tv Varney Company FOX Business December 1, 2014 11:00am-1:01pm EST
prices. a very, very tough six months. 67..46%. that is the opening bell today. thank you for being here. >> i am david asman. in for stuart. here is the big story. our friends, the saudis, they only wish us well. that is what they claim. they want to give our economy a boost. they only have our interests at heart, or do they. domestic fracking stocks limp out of the wreckage. varney and company is about to begin. ♪
>> check the big board right now. the dow is off from its lows from earlier. voting down the gold standard over the weekend. oil is still near a four-year low. touching 63 earlier. there is a bounce in oil today. gas still dropping about a penny per day. $2.76. let's bring in eric boling. he knows a thing or two about the oil market. it looks like the saudis are taking direct aim. is that true? >> yes. yes. they want to come off and think we will not cut production.
reducing about 90 billion barrels a day. they will not cut production because they want to give the u.s. economy a boost. they are our friends. that has nothing to do with what this is about. how quickly can we scale back production to meet the decline? maybe not the demand we were expecting going forward. if they can keep the prices low -- we had a five year low. they were down maybe 40%. >> as long as the saudis -- opec said they will not cut production.
i was on about a month and a half ago. maybe 70 will not be the floor. over the course of time, the futures market is expected at 75 or $80 a barrel. if the economy recovers, you will see higher prices. this is very good for china. china does not produce oil. they buy oil. >> and they buy coal. >> yes. lower oil prices are very, very good for china. watch for the chinese economy to heat up. this is also very good for the consumer. $150 tax cut across the board for everyone watching. you will get more money in your
pocket. that should drop another $0.50 a barrel. in other words, though oil prices drop. >> you will see more slide in the pump price. >> it does not get people to go out to the malls, though. the retail shopping has not improved. >> you see $3, $3.05 on the corner. they have all of this high-priced inventory. once they work through that, reselling it with cheaper inventory. you will see the price go down. >> what happens to domestic shell oil companies? they took a huge hit on friday. >> i would not be rushing to buy any of this.
it will put pressure on all the drillers. although fractures. >> do some of them go out of business? >> yes. i think some of them will. big exposures to oil. you have a big move in one direction or the other. a lot of them get her. manufacturing across the board will benefit from lower oil prices. >> it does not matter if it is plastics or clothing. that is fantastic. >> this is all fantastic news for the consumer, for the homeowner. >> oil production. is u.s. energy a lost dream
right now? >> drillers and crackers will figure out a way to bring oil and gas onto the ground. right now, it could be a 65 or $70 a barrel. the prices have been over $100 a barrel for so long. they will have to cut their production costs. the saudis can produce a barrel of oil for about $75 a barrel. can america do that. can they drop their production costs to the point where we can scale up and scale down? >> i like cashing in. >> thank you very much. not everybody thinks that the saudis are trying to kill u.s. fracking.
do you think the saudis are trying to kill our industry? >> they are probably trying to. they will not kill this industry for exactly what eric was talking about. i want to pull in something else here. we talk about the 40% decline in oil prices. think about this. think about what happens at the national gas price a few years ago. $12. it fell all the way down to three. that is a pretty big decline. we are still wrapping for national gas. this is something that i think is an undeniable positive for the economy. every penny decline in the gasoline price is a billion dollars in the pockets of american consumers.
>> how low can the price of oil go and these show producers still survive? now they are saying $60. >> what we are experiencing right now is a stress test. we will find out what they can produce at. $67 or $68 today. >> what if it goes to 30, steve? >> i would like to see it fall to $10. it will not fall to $30. it will maybe fall a little bit more. the stabilization price is somewhere between 65 and $80 a barrel of oil. we are way ahead of the rest of the world. >> are we now increasing in
silicon valley? we could cut the prices in half. is it the same with fracking? these prices will fall over time. already, just in the last few years you are seeing incredible improvement. i wanted to have another point. what kind of winners and losers. let's not forget who the big losers are here. venezuela and russia. iran, by the way. isis is a big loser here. this is gigantic. >> no question. there will be some fallout. >> yes. that is creative destruction.
>> i read your lips. [laughter] >> great to see you, my friend. fewer people went to the mall this thanksgiving weekend. spending was down 11%. more people are shopping online. stephen herzog joins us right now. overall, if you add in online sales, is it down? >> it is down for black friday. it is not just about black friday anymore. it is about black month. the entire holiday spending month. we cannot just look at that one day as a gauge. a lot of the stores have been promoting since the beginning of november. they will continue to promote all the way through december. the fact that traffic, for
example, if you look at this tape, global mobile payment systems have been up. low gas prices would mean everybody would use the extra gas mileage to go to the malls. that did not happen. >> it has not really hit the consumer yet. we have a month. people have been spending. it is not just about venues and the lower gas prices. if you look at targets numbers, for example, we will see that for a lot of these other retailers. >> you said for a while that that could tumors feel richer. i feel that is overblown a bit. they still are not getting that much more in their paycheck.
there is the inflation of where it hurt them at the grocery store and elsewhere. do you really think that people feel richer? i think the people that have been doing well definitely feel the lab richer. >> the vast majority. they do feel like the economy is getting a little bit better. they may be dipping into their savings. we cannot discount the fact that these gasoline prices are making them feel a little bit richer. >> every merchandise branded frozen is flying off the shelf. i feel like it will be a halo effect. >> elf on the shelf. we have the creator coming up on the end of the show.
