitor this event for you. to your money. check that dow. it's right now down 22 points right there holding at 20,500. how about the price of oil? still hovering around 52,
$53 per barrel and regular gasoline still priced nationwide with an average of # .40 dollars per barrel. that's money. look at ibm. there's a story. much less money coming in at that company, and that -- it's a dow stock, and that shaves 60 points off the dow jones industrial average. ed joins us now. what's wrong with ibm? >> well, i tell you. what's wrong, they're doing fine, they're just not meeting expectations. i mean, this earnings report shouted out to everybody, stuart. watch out because what you're hearing is slower revenues. okay? without any question. they can make the earnings numbers. but the revenue is the key right now, and that's what everyone is focusing on with most of the companies that are announcing. ibm is the most -- one of the most important corporate earnings of every quarter is ibm. and this is a real problem. . stuart: but i don't get it. if you look at the other major technology companies, we call them the fabulous five, you know, apple, alphabet,
et cetera, et cetera, they're all doing extremely well. i know they've not reported their profits well. but their stock price is doing very, very well. it has gone straight up. look at them on the side of the screen right there. so how come they are so different from ibm, which is down what? 5%. >> because they are. ibm many years ago shifted away from being a real computer technology company to more of a consulting firm. if you look at the revenues, it's a big mix. and they're in a lot of different businesses, they bought many businesses over the last ten years, and my graded away from the laptops. they still do these big mainframes. but the majority of the company and earnings are coming from things outside pure technology plays. stuart: how times have changed. >> yeah. stuart: next one for you, ed, is morgan stanley. now, that's a winner today. it reported sharply higher profits. i think the profits were up what? 70% or something like that. what are they doing so right? >> yeah. and that's where i
grew up in the business. it's a fantastic firm. what really -- every business at morgan stanley did very well. but the prop trading, their own money trading on bonds did exceptionally well this quarter as well as their investment banking. you know, everyone talks about goldman sachs. morgan stanley is in my mind a much better firm because they're broadly diversified than goldman. and this quarter's numbers really proved that out. they did fantastic. they really did. stuart: okay. i want to get back to the big picture. top of the hour. looks to me like republicans are thinking about scaling down the whole idea of tax reform and zeroing in just on a cut in corporate tax rates. just for a second, ed, listen to peter, white house national trade counsel director on our program yesterday talking about this. roll tape. >> we need a tax bill that's consistent with president trump's promises. and we need that as soon as
possible. remember, during the campaign, one of the most important promises was to lower that corporate tax rate so that we could keep companies here and create a bunch of jobs. so, yes, we need tax reform. . stuart: well, there is a similar opinion expressed in the new york times today expressed by steve forbes, art laugher, steven more, concentrating on a corporate tax cut. you think that's a good idea? it's doable. >> stuart, what you said at the top of the hour was spot on. you have to separate these two things. you have so many roadblocks going towards the personal tax revision, if you want to call it that. there's land mines out there for the trump administration. but on this particular tax, this should be very easy. and the moment they do it, if they were able to drop it down from 35 to 15 or whatever the number am i be, you would have about $500 billion immediately going to earnings for companies, and that's going to boost stock price valuations, and it's going to help that, plus going to see going to be a lot more money in the future.
that is a no-brainer, in my mind. and there's absolutely no question that they should do that, and you're spot on with what you said earlier. stuart: well, that's a great way to end the interview. you are spot on. you're so right? >> you were. stuart: you can come back any day you would like. thank you very much, ed. we'll see you soon. thanks. tax reform, bringing in dug lass, american action forum president. now, what do you make of this? i'm reading the tea leaves here. i think there is a move toward a very simple tax cut for corporations do it, do it fast, get on with it. is this being muted in republican circle? >> i hear what you're saying, and i -- there is evidence of that. and certainly we saw some of the leading voices from the trump campaign calling for that in the new york times today. but i guess my caution is the following: it's hard to do tax reform. i think a lesson of history is it's harder still to keep tax reform.
