increase i think the market heads south. ashley: interesting to see where go. >> you know, our time is up. we have only seven sections in the three-hour show. i can safely say, charles payne, it is yours. >> thank you very much. happy monday, stuart. i'm charles payne in for neil cavuto. remember the other business network, wink, wink was on tape. we'll tell you more what is ahead there. stocks shrugging off problems abroad. we'll lay out what you should be doing with your money. first our top story. north korea threatening us. vice president pence out with a strong warning to them. adam shapiro, with the latest at white house. adam? reporter: good afternoon to you,

charles. the key words what the vice president said in south korea are, ironclad and immutable. he was talking about the relationship between the united states and south cree. he said it was ironclad and immutable t will not change. showed great support for the south koreans. the acting president there, has said that the situation on the korean peninsula, this is his word, is dire. so with the north koreans stagerring a parade over the weekend showing their military might, the threat of a possible sixth test of a nuclear weapon at an undetermined date, there is concern that north korea may turn into an aggressor against the south. so, here is what vice president pence said about being careful to the north koreans about testing president trump. >> just in the past two weeks the world witnessed the strength and resolve of our new president in actions taken in syria and afghanistan.

north korea would do well t to test his resolve, or the strength of the armed forces of the united states in this region. reporter: the vice president also sent a message to the north koreans saying the era of strategic patience is over. meaning that the united states is willing to act in its best interests as well as the interests of south korea, with all options on the table. the vice president will be meeting later tuesday because they are ahead of us timewise. he will be meeting tuesday with business leaders and speaking to them about the situation. then he will leave for japan for meetings with the prime minister. here at white house at 1:30 this afternoon, secretary of state rex tillerson has a closed meeting with president shape. back to you. charles: adam shapiro, thank you very much. north korea is looking to flex its military might. can president trump stop this without using military force?

we have former ambassador paul bremer. ambassador, the united states not only carrying this. do you think the grand ambitions no one really understands what the endgame would be? >> important starting point is recognize no american president will accept that a rogue terrorist state like the one in north korea can hold millions of americans hostage which is the effect they would have if they could marry an intercontinental ballistic missile with nuclear weapons. so any president, whether it is mr. trump or anybody else can not accept that. so we're going to have to find a way to stop that, and as the national security advisor said over the weekend, they obviously have a preference for doing this by peaceful means if they can find a way. charles: well, this isn't an overnight development though.

so why all of a sudden the sense of urgency? is it because we believe they are on the cusp of not only having a nuclear weapon but being able to despite that ugly miscue yesterday, being able to deliver it to a target, ally or even the united states? >> well i don't think we should take too much comfort in the fact one missile failed. they failed before but they have made steady progress over the years. charles: sure. >> and perhaps are preparing another nuclear test. look, in the end a peaceful solution is possible but, the people we have to negotiate with are the chinese, not the north koreans. we have to find a way to come to some acceptable end state with the chinese. something that we can both accept in relation to the korean peninsula. and that is going to be a very, very tough, difficult, delicate negotiation, president trump tweets over the weekend, perhaps one of the reasons he hasn't called out china on currency

manipulation, that it is part of that bargaining that you just described. to what length should we go? do we ignore all the issues with trade, our trading relationship with china, would that be enough, would that be on the table to deter a nuclear north korea? >> it wouldn't be enough. what i'm talking about effectively is america developing a strategy for dealing with what happens north of the 38th par little and coming to an agreement with the chinese about that. much more, much bigger important problem whether they call them a currency manipulator or what our trade balance is. it requires a strategy. there are signs the administration is working towards a policy i'm not sure they have a strategy. they have to come to a strategy and they have to have some very serious, private, quiet talks with the chinese. charles: in the past when north korea has done these sort of things they were appeased or assuaged if you will with bribes

essentially. feels like maybe that is not going to work this time. if you back kim jong-un into a corner, then you certainly have a military outcome to this, don't you? >> well, my point is that the negotiating partner we need to talk to are the chinese, not the north koreans. i don't think -- charles: but to your point, what may in turn talk to or threaten the north koreans at some point is north korea in this equation at all? >> if we can get an agreement with the chinese about an acceptable end state on the korean peninsula, then as part of tt thinese woulve discussed with the north korns what, how we get from a to b. charles: sir, let me jump in. are you saying that we will try to get some sort of defacto agreement with china we may have to use military force around get their agreement to that? >> or we may have a defacto agreement they agree to help us implement that brings about a

different situation politically and military on the korean peninsula. doesn't necessarily mean we're going to use force. charles: it is hard for people watching this from the outside who don't understand all the internal ramification, watched this play out year-over-year, missile launch after missile launch, how you get to a peaceful resolution with this, even with china involved? >> you won't get to a peaceful resolution unless china is involved is my point. it obviously is very sensitive. i think the administration, i hope the administration is beginning to move toward a strategy here that does allow them to succeed what they want, which is to have a non-nuclear north korea. we can not afford to have the north able to hold american cities hostage. can't happen. charles: ambassador bremer, thank you very much, really appreciate it. >> nice to talk to you, charles. charles: you too. homeland security secretary john kelly says a military strike from north korea sun likely now

but there could be a cyberattack. cybersecurity expert david kennedy on how likely that is. david, ironically there is speculation that america perhaps had some cyber intervention with thattent at thatted missile launch yesterday. we know this is the warfare rather of the future. what are north korea's capabilities? >> well, you know north korea actually has a very limited internet presence but as far as our actual military capabilities go, cyber is one of those top ones we look for to impact a hostile nation or so definitely set them back. it is possible to impact a missile program. it is possible to set things back. we saw this happened before with iran where we hacked into their nuclear centrifuges and pu their nuclear program back several years. something we have capable of doing and something on the table when it comes to north korea. charles: i know it is speculation but a lot of people think we did something so that degree yesterday?

is that possible? is that a distinct possibility? >> it is definitely possible. whether or not it happened or the not, the government, rightfully so, keeping a tight-lipped what happened with that specific one. they don't want to let north korea know we may have access to their infrastructure or they may be leaking some of this information out to make north korea super paranoid to tear apart their systems. there are a lot of different components go into cyber warfare around what we're doing and our capabilities are. if i were in the united states military and government and cyber command, big things i would focus on, insuring a strong foothold into their environment as well as every aspect of their military. charles: because so few people there on the internet, does that mean that the internet in of itself doesn't have the sort of exposure it has in america? we know our internet system is so widespread, has such a footprint, our electric grid is a potential target. our banks are a potential target.

do we have the same ability to shut down north korea because so few people are on the internet there? >> we do. less of a footprint, yes, but with stuxnet it was physical access that gave us access to the nuclear program for iran. it was a u.s. b drive ended up compromising the iranian program. we have culpability capabilities, humint. charles: people -- people on the ground that can place certain codes in systems give access to the united states. there are multiple ranges of capabilities we have from a global perspective on intelligence gathering as well as what we can conduct militarywise. with very a cyber extension, that is called cyber command we use to launch those offenses on. charles: david, with actual bombs and missiles flying we don't hear a lot about the cyber threat. is that a mistake? should we focus on the idea that

the next major battleground in the world will be on the super information highway, not in the skies? >> that is 100% the case. we already saw it today with the dnc hacking,hat was happeng in the news recently. there was a dump recently as of friday a group called the shadow brokers which is allegedly russia, leaker ad significant amount of hacking tools from the equation group which was, allegedly the nsa. so we're actually seeing a lot of this already happening and transpiring right now. it is 100% going to be the wave of the future. no longer who has the best carrier ships or the best missile guide dance system as are best military. it who has the best cyber capabilities to disrupt your adversary so they can't conduct operations anymore. that is the waive of the future. charles: frightening stuff. david, really appreciate it. new fallout from the u.s. bomb drop but could more bombs be on the way? tax day protests from coast to coast turning violent.

