recommend as he well. hank smith, haverford trust chief investment officer. [closing bell rings] there is your closing bell. david asman, melissa francis. pick it up here for "after the bell." guys, take it away. cheryl: stocks fighting for gains in final moments of trading. i'm melissa francis. david: i'm david asman. this is "after the bell." we have you covered in the big market movers. here is what else we have for you this hour. donald trump resonating with voters this week, gaining ground with hillary clinton in national head-to-head matchup. the results of a brand new poll coming up. >> the iran nuke deal was supposed to prevent iran from developing nuclear weapons. but a new report says there were secret loopholes approved by the obama administration. disduring new details in this developing story. bracing for impact.

florida hunkering down as hermine just strengthened to a category 1 hurricane. we're tracking the storm as it heads for land. melissa: the dow barely in the green, led my walmart shares and nike and proctor & gamble. phil flynn is price futures group. he is watching oil and gas drop despite the hurricane in the gulf. lori rothman on floor of the new york stock exchange. lori, start with you. the financial sector taking a hit today. reporter: one reason, melissa may be an article in "the wall street journal" suggesting that some banking industry groups are considering legal action against the federal reserve and the stress tests. those were initiated after the financial crisis as regulatory measure to make sure the nation's largest lenders remained solvent and in an effort to protect consumers but it has been a tremendous burdens on banks themselves

the low interest rates weighing on the banking sector today. auto sales came out throughout the afternoon. gm down over 5%. that was the trend this is just about the worst month for auto sales since about the 2013. a lot of the auto analysts are now saying looks like 2015 was the peak for this most recent cycle in auto sales. we might have hit a plateau here. send it back to you. david: lori, thank you very much. phil, an oil selloff pushed stocks down this morning. why is oil and gas dropping with a hurricane coming? usually that happens the other way around, doesn't it? >> it sure does. that happened a little bit last week. we saw oil prices rally as they saw the storm coming in. it really comes down to the amazing work of the offshore oil workers. you know now that the storm looks like it is going to miss

major producing areas and platforms, believe it or not they're bringing production back online already. we got a report from the bureau of safety and environmental enforcement that actually said a few days ago, 22% of the gulf oil production was down. they brought it back to only 15%. that is up 7% from two days ago. the same with natural gas. two days ago, natural gas production was shut down 11%. that is down to nine. so they're moving. now this is a bigger threat to demand than production. if you look at gasoline price, they got hammered because the east coast will stay parked all weekend. back to you. david: gas prices cheap. i like that. thank you. phil. melissa. melissa: walmart is eliminating thousands of its highest paying jobs. they are cuttings 7,000 back office positions across the country. workers will be transitioned into other roles that involve interacting with customers, they may see a reduction in pay.

let's bring in today's market panel. todd horowitz and veronica dagher from the "wall street journal." todd, i will start with you. what does it say about walmart out of the back not doing these jobs that people say they fought for. these jobs never opened up, they were the best ones? >> hi, melissa, the first thing they're doing, cutting back on payroll. they're trying to compete with amazon. they will take away from high paying jobs they no longer need, what they endp with distribution centers and low-paid employees, versus higher-paying employees. that is what everybody is trying to compete with is the amazon model. melissa: veronica, costco disappointing sales, a lot had to do with gas purchases but retail not looking great. >> people don't want to go to the stores, unless you're amazon, you're coming under pressure. walmart has seen this to an extent, not same extent target has.

walmart has good last quarter. what they're really focusing on now as a company getting more tech-savvy. i think that is what the move we saw today was. more automation in the stores. we're sayings things like walmart pay expanding. we're seeing more and more companies getting automated to cut those costs, because they o deal with. that put pressure on the bottom line. david: let's move to tesla which is now being labeled a cash incinerator by some analysts as it prepares to link up with the sister cash burner solarcity. both stocks were hammered after a $422 million payment to tesla bondholders, that is not enough. it is in the third quarter. it will have to be supplemented by more borrowing to make the solarcity deal work. todd, i'm wondering if elon musk has bit off more than he can chew with the solarcity deal? >> elon musk is genius but unbelievable when you start

