sponsor of radical islamic terrorism on a path to nuclear weapons and that path will go very quickly. this is hillary clinton's foreign-policy legacy. failure and death but that is not all. president obama and hillary clinton have also overseen deep cuts in our military which only invite more aggression. we will have aggression like you have never seen before and you have it already happening. our adversaries are jumping at the bit. history shows when america is not prepared is when the danger is by far the greatest. we want to avoid and prevent conflict through unquestioned military strength, we have the greatest people in the world. [applause]

>> under barack obama and hillary clinton defense spending is on track to fall to its lowest level as a share of the economy since the end of world war ii. we currently have the smallest army since 1940. the navy is among the smallest it has been since 1915. it is 100 years ago. the air force is the smallest it has been since 1947. when ronald reagan left office the navy had 592 ships. when barack obama took office it had 285 ships. today, the navy has just 276 ships. the average air force aircraft is 27 years old.

we have second-generation b-52 bombers their fathers. the same plane they are flying right now. this is not the united states. our army has been shrinking rapidly. from 553,000 soldiers in 2009 to 479,000 soldiers today. some decrease. you want to make it smaller. in 2009 our marine corps had 202,000 active marines. today it is 182,000. our ship count is below the minimum of 308 that the navy says is needed to execute its current michigans at a minimal level. president obama plans to reduce the army to 450,000 troops which would hamstring our ability to defend the united states. it takes 22 years on average for

a major new weapon system. in 2010 the united states spent $554 billion for non-war base defense spending. in the year, i have to say, currently, we are spending 548 alien dollars, that number is going down very rapidly, looking into the future. unless i become your president. [applause] >> this reduction was done through what is known as sequester or automatic defense budget cuts. under the budget agreement defense took half of the cuts even though it makes up only 16 of the budget so they put it all in defense. as soon as i take congress i

will ask them to eliminate the defense sequester and the new budget to rebuild our military. it is so depleted. we will rebuild our military. [applause] this will increase certainty in the defense community as to funding and allow military leaders to plan for our future defense needs and most importantly we will be defended because without defense we don't have a country. >> as part of moving the defense sequester i will ask congress to offset the cost of increased military spending. in the process we will make government leaner and more responsive to the public. [applause]

>> i will ask that savings be accomplished through commonsense reforms that illuminate government waste and budget gimmicks and protect, absolutely protect hard-earned benefits for americans, governmentwide, proper government payments are estimated to receive $135 billion per year in the amount of unpaid taxes is estimated to be as high as $385 billion a year. we can also reduce the size of the federal bureaucracy through responsible workforce attrition. [applause] that is when employees retire they can be replaced by a smaller number of new employees. that is the best way to do it. we can stop funding programs that are not authorized, congress spent $320 billion last

year on 256 expired laws, laws that are gone. spent all of that money. removing just 5% of that will reduce spending by $200 billion over a 10-year period. the military will not be exempt either. and military bureaucracy will have to be trimmed down. we have to create that strength, sometimes we have to reduce bureaucracy. it just gets in our way. [applause] >> early in my term, i will be requesting all nato nations promptly pay their bills which they are not now doing. [applause] >> only five nato countries including the united states are meeting their minimum

requirement to spend 2% of gdp on defense, they understand it, they know they have to do it and they can afford to do it and have no respect for our leadership, no respect for our country, they will do it and be happy to do it, they will be happy to do it. [applause] >> additionally, i will be, respectfully asking countries such as germany, japan, south korea, saudi arabia, to pay more for the tremendous security we provide them. [applause] >> and they will fully understand. they are economic behemoths, tremendously successful countries but we are subsidizing them for billions and billions of dollars. i think they will fully understand. finally we will have additional

revenue from unleashing american energy. the institute for energy research sites a figure of as much as $36 billion annually from increased energy production. [applause] >> tremendous numbers of jobs and tremendous amounts of money and your electric bills will go down. [applause] >> using these new funds i will ask my secretary of defense to propose a new defense budget to meet the following long-term goals. we will build an active army of 540,000, as the army's chief of staff has said, he needs desperately and must have to

protect our country. [applause] >> we have 31 brigade combat teams, 490,000 troops and only one third of combat teams are considered combat ready. that is not good. i don't like saying it because plenty of countries are watching us but we get it shaped up very quickly. [applause] >> we build a marine corps based on 36 battalions the heritage foundation notes is the minimum needed to deal with major contingencies. right now we only have 23. we will bill the navy of 350 surface ships and submarines as recommended by the bipartisan

national defense panel. we have 276 ships and that is not enough. and 200,000 fighter aircraft the heritage foundation has shown to be needed to execute current missions, they are not enough. they seek to develop state of the art missile defense system. >> under obama/clinton, ballistic missile defense capability, degraded at the moment in the united states history and its allies, facing the strongest, most heightened missile threat we have ever, look at iran, north korea,

terrorists, we don't know where to look, we can look all over so we are going to do that. we need a form of shield, we want to protect our country. [applause] >> these potential adversaries grow their programs, us military facilities in asia and the middle east as well as our allies increasingly in range with the united states homeland, and we are absolutely and potentially being threatened and within two years we will absolutely maintain a threat. they will be able to reach us the way it is going right now.

we propose to rebuild key tools of missile defense, starting with navy cruisers that are the foundation of the missile defense in europe and the middle east, the obama/clinton administration tried repeatedly to remove our cruisers from service and refuse to modernize these old, aging ships. they are old, they are tired. we start by modernizing the ballistic missile defense capability the nation needs. this will cost $220 million per modernization as we seek to modernize a significant portion of these 22 ships. it will also mean jobs for our country, jobs for our country. [applause] >> that is one of the big benefits. it is called jobs for our country which we desperately

need. as we expand our navy toward the goal -- we will procure additional modern destroyers to handle the missile defense in the coming years. and a 50 state -- every state in the union will take part in rebuilding our military and developing technology of tomorrow. the workers and jobs in the united states. [applause] >> in addition, we will improve the department of defense's cybercapabilities. a new threat, a new problem, very expensive and we are not doing very well. hillary clinton has taught is really how vulnerable we are in

cyberhacking. [applause] >> that is probably the only thing we learned from hillary clinton. which is why one of the first things we must do is enforce all classification and work -- enforce all laws related to the handling of classified information. [applause] >> hillary clinton put her emails on a secret server nobody knew about except the man who was given the fifth. remember? whatever happened to him? where did he go? he pled the fifth. that is the end of him.