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charles: well stocks surging off turmoil abroad as a slew of key earnings are coming out this week. nicole petallides at the new

york stock exchange with the latest. nicole. >> let's look at some of those, charles, as markets are to the upside. there is some optimism about some fundamentals improving. you see the dow up 111 points. look at earnings calendar. you have 65 names in the s&p 500. that represents 13% of the names in the s&p 500 and nine of the dow 30. take a look at this board. see netflix and united which certainly had a lot of press, not good press, that will be after the bell today, including some other names such as bank of america and goldman sachs as well, american express, verizon, visa, honwell, ge all are on the docket. 1/3 of s&p 500 names reporting are actually in the banking sector. we'll see whether or not they echo what we saw with jpmorgan, which is investment banking operations showing a lift and overall, just doing better in fixed income. seeing those today, you can see all up arrows for the financials which have been among leaders.

but again it has been an up day here on wall street. that being said. retail type names, mattel is higher, going into the earnings report. though year-to-date a laggard. skechers sneakers. that is up. up almost 3% right now. last but not least a key one in technology overall which really has been a great group for 2017. netflix itself which is a real winner. up 2.% at 146.65 biel watch for sales of roughly 2.6 billion and subscriber growth. that subscriber growth number is so key. overall technology is one area been pretty hot in 2017. charles: it has been unstoppable. nicole, thank you very much. really appreciate it. investors not worried about conflicts abroad at least not this session. new details coming out on the nice against isis. president trump giving his generals more power in the middle east. we're hearing the "mother of all

bombs" killed 100 isis fighters. former democratic congressman dennis kucinich and former navy seal carl higbie. carl, start with you. should we see more of these bombs, moab bombs dropped? >> we'll see more i don't think they have anymore in the country. we'll see increased level of explosives. there was one of donald trump's campaign promises, i will bomb the hello out of isis. diplomacy doesn't work, pulling out doesn't work. this is all that is working. charles: congressman, you have miss giving about this. >> first of all there is no military solution, if you want to get rid of isis, dry up their fund. saudi arabia, qatar, including u.s. covertly helped isis. dry up their funds, they're vulnerable. until then they are not. we have to realize we have to

look for diplomatic solutions. a military solution at this point is unlikely. however, isis needs to be put in check. here just two days ago they bombed a convoy in syria and killed 80 children. charles: right. >> so we have to, we definitely have a problem with them, but, part of the problem is, maybe we should cut off their funds? that is what tulsi gabbard and rand paul want to do. charles: what about a combination? you start to drop bombs and put pressure on them militarily, does that open up diplomatic pressure even more. >> at this point i would question that. i have a couple different questions with this, first of all i don't think the president can deligate this authority to generals. he doesn't really have the authority to go to war. some would say we're already at war in afghanistan, the contours of this war are dramatically different than what they were backpack in 2002. this idea of letting generals

make decision dropping these kind of bombs? what is next generals dropping atomic bombs? no. the president has to maintain a tight leash so things don't spiral out of control. congress has to get involved in this as their constitutional du. charles: isis, they're not trouble for the world. they're a parasite, unstoppable killing parasite i don't think you can negotiate with. i don't think they understand any form of reason. it is one of these entities that thrives on power and intimidation, isn't it? >> right, absolutely. with all due respect to the congressman the fact he thinks we need to seek diplomatic solution is just the dumbest thing i ever heard. they are the drop chopping people's heads off and dipping people in acid? you want diplomatic solution. we tried to cut off the money. donald trump campaigned we should have taken the oil before they got it that was their money source. guess what? we didn't have the backbone to do it. we are stuck there. >> you misinterpreted what i

said. we've got to have a diplomatic solution with saudi arabia, with turkey, with qatar, they're providing money for isis. >> they're not interested. they're not interested. >> well, look, they have to be interested. saudi arabia and al qaeda were involved in 9/11. we're holding hands with them in this region? we're bombing them? there's something fishy about this whole thing. >> how do you bring them to the table, congressman? >> you stop their funds, period. not about, we negotiate with them. we understand what they want. they want a caliphate. we shouldn't be helping them out covertly. which, if you look at intel that is exactly what has been going on. charles: with all due respect some of the funding in localized prostitution. some of it is regional shakedown. some will be completely out of our hands. i agree with you, congressman, we should investigate banks, particularly european banks. >> what about saudi arabia, charles? charles: you could argue saudi arabia they're building a massive wall because they're afraid of isis.

>> they're funding them. charles: what we're talking about the solution to ultimately get them out of our lives and rid this scourge from the presence of humanity. no we're funding them. charles: i'm not sure putting out a olive branch or closing down a few bank accounts will do it. >> charles, you unleash the individual military might of united states of america we'll kill every sing quell bad guy we can get in contact and everyone we can find. charles: can you do that from the air? >> no. you have to need boots on the ground. that is unfortunate. charles: you say more men and american women will have to die. >> yes, sir. >> wait a minute. uh-uh. full stop. get saudi arabut of the game and tueyut of the gamend qatar out of the way. stop letting cia work it out overtly and helping al qaeda and al nusra. to escalate a war to let our men and women die out there, total waste, total waste. we can't go in that direction. charles: carl, why do you think all these parties are you talk

about involved in this? why would they be helping isis to this degree? >> there's a desire for sunni caliphate. there is religious motivation underneath all of this. what saudi arabia has done is helped to inspire wahibis and people from 90 different nations this is an invasion of syria taken place from 90 different nations. so what are we doing here? playing in the flash of a wider war when we need to back off. donald trump did not start these wars. it needs to be said. he inherited them. but he obviously is taking advice from people who aren't thinking about donald trump's presidency. they're thinking about some other agenda. charles: do you believe assad did the chemical weapons attack? >> there is report out right now we need to look at. a mit professor raised questions about whether or not the president was deliberately given false information to create the attack. that false information relied on things like this. dead can naries with workers

right next to the dead canaries at site. how in the world with workers are not affected if the canaries there are fishy things going on here. the president needs to get some advice to look at this so he doesn't get trapped and we don't get trapped in a bigger war. charles: carl, how does the president push for more ground forces? i hear speculation that the nsa, national security council rather, is has requested like perhaps 100,000 troops or at least put it on the drawing board to go and into iraq. how do we press this in a country totally, totally against anymore real hand-to-hand conflict where we lose thousands and thousands of our best men and women? >> very difficult, question, charles. we lost more people in the beaches north mandy but entire iraq and. i hate to sound harsh, american people need to sack up a little bit because if we don't find it

over there we'll fight it on our shores. if this syria attack, by some chaness, not an assad-backed chemical weapons attack that is even scarier. that means assad is not in control of his on weapons. that is something we need to be more concerned about. charles: thank you very much. appreciate your passion on this. >> thanks. thanks for your service, carl. >> thank you. charles: protesters demanding president trump release his tax returns you but are more americans concerned about their own tax bill? we'll dig into what is behind these protests, right after this. [shouting]

charles: ahead tax day tomorrow, look into just how much uncle sam is bringing in. $695 billion. this is just individual income taxes brought in for the first half of this fiscal year. all while continuing to pile on the debt.

