>> big thank you to our all-star panel. have a great weekend. "varney & company" begins now, charles payne. >> stuart will be back after the holiday. we've got lot for you and only three hours to cover it all. first, talk about a bounceback. the stock market has recovered all of its losses from a week ago today and then some. we've got a new all-time high for the dow, within our reach, we probly hit witn the first hour of trading. take a look at retailers, no ice age on these guys, they're bucking the trends and higher sales. before the open you see big, big names are going to be up huge. doesn't that mean they beat expectations or is there something really going on there? meantime, president trump

meeting with nato leaders and open borders and terror, issues bigger than before. and also meeting with angela merkel. they're going to make a statement in the next hour. also the meeting takes added importance, of course, as we learn more about the u.k. terror bombers, three members of his family are now under arrest, including his father and two brothers and the bomber was an isis fighter in libya. it's a very busy day in the world and for your money. "varney & company" is go-- about to begin. ♪ let's get right to politics, the montana republican running for congress body slams and punches a guardian reporter in front of a fox news crew. >> sick and tired of you guys! the last guys that came here did the same thing. get the hell out of here!

get the hell out of here! the last guy did the same thing. are you with the guardian? >> yes, you broke my glasses. >> the last guy did the same damn thing. >> you just body slammed me on broke my glasses. ashley: the reporter ben -- they say that the gianforte is running for the seat, that he was preparing for the fox interview and the reporter came in and put his mic down and you can hear that. and reportedly the candidate body slammed it, said broke my glasses. mr. gianforte is in a fight with the democrat in montana, a

banjo player, country singer. obviously, this cannot be good for him. stuart: 30% of the votes have been cast and he had a pretty good lead going into the body slamming incident. more than likely he'll still win. ashley: one wonders how many in montana, hey, liberal media, way to go. >> may be by a larger margin than thought. that's a different topic. great news for your wallet. it looks like the market will open higher. remember, five straight sessions of gains and we've been seeing positive signs all over the place, you may not hear it in the media, but your wallet is feeling it and median household income 59,361 dollars in april, highest since february of 2002. come in, art laffer, former reagan economic advisor. what do you say, art? every time i look at the data, forget about the headlines,

every time i look at the data i'm seeing important trends that by the way have long-term implications. >> that's great. it's good to have you on the road and stuart didn't leave and invite me so he wouldn't have to see me, did he? [laughter] >> just joking. the market is telling us we're in for a good long run and i believe that's true. i think with trump in the presidency and the house and the senate and state legislatures and the governors, i think we have a great run coming before us. i couldn't be more excited about the future than i am. >> you know, art, i agree with you, too. i think that too much has been made about how quickly some of the legislative wins happen because i think what people miss is the innate goal of business and that's to grow, take market share and invent the better mouse trap. no industry, no country does it better than america. >> that's true. we y just do it well.

not that the government doesn't try to grow, too. they want to invent the bigger mouse trap and they want to be the bigger mouse. i was chairman when these budgets come in debt and complaining, the forecasts are way too rosie, bah, bah, bah, but sooner or later this gets through. this is where the rubber hits the road and these specific programs are where it happens. i love what mick mulvaney says, he says stop focusing on the people who receive the money, start focusing on the people who pay the money. and in both cases you've got to look at the balance between the cost of taxes and benefits from spending. when the costs get higher than the benefits, stop aeady! >> i agree, fiduciaries of our hard earned money and they should respect us, not vice versa.

>> exactly. a lot of big retail earners, i want to bring in jack hough best buy up 11%, williams sonoma. >> it's a low bar, so much pessimism for retail. they're aware that amazon took a bite out of retail, but the perception is retail is going to roll over and die tomorrow. that's not happening. they're getting a big bump. >> i went to a sears store and i felt like i was in an old russia department store, it was scarily gloomy and it might have been the scene of the horror movie. >> and you may see a bump by

your visit there. >> and they're extending financing right now and retailers are hard to kill, right? they have a lot of inventory they can sell off when times get tough, a lot of real estate and a lot of leverage, and they last longer than you thought. >> many are dying this year and bankruptcy. before i let you go, some are figuring it out. best buy may have figured it out and williams-sonoma may have figured it out. >> either they have merchandise in the store or private label merchandise. something that can't be amazoned away. and in home depot, people walk out with big carts of lumber. that's not going to get amazon'd away. >> and williams and sonoma, how can you get an expensive espresso machine without trying it out first. and 23 million fewer americans

would have insurance under the obamacare reemployment. joining us mike kelly, who sits on the house tax writing committee. congress, what's your initial reaction to this cbo score. >> first of all, we know that the cbo has been off dramatically from time to time so i don't place a lot of faith in it. i will say this, if your taxes go down and deficit goes down and premiums go down, that's a good thing, if your pensions go up and the stock market goes up, that's a great thing. so i'll take that any day to what is put out there by some of our friends on the left, 23 million not insured. charles, they choose in a lot of cases not to have it buy health insurance and they're not going to be taxed anymore, all of a sudden, if you want to use that number and be accurate about the number, a lot of the people who say, i don't need it right now and i'm not going to buy it right now. i'll buy it when i need it, not when the government tells me i have to buy it and not when

they tell me what has to be in it. >> i believe that most parents want their children to have health insurance and kind of dangerous territory and say while you and i want health insurance and some reason they don't. if the republicans are going to buy into the notion that somehow the federal government must be involved in health care insurance, that's a sticky point, isn't it? that's where you're hammered by the press and the other side. >> no matter what we do, we're going to get hammered by some of the press not all the press, be fair about this. those who need help, we've put a tax credit. and we've done something to help those who can't help themselves. i get the most vulnerable part. what i don't want that we can spend the way we keep spending and look into the future and saw it's sustainable. the worst thing to do is promise something you can't deliver and it's horrible to do that to people. what we've put forward makes sense and the other thing, it hasn't gone through the senate yet. we put our piece through the house and what's in effect right now is the affordable

care act. we're struggling. in pennsylvania, charles, our premiums went up 120% and from a guy who does provide insurance for people that would work with me every day back at the dealership, that's an unbelievable cost of operation i can't control. i want to provide it and i want them to have it, but by the same token, it has to be affordable. >> without doubt. the people, the working po o the working middle class really got the short end of t stick on this and there's got to be way, i guess, since government and both parties agree they're going to help to find a middle ground. this, i think, is a positive step overall in the right direction. thank you very much, appreciate it. >> goes down to choice, charles. you have to make your own chase. >> i want to go back to art laugher -- laffer. and congressman kelly talked about the added money to get off the relationship with the federal government and the

states would make decisions for their own citizens. >> i don't think that the forecast by the cbo is worth a hill of beans to be honest. they have stuff that they cover and don't cover correctly. insurance is know the health care, insurance is an insurance plan and adds a lot of costs to health in a lot of circumstances. while i believe that everybody should have catastrophic or the resources to take care of it, you don't want health insurance for everything. you really don't. you want people to cost the money and get the benefits and look at it like anything else, like housing, like food, like education and you don't want everyone covered 100%, otherwise you'll have a real mix-up and have it dragging the economy down. this bill would add a lot to economic growth. let me just say that. and it will reduce the deficit by more than-- >> and it's smart, a lot of

smart stuff in it. thank you, art. >> thank you, charles. >> and travelers, tsa rolling out new screening procedures at the airports. get ready to spend more time in waiting lines. wait until we tell, but this, a story out of portland, oregon. two women start a burrito business and they were shut down after some people complained they were appropriating the mexican culture. can't make it up. and the congressman body slamming a reporter. and some blame donald trump. what does brent bozell have to say about that next.

before i had the shooting, burning of diabetic nerve pain these feet... kicked off a lot of high school games... ...built a life for my family... ...and liked to help others in need. but i couldn't bear my diabetic nerve pain any longer. so i talked to my doctor and he prescribed lyrica. nerve damage from diabetes causes diabetic nerve pain.

lyrica is fda approved to treat this pain. lyrica may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, muscle pain with fever, tired feeling or blurry vision. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs, and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. now i have less diabetic nerve pain. and it's great to help others get back on their feet. ask your doctor about lyrica. if you're eligible, you could pay as little as $25 dollars a month. yeah. well, we gotta hand it thto fedex. glasses. they've helped make our e-commerce so easy, and now we're getting all kinds of new customers. i know. can you believe we're getting orders from canada, ireland... this one's going to new zealand. new zealand? psst.

ah, false alarm. hey! you guys are gonna scare away the deer! idiots... providing global access for small business. fedex. >> all right. back to politics, a montana republican running for congress, body slams a reporter in front of a fox crew and cnn

reporter blames president trump. roll tape. >> do you feel you have to defend everything about this particular person in office. >> what does donald trump have anything to do with what the can candidate did. >> there are horrible people, the enemy of the american people. if you think that that doesn't have anything to do with it, then you are sadly, sadly mistaken, my friend. >> oh, all right. joining us now brent bozell with the media research center. all right, brent, what are your thoughts? cnn now-- six

degrees of separation. he gets blamed for everything. >> it's one thing if you disagree on policy and ideology. when you start talking about a sort of responsibility for any sort of violent scene or episode, it's taking us down a path that's dangerous. and that's where journalists, i

you shouldn't participate in a discussion on policy and your job to report t news and nothing, but that. and you've got cnn and msnbc -- look, i think that cnn is something like 37, 38 years old and it has become a national disgrace. it does nothing, but attack donald trump. he goes overseas, do you think, do you think, charles, for a moment that they've been ignoring his trip overseas. if trump had made a mistake instead of doing well as he's i

evidence. >> could it be a one-hour special? sounds like it could be between commercial breaks. >> they can't do it and think about the thousands of stories that have been run on these networks and the hundreds of hours they've spent, and yet, there's nothing, there's no evidence of this, disgraceful. >> brent bozell, you're the ultimate straight shooter and i always appreciate being able to talk with you. >> thank you, charles. >> let's check the futures, it's a great day for the markets at least at open. looking really good. near all-time highs across the board and your amazon story of the day, there are always several of them. get this, they're hoping a bricks and mortar store in manhattan. if used to be a bookstore they put out of business. talk about adding insult to

injury. more varney after this.