i i i. [applause] >> she put her emails on a secret server to cover up her pay for play scandals in the state department. nothing threatens the integrity of our democracy more than when government officials put their public office up for sale. we will also. [applause] >> we will also make it a priority to develop offense and defense of cybercapabilities at us cybercommand and recruit the best and brightest americans. [applause] >> one of my first directives after taking office will be the joint chiefs of staff and all relevant federal departments to

conduct a thorough review of the united states cyberdefenses and identify all vulnerabilities and we have to do that immediately including through our power grid, communication system and all vital infrastructure. [applause] >> i will then ask for a plan to immediately protect those vulnerabilities and then fix them. at the same time. [applause] >> at the same time we will invest heavily in offense of cybercapabilities to disrupt our enemies including terrorists who rely heavily on internet communications. [applause] >> isis is using the internet to recruit. isis is using the internet to

intercept and do all sorts of things to our country. we have to be many steps ahead of them and we will be. [applause] >> these new investments and fibers of the security of the modernization of the military will spur substantial new job creation in the private sector and help create the jobs and technologies of tomorrow. america must be the world's dominant technological powerhouse of the 21st century. young americans including in our inner cities should get these new jobs through training, education, it will happen. [applause] >> we must also ensure that we have the best medical care, education and support for our military service members and

their families, both when they serve and when they return to civilian life. [applause] >> our veterans are not being treated well. our veterans in many cases are treated worse than illegal immigrants, people that come into our country illegally, our veterans are not being treated well and hillary clinton has been doing this for 35 years, now she says she can do it, she doesn't have a clue, doesn't have a clue. [applause] >> our debt to our men and women in uniform is eternal, always will be. to all of those who have served this nation, i say stow strongly that i will never ever let you

down. [applause] >> we will protect those who protect us, very simple, we will protect those who protect us. and we will follow their example of unity. we will work across all racial and income lines to create one american nation. [applause] >> together we will have one great american future. our potential is unlimited. we will be one people under one god saluting one american flag.

[applause] >> by the way, we love our flag. [applause] >> america will be a prosperous, generous, and inclusive society. we will discard the failed policies and division of the past and embrace true american change to rebuild our economy, rebuild our inner cities, they need help so desperately, and rebuild our country. we will bring back our jobs and

we will not let our jobs go to other countries. [applause] >> we will make america strong again. we will make america safe again. and we will make america great again, greater than ever before. thank you very much and god bless you, thank you. thank you very much. neil: you have been hearing donald trump. i am neil cavuto, you are watching "cavuto". "cavuto coast to coast". he will have a different tone and tenor speaking to the military. he will be from defense spending, democrats are arguing we are spending more than we need on defense and it eclipses

what leading countries are spending combined over -- it is high time we put our priorities in the right places and commit a plan to deal with all the various elements across the globe including isis am a defeating and destroying isis once and for all. mister trump says he is giving 30 days to come up with a plan to finish them off once and for all. a former u.s. army helicopter pilot, and the other details here, he is essentially saying, you know this better than i, it is high time we start looking at how much we are committing and where we are committing when it comes to defense. >> it was commander-in-chief material, a leader who recognizes we need to rebuild our military that has been slashed for the past eight years. we are seeing a military that is forced to do more with less putting our military at risk,

national security at risk at higher levels so of all the proposals donald trump outlined, i think we are much-needed change for what we have seen for the past eight years. neil: a lot of accounting nerds, the issue is not the $600 billion defense budget but how we prioritize and before we commit to increasing it we should look at how much we are wasting, what do you think of that? >> i completely agree. there is room for defense spending reform and top of the list is acquisition and how we are getting from military weapons systems to different equipment that i needed throughout our military. it is a big problem and a lot of ways when it comes to acquisition, so many layers of bureaucracy but it will take a

large overhaul, people really looking into those government contracts and figuring out the waste and making sure the equipment the military is receiving is what people fighting these wars on the ground, and not just what defense lobbying firms are trying to get through, a couple hundred million dollars defense contract which is looked into. we can spend a lot of money there but also talking about these civilian federal forces, civilians that work inside the pentagon. it is too big from what it needs to be, those numbers could get cut as well. neil: it might seem arcane at issues on capitol hill, the measures in place call for a ceiling on defense spending.

react to this, donald trump on the sequester. >> i will ask congress to eliminate the defense request and submit a new budget to rebuild our military. it is so depleted. we will rebuild our military. >> if your hearing that, i used to call that the backup backbone for those who had no fiscal resolve to rein in spending, take that away, perfectly valid reason, democrats are going to say we feel the same way about entitlements or other domestic budget priorities and then it will lead to runaway spending that isn't runaway enough and it will compound our fiscal problems. >> i agree with donald trump's sequestration, has to go away, national security has to come first. without a strong defense we don't get to worry about the other entitlement policies and

everything else you mentioned. sequestration backfired. the only thing it hurt was our military members and their families and our national security. sequestration needs to go away but there needs to be reform across the board in terms of entitlement spending that we have on the other side as well. neil: he raised an interesting -- he wonts a standing active army of 540,000. can he do that? >> absolutely. it is going to take a strategy on the military's part. what we saw after 9/11 when we needed to reduce our numbers, they give bonuses. they say sign up for the military, you are going to get all sorts of different bonuses for joining in terms of actual

cash incentives, and different options with the military, the g.i. bill, certain college payback and different options benefit join the military so if they are looking to up the numbers they are going to have to push some of those bonuses but as we have seen since afghanistan and iraq we have been at war for 15 years and our all volunteer force has done multiple multiple deployments, back-to-back deployments the hard on families and hard on service members. we can do it without a draft, absolutely, no question. the all volunteer force has been absolutely amazing. doing so back to back. the strategy will change. neil: thank you very much. sorry for the delay in getting to you. >> great to see you.

neil: to follow up on this, you can call me the nerd, i tend to look at green, how we pay for all this. the defense spending, like hillary clinton's plan to offer free tuition to kids sounds great but you have to pick apart the numbers and understand how we pay for it. we are getting more news, the $400 million in cash, as those hostages are released by iran, we got word of another $1.3 billion in cash raising questions. the catch part of it, the sopranos feel to it has people asking questions and apple has a big brand announcement but is the new phone that big a deal for is it centered not so much on what is happening this fall but next fall?

