Transcripts For FBC Varney Company 20240622

Financial times, disheartening. One in five americans are receiving government assistance and now president obama saying lets give out solar panels to the poor just what we need to gre the economy. We havent forgotten about hillary giving the first interview since announcing her campaign. And she blames republicans for everything. Poor hillary there. Varney company is about to begin. All right. Guys, weve got a ton of news for you this morning and we have now breaking news all United Airlines flights are grounded, they say its due to a Technical Glitch. All flights, all airports are grounded, a big problem for travelers. We have a live look at Ohare Airport and thats on your screen now. Thats the giant united hub. If you have to go through there. The big story now liz the big story, there has to be something more to it than to be causing all the flights to be canceled. Charles this is worrisome because a lot of people are worried about Computer Systems worldwide particularly involving airlines. True theres been cabin pressure, no pun intended on t the flyhigh flying stocks no pun intended, and well watch those. Charles weve got it up there, premarket, and showing down at least a dollar. The crash in oil prices should have helped the stocks. I was waiting for one more no pun intended because that would have broke the record. [laughter] its not j us inconvenience, but we dont know whats going on. Well drill deeper. Theyre saying its a Technical Glitch and the street doesnt like it. And the board doesnt like news from around the world, equity futures are pulling back. At one point we were down 200, before the open rallies back to less than a triple digit loss and now were opening under a tremendous amount of pressure. A moment ago i talked about oil. And yesterday the market had a rally and oil off the canvass, relatively unchanged, it could go either way. The implosion trade, what you bought, heart Precious Metals when the world goes to hell in a hand basket. Gold looking higher because the world is on the cusp. On the other end of that is copper, everyone is talking about copper because this might be the real proxy. At a sixyear low, but a lot of that involves a Global Economic slowdown, is it overdone or is copper the canary in a coal mine . Lets bring in harry dent the author of the demographic. Youve been predicting a rolling crash that will last more than a year. Have we begun it . We have in china we may have one morally at the United States im looking at stocks and they may seem oversold and may have shortterm resolution in greece. In the u. S. Fracking a trillion dollar industry and theres debt that will have to default and puerto rico is coming. The big thing, youre right, saying recently that the china bubble is bursting. Weve been saying this is the biggest bubble in the world. Real estate started to slow and everyday people poured in on margin debt into chinese stock and they went up 160 in one year and in a declining economy, now the government is having to prop up the market with buying artificial buying and telling Pension Funds they cant sell stocks they can only buy them. This is desperate. So, i think this is the biggest sign, the china market is down over 30 . Ive been looking for that. A sign that the top is there. We have to get to the point where if something happens to the u. S. We put in a top and already say a 30plus percent decline and the u. S. Did the same thing in 1929 tried to prop up the market and it didnt work. What is it . A series of events or well be able to point to one cataclysmic event. Your illustration were sitting on a powder keg. Whats the thing that sparks this and doesnt get on a downward slide that doesnt reverse . I think its the china bubble. Theyre losing control over that. Interest rates, longterm rates are headed up another sign we have been looking for. When Central Banks keep stimulating and quantitytative easing and longterm rates go up anyway. The only thing they can control is shortterm rates. Theyre losing control of that. The china bubble bursting further and especially when it starts to hit real estate harder and in the United States, i think this fracking bubble is going to be the first thing to go without quantitative easing these Energy Companies would not have been able to borrow at junk bond rates, 5 to 10 and normally 8 to 10 and oil prices wouldnt come up. Weve said the frackers are dead and will have to default, the biggest one, you need oil prices to keep falling. So oil prices have bounced we said low 60s and 70s and retreating again. We get back down into the low 40s and the bond markets before i let you go and hopefully next time talk more about the demographic issues i dont think those have kicked in yet. Eric bolling on yesterday saying cheap oil is the thing that will save our economy, but you think its the exact opposite . No, because its going to trigger a debt crisis here, yes its good for the consumer, but it hasnt done much for them regardless. Consumers are tapped out and so this is not going to turn around the consumer and the demographics get bad, especially next year charles. Charles great, buddy, at least youre in tampa to weather the storm in a cozy way. Well talk to you soon. If you watch Varney Company and the rest of fox business for that matter you would have known that china was the biggest story come intoing this week and bigger than greece. Now look at what its doing to the markets today. And lets bring in mary pan Liz Macdonald and mary you lived in hong kong for a long time. You understand the mentality out there. We have a lot of people coming on saying that the chinese leaders dont understand the Chinese People. I kind of find that interesting. To the harrys point the notion that he can this control or manage that. I was there when the markets crashed and what people dont realize in this country, china did obamanommics on steroids. They did the fiscal stimulus in the United States and the money went three place, under the mattress, it went into stocks and it went into property and weve seen basically, this bubble inflate in property and in stocks and now youre seeing the deflation. Ultimately, china is a developing economy with a very immature Financial System and they just dont want to take the steps that they need to take in order to allow the stock market to be based on real valuations. Right. And not essentially on gambling, which is how the Chinese People do it. Charles every country wants that. No, but china is different because remember, china is a one hadden party state. They have a lot of capital controls and you see a lot of distortions in the marketplace. Thats a big issue, its not something they look like theyll liberalize or fix soon. Charles all right, guys. Much more on china and the markets in a moment. We have to talk about Hillary Clinton because she gave her first televised interview since her campaign and she went on the defensive. Listen to this. I think when your subjected to the kind of constant barrage of attacks that are largely fomented by and coming from the right do you bear any responsibility . Well you know i can only tell you that i was elected twice in new york against the same kind of onslaught. This has been a theme thats been used against me and my husband for many many years. Charles joining us now is the author of clinton, inc. And he joins us from charleston south carolina. All right, daniel not necessarily a surprise shes blaming the right and playing the victim, but on the one hand what got her elected. Whats in you about the hillary running for president . There she goes again, the vast right wing conspiracy. The truth is not much is new. Shes using the play book that the clintons used for a very long time especially Hillary Clinton consider yourself the victim which she did well yesterday. Blame everybody else, but yourself, she also did. Say everything is a lie and sort of stand your ground and blame everybody else, but, of course, yourself. She didnt what i found strange was not her interview, which i think was somewhat predictable and soft, what is different is that she was panned called her russe and one said she looked scared and frightened to answer questions and even the daily beast called her playing the victim card. I think that people are not as accustomed to it these days and less likely to take it and to take her stand and say, okay fine, we can live with a politician who does this. In these days we try to value authenticity and i dont think that came across at all. Whats the game plan for Hillary Clinton . Its emack. It takes time for narratives to take hold. The email story is toxic. Trust us, but dont verify what they did with the servers, is this laying the ground for 2016 . A negative narrative is bad for Hillary Clinton when shes neck and neck with Bernie Sanders in New Hampshire and iowa. They never wanted the coordination so they wanted bernie to rise a little so they can pretend they have a real primary and Bernie Sanders is a real candidate that they have to be scared of 73yearold socialist from vermont. It helps a little as long as he can rise without overtaking them. I think shes playing it week by week month by month. Next month is august she wants to go on vacation to the hamptons probably. The last couple of months shes been riddled by scandal, the last couple of weeks have been somewhat quiet so answer some questions and allow the scams of the past to rest and move on. Charles hopefully cnn, if she had a tough time with that interview maybe americans will get answers when she gets tough tough questions and actual debates. Thanks, we appreciate it dan. No problem, she should come on here anytime, right . A lot of fun. Charles its an open invitation, thanks buddy. Thank you. Charles were following the breaking news story, had it moments ago, all United Airline flights are grounded and this is nationwide. Right now take a look its live to the international airports. Those planes are going nowhere right now. The f. A. A. Says if this were a technical blitz, what does that mean . Were talking all flights and airplanes in the United States are grounded on a Technical Glitch . No word when theyre going to resume. Well obviously be on it for you. Microsoft announcing 7800 layoffs mostly in its phone business. Check out shares of microsoft relatively unchanged and maybe more less throwing in the towel on that phone business and were all over china for you pan how the problems over there are affecting your money, your 401 k over here. A former partner and critic joins us. Disney will have that star wars gravy train for a long long time. And equity ready for a prequel featuring my favorite han solo. Were going weak into the open. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Do you want to know how hard it can be to breathe with copd . It can feel like this. Copd includes chronic bronchitis and emphysema. 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Major airline is grounded they say due to a technical issue. All flights all have been grounded at this moment and we have a breaking story for you. This one from microsoft. They Just Announced theyre going to layoff 7800 people there mostly in their phone business. Checking the shares of microsoft relatively unchanged, but major, major, almost 8,000 people this morning without a job at microsoft. Now lets take a look at dow futures. Down all morning long. Down as much as 200 in the best Case Scenario moving ahead of the opening bell and the main reason why, another stock selloff in china, its going to hit our markets big time when we open in less than 15 minutes. On that note bring in former Goldman Sachs partner, peter, the author of american mojo, and you wrote a best selling novel with china and i cant say the name of it on air. You were aware that china was eating our lunch, so to speak, is this a reversal of things or if you look how china differs from our market it tells the whole story. There are about 90 million accounts in china. What does it mean . It means there are only 88 Million People in chooirn in the country are investing. What theyre trying to do is you say you have to behave differently. Who is you . I think if youre you cant air brush the communist party out of the market as much as you tried. This is as much of a controlled situation as you can have. What theyre trying to do restore order. You have 90 people who invested and the scary part ask you why, why open up the markets to you will an of these people and why entice and invest in the market. Last month, 1. 4 Million People new accounts every single week in china. Mostly illiterate people buying stocks. Why would the communist government allow this in the first place and knowing some form of history at some point coming to Something Like this . Its a great question. First of all, the shanghai market was open in 1990. This was a relatively immature market. When you have winners and a market thats gone up in 12 months its hard not to what do they get from it the same thing that the Federal Reserve has here wow, im up beg in the market ill go out and buy a car. You hit the nail on head. The wealth effect that theyve created. What china is trying to do is create a robust middle last like our own and its not easy to do. And theyre trying to shortcut it and state media literally pumping up the stock market. Charles do you think its a mess take to plow hundreds of billions or maybe more to keep this propped up or just let it fall . Because thats one of the realities of investing, too, at some point. The order is going to come one thing happens, of the trillions, a lot has been borrowed, margins up 400 and that has to be cleared out before you go restore order. Peter great book we want you to come on got to get back to this awe United Airlines flights are all down because of quote, connectivity issues. Well have more on that when we come back. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Get excited for the 1989 world tour with exclusive behind the scenes footage all of taylor swifts music videos interviews, and more. Xfinity is the destination for all things taylor swift. Weve got breaking news for you from the new york Stock Exchange. Theyre investigating a major problem with some tickers. Nicole petallides is on the floor give us details if you have them. So its not a regulatory i understand im gathering information for you as we speak you know and got to bring it uptodate. You have to investigate what they really mean so were talking about 220 symbols, the investigation that the nyse is doing right now. Theyre responding into the gateway connection affecting the symbols and the names we are waechg include macys Las Vegas Sands, capital one financial, there will not be a regulatory open and may not trade here at the new york Stock Exchange. You may see some of the names delayed on the open as we hit 9 30 which is only five and a half minutes away. Charles so nicole youre saying that even though theyre having trouble, and trading names 220 tickers if someone wanted to buy or sell they could get a trade through. Do you know if it would be delayed or straight through . I think if you did it somewhere else other than on the floor of the Stock Exchange, you could. Its called trade away. You can do it in other venues, but the Stock Exchange is the price point and theyre not going to open it up until they get the right price until theyre working positively. Big crowds on the ramp there and theyre gathering around some of the names and 220 names and big ones. And what a day for this to happen when were going to open up under pressure yet again. We could have some disparities to some of these. Thats why you need us down herements well, you know i know youre being funny and no serious. Charles no no listen we cant just have a system 100 of technology. Sometimes you need the Human Element to put out fires. Nicole 1100 . Charles and im going to come back to you. And the big story, United Airlines all u. S. Flights have been grounded and theres a computer glitch seems to me as we brought in Cheryl Casone and you know this industry well. Right. Charles i guess this is boiler plate stuff, but for every flight in america to be shut down what kind of a glitch could it be . Its got to be a huge glitch to affect the entire system lets boil this down all right, right now youve got united flights on the ground. Youve got a complete ground stop in the u. S. And also flights in the air. Those flights are okay i want to be clear here those flights are safe. To me its telling me theres likely, im speculating, i think it has to do with flight planning. We saw this happen in europe about three weeks ago, sometimes when you see things like this happen because when they have an internal computer glitch they cant right out and get to the pilots and crews, the flight plans where theyre going to go. All of that has to be happened out before the planes leave and the f. An a a the f. A. A. Giving a quick statement to fox business theyre putting it on united. This is an internal problem liz we saw this similar glitch on june 2nd with United Airlines and the issue is the f. A. A. Has new Computer Technology requirements for the pilots to communicate to the cockpit via ipads. We need to find out more about what the new upgrades the f. A. A. Is requiring on the airlines and how that is basically possibly triggering. We dont know. The pilots use the ipads within the cockpits youre correct and they do plug in on ground and plug those in. Obviously, now, many of the planes have wifi capabilities and the pilots are using that as well. To be clear, thats separate from the flight planning of the aircraft. Thats why i think that this is a i know its separate. There are so many glitches with the pilots communicating and also the ticket glitches. Charles i wanted to say if there are differences because they say we dont have the ability to takeoff, but we have the ability to land . Is there a mechanism for communicating . Yes, the system is in the cockpit is a separate system than the system that im talking about where i believe the glitch is happening and thats when united its route planning. And other airlines are very active on twitter these days if you havent noticed and United Airlines tweeted theyre working to work out the Passenger Services and apologizing for the inconvenience and responding to use about every angry possible passenger right now. They cant get to where theyre going. Its primetime travelling right now. The chicago to new york commuters. The second time in two months. I dont want anyone watching to think this is not a safety issue, its a computer issue and obviously theyre doing it right now. Anyone with a Family Member in the sky, not to worry, there are two separate systems. I believe in my experience with this particular glitch. If youre sitting at the gate we should be about be able to get a discount on fog fees, but beyond the keens factor people who are safe that are in the flight. Yes. Charles were not going to be able to show you because of the glitch, over 200 stocks quote, gateway issues and the market is under a huge amount of pressure. A lot of people say this is the big one. Take a listen to what harry dent told us earlier. The china bubble bursting further and especially when it starts to hit real estate harder and in the United States, i think this fracking bubble is going to be the first thing to go. Without quantitative easing these Energy Companies would not have been able to borrow at junk bopped rates of 5 when its normally 8 to 10 and oil prices wouldnt have come back up. Theyre dead. Charles harry dent outlined a whole lot of issues and were living through them moment to moment. The market is opening and were hearing the opening of the ringing of the bell. That was harry dent. The futures have been down all morning long it wont be surprising in a few minutes if we see a tripledigit loss. The dow is opening off 46 47 points and probably open down a lot more than that. Weve got larry leven and i want to hear what we heard from harry dent. What about the notion that chinas implosion will the linchpin that collapses our market . It possibly could be. Im negative on china to the point that china is facing a 1929 style crash and i think the contagion possibilities are huge so i think its going to affect the United States markets and global markets. This is only the beginning of whats going to happen in china. Charles the 1929 crash was exacerbated by a lot of mistakes, we had some protectionism, we had the fed a lot of people said they moved in the wrong direction, it was a Young Organization then. China theyre communist, but have to be somewhat students of history. Even if its a sign of panic, and not it is a sign of panic. Charles so sometimes panic is good . No, its unfortunate to let it go this far. They cannot rule out the markets and they have to work through the markets. The market will be closed. Well this is different from 1929. You know i dont know who is this person putting out the commentary is way off. Not you, but im saying before by the way, its 6 of chinas population is in the markets and here its 30 of people under 30 are in the market. Maybe half. They say theres 90 million accounts here. And listen the government of china is working itself to prop up the market whereas in 1929, the private sector the bankers moved. Larry, i know that traders are salivating. And you guys have to make a whot of money a whole lot of money and could we see i think we could. There will be more of it and everybody is betting on china being the catalyst that keeps pushing this market down. One of the key things im a technical trader and so are a lot of the geeseuys behind me. If they turn them out there, youre looking from a technical standpoint. Charles we have breaking news from the new york Stock Exchange and theyre investigating the problem with over 200 tickers. Lets go down there, nicole give us an update. Right, if you go to the macys post its not open yet. They want to make sure they do this right and i started to hear maybe they would open these things manually. I was asked to leave the ramp area where they were working on that, trying to get the latest information. If you walk the floors you can see some of the names are not open. You can make sure that they open seamlessly. Youll see how stocks are trading and some have not opened yet and theyll make sure the system issues gets these open. To your point, theyre not open, but we have macys down 55 cents. How does it work down there . Are you sensing frustration, anger panic about the Central Location where the trades are actually made and you have individuals overlooking them and theyre sort of blinded . Right, and now theyre opening, i just got the word that theyre opening them now. Its rare that they have a system issue, but when they do they try and resolve is particularly on a day were down 144. Charles okay hope youre wearing your sneakers nicole well want to check out this stuff. United airlines have grounded all of their flights and all of these stocks are lower. Here is the thing, crude oil is getting hit big time this month. Double digits would have been a great time or should have thought normally that they would be higher. And isnt the do j. Talking collusion, and running it up. The airlines have not been able to stay out of the move lately but its a major time of the day in particular Summer Travel right now. Its a huge story that develops there and meanwhile this issue of china on the table and watching the stock market plunge overnight there, charles. Weve been all over this all morning and how we see the u. S. Markets are opening and the stock exposure to alibaba. And there you have the airlines and the government of china is way too far into its own stock market. Thats what they are. In your house, in the deliver room and no freedom. Well take a look at the big u. S. Companies to sandras point doing business in china. Were talking caterpillar, General Motors qualcomm all of those stocks are lower and now look at some of the Chinese Companies traded here and much lower led by the big one. And the biggest ipo in history, alibaba, that hit again and youve been making money on the china short trade. Where do you look on the down side. Are you one of these guys who are short and you dont care short at 10 and one at one. If it goes to one, im out. I dont see a bottom here whats happening in china. Really . The market beats 1 of this. As the market was rising most of the leverage came in the first half of this year. Thats yet to be washed out. The government is going to do do whatever it can. You talked about that that was a great time for this and like greece we did everything and then hit a brick wall. Chinas market made a move about you has it made the kind of runs by the cataclysmic stock. The total capitalization was 10 trillion dollars its now 7 1 2 trillion dollars. Thats a lot of money. Sandra we have to assume you see no fundamental reason for the run upup in china stocks . Charles last hour you said the planned move from poverty to the middle class that so much of the market had been based on. Are you saying that that story is never coming to fruition. Im saying that the funds were never there in the first place and then good the fundamentals are going to be hit because the capital markets, if they get hit and they will be. I agree with shah basically china was building a freedom of dreams stock market, the government comes in and now theyre acting like the elevator operator nobody can find the floor in the chinese stocks because the voft is manipulating it and pools of money. This is the time that you should be buying and its going to turn out to be 27 higher from here. Jim rogers a kid with one of the bigger chinese investors. Hes been a huge believed to the point he moved his entire family to china, speaking mandarin and hes accumulating a bigger position in china. I used to interview him and i laughed at him and then another bought a house in harlem i met her daughter and mandarin danny, but hes a longterm investor, hes invested for the next five 10 20 a year. Were dealing with a daytoday, even minute to minute crisis because i think that china will be a major threat to husband and we would be dumb to say china, this is fake. Theyre graduating 100,000 students in our country every year, but 50 have gone back. Commodities, we know that china plays a part. Its down here regardless of china. Thats a big drop. It flows through jan and february lows. It will be five or six months and all of stocks have hit down lower, but not as much as cooper. Cooper has a big deep lyly particularly it looks like a few people took bob nardellis buy cooper. Well dealing with that market. Thats what the markets are all about. The second thing that has a lot of people here everyone watches remembers a few years ago when their 401 k blew up dreams of early retirement and living this moment to moment and this does not help. Theyre looking photographer an average rage like we saw whats whats happening, i think its a possibility. Maria more than 15 chance . Yes absolutely. 78 7800 people got layoff notices today. Lets take a look microsoft is up 3 4 of 11 at the moment. Talking 7800 jobs and were also taken an i am parment charge 7 poifr in the meantime i want to bring you the news. The issue has been resolved and we were look over 200, roughly 220 names, names such as macys and Las Vegas Sands and so the nyse is saying that the glitches that they were looking at, they have been resolved and the traders get that note on their hand held as well. Funny guys when the Big Companies layoff people and the stock goes up that upset people and elizabeth of the warrens of the world get power when a company can pay that what do you think about that. They have the right to do that. And its part of the theres something unseemly about it. We have to get back to the big stories the light on the regional partners are no longer affected. Maybe some grounding gains on united, they were grounded earlier in the year and the carriers are coming back online. Theyre fixing the problem slowly, but surely. Were going to keep you updated liz weve got numbers, 3500 flights affected and 138 International Destinations affected here. This looks like a ticket issue in the system there. The dargest story, the and the biggest story, the triple digit move we saw this yesterday and believe it or not, it had a happy ending. Its going to be a big day for the market i cant guarantee a happy ending, but i can guarantee well be right back next. Doug. Youve been staring at that for a while, huh . Listen, Td Ameritrade has former floor traders to help walk you through that complex trade. So youll be confident enough to do what you want. Ill pull up their number. Blammo. Lets get those guys on the horn. Oooo. Looks like it is time to upgrade your phone, douglas. For all the confidence you need. Td ameritrade. You got this. Going to check the big board here again. It feels like deja vu all over again. The good news at one point before the open signaled a selloff of 200 points. Its early in the session, a couple of rallying points fell. And well keep an eye on that in a minute. Oil made a nice reversal yesterday and its carrying on today. Up slightly, but remember its been in a free fall so even up 30 krints cents is a relief. Gold looks like its starting to fall apart, its up 11. 