>> we get the latest read on economic growth tomorrow and yesterday we had on a former official from reagan's administration who said that we really don't need that high of growth. roll tape.

>> i don't think we need 4% growth to be successful, have a successful economy. >> why don't we have a 4% growth rate? what's wrong with it? >> because country is so weighted down with federal spending, right, that you're sucking all of that excess capacity out of the private sector into the public sectorment that's the problem. so you sort of get on a vicious circle here. i've got to cut taxes to feed the beast. charles: i want to go back to art laffer. what's your reaction to that? >> that's very true. we're having the strength sucked out of the economy because of government programs, higher taxes and all of that. we can have 4% growth easily, to be honest with you charles. january 1st, 1983 to june 30th, 1984, that's a 18-month period, a year and a half, we had an average growth rate there of 8% annualized or 12% total growth. those are chinese growth rates. we really can get very rapid growth if we start doing the

policies correctly and i think 4% growth would be quite doable for a long period of time, not just for a short period of time, and growth is just set. and trump has a very low bar, charles, very low bar. charles: but it's harder to grow, let's say a 20 trillion dollar economy than a 10 trillion dollar economy. >> that's true, but we've been pushed afurther south as an economy so we have it easier bouncing back. there was no bounceback with the obama recovery, none, and what we have is this very low bar which will give you quite rapid growth to get us up to normal and then level off. 20% would be amazing. 3, 3 1/2 isn't amazing. if we get it up to 2 1/2% and then bring the employment ratio back up again, we could get very high growth rates for periods of time of a year, year and a half, too. charles: i'm with you, buddy, why not 5% at some point in the future.

>> let's go for it, charles. charles: i've got the pompons on, i'm with you. the future indications, yesterday the s&p closed at an all-time high-- i'm sorry, the dow closed at second highest close ever, maybe a record today. we'll be right back.

so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver.

>> the opening bell is going to ring in 15 seconds. think about this, a week ago today, the dow was off 373 points. a lot of people were talking about the trump bumping and of course never gave credit to the trump rally in the first place. here we are today, we'll probably see the dow join s&p 500 and nasdaq in reaching all-time highs, at least early on in the session. the dow 30 being populated for the most part almost all green arrows, except for chevron and ge, which has a lot of issues that are not going to go away. now, one of the surprises today, encouraging numbers from retailers, some last night and some this morning. we do, obviously, admit that the bar has been set pretty low. nonetheless, they are among the biggest percentage gainers today. and then there's the retail killer, amazon, which is still near an all-time high and it's doing phenomenal and brick and mortar.

you've got to check out facebook, because their signing deals with fox and buzz feed, among others, to make shows for the services. and the cbo came out and sai 23 million fewer americans will have health insurance under the house obamacare replacement man. small movement in some of those health insurancers. positive signs for the economy and positive signs for the market, near all-time highs. john, what do you have to say about it? >> i don't think a lot of things have changed except for the s&p earnings, the best they've been in six years, but still, the u.s. market is the place to be. you look at the trouble around the world. you look at the fed keeping interest rates low. there's not much yield-- look shall the innovation that's happening in the united states. i think the u.s. market by comparison, it's the place to

be. charles: what do you say to the people the market is extended and the rally is long in the tooth and much of the trump agenda would be pushed off until next year? >> it's funny about valuations, that's about qualms for what, the last two, three, four years, hasn't it? this rally was supposed to be over quarters ago. i think john is right, i think the fuel for this fire is earnings and something that you and art laffer talked about some minutes ago. the market is not talking about today or not looking at today, not looking at yesterday. it's looking at tomorrow and looking at the pro business initiatives that we have coming out of d.c. finally, after eight years of oppression to the business community. that's what the market is excited about and that's what's going to take s&p prices higher. charles: and accelerated growth since march 31st, is that the kind of momentum to justify the

market? >> there are still good deals out there. i would say chips, you used to have to make an upside on personal computers, and now they're selling more silicon into cars and and chip makers, i think the company like analog devices and so forth. charles: adi. >> yeah. charles: some encouraging signs from the big retail names reporting profits. scott, is it a mirage or the idea that expectations were so low or maybe some retaers are getting their act together? >> you know, expectations are definitely low. i mean, if you ask anybody about retail at least in wall street. they're going to tell you that retail is the walking dead. the trouble is when expectations get low and the numbers like you saw today, you get a little bit of a bounce, they're heavily shorted names.

the death of retail is not exaggerated, it's not going to happen tomorrow, but soon. therefore when you're in these names and looking to pick these up. they're meanwhile a trade, not a long-term hold if you're lucky enough to get the beauties among the mines in the field, good luck to that. charles: john, what do you think? some of them are getting their act together on-line and finding ways to get us to go shop. >> yeah, look i'm with scott on this. best buy found a way to counter am zone, so has home depot, i've owned, and they're getting to give instructions in the stores, hard to get on-line. retail has problems-- at the peak of the recession, 6800 for a year. it's how you sell stuff. wal-mart was the retail killer and now it's amazon and now those two are competing against each other, wal-mart is doing great thing after the

acquisition of jet.com and the ceo is helping them with the on-line business, but those two together are going to cause a lot of pain for your brick and mortar retail stores. charles: bottom line from 1970 to 2015, malls grew at twice the rate of our population and maybe this was overdue. ashley: you know, for instance, guess, up 14% something close like that. yeah, 13 1/2% because they're not losing money as quickly as they thought we would. bear in mind, what's the strategy here? best buy has done well, but it's a struggle for the retailers, the brick and mortar stores to stop the bleeding. charles: i believe in ultimate destruction-- >> and like you said, we built too many stores and we need to get rid of some and the market will correct itself. when i look at the market each me amazon decides to go after share in a new market like clothing, that industry gets killed.

clothing is getting killed. charles: they've announced pharmacy and just announced furniture, so beware. >> charles, one thing that's really important to understand is amazon in the last 20 years, their growth rate right now is 25%. if that continues the next three, they will double the market in three years. they'll done in the next three years what they've done in the last 20 for retail. charles: it's an amazing story. so is facebook and they're not giving up on growth either. one thing they've done, they're signing with buzz feed and a whole lot of others and want to show video. jack, is that the way to go? >> i don't know. i like my t vchv personalities be vetted billionaires like yourself. i don't want any tom, dick or harry to show up on on-line streaming service. this is the way that services are going, especially among young viewers. >> i saw a survey yesterday on kids, 7 to 16. >> yeah. >> and what do you want to be

when you grow up, the number one job, a youtube star. ashley: and get anything. they've got stars with billions of viewers on youtube, we don't know their names, the kids do, because they watch them. charles: and amazon opening up a store in new york city. is amazon going back to the future? this he used to be a border's store that they put out of biz. >> i mean, what a message. we're going to put you, borders, out of business and when you're gone we are going to move where you were because you couldn't sell enough of your product and we're going to sell the same thing, pretty much. it's funny what amazon is doing, there's actually one, an amazon bookstore near my house in chicago here and i tell you, the first few times i went there, it was jammed and the reason is, it's because they're also selling prime memberships there, trying to get a lot of prime signups, you do and you scan the book on your phone and realize how much more of a great deal prime is. they believe not so much the

book, but this is the gateway drug, i guess, to a prime membership which therefore opens up tons of spending as you see come in through their prime memberships and that's going to uk more of the amazon eco sphere, so to speak. >> because of the high-tech names, we've got a race. amazon and race to race, which hits $1,000 a share first? >> it's kind of tough. the valuations are different. google has almost 50% more valuati valuation. 680 to over 400 for amazon. and hitting it first, is a number. flip a coin, i think it's google. charles: scott, what do you think? >> i think it's amazon. here is why. you know, when you're talking about short-term price targets, i think both will hit a thousand by the end of the quarter, june 30. just on charts, you're a chart guy, there's a touch, a smidge more momentum in the amazon

upside price and i'd pick amazon to get a thousand before google and we own both. >> john, i'm sorry you're bigger, but the answer is amazon. the earnings estimates. >> thank you, jack. >> that's a great sign investigators love when that happens, that means that amazon is spending money on something that's going to reaccelerate their sales growth. who cares about earnings when they look at amazon. the stock is about to head higher. charles: let's check on the big board. again, this could be a historic day. we're up 55 points for the dow, well above 21,000 right now. it's sort of spinning our wheels for the strong open waiting for the next wave of buying. nasdaq, take a look at that one, as well. nasdaq up 15 points, it's obviously been the juggernaut. yesterday, nasdaq was joined by the s&p 500 which found a way to hit a new all-time high. and after the fed report. and janet yellen more or less promising wall street she's not going to mess up the rally and

that got them to rally. and hormel makes spam or skippy, that's not my fault, guys, i'm keeping up my end. bargain. >> not together. >> they say they're good together, first fry the spam and then the skippy. and these jewelers, the company trips over itself. those are down. oil, an interesting movement. it's below $51 and this despite the fact that opec-- because opec rules out deeper cuts although they'll extend the cuts they've got going on, ashley. ashley: 1.8 million barrels per day, it was suppose today run out this production cut next month and they've extended it through 2018, nine months, and it's going to be deeper. the problem is for opec and that the u.s. and others are spupg o--

pumping out oil, and we're swimming in it right now. it will take a while to work through that. so opec, its influence continuing to weaken. charles: john, at one point the u.s. producers should put on the brakes as well. we brought back a lot of rigs. >> yeah, we did. it's going to be all dependent on oil prices. that's why i think we're in a trading range. if it's low enough, you have mainly the shale oil will quit producing and if it's high enough, shale oil, it's now the swing produce r just like ashley said, saudi arabia. you look at production in opec and what they're going to do as far as cuts. you can't trust any of these guys. charles: thank you very much, john, scott and jack, really appreciate it. well, we're learning more about the terrorist who blew himself up at a concert in the u.k., killing 22 innocent people. he fought in the libya militia as a teenager and his family

knew all about it. ambassador john bolton is next.