cns news editor terry jeffrey is here to help us break it all down. seems no matter how much they bring in they spend a lot more. the numbers are just shocking. >> it is. they collected, the federal government collect record individual income taxes and record payroll taxes through the first six months of this fiscal year and still ran $527 billion deficit. at this rate we would have a trillion dollar deficit at end of the year if they run as big of a deficit next six months as they do in the next six months. charles: what happens? it feels like when the government bringing in trillion dollars a year they borrow another trillion. if they bring in two trillion, they bring borrow another trillion 1/2. seems more they bring in the more our deficit climbs. >> that is what history demonstrates. we're seeing most of the spending on automatic pilot.

baby boom generation retiring, collecting on social security, going on medicare. that is consuming a big part of federal spending. entitlement programs, welfare programs, wealth transfer programs on automatic pilot including medicaid, which is a major element of the omacare, that congress says they will repeal and rla. that is a huge obstacle as more people, a significant number of more people on medicaid now than before obamacare expanded it. charles: right. >> you have a lot of federal spending on automatic pilot. they're taxing people more than they have ever tagsed before yet still running a deficit. charles: one of the reasons the republicans had such a difficult time repealing and replacing. so many republican governors went for low-hanging fruit. president obama said, take medicaid expansion, the federal post cover costs a few years. the years go by quickly.

that is the third rail. ultimately we can't get this fix if we reform social security and medicare and medicaid? >> no. unless they're willing to reform those programs, we will not fix it, and what will happen, there will be a fiscal catastrophe in the united states. we'll have borrowed so much money, when the interest rates go up, the payments that the federal government has to make in cash people owning public debt of the federal government will be so great the government can't go about the normal business. that is where we are heading. that is what the data shows. so if the politicians don't deal with it legislatively, we'll have to deal with this after a financial collapse of the united states. charles: yeah. terry, i think we're near 500 billion a year on interest. you're absolutely right. interest rates will go up. it is a ticking time bomb. terry, thanks a lot for crunching numbers for us. we have to put it in perspective

from time to time. appreciate it. >> thank you. charles: violence erupting attacks day protests in berkeley. this is part of protests. they're not calling for big tax cuts. they're calling for release of president trump's tax returns. tea party patriot mark meckler, says these protest its are not resonating with average voters who care more about their own tax bill. i spoke with my accountant, i literally had tears, ike iron eyes cody. it was tough, man, it was tough. they're killing me. i saw a few people in new york city over the weekend with the tax signs. you're right, it wasn't about taxes, their taxes. >> no. honestly what they're trying to protest is something about trump's tax returns. the american people don't care. that was an issue raised during the election. nobody, it didn't resonate with anybody. trump was elected. frankly these aren't protesters. these are anarchists.

they're trying to bring down the government. that is exactly what they're up to. charles: don't you get the feeling if it wasn't trump taxes it would be something else on a warm spring day in berkeley? >> well, look, that is what berkeley is b i live not too far from there. they live to protest. it is important to know what we're up against here. this is new fascist movement in america. these are archists, combination of progressive groups, democratic policians. they want anarchy in the streets. they want to delegitimatize a elected government. charles: in the turn of the century, anarchism was being imported into the america in a alarming rates and stability of america was at issue. what do the people want? can you figure out what exactly they want? they're so anti-american, the thought of america is what bothers them? >> no. i think it is clear what they want. they want the downfall of our american system. they don't like it.

looking for something akin to marxism or communism. the way to bring it, bring about violence in the streets to impose police control. that is really what they're looking for. they're looking for end to legitimate federalism in america. charles: does they mean they given up idea swaying country that way politically? i got to tell you, bernie sanders ran as socialist and did extraordinarily well? >> yeah but they lost the fight politically. importantly, they're losing that fight in the states in a radical way. about 1000 seats lost during the time of president obama. you've got massive majority of state legislatures, 33 control both houses by republicans. 25 governorships by republicans. trends are not good for democrats. certainly not good for socialism in america. charles: america tried socialism. at least socialism right for eight years. we roundly rejected in november. why do they think vie helps in

the streets in america could somehow sway us? >> they have been doing this a long time. people ultimately leading these things are at top of organizations leading these things, they come out of the '60s radical movement. they're street protest folks. they're violent protesters. it is all they know. what they do, when they lose the political fight, they don't give up. they use instruments power, anarchy in the streets. this is from the marxist playbook. charles: mark, thank you very much, buddy. talk again to you real soon. >> thank you, charles. charles: we have the latest on the facebook lives killer. he is still on the loose but we have an update. we'll be right back.

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>> we're still asking steve to turn himself n if he doesn't, we'll find him. we have our deral partners here. we have our state and local county partners and we're not going to stop until he's in custody. charles: the search for the facebook murder suspect

continues. police warning residents of ohio, pennsylvania, new york, indiana, and michigan to be on the lookout. to former d.c. homicide detective rod wheeler, how you find afy like this who is on the run. rod, i guess, we watch too much tv because if this is one of those one-hour tv shows, they would have triangulated cell phone position by now, hunted down two friends or something. they would be surrounding the house that he is in. that is not how it works in real life. >> no, that is not how it works in real life, charles. i can tell you that the multiple law enforcement agencies as far as north as new york and all the way down to pennsylvania and ohio, they are aggressively pursuing this guy, this killer. this guy needs to be taken off the street as fast as we can find him. i can tell you with a five-state dragnet they have set up, sometimes it can be difficult, especially if the individual has hidden out somewhere. that is what i believe he has done. i think he has hidden out somewhere.

maybe somebody is hiding him out. we don't know that but i can tell you that the law enforcement agencies will not stop until they find this guy, charles. charles: rod, you know, i chose not to watch the video yesterday. i saw it trending on social media. but obviously the crime that he committed killing his grandfather in cold blood, does this make him, we hear the term, we know he he is armed and dangerous, but does this make it a shoot on sight situation? how do the police handle someone like this who obviously killed someone already, who wants to kill as many people as possible, already made a public statement as such, how do they approach a person like this? >> that is an excellent question but let's go back a little bit, charles. let's talk about the actual victim himself, mr. good win. he is 74-year-old man walking down the street leaving easter dinner, this big thug,.

steve: fence is his name approaching helpless elderly man. the thing is, 93rd street, i grew up in cleveland, i'm familiar with 93rd street. that street has lot of people on it, including a lot of gang bangers. guess who mr. stephens did not go after, he did not go after the gang bangers. he went after a feeble man. we're not dealing with somebody who is big, bad, bold. we're dealing with someone who is softy in my opinion because he has to pick on the old guy. law enforcement will administer justice taking him to court or whatever they have go to do when they come across him. trust me, chars, we'll come across this guy. it's a mater of time. charles: facebook coming under heat too. one of the messages was up at least three hours. millions of videos are downloaded. they have also algorithms catch what they can term hate speech almost very quickly. they have been able to take things like that down.