61 for oil. Not just china, but a sixyear low and some people say, yes, we have to look at the greek etf the saga continues, its above 10 its been lower than that, but weve entered into a calm quiet period another moment lets call it a moment of truth. Could be sunday could be before then. Now the 10year treasury yield. Im surprised at 2. 24. We know that a lot of money typically flocks to our treasury as a safe haven. United, the flights in the regional partners are no longer affected liz its a huge stop nationwide. People cannot get boarding passes. 130 International Destinations are affected here and were getting information basically uel has a good departure record, its pretty decent. Looking at the others. Charles well keep an eye on that. And in the world of streaming video, rolling out a host of original films. And showtime is rolling out their own stand alone. Pete, so many things out there, traditional cable, a lot of people say its the beginning of the end for them. Or is that premature. I think its premature, its going to a la carte. When you cut it down to internet its pricier, 60 a month and add the 10 a month, 15 a month, 7 a month services on it ends up being about the same as cable or more. Charles were hearing about the grand am grand ambitions, could that be the coup de grace, i can cut the cord . If you can get a cheaper broadband than what the cable or Fiber Company is offering you, that would be the ultimate holy grail in this, but thats not to say its bad news. The power is shifting more and more, netflix can create cultural moments with shows. If im the cable companies, how will you fall asleep if you dont have the channels to flip through. Its a marketing game. Before we go disney is looking to grow the Star Wars Franchise and han solo, a prequel that sounds cool to me. And han solo i dont know doing a story about a guy i know who will survive because he has to grow into the star wars guy. And im not going to poohpooh that one. Appreciate it pete. Enooh more companies are backing away from donald trump. So what does it mean for the rest of the field, the g. O. P. Field . Some are worried hes tarnishing the socalled republican brand and that could hurt them not only this time around, but for many years to come. More Varney Company next. Super poligrip seals out more food particles. So your food wont get stuck and you can enjoy every single bite. Eat loud, live loud, super poligrip. Super poligrip holds your dentures tightly in place so you never have to hold back. Laugh loud, live loud, super poligrip. [ male announcer ] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. Take a look at this guys. Sell off is a sell rating the worst case of the morning, 200 points to the down side. Almost there, 192 points as pressure mounts and selling bee gets selling and the question mark is china. Lets look at the Chinese Companies that trade here theyre down and been down big time for a long time more than a week and bigger names, alibaba, the biggest ipo of all time hit an alltime low. Much more on the markets coming up. Right now we want to bring in the david, donald trump has taken over the g. O. P. I dont know if you consider yourself part of the establishment part of the part that loves donald trump, but almost every single day he loses a business endorsement, a new form of criticism, one that cant gain traction i thought was his 401 k policy. Ultimately had donald trump been good for the brand or bad for the brand. Dont be surprised if donald trump continues to lose businesses and theres a press Conference Announcing his doctor announced he has a severe and curable disease and he must drop out of the race to take care of it. Charles is that politics 101, excuses to get out of the race. Is that the first one. Hes an interesting character, no question about it and his immigration comments certainly have caused the firestorm, but i would remind you tom tancredo who ran for president and similar positions on immigration didnt become and he never held at 15 and never got the traction that donald trump has gotten. Were a long way away from why does the establishment hate donald trump . I dont know that the establishment hates donald trump. We want to make sure that we elect someone who can make it work or youre saying is businessman cant or donald trump because they cant voters want to touch their candidates, talk to their candidates and donald trump actively blogged that he doesnt like to shake peoples hands. If youre going to iowa with voters, those things matter. Charles will you admit that theres something wrong with the political class, that something has gone wrong and if you want more examples of that look over to greece when everyone is giving things away. President bush exempt from these these politicians spend too much money and make too many promises they cant fulfill. Thats why theres a fever for someone who says no. Until donald trump comes out with specific plans rather than platitudes. Wouldnt it be a pr fiasco to keep donald trump out of the debates . If he meets the rules and requirements hes going to be allowed to be in the debates. You like how theyre set up or not. Change the rules ad hoc . Fox news is going to decide who is going to be in the initial debates. Working somewhat with the party. Charles here is the thing, a lot of people remember that in a lot of ways people feel like the republicans have shot themselves in the foot over and over again through the primary process whoever comes out of it is wounded, wounded to the point they cannot win. It felt like there would be a gentlemans understanding that this wouldnt happen this time. Does donald trump change that . They may wish that theres never been an election competing forces want hurt each other. It didnt hurt barack obama when hillary and he went at it and its not going to hurt the candidate. Remind you, that money can give you name i. D. Charles hes selling a whole lot less ties, but were getting a wrap. So back to the big board, guys weve got to talk about this. Off now 164 points and trickled to down the 200 point move a moment ago. Weve got Charlie Gasparino coming in. Charles breaking news for you right now. 3500 United Airline flights frownedded nationwide. Now faa says issue has been resolved. It was a computer glitch. They say it is fixed. Delays and ripples certainly last throughout the day. Want to check airline stocks. They have been under a lot of pressure. Theyre still down today. A lot of them really a lot lower. Want to bring in tom parsons from bestfares. Com. You say this could not have happed at worst possible time. Why . This is one of the busiest seasons of the year. Only good news it is wednesday, which is one of the slower days when you talk about peak summer i dont think there is such a thing as slow day in the sky anymore. Its, and starting Early Morning that is a big Ripple Effect all the way through the system. They probably lost at least two waves maybe three which they have takeoffs to and from all their hubs and they have about nine of those. Charles right. When you look at newark, chicago, houston, washington, d. C. , that affects a lot of people real fast. Charles tom, you mentioned that these days there is no slow time. A lot of people say that is deliberate. That has been manufactured by a handful of airlines including United Airlines. Recently they were, there is talk about them perhaps being involved in collusion. Right. Charles when you get Something Like this on top of those sort of accusations it does rankle passengers out there potential passengers. How does the industry deal with that. I mean theyre going promise you, this is not something united wanted to happen today. That takes away from their coffee time and all times of other things when they do get a break. When we look at the fact, i really think too when you go back to that collusion i think a lot of that has to do with the department of justice. Remember they allowed these airlines to merge. They took flights out of the system. One morning they woke up, they said we have a very tight system out here. Two choices add more planes, more flights or, put pressure on air fares to make them go high. Southwest was only one that added flights last year, 8 new flights. Charles this year when they announced they were going to add more entire space went down. Tom, thanks a lot. It will be a real rough day particularly for business travelers. We appreciate your expertise. Thank you. Charles lets get back to the markets because the dow is pulling down again. We keep getting down minus 190, 192. If it doesnt hold what does that mean . Well probably test it again. Oil crashed yesterday, and turned with the markets. So far holding up maybe found support. Nevertheless a major move. 10 for crude oil for the month holding up. Gold is store of value where you go where the world is imploding. We certainly have a lot of hot spots. Were focusing on copper at sixyear low. Might be ultimate proxy for Global Economy and gold. Copper holding up. Look at greek etfs. Vote could happen before that. Meantime we probably see freak, anything involving greece directly including this etf drift lower. This is down 3 right now. Earlier today before we started trading, we had on harry dent infamous and famous for a lot of smart market calls. He said earlier on the program talking about potential crash he is thinks is in place. Take a listen. China bubble bursting further. Especially when it hits real estate harder. In the United States i think this fracking bubble will be first thing to go. Without quantitative easing Energy Companies could not borrow at junk bond rates at 5 when it is normally eight to 10 and oil prices wouldnt come back up. Theyre dead. Charles Senior Correspondent Charlie Gasparino. What do you make of what harry dent has to say . When you have global recession stocks will fall, that is a given. I dont believe this guy has been calling for the end of the world for last 10 years or so hasnt happened. Even after the financial crisis. That doesnt mean he is wrong. At some point he might be right 50 years from now. I will say this i spent most of the morning trying to figure out what is our direct impact on our economy and our markets and our big banks what is going on in china which is fairly unpress debted. Market imploding and government coming in to pie stocks. We didnt even do that. We bought bonds quantitative easing. Charles we dont have communists that control banks. We did buy, we didnt necessarily buy directly but we saved banks, lynchpin of the whole market. We didnt buy stocks go directly into the markets that way. We did other things. What im saying, seems like the our banks are not sort of Holding Chinese internet stocks. Our investors are kind of, hedge funds might take a hit on Commodity Prices but not big. Seems like this is at least for the short term, this is an implosion of the chinese way of doing business, the notion that the communist party can come in and control the animal spirits of communism. That is what you got here. I dont think it will spread. Obviously the market is off but remember markets trade off headlines. Bad headlines, they dont like that. Charles you talk to a lot of hedge fund guys. You think the risk is more on the commodity side or chinese stock exposure. Well, chinese stocks are going to get crushed right but who holds those stocks . Not us. Retail ivestors and banks in china. Commodity prices will get hurt because china will stop buying gold, copper guess what some hedge funds might get hit like that. Charles not contagion because remember a few years ago whoever hear of the thai bhat. It almost toppled entire Global Economy. The thai bhat didnt charles it was spark for something that got real ugly where people who won nobel prizes lost their shirt. Thats right. Because they were leveraged gazillions to one, longterm capital youre talking about. I dont see that right you no. Charles okay. Thats what people are saying. Something bigger here their way of doing business. Here is where it gets key. It is not working. What does it say about their prestige and ability to carry on and basically dominate as economic power. Their government wants to control the economy, market, businesses everything. They want control and they cant control. The question is can they control . Charles well see. As long as harry dent has been calling for a crash weve been saying china was going to implode. Theyre still up over 70 over last year. They dont use gaap. Charles neither do we. We do, that is the problem. Charles well come back to talk about that. Thanks, charlie. Hey, lets head out to capitol hill because we have fbi director james comey pleading his case that terrorist groups like isis could take advantage of Data Encryption Technology like the kind that apple and google use . We have blake burman on it. Blake . Charles, good morning. Because it is encrypted much of your information on cell phone or computer cant be seen by the feds because they have a password. Fbi head james comey that is making it harder for Law Enforcement to catch terrorists and bad guys. He hasnt determined yet to congress to actually force them. Comey and those in the business of National Security say encryption allows terrorists to go dark that is the term they use. Meaning they can communicate terrorists with one another, knowing intelligence officials cant read their texts, messages and other writings. Comey and Deputy Attorney general will testify shortly, quote. The benefits of our increasingly