using other people's money, how he built tesla and solarcity empire by getting tax credits from california and from the government to build these, you lose $5,000 a car, can't make up difference in volume. that is the real problem, you eventually run out of other people's money, they have run out. low interest rates are hurting. you can't float the money he took in prepayments. david: i don't know if they -- he may sell the new bonds, veronica, i wonder if it can survive without any government assistance. they're getting tax breaks for people who buy their products. >> they get a lot of tax breaks indeed. if the deal doesn't come through between the two companies, solarcity will have soul-searching to do. will they be able to survive on their own. there is a big question in this deal also? will tesla shareholders want to approve it? do they want to get into the solar business? a lot of investors want to be in the electric car birx not necessarily the solar panel business.

melissa: yeah. all right, if you don't always have time to be pleasant when you're flying, it might be your own fault. david: what? melissa: american airlines is receiving backlash after kicking off a new ad campaign. you have to see these ads. they tell people how to quote, become better passengers in order to improve their flying experience. todd, this is not very user-friendly message here. they're saying if you don't like babies crying, make sure you bring noise canceling headphones. it is on you to have a good flight. >> one of the problems when you only have two or three major airlines that take the load, they have got a monopoly and they can basically tell you to go scratch when they want you to do something. i think the message they're sending is the same they always send. they really don't care about what you think because there is a big line waiting. they make all the money. they control prices and have no real competition. melissa: yeah. >> they will continue to run like that. they don't care about customer service.

melissa: veronica, always upbeat, great flyers make best of the situation no matter where they are sitting. >> sounds like a lecture. thanks, really some of this stuff is common sense. people should be doing it anyway, but from the customer's point of view paying all the money for your flight. seats are smaller. you're stuck on the tarmac often for hours. this is not going to fly right. melissa: they're spending their money playing these ads. that is what i don't get. lululemon out with second quarter results. let's go back to lori for those numbers. reporter: melissa, it is pretty close. wall street pressuring the stock in the after the session. 515 million was the forecast. just half a million dollars light on the revenue. in terms of earnings per share, it was right in line. adjusted numbers, 38 cents. analysts ahead of the report were bullish on outcome, even though shares were lower. ahead of the report they had

complimented lulu getting its act together. remember pants-gate? they had the management shake-up. they seem to get their act together in terms of the pr crisis. they brought in the inventory. inventory rose 21%, versus 36% and 55% prospectively year-over-year. that is an improvement. in this call inventories decreased further. that is pretty good. we'll follow numbers and action on lululemon. for now we send it back. melissa: thank you. david: hillary clinton will tweet about that no doubt, putting in her emails. big spending in the department of defense but not on military equipment or training. what employees actually have been charging on their government credit cards, that means your money, that could be putting our national security at risk. melissa: amazing. more bad news for elon musk. massive explosion at spacex launchpad. look at that! destroying a rocket and facebook satellite too. how the ceo is responding.

david: not a good day for elon. hurricane hermine, not hermine, barreling up the florida coast with winds of 75 miles an hour. we have an update where the hurricane will make landfall and how fast. >> we're going to have storm surge, wind, rain. we're going to have flooding. all of this together, and partings of it by itself are life-threating.

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broader headlines of high-profile shootings, presidential election and so forth. 62 cents a share adjusts versus 53 cents a share. sales were better than forecast. 207 million for smith & wesson, versus forecast of 19million dollars. that is better than a -- $98 million. they have expectations of tighter gun laws with all the politics and events sadly going on, are, will mean tighter gun legislation. back to you. melissa: lori, thank you so much for that report. david? david: meanwhile apple ceo tim cook is defending himself from a european commission ruling that apple owes $14.5 billion in back taxes because of the breaks its operating out of ireland, tax breaks that the european bureaucrats are calling quote, illegal.

here is steve moore, trump economic advisor and fox news contributor. steve, i am smiling because in some ways this is a guy, tim cook, who supports people that support globalism, the same kind of globalism that is calling for these tax increases, right? >> yeah, there is a little bit of irony here because tim cook is major and vocal supporter of hillary clinton who wants to raise taxes on businesses and, in fact, in the trump plan, we want to allow tim cook and apple to bring, you know, hundreds of millions of dollars, if not billions of dollars they have stored overseas back to the united states for a 10% penalty. let's get to the heart of the matter, david, what is this all about? basically extortion airy payment requirement by the eu. why are they doing this? why are they punishing panel and ireland charging 12 1/2% corporate tax rate, which you know, david, the lowest in the world.