how culpable is facebook and social media in general to these things keep happening with more frequency? >> there has to be some accountability. we have to get better removing these live streams as they call it. maybe we need to remove live streams completely until it is reviewed. there needs to be delay of some type. because of this case, charles, other cases you and i talked about, where we've seen crimes streamed on social media, we need to really look at the whole platform to see if there is better way to do it. unfortunately it is looking worse than better. so we as a nation need to look at it. charles: i'm glad you brought up the victim, mr. godwinn, our prayers are with the family. >> thank you, charles. charles: the stock market is still jumping while the north korean thing has gotten worse. the question how long will the bull market continue?

i'm breaking it down tonight on "making money," 6:00 p.m. eastern time. we're in earnings season. it is time to make big mon in if you're in the right names. we're be right back. the bottom line is, for your goals,

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charles: well the you heard it here first. other business network on tape

we learned apple was moving forward with the self-driving car technology. the company getting a permit to test the autonomous cars in california. to tech analyst peter slenk man. and shanna glazer. shanna feels like the wild wild west. everyone breling towards the autonomous car. >> 29 companies filed for a per mitt in california enabled them to test out self-driving cars. apple is newest in the mix. the question whether they're developing a platform, technology other cars will use to run. whether they're also eyeing their own self-driving car. charles: when we looked, peter, at the valuations of the big three, tesla eclipsed them. who wants to be in the business of actually making cars. >> absolutely. apple will license technology to help other cars. that is essentially gave windows the ability to kick apple's but

20 years until they came back. licensing technology makes strong sense. it's a strong platform. they have strong partnerships. they have great government relationships. it is better than computer company building a car if they have the software that runs everything. charles: the thing that tantalizes me. mobileye was taken over. i was in a long time. thank you. so many tech titans all can not be winner. someone will lose big on this. >> there will be winners and losers as time progresses. what i think is interesting here about apple, they have been in the past, historically so controlling about not allowing other devices to run their technology, and here they are developing a platform, they will try to have others use their technology, navigating that political, politics will be interesting for apple. charles: on that same topic, shanna. listen, you have to get regulatory approval. probably will be a federal thing.

there will be regional, local things. yet the speed on this everyone is pushing through, feels like this technology will be a daily part of our lives much sooner than people thought even a couple years ago. >> sorry. peter. go ahead. >> apple is be really smart. watching mistakes other companies are making. the fact they filed for permits first as opposed to other companies, go first wait until they crash and file permits, apology versus sorry. that is a smart move. they're not getting everyone else angry. they're doing it by the book. watching others make the mistakes and learning from that which for apple is something new. >> there was a study by boston consulting group, in 10 years, 25% of miles driven will be driven by autonomous cars. that blows my mind, i can't even imagine it. it is coming here sooner than we think. charles: i have a 4-year-old granddaughter. i will have to sneak her in the back to drive a real car. it might be against the law by the time she gets of age.

>> forget learning how to drive sticks. >> i didn't get my license until 21 because i grew up in new york city. my daughter is four will not need one. charles: you new york city drivers scare the hell out of me. if i see a zipcar i'm waiting for another car. you guys are who are dangerous than yellow cab. so many big names are into this. i don't see how they all can win. maybe losers move on to the next thing. for apple itself who have been so conservative who is sitting on so much money and if you're a shareholder, you have to be happy they're branching out. >> they're branching out. they could acquire additional technology to leapfrog google, who has eight years of background, two million miles on the road here. they clearly have a head start. apple may need to look to other investments to help them leapfrog, get further ahead than they are currently in this race. charles: i want to shift gears, no pun intended to snap.

because the stock is getting hit. down over 1% today. trading less than 20 bucks which is something after psychological number. growing concerns about competition, not just from facebook, but in general, peter. how are they going as a concern forward? >> i was in china last wk on business. i wanted to document the fact i saw this technology model -- maybe i will, put it on facebook, that is the biggest problem they're having. there are 52 different things to do the same exact thing on. it manies about where are the numbers? where is the audience? the audience is still facebook, facebook owns instagram. snap is popular. i don't know if the democrats are continue iting to hold as well as it did. kids pulling snap, they have the attention span after tree senate. you can't put dog faces on forever. >> number of 25, 26-year-old colleagues, they are all on

snapchat all day long. i think that the question here is what we're seeing especially today with some of the stock issues, is around leadership. once again their ceo has been accused of saying, making some comments that aren't politically correct to say the least. they're getting backlash from that. whether they have the leadership there to help them overcome these challenges peter mentioned to get to the next stage. >> they're having an uber-moment. charles: 26-year-old kid wants complete control of company, shareholders have no voting rights, yellow flags. to me a red flag they went public as a camera company. that is scary to me. when was the last successful stand-alone camera company. >> go pro-tried that. didn't work to well for them. charles: shanna, what do you think? >> early adopter of google glas where that got me lookinso silly. i'm not quite willing to bet on

launch of spectacles and camera company. i don't think that is the core business. they're trying to show innovation and looking beyond into the future. that is what glasses are all about. charles: i remember you in the google glass. at that moment you were the coolest person in new york. >> not the least cool person walking around wearing those. charles: you had your 15 minutes. thank you both very much. appreciate it. >> thanks. charles: vice president pens warning north korea. north korea has a new warning for us. you will hear it right after this. also one hour from now, sean spicer will address the press. it is always fun. we'll be right back. no matter how dusty the room

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charles: welcome to "cavuto coast to coast." we're awaiting the white house press briefing, sean spicer's expected to take questions on growing global conflicts. also this hour, president trump meets with secretary of state rex tillerson as they work on a plan to diffuse these global tensions, and right now vice president mike pence is in south korea, and he's got a warning for the north: don't test president trump. connell mcshane is going to help us break it all down. >> reporter: strong warning from the vice president to the north korean leader, kim jong un. you know, what he's doing is interesting. he's using the news we've seen from syria and afghanian as

evidence that e united states does, indeed, mean business. he said the world has witnessed strength and resolve from president trump these last two weeks. again, with the actions taken in both syria and afghanistan. now specifically when it comes to north korea, listen to this. >> the era of strategic patience is over. president trump has made it clear that the patience of the united states and our allies in this region has run out, and we want to see change. we want to see north korea abandon its reckless path of the development of nuclear weapons and also its continual use and testing of ballistic missiles is unacceptable. >> reporter: well, the trip from the vice president comes after visits to this region from the defense secretary, james mattis, the secretary of state, rex tillerson. the message was similar from both of them, and now we hear it from the vice president. no more patience, forget about that, that is over with.

we also did see some fairly strong comments from the japanese prime minister as he urged north korea to not engage in any more provocative actions and also to comply with u.n. resolutions, follows a huge military parade and a reported failed missile test over the weekend from north korea. if you add it up, charles, that's a total of eight missiles tests just in the past ten weeks. add in some news that's just coming in from a north korean official reported through the bbc that it intends to continue -- this is what north korea's saying -- continue to test missiles on a weekly basis, so there you go. charles: all right. connell mcshane, thank you very, very much. meanwhile, the u.s. is putting more pressure, at least more than ever, on china to keep north korea in check. the vice president just today saying he wants china to do more. here to discuss, former state department official david tafari along with michael balboni and retired lieutenant colonel dean.