digital lives have been accompanied by new dangers. We have beens toed to consider how criminals and terrorists might use advantages in technology to their, might use advances, rather to their advantage. Now some have raised the idea creating what would amount to master technological key that would unlock the encryption features. However in the new era of data breaches Silicon Valley is pushing back against demands to loosen encryption. Apple and google recently strengthened that feature. Charles blake, thanks very much. Were always on guard. That is vulnerable spot for entire economy and many of us. We want to get back to Hillary Clinton. Last night she sat down with cnn or oneonone exclusive interview. Take a listen to what she said about the criticism she receives. Well, i think when you are subjected to the kind of constant barrage of attacks that are largely fomented by and coming from the right but do you bear any responsibility . I can only tell you that i was elected twice in new york against the same kind of onslaught. This has been a theme that has been used against me and my husband for many, many years. Charles joining us now former Senior Advisor to president george w. Bush and Fox News Contributor karl rove. Karl, i got to tell you, what i hear a president ial candidate complain about being subjected to scrutiny and questions itorries me but this has been the modus operandi for them a long time. To hillarys point, its worked well it worked in getting her elected to the United States senate. Im not certain it will work getting her elected president. First of all we have some 20 some odd years and problem is getting worse not better. When she left office of secretary of state she has Approval Rating in the 60s. Now has Approval Rating in the high 40s. Significant drop. People are taking a close look at here her on a number of issues she is not trustworthy and or credible and she is making those questions and concerns larger. Charles although aside from all those things youre saying, of course intelligent, wellschooled voters focus on these kind of things but there are a lot of people who are apolitical. When they come around to every two or four years going into the voting booth other things move them. This subjective, constant barrage, i am a victim women are victims could that resonate enough that nothing else matters ultimately . Well i think it depends upon what is the substance of peoples concerns. And i dont think that will be sufficient in the fall of 2016. Youre right right now a lot of people who are paying attention to politics, they tend to be more partisan, they tend to be better, they tend to be better involved in these things theyre paying attention. A lot of people arent and wont pay a lot of attention until the fall of 2016. But those people the swing voters who decide president ial elections do put a lot of emphasis on personal characteristics of a candidate. Thats why these numbers about trustworthy and cares about people like me and somebody i can relate to are so bad for clinton. Those are exactly the kind of characteristics that will play a big role in how those people make those decisions in the fall of 2016. She not off to good start. Got plenty of time to correct it. She will not correct it by giving epsoddic interviews to the press and complaining about being asked tough questions. She has to answer the tough questions. Why did you charles karl, 30 seconds left. Got to throat out a question about donald trump and where again, it feels like the traditional gop establishment which many people think youre at center of, one of the big players there, would like to just see him go away. Where does he stand in this big crowded field . Is he helping or hurting you . He is not going away and i think he could be the todd aiken of 2016 election saying outrageous things about subjects that cause people to question the entire republican ticket. Before you paint him as republican insurgent, as a strong conservative who is representing the grassroots of the party against the establishment, just remember this. Between 1989 and 2010 this is a man who gave 314,000 in Campaign Contributions to democrats and 2,890,000 to republicans. The largest contribution he made was to help the democrats take over the senate in 2006 and mcharry reid leader. Gave money to harry reid, ted kennedy, Hillary Clinton. Charles we got the gist of it. You didnt need the whiteboard. Well talk to you real soon. Up next we have big cuts coming to the United States army. Were talking about 40,000 fewer troops over next few years. Dont we need the boots on the ground to defeat isis. Actor tom selleck gets some drought shaming in california. Well tell you what he is accused doing right after this. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Usaa makes me feel like im a car buying expert in no time at all. There was no stress. It was in and out. If i buy a car through usaa, i know im getting a fair price. We realized, okay, this not only could be convenient we could save a lot of money. I was like, wow, if i could save this much, then i could actually maybe upgrade a little bit. And it was just easy. Usaa, they just really make sure that youre well taken care of. Usaa car buying service. Powered by truecar. Online and on the usaa app. Charles checking the big board down almost 200 points. This is really really, treacherous stuff. Hey, stuart is on vacation. He will be happy probably knew before we did. Microsoft, look at that. The only stock up right now out of the dow 30. That is absolutely amazing. Announced layoffs. Charles 800 layoffs. A lot of people get upset when stocks go up by firing 8,000 people. Getting to the price of oil. Down big yesterday. We got a reversal. Still low enough hopefully at some point we get breaks at pump. Gas is down only fractionally. Down 2. 76. The Washington Post reporting that the Washington Redskins are losing a trademark battle. Cheryl what is this all about . They could still appeal it and im sure they will. Basically a federal judge in Northern Virginia ruled against the Washington Redskins. They will be losing that trademark. This comes from a lower court, u. S. District court that basically said this youre seeing on the screen is offensive to native americans. This lawsuit brought by four different nativeamerican communities that they wanted trademark taken away from the redskins, Washington Football Team because it offended them. They have taken to the next level. This judge still voting against the redskins. Charles when you say trademark, are we talking about emblem or also include the name . The name emblem, everything. Mascot as well. That entire image they do not own. What the redskins have been fighting in court, the team says, it hurts us. Any entrepreneur, any joe sitting in his apartment hey, i will make some redskins attire and sell it on the street. Totally fine. Charles they dont control that anymore. Dont control it anymore. They will appeal i will say. They will definitely appeal. Fighting this tooth and nail. Charles it has been going on a long time. Lets check airline stocks. Remember we had the big news this morning faa was telling us or told us a computer glitch grounded all of United Airlines flights. That has been cleared up. Although were being told, weve been told worldwide, as a matter of fact, those flights are grounded. So it is not just of course a u. S. Issue. Lasted for about an hour. Now 3500 flights affected are back on course. Lets face it. There is a Ripple Effect. Well have delays for the rest of the day. Charles a lot of aircraft starting their day going to overseas destinations. That is what that means. Youre saying this is the biggest travel day for businesses . Tuesday and wednesday are two of the biggest traveling days for business travelers because sandwiching it in with a weekend. Charles i want to talk about this. This is huge. The United States Army Planning to cut 40,000 troops over next few years. This is how we will beat isis . Is this how we fight an intelligence war . Joining us now is chris harmer, with the institute for the study of war. It is interesting chris this comes a couple days after president obama tells america that this is generational fight more of an idealogical fight and there is no way the United States can beat them with brute force. It would be akin to whacamole. It doesnt feel right t really worries me. Where do we stand with this. First point, violent ideology is not defeated by better ideas. It is defeated by force. Osama bin laden was not killed by a better idea. He was killed by seal team six. Circumstantial terrorists you can appeal to these people with better ideas. Idealogical terrorists will not be swayed or argued with. You have only one option to destroy them or be destroyed by them. In terms of cuts to the military, this is basic math. A nation that can not manage its finances can not protect its interests. Were 19 trillion in debt, plus another 5 trillion in funny money from the Federal Reserve and 100 trillion to 300 trillion unfunded liabilities. United states has extraordinarily high cost basis of warfare. We cant afford it unless we get our financial house in order. Charles ultimately when you talk about Financial Realities and talk about defense, we talk about rome all the time as cautionary tale for america. And i toward the end of the roman empire, this great empire militarily took over the world was hiring mercenaries. We have to make this priority. How do we work on this in washington, where were cutting defense but we still see social programs, whether meanstested or not go through the roof . I would simply say that we are not a wealthy nation because were strong militarily. We are strong militarily because we are wealthy. Our military strength rises from our Economic Freedom and economic performance. Everything that the federal government does to degrade that, excessive social programs, social engineering reduces ability to defend our strategic interests. We need to be forwarddeployed and forward engaged. China is spending more. Russia is spending more. Isis is growing. We need to respond accordingly. Charles chris thats why we love love to have you on the show you help us a lot. Thank you. Thank you. Charles irs scandal. We have another bombshell. This might be the one. Was lois lerner collude with federal agencies to bring conserve charges to conservative groups. On the advice of my counsel i respectfully assert my fifth amendment right and decline to answer that question. Push your enterprise and you can move the world. But to get from the old way to the new youll need the right it infrastructure. From a partner who knows how to make your enterprise more agile, borderless and secure. Hp helps business move on all the possibilities of today. And stay ready for everything that is still to come. Do you want to know how hard it can be to breathe with copd . It can feel like this. Copd includes chronic bronchitis and emphysema. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. Spiriva helps me breathe easier. Spiriva respimat does not replace rescue inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with Spiriva Respimat. Discuss all medicines you take even eye drops. If your breathing suddenly worsens, your throat or tongue swells you get hives, vision changes or eye pain or problems passing urine stop taking Spiriva Respimat and call your doctor right away. Side effects include sore throat cough, dry mouth and sinus infection. Nothing can reverse copd. Spiriva helps me breathe better. To learn about Spiriva Respimat slowmoving mist ask your doctor or visit spirivarespimat. Com charles quick check of markets of the wasnt it around this time we started to creep back off the lows. Obviously still getting crushed, off 173 points. Take a look at oil, oil was interesting yesterday. Reversed with the market. Holding up there. Not found nearterm support. Gold is sort of proxy for the global imploding. A lot of people would be buying it over the years because of this. Working out up 7. 20. Look at copper, talking about industrialized Global Economy. This is key cog to it at sixyear low. It hasnt hit a bottom. Greek etf is starting to drift. That deadline is sunday. We go from 19 players to 28 players. Maybe deal happens before them. That probably continues to drift lower. Meantime ultimate safe haven has been the 10year treasury. Yield unchanged, 2. 23 . Of the latest on irs scandal. Get this guys, a new document dump shows irs targeting scandal may go even deeper than anyone ever imagined. Gerri willises, she has been on this from the very beginning. Youre following it closely. The plot continues to thicken. Gets worse every time. Let me background people not uptodate. Were talking about the targeting scandal and heirs refused to process applications from Tea Party Groups and conservative groups. These are groups that wanted free speech. Irs said no. That is the central issue. Here is what were learning today it wasnt Justice Department. It wasnt just the irs that wanted to persecute and prosecute these groups. It is also the Justice Department. And it is also the department of justice and the irs. All these groups coming together, three agents. Charles irs, Justice Department who else . We have the irs, we have the fbi and the department of justice and three agencies. Charles who was operating this . Was irs at the center of this asking these other agencies to let me lay it out for you. Here is what is going on. Doj recap from act 8 2010, lays this out. Describes officials from fbi justice, irs, discussed how to use federal election law to bring criminal charges against these groups. Charles oh, my goodness. Listen to this. There is another amazing thing out of this information. 