>> checking the big board. it is down. it has recovered a bit from where it was. mass that down about one third and 1%. gold, by the way, is up. a lot of people thought that it would be down. apple is leading the way down, for a change. nicole: pretty interesting. we saw a dramatic move in apple. 9:51 a.m. a big selloff here. the move is the largest we have seen in three months. the traders are attributing this to morgan stanley and guard. the stock is clearly up off the lows today.
the low was 111-27. right now it is at 115.72. we are seeing this stock trading on. you are seeing a big move. >> thank you very much. the british newspaper reporting a terror plot to blow up five passenger jets. some officials have called this almost inevitable. do you think so? >> this is a new weapon. it is cheap. it is easy. the isis said text messages.
we know where your family is. we will kill them. what are we talking about? finally, the united states military. isis is saying to civilians go after them. >> spectacular, as it is being called out. is there a way that our intelligence can get ahead of theirs? >> yes and no. >> you always had to turn on your cell phone to show that it was not a detonation device.
>> that is the off side of that deal. are any of the chap points -- i go by them so often and wonder if they are doing any good? >> keep looking for the weapons. you take your shoes off and now it is potentially cell phones. we ought to look at the people. i think we should look at the new type knowledge he that did not exist two years ago. use those to zero in on people that have abnormal behavior patterns. this is not stereotyping, this is not profiling. looking at people that are visiting those jyoti sites. take an extra look at them.
>> now you can communicate with your soldiers who are in the field or jordan navy personnel or whatever it is. instant communication. there is a downside to that, as you just mentioned. >> think about it. as you point out, military personnel, that is how they communicate. they communicate on facebook. they communicate on the internet. we know where his family is. then the sergeant gets a text message saying we know where your family is. maybe the family does get targeted. >> i communicated with family members that are in the military.
i do not want to make it any harder. i love the communication. i wonder how secure some of these communication sites are. >> you do not even have to break into anything. >> i am talking beyond twitter and facebook. i do not think that the military is capable of keeping up with it. >> that is why we need to enlist silicon valley and our tech community. best holiday christmas gift that you could give it show us what we need to do to keep those people safe. >> k.t. mcfarland, thank you very much. amazon breaking sales on black friday. robots. we will take you there live next. ♪
hey, jennar fuzz mike troober munny sling... awwwwww scram! i'm crust mike jubby roll bond chow gonna lean up an kiss bet. peas charty get town down. [laughter] ♪ borf a liver tute face stummy wag ♪ pow pam sha-beeps stella nerf berms. saxa-nay nay? badumps a head. temexiss gurrin. juppa left. fluppa jown! brone a brood. what? catch up on what everyone's talking about with the x1 entertainment operating system. preloaded with the latest episodes of the top 100 shows. only from xfinity. >> taking a look at social media stocks. this is a sector getting hit hard today.
this is russia's answer to google. here is a link to oil. the global drop in oil is hurting russia's stock market. some of the more familiar companies are down and sympathy. record sales over the long holiday weekend. it will be a busy weekend. making sure you get your christmas present on time. jo ling kent is in california. what kind of jobs do they have these things doing? we have audio problems. now she is good. go ahead. >> it is really fascinating. 320 pounds. programmed to deliver to the
packers here at amazon in california. this reduces the amount of time a human worker touches things at amazon. amazon required these robots a couple years ago. this is actually part of many reasons why moody's has downgraded amazon. they issued some debt this morning. a lot of that money will not be used for cap ex. that is why you see this this morning. down about 2.6% when i last checked. increasing efficiency in the long-run. able to have much more stuff packed into this warehouse. anything related to frozen, the disney movie, doing very well. a lot of big news on amazon.
3rd and 3. 58 seconds on the clock, what am i thinking about? foreign markets. asian debt that recognizes the shift in the global economy. you know, the kind that capitalizes on diversity across the credit spectrum and gets exposure to frontier and emerging markets. if you convert 4-quarter p/e of the s&p 500, its yield is doing a lot better... if you've had to become your own investment expert, maybe it's time for bny mellon, a different kind of wealth manager ...and black swans are unpredictable.
. david: well, the market is recovering. look at this. down 36. again, there are other indices down a lot more. the nasdaq down over a full percentage point, but it's improving. the dow coming off 31st record close for the year, so it is an improving market, it may not get into the plus sign within this hour. but we can hope. oil near a four year low touching $63 earlier. right now, that price has interested. up to $68 a barrel. the national average at $2.76. 42 states with average gas price under $3 a gallon, only seven holdouts, new york, vermont, connecticut, california, washington, oregon and the district of columbia. the cheapest gas in the united states, $2.10 that is at a
citgo at north houston. oil and gas prices, roll the tape. >> about $150 billion tax cut across the board for everyone watching. doesn't matter if you are at the bottom end or the top end. you are getting a tax cut. more money in the pocket, and we showed a $2.75 pump price should drop another 50 cents a barrel based on the oil price. david: to a tax fight brewing on capitol hill. rich edson joins us from washington. what's the latest? . >> talking about what's known as the tax extenders, expired or expiring tax provisions, they are specialized tax breaks, taxpayers and businesses, in limbo whether they can take the popular deconductions when filing season begins next month. the white house scuttled a deal between democrats and republicans in the senate. it would have made permanent for research and development, the white house says because it
failed to also extend past 2017 expanded credits for parents with children or lower income workers it too favored businesses. these dozens of tax extenders expired last year. if congress strikes a deal it would retroactively reinstate deduction. negotiators are still trying to reach an agreement before congress goes home for the year, david. david: we'll have more on that with art laffer at the top of the hour. thank you very much, rich. president obama sold his health care law to corporations by promising saveings if they started wellness programs, giving incentives for boys to lose weight, exercise, quit smoking, healthy living means lower health care costs. the president's equal employment opportunity commission is filing lawsuits against the companies implementing the new rules. why? it's illegal to ask employs about certain aspects of personal health.