we saw the 1986 reform online very quickly. and if reform simply is let's cut the corporate rate, i don't know how hard it is for someone to turn around and raise it when republicans are not controlling all three branches of federal government. so i would prefer if it were within the political realm of feasibility to get something that is permanent, that is structural, and that is transforming the u.s. economy. we need to grow more rapidly, we need fundamental incentives to invest, innovate, and do it in the united states, and cutting the corporate rate will be part of that. but i'm not sure it's enough by itself. stuart: okay. doug, will you just hold on for a second? i've got breaking news now, concerning congressman jason, republican from utah. what's the story? ashley: saying he's not going to run for senate. also had a bid for speaker back in october of '15 but apparently says, no. not going to do it. stuart: i'm reading the helen. it says jason will not seek reelection for the house of
representatives. because he's not a senator, is he? ashley: well, my headline tells me he's not going to run for senate. stuart: is he getting out of politics completely? because he was a leading light. ashley: he was indeed and then just stepped down on the russian investigation. stuart: okay. well, now we know. there's the story, and we got it out there. let's go back to doug -- i'm sorry to interrupt with that. but i thought that was interesting news, actually. okay. now, you want a broader-based tax reform bill. my point would be you don't -- you can't get it through a divided republican party and a very difficult democrat opposition. >> i recognize the politics. i mean, let's be honest. tax reform is really hard if it wasn't, we wouldn't have done the last one over 30 years ago. so i think it's true that tax reformals divides not just the political parties but the business community. and indeed, they are typically
the place where tax reform dies because winners and losers start yelling at their congressman, their senators, and they decide it's not worth it, and they quit. so the missing element here really is the president of the united states standing up and saying we need to do this. it's why i was sent to washington. it's how we're going to make the economy perform better, and it's how we're going to help the average american. if we can't get a tax bill that does that, it's not going to go through anything. stuart: okay. doug, thanks for joining us on a very important date. always obliged. thank you very much, sir. okay. let me just read a little bit more. ashley: not seeking reelection. the question becomes are you going to run for the senate? and he says "no." . stuart: he says after long consultation with my family and prayer for consideration. don't want to read too much into this, but it sounds like he's getting out of politics. it sounds like. i don't want to run too far with this. but very interesting news. he was a leading life in opposition. liz: yeah, that's true. stuart: we showed you this.
a couple of days over the last couple of days, it's still going on. ashley: oh, no,. stuart: it is the kia contest. it's actually coming to its final hours, by the way. 20 people lined up at the dealership, they have to keep their lips kissing the car, that car, the last one with their lips on it wins the car. . remember, they do get a ten-minute break every hour. five people left, it's winding down. if nobody takes -- there's no single winner, all the names go into a hat, and they pick them out and the one that's picked out wins the car. got it. thought i would bring you that. starbucks, get ready for the unicorn frappuccino. it starts tomorrow. like a commercial. available all starbucks. it changes from purple to pink as the flavor changes from tangy to tart. okay? let's do something more. to georgia. special election headed for a
. stuart: that georgia election, well, it was a special election, and it is head for a june run off. fox news politics editor chris joins us now. now, should i say that this is a defeat for the candidate for the democrat because they didn't get 50% of the vote, so it's a runoff? or is it the republicans breathing a sigh of relief? which is it? >> it's both. the republicans, it was as the -- a near run thing. stuart: no, he didn't. he didn't.
>> who said it? . stuart: he said it was a damn close run thing. >> oh, really? are you serious that that was cleaned up for posterity? . stuart: cleaned up? i don't know if it was cleaned up. >> well, the original is dammed. how about that. stuart: 10,000 people out there right now who are googling. [laughter] sorry. i interrupted you. >> no. no. i'm glad to know it. for republicans, john did much better than he should have. this is a reliably republican district. he did much better than he should have. so this is breathing a sigh of relief for republicans because it would have been quite embarrassing to lost this seat formally occupied by the former secretary of health and human services, and it would have made recruiting harder and fundraising harder and keep republicans together in washington if he would have won outright yesterday. so they got it there.