21 computer disks, irs computer disks went to the and these were filings. Irs filings from these groups. Over a million pages of confidential information, which are not supposed, feieral law banning this from happening. Last year they said this was happening, irs was meeting with the Justice Department to probe nonprofits. But at the same time, watch this remember eric holder Justice Department said he would investigate the targeting of nonprofits. Here is what were talking about now. Theyre investigating themselves. This conversation will turn to a special prosecutor. Charles this is amazing. Were talking targeting. I had a feeling this would happen, gerri. Were glad youre on it. Real Justice Needs to prevail. This is really despicable stuff, using the government as a weapon against agencies or people with different political opinion. Lets go out to greece. It is not just greece. We have our own greece puerto rico. It has major financial problems. Hillary clinton says she has the answer. Let them go bankrupt. What difference does it make . varney will be right back. Charles checking price of oil, remember all morning long it was hanging in there tough. Then we got really, which is so important, the weekly inventory report. Crude oil was up, was it no. 384,000 384,000, a build. That means less crude. People thought, the experts said there would be a 700,000 drop. Obviously way off almost by a million. Natural gas supplies, those went up 1. 2 million. We were expecting a drop there as well. Consequently a little bit of rally and strength we saw in gas and oil has evaporated. The question how far down we go. We have broken 52. That was support all morning long. We have to get a chick quick of markets. Bad news is hurting everything. We were coming back slightly on the dow. Now were near lows of the day, down 208 points. Central theme here, china is down big and hitting us here at home. Lets do this. Look at some big chinese stocks. These are names that you know including alibaba, that huge ipo at lowest price since going public. There is another big story this morning. Unite the Airlines Flights were grounded but faa says the issue is solved. It was a computer glitch. You have to expect major nationwide delays and ripples throughout the day. Airline stocks have already been under pressure but with oil going down have not turned around. We have been on hour 1 2 and havent gone to greece. We have to do that. Still hanging around like a dark cloud. Our man from greece, Ashley Webster doing amazing job. Ashley. Thank you, charles. The bank behind me in central athens has been closed 10 days. There are two atms, the one on the left has run out of cash. The question how long can the one on the right last . Were hearing more and more banks running out of cash. With no solution on the horizon the situation is more critical hour by hour. What is being done to get this fixed. Alexis tsipras went before the european parliament. He probably regrets the decision. Took an earful from other european lawmakers especially the germans. He had a few things to say on austerity. Here is what tsipras told the law makers. No exaggeration my country over past five years has been transformed into austerity laboratory. Because you kept asking for money. That is the because you kept asking for money. Im not responsible for the woes of greece. Are the wicked foreigners. No, it was your own government. On taxation, he said previous governments allowed tax evasion to run riot. None of the reforms improved functioning and efficiency mechanisms of state. So in other words it is dysfunctional and it is still dysfunctional. Charles, bottom line the greeks have to come up with a plan by the end of tomorrow. It gets looked at by everyone in the e. U. All 2countries by sunday. Does greece get a life own or do we seijas is it laves be reuters release ad poll that more economies now that ever before say greece shut off the eurozone. Charles because merkel is playing hard ball. Ashley, well be out to you shortly. Weve been telling you about puerto rico. They pose a greater threat to the United States than that situation in greece. Take a look what Hillary Clinton had to say about it. Congress should provide puerto rico with the same authority that states already have to enable severelydistressed Government Entities including municipalities and public corporations to restructure their debt under chapter 9 of the bankruptcy code. Is that really a good idea . Well ask one of the best, Manhattan Institutes Steve Malanga is with us. Essentially Hillary Clinton is saying rewrite the rules or give them an easier way out . Here is one of the problems with that. That certainly would give them an easier way out. What she is talking about allow municipalities within puerto rico, not the territory. Charles not puerto rico. Because you epup a pandoras box. If they can do it why cant california and other states. Right. First challenge, certainly that would help puerto rico. But part of the challenge, if congress does it theyre changing rules in the middle of the game. Many people bought municipal debt in puerto rico knowing essentially these entities can not file for bankruptcy and puerto rico the territory can not file for wait a second. I hear what youre saying. Jeb bush is saying that puerto rico entities should be allowed to file bankruptcy. 60 of the puerto rican debt is held by our own u. S. Muni bond investors. What would that mean to them. Charles a haircut. Almost certainly a haircut. Why do you go to bankruptcy except to change the contract. Youre changing essential this in midstream and thats unfair. If you want to change it proactive charles wouldnt be the first time. We changed the rules with General Motors bonds. We changed rules that was incredibly unfair. Incredibly unfair. Charles that is is unfair. That is how you build 72 billion in debt in the first place. Who regulates that, these promises . Gdp is 72 . The debt is 72 . Is that the magic number, 100 debttogdp . Is that the red flag. We dont have states anywhere near this level obviously. Part of that because puerto ricos economy is not commensurate with any state economy. Its a very very weak economy. The thing is when you have bankruptcies in California Watch who fights it . Unions and Pension Funds right . A real sticky wicket. Charles why Hillary Clinton stopped short saying do it with states. Steve, thank you. Cheryl, what are you watching . Charles i want to show you some companies in this country that have the most exposure revenuewise to china. A couple of them are really getting hammered. This is wynn resorts. Wynn. This is steve wynns company. That stock was down 4 . Look at General Motors, another story we have to watch. That stock is down almost 4 1 2 . Gm china is very Important Company to them. Qualcomm dunkin marriott apple yum, caterpillar all names all of them down as chinas market falls overnight. Charles cheryl, thank you very much. We have new data out from the Census Bureau. The welfare state is alive and it is well. A startling amount of americans are getting some form of government assistance. We have the shocking numbers for you. Well give them to you right after this. This allergy season, will you be a sound sleeper, or a mouth breather. Well, put on a breathe right strip and instantly open your nose up to 38 more than allergy medicines alone. So you can breathe and sleep. Shut your mouth and sleep right. Breathe right. Im Nicole Petallides with your fox business brief. The Dow Jones Industrial average is down 185 points full percentage point to the downside and we are seeing selling across the board. The s p down 22, the nasdaq down 62 and lets see some of these names weighing on the dow. 29 of 30 names down. Goldman saks as well as united health. Apple 3m United Technologies also lower. The only name up is microsoft. They announced layoffs and restructuring. S p is at 2059. Were watching that. Going in and out of negative and positive territory for the year 2015. All 10 sectors are in the red. Telecom and tech in particular. Dont forget the china story on those. Analysts cutting tesla and harleydavidson. Both are lower. Much more Varney Company coming up. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Charles now this. You know about this public water district, the whole drought in that state is amazing. Now californias claiming that actor tom selleck has been stealing water. Cheryl casone. Tom selleck . Magnum p. I. Has been drought shamed absolutely. He is accused of stealing water from the municipality where his house is. Charles how . With his own commercial water truck. He already received a seasoned desist order, telling him quit stealing our water. He basically, this is from, i will give you the municipal water district. They say basically 12 times they have documented and caught him, actually hired private investigators, which is like kind of funny he played one on tv. Charles yes it is. They followed him and the truck went to their well 12 times, back to his house. He kept doing it. Even after they said stop it. He kept doing it. What was he doing . Taking a fire hose and pumping it out into the truck . He has his own truck, commercial water truck. Charles a lot of water for showerss right . Yes. Charles in his mind im paying a lot of money in tax. This well is 74 of the provides water needs of county. Basically one water well. Yes, to your point liz, it was a hydrant. It provides most of the water for this, within this water district. He is taking it for himself. He and his wife charles magnum p. I. , baby. It is his water. Now, weve got to show you a number and it is going to shock you. One in five americans right now participates in a Government Assistance Program each month. Were talking about 52 million americans. Emac is on this story. To large extent a large part of america is already greece. Well, this is out of the Census Bureau which tracks it. That is 1 5 right now, 21 . That is up from the more than 52 million getting he will welfare. It is up from 42 million in 2004. So we added 10 Million People. That is up 24 . The issue here is what is the true poverty rate . Because the official poverty rate doesnt count food stamps. It doesnt count medicaid. It doesnt count the earned income tax credit. Charles you have to these are means tested. You have to be lower income or no income to qualify for them. Two things in my mind emac. We have a welfare utopia. Yesterday, chicago will give people bikes for five bucks. President obama talking about giving out solar panels. We want to help people. When do we hit the point were not even helping them. We need truth in government numbers the poverty rate. E Census Bureau has a supplemental poverty rate. It shows with the Government Assistance Programs in, the Child Poverty rate is actually lower and africanamerican poverty rate is lower while the elderly poverty rate is higher because of health costs. Charles it may not matter. When you are buying votes remember voting costs, Supreme Court said it is okay for taxpayers to help people up to 400 above poverty. That is buying a lot of votes. But it is backfiring, how do you get people to work if you give them everything . You can not outrun the math on entitlement programs. Entitlement nation. That is what were becoming. That is what Bernie Sanders is saying. Charles destroys the country, you guys. Along the same lines, right. Were talking more focus on the race for the white house. Look at that we can barely fit it all on one screen. Obviously crowded gop field. 14 candidates and there will be a lot more. Will we see a clear winner by the time we get to the debates in cleveland next month . We have wall street journal, Manhattan Institute scholar jason riley. They are all the voices getting muffled with one or two standing out. Is this good or pad for the process of the gop . At this point it is fine. Charles dont we have to weed out . Does it get confusing . It inevitably will. It looks to me if you are a republican, a conservative you see a very strong field out there. You see a very deep bench. And so, you let the process take its course and debates will be one important way of vetting the candidates. Right now, really its a popularity contest. Most wellknown people tend to be surging. Charles ones that are surging. Only two guys are surging right . Jeb bush is not conservative per se, even though like to be portrayed as one. You have donald trump. Theyre surging in all the polls. They keep going up. Jeb to me is sort of a mystery. I never hear from him. Never says much. A lot of people in the core gop dont like him but he is surging in the poll. We do know why trump is surging in the polls. He hit a nerve. You may not describe jeb as conservative but his record as governor is conservative. Charles common core . Record as governor. Charles the platform he is running on now, jason . Do we even know what it is . Jeb bush has conservative governance record as executive of a state. He has run something and ran it quite well. Charles how do you juxtapose that with donald trump. I dont think that trump is a viable candidate in the long run. I think this surge reflects really, what is his base . Celebrity worshipers and so forth. That is not a group that will make somebody president. Charles who loves him, core conservatives who feel the meallymouthed politicians let them down after they gave big victory in november. This is it what theyre telling me. Im not sure he is running. Charles they want someone not afraid and who doesnt back down or afraid to tell the truth as painful as it is. Im not sure he is running. He has not filed all the financial paperwork. We dont know if this is another false start like ones before. As secondly, conservatives get to know trump, he gave money to former governor eliot spitzer, to Current Governor andrew como to senator Hillary Clinton and clinton foundation. His trade policies are not all that different from Bernie Sanders. Trump is conservative . Depends on how you want to measure conservatism. You say he is opportunistic . That speaks for itself. I dont think that this will be sustained. I think this is a, this is what we saw with the herman cain before and others four years ago. I dont think it is charles a blip. But an exciting blip. New hampshire is the gamechanger. Charles well see something a lot changing before then. Jason, thanks a lot. Really appreciate it buddy. You may not be able to take money out of the banks in greece, but if youre state worker in illinois you may not be getting paid at all jeff flock, he has got the details and well be back after this. piano music fresher dentures, for the best first impression. Love loud, live loud polident. Fresher dentures. For those breathless moments. Hug loud, live loud, polident. [ male announcer ] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. You pay your Car Insurance premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. 