Extraordinary development. The former new york fed president says the Federal Reserve should not quote, bail out an administration that keeps making bad choices on trade policy. Hes gone political. Dont lower rates to help trumps reelection . An antitrump guy urging the fed to work against President Trump . You got to sthak yohake your he that one. Unfortunately, thats what most financial people are saying today. Hes wrong. Now the market. Even with a sharp yield curve inversion, stocks show a small loss. Down 40 points. Remember two weeks ago, when the inversion appeared, the dow dropped 8800 points in one day. Now the market shrugs. The dow is going to be off 40, s p maybe four, nasdaq down 17. Marginal fractional losses. Weve got a lot more for you. Boris asks the queen to suspend parliament. And a new poll, how is joe biden doing now . Varney company is about to begin. Stuart all right. Here are the latest results from the quinnipiac latest poll. The democrat field, biden 32 . Warren, 19 , sanders 15 , harris 7 . This is nothing like the monmouth poll of a few days ago, where biden had clearly lost his lead. Now heres where it gets interesting. In a headtohead matchup with President Trump, all four democrats beat him, 16point lead for biden, 14 for sanders, 12 for warren and 11point lead for kamala harris. Brad blakeman, former Deputy Assistant to george w. Bush, is with us now. All of these candidates beating President Trump. Whats he doing wrong . He isnt doing anything wrong. What you have here is you have a wide field of Democratic Candidates who are beating him up every day, projecting this false narrative which the media is championing and that is we are due for recession which is untrue, if you take a look at the macro indicators of the economy. So President Trump has not had his day in court yet. They are fighting it out, the democrats, in order to get the nomination. I say National Polls have very little to do with the ultimate decision in a federal election. Stuart youve got to be disappointed that the monmouth poll of a couple of days ago showed biden has lost his lead, and this new one from quinnipiac says hes got it back. That shows you how fickle the polls are. National polls in a state by state event which are primaries and caucuses mean relatively nothing. Its good for fundraising because you can show your fundraisers if polls are favorable to you. Otherwise, National Polls are very unreliable as we have seen in the fickleness of joe bidens down one day and ahead the next. Stuart we have given everyone the news. You had your opinion there. Stay there, because i have more for you later. Look at that recession signal. Thats the inverted yield curve. The twoyear yield is indeed higher than the tenyear yield. Should not be that way, but thats the way it is right now. A widespread on this inversion. Market watcher george see is with us. The market doesnt seem to care much about this inverted yield curve now. Two weeks ago we dropped 800 points. Whats going on . Weve still got a lot of really strong economic data, and i think the markets already shrugged and said yes, we are going to soften, we are going to weaken but it doesnt really know how much. It doesnt really know how to price in how much softness we are going to get and its not going to stay inverted very long. The fed will cut very soon. Might even cut 50 basis points. Its a temporary phenomenon. Stuart i think the market is screaming at the Federal Reserve hey, lower rates now, get on with it. You think theyll do it . 50 basis points real soon . You think its going to happen . I think they will do 25. I think theres some hawks on the decisionmaking body at the fed that will resist 50 but i think they should do 50 and i think the markets telling them thats what they should do. I would be surprised if they go that far. They still think the economy is pretty strong. Stuart i think the market would really take off if we got any kind of trade deal with china. But you dont think we are going to get that kind of deal, do you . I dont. I think the chinese are rooted in and they are going to try to outlast the president and hope he loses and get a much softer deal from the democrats when he does. I think thats their hope. They may wake up to a nightmare. He may win reelection and hammer down on them even further. I salute what hes doing. I think its courageous what hes doing. Stuart we arent going to get much of a market rally, are we, if we dont get some kind of deal with china before the election . Im not sure we are going to get a huge selloff either, because there just arent any alternatives for investors. They will buy a tenyear for 1. 45 for ten years . I dont see investors doing that. I think we are kind of stuck right now. If we do get a trade deal, you are hinting at whats exactly right. The market will explode to the upside. That would be a burst of great news. But im not expecting that. Stuart okay. George, thanks for joining us. We appreciate it. See you again soon. Now, back to what i referred to at the top of the hour here. Former new york fed president bill dudley got totally political. He says the fed should not cut rates because that would help President Trump get reelected. Brad blakeman still with us. Im astonished at this. Thats blatant politics. Wait a second. I have to ask the obvious question. Whats the difference between him saying dont cut rates because it might hurt trump, thats political, and President Trump saying hey, jay powell, you are the enemy . Whats the difference . Heres the difference. President trumps political. He got to office and elected