>> let's check on the big boards. dow 30 stocks doing fairly well. up 51 points. we broke 21,000 yesterday, we're holding above it today approaching a new all-time high. i want it take a look at shares of tesla. reports of unsafe working conditions at one of its plants. nicole petallides has the details. nicole: good morning, charles, nobody wants to hear about unsafe working conditions in any way, shape or form. tesla acknowledges that the ratef injury durinthe years 2013 through 2016 was higher than average, but at the se time, elon musk and his team say that some of the numbers are false. i will say that tesla is the

only auto maker that's not under union rule there, and actually they have been looking into unionization by some of the workers. there's an area of serious nonfatal injuries that they say was 69% higher than in 2014. what has tesla done? they've brought in a third shift of workers. they're learning a new way to become a car company. they have to pump out that model 3 sedan. so it made kind of changes and they said for the first time they're above the working average. tesla no more hurt workers, back to you. charles: now to this, the manchester bomber apparently wasn't the only member of his family to harbor extremist views. libyan officials arrested the suicide bomber's and two brothers. bring in ambassador bolten. what do you say to this? >> we don't have all the facts,

but what the authorities have uncovered so far i think is important that this suicide bomber was clearly part of a larger network. it's typical to use family structures, those are the people you trust the most. i think we are going to hear more. isis took credit for this early. i don't believe everything that they say to say the least, but isis' reach, and the potential for more attacks, that's why i think that the brits have moved to the highest level of alert because they clearly see the possibility of more incidents coming. charles: yeah, i think so far eight men have been detained and one woman brought in. she's since been released. and this net gets wider and wider, larger and larger. there's even a report that this have abedi went to germany days before this, suggesting this is a terror network not just in

the u.k., but a larger european-wide terror network. >> yeah, i think that's clear. look, isis and others have been pushing these people out into europe, out into the united states, refugees from the conflict in syria, from the anarchy that's engulfed yemen and somalia and libyan, recruiting in the communities, in europe and in the united states where muslim either immigrants or refugees already were. that's one of the things, i think, is a problem for great britain and for us, because it's not simply people who have come here in the last year or two years. if you go back to the transportation bombings in london in july of 2005, over 80 people killed. and the perpetrators there were all people who had been born and raised in great britain. they've seen the benefits of the free society and reject it had incredible though that may be. so you have a combination of recruits, trained and deployed to isis, moving into communities where radicalization is already

underway and the potential for really dense, complex etense seive networks is real. charles: one more for you, ambassador. president trump will attend his first nato summit today. he was critical of nato throughout the campaign. what do you say now about his new position and the fact that he's gotten nato to come around on some important issues? >> well, i think that nato is the most important, most successful political military alliance in human history so i'm glad the president and nato are aligned. there's reporting from europe this morning that france and germany have dropped their objections to nato taking a formal role in the conflict against isis, something the trump administration had proposed. i don't know if that's going to prove out accurate the nato meeting the president will be attending. but if you had a formal declaration of nato, it's prepared to step up against isis, that would be very significant. charles: there was a point, as successful nato may or may not have been in the past,

recently, in the more recent times that it needed to be refreshed for the new threats that emerged in the world. it's no longer us versus communist russia. >> and i think what the president said about nato meeting commitments and they took voluntarily 2% of gnt on defense and something they need to do and nobody that's dealt with nato doesn't appreciate their decision making sclerotic on a good day. nato does have to move into a new era. i'd like to see nato expand its reach even more broadly around the world and bring in other members, maybe from the pacific, japan, australia, singapore perhaps. i think that all ought to be on the table. we need nato, but there's no doubt, it could stand a lot of improvement. charles: ambassador bolton, thank you very much.

and there's a look at this, we'll show you how this works. a texas sheriff getting blasted by the left for a facebook post he made after the u.k. terror attack. his warning, quote, this is what happens when you disarm your citizens. we're talking to that sheriff in the next hour.

♪ there's nothing more important than your health.

so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network... because there aren't any. so don't wait. call now to request your free decision guide and find the aarp medicare supplement plan that works for you.

there's a range to choose from, depending on your needs and your budget. rates are competitive. and they're the only plans of their kind endorsed by aarp. like any of these types of plans, they let you apply whenever you want. there's no enrollment window... no waiting to apply. so call now. remember, medicare supplement plans help cover some of what medicare doesn't pay. you'll be able to choose any doctor or hospital that accepts medicare patients. whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row. duck: quack! ca to request your free decision guide now. because the time to think about tomorrow is today.

>> and now this, our next guest is a former navy seal who started a multi-million dollar bottle opener company and now focusing his efforts on getting veterans hired. come on in, eli. i want to let you know, you served with the late chris kyle as well. >> absolutely, chris was my boss for two years. thanks for having me, charles, it's great to be here today. charles: this week makes it extra special. tell us about the company though. >> absolutely, we're made in the usa, veteran-owned brand operating out of tucson and happy to be here today and showcase the stuff that we've got for father's day. i guarantee if there's a dad in your life, a guy in your life you're looking to buy a gift for you're not going to be disappointed going to our site. charles: can i check out the yellow hand grenade? maybe i'll buy myself.

>> we call this the pineapple freedom, and opens your beer. charles: how are sales? >> we went on shark tank and we're about to hit the 13 million dollar mark. charles: 13 million. you've got your company and some things that are near and dear to your heart. >> the reason i came to new york, i'm support ago group that take 37 special op operators from, tech, finance and entrepreneurial field to show them opportunities when they get out of the military and help turn the next chapter of their life and enjoy the success that they deserve. charles: so, you came out of the military and you have this idea and you also had the ability it go out and make it happen. you know, we hear about 20 vets killing themselves every single day and we know for a lot of the public, they've turned their backs on them. the ultimate goal for you to help them turn their lives around.

>> we have half a million unemployed veterans in the united states. and it's important that we grow our business and use our platform to help these guys find work. it's one thing on memorial day to say let me buy you a beer. and it's next for the transition in the next part of their life. charles: thank you, and you contribute a substantial amount of money to vet organizations from your sales. >> absolutely, thank you, man. charles: congratulations. president trump attending the nato summit in brussels. terrorism the focus. and we'll take you there live when it happens. more varney after this.

. . . . new flonase sensimist changes everything.

charles: happening right now, president trump attending the nato summit in brussels. the major topic in focus, terror and europe's open borders. the president is about to

speaking with german chancellor angela merkel. we're also hearting that british prime minister theresa may she might confront the president about intelligence leaks at the white house. we're going to take you there live when it all happens. new developments on manchester terror attack it, at least eight arrests related to the bomb having been made. get this, the bomber previously fought in libya before traveling back to the uk. later is hour, a texas sheriff haa warning for all of us. this is what happens when you have open borders. coming up at 10:45, a new kind of security scanner. it can scan 600 people in an hour. it can detect bombs and weapons hidden underneath the suspect's clothing. we'll demonstrate it for you live because we have it right here. the second hour of "varney & company" starts right now. ♪ charles: checks on the big board, we opened up strong and

we're holding in there with the latest gains. the market looking real strong here. we've got the latest read on mortgage rates. ashley. ashley: 3.95%. not bad, the lowest level of this year, 2017. it is still cheap to get out there to borrow money, if you can get a mortgage. charles: that is a different story all together. thank you very much. ashley: sure. charles: right to the story of the hour, president trump meets with nato. sebastian gorka joins us now, president trump's assistant on foreign policy we know terror will be the focus especially what happened after manchester. do you think it changes the conversation? >> i undoubt he hadly think it will focus minds of nato allies, leaders and specialists involved in the meeting absolutely. nato was the most successful military alliance in modern history, for one very specific rhine. it had a shared threat perception from all it is members. whether you were belgium,

canada, luxembourg you agreed, soviet union and communism was a threat to western civilization. now these nations will be coming together to discuss the threat posed by global jihadism, what the president rightly called radical islamic terrorism. charles: sebastian, what i read, perhaps germany and france will make some sort of cursory nod that nato should amend its mission statement to unconclude terrorism but they won't be serious about this listen they had the election in france. maybe they will take that as a signal their citizens aren't ready to make such a dramatic shift? >> i'm not here to talk for the leadership of france or of germany. i know the president will be meeting with macron. they will be discussing issues of national security together. there will be a private dinner with key nato leaders also as well as eu leaders separately. so it has to focus, the events

of manchester, the attacks in france, the attacks in germany, these are all have to be discussed and new policies, new approaches i know will be on the table because article 5 is not about the soviets rolling through the folder gap. article v, the common defense has to be about things like isis and al qaeda. charles: sebastian, please stay right there, i have doug schoen fox news contributor, former clinton pollster. we're hearing reports that theresa may confront the president on intelligence leaks. >> first on something like that i can completely understand. if our intelligence is not sacrosanct, that what we collect and what we receive from our allies we have a terrible, teleroem. lookthere has been an issue. it is not worth going through litigating it again but suffice it to say every right-thinking american wants intelligence to stay secure, private and only for those who it is intended.