eu does not want tax competition. they hate tax competition. they're penalizing any country has a low tax rate and any company dares to move there. the only way to sustain 25s 30% tax rates by punishing them. david: i have been to brussels and strasbourg where the bureaucrats hang out. >> i know you have. david: they know absolutely zero about business. they are bureaucrats born and bread. >> of course. david: and they are dictating tax policy for sovereign nations. this is what happens when you give up your sovereignty. focus first on globalism of hillary clinton, because she is for giving up some of our sovereignty to international bureaucrats on whole range of issues from legal issues to economic ones. this is what causes problems in this world, right? >> so funny, i'm writing a column on this very subject right now, and my point is that when it comes to globalization, you and i, david, are for a global economy. the idea that people can trade

and move across-border. david: correct. >> that's for sure. so we want a global economy. what we don't want and what the left wants is kind of a global government. david: right. >> when you get global government -- one of the most disciplining effects on government growth is competition between countries. look what happened in the 1980ss remember, when reagan cut our highest tax rate from 70 to 28%, what did the rest of the world have to do? they had to cut their rates. david: we're running out of time. i want to focus on one issue with the guy you're helping, he said he wants apple to manufacture all the iphones in the united states. you and i know that kind of restrictive policy for an independent company, particularly one that relies heavily on iphone sales, that would kill apple. has he changed his views on that or have you tried to? >> well, what i have told him, look, donald, i'm with you, i want as much stuff made in the united states but, and i want jebs for american workers.

the way to do that, not through tariffs or trade restrictions but fix the tax system so we're competitive place. we're one of the least competitive places. david: has he changed his policy because of your advice? >> i think he has. before we go, tell melissa i scream to high hell when i get stuck in middle seat on. i'm not going it anymore, melissa. no more middle seats. melissa: good for you. david: i don't know if american will let you back on. you may have flown the last time on american. melissa: they will not let him in middle seat. that is the way he likes it. government gone wild, employees at the department of defense racked up nearly $100,000 on government credit cards, at strip clubs. david: great. melissa: almost a million spent at casinos. this is new report. most shocking report, no one was held accountable for it because the spending was allowed. the report says the department of defense has less money available for work-related travel expenses and experienced

potential national security vulnerabilities. david: oh, lord. melissa: how did is that possible? that doesn't make any sense. david: when all of this is going on. we'll talk more about the military later in the hour. we have very fresh head-to-head presidential polls. very surprising new numbers you want to hear. some are saying these numbers have turned check stations for november on their head once again. donald trump speaking earlier in ohio today, once again pushing his immigration policies and standing strong, saying mexico, yes, will pay for that wall. >> we will treat everyone with dignity, respect and compassion. but our greatest compassion will be for the american citizen. [cheering]

david: donald trump speaking earlier today, doubling down on his plans to build the wall, along the border, and the fact that mexico will pay for it, despite mexican president kind

of saying otherwise. fox business's blake burman has latest details on all things donald trump. hi, blake. reporter: david, the day after donald trump and mexico's president enrique pena nieto held a private meeting and cordial press conference after words, there is international gamesmanship going on via twitter over who would pay for border wall. take you back to yesterday. remember trump had said payment for the wall was never discussed between the two. well the mexican government later said that simply was not true. fast forward to this morning. trump sent out a tweet saying that mexico would indeed pay pour the wall. then he repeated that very campaign promise during a rally in ohio. listen. >> don't worry, we're going do build that wall. that wall will go up. we're going to build the wall mexico's will pay for the wall. we'll stop drugs from coming in. [cheering]

we've got to stop the drugs from pouring into our states. reporter: however, in just the past hour or so here pena nieto retweeted trump and wrote back the following. this is the spanish translation, quoting here. i repeat what i personally told mr. trump. mexico will never pay for a wall. so there you have it, between the two, today. speaking of money, david, hillary clinton's campaign just announced a huge cash haul. they report raising $143 million, in august alone, for itself and the democratic party. clinton and joint committees they say now enter september, more importantly the last 68 days of this campaign with $152 million cash on hand. david: blake, it is kind of interesting, during the meeting between the president of mexico and donald trump, donald trump said in his presence, we didn't talk about the payment of the wall. the president didn't object when