but on the other hand, for democrats, this is the high-water mark; right? because now you go into what essentially is the general, it's a runoff but essentially functions as the general election. and instead of having 11 republican candidates, you'll have one republican candidate. there's a challenge for democrats. you can keep intensity up. they hate donald trump. lord, they hate donald trump like god hates sin. and you can keep intensity up for quite a while as republicans demonstrated with hating barack obama. and they won two midterm elections on it. but they lost in kansas, they lost in georgia, they have a tough one coming up in montana to replace interior secretary. how long can you keep the base engaged if you can't deliver wins? . stuart: you know, i've got a feeling that president trump is more popular with ordinary folks on the ground than the media and the polls give him credit for. >> not this district. this is not trump country. this is romney country. these -- this is one of the -- this is the best educated
district that donald trump won. one of the most affluent districts that donald trump won, and he didn't win by much. these are suburb country club republicans. these are not trump populous. and this is the challenge for the. how do you put together people who are of the investor class, people who are middle class and upper middle class with the working class poor white voters of the midwest who helped form trump's coalition? how do you get suburb atlanta with eerie, pennsylvania? and how do you keep them together, and that's the challenge for the gop. stuart: yeah, i think you put your finger on something, which i kind of noticed. and you know more about this than i do. but it seems to me over the past few years, there's been a revolution in politics. poorer people, middle income people, working people now vote republican, for trump. >> yes. stuart: whereas richer people, the elite, they flock to the left. >> well, and what we're seeing is that the roosevelt fdr coalition is being reformed, and it's being reformed on the republican side for donald
trump. and that's why his policies, protectionism on trade, that's why buy american, build american, that's why his friendliness with labor union, that's why all of that stuff makes sense when you put it through the prism that basically the parties have shifted positions from 70 years ago. and now the republicans are the new deal party. and the democrats are the party of global trade and elitism and all of that. stuart: i have to say i'm very glad to be alive and doing this job at this time. because you were there at the revolution. you were right there. >> that's right. exactly. stuart: chris is a great man. have a great day. >> you too. stuart: serious stuff now. venezuela socialist leader nicholas will provide thousands of guns to loyal followers. and, liz, if i'm not mistaken, there's a huge demonstration going to take place today and some of those guns may be in
play. liz: yeah, that's right. 400,000 loyalists are being given guns. this is a country that is socialism in collapse. a rising crime and violence. 548 people now jailed. also being jailed in places like government buildings and rooms in there because they've run out of jails to put the opposition in. six people have died already. there's tear gas, expected violence today. so there's extreme worry going on in the streets. they're expecting millions to turn out already. has told the supreme court take over parliament. he's an authoritarian. we have yet to hear from senator bernie sanders, sean pen, danny glover on the crisis of socialism in venezuela. this is one of the worst examples of socialism ever. stuart: you got it right. thank you, liz. thank you for keeping up to date on a good story. now this. a car that parks itself. completely. you don't even have to sit behind the wheel.
jarod has won, he's going to show us how the car parks itself momentarily. listen up, heart disease.) you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done.
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. stuart: the new bmw five series actually parks itself. you don't even have to be in the car. fox news automotive gary is outside the fox building. he's got the beamer with him ready to test. take it away. park itself. >> yeah. stuart, imagine you're at the mall, you're buying your marshal sculptures or what we have it is you buy, and someone pulls up right next to you and says you can't get in. well, with this touch pad on the key fob, you start the engine to the car. a lot of cars can do that. and then it takes a second or two. not too long. you're able to back out of the space by just touching the key fob. take a look at this. there we go. and it closes the mirrors there, uses cameras and sensors around the car to make sure it doesn't hit anything, and it will back all the way out of the space now, it's a lot easier to get in and of course, it also works forward. so if you want to go to the garage, same thing. just press the forward button, it's even trickier because it has to worry about hitting those over there. it will do that -- oops.
i stepped behind the car. that was my mistake. my mistake there. it did mess that one up. poor bmw. i managed to screw this up. but actually, it did work fantastic, you saw me driving it earlier before. $63,000, bmw is the only one that has it other than tesla. very cool, functional feature. i like it a lot. stuart: i think you'll be hearing from bmw about that. i think you will. and actually, i wanted to see its parallel park by itself. it can do that? >> it can do that, but you have to be sitting in it for it to do that. this will just go forwards and backwards, and i'm going to redeem it right there. and it will stop before it hits that one in the front as well. there you can see the wheel steering, and it's not going to crash into the wall. ashley: and. stuart: all right. your time's up. you proved yourself. by the way, germany's on the phone for you. munich, actually. gary, nice try, son.
we'll see that one again. thanks. i do have an update on the kiss the kia contest. it's over. ashley: what? . stuart: it's been won. a lady won. and she is going to be on the phone with us just a few minutes from now. the kia contest winner on "varney & company." ashley: did she move her lips? . stuart: i don't know. we'll see. now this. dismissing obama-pointed federal prosecutors, all of them, the department of justice does not have its own u.s. attorneys in place. is that a serious blow to justice in america? judge napolitano on that in a moment. think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income.