judge andrew napolitano is re. judge, i would say this shows the suicide pact between the corporations and big governments. crony capitalism gone wrong, right? >> certainly the insurance companies did. i appreciate you mentioning the book, david. it is atine of tyranny for the government to write laws that are so complex that by following one law, you are violating another, and for the same. david: republics have been doing. >> it forces you to be a law violator inconsistent with the constitution with basic principles of morality. for obamacare to say you employ 50 or more people. you have to set up wellness programs for obesity or diabetes or depression. if you ask them, you are going to violate the law, that's absurd. david: don't you think they recognize some of the inconsistencies here and that
they were just trying to lure corporations into something they knew would screw corporations. they had no intention of letting corporations off the tax hook, were they? >> i don't know what the intention was. the law is so complex, no one read the statute. in my view, the statute is a short-sighted unconstitutional transfer of wealth mechanism, under the guise of being a caring for health care for the poor. david: to your point, this law is so complex, if you follow one piece, you have to contradict another. i'm thinking more conspiratorial that the administration thinks they can squeeze corporations dry, that every lure that they use to bring corporations into obamacare at the end of that lure, there was a hook by which they were hoping to hoist the corporation. >> the administration thinks the president can enforce laws
that he agrees with, that the president can rewrite laws and the president can change the laws, it is not beyond them to think as you suspect they have with respect to obamacare. did they lure people in? look at professor gruber from m.i.t. we know for a fact the principal architect paid more to write the statute than the president earns in a year was attempting to dupe members of congress by the way he wrote the law. david: we're going to hear from mr. gruber, speaking in front of a committee. he will be asked did you share your views with the president? did the president sign off on your belief that, in fact, we were duping taxpayers into coming along with no intention of giving them a better break. isn't that exactly what the administration is fining a lot of banks for? luring consumers in, in their real estate deals? >> oh, but david, the government is allowed to lie us
to and the supreme court said that. we can go to jail. ask martha stewart, for lying to the government. we can be sued for lying to our clients and customers and business colleagues, but the government can lie to us all at once. constitutionally they are allowed dispensation for this? >> yes, yes, in my view the supreme court opinions are wrong. they are clear, consistent and the law of the land. the government can lie, cheat, misrepresent, even steal in order to enforce its own laws. david: talk about free speech, the supreme court hearing a case over a man who posted violent rap lyrics about estranged wife on facebook page. here's one quote -- judge, the man was convicted of making threats against his wife. he claims matter of free
speech, writing lyrics to a song. i have the right to put that on the internet. >> his conviction was upheld and accepted by the supreme court. in my view, the reason the supreme court accepted this case is to invalidate his kwiksz. david: so he will win? >> that's my educated guess. you know my job is to watch what the supreme court does. these present nine members of the court have the most pro free speech, pro first amendment history of any supreme court in the modern era. secondly, one ordinarily is not punished for uttering a threat unless one has the present apparent ability to carry out the threat. david: i'm with you on free speech. i'm with you on this particular case, but i'm wondering do you always have to wait until after violence is committed before you can take some measure to stop that from happening? >> you certainly have to wait
until the violence is imminent because the words themselves. david: just the words -- >> about to happen and is inexor able, the process tort has begun. david: that means it's probably going to happen or the likelihood of it happening is pretty good. >> the founders made a value judgment in 1791 when they added the first amendment. it's better to have free speech than have police punishing people what they think they might do. david: bottom line. free speech is here to stay. suicide pact is here to stay as well. these are the uncorrected pages not the hard copy. >> i will get you a hard copy, it will be on your desk in five minutes. >> thank you very much, andy. hackers attack sony, some that haven't hit the theaters yet. we're learning it could have been orchestrated by north korea because of this film. >> this is the secretary of communication for north korea. our supreme leader kim jong-un
is interested in doing an interview with dave skylark. >> my god. >> we will meet 50 kilometers west of dang dong. >> did you say china? and did you say dong? she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess.
side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. . >> reporter: the dow jones industrial average down 40 points sitting at 17,78. a loss of one quarter of 1%. the nasdaq composite down 58. that's 1.25% for the nasdaq. seeing a lot of pressure on
techs because of apple which has slipped to the down side. dow movers, chevron and microsoft. take a look at some of these and exxon, three names to the upside gaining more than 1%. chevron up nearly 2%. seeing caterpillar and ge to the down side. take a look at the retailers. the holiday weekend shopping spree, fewer people shopping, they spent 6.4% less year-over-year down from 380 bucks and shopping dropped 11% in total. tes tesla reportedly working on bmw. bmw says that's not happening. down 5% on the down side.