donald trump said that. now he does. >> he didn't object, standing there, the mexican government tried to clean this up. the spokespeople afterwards, saying well, now you have the twitter back and forth. david: blake, we'll follow the story. melissa. melissa: let's bring in michael wild, former federal prosecutor and immigration law professor. i understand you have done some work for donald trump. you're not a supporter though. how come? >> i am a former federal prosecutor, mayor. my father started our practice. i'm a second generation immigration lawyer since 1960. we represent some of the finest companies and individuals and families in the world. mr. trump and his company, miss universe organization, when he owned it and trump models were clients and our clients of ours at this point. we don't represent miss universe. he no longer owns it. melissa: yeah. >> very smart on compliance, very smart on business you but his immigration plan i think, while -- melissa: why. >> may be strong, it not as smart. you need to have more than bandaids.

we already have an ineffective immigration system, if you would. putting up a wall is unrealistic, un-american, and really unpopular. in a country founded by immigrants we'll start deporting our neighbors. we need solutions this is fox business. we need entrepreneurs. immigrants will hire americans. there are so many systems in place, so much money already going into what is already a fledgling broken system. melissa: okay. i mean you have great experience with the fact that the system is broken. i mean i think that is where a lot of frustration on every side is coming from, from people who want to come to this country legally. for people who want other immigrant to come but want them to do it in legal way. he does make the point when we aren't patrolling our borders effectively and we aren't vetting people and screening people come in we're getting people fled over the border. >> good point, melissa.

can take certain nationals 20 years to come in. hallmark of immigration policy is family reunification. the tool that immigration is in our arsenal to make sure we stay the richest and best is not being affected. >> what is the best way to fix it though? how could you speed up the system? where do you see the most inefficiencies since you deal with it every day? >> canada, australia, they have point-based system. they recognize you don't have to fit into certain kind of puzzle in order to get status. you need streamlining for business needs. h1b visa was nod raised in mr. trump's portfolios. these are visas coming on f-visas we shoot ourselves into the feet not giving them entree into the workforce. from the cherry-picking, to blueberry picking in georgia to hospitality corridors in l.a. and new york, there isn't anybody not affected by magnificence, entrepreneurialism of immigration.

we shouldn't build walls only but build bridges. the argument of sanctuary cities, stop taking away tools, biblical straw from cities if they don't comply, job of federal government to come up with comprehensive immigration system. since 1952 we have bandaids effectively placed rather than new laws. melissa: everybody is frustrated. wish we had more time. >> pleasure, melissa. david: back to stocks, shares of lululemon getting crushed after-hours. second-quarter earnings came in line, revenue grew 14% the yoga wear company's third quarter expectations fell a little short of wall street's projections. a little short is enough to bring the stock down 8% after-hours. melissa: big move there. your tax dollars at work a-bomb shell new report revealing that your money helped fund hillary clinton's private email server. really? david: what? melissa: judge andrew napolitano is here to sound off on that one. david: wow. a secret loophole for iran.

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>> fight for the white house is getting pretty close to a dead-heat. hillary clinton's lead over donald trump shrinking as "fox news poll" finds democratic and republican nominee separated by six points. we have brad blakeman, former bush 43 senior staffer and richard goodstein, democratic strategist. brad, let me start with you, when you look head-to-head, hillary clinton lofted a point. trump gained three. what do you think helped him close the gap this week? >> i think he dominated the news cycle. hillary had bad news with the pay to play scandal still broiling. drips and drips and drips of bad news. trump with his trips, trip to the mexico, his immigration speech, week before that dom faith the news. hillary has been awol. would do and event and go back in her bunker. the fact we're seeing so much of donald trump and so much is positive, it is helping him in the polls. melissa: richard, not as close