. stuart: i want to bring you a little bit more on the idea that the republican party is focusing narrowly on just cutting corporate tax rates as opposed to going from across the board tax reform deal. peter, white house national trade council director talked about taxes on this program yesterday. listen to this. >> we need a tax bill that's consistent with president trump's promises, and we need that as soon as possible. remember, during the campaign, one of the most important promises was to lower that corporate tax rate so that we could keep companies here and create a bunch of jobs.
so, yes, we need tax reform. . stuart: and, by the way, there's an op-ed in today's new york times from steve forbes, larry, art laugher, steve moore, and it says fix corporate rates. spend on infrastructure. get it done. that's what they say. keith fitzgerald joins us now, money math chief investment strategist. what do you say to the idea of zeroing in on a simple cut corporate taxes tax package? >> they're the operative words here. the music to the stock market is simple and get it done all in one sentence. you've never seen that out of woo in the last 20 years, and it will be very, very powerful catalyst for the stock market. stuart: now, of course president trump went a lot further than that in the run-up to the election and even after the election, you promise much more, including, for example, cuts in personal tax rates. do you think it's good enough? i mean, the point is that cutting corporate taxes is doable. you can get it done. >> well, that's the thing.
you're not going to have all the bickering that you normally would when you get down to the personal level. we still need personal taxes, don't get me wrong because millions of americans are still hurting in all the years of the financial crisis. but starting with a corporate tax cut is a huge deal because it hires them, produces american jobs, it puts money in the economy as these guys have pointed out in their op-ed. it can't be spent in other value-creating ways. stuart: okay. i want to zero in on a couple of companies today, especially ibm. they've got left money coming in. the stock price is down, nearly 5% down. and that accounts for about 60 points off the dow industrials. what's wrong with ibm? >> i tell you what, stuart. i'm not going to miss words here. this company should be on death watch. it's failing, it has legacy contracts, and that's about it. people think of it as technology, but it's not. it has diversified its business. you're talking 20 straight quarters of year over year declines. that does not take somebody at nasa to figure out it's going in the wrong direction. stuart: wait a minute.
20 straight quarters with less money coming in. is that accurate? >> yes. that's correct. and, again, you know, so here's the thing. do you want to switch to a horse that is better capitalized doing better work with better big day? yeah, go to alphabet or go to amazon. ibm is undercapitalized, even with watson, they can't catch up. stuart: okay. next one for you is morgan stanley. they're a very big winner today after reporting very sharply higher profits. i think they're up 74%. what are they doing so right, keith? >> there are two areas in their business, stuart, that have really taken off. investment banking and their proprietary bond trading. now, that makes sense because the world has become a more complicated place and spent a lot of activity in bonds as opposed to stocks. people at goldman, for example, buy comparison, they're mostly stock-oriented, didn't have their game together. morgan, great job. well done. does it point to a broader rally for all the banks, i don't think. . stuart: do you think the profit reports that have come in so far are good enough to put a floor under this market of, say, 20,500 on the dow?
>> boy, that's a tough call, stuart, because there's still will a long way to go here. we've seen a lot of good numbers but the bar is so low as we talked about that it's so low. stuart: i'm still shocked that so much money is still pouring into the fabulous five. i'm trying to remember what they are. that will be apple, amazon, alphabet, microsoft, facebook. the money is still going in there, and you approve of that, don't you, keith? >> absolutely because that's the future. you know, business is no longer about making widgets, no longer about making things. it's about producing value with things that you do make. and, you know, tesla's a case and point here. everybody always says it's an electric car company. it is not an electric car company. just alluded to a 100 gigafactories powering the world. that's his vision. everybody is in trouble when his thing gets traction. stuart: it's just a tailor of two sets of companies. the big five technology companies just flying to the moon.
ibm, sinking fast. extraordinary. keith fits, always good to see you. come again soon. thank you, keith. >> yes, sir. thank you. stuart: do you remember the dismissal of all obama-appointed -- obama era federal prosecutors, all dismissed day one. the department of justice with jeff sessions still does not have its own lawyers in place. is that a hit on american justice? judge andrew napolitano is here. this is an unusual situation. >> it is very unusual. stuart: but can we be clear? no prosecutors have been appointed; right? >> well, the u.s. attorney is the chief federal prosecutor. stuart: right. >> for a judicial district. new jersey is one district and new york, manhattan, and the bronx are one district. it's based on population. this is a presidential appointment and confirmation by the senate. about the pleasure of the president. so president trump and attorney general sessions asked 47 holdovers who had
been appointed by president obama and confirmed by a prior senate to resign, and they all did. one of them here kicking and screaming. well, they have been replaced nominally by the senior career official, not a political appointee but the senior full-time long time prosecutor in each office. it is unusual for this to happen when the president and the control of the senate are in the same party. so sometimes the other party will frustrate the president. but the president has not sent over names yet. so the president hasn't even sent 47 names to be confirmed. and it's worse than you think. there are 13 senior-level people in the justice department, main justice in washington, dc. only one's been appointed and confirmed. attorney general sessions. the 12 chiefs of the various departments of the department of justice, if you will, have not been confirmed. only one's been nominated. he hasn't confirmed the other. .