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Much more coming up next hour. Apple down 1 1 2 as you see on your screen. An illinois judge ruling that illinois can not pay state workers in full without a budget. Jeff flock joining us with more details. Push is coming to shove in illinois, cheryl as we speak. I am at star park state park. This is the most popular park in illinois. You see the beautiful wildcat falls. Take a good look at it, you might not see it for long. Without a budget as you report they cant pay state workers and may have to shut down state parks and other facilities. Government wants them to be paid. Look what republican Governor Bruce Rauner said. Legislators are guaranteed their pay this month. You should be too. The law which Legislature Passed which insures they would be paid in event after budget problem. Rest of the state workers not so much. He is willing to shut government down because he says the state needs to restructure. Take a look at the numbers on this he said, you cant tax your way out of this problem. Look at number of losses in terms of residents in the last 20 years. 1. 36 million residents lost. That is 45 billion in annual income. That means 7 billion less a year that the state gets in taxes. Democrats want increase in taxes. Governor rauner says, you cant tax your way out of this. We may have a government shut down in illinois, cheryl. You will be covering it. Jeff flock. Thank you, jeff. We had a real busy morning so far. Full two hours of Varney Company on the books. Here are the highlights. We have more varney two minutes away. First off dont be surprised if donald trump continues to lose businesses that he has a press Conference Announcing his doctor announced that he has a severe but curable disease and he must drop out of the race to take care of it. Charles is that from politics 101 . Excuse to get out of the race, is that the first one at the top . They have to worry about the wealth effect they created. One of the things that china is desperately trying to do to create a robust middle class like our own. It is not easy to do. State media literally pumping up stocks. Charles not just greece. We have our own greece. It is called puerto rico. It has major financial problems. Hillary clinton has the answer, let them to bankrupt what difference does it make . . Ously turns romantic why pause to take a pill . And why stop what youre doing to find a bathroom . With cialis for daily use, you dont have to plan around either. Its the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. 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A couple of these names have begun to turn, maybe that helps us out, were not sure whats going on. The markets all over the place. Alibaba at the top of the list hot ipo since the day it started trading. Remember, oil held all morning long but a build of inventories reported the last hour, the expert said there was going to be a drawdown same thing with gasoline now got to turn there as well. Copper, this might be the key, a great proxy for the industrial Global Economy at a six year low finding support. And finally a 10year yield yield typically goes down when demand is up slightly doesnt mean theres not a flight to safety, obviously there is. Joining us kevin kelly. Bottom line, weve already seen the market come off the lows of yesterday. In fact a 300 point reversal, one of the biggest in the last five years is this a buying opportunity . Selectively. You have to be conscientious what youre getting into. Charles come on kevin is it a buying opportunity . Conscious, selective stuff are you looking to be opportunistic and buying this dip . Were being opportunistic overseas. Charles really . If you look at the names working in europe, daimler mercedesbenz has done very well u. S. And chinese sales its the German Automobile manufactures that are producing the great results. Gm is down 20 recently fords not doing well having a hard time over there. The euro being down youre seeing a lot of german names doing well. Charles what about gm . You brought up General Motors. Its starting to gain market share fiat is taking most of the market share were under pressure a lot of people arent sure what to make of it. Are you a buyer . Absolutely not. We would be a seller of gm going back to china, right. People talking about alibaba its going to affect Consumer Confidence over there. Charles the crash in the stock market. The crash in the stock market is going to impact their consumers, but stocks are halted. They cant get money, they were borrowing on margin anyways. Gm has significant exposure over in china. This is going to impact them significantly. More than 50 of the stocks in china on the exchanges are frozen. You cant sell it you cant trade it. What happens when they reopen and how would that impact gm . Not everybody in china is in the stock market. Great question, going to impact gm thats where they were looking for growth. They werent looking for growth in the eurozone area they had to pull several brand out of europe because it wasnt doing well. Thats interesting. The real threat to the consumer who might hold gm stock in the United States isnt that gm is traded in china. Its the revenue picture. If the banks collapse because theres been this rush to sell stocks thats where you get the calamity, right . The revenue growth, absolutely. Thats where youre having a problem. Charles be opportunistic, look at europe that means you think greece will be ugly and stick with daimler. Havent gone with that in a long time. Thank you. Thank you. Charles take a listen to what harry dent said on the program right before the Start Talking about the crash in america, it might have begun. The china bubble is bursting. Weve been saying this is the biggest bubble in the world. Real estate starting to slow, real people poured into margin debt into chinese stocks, they went up 160 in one year and declining economy, the government is having to prop up the market. Charles so your reaction. We have adam shapiro emac here. Go ahead ada we know this is his big prediction for a long time, and i like his demographic work, it seems as if there is a hiccup the guys say this is a big one. Take a deep breath as emac pointed out earlier in the program, a small percentage of chinese consumers own stock. The danger is the leverage, they borrowed from banks. Look whats happening there. In the United States, if you hold stock in companies that trade with china thats where you might be in trouble. For instance, just to look at numbers, we have a graphic to explain this to you. The number one sector in may for trade was 1. 8 billion, transportation in vehicles. After that computers in electronic 1. 3 billion in may, and chemicals dow, dupont 1. 2 million. Heres stocks that might get hit, apple, apple had 30 billion in sales 2014. 16. 8 of revenue. Qualcomm, 13. 2 generated out of china. 49 of revenue. And engine 1. 57 billion if they trade with china, thats my exposure. Charles Something Like a qualcomm with over 40 thats a huge swath to what they do, what they make. I can see them getting hit before apple. Not buy a car because the markets influx, but you might buy the iphone in china. We have to be careful how we report the numbers on china and have to be clear about in context what the effect of the market downturn is going on in china. China is pulling a japan playbook with the government stepping into prop up the markets there. Charles governments have stepped in in different forms of fashion. But directly in the stock market. Charles this is a communist government that can do those kinds of things, but would like the elements of capitalism, too. The stock traded in china, less than 4 is owned by foreigners. Real danger is if you own companies that would be hit if theres an economic slowdown in china which there is. Good point. Charles bring in amerrittass partner, lenore hawkins. Put it in context down 30 , but up 70 for the year. But china being an emerging market, this should never account for a small portion of somebodys portfolio. If you look at really longterm perspective china is interesting in that its going to be a bigger part of emerging Market Indices if they get involved in the indices. Charles so you know, heres the thing, and ive made some of the points that youre making in terms of the numbers emacs made amazing points. American investors understand that these things start a certain way and it continues. If chinas market continues to break down and give up more chunks as rapidly as they are. You know one word were hearing a lot this week, emergency, emergency measures in china. Emergency measures in greece. That word scares the heck out of people when you talk about markets and economies. With china, its very difficult to know whats going on there because whatever information we do get we know is not exactly accurate. Charles so then youre okay youre all singing or whistling past the graveyard, hunkydory you are okay with everything . No im biding my time i think its a good buying opportunity. Go ahead adam. Is it a danger . You and i cant buy stock in china. Thats off the table. The problem is hong kong you get a contagion, hang seng closed down 6 . Thats the danger, is it not . Definitely. But pay attention, take your time. This is going to be a good at some point, its going to be included in the indices, and right now, it is the most underrepresented of i think basically any index in the world. Hardly anybody owns china and its becoming one of the largest economies in the world. Charles they had the msci, they were going to include them they made the pitch they were turned down and giving a wink and a nod, next time around well have some of the stocks in there. Go ahead. In october, weve got the vote whether or not china is included into the strategic drawing rights packet. Charles i think they will. I really do. The brits have their own rescue packages building a brandnew silk road there are a lot of reasons china wants to keep this up. Does this equate to greater risk. Im going to quote obiwan kenobi. Be cautious as obiwan says. Charles let the force be with you we appreciate a calm voice coming on especially one as accomplished as you. Thanks a lot. Talk to you soon. Thanks charles. We have big news talking about apples exposure in china. Just now bing reported by the wall street journal, the company has asked suppliers to make between 85 and 90 million new iphones by december 31st. Thats crazy. That would be a record for the company. We have larry on the phone with us. Larry when it comes to the iphone thing, its a global phenomena and nothing looks like it can stop it. You got it, charles, it is a phenomenon nothing can stop it and continues to grow. Every time a new phone comes out we wonder will there be cannibalization on apples side and there never is it continues to go bigger and brighter. The phone is going to be slimmer, faster, smarter people are going to buy it. The big, big market we call the fablet mark the 5. 5 people think it will be great in the beginning. That continues to drive. Thats the key, and were talking about the growth in china. Its the fablet and the screen size as well. Charles youre talking you use the word cannibalization and now talking about the fablet, the tablets are the Collateral Damage i dont think they necessarily mind. That microsoft laying off up to 8,000 workers in the phone division. Clearly apple is the world leader, they won this war, why doesnt the stock move higher . You talking about apples stock right . Charles yeah. I believe apple stock will move higher. Right now everything is in a flux, and what happens is when they come out with a new product i believe it will move higher. Talking about microsoft and nokia, thats really an emerging market side, and theyre always going to get the emerging market side. The big thing with the tablets, what people dont realize is youre not going to pick up a tablet and make a phone call, that big device a fablet you pick it up use it as a tablet and make the caught. People are using both i believe the tablet numbers could be better and i think we will see it as things progress and maybe microsoft gets hurt on the surface side. Charles very few companies have ever been on a roll like apple is right now. Thanks a lot, larry. Another gop candidate, believe it or not ready to enter the race. Scott walker plans to announce. Why isnt he running on what everyone else is worried about . Talking about the economy, stupid. Well be right back. People with type 2 diabetes come from all walks of life. If you have high blood sugar ask your doctor about farxiga. Its a different kind of medicine that works by removing some sugar from your body. Along with diet and exercise farxiga helps lower blood sugar in adults with type 2 diabetes. With one pill a day, farxiga helps lower your a1c. And, although its not a weightloss or bloodpressure drug farxiga may help you lose weight and may even lower Blood Pressure when used with certain diabetes medicines. 