. david: check shares of disney, down a little bit, dina mensel, the voice of elsa in the popular movie "frozen" is hinting a sequel in the works. the original "frozen" became one of the highest grossing films of all-time. it still has legs. take a look at this. mile long security line at chicago's midway airport as thanksgiving travelers headed home yesterday. officials said the line cleared after the first bank of morning flights went out and security wait times were relatively short by 9:15 a.m. local time. sunday travelers faced the biggest halves in san francisco, denver and l.a.
because of weather. five unreleased sony pictures movies leaked on the internet including the new comedy the interview which blasts north korea's leader kim jong-un. there is speculation that north korea may be behind the hack in response to the new movie that lampoons their leader. adam shapiro is here for more on all this. adam? >> reporter: two events that have gone wrong with sony. you have the movies, for instance, fury, brad pitt's film, 880,000 illegal downloads, annie, about 125,000 downloads. this coincides with attack on sony pictures computer systems last week which shut down computer system. they hired fire eye to get them up and running, a forensic group who tries find out who's responsible. the speculation is the north koreans are responsible. the movie the interview is about assassinating the leader
kim jong-un, take a look at trailer. >> you two are going to be in a room alone with kim and the cia would love it if you could take him out. >> huh? >> take him out. >> for coffee? >> dinner? >> no, take him out. >> you want us to kill the leader of north korea. >> yes. >> what? >> reporter: this movie comes out december -- david: looks good, i like it. >> interestingly, getting more publicity perhaps now. david: here's a question, is it conceivable that sony did this as publicity stunt, linked north korea to this? >> reporter: no, no, the sony computer systems were all shut down and a group that calls itself. david: i understand it was a sony problem. to link it to the north korean leader. the 880,000 downloads is it conceivable they can find out who downloaded them and possibly fine the people who did or arrest them? >> you know, if you're old enough to remember napster,
when they went back to find the people downloading songs in the music industry went after individuals and sued some for hundreds of thousands of dollars. sony, if they can figure out through the isp that you downloaded it, they could do. that north korea, they issued protests about this movie on the north korean government website. there's a plausible reason as to why the north koreans are behind. this whether sony can go after the north koreans and kim jong-un, that is another. guardians of peace, go copyright that name, it is a movie in the making. david: good publicity for sony. >> reporter: good but with a headache that's not two other. david: is the u.s. government getting involved? >> yes. david: with the notion this could be a cyberattack? >> i e-mailed sony this morning, e-mail is down. that won't get you far. sony issued a statement in regards to the computer attack, the hack attack they issued a
statement saying there was an issue, regards to the movies, they issued this statement. so if you did download fury, you should have seen it in the theaters, it wasn't that great. i don't know who's going to see annie unless you got an 8-year-old. if you downloaded it, you may be in trouble. david: i'm going to see the interview. >> reporter: yeah. david: you may have heard about the elf on the shelf. chances are kids or grandkids have. this is a phenomenon, a huge moneymaker, in just a few short years, we have its creator coming up after a short break. i'm only in my 60's.
i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses.
the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from. we love to travel -- and there's so much more to see. so we found a plan that can travel with us. anywhere in the country.
[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. . david: do you know about the elf on the shelf? if you have young kids or grandkids, you probably do. if you don't, it's a doll that has been sent from the north pole by santa claus to watch over your kids to help santa
keep track of who's naughty or nice. every night the elf flies back to the north pole, every morning it finds a different spot in your house to keep watch. get it? it's a christmas phenomenon. right now joined by one of the creators of the elf on the shelf, chandra bell is with us. congratulations, this is a huge! my daughter is 22, okay? she's a little old because it started when, in 2004. >> we launched in 2005. david: okay, 2005. so the kids 11 and under grew up with this, right? >> yeah, i think so. david: and how did it come about? >> when i was a little girl, santa claus used to send an elf to my house. fisby is what we named the elf. in the morning before we wake up, we would race out of bed to go find elf, and my mom would say the elf is talking to santa
clause. david: whose idea was it, mom or dad? >> it goes back generations on mom's side of the family. david: where did you grow up? >> i'm from atlanta, georgia, originally, we're from the south. david: all right, can we show the elf? i saw the macy's parade this year, they have the elf in the macy's parade? >> they do, the elf in the shelf is a giant balloon in the macy's parade. a boy had a dream come true. david: the key is when you make it to the macy's parade, you know you've made it commercially. whose idea was it, yours or your moms to turn it into a commercial venture? the success is successful. >> my mom and i both really understood how much this tradition meant to our family and thought other families would enjoy it. we never set out on a commercial venture, per se, it's turned into that because we couldn't get anybody to publish the book. we started the company
ourselves and myself and my sister and my mom. but sprang from our own family tradition. david: since you started it by yourself, do you get all the profits? >> you know running the business, you are the last one to get paid. david: i believe this picture is from our producer who actually -- when the elf goes back to the north pole, he comes back and does little devilish things like making "i'm back" in all kinds of different ways, marshmallows and cookies, there we go. >> elves match the personality of their families. so some elves are crazy and insane, and other elves like my own elf that comes to my house are calm. we just play, our elf plays hide-and-seek with kids. sometimes they leave us little notes. all of this is a fun way to engage for the entire holiday. >> i know it's fun and you care about traditions, but this is a huge moneymaker, is it not?