when you look at head-to-head, when you add in the other candidates they're only two points apart. hillary clinton hasn't been out and about. maybe as brad said that is the thing that hurt her in the past week or so, except for that she has been raising a ton of money. that certainly helps in an election. >> you know, melissa i think you have put your finger on something which is, if i were a trump supporter i would be alarmed like three-alarm, alarmed, by news he had $10 million drop in nine states. excuse me -- melissa: he only spent $10 million? the. >> i'm say, a million dollars a state in a presidential campaign, why is he not spending 100 times that? we need to see his tax returns or not. if i was a supporter i would kind of scratch my head say, what is going on? does he want to win or not? if he did why is he only spending that? look, i think brad's got a

point, the polls are surely narrowing there is no question about that. i think there is threshold question, trump is having to deal with his fitness for office. melissa: brad, what about the idea, why isn't he spending more money? that is something people have been backing him have been asking for a while. he came to the game late with the ads. if you look at how much hillary clinton is hammering him spending money on ads, you wonder what is the deal with that. >> here is the converse to that argument. look at all the money hillary has spent. with all the money she has spent, like throwing your money out the window. it hasn't had any effect on trump. trump is spending less and competing against somebody who is spending more. so maybe it is not the amount of money you have, the way you spend it. and i agree sounds like low numbers, especially at $10 million ad buy in eight battle ground states. trump defied expectation each and every time. he is also dominating as we've seen in the polling, the fact that he has gotten more earned media than any candidate in the history of running for president.

melissa: a lot is negative. thanks, guys. appreciate your time. david: talk about earned media, an article in oh lit coalleging that bill clinton used millions of taxpayer dollars to help for expenses for the clinton foundation. he may have used these funds, at least part of them to pay for the private email server that caused hillary clinton so much trouble. joining me by phone, judge andrew napolitano, fox news senior judicial analyst. judge, first of all, explain to folks, in addition to his pension, the ex-president of the united states is entitled to money. he pulled $16 million from this fund. it is called former president's fund. what is this? >> it is a fund established by congress which has some barriers to it but it is flexible. basically an open-ended accounts former presidents can use. all of the former presidents in your lifetime and mine subject to this, which is eisenhower up

to the the present, have taken advantage of that. ronald reagan did. george w. does. david: not to this extent, correct me if i'm wrong, nobody has come nowhere near $16 million. >> you're right. the numbers are extraordinarily as it sounds. it is not legally scandalous. the only thing would be unlawful if the federal dollars went into mrs. clinton's campaign or some other inappropriate or unlawful purpose. david: talk about the clinton foundation. turns out 13 of 22 staff members of the clinton foundation were being paid in part at least by this fund. that's not illegal? taxpayers paying for president's own personal foundation? >> well, the money can be used for any purpose that is not expressly prohibited by law. david: okay. >> so he could use that money for personal trainers or for

limousine drivers, if he didn't want the secret service to drive him. david: amazing. by the way, this money was coming in exactly when they were making tens of millions of dollars. not like they needed it. let me quickly get bill clinton's response to all this in. we can put it up on the screen. this is according to a clinton spokesperson. no gsa funding was ever used for a private email server, anywhere. and clinton foundation never housed a gsa-funded email server, private or otherwise. sounds a lot to me like i never had sex with that woman, never. but the point is they claimed no way any of this money was used to pay for hillary's private email server. on the other hand money is fungible, right? >> money is fungible. as you know from the fbi revelations mrs. clinton used four servers, the first of which came from the foundation. so that, not only may not be

true, it may be an outright lie, and it's highly misleading. is it unlawful? david, will take another fbi investigation to find out whether or not it is unlawful. i don't think the government has the stomach for that under this administration. david: stay tuned. judge andrew napolitano, great to see you. thanks for joining us. all the best. melissa. melissa: new allegations of backdoor dealings with iran, united states and world leaders agreeing to give tehran a secret loophole in last year's nuclear deal. this is according to a new report for the institute of science and international security. fox news's james rosen is at the state department with the latest on this one. boy, we suspected this sort of thing was going on. now we know for sure, right, james? reporter: not sure we know for sure. there's been some strong pushback, melissa, from the state department today to this think tank report alleging u.s. and its allies granted several exemptions that effectively allowed iran to collect billions of sanctions relief without meeting terms of the landmark nuclear deal reached last year.