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just a few moments ago talking about the latest figure, $1.3 billion paid to the iranians. some say it's ransom to get those hostages out earlier this year. the administration says that is not the case. they said when it was $400 million and we discovered there was another $1.3 billion more in cash that was taken aside so the total figure is more like that's a lot of money, period, but a lot in cash. folks tend to pay people in cash to avoid problems and taxes and that sort of thing or embarrassments. what's going on here? the former arkansas governor presidential candidate mike huckabee. governor, is this ransom? >> first of all, neil, welcome back. it's good to see you, my friend. neil: thank you. >> to get to the point of your question, this is so outrageous that we paid them anything. if you're a business person in

america and you do a $10,000 cash transaction, the irs wants to investigate you and the banks have to turn you over. this was a money laundering operation. but let's not forget it was a money laundering operation that gave cold cash to a bunch of terrorists. iran is the number one terrorist state in the world, and they sponsor hamas and hezbollah, kidnapped and killed americans. here's what we should have done and should have told iran and the hague, if you want that money, you can go straight to hell and see if you can get it. you're not getting a dime out of the united states of america in light of all the people that you have killed and terrorized over the time since have you taken over the country. neil: you know, governor, interesting, reading the details on this, it started with that plane with $400 million in cash that was sent to iran in january. two more shipments over the next 19 days, totaling additional $1.3 billion, what

was sent. i'm beginning to wonder, they call that, the administration, used as leverage, not ransom. what's the distinction? >> they can call it whatever they want to, it's ransom. they paid money and we got hostages back, but what's so tragic about it is that if we've been half the country we once were, we would never have kowtowed to tin pot dictator like they have in iran. the nuclear deal, what a disaster. when i think about the money, the almost $2 billion we've paid to the iranians and how many of our own veterans could have been helped at the va had the money been pumped toward keeping us free, instead we're giving it to people who have a gun aimed at our head? what kind of idiots run this country right now? it justifies any sense that can

be conjured up. it's beyond me, neil. neil: when i'm looking at this as well, the argument for this money, the cash part of it now was this was all money due iran anyway, it's part of this agreement that we had, the nuclear agreement. a longtime critic of that. they're saying this is really not ransom. this is money coming to them, we wrote off both countries on this deal. obviously, we wanted these hostages out so it looks like a quid pro quo, they were going to get the money anyway. if they were going to come out of there faster by giving them the money, you know, up-front, that's not ransom, that's just committing a little ahead of time to the deal. i'm just trying to give you their argument, you say what? >> well, what they somehow are missing is that the government with which this deal was done was the government of the shah toppled by the revolutionaries.

this is not a deal we made with the revolutionaries of iran that kidnapped americans and held them hostage for over a years, and since that time 46 year, 47 years since that time, killed americans, kidnapped americans, financed terrorism that killed americans and killed american soldiers, that has terrorized israel, upended the middle east and rapidly working toward a nuclear device, and it's not for defensive purposes. so for us to pretend that somehow it's the same government and we owe them the money, that's nonsense. that government went out of business, and the government that has come into power is a government that tramples over its citizens and kills 22-year-old women in streets and let's blood run down the sidewalk as a reminder that nobody ever raise a hand against this government again. neil: quickly, donald trump becomes president, that were to happen and he shelves this deal, what would you think of that and some who have said,

like it or not, if america gets into the habit of scrapping deals, it can't be counted on or relied onto make any deal, you say what? >> well, i think we're obligated to the deals that we made with governments that existed when that government ceases to exist, and some terrorist group comes in, it's like saying i made a deal to buy a buick from a neighbor of mine, someone came in, burned the house down, stole his car and wants me to pay for the buick that doesn't even exist. i'd tell them where to go. i'm not going to honor that. that's not a deal. i think anybody who's running the state department or the white house and thinks that's the kind of deal we got to make? i tell you where we made a deal. we made a deal with american soldiers and marines and airmen if they serve this country, by god when they came back home, we'd take care of them. that's the deal we need to be keeping with the money that

american taxpayers have paid. not the ridiculous nonsense with the iranians who don't deserve a dime of american money. neil: governor huckabee, thank you, good seeing you again. >> good to see you, neil. welcome back. neil: thank you. all right, as the governor was speaking, news out of the federal reserve one of the voting members of the so-called open market committee and he was telling bn regarding a rate hike, quote, i don't see what would hold us back, a slower-than-expected, weaker than expected unemployment report for the month of august that the plan to raise interest rates as soon as this month may have been put back. mr. lacker is considered a quasi hawk, this might put that on the front burner. he hardly speaks for the majority. nothing has changed in my eyes, a rate hike is very much in the equation. by the way, despite what donald trump is outlining militarily a

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. neil: all right, for those of you just waiting for tiger woods to return to the greens. we're getting word the golfer is announcing comeback hopes to play yet again to the safe way open. i did not know they sponsor the open. but it does. october 13th in napa. woods has not been playing on a regular basis since august 23rd of last year, i swear when it i was last in florida i spotted him at miniature golf places. [laughter] that's not true at all. it's a bad joke. he's going to give it another stab. we'll see what happened. you heard donald trump is laying out military plans. when i was with mark cuban yesterday, he was laying out

something else that military, or not, it's donald trump and the prospect of his very possibly winning the presidency of the united states that is unnerving markets. take a listen. >> are you worried after a pretty quiet august, you're a pretty good investor, that we're in for a rocky fall. >> i have my trump hedge on. in the event donald wins, i have no doubt in my mind the market tanks, and so i literally have put on a more than 100% hedge that i'll put on a stronger if it looks like there's a better chance as we go forward. neil: all right, so what the billionaire investor and owner is saying, this guy wins, markets tank. joining me is emily, i begin with you, what do you think of that just on the sheer uncertainty of a trump presidency, the knee-jerk reaction will be investors sell, a lot. >> you know, donald trump is

largely seen as unpredictable and unstable and the two qualities are never good for the markets. so i'm not surprised that mark cuban is make those predictions and he's not the only one. neil: didn't they say that about ronald reagan. he was like a cowboy, they were afraid his big tax cut plan were going to bust washington and all that? turned out okay? >> what's interesting is reagan's top economic advisers have criticized trump and refused to endorse him. martin feldstein said he's known several presidents and they all have a deep understanding of economics and international affairs and donald trump quote does not have that understanding and doesn't seem concerned about it. neil: gary, what do you make of that? you are concerned about the markets for reasons having nothing to do with donald trump, but just on that notion? >> look, neil, we have $20 trillion of debt, massive deficits, leverage and debt in a system more than 08 and

bubbles all around the globe induced by central banks and people say donald trump is going to create a financial crisis? whatever financial crisis we're going to have is already in the system had, nothing to do with donald trump, and by the way, economic policywise, hillary clinton wants to take $2 trillion out of the economy and put it into washington, d.c.'s hands, trump wants you to keep more of that money. i vote for trump on this one. i'm sorry. neil: again, i don't want to make this about political leanings here, but the fall is typically a time we've seen sell-offs, whether we're talking about 2008, and i could go back to the '87 crash, '89, '97, with the problems in latin america, the russian devaluation in 1998. i could go back to 1929. the fall has seen some of the more memorable crashes, corrections, whatever you want to call them. so why should we attach this to one guy coming into office when there seems to be a quasi pattern to this?