we've gone into the saber-rattling phase of this where we've been before, but never have we gonento it after launching a series of tom a hawk missiles at one particular theater and then dropping the mother of all bombs on another. does this give us more strength, does this give the current administration more strength to push through some results? >> well, i think that military, diplomacy works best with the threat of military action to follow it up. and for years we've just kicked the can down the road. i think the trump administration has said that, you know, we've reached a point now where it's time the act. but, you know, in acting it really is making china understand that we're serious about doing something and getting them to not just kick the can down the road. charles: michael, everyone who's an expert in this area continues to bring up china. and yet it's north korea, to connell mcshane's point, that

seems to be pushing the envelope here. perhaps north korea can't be reeled in. perhaps kim jong un is just too erratic of a person to be reeled in by anyone. >> what we're seeing is a shift from the engagement and negotiation to deterrence and containment, and that is really difficult when you have a regime like north korea where it is incredibly to pick. we don't -- opaque. we don't have the kind of intelligence coming out of north korea that we would normally have in these situations, and that's because they've been developing these over time, and they've basically broken every promise they've ever made. the real actor is china, and the question is what is china's strategic national interests. obviously, they're involved in the south china sea. they want to expand there. so could they be using north korea as kind of a bar gaining chip -- bargaining chip or stocking horse? the opaque nature of the military capability of north korea. charles: david, president trump tweeting out one of the reasons

he didn't call china a currency manipulator is they have been of some assistance thus far in north korea, and this does feel like maybe they do have a lot more leverage in a lot of areas now because no one wants to have a real, true military conflict with north korea. >> there's no doubt that china has a lot of leverage over north korea, its closest friend. north korea depends a lot on china for its economy, for sale of coal and other resources. it does a lot of trade with china. the question is how willing is china to use that leveraging. china is not known to be a leader in the international community in getting countries to back down. it's not known to be a leader in nuclear non-proliferation, so this is a real test of chinese leadership. it's also a test of the u.s./china relationship and whether president trump has been able to convince china to help us out with this situation and what is president trump going to do in return for china. you mentioned, you know, the

currency situation, also trade. is president trump willing to be more willing to compromise with china on trade issues in order to get china to help us resolve this situation. this is a real nail-biter right now. charles: colonel, china -- maybe the wildcard here is north korea having a nuclear bomb that works, you know? it's one thing to say they've never gotten involved with nuclear proliferation halfway around the world, but when their next door neighbor, a potential loose cannon has that ability, doesn't that put extra pressure on them to act as well? >> well, you would hope it would, but, you know, we were saying earlier about the opaque societies, is north korea really just saber rattling to get more international attention and funds, or are they really serious about this? so china may have a little bit better idea of the motives which, again, goes back to our putting pressure on them, saying that we're not going to kick this can down the road, we're

going to solve it now. so, you know, i don't think it's brinksmanship, but we really need to look at what's in china's interest and what's in the neighbors around theirs interest because north korea is, certainly, frightening all its neighbors. charles: michael, what would it take? i know in the past north korea has done this before. they were paid off, i'm not sure to what degree or what it all amounted to, but what do you think it would take? is there a monetary number that we can put on appeasing north korea and perhaps putting them, putting this away for another yearr so? because it'll never truly go away, i don't think. >> so here's what we know doesn't work, the sanctions that we've put out there so far. the north korean society, the one thing we do know is they are very used to incredible hardships. they've had hundreds of thousands of people over the years die of starvation. this is a country that is not going to buckle to these types of threats. at the same time, if china were to truly stop their trade or reduce it, that would be a dramatic impact on this society. but then the question becomes if

you get them to that stage where they're so desperate, would then they take reckless military action? the question becomes what types of incentives can we put in. but here's the other thing, what type of incentives would south korea let happen? remember, they're the neighbors, they're on the peninsula. they're very important strategic allies of ours. so the question is what would they want to see in terms of an ultimate deal. charles: although south korea has prospered, it's a wealthy nation now, and we've provided a lot of cover for them, so maybe helping out on the financial side of this might be in everyone's best interests. guys, i want to shift gears to the pentagon reportedly prepping for a cyber attack on the u.s. electric grid. this, of course, amid threats from north korea and iran. michael balboni, you're the cybersecurity, expert. how serious of a threat is this? and give us the sort of worst case scenario. >> yeah. so there are two things you should keep in mind when you discuss this. the first thing is everybody goes back to the sony attack,

they attributed it to north korea. it's very difficult to have true attribution that you know exactly where a threat came from. that can be as much of a red herring as anything else. but in terms of the vulnerability of the electrical grid, the electrical grid, unfortunately in many places in the united states, is antiquated. it has not gotten up to the speed it needs to in terms of being cyber secure. the goalposts continue to move. recently, we've been exploring and seeing that the internet of things -- that is, that you make a smart car, a smart refrigerator, smart lightbulb -- these all become things that can be manipulated to also effect an attack so we're in a very dynamic threat situation when it comes to cyber not just from state actors also. charles: right. and, david, i guess one of the arguments here particularly as we get the expanse of the internet of things and our refrigerator talks to our grocery store and our bank account and creates all of this

vulnerability is who pays for it, right? this is what we see with corporate america. they acknowledge cybersecurity issues, but they think government should pay for it. as a consequence, we're all too vulnerable. >> well, the bottom line is we're all paying for it as well. you know, north korea is going to look for our greatest vulnerability, so we would do well to encourage the private sector and spend government money to shore up our cybersecurity and prepare for an attack from north korea. they will certainly look to attack us, as will some of our other enemies like iran. if they find vulnerabilities, they're going to exploit them. they -- north korea really needs to find a way to hurt our interests in order to deter us from acting in north korea, and we have to prepare on all fronts for that. charles: colonel, i've lost a fortune trying to bet on the upgrade of the electric grilled. [laughter] we hear about it, it feels like hype. i know it's there, i know it's a hundred years old, and i know it's vulnerable but, again, i

don't see any real urgency in actually addressing the issue. >> well, agreed. i don't really see the urgency. you know, the president said he was going to get on cybersecurity, but i think it's a jump to say that north korea's going to attack our infrastructure. right? it's one thing to do demonstrations, it's another thing to say they're actually going to launch an attack. yes, they attacked the sony but, you know, is that really an attack on america, or was that an attack on a seth rogen movie? it's hard to say. charles: one thing we're all starting to understand though is that the clock is ticking, the noose is tightening, and something is going to have to come out of this perhaps in the next couple weeks. gentlemen, thank you all for your expertise. >> thank you. charles: stos are unfazed, certainly this session. we're near the highs of the day, almost all the dow components are up. what should you be doing with your money in this kind of volatile market? right after this. ways wins.