david albright, reknowned iraq weapons inspector and nuclear analyst who heads the institute for science and international security, issued a report first disclosed by reuters alleging that the joint commission established to oversee implementation of the nuclear deal, a group comprised iran, u.s. and five other nations that negotiated the deal has been secretly weakening language related to caps on the regime stockpiles of low and enriched-uranium. its operation of so-called hot cells which can be used to develop nuclear grade plutonium and storage of heavy water, another step in plutonium development. the exemption process has been overly secret and amounts to additional secret or confidential arrangements linked to the nuclear deal that do not have act quad oversight and scrutiny albright and a colleague write. adding the process in general raises the question whether iran is exploiting the exemption mechanism without side of any public oversight to systematically weaken as many of the deal's limit takes as possible.

it aptears to be succeeding in several key areas, unquote. spokesman for secretary of state john kerry said a few minutes ago iran's requirements under the joint plan of action. jcpoa, that is the formnal maim, have not been changed and the goalposts have not been moved. >> i also would assert the joint commission has not and will not loosen any of the commitments, and has not provided any exceptions that would allow iran to obtain or process excess material in excess of jcpoa limits in a breakout scenario. reporter: john kirby kept repeating that caveat. iran is not allowed to develop any additional nuclear materielh breakout. some in the briefing thought he was leaving a little wiggle room. these exemptions might be granted iran can produce additional material but not immediately material use it for a mad dash breakout toward a nuclear weapon.

melissa. melissa: author of the that report, former inspector for international atomic energy agency. a lot of ifs there. james, thank you. >> you bet. david: bad news for elon musk. a massive explosion at cape canaveral. a spacex rocket destroyed nearly routine testing. >> wow, look at that. david: the satellite was destroyed as well. what caused the blast coming up. florida bracing for a life-threatening storm, breaking details on the strength of the hurricane coming up next. it's scary when the lights go out. people get anxious and my office gets flooded with calls. so many things can go wrong. it's my worst nightmare. every second that power is out, my city's at risk. siemens digital grid manages and reroutes power, so service can be restored within seconds. priority number one is keeping those lights on. it takes ingenuity to defeat the monsters that live in the dark.

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melissa: hurricanes threatening the u.s. tropical storm madeline passing south of hawaii's big island and hurricane lester not far behind. meanwhile florida's gulf coast is breaking, bracing, sorry for direct impact from hurricane hermine. it will be the first hurricane to hit the state in 11 years. fox news's chief meteorologist

rick reichmuth in the weather center. you have your hands full today, my friend. break it down. >> it's a busy night for so many people across the southeast. see here the red, we have hurricane warnings, just which is of apalachicola and cedar key. primeair r area of big bend of florida. anywhere to the right where it makes landfall you have storm surge. it will pile up in and across the big bend. most of the weather is on the eastern side of the center storm. that is where florida is. a lot of places getting really significant amounts of rain. we'll see tornadoes tonight. we have tornado watch tonight until 11:00. that will being extended threw through the overnight hours. through the florida panhandle needs to watch that we could be watching for tornadoes. really strong winds, the center of the storm, one model we have

showing it making landfall around apalachicola. if it tracks far to the east and spreads more over water and makes landfall. 10:00 to 2:00 in the morning is the bull's-eye. apalachicola may be in the center. tallahassee, winds potentially gusting 70 to 80 miles per hour as well. we'llsee massive area of pouter outages. one thing that sticks with us, carolinas friday and saturday. this weekend we could have a big weather-maker stalls out parts of the northeast. could deal with it for days and days. a problem for the beaches. melissa: sounds terrible. thank you for that, rick. see you later. david: batten down the hatches. another devastating setback for elon musk's spacex. shockwaves felt for miles after a massive rocket explosion at the launch site. deirdre, he got hit three times, tesla, spacex and had trouble