>> look, it's true that who we elect as president will not necessarily have a massive effect on the economy, for better or worse, but i think it's indisputable there are serious concerns about trump's stability here and abroad that could have a significant effect on our economy. this is his reputation. the people who love him kind of have a let trump be trump attitude and accept he's all over the place, that's not good for an economy, and i see there is potential. i agree with mark cuban. neil: quick, gary, quick thought where we're going from here in general? >> look, the valuations of the market are the upper ends historically and earnings and sales growth are going down, but you have central banks, maniacally printing trillions and trillions buffering the market. 2017 is going to get interesting because you just can't keep going up while things areding had down economically. neil: i want to thank you, both. interesting stuff, people will

be watching all of this closely in the fall. in the meantime, you got all these polls that show gary johnson is gaining more support, but would it be enough support to eclipse the 15% he's going to need to participate in the debates. pretty good debater. he gets to the stage, it could be a game-changer, if he doesn't, what then? the big apple event, going to announce a new phone. we're told it's got some adjustments, maybe a better camera. the whole thing seems stupid to me, but we're on top of it because they're marketing this as the second coming, and i don't know, i've seen some of the prospects, and i don't know. i'm just saying, i don't know, but i'm medicated, all right? more after this.

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. neil: all right, i told you so, america. it appears now amazon has confirmed the iphone 7 ahead of its release. this is going to get somebody fired. but it's featured on its website. various accessories, including wireless, what are they, ralph? wireless earphones, which would of course let you know they've gone the away with that. the plug-in for the devices, that's gone. so someone in amazon is in a heap of trouble, and i lept at the opportunity to remind you. all this on a day they are introducing the iphone. that's the feature, that it will not have a plug-in for the devices, separately you need a bluetooth-type device and maybe have a cool camera, but really? anyway. all right, have you looked at the polls for gary johnson? you know, they say it's going

nowhere, say it won't make the debates, i hasten to add if you're a student of history, they used to say the same kind of thing about a guy named ross perot and john anderson polling in the single digits, later got well into the double digits and the governor's case, very, very close to that right now. so who knows? in the next few weeks, may be able to parlay that to a seat at the main stage. with me now libertarian candidate governor johnson. good to see you, sir? >> neil, great to be with you. "washington post" yesterday, 13%. 42 states at 10%+. 15 states at 15%+. 16 states at 19%+. neil: you need 15% to make the debates and you're at 8.1 as a national real clear average and that has moved up, but have to effectively double, that you

think you can? >> i think it's more like 13%, and yes, because we're speaking on -- neil: average of all the polls. >> yes. neil: and they're going to use that average. >> the five polls that they say they're going to cite we're at 10% consensus on the five polls, but you know, we are representative of most americans, fiscally conservative, socially inclusive and skeptical regarding military interventions, skeptical when it comes to supporting regime change. neil: what do you think of donald trump's military commitment of more military spending, didn't exactly outline how much more but a lot. >> well, when the pentagon -- first of all, we should have impenetrable and invincible national defense, but among active military personnel, i'm pulling the highest for president among active military personnel. neil: isn't that a problem,

governor, for any independent candidate, and you have impeccable credentials, no denying it. you cannot treat it, even the days of ross perot when he left, you always treated like a rodney dangerfield. >> you are right, right. neil: and can't get the respect on the debate stage. if you don't make the debate stage, it's over? >> there's no way to win without being on the debate stage. they're not going to close it off at the first debate. neil: right, you could make the second or the third. >> back to the military spending, the pentagon itself, if you remember the brack commission in the mid 90s, 24% more u.s. bases could be closed. reinstituting brack and closing the 25% bases. look, we need to be smart about this but throwing money at in this case, the military, donald trump, well, that's going to bust the budget. he and hillary both have their heads in the sand over the entitlements, medicaid and

medicare, and it's a fiscal cliff we're headed toward unless we address the issues. neil: unless you have the states to do it. thank you very much. i lost my opportunity to ask him about what he makes about the apple phone. there's nothing new here. >> i'll probably get a new one. neil: really? >> every iteration has its benefits. after this.

. neil: well, the western world has come to a complete halt right now, awaiting news out of apple and the latest iphone incarnation. to some, maybe more an evolution than revolution, robert gray is at the event going on in california as we speak. hey, robert. >> reporter: hey, neil, good to see you again. and listen, it is about to unfold in just a few moments in the building just behind us. our producers are inside saying it is packed. we have the top management there ready to go to unveil what we're expecting to see the iphone 7, worst kept secret as

you mentioned moments ago, amazon believes the new phone is not going to look a whole lot different than the iphone 6 and not expecting big changes until next year. the 10th anniversary. interesting to see how this plays in terms of sales going forward here. of course, the iphone jack, the headphone jack was missing on the page in amazon, that is widely reported and anticipated it will disappear, you will plug your headphones into the charger port or perhaps use bluetooth as you mentioned, apple does own beats, which is a headphones company and other accessories, interesting to see what they have to say about that. this would allow for stereo speakers, more waterproof phone and boosting the beats and the accessory there, and improved camera, the title was see you on the 7th. wait and see what they say about that. it did look like two lenses on the camera from the pictures, the screen grabs off of the amazon.com page.

we'll know in a little while here. more memory and what we want is an improved battery life. and take a quick look, a graphic that shows how important this is to apple. if you look, the revenue continues to grow as a percentage of apple's overall revenue. what we're seeing now is starting to see a decline and people knowing that new and improved model, the revolution if you will, neil, to borrow your phrase could be coming next year. could this crimp revenue going in? we'll have to see how investors take to the news coming up this hour. we'll have live reports for you. neil: robert, thank you very much. in the meantime, talk about a day announcing donald trump unveiling details what he wants to do with the military, wants to give it a lot more respect and maybe a lot more money. blake burman has the details on that. >> reporter: good to talk to you once again. donald trump wrapped up his speech a little while ago, he talked about the expansion and modernization of the military and where he sees it going forward.