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We were down 210 point, all of a sun reversed to being down 120 points. Sort of like yesterday. People want to buy the dip, a lot of them obviously made moves and couldnt seduce others off the sidelines. This is going to go all day long. Stick with us all session long. Look at shake shack the stock hammered yesterday, Morgan Stanley cutting rating they call the stock an underweight. A lot of focus abroad talk china, we talked greece, we got a problem at home its called puerto rico. The puerto rican delegation to congress is blaming the u. S. Mainland for their crisis. Adam, hillary has gotten into the game saying parts of municipalities should be allowed to file for chapter 9. Give them relief, why not. What would the real ramifications be . You can get the municipalities have chapter 9. Because to import anything into puerto rico it has to come on a ship, built in the United States, flagged by the United States, you know so that drives up the price of milk. Hillary clinton and jeb bush saying yes puerto rico should go bankrupt. They do not take into account the hit it will be, it will deliver to the viewers out there in their muni bond funds. Oppenheimer and franklin have the greatest exposure. Have you those funds. Charles we have to assume a lot of retirees saying aaa, bonds in their 50s making pretty good money and here 60 years old you buy aaa tax free bond, what could go wrong . The Federal Reserve drove down rates and the puerto rico bonds are weak. Charles heres what i would say as a counter. Puerto rico grew 56 of its own food the United States introduced transfer payments, right . Food stamps, housing assistance. I think the dynamics of the island changed. Things are unfair with respect to trade. Dynamics of the island. My wife is puerto rican her fathers hometown no one would go there unless you have an uzi. You made the case why the u. S. Government policies and laws have contributed to the nightmare. Charles leave it there. Big news scott walker we know hes number one in the polls recently. Now its rumored hes going to make it official. His bid for the white house should come next week and largely running on social issues like antisamesex marriage stance which is interesting. Currently one in five americans, this is a big deal what a lot of other people talk about, the economy. One in five americans, 52 million collecting welfare and other goodies. We have a large part of america that is already in greece why isnt he focusing on the economy. I dont understand this i understand everyone is trying find their niche, and donald trump found his with immigration isnt it a mistake for the gop to get involved in gay marriage and confederate flags when everyone cares about the economy . Hey, charles. I think theyre chasing news cycles a little bit. You have to respond to events as they unfold. If you go to scott walker and look at protocampaign hes running and the hype video they released in advance of next weeks announcement. This is a campaign of scott walkers that is absolutely focused on the economy, absolutely focused on reforming the size and scope of government with progrowth policies. So yes hes issuing statements and putting out press releases on a couple ancillary issues if you want to call them that. Charles but guy youre saying theyre ancillary, i happen to be a huge scott walker fan. What hes done against embedded Union Opposition is remarkable. Why respond to it. Are you going to respond to everything in the news cycle and set yourself up perhaps to lose not on the fundamentals of this country but on ancillary items that you talk about . I think if youre a president ial candidator president ial candidate in waiting and the Supreme Court comes down with a National Constitutional right to samesex marriage sitting on the sidelines and saying absolutely nothing isnt an option. The press is obsessed with social issues and the hotbutton issues theyre going to ask you about it relentlessly until you say something, i dont particularly agree with what he had to say on the issue but if you look at ive seen a few of his speeches on the stump, hes unofficially a candidate. On the stump hes giving a speech that is very, very heavy on economics reforms and a little bit on National Security. The social issues are on the back burner for scott walker and i expect that as he rolls out his campaign and his narrative, its going to be a very heavy emphasis what he did in wisconsin, which is all about the economy. Charles i hope so. I think its a winner forum and as far as the Mainstream Media being obsessed with these things, theyre obsessed with making republicans lose or helping them lose. Guy benson, thanks a lot. Thanks charles. A hot summer for the gun industry. Huge spike in sales last month experts say the spike is because of recent massive shootings. Well be right back. This is a great place to work. Not because they have yoga meetings and a juice bar. Because theyre getting comcast business internet. Comcast business offers convenient installation appointments that work around your schedule. And it takes done. About an hour. Get reliable internet thats up to five times faster than dsl from the phone company. Call 8005016000 to switch today. Perks are nice. But the best thing you can give your business is comcast business. Comcast business. Built for business. Charles all right, guys that little spike that we had is fading quickly. No one took the bait, some buy program kicked in now back down which probably means we test the lows down 194. Check out shares of alcoa, down about 4 . Thats ahead of the days earnings. Remember alcoa typically kicks off earning season that begins tonight after the bell. Alcoa up first. Gun sales up big this summer. Background checks spiked 11 in june as compared to a year ago that makes it the busiest june ever according to the fbi. Liz and adam whats going on . Women, firsttime gun buyers are pouring in. The highest performance since the fbi began tracking the data in 1999. Seattle city council is considering a new tax on guns and on ammo. So when you see gun sales going up youre going to see the cities across the country looking at it for possible revenue. Charles also to deter. The Obama Administration talking about leveeing heavy fees on ammo to the point where people cant buy bullets. Millions of americans who safely use firearms every day. There are a few americans who do heinous and awful things with the weapons, and i dont think youre ever going to get in our country a movement to disarm people. So people want their guns. Charles they do they do. Theyre clinging bitterly to them. If you own the stocks. Who are you quoting there . The president. Charles next week, history will be madsa the first federally approved drone delivery takes place in the United States a nasa aircraft will carry medical prescriptions to a rural Field Hospital in virginia. We are dragging behind the rest of the world. Not in the technology but deploying the technology . The company that made the drone flirtey is privately owned theyre calls it a kitty hawk moment for the industry. Its good pr to deliver medical supplies to the dressed areas in West Virginia who have been hammered hard by the crackdown on fossil fuels. Quick before we go from that to amazon delivering books a book i ordered in the commercial break. How long until we no longer need pilots at united or delta or american. Charles talk about people bitterly clinging onto something. I want a pilot, i dont care how good the pilot is. Remember weve been off all day, drifted back off the lose of the session dow off 192 points. Up next Charlie Gasparino is going to talk about who the real losers are in the china stock market selloff. And much more on apple they want to make up to 90 million iphones by the end of this year. Are you moving forward fast enough . Everywhere you look, it strategy is now business strategy. And a partnership with hp can help you accelerate down a path created by people, technology and ideas. To move your company from what it is now. To what it needs to become. New york state is reinventing how we do business by leading the way on tax cuts. We cut the rates on personal income taxes. We enacted the lowest Corporate Tax rate since 1968. We eliminated the income tax on manufacturers altogether. With startupny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. All to grow our economy and create jobs. See how new york can give your business the opportunity to grow at ny. Gov business usaa makes me feel like im a car buying expert in no time at all. There was no stress. It was in and out. If i buy a car through usaa, i know im getting a fair price. We realized, okay, this not only could be convenient we could save a lot of money. I was like, wow, if i could save this much, then i could actually maybe upgrade a little bit. And it was just easy. Usaa, they just really make sure that youre well taken care of. Usaa car buying service. Powered by truecar. Online and on the usaa app. Charles back to the americans despite one major market at the top 188 points right now. The price of oil holding out until the important Weekly Oil Inventory were ported now. Bills rather than drawdowns, hence the market itself going down. Want to get back to china the big thing with inner market today. Charlie, we have to discuss have to discuss a earlier he went away and make phone calls at night you have to tell us who the losers are. Business from major u. S. Investors, wall street executives. I dont think a Major Hedge Fund will implode here. Maybe theyll take some hits. I dont think the u. S. Government takes a big hit. The chinese are the biggest creditors. Not so anymore. Charles they still have over a trillion. We buy more of their debt and vice versa. They are not going to hurt their own position. They are not as important in that regard anymore. Where this gets tricky and china standing as the Global Economic power and whether the system with the command and control from the communist party half s. Half commies. That is what they are losing right now. Their global prestige. Charles this one hiccup in the market still up 70 that they lost all the work theyve made to bring higher. You think theyre losing. The currency is a lot higher than it was. They develop their own thing to rival the oms. They may be included in a basket of security that takes them a step closer as the worlds reserve currency. Charles, theres never been an economy that went straight up. The correction there is different. We talked about cap accounting. At least our companies have cap accounting. The Chinese Companies what is the account in the chinese banks . We dont know. When the fear and loathing spreads, watch out. It collapses every 15 to 20 years. 2011 talks about these issues. It is how much that they borrowed and the leverage. Just a few moments ago treasury secretary jack lu spoke about the stock market. Lets listen to what he had to say. I will say chinas markets are still pretty much separated in world markets. There are missing moving towards being more integrated for right now they are not. I dont think you see the direct linkage there. This is exactly what youre saying. Where do we get hit . Chinas growth gets cut back. They start growing a 3 . Do they buy our goods as much . That is where you see the economic impact. As far as countries to which we export they are at number three. Is the potential economic hit for economy. In terms of contagion i dont think it is. This is going to slow down chinas rest to become globally dominate in the economy and using the economic matrix and militarily. Charles theyve done an amazing job of that. Theyve taken over large parts of africa how can they ballot race . The money they use to baghdad and other countries they now have to shore up their own banks. Charles like i said, i dont know that we should be dancing on chinas craze. Chinas craze. Are having a parade so maybe we can stand for u. S. Capitalism. Charles we want to check out the shares of General Motors. He is selling them in large part because of the exposure of the country. Hanging out all the billionaires at the annual allen co. Conference. He spoke of General Motors ceo. What does she have to say . Gms a huge exposure to china. Expecting a growth of 67 . He planned to invest 14 billion in the next year in the chinese market. How concerned are she about what is happening and this is where she had to say. At the very market. We are building chevrolet, building cadillac. Even with Market Dynamics changing, we are wellpositioned and will it continue to focus because its an important market. The import market has fielded 1 million vehicles in sales as of april. Charles stay right there. There. This guy breaking his way to go straight to the floor of the new york Stock Exchange. Nicole. Charles a moment ago all the stocks on the new york Stock Exchange were halted. Over 3000 on the floor of the exchange. In the meantime you can see the posts behind me. The traders mulling about as they keep going to the ramp to get the latest. On the top of the trading post there is a banner across the top. These are individual brokers. You see the banners that go across the top and that yellow banner across the top came up in the entire trading went wild when everything is halted. Earlier today at the opening bell we had a conductivity issue over 220 stocks they said they were open right on time. It took them a moment to get those names in. At this point now i will bring you over here. Come on over. You can see more traders here are all lined up. This is the ramp. This is where you have traders waiting to get the latest. We are talking over 3000 stocks to trade on the new york Stock Exchange that are still halted at this time. I havent heard from the nyse. They always do a good job keeping us abreast of things. At this point the nyse is at a standstill. Charles thank you nicole. The point that she made an appoint you are talking about is the stocks are still trading. What is the nyse . Nicole correct me if im wrong and shes listening. A small group of floor traders who make market and a Computer System that makes 80 of the markets. A group of floor traders say from time to time when they come to the rescue that is true. Because theres a computer thats operational, all the stuff going to the small group is now being treated away at a Different Exchange because they are still making prices. And through archipelago. By the way, this is nothing. What he is sane and simple numbers, the other day at 4. 