stuart: so this is not a case of democrat obstructionist opposition. this may be a case of trump administration in efficiency. >> yes. the trump administration has its eye on other balls, which makes one wonder why do they get rid of these 47? . stuart: but presumably they would have a slate of ideologically sympathizing people to put in their place, wouldn't they? >> apparently they don't or they haven't done it yet. jenna lee just interviewed attorney general sessions on the fox news channel, and he was fact arguing that justice is still working and that the senior person in each office is running the office. but it would be better for him, for president trump, and for the whole system if the appointees were in place. here in new york, the prime prosecutorial job in the united states of america, vacate. stuart: are you critical of the trump administration for this? >> yes. as are below the screen and off the record, many judges.
look, there's a lot of very serious cases coming up. senator robert menendez has been indicted, made several applications of the indictment thrown out, the trial court rejected, and the appeals court rejected, now it's time for trial. who should be making these decisions? the senior person in the office, or the president's appointee? and that's just one example of where you need that permanent leader in place, and that person's not there. stuart: andrew napolitano critical of the trump administration. >> stuart varney agreeing? . stuart: well, you're on my show. [laughter] thanks, judge. >> all the best. stuart: thank you, sir. some individual stocks in the news and moving. disney, they operate and own espn. espn reportedly getting ready for a round of layoffs. big time. that's called cord cutting. they've lost 12 million
subscribers to espn in recent years. they've got a increase in boost loan activity, the stock is up 18% in the past 12 months. now this. nasa says a mile-wide asteroid will fly by the earth today. nasa has been monitoring this asteroid since may of 2014. nasa says it's expected to pass the earth at a distance of a little more than a million miles. sounds far, but it is considered very close in space terms. nasa says there's no possibility the asteroid will collide with the earth. no chance. there's also a new report out, top polluted cities. six out of the top ten are in california. we'll tell you which ones. next. and uk prime minister teresa may calls for a snap election. uk parliament goes ahead with it. there they voted. yeah, they're going to do it. there are reports that the man on your screen nigel farage
the dow, though, is down ten points. the dow would be in much better shape had it not be for ibm. heard about this already this morning. terrible margins. hurting big, shares down 5%. now, after the bell today, we will hear from american express, amex expecting that customer fees, lower fees will result in lower profits. you're looking at the semiconductors right now strong earnings from lamb research, having a knock on effect to the entire semiconductor industry. you see big gains there this morning, up about 6.5%. take you back now to "varney & " " liberty mutual stood with us when a fire destroyed everything in our living room. we replaced it all without touching our savings. yeah, our insurance won't do that. no. you can leave worry behind when liberty stands with you™. liberty mutual insurance when liberty stands with you™. on your big day the only tears you ...not allergies.from joy... flonase allergy relief helps block 6 key
. stuart: they head to the polls in france on sunday. this is the first round of the presidential election there. it has become a very tight four-way race. here with us, the man behind the brexit movement, fox news contributor nigel farage. nigel, there is a nightmare scenario developing, not for you, but for the stock market here and in europe. and that nightmare scenario is after the voting on sunday, the two candidates who go through to the next round of the extreme -- the nationalist right le pen and the communist on the left. that's a nightmare scenario. is it possible? >> if it does happen, i made myself quite ill.
and i don't know -- i don't know what's going to happen here. more than anyone does. other than to say this. that the opinion polls underestimated brexit. the opinion polls underestimated trump. and generally, those more conservative views tend to be a bit shy with pollsters. i would still be very surprised if maria le pen did not top the poll and go through to the second round. as for who should be up against, frankly, it's anyone's guest. who you mentioned who is basically a communist has surged in the polls over the course of the last few days. so things are unpredictable, but i'm going to put my neck out here and say that le pen will be one of the two that goes through. stuart: yeah, and that could be bad news for the markets here because she wants the european union to go away, and she's not too keen on the euro. that would send the u.s. dollar straight up and our stock market straight down. so we have skin in the game over here, nigel.