>> you know, again, as a business owner you are the last one to get paid. this is about working for santa claus. that's what we do. david: anybody that's that's shy about business success is probably very successful. congratulations. >> thank you, honor to be here, appreciate it. david: president obama kills a tax deal over a $6,000 tax credit that would be given to every new immigrant. doesn't sound like the american way. that's new at noon. and talking about the biggest story this cyber monday. girl scout cookies soon available online! how much money will that bring in? hour two is two minutes away. stay tuned.
how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. dad,thank you mom for said this oftprotecting my future.you.
thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. . david: starting off on the wrong foot. chances are your immigrant ancestors didn't get a lot of help in the new world, they pulled themselves up by boot straps but most immigrants do, and that helps the country grow
stronger. president obama doesn't see it that way. he killed a tax deal by insisting newly legalized illegals start new life with a bonus of up to $6,000. courtesy of you, the taxpayers who don't like the amnesty. that's starting off on the wrong foot. a declaration of dependency not independence. hour two of "varney & co." starts right now. david: start off by check the big board right now. down 52 points, the dow off lows from earlier, but it hasn't improved as much as we were hoping it would. gold was down earlier after the swiss voted down the gold standard but look at it now, taking quite a hop. $27 and over $1200 an ounce. oil still near a four year low but bouncing back as well.
it touched 63 earlier, up almost exactly the same percentage as gold, up to $67.94 a barrel. gas is dropping a penny a gallon per day. the national average for gailon of regular at $2.76. back to the big story, president obama granting millions of illegal immigrants amnesty and welcome gift could be a big check courtesy of the u.s. taxpayer thanks to the earned income tax credit. we have former reagan economic adviser art laffer with us. hooking immigrants on welfare. that seems to be what the president wanted to do? >> i suppose it is. it's amazing to me, these people want to come here to earn money to get the better standard of living and better life. they didn't come here to get welfare. and these people are the salt of the earth, i can't admire them more. don't pay to have them come in
and get welfare. david: i can think of european companies suffering because of illegal immigration like belgium that immediately showered the new immigrants with welfare benefits. are we in danger of going in that direction? >> sure, of course we are, in fact, it's just the wrong thing to do. what we should do david is lower tax rates, broaden the tax base, reduce spending and let people have at it. if they want to work and keep what they earn, that's fine, perfect. and get government out of the way. these types of policies that obama and unfortunately a lot of the republicans are proposing are just interventionist types of things, they're trying do all the garbage and junk, get it off the table, and lower the tax rate down to 28%. broaden the tax base and let the economy grow. that's what we need to do. david: for the wrong reason because the president, republicans were objecting the
president's rule on immigration, but maybe it's just as well that this tax deal, went abust. this way we focus on the fundamentals, getting away from the special deals, lowering all the tax rates. >> exactly right, david. that's just the way we should do. and one of the things that bothered me always, whenever the president comes in, let's do something. my view of a good president someone who says let's undo something. let's lower tax rates, broaden the base, let's get rid of a lot of the welfare, it's just not needed. corporate welfare, personal welfare. you got to stop them. david: by the way, this particular form of welfare, it's called the earned income tax credit. it was a conservative idea, milton friedman among others thought of it. towards the end of his life, he regretted having put this measure into political circulation because of the way it was misused.
>> that's like enterprise owned deals were welfare payments as well, and it's the exact same thing. a good idea. milton was the negative income tax, one rate and you got a negative amount. but that doesn't make sense, they're a low rate, broad base, flat tax and go at it. these kids will do great. david: there was a bill, it wasn't even a bill, formulated in a bill. the president said he liked it simpson mazzoley, the basic idea of getting rid of special deals, lowering tax rates across the board, ending up with i believe three or four tax rates and the top one would be much lower than it is now. are we going to see republicans reintroduce the bipartisan measure simpson mazzoley. >> it was simpson bowles. david: i'm sorry, simpson bowles. all of us supported, democrats and republicans.
bowles is a great guy, a good person and a democrat, and simpson did a great job on this. why not do it? it had broad bipartisan support. let's go at it. this president has to sit there and mingle and diddle and push things and do special deals all over the place, hopefully currying favors. it didn't work in the last election. david: if republicans and democrats can get together for simpson bowles, all the better for the nation. simpson bowles. thank you very much. >> david, good to see you. david: oil touching 63 earlier. took a hit when opec said it would not cut production. let's bring in larry levin in chicago. hearing all kinds of predictions on the price of oil going as low as $30 in some cases. what do you say? >> hearing all kinds of changing predictions. david, because everybody is talking about oil being $80, $100 and people lowering predictions quite a bit.
it would have been interesting to see them cut production or cut some production. in the meeting last week because we had more volatility than we have right now. if you're a trader of oil, there's been very good action. you had to play it from the short side, had to sell first and buy later. traders have had really good opportunities in oil and that's going to continue. 28-year high in production oil right now. that's why you're seeing the action you're seeing. david: the big question, is today's price hike a dead cat bounce? >> i think it is. i think you could sell this rally like you've been able to sell rallies over the last couple of weeks and find lower prices. below $60, staple is $60. that's the area everybody is looking for the market to come. sitting at 60 right now. another $8 move wouldn't be out of the question. david: larry levin. few big names are bouncing back, nicole. what do you have for us?