charles: one more for you, sebastian, the manchester bomber slipped through the cracks. there were red flags there. we've seen the same thing happen here in america at some point authorities, this person became a person of interest and just for whatever reason, whether it is political will, whether budgets, constraints, police constraints, technology constraints we just did not follow their attacks. >> well this is a very disturbing trend, not just in the uk but elsewhere. the question of individuals that have somehow got on to the radar screen, whether through their associations, what they said on social media or travel. the question of them not being actively pursued later or monitored, the bottom line is, it takes 20 people minimum to surveil somebody physically if they're a suspect or person of interest. that is a lot of manpower. you start multiplying number of people who traveled to libya, syria, iraq, come back. we're talking about manpower

issues as well as policy issues. charles: sebastian, so far the president's trip has been unmitt unmitigated success despite lack of coverage here in the united states. two hours ago, former president obama had an event with america americas. in his commentary he used hot button words, xenophobia, nationalism, intolerance, anti-democratic trends, saying quote, we want hide behind walls. president obama feels like he is trolling president trump on first foreign trip, first most important trip to europe. any thoughts or comments on that. >> very simply, with us one. he is trying to cover himself for eight years of catastrophic, counterterrorism policies and feckless foreign policy that created vacuums across the globe into which bad guys stepped, whether east sis or peer competitors. he have to say what he is saying

now because he made the world a more dangerous place. the world is on fire. there are 65 million refugees in the world today. that is record. there were less refugees in 1945 at the end of world war ii. this is what the trump administration inherited but we're jettisoned those strategies. you heard the president make the statement in riyadh and made the statement that the policies of last eight years are utter failure. we'll take the threat seriously and president will obliterate groups like isis. charles: sebastian gorka, always pressure to have you on. >> my pleasure, things. charles: democrats slam the health care plan after the cbo released score. listen to what senate minority leader chuck schumer had to say. >> the report makes clear, that trumpcare would be a cancer on the american health care system, causing costs to skyrocket, making coverage you know

affordable for those with preexisting conditions and many seniors and kicking millions off their health insurance. unless you're a healthy millionaire, trumpcare is a nightmare. charles: remember when former president bill clinton said this during the 2016 campaign about obamacare? roll tape. >> so you've got this crazy system where all of sudden 25 million more people have health care and then the people are out there busting it, sometimes, 60 hours a week wind up with their premiums doubled and their coverage cut in half. it is a craziest thing in the world. charles: let's bring back doug schoen, author of the new book, "america in the age of trump". dug, bill clinton was talking about in kansas in 2013, morningly plan was on average $231. now $476. indiana, 242, goes to 421. wyoming goes to $6124. west virginia, 260-dollar plan,

now 700 bucks. do you really have health care when you can't afford the insurance. >> you don't, and that's why most of us democrats believe the answer is not to repeal obamacare and replace it with a system that knocks 23 million people that the president was alluding to off the system, gets rid of $800 billion worth of medicaid expenditures that people have come to rely on of the answer is to try to fix obamacare, hold down costs and encourage competition across state lines, but a repeal and replace arguably, charles, could be worse than what we have now. charles: well it can always be worse but whatever happened to the notion that we're talking essentially about people who can not afford health care. >> sure. charles: what about the notion of growing an economy with a smaller government, allowing the resources of this economy to go into the private sector and maybe then more people could afford their own insurance and government would have to play a smaller role? this hill, this is slippery

slope taken us to this dangerous point. >> i would be thrilled if that happened but i don't think we're going to get anything beyond 2% growth if err lucky. all the estimates that i see suggest that will not generate enough revenue to achieve the goals you're saying. charles: personal responsibility, that has come up a few times. some people have been more blunt bit than others like representative mow brooks in alabama. that kid running around with 300-dollar belts on, you can't afford health insurance, why should someone else pay for it? >> i don't think most of the people who have gotten health care with obamacare are running around with 300-dollar belts. of course i in personal responsibility. but i believe in giving people a chance to get ahead and meet their needs and requirements. i think this legislation that is the president proposed too far and cuts too much. charles: you talked about getting rid of borders and creating more competition. that is not the official democratic policy. >> right. that's correct.

charles: what are the democrats who hold elective office now going to make this better? >> well, there is some beginning in preliminary talks in the senate to get a better bipartisan bill done, but candidly, charles, my party is much more interested in resisting than cooperating. for us to achieve what you're talking about, we need bipartisan consideration of fixes to obamacare, that will empower people, make sure those who need care get it and those who don't need it don't. charles: doug schoen, by the way, congratulations on the book. >> i appreciate it, charles. charles: next story. the tsa updating the screening rules. h, you have the details. >> interesting. no big surprise, ever since airline brag gauge fees gone up and up and people are responding by stuffing their carry-on bags during the process but what happens it slows down the screening process when you travel. you put the bag stuffed it so

full that screeners can't get a good look what is inside. paper covers a lot of things. if you have any chocolate in there, that looks likes an, explosive, it slows everything down, then authorities have to get the bag out and rest of it. what they will do have more items having to take out of your carry-on bags put into trays. sounds bad, i know, but theory being, that will save time on the other end when they do the screening. so all food, all electronics, larger than cell phones have to be placed in bins. this is only being tested right now, but you know, as we gear up for the fun and games of summer air travel this could make it even more frustrating. charles: sounds like a headache in the making. thank you. up next, the texas sheriff who has a warning if we have an open border policy we are inviting terrorists in. that sheriff reacts to this next. >> we stand in absolute solidarity with the people of the united kingdom. so many young, beautiful,

innocent people, living and enjoying their lives murdered by evil losers. ♪ here comes the fun with sea-doo. ♪ ♪ sea-doo has the most affordable watercraft on the market. starting at just $5,299 and get 0 percent financing. visit sea-doo.com today. ♪ edictable. the comfort in knowing where things are headed.

because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future.

charles: looking at live picture, nato brussels headquarters in belgium. president trump, a lot after stake here, nato key european members whether they embrace president trump's two main issues. paying their fair share, 2% of their gdp addressed to defense issues. already sort of changing if you will the mission statement. again nato was designed to fight back the threat of russia, communist russia, that was a major success, threats coming from outside of the countries, particularly within the countries, including radical islam. ashley: he called nato obsolete during the campaign. since gone back on that. he will have pretty tough questions.

he will have to deal with british prime minister theresa may going after him what is wrong with your intelligence services leaking all this information including pictures of the bombing suspect in manchester? the brits very upset about this apparently caused distress with families of victims, he will get an earful from theresa may. full day for the from the president. charles: certainly is. this is what diplomacyall about. watching president trump on the maiden voyage as president of the united states, commander-in-chief, nato a major issue, a big issue. we just, we just had a few -- ashley: other big issue, they pay their fair share. charles: 2%. ashley: 2% of gdp. some are, some are not. let's be clear on that. charles: most are not. ashley: yes. charles: all right. take a look at this, a texas sheriff making headlines after condeming the terror attack in manchester. ashley, what exactly did he have to say?

ashley: denton county sheriff, tracy murphy went off on a rant if you like and posted these comments. i think we've got an excerpt for you. it says, he says, "pay attention to what you see in manchester, enand, tonhtpay attention to what is happening in europe. is is what happens when you disarm your citizens, when you open your borders without the proper vetting, when you allow political correctness to dictate how you respond to an enemy that wants to kill you." very pointed comments. charles: look who joins us now. come on in sheriff tracy murphy, denton county, texas, sheriff. sheriff, you got a lot of pushback on the comments. what are your thoughts now? >> i stand by my comments. i really thought they were on target. i thought i was, basically repeating what many people have been saying for years. i was angered by what i saw in

manchester. children being killed. i have kids of my own. it was a, made me think of them and schools and people i have sworn to protect. i just feel like the, what the politicians and governments have allowed to happen in europe, and for the past eight years here quite frankly, can't stand. charles: you know, it is interesting because manchester-born rocker morrissey, said the exact same thing in a different way, more or less pointing to the fact that those same politicians, they're always safe, always surrounded by people with guns. they always live in protected homes. they're never targets of these sort of hideous attacks. so a lot of people believe the way you believe but what about the notion you would take so much heat for voicing your opinion? >> yeah, that, that shocks me. i expected a lot of criticism from the left, from liberals, but i expected that more locally than worldwide.

i don't understand why a texas sheriff's facebook post has gone worldwide. i received emails from across the world. 99% supportive. i received many from manchester itself, supportive. i received some condemned me for what i said. you about i think, political correctness is one of the reasons that these things happen. people are afraid they're growing to be called what i have been called, a racist or ismophobe or hate mongerrer. people don't s out because they don't want to be called these things. i'm not afraid to be called those things. i'm not that. i just speak the truth. charles: sheriff murphy, do you think ultimately we'll have to do more than just speak out and take some actions that you talked about, that you espoused before these things are changed or will have to as many politicians try to tell us, convince us, just live with this from now on?