>> yeah. come on. for goodness sake, you know, the night trump got elected, the dow fell 500 points very quickly and then rounded 700. the day brexit happened, the index 100 went down and related and is now significantly higher. sometimes -- don't forget, i spent 20 years working in commodity and financial markets before being in politics. and sometimes, to the status quo isn't always logical. stuart: see, what i'm going to do, nigel, is boost my ratings for monday morning. i want to get as many viewers as possible is what i'm doing, nigel. but seriously, are you thinking of running in the snap election june the 8th? >> well, there is a snap election that's being called. teresa may in terms of her rhetoric and don't forget she was a roemer, not a lever in the referendum. but they hear her rhetoric, she's saying many of the things that i've been saying for the last 20 years.
rebuke which is remarkable, which i'm pleased about. over the course of the next 24 hours or so, what do i do? do i run? to sit in this building behind me? or do i have more impact or more influence over the brexit process continuing to lead a group in the european parliament in brussels where, you know, i'm the only one out of 500 million of citizens that has a front row seat to take on the bosses? so i'm going to work out where i'm going to be most effective, and i've got a day or so to decide. stuart: my box says you stay in the european parliament just to give them a hard time. that's what i think, nigel. >> well, it's good fun. i much enjoy it, and of course, you know, there are other skeptic groups that i'm working with. no, listen, don't take what i've said, you know, and your view has been gospel. i've got some serious conversations to have over the next day or so.
stuart: good luck for that, nigel farage and thank you for joining us. >> thank you. stuart: i'm going to call this irony in the extreme. leftist california, i think i'm okay to call it leftist always democrat california. they lead the country with six of the top ten most polluted cities. i think they're on the screen. liz: yeah, bakersfield, fresno, modesto, san francisco, los angeles. more than nine out of ten californians live with area with pollution. this comes from the american lung association, california cities routinely rank in the top worst cities with pollution. stuart: you know, ashley and i were talking about this. you used to live there and back in the day, the smog in los angeles was awful. >> they would tell you not to go outside. kids at school weren't allowed to go outside. it was that bad. stuart: i thought they fixed it. but it's still that bad. liz: it's wildfires and the pollution from cars.
stuart: okay. well, that's an out of sorts, i would guess. now, this happened moments ago. president trump holding an event for veterans signing legislation to extend veterans health care choice. gives them access to private sector health care. this is a big deal. listen in. >> to join and be joined today by some absolutely tremendous people and great veterans. i have to thank them dealer but as well as to representative phil. where is he? what a job you've done. and all the members of congress who worked on the bill that we're about to sign. such an important bill. i especially want to thank senators john mccain and senator johnny isaacson. they have been incredible in working with us. let me also welcome my good friend florida governor rick
scott, a navy veteran who is here to represent more than a million veterans from the state of florida. we're also joined by leaders of a number of veteran groups. i want to thank all of them for being here and all of the tremendous and important work that they do. we would not be here if it weren't for them, i can tell you that. finally, i want to thank our secretary of of the va, david who, by the way, was approved with a vote of 100 to nothing. shocking; right? 100 to nothing. we met earlier today in the oval office and secretary updated me on the massive and chronic challenge he inherited at the va. but also the great progress that he is making, he has a group of people that are phenomenal at the va. it's one of my most important things i've been telling all of our friends at speeches and rallies for two years about
the va, how we're going to turn it around, and we're doing that. and actually, next week on thursday at 2:00, we're going to have a news conference with david and some others to tell you about all of the tremendous things that are happening at the va and what we've done in terms of progress and achievement. the veterans have repai poured out their sweat and blood and tears for this country for so long, and it's time that they're recognized within and it's time now that we take care of them and take care of them properly. that's why i'm pleased today to sign into law the veterans choice program can improvement act. so this is called the choice program improvement act. speaks for itself. this bill will extend and approve the veterans choice program so that more veterans can see the doctor of their choice. you got it? the doctor of their choice.
and don't have to wait and travel long distances for va care. some people have to care five hours, eight hours, and they'll have to do it on a weekly basis and even worse than that. not going to happen anymore. this law is a good start, but there's much to do. we will fight each and every day to deliver the long-awaited forms. and protect those who have so courageously protected each and every one of us. so we've made a lot of strives for the veterans. these are, like, the most incredible people we have in our country, as far as i'm concerned. and they have not been taken care of properly. i want to thank david. you've done an incredible job, and you're going to see some of that on thursday. so thank you, all, very much, and we're going to sign this, and i think i'm going to have to give this pen, the way i look at it, i think we should give it to phil. >> i agree.