>> reporter: what's interesting is energy is the worst performing sector of the year, 2014. earlier todays a noted we hit $63.70 overnight that was the lowest that we've seen in over five years. this group has been beaten down. some of the names are bouncing back. look at chevron, exxon, up more than 1%. royal dutch shell another winner. the big picture here is many of the names in the energy sector, you may see people thinking and nibbling they can pick up a little bit of this group, but the big picture is this group has been beaten down, anybody who owns an etf that is a basket of energy stocks has seen the group is a weak performer of the year 2014, no document as we wrap up this year, we're seeing this group as the weak player overall. a little bottom fishing today. david: nicole, thank you very much. to ferguson, president obama is going to be holding a meeting with his cabinet, civil rights
leaders and law enforcement officials, but take a look at a video from yesterday. five members of the st. louis rams raising their arms in the wake of the events in ferguson as they walked onto the field during introductions before their game against the oakland raiders. the st. louis police officers group is called on the nfl to punish the players. the nfl says it will not do that. joining us is jason riley, the "wall street journal" editorial board and author of the book, please stop helping us. jason, what do you think of the rams display? >> particularly in the case of white police officers, the norm, of course, is blacks being shot and killed by other blacks, and there's a false narrative that cops are shooting black men, and that's why our morgues and cemeteries are full of these young black
men. it's not true. david: specifically on the st. louis rams display that we saw. i'm wondering if the report that came out about what happened that night in ferguson disspells the image of the raising of the sxarms whether myth has become reality. >> it should, but it doesn't. and your right, this has become reality because people on the left, particularly in the media are pushing this false anti-cop narrative. david: what does president obama think? do you think president obama would be raising his arms with the players? >> president obama has been all over the map on this. some of the things i agreed with, that poor people in particular need the police in the black communities in anti-cop narrative is not serving their interest. at the same time, i think he fueled some of the frustration by the multiple investigations, redundant federal probes, giving people a sense there is something amiss. david: you are not the only one
talking about black on black crime as well. i want you to listen to the video, this is milwaukee police chief edward flynn's response to police protesters. take a listen. >> what's your response to some of the people that thought you were being disrespectful by being on your phone and not being attend sniff. >> well, i was on my phone, yes, that's true. i was following developments of a five-year-old girl who got shot in the head in a drive by shooting. if somebody gave a god [ bleep ] about the victimization of people by crime, i take some of their invective more seriously. david: that is a white cop talking about black crime. don't you think black families would agree with it? >> of course. what makes the communities hell are the michael browns not the darren wilsons. they are called to the neighborhoods to take care of the michael browns. this anti-cop narrative is not serving the interest of low income blacks in the communities who want to continue living law abiding
lives. that's who's going to be hurt. cops not being as aggressive, looking at what happened to darren wilson saying i don't want that to happen to me. who's going to suffer? the law-abiding communities. one other thing that we need a police force that better reflects the community and that is the root cause is belied by what would was on in the 1970s and 80s when black crime was rising tremendously in cleveland and baltimore and washington and l.a., oftentimes under black mayors and police chiefs. root cause is not the cops. it is not the clans doing drive-by shootings. >> by the way, darren wilson has resigned, i don't know if it's effective or not. he is resigning. how many of the protesters are willing to take his job? how many of the people complaining about officers like him would be willing to do what he has done? walk the beat, carry a weapon, and try to defend the community
he's sworn to protect. >> exactly. that's exactly the point. they only care about the black lives when it's a white person doing the killing, which, of course, is rare. the alternative and the norm is black on black violence, and they care very little about that. david: jason riley, good to see you, thank you very much. here's the lineup for the rest of the hour -- the irs accused of sharing private citizens's tax documents with the white house. charlie gasparino live on that. hillary clinton losing a little steam leading up to the 2016 election. governor mike huckabee who has personal experience with the clintons on that. and the new "star wars" trailer, a big topic of discussion over the holiday weekend. it will live up to the hype? coming up next, global warming according to the "new york times." only two possible outcomes. either the earth will become increasingly unpleasant or uninhabitable. we explain after this.
this will be season three, but not helping shares much. check shares of disney, adina menzel the voice of elsa in "frozen" is hinting a sequel in the works. no details yet. it was one of the highest grossing movies of all time. the stock was down earlier. the latest from nfl and ray rice, indefinite suspension lifted, a reversal of nfl commissioner roger goodell's original punishment. charlie gasparino is with us. big question, charlie, is goodel done, the judge essentially called him a liar? >> full disclosure, i'm an acquaintance of roger goodell. the nfl has done very well financially under roger goodell's leadership. the problem that he has i think here and this is a slow burn, and i think tenure is coming to an end, that's my opinion, because if you think of it this
way, if you're a ceo that openly lies, right? or a judge found that you openly lied, chances are you're not going to remain. david: what do you think? >> this isn't a company with a -- but he definitely threaded the needle of how can i put it, he danced in exactitude. i don't want to call someone a liar. think of it this way, there is a meeting between ray price and roger goodell about what happened in the elevator. we all know that he knocked his wife out. ray rice, according to multiple versions, people that were in the room when he was talking to roger goodell conceded he knocked his wife thushths he -- out, he hit her and knocked her out. ray rice wasn't telling him the
whole truth and nothing but the truth so help me god. this judge said based on all the evidence, and fair reading of the evidence, mr. goodell you're wrong. david: doesn't he serve at pleasure of the owners who lot of guy. >> not a public company but at some point if you have a guy no one is going to trust running a company, running an organization. it's not public in the sense that it has public shares but public in the sense that it has been image. they want to reach out to women because they saturated the male market. they want to reach out more to women becoming increasingly into sports. i don't know if you can have a guy that lies or use so much inexactitude. david: if he doesn't resign, who would pull the plug if he's got to go? >> some of the top owners of the top market teams that make that call. i think it's someone like the guys that run, mr. kraft from the patriots.