give you a couple of examples. the need to increase active members within the army. he said he wants to expand the marine corps, build more surface ships and submarines, more airpower for the air force. and talked about a state of the art missile defense system, in the immediate days of his presidency, keep in mind, all of this is wrapped around what to do with isis and the fight there? trump said he would call on his topgenerals to give him a plan on just how to defeat isis. here is trump from a little while ago. >> immediately after taking office, i will ask my generals to present to me a plan within 30 days to defeat and destroy isis. we will show the whole world how proud we are to be americans. >> reporter: neil, trump said he would fully offset the sequester, end the sequester and offset it which leads to the question, how are you going to pay for all of this? he did tick down a few

different examples. he called for commonsense reform and cut down on bureaucracy including from the state department. he would call on other countries to spend more, nato countries, allies would have to pay more for security, he talked about germany, south korea, saudi arabia, couple others as well. the critics will undoubtedly jump in and say it's not possible, not feasible and point to his tax cut which his own campaign admits costs in the area of $3 trillion over ten years. neil? neil: blake, thank you very much. bobby jindal, former presidential candidate, two term governor for the state of louisiana. governor, good to have you. >> neil, great to be back. before we talk about anything unimportant like the presidential race or donald trump or hillary clinton, it is great to see you back. i'm thrilled to see you healthy and back on the air. if i speak for viewers, we were praying and thinking about you. great to have you back.

neil: very appreciative of your kind note. that was a real spirit pickerupper. i appreciate that. governor, let me see how we go about or donald trump wants to go about committing money to defense, to beef it up. we spend half a trillion dollars a year on defense. more than the top seven other countries combined, and a lot of people say surely before we commit more money, and to be fair to this, he did talk about recounting our spending priorities, but do you think there's room, first, to look at that budget, shift priorities around before we add to it? >> neil, my answer is yes, and yes, yes, we need a reform the way the pentagon procurious equipment. we need to look at the excessive spending and other areas but need to be spending more on defense in terms of absolute terms. just a couple of facts, the reality is when you looked at percentage of our economy we're spending on defense under

president obama, it's fallen to historic lows, as the government is spending more and more of our money. we have a federal government doing all kinds of things it shouldn't doing while neglecting core responsibilities. the constitution says the first thing the federal government should do is protect this. we've got a federal government doing ridiculous things that never should be doing in the first place while at the same time we've got fewer members in the army. we've got older airplanes, older and fewer ships. we've got equipment that is not what we need to make sure we continue to be the best and the strongest military force in the world. you know donald trump began a speech by saying peace through strength, that's more than a slogan. it actually works. if you want to avoid conflict and war, prepare for it, and investment in our military is an investment in deterrence and peace. neil: has he been winning you over a little bit more? i know when it started out and famously editorialized i think donald trump would be the second worst thing we could do

this november, betterome than electing hillary clinton to serve a third term of the obama administration. do you feel a little warmer, fuzzier toward him since? >> well, look, he's gotten a little more disciplined in the last few weeks. i have my fundamental concerns. i've not changed my fundamental concerns. this is a binary election. hillary clinton has done one thing, served as president obama's secretary of state, the only accomplishment she has other than making herself personally wealthy is made us less safe. she's left the world more dangerous because of this president's failed and foreign policies. she's not acceptable as the next president of the united states, and that means we need to elect donald trump and i have my concerns. i've not even despite the last few months of campaigning and watching the campaign, i've not come to the conclusion all my concerns are wrong. here's the way i look at it. there is no guarantee donald trump will do everything right if elected but there's a greater chance that hillary clinton will do everything

wrong if she were elected. i don't think we can afford that at this dangerous time. neil: this is going off the reservation a little bit. do you own an iphone. >> neil, i am one of three americans, i still have a blackberry. i don't get anything from them, i am still one of the last people to buy an iphone because i like the keyboard. my kids mock me, my wife mocks me, i'm the holdout in my family. i'll probably have one of the last blackberries in america just because of the keyboard. neil: and you my wife, she likes to keyboard. i am curious, though, what do you do? you were known as the guy who didn't spend a lot of money as governor. you didn't like to waste a lot of money, to your credit, people said you held the purse string too tight. be that as it may. do you think that a phone that offers so little in terms of new advancement is worth it? if you're kids say, hey, i want to get the latest iphone, it's

out. but it doesn't appear yet, governor, it is a dramatically forward. what would you tell them to do? >> that's a pretty easy question. you asked me about my kids. we're the cruellest parents in america. if you listen to my kids, they're the last children in america to get a phone. [laughter] >> and my kids have plenty. but they've heard my story. you and i grew up hearing our parents' stories, walking uphill both ways in the snow. that's similar stories. i bored my kids with story, if they want devices, they can get an allowance, do chores, jobs. my kids know they don't need the newest phones, they don't need an iphone. i suspect there are millions of loyal apple fans lining up because it's apple and they are excited. neil: very funny. thank you, governor, very much. >> and it's great to have you back. thanks, neil. neil: same here. he is right about that, kids

are going to be clamoring for this thing. i'm an apple shareholder, so i don't mean to dis the company here, it says if when the little news alerts come out and drip, drip, drip forward it's a way of winning me over here. we understand super mario is coming to the app store. there's a deal closer. after this.

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this, i am an apple shareholder, i've been one for a long, long time. i'm not promoting or disowning the stock here. this latest phone is going to have a faster processor, a better camera, but i believe a better camera on the plus size version. there will be no headphone jack, you have to pony up for bluetooth and thank you, amazon for giving that secret away all the other devices can you get, bluetooth headphones and the like to go with the phone. a pressure sensitive home button, should seal the deal there. there might be a waterproof feature to, this we don't know. but right now it is looking like more evolutionary than revolutionary details, and then, of course, super mario will be an app that is available to apple and if you're into that, great. i just thought it was a guy who owned a pizza shop. this is a game and a rage. to becoming steve jobs author

and dagen mcdowell. i don't see a lot of new-new here. >> apple is waiting until the 10th anniversary of the iphone to unveil a new phone. but this is the expectation. they do a redesign every two years, and quite frankly apple's got to do something to juice sales, revenue down 23% in the most recent quarter. unit sales only expected to grow 5%. here's the upside for apple. people are holding their phones, owning their pnes for longer. there are about 275 million phones that are older than the 6, which came out two years ago. some people have to upgrade, and by the way, this is a 6 and it bends. this is my sixth one. and it slammed in the car door and it bent. that's another reason to upgrade it. neil: a little more information than i needed.