>> we can't live with this. that's ridiculous. you know, since september 11th, we said we'll never forget. well, we've forgotten. it is time we did something about this. it is time we don't worry about if we're called names, that we take action, that people understand that if they see something, if they need to report that. and governments can't be afraid they are going to offend people to protect their citizens. it is outrage just. it has -- outrageous and has got to stop. charles: sheriff, one of the reasons a texas sheriff garners so much attention is because your state is at the forefront and fight against illegal immigrants here in country, against the crime committed by the gangs, particularly ms-13 and others, and of course recent legislation that has passed but do you think that is the perfects are pefor rewriting, if you will, what is going wrong in the west, not just in europe but

also in this country? >> absolutely. if, you know, the left wants to make border security a race issue or religion issue. until people understand that it's a protection issue, it's a national security issue that's ms-13, terrorists, that other people who want to come into our country and cause us harm are pouring across our border, and federal government has failed miserably on securing our border and our governor and our state are doing best they can with state troops and rangers with the border patrol and i.c.e. to stop the flow of these folks coming over, and you know, the president is called a racist because he wants to build a wall. it is not a wall to keep people out. it's a funnel to make sure we can vet the folks to see who is coming into our country which is what we have ever right to do. charles: sheriff, thank you very much for your time.

i appreciate you coming in. >> thank you for having me. charles: you saw president trump now entering the nato headquarters building there in brussels, belgium. this is his first nato summit. a lot at stake here. want to bring in lieutenant colonel tony shaffer who joins us now. colonel shaffer, what are your thoughts as president trump enters, enters this -- well, we're going to get tony a minute, but, ashley, a lot at stake here because the first part of president trump's trip was all red carpets and for the most part he wowed the saudis. ashley: sure. charles: there was a huge economic deal out of it. there was a huge defense component it to it. israel was thrilled, no president ever made them the first part of their first journey outside of the country. ashley: goes to rome, meets with the pope. charles: goes to the rome, meets with the pope. they exchanged books and bless santries, a 180-degree than we saw in the campaign.

this is more hostile audience. ashley: this is gettings down to business. he was on the campaign calling nato obsolete, saying they needed to pay their fair share as part of the u.s.'s overall help in the defense of the west. and he is going to get a lot of pointed questions. he a great negotiator. we know that. he will say look, pay your fair share. it is not our job to protect you, we'll help you as a group but you all have to pitch in. that will be number one for sure. charles: we do now have colonel shaffer? >> good morning. charles: a -- good morning. a lot at stake, fools like ashley speaking about president trump as a negotiator, that the give-and-take here will be president trump saying that nato is not obsolete. that we do need them. we want to be a part of it. nato for their part, hey, we do need to kick in our fair share. also amend a mission statement somewhat. understanding that the modern-day threat isn't a threat it was 50 years ago. do you think that will happen? >> i believe so.

one of the things i had published in fox news opinion is the idea of nato 2.0. the idea, president trump is askingo do more, why not build a betterato they want to pay for? you need to modernize, make it a product countries can rely upon and use for purposes of their defense today. of the today the two issues is cyber and terror. simply put, we believe, i believe, the nato 2.0 needs to retool itself to do heart tasks that individual police forces and the collective police forces of europe can't do. this is an example from manchester. look, this individual, the terrorist who conducted the attack traveled to libya and did a number of other things. frankly i don't expect manchester police to be tracking this guy. i suspect element of nation-state or in the case of nato, multiple nation states brought to fair, intelligence sharing, intelligence

collection, all we things we did during the cold war led to success in 1989. it led to collective success. nato has special operations forces. we need to consider using special operations forces out to take out terrorists in advance before they launch anything. the intelligence share something important. charles: intelligence sharing is important but being good stewards an holding on to the intelligence is critical. in the last 24 hours, there has been a serious issue particularly out of the uk with how we handled some information on the terror suspect, bomber and some. leaks. i want you to take a listen to what theresa may had to say about nato and intelligence-sharing. >> on the issue of the intelligence-sharing with the united states and america we have a special relationship with the usa. it is our deepest defense and security partnership that we have. of course that partnership is built on trust and part of that

trust is knowing that intelligence can be shared confidentially and i will be making clear to president trump today that intelligence that is shared between law enforcement agencies must remain secure. charles: colonel shaffer, i think she has an amazing point here. as they're trying to round up suspects involved in this terror network names are being leaked to the newspapers. certainly that doesn't help. >> well, look we've had this problem here for a while and you and i spoken about this several times. the bottom line i don't believe president trump, he is appointed to higfice was involved in a leak. this is the same issue we faced with, where did it show up? "the new york times." so there is a clue. we do have a problem with individuals within the national security infrastructure leaking information. and again this ought to be a call for us, charles, to redouble our effort to detect who those individuals are, and go after them. this is no small issue. the leaking of this name, those details about the attack does

hamper and slow down the ability of our ally, the british, to go after and investigate this. yes, she is completely correct. i've been in combat with the british via nato. we all, the five is, australian, new zealand defense force, canadians, british and us all share pretty much everything, almost everything. because we do it that way, the expectation that protection is respected. in this case someone leaked it, and i believe someone either obama holdover or someone more aligned with hillary clinton. charles: you know, ashley, the there has to be a purge there. you know, it is really becoming infuriating because, there is a, attacks are sort of, if you would delegitimatize, try to delegitimatize the election of president trump but now we're getting into areas that create danger, danger for ordinary citizens. ashley: yes, we know there's a problem. it has been well-documented,

everyone is wringing their hands saying we need to plug the leak. the latest one with the united kingdom and terror investigation is plain outrageous, quite embarrassing to be honest with you. president trump will have to say i don't know who is doing it but the guest is right. someone in there who is quite happy to share out this information, someone who is wanting to continue to discredit the security setup that we have in this country. you can't be leaking out that information. the name of the suspect. no one in the uk knew. it came out in the united states. pictures of this bomber's backpack. pictures taken from where the bomb went off ends up in "the new york times." how does that happen? charles: colonel shaffer, how hard is it? because regular folks out there don't get why there has not been a major pur? >> yes. charles: is it that difficult to track down some leakers, put some of them in jail, meantime purge all potential leakers out there and bring in president

trump's hand-picked team? >> the answer charles, it is a matter of political will. i have spoken with a number of senior members of president trump's intelligence team. i recommended very harsh applications of two things. first, for example, unmasking individual citizens, leaking of that, only handful of people have access. total of 10 to 15. so not that hard. on something like this it is equally small. the intelligence-sharing while extensive regarding working together, details like this are held very closely to only senior leadership. again we're talking about a group of less than 20. in my judgment, a matter of political will deciding you will do this. the third factor, who investigates? james comey, one of the reasons that james comey was fired he was asked directly by both president trump and by trey gowdy in congress, will you investigate this, no, i'm not interested. like having a garbage man will

not pick up your garbage. really? time to find a new garbage man to pick it up. that is what we need to do. you need someone competent doing these sort of investigations. the last factor, releasing, put it kindly, all those holdovers, technically career, political appointees have pretty much been pushed out. people basically converted from being appointee to career. those career folks in different intelligence establishments are ones leaking information. charles: it is pretty hard to get rid of those folks? >> it is not impossible. this takes political will. there are ways of doing it. my friend and mentor, john lehman, former secretary of the navy had similar issue when he took over the navy back in the '80s. there are ways of doing it. you have to be bureaucratically astute. severe-minded regarding application of rules, regulations. you just have to do it. charles: hold on a second. i want to the audience to know

that is the arrival of france's new president, macron, to the nato summit. hold on a second. looks like -- ashley: it is president? >> president trump and germany chancellor angela merkel coming out. ashley: yep. charles: everyone is meeting on the carpet here. macron goes first. merkel, some people may have comments on that of course. they have a special relationship to put it mildly, if you will. and now there is a handshake. really strong, vigorous handshake. ashley: lot of smiles. school photo as they say. charles: well this is what it is all about. there are some serious issues here that are going to, that is going to impact the world, the world's security, where we go from here. how we fight, the current-day scourges. ashley: what a modern-day nato looks like. charles: what a modern-day nato looks like. this is a big deal. this will probably be the most critical part of president

trump's trip which thus far has been extraordinarily successful. colonel shaffer, we're looking at president trump, angela merkel, they just both greeted macron who is theras well. wh are your though? we know that germany's interests, france's interests are not the same as america's on a whole lot of key issues here? >> right. there has been a competition, if you will, with the eu the eu, led by germany and merkel is attempting to do something called the european army. i always grin when i say it. like politicians with soldiers hmmm. what could go wrong? and that is what is exactly going on here. the whole concept is basically they want a separate european army which does european bidding. kind of like, no, i think redundant what nato is supposed to do. nato is the organization, condominium, the collective security organization that does that job. frankly put, i put in england, i

visited warwick university, susan evans was on question time with me where we talked about it in front of the student there and we talked about what does "brexit" mean for the future of england? because eu wants england to pay for this army before they leave and they want, they want to basically diminish the role of nato. frankly i can't speak for the british. context i have had on british multiple times, they're more of a mind to do what we're talking about, he reinvigorating nato, stepping away from merkel and e.u. because of "brexit" because it is the right thing to do. nato has a proven record, it played a huge role defeating the soviets during the cold war and kind of atrophied since then. why invent a european army to take away any potential rebuild of nato when you have a command-and-control infrastructure? you have british who will be outside of the eu they have

issues and requirements regarding collective security they bring along to the table. this is the biggs issue between france, germany and united states. what is going to be the future. will it be this eu army that nobody supports i who is competent or reinvigorate nato. charles: of course an eu army would exclude america paying any money. >> precisely. and our leadership. charles: and our leadership around intelligence capabilities perhaps. i got to tell you, i think the cracks in nato at least for me go back to when iran seized those british ships many years ago and england -- let's listen to angela merkel, because she will be the first to speak here. they showed us by the way photos of the old berlin wall as well. >> translator: dear colleagues, nato's new headquarters will be the future point of reference of nato. a modern building like the building of headquarters is a reference to the future.