david: powerful voice. >> the gentleman who owns the miami dolphins, larry silverstein, right? the real estate mogul, if i got his name right. those are the type of people that would go to you and say it's going to hurt us, we can't have this. it's kind of interesting, we haven't seen the outcry from the advertisers where. is the woman who runs pepsi? indra nui, one of the more progressive ceos out there, why isn't she saying, we have a -- the nfl, which basically is a big advertiser is run by a guy that doesn't tell the truth. david: by the way, steven ross owns that. >> steven ross. not me, my producers. i get those guys mixed up all the time. david: charlie is with us the next couple of blocks. united conference on climbed change happens today in lima, peru.
listen to what happens if we don't come to an agreement on climate change, quote -- that's without some kind of treaty. fox news contributor and townhall.com editor katie pavlich joins us, after reading that, you built a bomb shelter, right? >> i don't know if we fwhald with the global warming, the united nations has climate negotiators in south america that's weak and they all flew on their expensive carbon fueled jets to get there. david: good point. >> and i'm sure staying in fancy hotels which take electricity which produces carbon. they're look for a climate change global deal, right? they're optimistic about the deal that president obama supposedly struck with china, something they've been trying to get on the box for years. the united nations isn't working for climate change
funding, it never goes up going towards what they say it will. david: katie, how much longer can organizations like the "new york times" make claims that are so preposterous that nobody could believe them unless they're totally converted by this theory? >> well, when they're listening to people like al gore who sounded the alarm years ago saying that the seas would be already take over our cities and the -- david: they got proven wrong, they said it long enough ago, we know predictions turned out to be completely false, and we to know have the "new york times" making predictions that are even more outrageous. >> and it's multiple times, mentioned the article. if you go through the article, uninhabitable on earth, it's not just in one paragraph, multiple paragraphs, right? i don't think the "new york times" is going to stop doing that, not going to cite the hundreds of scientists who don't believe in global warming, who don't believe in climate change, don't believe humans are the cause of warming
or cooling on the earth since the earth has been warming and cooling for billions of years according to scientists, and the thing about the u.n. meeting is that according to the scientists that they're citing, they can't do anything to stop the earth from warming three degrees, they're asking for a bunch of money that's thrown down the black u.n. rabbit hole once again to solve this desperate problem that a lot of people don't think exists. david: the rhetoric is certainly not helping the "new york times" any. not helping with their subscriptions or market price. katie pavlich, appreciate you going on. more outrage with the irs accused of sharing private citizens' information with the white house. was there a direct pipeline from the irs to the white house, and who will be held accountable? gasparino on that, after the break.
christie's staff directed a lot of bad stuff involving bridgegate, putting the traffic jam at the gwb. it wasn't chris christie who did it, the governor of new jersey. president obama's staff did a lot of this stuff. that doesn't mean it's president obama. david: the point is the irs is out of control. you can reform it or have to tear it up? >> you have to reform it. you and i were talking before the break you were saying maybe you should rip it up. if you have a flat tax, if you have a simplified flat tax. >> you don't need 100,000 people or whatever. david: dipping into private records. >> i know, you're thinking you're going to a "wall street journal" editorial board meeting right now. talk reality, david. we're not going to have a flat tax for a long time. david: workers at the agency
that everybody hates. this is a democracy, if everybody hates something, it should change. >> i don't think people necessarily hate the irs. >> i think so. david: don't you hate irs? >> i hate political overreach. i don't like the fact they're targeting conservative groups. that's a scandal. we need an agency and there are very decent people working at this agency that collects the taxes, i like less taxes, a flatter tax, but i'm saying if you get rid of the agency, there will be no one to collect the tax. >> you are guilty until proven innocent. >> i would like to see some sort of a rough form. you were talking about this during the break. what did you want to see? here is my 10-point plan to do
we had 63 earlier. you think a $40 price target is going to happen; right? >> not for long. i think u.s. show producers are finding it more efficient to do what they want. our output exceeds libya is right now. >> how many of our own crackers and shall oil companies will survive? >> that is an interesting question. the companies that are weak and do not have a good balance sheet. they will gobble them up in a moment of weakness. >> art laffer, how that -- could this actually be a good thing?