[laughter] . stuart: that is the president of the united states of america -- did you hear him say? you got it? the doctor of your choice. you got it? how many times have you ever heard a president say something like that in that direct fashion? you ever heard that before? no, i certainly haven't. by the way, the president there is giving veterans access to private sector care. more choice for veterans. he's done something. i'm going to move on because we have a winner in the kiss a kia contest. remember this? 20 people lined up at the dealership. they had to keep kissing the car. the last one with their lips on it won the car. the winner joins us now by phone. delany. welcome to the program. can you hear me okay? >> yes. thank you so much. stuart: now, how long -- you were there since monday kissing the kia; is that right?
>> yes. i was there since 7:00 a.m. monday until 9:00 a.m. today, and i wasn't the only person that was there for the whole length of time. it was supposed to be for 50 hours max and whoever left last is supposed to win it. but there were seven others, so they had to draw. i was chosen by a drawing. . stuart: that's excellent. so now -- which kia did you win? >> the kia optima. 2017. stuart: very good. a 2017. that's very good indeed. how do you feel now after all of this exertion since monday? >> oh, boy. it's surreal. i'm tired but too excited to be tired, i guess, that's how i would put it. stuart: if the contest had not been cut short, how long do you think you could have gone on for? >> you know, that's a very
good question. towards the end, i was feeling like all of us were professionals at it that we could endure some more. i was joking, like, let's have a kiss of toyota, kiss a honda or whatever. yeah, we're all trained now. an incredible experience. stuart: i'm almost out of time. i want to thank you for being on the program, and i want to congratulate you for being the winner of the kiss a kia contest. you indeed are a car kissing professional, the likes of which we've never had on this program before. congratulations. good stuff indeed. >> thank you so very much. stuart: okay. i've got another story. not similar at all. disney wants to launch a star wars starship luxury resort. liz: yeah, so disney sent out a survey to people who go to disney world, and they said, yeah, we would like a star wars-themed resort.
so the -- you know, you can take light saber training, sleep overnight in a star wars starship. it's an idea. it's not under development. it's ideas coming back into disney to change-up their resorts and into movie -- stuart: are they talking about the resorts on the disney property? liz: they're not building anything. this is a survey of fans. the fans came back and said we want a star wars resort. so what next? finding nemo disney cruise? who knows? ashley: oh, my goodness. stuart: star ways came out in the late 1970s. ashley: yeah, but it's a generational thing. it continues -- i mean, look at the box office for these movies. kind of makes sense for me to make a theme park out of it. stuart: does it make sense to you, ashley webster? ashley: for what it's worth, yes. stuart: and you admitted that on television. ashley: stick my head out. stuart: thank you very much, ashley, elizabeth. we will be back with more after this
facebook, facebook's took actually which is at an all-time high. this is facebook's first stab at something called augmented reality. we had a lot of fun on the program because ashley has been able to explain augmented reality in a way we can understand. we i will do it again now. ashley: i hope i'm right. augmented reality taking digital images, layering them in the real world. putting bunny ears on your head getting on snap chat. you can combine the two. mark zuckerberg says look, going forward this has all sorts of applications. you can post a menu on a restaurant, you come along, stu, comes along, puts his phone up, looking with friends about the menu choices your friend liked in that particular restaurant. he takes it a step further. replace your 500,000-dollar television with an app. as you sit there you can watch it in the virtual world incorporated in your own home. stuart: what do you think, liz?
liz: he did it again. stuart: do you think it's a winner in the future? liz: i think it is nuts and that people will not do it and i think it is bad for mental health. stuart: disagree. people like me will adopt it at some point in the future. it will beuseful. liz: we'll never see you again. stuart: ain't that right, neil cavuto. it's your time now. neil: one quick thing i always noticing before this very illuminating segment, the woman who won the car, how long was she kissing the car? stuart: from monday until today. but they get a 10-minute break every hour for various functions. neil: myself i could see myself doing that for a subway sandwich. people don't know you but you have a big heart and you're cheap. what would stuart varney do? how long would he do something like that to get it for