however if we are to find con vicinitiesingances for the future it is good to remind ourselves what we achieved in the past and what we can build on. this fragment of the berlin wall embodies the history that during the cold war had left its mark on nato for many decades. however, this wall also symbolizes something that has been a dederming factor for my life for many years because i lived on the eastern side of the wall and it is the division of berlin. it is an expression of the fact that if we stand firm as did nato, if we can rely on the courage of our friends from central and eastern europe and from -- at the time, we can bring down a wall and make sitting to be remembered.

our alliance is united in the a awareness of the importance to cooperate if we insist on freedom and we also are united in the trust that it is not isolation and building of walls that make us successful but open societies that share the same values. ladies and gentlemen, with the end of the east-west conflict a new era began, a new era bringing new challenges and new dangers. we continue to be an alliance built on shared values, showing solidarity with its members. germany will never forget the contribution nato made towards making our country become reunited. and this is why we will continue to make our contribution towards security and solidarity as members of this alliance.

[applause] >> nato's greatest strength is the enduring bond between north america and europe. we saw the strength of that after the 9/11 attacks against the united states. president trump, those attacks struck at the heart of your own hometown in new york. and for the first time nato invoked our collective, our collective defense clause, articlv. one for all, and all for one. hundreds of thousands of

european and canadian soldiers have served shoulder to shoulder with u.s. troops in afghanistan for over a decade. to help insure it never again become as safe haven for international terrorists. it is our solidarity that keeps our nation safe, and when our open and free societies come under attack, we stand up for our values and our way of life. that is why a strong nato is good for europe and good for north america. the 9/11 and article v memorial will be a daily reminder of our vital bond and today we will commit to do more in our come mon struggle against. mr. president, a great honor to

have you here and great honor to give you the floor, please. >> thank you. thank you very much, secretary-general stoltenberg. chancellor merkel, thank you very much. other heads of state and government, i am honored to be here with members of an alliance that has promoted safety and peace across the world. prime minister may, all of the nations here today grieve with you and stand with you. i would like to ask that we now observe a moment of silence for the victims and families of the savage attack which took place in manchester. [moment of silence]

>> thank you. terrible thing. this ceremony is a day for both remembrance and resolve. we remember and mourn those nearly 3,000 innocent people who were brutally murdered by terrorists on september 11th , 2001. our nato allies responded swiftly and decisively invoking the first time in its history the article v collective defense commitments. the recent attacks on manchester in the united kingdom demonstrates the depths of the evil we face with terrorism. innocent little girls and so

many others were horribly murdered and badly-injured while attending a concert. beautiful lives with so much great potential, torn from their families forever and forever. it was a barbaric and vicious attack upon our systemization. all people who cherish life must unite in finding, exposing and removing these killers and extremists, and yes, losers. they are losers. wherever they exist in our societies, we must drive them out and never, ever, let them back in. this call for driving out terrorism is a message i took to a historic gathering of arab and muslim leaders across the

region, hosted by saudi arabia. there i spent much time with king salman, a wise man, who wants to see things get much better rapidly. the leaders of the middle east have agreed at this unprecedented meeting to stop funding the radical ideology that leads to this horrible terrorism all over the globe. my travels in meetings have given me renewed hope that nations of many faiths can unite to defeat terrorism, a common threat to all of humanity. terrorism must be stopped in its tracks or the horror you saw in manchester and so many other places will continue forever. you have thousands and thousands of people pouring into our

various countries and spreading throughout and in many cases we have no idea who they are. we must be tough, we must be strong and we must be vigilant. the nato of the future must include a great focus on terrorism and immigration, as well as threats from russia and on nato's eastern and southern borders. these grave security concerns are the same reason that i have been very, very direct with secretary stoltenberg and members of the alliance in saying that nato members must finally contribute their fair share and meet their financial obligations but 23 of the 28

nations are not paying what they should be paying and are supposed to be paying for their defense. this is not fair to the people and taxpayers of the united states and many of those nations owe money from past years and not paying over those last eight years. the united states spent more on defense than all other nato countries combined. if all nato members spent 2% of their gdp on defense last year we would have a north $119 billion for our collective twins and for the financing of of additional nato reserves. we should recognize with these chronic under payments and growing threats, even 2% of gdp is insufficient to close the

gaps in modernizing readiness and the size of forces. we have to make up for the many years lost. 2% is the bare minimum for confronting today's very real and very vision sure threats. if nato countries made their full and complete contributions, then nato would be even stronger than it is today, especially from the threat of terrorism. i want toxtend my appreciation to the 9/11 memorial and museum in new york for contributing this remnant of the north tower as well as to chancellor merkel and the german people for donating this portion of the berlin wall. it is truly fitting that these

two artifacts, now reside here so close together at the new nato headquarters. and i never asked once what the new nato headquarters cost. i refuse to do that. but it is beautiful. each one marks a pivotal event in the history of this alliance and in the eternal battle between good and evil. on one side a testament to the triumph of our ideals over a totalitarian communist ideology bent on the oppression of millions and millions of people. on the other, a painful reminder of the barbaric evil that still exists in the world and that we must confront and defeat together as a group, as a world.

this twisted mass of metal reminds us not only of what we have lost but also what forever endures, the courage of our people, the strength of our resolve, and the commitments that bind us together as one. we will never forget the lives that were lost. we will never forsake the friends who stood by our side. and we will never waiver in our determination to defeat terrorism and to achieve lasting security, prosperity and peace. thank you very much. it is a great honor to be here. thank you. [applause] charles: so we heard now from president trump who followed german chancellor america america. her focus on the past accomplishments of nato and the berlin wall while president

trump reminding us that 23 of the 28 nato members have yet to pay their fair share and it's a lot of money doing the math. it is $119 billion. imagine what that could have done for our collective defense and safety. of course his focus on the modern-day threat of terrorism, and the needs to protect our borders. so we saw them speak from different lecturns there, an also come at this issue from different points of view, setting the stage for what is going to be a historic nato meeting. i want to bring back in colonel shaffer. your thoughts on both comment from angela merkel and president donald trump? >> it is very clear. i appreciate angela merkel crediting nato for hard and effective work it has done over its lifetime. clearly germany benefiting more than other countries. let's face it. they were going to be the primary battlefield had the russians, had soviets come across. as a young lieutenant back in

the '80s, i trained in what we call the full ton gap scenario, we believed soviet tank armies would come through germany. this was no small issue. nato was effectively doing its job. as we know the wall came down in 1989. that is a long time ago. i look at comments of president trump and others talking about what needs to be done now. why do we do what we do and what is the cost? the threats are different but, let's face it. the russians are back. vladmir putin has been very aggressive in going into the baltic states, threatening them. he is attempting to annex more territory. there is the issue of crimea. there is the issue of ukraine. so we must taken main nato as a credible deterrent. and then adapt it to what it must do to protect the citizens of europe. again, charles, in the '80s, i was under cover in germany chasing terrorists. back then it was red army faction, the raf. they were he defeated eventually

by working closely between the u.s. and german intelligence forces and special operations forces. so the time again now is to refocus that. nato has not been pushing hard. charles: let me just ask though,. >> sure. charles: we saw the faces of theresa may, angela merkel and others, they didn't seem too happy with president trump bringing up amount of money they may have added to this. >> right. charles: earlier today barack obama was at an event with angela merkel where he said we're making a mistake by just only counting the budget, a defense budget with respect to contributions. it should include other things as well. what do you make of that sort of line of thinking? >> i think it is time for president obama to retire, i'm sorry. he is not the president. look, he is not being helpful here. i think we need to focus what is best for nato. i don't believe mr. trump is saying we can only require the standard measure of how effective you are by your budget but, the simple truth is this,

charles. as we, united states, those other the other eight nations are ones carrying the burden. either we're in this together or we're not. look, i'm all for, as we talked about early in the interview here, of reinvigorating nato, making nato something people want to pay for because they see benefit, but at the same time, the agreement was, each nation signed up and said we will pay a certain percentage of our gross national product to do this. so simply put, president trump is simply asking allies to come to the table and do what they promised to do. so i don't see somehow that is extraordinary or a challenge. that is the right thing to do. charles: colonel shaffer, what do you think will be the most contentious issue here? will it be issue around how to combat radical islam, not only in the foreign theaters in the middle east and elsewhere, but also the domestically, particularly as the issue of so-called homegrown terror

becomes more prevalent? >> let me answer that in the way i think most appropriate related to capability. nato has immense capability to share information and protect it for the most part. and actually work to implement special operations, and we have not done well in molding things together. remember, charles, the big failure of 9/11 was failure to share information. we in special operations and intelligence had indications al qaeda was operating here. we were precluded to share that with the fbi. that information never came together to create a critical mass of understanding. we want to prevent that from happening. clearly the events in england, france and belgium, all these attacks they were individuals were under the radar of law enforcement. so what are we missing? connection to a larger network. nato is suited to do hard intelligence collection operations to do a bigger map of the networks.