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in fact, that manufacturers report, confidence in key components of the business nearly six months out doing very well compared to right now. the same situation in today's release of home builder confidence. now, i continue to see major signs of family formation to builder sentiment that suggests a boom this housing could happen particularly if it's aided with regulatory reform and a greater ability of products. so far this session for the stock market has reacted more to being oversold, and the numbers beneath those headlines, again, they all bode very well for the potential of this economy and the stock market. after the bell all eyes will be on netflix, they report. after beating the street by an average of 183% for three quarters, the last time out the company only beat by 15%, but you can see according to the screen wall street has become believers. so they'd better have a great number after the bell. all right, guys, here with information on what you should be doing to help you handle your money, particularly as global tensions rise, business boutique

author christy wright is with us, and money manager heather z. is with us. let me start with christy. >> sure. charles: the business boutique. >> yes. charles: a lot of people anxious out there, afraid, even for people who voted for president trump are reluctant to invest in the stock market. >> here's the thing, you can focus on what you can control; your time, your money, your resources, your talents. you know, there's never been a better time to start a business than right now. you could start a business tomorrow with nothing more than your idea and a facebook page -- charles: is that because of the internet? >> yeah, you've got free social media. the barrier to enter is lower than ever before. charles: and, heather, you always have a great sense of the pulse of the corporate world and main street, right? people are feeling better. all of these sentiment numbers have gone through the roof, but what we've seen over the last couple of weeks is a creeping

anxiety as well. >> it is. i think when we look at the earnings data, we want to see at least 10% double-digit earnings growth across the board. revenue growth will be key at around 6%, and unless we get a knock the cover off the ball type of first quarter earnings, we're running out of catalysts to take this market higher even though we have great consumer confidence. the new administration is helping small businesses, creating deregulatory environments for businesses, entrepreneurs to thrive. i still think show it. it's a show me market -- charles: wouldn't 10% be knocking the cover off the ball? >> it could, but that's already baked in. the markets have run up on all of these earnings expectations as well as the deregulatory environment and, of course, tax reform. so until we see that happen, the market's near all-time highs, there's a lot of geopolitical tensions and risk which haven't affected the markets dramatically yet, but i think

that comes into play if we don't see some increasing data. charles: right. christy, on folks who are at home saying, okay, i want to try to take control of my own destiny, if you will, they could be aided by a better regulatory environment. it's one thing when they throw all of these rules out there, the small busiss person, there's some serious briers aren't there still from a regulatory point of view? >> we live in a side gig economy. you're seeing 40 million americans, for example, work as freelancers or independent work ers. you could be a little scrappy, several irons in the fire where you'll able to control what you can, start with what you have, start small, and then you probably aren't going to run into those starting really small. charles: you're encouraging people to do that, right? >> sure, absolutely. make money on your own terms, for sure. charles: is there a correlation between this optimism, people are feeling so much better about the direction of this country

that now it's manifesting to say, okay, the guy i want is in the white house now, so it's incumbent upon me to take advantage? >> i think it's partly the opportunity with free social media marketing, that type of thing, but also the risk is solo. you don't have to have a brick and mortar store. you can put your toe in the water, test your idea, validate your idea -- >> do you think that's because of the new add managers? because under the past administration my father had a small business, and he said, no, forget this because of all the regulatory burdens and taxes. he just -- charles: entrepreneurs two years ago went down to the lowest level that we've had on record. >> yeah. charles: and ironically, more and more foreigners are starting businesses where native-born americans have been intimidated. but i think that's changing, to your point. maybe your book will help. we need to get your book out to everyone who wants to start a business. [laughter] >> what i've found is it's not having too many things to do that overwhelms us, it's not knowing what to do.

that's why i wrote it, to give them everything they need to know to start or grow -- charles: it's just the intimidation factor, isn't it? >> it is. most people think that fear is a bad sign. it's a red flag, but i've found fear's a normal part of the journey. don't wait until you're not scared. you just do it scared. you're going to learn the most by doing, so test some things and see what works. >> speaking ofear, fear in the marketplace right now, i'm coerned about the federal reserve unwinding their -- charles: that spooked the market a couple weeks ago. >> yes. i get it, two rate hikes, two more this year, we've already had a quarter basis point, but the bond vigilantes are back. rates have pulled back on the ten-year -- charles: what do you make, heather, of president trump saying, hey, you know what? he may have a change of heart with janet yellen, not only will she probably finish her term, there's a chance she could be brought back in, but it feel us es like the caf -- feels like

the caveat is keeping interest rates low. >> he referenced that lately saying we want to keep rates low. the dollar is so strong on a relative basis right now relative to the rest of the globe that a weakening dollar, especially approaching $20 trillion in our debt, that matters. charles: christy, people watching, again, you know, they e-mail me, they tweet at me, they come to my web site, they want to do something, but they're still a little bit reluctant. how do you nudge them over the edge? is there one key thing that starts to lower the momentum from perhaps pursuing their dream? >> instead of focusing on, oh, this big business, this big dream, just take the first step, and here's what you'll find. if you just commit to that first step, when you get that quick win, it will give you confidence to take the next baby step and the next baby step. and over time you're pursuing your passion, you're building your dream k and you're really chasing this thing. but it didn't happen because it

was this big jumping off a clip. charles: all right, business boutique. thank you, ladies. appreciate it. >> thank you. charles: i'm going to have more on this market tonight. make sure you check me out, "making money," 6 p.m. right here on fox business because we all want to make some money. protesters demanding president trump release his tax returns and the mainstream media actually glamorizing what you're watching right now. but remember, how many in the media vilified the tea party protests, yeah, these protests? nice, clean, quiet. why someone here is about to call out this double standard.

♪ ♪ charles: well, those tax day protests getting raucous over prident trump'tax returns. president trump himself responding on twitter saying, quote: someone should look into what paid for the small, organized rallies. the election is over. well, here to debate it out, democratic strategist david

bernstein, trump fundraiser john tatum and patricia lee -- i'm sorry, patrice. let me start with you. do voters at this point really care about president trump's tax returns? >> i don't think they do. we have seen some gallup polling at the beginning of this year that it was a concern, but as we've seen the administration make some headway, i think people are less concerned. and just looking at the size of the crowds, these are people who are really just anti-trump, and they'll latch onto anything to get at him. charles: john tatum, i agree i don't think there's a major ground swell that they must see the release, but from a political point of view since at some points on the campaign they were promised, should the president put that into consideration? >> well, charles, i agree with patrice. i don't think it's an issue. that was all litigated in the election, right? i mean, and he won. i think people are more concerned with fair be taxes and do they -- fair taxes and do they get a tax break and do we

get tax relief from this congress. so i agree with patrice, i don't think that his taxes are an issue. and, charles, i might remind you that don't we have the same irs commsioner today that we had back several months ago that was leaking a lot of information about republican donors' taxes? so does anybody believe that if there is one issue with president trump's taxes -- [laughter] that that wouldn't be all over this leaky swamp called washington? charles: so you think koskinen would have leaked them somewhere by now? >> i think those taxes would be all over the place if there was an issue with president trump's taxes. i can assure you. charles: david, what do you make of this, because those protests, although small, were ugly, violent scenes. >> look, there's no question that democrats are still very upset, and i think rightly so, that we have the first president in modern history to not release his taxes particularly when there are so many questions about the president's allegiances, where he's -- who he's indebted to and what kind

of business he's done over the years, how much taxes he's actually paid. we have a little bit of information -- charles: we saw one year, right, that was pretty impressive. he paid a higher tax rate than barack obama and bernie sanders. >> that's right. but the fact that he hasn't released his taxes and broken with this precedent is something that people should be, you know, still obviously concerned about, but i don't think it's going to do anything because it's clear he's not going to release that information. he has no desire to do it, and there's no law that he says he has to do it. this is a president who's been unafraid to break with tradition, and that's some of the reason people on the right giving him credit for it. charles: patrice, what do you make when a group of people show up at a protest and their faces are covered, they're wearing all black and, you know, it doesn't feel like old school, you know, like hippie signs and, you know, it's not your traditional protest, is it? >> it's -- they're there to be disruptive, and they're there to push a certain agenda that's, frankly, very violent.