>> you can help me with this, rick. i'm wondering if this is going to seal the deal. the one thing going apple's way themisfortunes is competitors. samsung came to mind with the galaxy phones that are blowing up. is that enough? is this enough to hold apple loyalists in line for another year, to make the switch right now, what? >> it's fine for holding apple loyalists in line. i think they're making a big deal out of the camera. if you look at advertising, it's been very camera oriented and i think that will be --. neil: by the way, is that only on the larger model? >> it's on the plus. but i think that this device that we all have has turned into a camera. it's turned into the thing that manages our whole lives, and now the thing people are forgetting is the watch. and the swatch going to get a lot better this fall, and when you add that in, you're

beginning to see -- you're beginning to see that they're going to encompanyas our whole personal digital experience. neil: that sounds like heady stuff, sandra. what do you see after this, is it a place holder? or benefitting timingwise because samsung has the problem with the note 7 and exploding on some folks. >> i think they're definitely benefitting. apple is a very smart company. the challenge here is bigger and the bigger picture here is can apple really keep consumer trust, right? that's where it gets tricky. because trust in this digital age is something that has to be constantly earned. it's not a given. so apple is used to comfortable with saying we put something out there, people buy it, whether it's 2.0, evolution or revolution, this changes the game. this is going to be an interesting time to see do people walk by the smart watch

or do people pony up for the iphone 7. what do revenue numbers look like? and apple is going to learn quickly, they have to up the ante if competitors are behind now. neil: dagen, you touched on the outset, maybe what's happening with the smartphones generically is what happened with people with computers, 386, 486, the pentium, and people hold onto desk tops longer, if they have them anymore. and might be doing the same to smartphones unless it's so revolutionary as it appears not to be. i could be wrong. and holding off. what do you think? >> you are absolutely right. the evidence bears that out, that people are owning the iphones longer. and one of the reasons is because you get the automatic operating system upgrade. so you get a lot of the new features on a phone without having to buy a new phone. one area apple focuses this vehicle it's trying to develop. in the shorter run it's focused

on the corporate market and the ipad because the ipad pro in the past quarter about half the people who bought an ipad pro were using it for work. apple has partnerships with ibm and cisco, for example, neil. that's where they're trying to get some revenue pickup,if this isn't a hot seller. >> one of the interesting things about the way people look at apple. most companies we applaud them for diversifying. in this case we're penalizing apple for having a smaller percentage of its revenues attributable to the iphone. neil: well, because it's a declining beast, right? >> but it's got other pieces rising. that's where i think the services revenue is increasing and the watch will be a much bigger factor in the years ahead than it is now. neil: rick, i want to be clear

on this, when you talk about services, that's like the software and others that go with the iphone and imac, right? >> you're paying for cloud storage, paying for imusic. that sort of thing. neil: dagen, i'm sorry. >> because it's your first week back. i want to remind viewers you predicted the resurgence and power of apple when the ipod came out with the click wheel because you made me do a package on it. >> i did. >> you made me do a package on the halo effect. neil: i remember that like it was yesterday. >> you do? neil: i didn'teven remember that. but a year from now, we are being told that maybe something more dramatic for the 10-year anniversary, dagen's point, but that apple itself is evolving in the meantime, maybe it's a services thing and maybe we're missing that. i don't know, but is there something to what rick is saying that under the surface

there is this sort of like what ibm is enjoying, a services revenue that wasn't appreciated until much later? >> apple has to diversify, right. the only way. with hardware, there is only so much they can do given the technology that is available. and, if apple is ahead of the game but then they are dependent on manufacturers, dependent on other factors. so i think with that being said, they're smart, they're look at itunes, looking at influencing their deals, diversifying and the enterprise play is a huge play, we mentioned ibm and cisco. there is a lot more. it may come to pass, but apple is more in the enterprise game than the consumer game which would be a game-changer. neil: all right, guys, i want to thank you all very much. we are getting word where apple confirming that the new iphone 7 will be water resistance. that's not the same as waterproof. for example, if you dive one mile underwater, it's not the same thing as diving ten feet

underwater. i kid. but to make the point it's water resistant and all the other bells and whistles and super mario. i think your life is complete. more arch this.

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. neil: congress is back in session, they won't be around a long time. they're taking essentially the month of october off, lot of it campaigning. in the time, they're expected to take up budgetary issues and also the house is looking at voting maybe as early as this week on a bill that would allow the families of 9/11 victims to sue foreign governments. in this case all the way to saudi arabia. that is not sit well with the saudis, but many said they should be given a shot at doing that, and the house looks like it is poised to allow that. donald trump going on offense with hillary clinton on the e-mails in philadelphia a short while ago, listen. >> she put her e-mails on a

secret server to cover up her pay-to-play scandals in the state department. nothing threatens the integrity of our democracy more than when government officials put their public office up for sale. neil: to the "wall street journal" shelby holiday on that tit for tat, what do you make of that, he going to make this a central campaign issue, but is it resonateing? you see polls with independents not so much, but she is losing support of independents. >> she is losing support of independents and recently that support is sliding, so trump is catching up to her in the polls. that's a great attack for trump to make. one of the issues clinton leads on is foreign policy. if trump can tie the carelessness of handling foreign information to foreign policy and national security that might put a dent in people's perception in her ability to handle foreign policy. he's starting to gain ground in terms of terrorism, in the

latest cnn-orc poll, he is better to handle terrorism, better on the economy. top issues voters care about are starting to sway towards trump a little bit. neil: political analyst not on this show, on one of the others, it's about his trying to outnegative her, her negatives are high, his are high, he's closing the gap. what do you make of that? by that i mean her negatives are almost equal to his. >> it's been a race to the bottom in terms of who's done the most wrong? who's broken the most rules, broken the most laws? one thing that could hurt trump are revelations about donations to florida attorney general pam bondi. he looks like the pot calling the kettle black. neil: it can be a great distraction. >> great distraction, puts a dent in his argument. his two biggest attacks against clinton is she broke the law as secretary of state and engaged in the pay-to-play activity

with clinton foundation donors and access to the government. well, if the tides turn and looks like he's engaged in the same activities, that could hurt him, though he has been very up-front, sometime boastful about the fact he can buy politicians, he can control them with money. neil: hasn't he all but said that, this is what i did as a businessman. >> he even bragged about it. neil: will he be tainted by that to the degree hillary clinton would by the other revelations? >> probably not going to change the minds of any of his supporters. people who back him probably won't care about this. what is key here, all of the people in the middle who haven't made up their minds, thinking of voting for a third-party candidate, thinking of not voting at all, they'll be affected and caught in the scandal storm, the race to the bottom. neil: narrowed the gap in the latest polls. what about the battleground states? we're reminded it's all about the electoral votes has that

math appreciably changed? >> not enough to help significantly. clinton still dominates the states, especially the states he was going after. rust belt industrial midwestern states. >> no accident he was in pennsylvania to make the military speech. >> focusing on pennsylvania, north carolina is look good for clinton. florida has a lot of his panic, minorities, they favor clinton heavily. so he does have a lot to do in the battleground states, but we have a couple months left. anything could happen. neil: anything could happen. seen it before. >> we'll see what unfolds. neil: very much. tim cook is now moving onto talk about the apple watch. new information on that watch saying this already it is the second best selling watch behind rolex in 2015. that was last year. yeah, but that can't be in that

-- rolexes are not cheap. maybe he's talking about dollar volume. to remind the world whatever you think of this andstumbled out the gate, they don't break apart the sales versus other apple products. he's the saying second best behind rolex. that is not in unit sales, i'm sure. because rolex is -- not the fake rolexes like this guy over here, but in dollar amount. that might be the case. more after this. remember here at ally, nothing stops us from doing right by our customers. who's with me? i'm in. i'm in. i'm in. i'm in. ♪ ♪ one, two, - wait, wait. wait - where's tina? doing the hand thing? yep! we are all in for our customers. ally. do it right.