by the people. The fed is appointed. And confirmed by the senate. Their job is not to be political and to not weigh in, especially in a political cycle, as important as this one. A president ial selection process. So i think its totally inappropriate. Hes trying to come to the aid of his buddies but the president has every right to be critical of the fed because of who and what he is. Stuart bill dudley actually said trumps reelection arguably presents a threat to the u. S. And global economy. So youve got to stop him. Thats extraordinary. It is extraordinary, but this shows you how crazy politics has become when people who are supposed to be apolitical suddenly take on a different role. Its actually, in my opinion, very dangerous. As far as the markets are concerned. Stuart i agree. Thank you very much. Appreciate it. Now, big news on the opioid maker Purdue Pharma and its owners. They are offering to settle thousands of lawsuits against pharma not pharma, against purdue. Tell me, spell out the terms of this settlement. Ashley listen, the family are going to pay anywhere from purdue, they will pay 3 billion out of their own pocket. The total will be between 10 billion and 12 billion to settle. They would also create a public Beneficiary Trust of which the proceeds would go to victims states and counties who have been battling this opioid nightmare essentially. This is interesting because we just had the big Johnson Johnson verdict, over 500 million. The company that makes oxycontin, purdue, has tried to get out ahead of this. There are thousands of lawsuits from states and local municipalities so this is one way they are trying to come to some sort of agreement. Its a very drastic move to say the very least. Stuart i would have thought the other pharmas like teva, i would have thought they would be down some more. Big drop yesterday for some of them. I thought they would have been down some more today on news of this huge ashley the oklahoma case settled, as have some others. They are willing to pay but not to the extent that pharma, Purdue Pharma has done which is quite remarkable. 10 billion to 12 billion. Stuart it is. All right. Now, tiffany, look at that stock, please. Fewer tourists spending less money but they made more money but nonetheless, tiffany is now down nearly four bucks, 4. 7 . Quite a loss for tiffany. Better sales at lingerie brand. The lingerie brand is doing well, up 1. 5 . Day. Peloton filed for an ipo. Lauren simonetti has details. They are losing a ton of money. Lauren unprofitable. Lost about 200 million last year. But they are growing their revenue at 100 annually so in my opinion this goes into the zoom category, not the uber category, because they have the market. They have a high income consumer who is spending at least 2200 on a bike, 4200 on a treadmill, then because its athome fitness, streaming, they are spending 40 a month on the fitness classes. Thats a lot of money going to peloton and theyre not canceling subscriptions. Their churn rate is very very low. Stuart for a successful ipo and looking to the future, theyve got 1. 4 million subscribers or members, whatever you want to call it, now. They have to really increase that a lot to become profitable and make it a successful ipo. Can they do it . Lauren they have started to do it. They have another subscription program, about half the price, 19 a month, that you dont need the bike. You can just subscribe to the classes and take whatever you through that program. They are trying to reach out to everybody here. Stuart we dont know when this ipo is coming down the pike. Lauren sometime in 2019. They are looking to raise 500 million. That likely will go up. Stuart 500 million sometime this year. We shall see. Lauren the valuation, 4 billion. Stuart yeah. Okay. 4 billion. Lauren a lot of money. Stuart home bike. Okay. Im not in that market. Lauren its an everything sort of company. Media, technology, fitness, streaming, music. Stuart okay. I have seen all the ads. Its not quite me. Lauren for the record, i dont have one, nor will i ever buy one but i think its a clever idea. Stuart check futures. We have narrowed the loss almost completely, down 19 points. Even though weve still got this drastic inversion. My, how times change. Lets talk about that Tropical Storm dorian, barreling toward puerto rico. The Trump Administration is under fire for diverting millions of dollars in Hurricane Relief funds to the border. The optics, not good on that one. Well cover it for you. New photos show north korea may be building a submarine capable of launching a nuclear missile. Well have that for you. Pandemonium in china. Costcos first store there so popular, it had to be shut down, overcrowded. We will bring you that story and the video, too. Back in a moment. vo the ant mindlessly marches on. Carrying up to 50 times its body weight. It never questions the tasks at hand. But this year, theres a more thrilling path to follow. father kids. Change of plans vo defy the laws of human nature. At the summer of audi sales event get exceptional offers now they feel like they have to drink a lot of water. Patients that i see that complain about dry mouth, medications seem to be the number one cause for dry mouth. Dry mouth can cause increased cavities, bad breath, oral irritation. I like to recommend biotene. Biotene has a full array of products that replenishes the moisture in your mouth. Biotene definitely works. It makes patients so much happier. Stuart constitutional alert. Britains Prime MinisterBoris Johnson will suspend parliament. Now, without getting into the weeds, ash, this