for solarcity as well. this is a big explosion. >> you're right, david, hit three times today, elon musk and twice this year as far as these rockets are concerned. remember this back in june, he was trying to send the same kind of rocket. so a falcon 9, up to refuel, send supplies up to the international space station. that blew up as well. so it is just a rocky road, if you like getting to outer space. dave, look at the cost of this falcon 9. it is at $60 million. the payload that was attached as well was 200 million. so that essentially was a satellite that facebook was going to use so that people in subis sub-saharan africa and other parts of the unconnected world could use facebook. so that was destroyed. so basically you just saw on your screens $260 million go up in flames. you mentioned the aftershocks. it was felt at a five mile radius. so elon musk tweeting out throughout the day, saying

updates, still looking for the cause. want you to know no one was hurt. david: good. >> this was during a test. they fired up the engines to he see if it would work. that happened. thank goodness no one hurt. david: thank goodness no one hurt, but his pride sure was. deirdre, thank you very much. we'll see you at top of the hour for risk and rewarded. do not miss deirdre. vowing to rebuild the military. why a donald trump economy may lead to stronger u.s. soldiers. >> these next four years, i will be uncompromising in the defense of the united states. and our friends and our good allies.

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will that he will strengthen the u.s. military. >> we will build our depleted military. we will make sure our soldiers, airmen, sailors and marines have the best equipment, training, tools, anywhere in the world, nobody will be able to compete with us. david: lt. general thomas mcinerney thinks this will require major changes in economic policy. trump is the man for the job. fox news military analyst joins me now. general, great to see you. what does the military need most right now? is it personnel or is it equipment? >> well it is a combination of both. their force structure is too small, david and their equipment is aging and obsolete in many cases now. so they need to do both. they're at what we call in the fighter business a square corner, and only way you can do that, is throw money at it, and we have unilaterally disarmed. so i have laid out a six-point program how we have to build our

economy first, like kennedy and reagan did to get monies we can put in defense. because we need to go to 4% of the gross domestic product into defense. and we are in sad shape. david: unfortunately, very often, when money is spent in large amounts, it is wasted. that is one of the things that gives people a little pause here. they're all for a strong military but they don't want just throw money at a problem and hope that it is fixed that way. >> that is a very good point. for example, when we developed the f 15 and the f1from the time it -- f 16, it was two years. on f-22 or f-35 it is 10 years. we have too much bureaucracy in the acquisition system that goes directly to what your question is. we have too much money going into support when it ought to be going into force structure and into people. david: there is one thing that is clogging up in terms of the bureaucracy, clogging up the

works is political correctness. i get word from a lot of folks in the military that there are so many new rules now because we have a commander-in-chief loving this idea of making the military more politically correct, they're looking at those rules, rather than just military preparedness. is that a problem? >> it's a huge problem. it is driving people out of the military. i had lunch today with a four-star general and i can't name his name but he is intimately familiar with it. he is retired. he was telling me what he is getting and it is driving some of our top-notch fighter pilots out of the business. there is too many things on social problems, that shouldn't even be in the military. and we're going to have major impact and mr. trump's going to have to fix that. david: so donald trump has talked about it or you or other military people have talked to him about it? >> well, let me put it this way. a lot of military people are talking about it.

he will meet a lot of generals on the 3rd of october in d.c. area. i assure you that is up at the top of the list, that they're going to say, get us out of socializing and social programs. get us back into the war-fighting business. we can take isis down very quickly, for instance, if he will change the rules of engagement. david: lt. general mcinerney. great to see you again, general. thanks for coming in. appreciate it. >> thanks, david. david: delivering results. why pizza could actually abettor motivational tool than cold, hard cash. details coming up. i'm claudine and i quit smoking with chantix.

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david: new research proving that pizza is at better stimulus for hard work that extra money for a back patting from the boss. boys were split up into four groups and one was promised peace and another 25-dollar post

bonus and a third complement from the boss in the last group received nothing at all and yes pizza was the top motivators. productivity increased by 6.7% compared to the control group. that does it for us, or risk and reward starts right now. deirdre: an explosive new report by "politico" shows the setup for hillary clinton's private e-mail server was funded by taxpayer dollars. this is -- thousands that he pages of newly uncovered records reveal that president bill clinton used $16 million in taxpayer dollars, the foundation salaries and private e-mail support so the money was allowed to be set aside by a decades-old federal government program. it was signed by law to keep president out of poverty. former president bill clinton drew more cash from that fund than any other president.