5 billion shares traded through the floor. Most of it done. Not as important as it used to be. Floor is an anachronism almost. It can be a backup plan. Even if the floor just hit the new york Stock Exchange up. They still may prices. Its not like the Pricing System went down. If that have to need to trade away from the new york Stock Exchange. This is a much more sophisticated then. Most of the guys on the floor dont trade a specialist. They trade is brokers, private investors. I guess another sidebar as we start the day with computer glitches that grounding entire fleet of airlines. We have computer glitches that sort of royalty new york Stock Exchange is not the markets. A lot of people are comfortable with the idea that maybe theres ultimately some human being that might step up in case the machines turn on us or fail us. I guess yes. For better or worse rare with computers. If you couldnt use your email computers from the system. The floor is an anachronism right now. Unless im missing something, what is the volume like at the new york Stock Exchange . The market is down right now not because floor traders dont have access to the system. The market is down right now because of headline worries that of china and all the stuff are talkingabout. How big is the volume . Trained to be traded in a onepoint range since the cole broke the news. Price disruptions about the new york Stock Exchange. Start getting crazy weird. Charles im a word about the manipulation of High Frequency trading. Fortier the 2 of all the trading is exploratory. With the market is structured right now, before the new york Stock Exchange is not a stopgap by highfrequency traders. Lets go back to the floor of the new york Stock Exchange. I dont know how much youve heard that a lot of people want to understand how the market works. They used to depend on the guys surrounding you right now is there ultimate backstop. Do they play an Important Role . They are relevant. They play an Important Role. Today is a highly unusual day. I have been down here since 1995. I have never ever ever seen all stocks on the new york Stock Exchange halted in this manner in the middle of the day. They have been a glitch of some sort but still a slew of traders on the ramp. You are 100 right. All the stocks can now trade away. If you think the customers will send their orders here the rest of the day i highly doubt it. Once they start routing them away [inaudible] i dont know. We are getting quite close. Said they are trading. I dont know. If you are getting close i guess its trading. That would be the one question i have. I think they are. Like i said this is 10 right now. I dont disagree. I know this doesnt have the big market share and everybody trades away on a day like this. Mostly looking at the new york composite index is a compilation of the stocks right here on the floor of the new york Stock Exchange. There are so many people on that ramp piled up, trying to figure out what is going on. Weve had so many glitches from the opening bell to United Airlines. The technical issue to blame for trading and other venues. If you are the average investor unlike what happened at the nasdaq where really nasdaq stocks if youre an average investor it is nothing. What is more important is when they had a glitch in march and a blood of atf couldnt trade and people were overpaying for ats. They make up 30 . Do you think this gives them more confidence or less confidence . It should give them more confidence. It is working. I would be worried about people want to know about food on a trade that will be executed. Yes yes. Nicole should go right to the new york Stock Exchange. Luscious double check. Trade him all our stocks which is the called the bluechip names. We have tried to pull up close and they are all coming up. There is a public consolidated data fee. Charles nepal we want to come back to you. Help us understand how the average person cap at a trade into the stocks moving up and down and get those guys down there have a tough time. What is the exact problem. Sorry and doubled to doing this. The answer is yes. Have a confirmation for you. I also have statement from the nyse communications and here it is. We are currently experiencing an issue that we are working to resolve this quickly as possible. We will be providing further updates and terrain are up most to communicate thoroughly and transparently and ensure timely and orderly market reopening. For the average guy. What does the new york Stock Exchange do. You want to play stock, it gets matched on one of the exchanges. Two ways of doing it. Through the guys that can operate because of a glitch or through the computer which is 90 of what goes on. A computer is still working. That is why the average investor its interesting the Stock Exchanges down for your trade still get matched. I agree it is to a certain next time a small part. The bigger ratio is how does this happening. How do you have all of these people here . How do you have thousands of stocks of the new york Stock Exchange . They are not halted. I know you are real close to the guys down there and there has been a lot of talk about them being obsolete for a long time. The fact everyone watching is still getting trades through the market and still trading. I would be concerned if i were them. Obviously times the Computer System to tom and they come to the rescue. This is the opposite. This one looks like they are doing their best to get it back open. Charles i have fond memories. I wrote a book about it and cant forget i dont want computers taken over my job. I hate to say at the embodiment of how Technology Helps the market. Charles it is called creative destruction. It is tough on a down day to have this happen. Nicole, since you broke this news the dow was up 175 minutes completely flat since then. I know winners will trading away from there but i find it interesting to market moving up and down has been relatively flat. What is that speetwo . You make a great point because ive been watching the market over the last 20 minutes from 175 to 193 but scenario range to the down side. Wheres the reaction . First of all half of these guys will be at the bar in 15 minutes. They are not going to be at the bar. Wait a minute. The nasdaq is still trading. So thats another backstop. So are all of the other exchanges. I still find it mystifying what the market has been a change. We keep talking about the fact that this is done. We have moved completely sideways. The market down 120 200 will be completely flat after a roller coaster. What is odd is you can make lemons out of lemonade. Theres a story. We are having fun with Charlie Gasparino. In five minutes they are all going to run. Nicole go ahead. I want to make an important point. They battle it out to the ipos. The ipo there in the nasdaq. The nyse each day the two exchanges battle it out. They can have the most orderly opening. This is like a pr nightmare. This is the black qaeda have all these traders standing around waiting as trading is suspended here. You have trading and the other venues happening smoothly. Charlie keeps pointing out they talk about when theyre going to be there. The moment they are no longer they are doesnt mean done. You guys were in the dark and everybody elses trading. They are all wondering how much longer. Someone has to explain why we are moving sideways. Youve been saying this all morning. We were moving a 10point clips pc. This is really odd to me. Them might be something more. We dont necessarily know what is going on. This market has moved sideways since this is happening. I dont know if somebody pushed the path or what but its weird. They think i want to jump back in because his people meltdown in europe and asia to have a choice. U. S. Treasuries or equities in the United States. Charles you think this market will react one way or the other. Maybe that is why it is not moving. I just use simple logic here. If only 10 of the new york Stock Exchange or 20 trade on the new york Stock Exchange to begin with most of them trade elsewhere. Only a portion of that trades to specialists. There are areas that they trade out. Theres a lot of small. If youre ever down there, you will see theres two times where people trade a lot. At the close in at the open. Not now. Its pretty interesting. Charles what i am saying is these dark pools would talk about, when it comes to liquidity you can execute orders, but are they known for having the robust liquidity that can handle if something went wrong right now, by the way we just had a big move to the downside. It feels like a dam just opened up. Trading is halted here but i dont know if that is related. Simple logic is the new york Stock Exchange despite the headline we are running is not down. You can trade the new york Stock Exchange. The guys with their coats on the floor and the Computer System. I think you raise a bigger question. Why did we just dropped roughly 45 points. I feel like there is pentup sale and an somewhat open. I am worried about the ability to handle a major amount of volume. The individual ones you know what i mean. I dont think the market is trading because of this. By the way, lets just say the pentup charles hold on a second. Weve got something. But nasdaq declares self help against new york Stock Exchange. Reporter i dont see that but i will say what does that mean exactly. We know the nasdaq continues on. We are using the word disbanded, by the way. They see a market trading is temporarily suspended. I think that means the nasdaq because of the new Market Structure you could trade anyway. Or the other way around. Think about nasdaq. Lets be clear. Nasdaq wants you to think the new york Stock Exchange. Reporter all open orders will be canceled. They have to backtrack a little bit. Nyse says all open orders will be canceled. Still have a slew of traitors behind me. Those orders go through the computer aspects as well as the specialists are just that the specialists are handling. Reporter they werent even able to i didnt answer the question because i dont know the exact answer. I would think its all open orders. Every order routed into the building in any way shape or form would be my best guess. Charles i think this does add to confusion and anxiety. A couple years ago we had within the system has spooked people bigtime. Remember the crash and i think this might be some extra pressure. I got a feeling a lot of orders to your point are being rebuilt and put back in the system. It feels like this ticket is caught. Every now and then we go further to the downside and wonder what is going to happen when we get the all clear. The initial kneejerk reaction would be more panic and more selling is the first thing to do. Reporter no doubt at all. People should be getting nervous about whats going on with Computer Systems. We also had a story about United Airlines. I dont know. Is there any correlation . Probably not. These things make investors nervous. They try to believe in the markets. The big picture is so far things are handled smoothly. A lot of the noise i heard this morning was right when it happened and everybody went low. Since then very orderly. Charles is it too early then maybe you can ask around later on . We talked about this. The biggest thing is cybersecurity, cyberwarfare, hacking. Any officials from the exchange talked about baghdad . So many ceos when you interview them, that is a huge fear. I am all for sensationalism. I just worry we are making way too much of this. If the new york Stock Exchange wasnt essentially a tv set which is what it is a backdrop if it was in a backdrop, we wouldnt care. Id just like to know the amount of volume being halted and how many stocks have to be reprised. Charles covering this makes it worse. We should cover it. We should just put them in context is got a lot of dual listing from the nyse stocks that include that Companies Like hewlettpackard, schwab cadence, walgreens. Those stocks trade on nasdaq. We talk about backup plans has another one. We had one big rally attempt where we got almost 100 points out the worst price of the session. Now we are starting to break that a little bit. Not a sense of panic. But the pressures to the downside. I dont think people realize 90 of the stocks are traded away from those five guys. Alternately you say this is a victory for the system itself and people should feel confident in our market. [laughter] drinks now. Technical glitches like when the nasdaq went down you couldnt get pricing. Lets talk about what happened. You cant really trade that way. The flash pressure is around us. This is technology. I believe working pretty good. The lows of the session. I know the news perhaps. U. S. But we have to find out. How many stocks got affected . How many orders how much of the volume and not at the bar. But, you know right. And the point to be made, the Intercontinental Exchange itself owns 11 other exchanges besides the nyse so theres a lot of trading going on off the floor of the nyse. Oh yeah. The new york Stock Exchange is open its been trade, you know . What am i missing . If the atm across the street goes down, theres another atm you can go to. So were not greece, is what youre saying. [laughter] charles the folks on the floor thats a big story. You know a lot of these guys personally. These guys are still making money. Charles im sorry, say that again . All right, guys, heres the thing. We talked about disruptive technology. How do we replace Charlie Gasparino . Theres no such thing [laughter] that one computer chip element need to get that i am the missing link. [laughter] you are destructive technology. [laughter] charles for the audience, there is major news and that is the chinese stock market is under a tremendous amount of pressure, it has been getting hammered all night long. Halted trading, we also want to reiterate the situation in greece, theres going to be a major gathering this time of all the e. U. Members, not just the countries that share the currency, not 19 but 29 28, rather, have to try to hash this out. Those are your two big stories. We had computer glitches United Airlines was halted for a while, major computer glitches at the new york Stock Exchange. Its a big, bigtime news day. Stock market off at the lows of the session, down 214, well, the lows are 230, but lets face it we had one rally attempt thats failed, but this markets going to continue to be all over the place. Keep it right here. On that note, well give it to you, neil cavuto. Neil charles payne, thank you very much. For those just tuning in, we have a problem on the floor of the new york Stock Exchange. It is very difficult to get at least computerized trades through. That has effectively topped all major stopped all Major Trading on the floor. The nasdaq, for example, was quick to remind folks that trading is being carried on in new york Stock Exchangerelated issues, but if this is seeming very flash crashy to you like the incident a couple years back, youre not alone. And it occurs on a day we had a massive selloff going on following chinas big hit, about a 6 hit. That market down close to 30 plus percent from its highs reached three weeks ago. Also that market had some technical issues just trying to implement government restrictions on trading a third of all shares there were suspended for trading