i mean, if you really are taking seriously the idea that the president's taxes should be released, then these, the images we're seeing right now does nothing to help that agenda. i do think i it's interesting to note there are a lot of older people who were in the crowd, people who have been paying taxes for decades and are probably tired of having to pay such high taxes. if anything, this gives us a good conversation to talk about taxes where i think all americans can agree that we need lower taxes so that we don't have to pay as much. charles: to your point, if they had legitimate tax protests, i would have been out there too. [laughter] hey, john, you pay a lot of taxes. what are we going to do about that, by the way? the market's stalled, we're up big today, but that's a rebound. we're well off the highs set just a month ago, two months ago, you know? this whole tax thing, there's so much focus, the media gives so much focus to this kind of nonsense, but i want to circle back perhaps to a point you

brought earlier, that the majority of us would like to see lower taxes, particularly after the obama administration. >> yeah, charles, i agree. i think the real issue is not president trump's taxes, it's the american people's taxes. and the republican party, you know, if it had been me, i would have taken, got some points on the board and maybe gone with tax reform before health care. but, you know, i'm not running things, and wiser people chose to do health reform, health care reform. but, charles, we've got to get tax relief for the american people and corporations in this country. and if the republican-led senate, congress, the house and the white house can't all three get together soon, there'll be a bigger problem than these protests in berkeley. charles: no doubt about it. although, speaking of these protests, i saw a few people -- i was in the city, real quick, and with the tax sign protests,

i've got a feeling it's going to be a long, hot summer and spring, and i think it's going to turn very ugly, that this is just a precursor. what do you think? >> i think you're right about that, because the president has shown no desire to actually try and become president of the entire country. he is still playing -- charles: so you blame the president for what we saw in berkeley yesterday? >> i think there's equal fault to go around. i think the president has not tried to reach out to what is clearly a very, very divided country. he ran on a promise of uniting the country, he said that the night that he was elected, and neither side has really cooled down since the election, so it's going to be a long, hot summer, for sure. charles: patrice, we are a divided country, but when you start talking about violence though, i don't know how the perpetrators of violence continue to point to the white house for their actions. >> that's just a scapegoat that they're using. i mean, what's interesting also with these rallies is that every single movement that's out there is trying to latch on to them. we saw black lives matter tag on

to another protest, and again, it's not getting at what the issue is which americans do care about, taxes, right now. and over half think our tax system is unfair. that's an area where we can all come together on. i'm just not sure, you know, compared to my progressive colleague that, you know, the left is really willing to come to the table and have serious discussions. charles: all right, guys. it's a real interesting, trying time. i appreciate all of you. thanks a lot. we're getting new information from the white house over when tax cuts are expected to come down. so we've got some news for you right after this. ♪ ♪

>> we have always advocate canned for a reform of the u.s. tax code so that it would be made simpler, more efficient, and we certainly hope to see some reform. we are very mindful though of the impact that it has on the rest of the world.

charles: that's imf chief christine lagarde telling liz claman that the world watching what we do with tax reform. more of her exclusive comments today at 3 p.m. on "countdown to the closing bell." tax reform is taking a backseat, of sorts, to health care that's because -- let's face it, it's causing confusion among a lot of folks. "the wall street journal"'s u.s. news editor, clint hall, on where this all goes from here. it has become something of a dilemma, hasn't it? >> well, you know, the president -- after they didn't get health care passed the first time -- said i'm moving on, we're going to take on taxes now, and now he's sort of said, we, we've got to get this done, and part of the explanation is really health care reform involves tax reform in and of itself. charles: right. >> do you do this piecemeal or as a package. charles: you do health care, you get a trillion dollars to play with so that when you bring down corporate taxes, for instance,

or even other taxes, but when you bring those down, the revenue that's lost to the federal government is offset already. isn't that, essentially, what they're -- >> that's part of the gambit there. and also to eliminate the piecemeal attack. one of the challenges of getting taxes done if you just going to -- you're just going to address this income deduction or tax credit, it becomes a battle. if you can go comprehensively, you might offset a concern on one side and another party member to bring them all to the table. charles: why didn't they do that? i mean, it felt like last week when they had that infrastructure meeting, it was the second meeting, and it felt like that meeting was sharpen the pencil of sorts. we know there's going to be an infrastructure plan, but i thought they were going to come out with more definitive ways on how to get this done, these ceos. repateation and use that to lure lawmakers on both sides of the aisle. they're going to have to do maybe a combination package. the idea of doing one at a time

is complicated, plus the clock is ticking. >> people are facing midterm elections next year, that may change the die dynamics, so this the time to strike. this is a complicated thing. tax reform touches so many more aspects than just health care x that was hard to do all by itself. now you throw in infrastructure which is the sweetener that probably is needed to bring some democrats over, and you've got a very complex sort of stew there that is hard to get all in the same kind of shape. charles: so, glenn, do you -- are you of the cool that believes democrats are so entrenched right now -- i said transgent that -- intransigent that they won't play ball no matter what and you cannot make up the loss of the freedom caucus or the so-called tuesday group, so they better figure it out amongst themselves, or are there bipartisan sions to this? >> well, there are possibilies for bipartisan solutions, but you've got to get past the rhetoric, and you've got to have something that you give in order the get something that you can take. and that's been the hard part.

even within republicans they haven't been able to find that balance, let alone adding democrats to the equation. when we're talking about taking on health care, again, we saw that that was a very clear partisan line, and democrats were not coming over. that could ramp up the rancor before we get to tax reform. so there's a risk in taking it in this order. charles: there is pressure, though, on the republican party, and i'm hearing more and more freedom caucus members saying they want to play ball. on friday congressman desantis made some positive comments, we've heard others say as much. so do you feel perhaps we could be close to behind-the-scenes compromise within the gop? by the way, that involves all parties. not paul ryan coming up with a plan that he tells the president will sail through, because it didn't. >> i think that was part of the problem. there wasn't consensus building long enough, far enough to get that done, but i think also the republicans know that they have a lot of pressure on them to get something done. they control the house, the

senate and the white house, and so this is a moment in time, and they are -- charles: a lot of pressure, but did they put too much pressure on themselves? barack obama had a greater hand at least coming out the gate than donald trump, right? i think he had the 60 voteses in the senate, he had the house, and it still took a year of in-fighting amongst democrats, and it took the last second cornhusker kickback and a big deal with right-wing democrats, if you will. so, i mean, did they push too fast? >> well, perhaps. you've got bigger divisions within the republican party than barack obama faced within his party back then, right? so the difference between, you know, the freedom caucus and the budget conservatives who were worried about we've got to take all of these taxes out, we've got to repeal and replace everything and the moderates who are saying, wait a minute, our states, we rely on the medicaid expansion. we've made a lot of promises, and we can't pull back. those two were very juxtaposed d difficult roncile -- charles: and they don't go away. >>o. they're both feeling the same

pressures right now. charles: thank you very much, glenn, appreciate it. >> always a pleasure. charles: tomorrow is tax bill, and neil's going to be back. he's going to discuss your tax bill going forward. he's got linda mcmahon and wisconsin governor scott walker here on "cavuto coast to coast." justice gorsuch taking the supreme court bench for the first time today. he's going to be making key decisions early on, and we're going to be following that. and in moments, sean spicer set to address the press. we're expecting questions on everything from north korea to tax cuts and much more. all after this.