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>> we raised a lot, and a lot of it unfortunately came from me. what am i going to do. but a lot of it came from small donors. i think we're averaging $61 a shot. and we raised millions. we're going to be reporting a very big number. neil: still waiting for that number but donald trump admitting the fact a lot has been coming from him. when you talk about the money that he is raising versus hillary clinton it is about way under half what hillary clinton raised in the latest month. we don't have the full figures for the month of august, or prior months. she had over $320 million versus his roughly $128 million. john tatum, charlie gasparino as well. charlie, what do you make of it, it is uphill fight for him to get money. >> john is not doing his job i think.

john, onus on you and anthony scaramucci. donald trump just said there, you guys are falling down on the job, that you guys just can't go out there and do what he is doing, reach into his bank account and pull out some bucks. listen, i'm only half kidding when i say that. because it is true. neil: i would like to have him back as a guest. >> john will tell you this, so will anthony. goldman sachs won't give directly to donald. they only give to the rnc. neil: i want to explore that. what is going on here? i don't know what the final, final figures will be but always trailing hillary clinton. i know there is a different standard when it comes to trump. didn't need a lot of money running for nomination. i suspect it is different now. what do you think? >> neil, i would say we're going to be just fine. money is not going to be an issue. when you talk about those totals, the month of may, mr. trump wasn't even raising money, right?

so you know he, a lot of that is skewed. last month secretary clinton raised $90 million, in july. and mr. trump raised $80 million in july. and, you know, obviously secretary clinton, she has got tim cook holding fund-raisers for her out in california with magic johnson, samuel l. jackson and all the gang. 27,000 a pop. neil: so new features on iphone. >> right. she announced 140 million. i don't want to preempt reince and the mr. trump and rnc but i can guarranty you that the august numbers will be nine figures. one last point, neil. secretary clinton per vote was around $14 per vote and mr. trump in the primary was around five dollars per vote. if you look at some of the states, some of the 16 candidates, i won't mention names, but ones that had tens if

not hundreds of millions of dollars raised, they were spending and mr. trump was getting them for about 50 cents. neil: this is different now? >> it is different now. i'm not arguing with john. i knows his stuff better than a lot of people but i will say this, sheldon adelson is not not game. he offered 100 million. the koch brothers, the koch family, however you want to put it, their pac not giving directly to donald. if you go down the line, people like jack welch, ken langone, a lot of other fairly rich financiers that used to raise money, they may be throwing a few bucks. neil: what is goldman doing? i don't understand. >> goldman is telling employees, something we broke last month. how did we get this? we knew trump fund-raisers going to goldman employees, you quicked in for jeb, kick in for donald. brass is saying stay away from

donald directly. give to thernc. the rnc money is basically apportioned. they have to use it for party building mostly. they can give a few bucks, relatively little. that is the problem. big donors are stepping up for hillary. they're not stepping up for donald. dollars to doughnuts, when you need to raise money and ad campaigns it will be a problem. make one other point, hillary has been almost nonexistent. it cost her in the polls. donald caught up. the reason why she is raising a lot of money. there is calculation here. they want to raise a lot of money and bombard him with ads at end. neil: like fireworks. john, do you worry that if this continues, you're right, it has improved for mr. trump, again he trails hillary at this point, and i'm wondering, when you see polls that show the race even, that that might get some of these guys you're trying to tap

off the couch? what will it take? >> absolutely. i think that you're going to see, you know, look, neil, we've had the preseason, right? everything before labor day weekend was preseason football. now it is time to buckle up and get ready for the regular season. you know despite the fact that mr. trump just made a $10 million ad buy in four key battleground states. he just placed that. secretary clinton had spent $60 million in some of the key battleground states. oh, by the way, yesterday cnn comes out with a poll that mr. trump is up 2%. now cnn isn't exactly a pro-trump organization. so, i think that gasparino has just got to accept the inevitable, that mr. trump will win this thing and charlie blew it. he blew it. >> i blew it or hillary blew it? i will just say this. here's the thing, listen, if you

talk about economic plans, you know i agree with donald trump's economic plan any day of the week. but you know, this becomes a battleground issue. look at electoral college. neil: need 270. she has it in on that so far. guys, thank you both very, very much. we're getting more dribs and drabs on apple. an improved version of apple watch, you swim in top two inches of the pool. i'm kidding. galaxy phones from samsung. water resistant, waterproof. the difference between the two is waterproof. you can go down really deep not harm the phone. water resistance, you keep to the surface you're okay. this is swim-proof. if you don't swim you don't have to worry about it. no. it has built-in gps with the new iwatch. so they switched from the iphone which didn't have that many new dramatic announcements, iwatch you bought in the first place?

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everyone thought i was crazy to open a hotel here. everyone said it's so hard to be a musician, but i can't imagine doing anything else. now that the train makes it easier to get here, the neighborhood is really changing. i'm always hopping on the train, running all over portland. i have to go wherever the work is. trains with innovative siemens technology help keep cities moving, so neighborhoods and businesses can prosper. i can book 3 or 4 gigs on a good weekend. i'm booked solid for weeks. it takes ingenuity to make it in the big city. >> i'm lori rothman live on floor of new york stock exchange with your fox business brief. well stocks are a little bit lower but still very close to lifetime highs. nasdaq if it closes with a gain today it will be the seventh record close for the nasdaq this year. how about that let's look at winners and losers in the

session today. western digital corp, up 12%, thanks to raising earnings and revenue expectations for the september quarter but look apache. talk about a good day. about 7 1/2% gain after reporting that it discovered equivalent of get this, at least two billion barrels of oil in a new west texas field. could be one of the biggest energy finds in the past decade. that is something else. that is apache for you. tough day for grocers. whole foods, sprout, gave a cautious outlook this morning. we'll send it back now to "cavuto: coast to coast."