that is controversial, bringing nato capability to that challenge, but, charles, one that has to be done. charles: it has got to be done. colonel shaffer, we appreciate your expertise. >> sure. charles: walking us through all of this. wonder why i'm all of sudden in a hall, i want to bring in michael boeing begin, ceo of evolve. the company has a new security scanner. tell us what it does. >> it is designed automatically to look for mass casualty threats, the kind of thing we saw in manchester, suicide bombs, firearms but very high through-put unlike systems we are used to at courthouses at airports. will do 700 plus people per hour. charles: 700 people an hour. zooming through. >> zooming through, exactly. completely automated, red line, green light. most people come through, leave all things normally carry in your pockets. no more dog bowls to put stuff in. walk through, just at normal pace around system will

automatically be screening threats. charles: give me specifics. you say mass threat. what does that encompass? >> explosives and firearms primary at this setting. we can look for other objects. but if you're worried about train stations, stadiums, places where concerned about the crowd, then those are really the things that security professionals are most concerned about. charles: that is really compelling, mike, particularly the firearms part. if i have on a belt buckle, how will it distinguish a belt buckle, not a firearm? >> use combination technologies, millimeter wave imaging and magnetic field sensing to look for signatures from firearms and explosives. charles: i think you want to give us a demonstration? >> absolutely. jim is going to walk through. what you see as he walks through at normal pace. the system automatically scans him. sees a threat that he is carrying and you can see on the

screen here, that it is identified with a blue cross on firearm. charles: raised a red flag, pinpoints where the issue may be. >> that is exactly right. enables a guard to quickly resolve any alarm they might see. so that was a firearm. now separately the system is designed to automatically identify, explosives as well. so pete just came through wearing a simulated explosive device. so as you see here, the system place ad redbox on the image to let the guard know, now you're looking for something a little different than a firearm. resolution process could be excuse me, show me what is underneath your coat. charles: could this be used in airports or other things that they're looking for this doesn't necessarily check for yet? >> airport check point are lookinfor threats to the aircraft so it is a different set of concerns. what this system is looking for

and might be applicable is the front door of the airport. so after brussels and ataturk attacks, obviously manchester the most recent example, it's a soft target threat that folks are concerned about it. charles: right. >> where you are looking for that mass casualty. charles: it does feel like now the perimeters, don't have to be pushed out further. >> exactly. charles: you would probably push out the perimeter, whether a train station or concert hall further and have this as your initial scanning device? >> that is exactly right. what we can't afford to do is create another bottleneck. so we starte though we're a new company, my core team and i have been doing detection technologies over 20 years. we started evolv to completely eliminate extra security and eliminate bottle incomes that create larger crowds and larger wait times and quite honestly, new targets. charles: cost, have you sold

any. >> we have a system in the field. we're actively shipping units now. we're at entertainment venues. charles: around the world or primarily in america. >> around the world. charles: evolv problemly the perfect product unfortunately in the perfect time. mike, you we saw here reminder we saw different ways to keep americans and people safe around the world. thank you very much. >> appreciate that. charles: more "varney" after this. y unfold before your eyes. you danced in the mud, heard music from motown, you rode your bike for miles, as long as you were home for dinner. and sometimes, you defied the rules. so when it comes to your retirement... you're gonna make the most of it. retire smarter - wi a unie retirement tool

and available funds that grow over time. rere bolder - with no monthly mortgage payments and money you can use however you want. retire different. homeowners 62 and older, call one reverse mortgage today to find out how a reverse mortgage line of credit can help you plan and live your retirement. the equity in your home may help your retirement savings expenses or unexpected fun! call now to see if you qualify and ask for a free information kit, which includes two guides and a dvd that explain how a reverse mortgage line of credit works. a reverse mortgage line of credit first pays off your current mortgage, freeing up more money each month to live

retirement on your own terms. and while you're living your best years, you'll continue to own and live in the home you love. retire your way. retire with one reverse mortgage.

charles: 11 a.m. in new york, 8 a.m. in california. of course, we are on all the big stories of the day including president trump attending his first nato summit. the cbo saying that 23 million fewer americans would have health insurance under the obamacare replacement plan x. the latest on the u.k. terror attack. three members of the terrorist's family are now under arrest. and get this, the bomber fought in libya.

we're going to have a lot more on that coming up. here's what's new this hour. the federal government charging four people with insider trading tips on health care policy. and two items from california. a top earthquake expert is warning california's big one is overdue, and it's imminent saying people should start preparing right now. and take a look at this, also this california big landslide there burying a highway in more than 100 million tons of rock and dirt, adding to the state's record $1 billion in highway damage. and we're back to, well, to that report on concealed-carry permits topping 15 million last year. that's the largest one-year increase ever. later this hour we're going to speak to the head of the u.s. conceal-carry association on why this is happening. we've got a jam-packed hour. the third hour of "varney & company" starts right now. ♪ ♪

charles: start with a look at the big board. the dow barreling its way toward an all-time high to join the s&p and nasdaq which are are there. also want to take a look at oil. there was what might have been good news, about a nine month be extension in the peck cuts, but they -- in the opec cuts, but they weren't deepened. we have encouraging numbers from retailers, bucking the trend that we have been seeing for the most part. and some high-tech names all at all-time highs, google, parent company alphabet, amazon, netflix all, again, at new, record highs. just in the last hour, president trump calling out nato members for not contributing their fair share to their defense. roll tape. >> nato members must finally contribute their fair share and meet their financial obligations. but 23 of the 28 member nations

are still not paying what they should be paying and what they are supposed to be paying for their defense. charles: man, did you see the sourpusses there? golly, ashley, we know that's going to be the most contentious part of the trip, but he laid out facts. these weren't opinions. [laughter] >> i loved every second of it, they sat there basically being scolded, and no one better than donald trump to do it. by the way, he also got a little b at angela merkel by sayi thousands of immigrants have been allowed to pour into countries. we must be tough, strong and individual hasn't, so a -- vigilant. so a double whammy for merkel. also we just got a statement from the administration regarding those leaks of the investigation into the manchester bomber that's so upset the u.k. and they're blaming the u.s., and they're not going to share information with the u.s. anymore on that particular investigation.

here's the statement from the administration, it says. the alleged leaks coming out of the administration are deeply troubling. these leaks have been going on for a long time, and mr. trump says my administration's going to get to the bottom of this. so i'm asking the department of justice and other relevant agencies to launch a complete review of this matter. if appropriate, the culprit will be prosecuted to the full extent of the law, and there is no relationship we cherish more than the relationship between the united states and the united kingdom. charles: wow. i'm glad the statement came out, we needed it. >> yes. charles: health care, last night cbo said 23 million americans would not have insurance. grover norquist, president of americans for tax reform, joins us now. grover, i guess the score was more or less what everyone sort of thought it was, and it brings back the debate here, the

headlines all focused on the 23 million more americans who won't have health care, not the fact that obamacare has been an unmitigated disaster. >> well, it's worse than that. their numbers are nonsense. they might have pointed out that they claimed there would be 24 million americans in the exchanges now, and it's 10. so when you're off by those kind of numbers in predicting obamacare as it's supposed to be growing off by a factor of, you know, 100%, the then tell people that you know what's going to happen is nonsense. they say obamacare's going to have 18 million people in the exchanges next year if nothing happened. it's been going down from 12 to 10. they claim it's going to be 18? so from ridiculous numbers ty say it will fall. they also count the fact that more than 10 million americans are forced to buy obamacare because of mandates, and they wouldn't do it without the

mandates. so the if you take down the berlin wall, you announce that people have been denied east german citizenship. it's -- the way they put it out -- charles: right. >> -- is limited in their capacity. they're wrong about who gets what kind of health insurance. they're silent on the doubling of health care premiums as a result of obamacare for people getting individual insurance. i mean, obama said it was going to go down by $2500, it went up instead by roughly the same amount. charles: right. and, grover, to your point, blue cross blue shield just the latest insurer pulling out of obamacare, the company says it's lost more than $100 million in the last year over this, so obviously it points to sustainability. >> oh, absolutely. what we do get with the house proposal and the senate's working on coming up with their version of it is roughly a trillion dollar reduction in taxes, a little more than a trillion dollars in spending

restraint, and with health savings accounts and efforts to take people who have pre-existing conditions and get them insurance but take them out of the insurance pool so that you and i aren't paying higher premiums because somebody else has an existing $50,000-a-year problem, you take resources out of existing spending -- charles: right. >> -- and make sure that people can afford health insurance even if they have pre-existing conditions. so all of the concerns that people have raised are actually met in these reforms -- charles: but still, grover, last night no less than four republicans in the senate voiced some anxiety, if you will, with this cbo score in the house version of the house bill. >> sure. oh, if i was running for office, i would be very happy that an agency of government with a history of being wrong repeatedly and always in the same direction -- not sometimes one way, sometimes the other --