>> that is interesting. the careful ceos have already been making work to that effect. >> quick 10 seconds on gold. where does it go from here? >> i think it is a shot in the wrong place. >> two picks for us. >> a very reasonable player. if you are looking at kander morgan, you are looking at the largest player in the business. i think that is a good play
defensively. good to see you, keith. thanks for coming in. appreciate it. hillary clinton. some democrats, including massachusetts governor say voters may be put off by the inevitability of her candidacy. we have governor mike huckabee with us who knows a lot about the clinton. >> it did not help when she went out and talked about how broke she was. that did not help. it is a bigger problem than that. she is not her husband. when people talk about how inevitable it is, i just remind everybody that she was inevitable back in 2008 when a very little-known freshly minted senator by the name of barack
hussein obama beat her for it the nomination. elections are also about money. you mentioned that she had raised a lot. >> it will take a lot of money to run and be successful. like a guy that spent an enormous amount of money. he was not selling any of it. how come nobody is buying this? because the dogs will not eat that stuff. it comes down to whether the american people will accept
hillary clinton, except her message, except her. >> we talk with charlie gasparino about the irs. i will and the irs. do you think that alone could win? i think that is how frustrated the american public is with the irs. >> i do not think that there is any silver bullet. i have been a strong supporter of the fair tax. a very thoughtfully prepared process of getting rid of the irs. it would be a flat tax on consumption. i think this has real merit.
middle-class americans and people who would like to be in the middle class. >> he did not like that idea. it is too easy for government to raise it up. how do you respond. >> the difference is, it is transparent. people do not realize until it is too late. you know exactly what you pay. there is the tax. it is sitting right there for the world to see. you will see a lot of politicians at the next election. that is not the worry i have.
>> in the more short-term, do you think it is conceivable that there are enough moderate democrats that after january 1 they will combine more republicans to pass meaningful tax implications. >> i would hope so. we will never get this economy growing again. it is the certainty of a tax policy as well. getting rid of what we now know. the highest corporate tax in the world. france is unapologetically a socialist government. that ought to be a wake-up call for even democrats in the congress. >> governor mike huckabee. good to see you, governor.
because we do. we're exxonmobil and powering the world responsibly is our job. because boiling an egg... isn't as simple as just boiling an egg. life takes energy. energy lives here. i have $40,ney do you have in your pocket right now? $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ nicole: i have your fox business brief. the dow jones industrial average
is down 42 points. the s&p 500 is down three quarters of 1%. 47.32. energy stocks. they are under pressure again. sound hitting new lows. some of these names have been down this year. down 60% this year. then you have a different group. we are watching big lots. the stock has been rewarded. the stock has been a winner this year. that is why they are downgrading it. groupon gets an upgrade. more "varney & company" coming up. ♪ new zealand, textile production in spain, and the use of medical technology in the u.s.?
at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of r mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours.
if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. >> look at the shares. bmw says it is not interest did in the unlike rick carmaker. taking a look at shares of ali baba. giving a special tax treatment thanks to congress. roll the tape. >> ali baba is china's largest retailer. now they are coming to america.
thanks to the online sales tax loophole, this company will decimate us. main street will never look the same. >> charlie gasparino is still here. what do you think of this? amazon gets this loophole. ali baba is ran by the chinese government. this does rub me the wrong way. corporate welfare is bad. >> this is read the perspective of this.
>> a lot of darkness in that trailer. we have a technology consultant with us. >> i thought that it was great. i love the trailer. i am cautiously optimistic. for disney, i think it is great. >> what do you think it will take to make this a super success? >> i think disney is showing the way already. every single year. >> what is the secret sauce? >> i think that it is making a big deal out of it. it shows people care. what about bringing back the old
stars. >> they need to set up these new stars. harrison ford is up there. >> we said you were a geek. there was a time 30 years ago. now, you have seen everything imaginable. is there anything that would shock you or surprise you in a movie like this? >> marco polo previews. they announced the new season of house of cards. that will be coming up.
>> it is very hit or miss. >> there are concerns about competition. can they hold off? >> on after the bell out 4:00 p.m. eastern time, i will be talking with patrick byrne. he is always fun. 4:00 p.m. eastern time. meanwhile, girl scout cookies going online. it will make a lot of people happy. it could also take away an american tradition. ♪
me. we are so excited. >> whose idea was this? >> this was the girl's idea. they basically have been wanting us to go online. we had to think about it in a way that was safe and smart for them. >> is that one of the reasons why you are avoiding the door to door stuff, because it's not safe out there? >> it is so much of the sale. making the sale as a girl scout is that personal relationship. if you do not have that, i cannot imagine you selling a lot of cookies. >> not the same. you feel guilty if you do not buy a cookies sometimes.
>> we are now making it easier for them to find girl scouts. add those personal touches. >> i like the peanut butter patty. >> you made the pitch yourself. you were a girl scout. there is nothing that beats that interpersonal relationship. >> never. no. girls learn so much from that. get rid of some. they will still have this. brick and mortar is one. online is so key to learning how to start a business. you would have thought it would've would have been based somewhere in the midwest. is there actual door to door cookie selling in manhattan?
>> the cookies bosses are very smart. they set up in buildings. they set up booths on their day off from school. >> how much money do the girl scouts bring in every year from girl scout cookies? >> nearly $800 million. >> what? 800 million. i had no idea that it was that much. >> best of luck. more varney coming next. ♪
the "wall street journal"'s jason wylie. now, it is time for deirdre bolton. >> thank you. cyber security assessing 52 new sony film releases. shredding light on an espionage ring. it is holiday shopping season. retailers giving getting all they can to encourage you to spend more this cyber monday. and amazon's case, black friday is the busiest day ever. cyber monday, four amazon, the company sold 426 items every second. jo ling kent is at amazon