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♪ ♪ charles: companies looking to hire younger now facing legal issues. pricewaterhousecoopers currently being i sued by two men who say they were rejected for not having a youthful profile. so can you be penalized for hiring young? well, to a relative youngster, attorney though, the very accomplished millennial, christy kunzig. we've been hearing more and more of these stories, right, and it's an interesting juxtaposition because young, energetics, particularly with these technology companies, but also cheap -- [laughter] older folks saying, hey, we've

got the same experience, but we come at a higher cost x this is more about age discrimination than anything else. >> exactly. so this case is pretty interesting because they're saying, you know, they're only hiring at entry-level positions on college campuses, so this is really going to negatively impact us because we're not on college campuses. we're submitting our applations online, so how can weethese entry- into these entry-level positions at the same rate as millennials? charles: i would suspect we'd start to see some legal precedent because this has been going on for a little bit, this whole youth movement particularly in silicon valley, billion dollar start-up companies and that's where all the energy and new thoughts are coming from. >> absolutely, we're definitely going to start seeing this. there's going to be a case going to the supreme court just on this topic. the 11th circuit had something very similar, and they said applicants can't file disparate impact claims which is what we have here, except this court in california said, you know what? yes, applicants can file

disparate impact claims. so we're going to read that into the statute and allow you to go forward and have a cause of action here. so it's going to go to the supreme court, and it's going to be interesting to see how they interpret this, and i have a feeling they're not going to be reading anything into the statute and they're going to side with the 11th circuit. charles: and would that be good or bad for older people trying to get promotions? >> it would benefit the millennials because it would say if you're not an employee, you can't say we're discriminating against you with our company policies on their face. charles: that sounds like a little bit of a loophole. [laughter] >> maybe. charles: what about the older folks? is there anything in the constitution that they can point to that perhaps would cover this? >> i mean, right now they're pointing to the adea which is the age discrimination and employment act. so that's kind of what they're holding their basis on, and they're saying this covers all individuals 40 and up and you can't discriminate against us in any type of employment situation

whether it's limiting our opportunities -- which is really the basis for this one -- or saying -- charles: i've seen a lot of successful age discrimination lawsuits in the last ten years. we're in the baby boomer age, so a big chunk of our population is getting to that point where, you know, they've probably cost more than a younger kid right out of college. >> absolutely. because they have e experice to back it up. and could be a very successful age discrimination claim depending on whether or not the courts are going to allow them to bring a disparate impact claim as an applicant. if they do allow that, this definitely could be because pricewaterhousecoopers could easily recruit on college campuses as well as open up online and say we went with a younger employee because they have some type of reasonable business reason for doing that. charles: all right, christy, thanks a lot. >> thank you. charles: we're awaitingwaiting e white house briefing next and new sound of president trump talking north korea. that's right after this. we're going to have a quick break, be right back.

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charles: well, as we await the white house press briefing, president trump is meeting with secretary of state rex tillerson at the white hou this afternoon. "fox & friends"' cohost ainsley earhart asked about north korea notes ago. >> the vice president said, basically, the suggestion running out of -- the u.s. is running out of patience. you have a navy fleet that is sent into the sea of japan right now. have you ruled out a military strike? >> i don't want to telegraph what i'm doing or thinking.

i'm not like other administrations where they say we're going to do this in four weeks. it doesn't work that way. we'll see what happens. i hope things work out well. i hope there's going to be peace but, you know, they've been talking with this gentleman for a long time. said, oh, we made such a great peace deal, and it was a joke. you look at different things over the years with president obama, everybody has been outplayed by this gentleman. and we'll see what happens. but i just don't telegraph my moves. charles: the full interview will air tomorrow morning at six a.m. on "fox & friends." now to former bush 43 state department official paul bonn chelly on what they can do to keep our enemies in line. paul, this is a tough challenge for the president, isn't it? >> it's a very tough challenge because the united states has been so passive over the years. but it's a different kind of president, it's a different kind of defense secretary, secretary of state, a whole national security team, and i think that the most important thing is for our enemies and would-be enemies

to understand this is a consistent strategy, it's a consistent policy that we will punish people who hurt us or threaten to hurt us. you're not going to know when or where, but it will be done, and i think they will get the message. right now there's a feeling-out phase of trying to understand how consistent this administration's going to be, but we're going to quickly get to the point where they understand it is consistent. charles: when you say "they," you're referring to all the bad actors of the world, but let's face it, kim jong un is unique in many ways. he is a total dictator, third generation, maniacal control of the people in his country. his father was able to survive three million people diagnose, so ifeels like there's no way to pressure this guy is and that's what makes th particular situation so confusing. >> absolutely. this is the worst of the kims because he was raised as a complete spoiled brat in europe. he's never had to face the reality of any kind of life that he's lived, and now he's in a fantasy world where he has absolute power.

but the real message there, of course, is to china. it is for china to you said that if they -- to understand that if they don't stop this rabid dog, they're going to have a bigger problem than if the united states has to do something. i think they're getting that. i think it will take some time, especially as we get through the transition in the south korean government. but i believe china is going to do what it needs to do to avoid a bigger u.s. presence and action in that region. charles: they've turned away coal shipments, they've lined troops up against the border. what exactly do they need to do? and what if there's a possibility that none of their actions results in a a change of attitudes amongst, for kim jong un? >> well, i think the most extreme action, of course, that they have to be considering now is their own engagement to remove him because he's going to be a bigger problem for them based on what we would do and japan would do and others. i do think they'll be looking for a way to put number pressure on him that he understands life

is over for him if he doesn't do something that calms the nerves of the chinese as well as us. charles: in the meantime, china has built two manmade items in the south china sea, they've militarized them during the last administration. aren't we going to have to pivot soon to them with respect to their global ambitions? >> yeah, i think so. i don't believe that there is a four-year course for the president of the united states and the president of china to have no problems because china is going to, they're going to enforce their control or what they claim is their control over those islands. the white house, i think, is going to have a very good strategy of there's a lot of cooperation to be had here if you will back away from the most extreme measures. and it's all based on what kind of role is the united states going to play in the world. under president trump we're seeing a very different role that we will not tolerate threats to our interests, nor will we tolerate provocations. there will be caots and sticks, and that's a sea change from the last eight years. charles: and yet earlier today a

foreign minister from north korea suggested there will be more missile tests. this feels like a new red line of sorts. where is it drawn? is it drawn at the next missile test? the next nuclear explosion? when do we say, okay, we spring into action? >> i expect the north koreans to say that, of course. i expect them to do some of that. and if they do, it will lead to the united states shooting them down. and if that happens, china has already lost a lot of ground in trying to control it themselves. they don't want to see that. they don't want to see us bring defensive measures to south korea, t.h.a.d., you know about that network that shoots down incoming missiles. so china missed the first inflection point here and they'll have to be bolder in the way they deal with north korea, because i do believe the president will not tolerate much more. charles: how long til this is resolved to a degree? it feels like we're coming to a head here.

>> it depends on kim jong un. i could see him being very erratic and in the next six months there's something really serious. it could also go the four years of the presidency. charles: i'll have more on this tonight on "making money." trish regan's going to take you through the next hour. trish: thank you so much, charles. we are waiting on sean spicer who will be addressing the media any minute. you're looking at the live feed as the reporters assemble. this briefing is coming as president trump issues a new warning to north korean leader kim jong un, behave or else. let's see how the markets are reacting. you can see they are settling out here in positive territory, up 130 points on the dow, nasdaq up 31. welcome, everyone, to "the intelligence report." president trump keepg a close eye on north korea right now following the communist couny's latest attempt t launch a missile. now luckily, the missile exploded within seconds. there are now report that