once again put out a flawed report with all the numbers there to look at. their claim is the number of people in obamacare's exchanges collapses, they're predicting it'll be a big increase next year. and then if you reform it, that imaginary big increase will disappear. my goodness. and if you don't force people to buy obamacare which they don't want and they only do it because they get find if they don't, when you let them leave, they announce, well, they've been denied insurance. no, they didn't want what the government had because obamacare, as you know, is a lousy deal. it costs too much and it does too little for you. charles: absolutely. by the way, you know, the big day for the markets and the economy and a central issue here has always been jobs. and, of course, it's a major shift in the job market because of automation. i want to look at some of your tweets on this topic. the first one, 1990, 70% of americans worked in agriculture, mining, construction and manufacturing, 2017, 14% of

americans now hold such jobs. what percentage of that is trade, which percentage is automation, grover? >> well, what you see -- a lot of it is improved productivity. you have more -- fewer people producing more. it is exactly this -- in manufacturing what happened over a longer period of time with agriculture. we produce much more food today with 1 or 2% of the population in agriculture compared to turn of the century when you had 70 and going in the past 80 and 90% of the country on the farm. so the good news is we produce more food with fewer people, more manufacturing goods with fewer people which allows you to have more people doing new and interesting things -- charles: so then let me jump in -- >> yeah. charles: the question is, will technology kill our jobs? your tweet, you're saying war code -- bar code scanning since

1990, number of cashiers increased, so even with that technology initially people said it could be a job killer, we saw growth. >> yes. charles: are we overconcerned about all of this? >> i'm not. but the worrywarts are. the people who can't imagine a dynamic economy, who don't understand -- who predicted uber or lyft or airbnb? there's 700,000 people on uber, 150,000 on lyft. these are jobs that ten years ago not only didn't exist, they weren't imagined. all of the americans who are now working in fracking and the tremendous increase in oil and natural gas that we have. we were told in 1980 limits to growth. remember peak oil? how many times have we hit peak oil? charles: yeah. every decade. >> people who bet against the market, who bet against american ingenuity have always been wrong. they're wrong again.

charles: you mentioned uber and lyft, and everyone knows they're ultimately going to go to driverless cars. in one of your tweets you say will robots steal our jobs? since 1990 the number of atms have risen from 100,000 to 425,000, and the number of bank tellers rose from 400,000 to 500,000. what about replacing rosie the riveter from the jetsons? >> well, minute has to make rosie from the jetsons, somebody has to maintain rosie. i think every time we've moved forward on new technology -- this is roosevelt, franklin roosevelt's wife went around saying in 1949 it's, we've done enough on technology and innovation. let's just get everybody employed now. we'd all be working with shovels, you know? [laughter] the luddites are always wrong. now, this a closed society -- in a closed society, maybe in north korea every time you have a new piece of equipment you put

somebody out of work. but in a free, open and dynamic economy? when minute does something that frees up two people to do something else, they can do something else. and there's a wonderful, very interesting policy that only mark penn was telling me about, democratic pollster. 6% of americans when asked would you like your children to work in manufacturing, 6% say yes. so we keep talking about -- and if you go back 30, 40, 50 years, everybody talked about how much fun it was to be on the farm except many people given a choice choose not to live on a farm. they want to live somewhere else or do something else. charles: grover, thanks for bringing those up because a lot of people are anxious and nervous about it. thank you very much, buddy. >> you got it. charles: well, the democrats are slamming the gop health care bill. we're going to tell you what they said, but remember when bill clinton said this? >> so you've got this crazy system where all of a sudden 25 more million people have health

care, and then the people are out there busting sometimes at 60 hours a week wind up with their premiums doubled and their coverage cut in half. of it's the craziest thing ine the world. instead of allergy pills. it delivers a gentle mist experience to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist changes everything.

juswho own them,ople every business is different. but every one of those businesses will need legal help as they age and grow. whether it be help starting your business, vendor contracts or employment agreements. legalzoom's network of attorneys can help you every step of the way so you can focus on what you do. we'll handle the legal stuff that comes up along the way. legalzoom. legal help is here.

charles: check out apple. the tech giant says it's giving the government a record amount of user data. >> yeah,, it's a national security request that companies like apple get, and they're not allowed to say, per government rules, exactly how many they got. they can only give a range. in the second half of last year, apple received 5,750-6,000 requests, okay? somewhere in there. now, what's significant about that is it doables the number -- doubles the number it received in the first part of the year. they get them from around the world, as you can imagine. 115 requests from the government of japan, 159 requests from germany. and they'll look at these. the they believe that it

discover tens the bounds of privacy, they will reject. that doesn't happen very often. but they do have the option. they have to prove their case. charles: thank you very much. >> yeah. charles: now this, president trump spooking last hour at the nato -- speaking last hour at the nato summit. listen to this. >> over the last eight years, the united states spent more on defense than all other nato countries combined. if all nato members had spent just 2% of their gdp on defense last year, we would have had another $119 billion for our collective defense and for the financing of additional nato reserves. charles: joining us now, special report host bret baier. bret, president trump having an extraordinarily successful foreign trip thus far, but he's facing his harshest critics and probably toughest moments here

with this nato summit. >> that's right. good morning, charles. i tell you, it was an awkward moment, clearly. you could look at the faces of those other leaders9 that nato meeting as he was kind of calling them out. but the bottom line here is no one should be surprised. the white house forecast that this is what he was going to do. there is a lack of paying their bills. there are only five countries in the 28 nations who actually pay what they promised to pay, 2% of their gdp for defense-related tied to nato. the u.s. pays 4%. and this goes back years and years where they haven't paid the bill. donald trump is sayingst time to pay -- is saying it's time to pay the bill. and it's awkward, it's painful for some of those leaders to hear it, but he is the disrupter and promised to be, and this is him. the rest of the speech though, charles, obviously tied to fighting terrorism and unique bonds that he's made on this trip with saudi arabia and

others that he thinks are going to bear fruit down the road. charles: and very complimentary of king solomon and saudi arabia as well. it looks like he's established another relationship that had fallen through the cracks with president obama. i want to go back to theresa may who looked very, very upset, in part because of what's happened after this bombing in manchester. but i want to also show where she and president trump, they did have a chance to talk a little bit. okay, so we see it right there. what do you make of this? i mean, obviously, they have a great point. they're in the midst of an investigation of a terror network, a horrific bombing that kills 22 people and our media, particularly "the new york times," spewing information about it as it's going on. >> yeah. the intelligence leaks are a big problem, and they're a big problem here, they're a big

problem when you're dealing with something overseas that gets leaked here, and it is a problem that the president, this white house says they are empowering the attorney yen to go after -- attorney general to go after and to look for where these intel leaks are coming from. this is significant, if you think about it. it is sharing intelligence that potentially affects an investigation that is ongoing currently looking for a network of terrorists behind that manchester attack. that's something that theresa may, rightfully, is upset about, and the president is acting on it. charles: i agree. i want to ask you about the democrats because they're slamming this house republican health care bill after the cbo released their score last night. listen to what senate minority leader chuck schumer had to say. >> the report makes clear trumpcare would be a cancer on the american health care system, causing costs to skyrocket, making coverage unaffordable for

those with pre-existing conditions and many seniors and kicking millions of their health insurance. unless you're a healthy millionaire, trumpcare is a nightmare. charles: what are you thoughts -- your thoughts, bret? >> he's a good rhymer? [laughter] no, i think he clearly is making the case that democrats are making, they're using the cbo report. you know the cbo is like a calculator, what you put in, you know, you get out. they do the math. it's not always 100% accurate, especially -- it's not even very accurate at all when it comes to analyzing how many people have insurance and how many don't. this were off by more than 10 million with the obamacare cbo. i think that what the republicans are saying this response, charles, is obamacare is falling apart. it is going to disintegrate. this is better than that, and it's not great, but trust us, we are going to, you know, make in this better.

the senate, however, is probably going to be looking at a different bill -- charles: yeah. >> -- than the house bill. charles: yeah. so the republicans, first, are going to have the convince maybe the republicans. >> right. charles: thank you very much, really appreciate it. >> see you, charles. charles: a top earthquake expert has a warning for california. he says the big one is overdue and imminent saying people there should start preparing right now. detail next. and a new study has revealed that the number onety for young people to start a career, well, tell you what, i'll let you guess. think about it and we'll tell you when we come back, next. ♪ ♪

charles: and thousand or for some -- and now for some headlines. new report says houston is the best place to start a business. take a look at this, a landslide in california bury aring a highway in more than a million tons of rock and cutter, bringing the state's highway damage to a record $1 million.

california has been pummeled by landslides after having one of its wettest winters this decades. and, well, that's not their only problem. a top geologist there warning california's big one, well, it's imminent. it's finally going to happen, saying people should start preparing right now, ashley. we've heard this before. >> we have, and that's part of the pblem. seismologist lucy jones giving a speech, and she was saying, look, you can't see it, it's unknown, it's unknowable, but it's a very real threat. the last major quake on the san andreas fault was in 1857. they are overdue. he said the time to start preparing is now. charles: all right, we'll see. we are learning more now about that u.k. terror attack. three members of the bomber's family are under arrest. the bomber himself, he fought in libya. fox news' gregg jarrett is next.

charles: here we go, it's 11:30 a.m. check the big board, look at that, we're right on the cusp of