makes a Nodeal Brexit more likely. Ashley right. Because what happens is parliament is suspended from september 9th to october 14th, while it signals the end of one parliamentary session and begins another. Dont forget, the uk is supposed to be out on october 31st so thats 17 days that Parliament Comes back. That gives mps a chance to do something. The opposition are in outrage saying this is a constitutional blah, blah, blah, blah, but the chances of a Nodeal Brexit now go up significantly. I do think you are going to have a call for a noconfidence in the government. Thats the only thing left for the opposition party. Its going to get very messy between now and then. Stuart britain with no written constitution, the queen can do this. Ashley the queen can do this. Boris johnson will say to the queen your majesty, we want to suspend parliament, you will reopen it with your speech which is tradition on october 14th, and shes obliged to say okay. Stuart our american colleagues and friends will ask whats going on. No britain constitution sometimes works. Lets get to china. Look at this. That was costcos first store, opened just the other day and closed early because of the crowds that you are watching right now. I want to bring in retail watch er, who says costco nailed it. Go ahead. What are they put that video up again. Its astonishing. What are they doing so right . They tapped into what we all love here. A rising middle class that loves a good bargain. The membership card gives them the feeling of exclusiveity, that they are a member of this special club and are offering all the food and items they want and need in bulk. Their Value Proposition taps right into the chinese middle class consumer. Stuart no hostility to an obvious american brand in the middle of a fight between america and china . No, absolutely not. In fact, costco has been in the market since 2015 and part of what theyve done right is they started on single day, the big alibaba sales day in 2015 and they experimented and did something incredible. They sold 7,000 tons of u. S. Grown cherries in 24 hours. Stuart was that their only product . It was their only product that day. Stuart one product. 7,000 tons. Stuart sold 7,000 tons. Right. Stuart what was the next step . The next step was in 2017, they engaged alibaba on a larger level and opened a crossborder store to send u. S. Products to china, then they opened a Flagship Store so they have been laying the groundwork of their new retail strategy in china for the better part of five years, going first online, then to offline, now integrating the two. Theres builtup demand and the opposite of hostility, chinese consumers love american products. They cant get enough of them. Stuart im showing costco on the screen now premarket, up a buck and a half. Im not following the stock closely but i take it its done very well recently . Yeah. Costco has been one of my favorit favorites. They are on a growth trajectory that i see at least for five years coming. Their Global Expansion into china, spain, other markets is going well and they have just got the formula right. Stuart you nailed it again. Thanks very much for joining us. We appreciate it. Good stuff. Now lets look again at futures. A narrow loss at the opening bell, despite as i keep saying, a very wide inverted yield curve. Illinois instituting new requirements for corporate boards. Forcing them to disclose their diversity efforts. Interesting. Elon musks spacex getting one step closer to sending humans to mars. Its latest rocket prototype hits new heights. There it is. Well be back after this. Theres a company thats talked to even more real people than me jd power. 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for Auto Insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Stuart Tropical Storm dorian is gaining strength. Its in the caribbean heading for puerto rico. It makes landfall today, probably. Landslides, flooding, power outages, you name it, likely and possible. President trump declared a state of emergency last night. Hes ordered federal assistance for local authorities. The storm could hit then florida this weekend and it would be by then a category 2 hurricane. The white house is diverting millions set aside for general Disaster Relief to border facilities. The optics dont look good. Ashley talking about 271 million. As you can imagine, outrage on the democrats side. Lets have this statement from nancy pelosi, who says quote, stealing from appropriated funds is always unacceptable but to pick the pockets of Disaster Relief funding in order to fund an appalling inhumane family incarceration plan is staggering and to do so on the eve of Hurricane Season is stunningly reckless. Now, that money by the way would provide 6,800 additional beds for immigrant detainees. The president and the administration believes they can divert this funding to relieve the conditions on the border. Stuart where is the need greatest . The president thinks its on the border as opposed to an impending problem in puerto rico. Got it. Chicago wants to know what are big corporations doing about diversity. Now, i believe theyve got this is illinois in general, right . Ashley correct. Its the companies, their headquarters are based in illinois. This would begin in 2021. They want to have an annual report that each Company Provides gender, racial and Ethnic Diversity on the corporate boards. They will also, the university of illinois will use data to establish a Rating System on these companies in an effort to boost diversity. In other words, you could be shaming companies saying you on