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od. helping the world keep promises. neil: all right. we're getting more on this apple event. it includes for the new watch, this feature that keeps track of everything you do when you exercise which might explain why fitbit shares are down. saying of new apple watch series two, it will be swim-proof and more updates to keep track of your breathing. a new app called breathe, will remind you to take a moment to do deep breathing exercise. [laughter] i have a watch that says, maybe you should have the cannoli now. just saying. i don't know. [laughter]. it is the medication, i'm sorry. whoa. okay, little cannoli icon pops up.

federal reserve jeffrey lacker, one of the quasi-hawks of the fed, more interested in seeing interest rates start hiking sooner rather than later. regarding a rate hike telling fbn, i don't see what would hold us back. so even that slow employment report, weaker-than-expected employment report, doesn't dissuade him thinking september rate hike is in order. former fdic chair sheila bair on all that. there you have a guy, sheila, effectively saying if i had my druthers i would go along and hike. what do you think of that, that they might be ready to put trigger? >> i think it is time. probably past time. we really, been keeping interest rates far too low for far too long. i think it has distorted a lot of pricing and asset valuations of the getting back to normalized environment would be good. they need to do it slowly and gradually but they need to get on with it. it is past time. neil: what do you make of the bringing back all the guys from

federal reserve districts from congress where they want to all dismantle the federal reserve? you have donald trump saying it has propped up this economy and created a bubble. what do you make of that? >> yeah. well, i think it is legitimate issue. i don't think that is fed bashing. that is raising legitimate issue about the wisdom of long protracted series of low interest rates. neil: bash, i want to be clear, coming from those say we give too much control, authority, power to this unelected institution? >> yeah. well, and that's right. it is important to remember the fed is not, floating out in the ether by itself. it was created by congress. it's a product of our democratic process. congress created it. it does have ultimate accountability to the public. that is not interfering with fed independence or fed bashing. that is is factually accurate. so i do think it is appropriate to debate this. and the fed has appropriate independence and needs to decide what it is going to do but the

fact that we can't have public debate and should have public debate about this i think is a healthy thing. congress created the fed. so congress wants to limits its powers it has the authority to do that. it should be very, very careful but, clearly i think the fed invited this a little bit for raying into having economic stimulus function for protracted period. more of a fiscal responsibility, not one of monetary policy. and so it is kind of getting into congress's space, it invited this scrutiny. neil: sheila bair. thanks. sorry about limited time. good to see you. former fdic head. apple watch don't know how it is going to work. time to breathe. partnering up with nike no doubt to help you do that. so there you go. fitbit shares are down. apple shares doing okay. more after this. i appreciate you coming by.

absolutely. the market's been pretty volatile lately. there is a lot at stake here, you know? look jim, we've been planning for this for a long time. and we'll keep evolving things. so don't worry. knowing what's on your mind and acting accordingly. multiplied by 13,000 financial advisors. it's a big deal. and it's how edward jones makes sense of investing.

neil: all right. apple big news and, you would have jeff flock following all of this from a store in chicago. hey, sir. reporter. hey, still on the watch, neil, unfortunately, we're at the apple store here, we're talking to people about the phone but tim cook hasn't brought it up yet. what they're saying about the watch, the new apple watch will tell you haven't run in two days, time to go out for a run. hey, your buddy is running now. you should be running. it's crazy. but the phone, that's the headline. they haven't announced it yet going away on the newone jack is iphone 7. we talked to some folks earlier about that, not thrilled being able to use their headphones again if that is what it is

coming to. take a listen. >> i have to have extra accessory to go with the $300 headphones apple bought, beats. make your phone slightly thinner. i don't know. >> i'm not a big fan way they upgrade every year. it kind of sucks people in. not a big fan of that at all. reporter: all about, neil, making the phone waterproof so you can sub meaner it. perhaps that is appropriate. as we talk it is begun to raise on magnificent mile. neil: what is playing behind you? is someone playing a harp? >> she is a, what were you playing there? >> my own music. >> playing her own music. >> cello. that is great. i love the art as well. >> thank you so much. >> you're welcome. ask a question, get an answer. neil: your wife is on line one. thank you very much. >> which one?

neil: oh, boy. look who is here, kennedy. new apple watch, kennedy. >> mother-in-law of watches. nags and tells you when you need to work out. neil: mine would be awful. neil, seven years since you walked. how do you think this is going to go? >> it is not really ground breaking and visionary and revolutionary. tim cook is a very interesting person. i think he has a strong libertarian streak which i certainly encourage but he is no steve jobs and, yea, the apple watch is waterproof. is that really leading the marketplace. neil: swim-proof. >> swim-proof. as swim are i celebrate that. neil: you do gown too deep that is problem. >> you can not scuba dive in the kay manned islands. i love to do, adore it on the weekends. neil: usually clear the beach first. >> such a diva. neil: do we know whether this makes a difference? for company like this, apple,

enviable, any company that can sell 40 million of its gadgets in one quarter, people would die for that. >> yeah. neil: there are high expectations. did this meet any of those expectations? >> that remains to be seen. we're waiting to hear. twitter. we got a bit after gander. people are freaking out about the headphone jack. they don't want to dong gel but it sounds untoward but -- neil: geir -- gary johnson, getting on the debate stage. some. criteria, what they're use something very arbitrary. he polled higher. neil: 13%. >> that has to be in five polls including some. network polls and "fox news poll." and he iscertainly is at much higher threshold than any other extra party candidate we've seen

since ross perot. for that they should lower the threshold, allow him in the debates, if nothing else, keep it interesting and keep both candidates honest and on their toes. neil: italy they let everybody debate. >> they do. talking with their hands. neil: so good seeing you. >> neil, i'm so happy to have you back in my loving arms. neil: that's beautiful. >> i missed you terribly. you look amazing. neil: you look amazing. >> oh. neil: enough about us. more after this. (announcer vo) that's right, keep rockin'. siriusxm's free listening event might be over, but now you can turn us back on with packages starting at $5.99 a month, plus fees. just call 855-874-7746 to keep hearing all the things that make you love taking the long way home. ♪

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neil: now they are getting to the details on the iphone. the iphone 7 will be called the iphone 7. clever. cheryl casone he in for trish reagan. cheryl: get rid of my earbuds, iphone 7 is out, we are watching for details, we have breaking news for your markets.

looking at a market that is trading, we are waiting on what is coming from the fed. report on the overall health of the us economy. i'm cheryl casone he and fortress reagan. welcome to "the intelligence report". we are a couple moments from the beige book. let's go to peter barnes at the federal reserve. >> from the federal reserve district suggests the economy is growing at a modest pace, reporting modest or moderate growth according to the latest beige book. the key line in the beige book is, quote, labor market conditions remain tight in most districts with moderate payroll growth but increased upward pressure on wages. as far as the beige book, inflation remains slight, consumer spending was little changed from the last phase and interestingly there was a report