new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov >> have a great day, everybody, here is "varney & company" and stuart, over to you. stuart: thanks, maria, indeed. now, a shift on terror from defense to offense. democracies confront the enemy within. good morning, everyone. now, after the london attack saturday night there have been candlelight vigils and pledges of unity. we're used to seeing that. but the mood has changed. the brits are angry and no longer satisfied with their government's rather passive response. prime minister theresa may is actually losing ground. one poll only shows her one point ahead in the run-up to thursday's election. she was 20 points ahead before the manchester attack.

our own ashley webster is in london and he'll report on the extensive raids as the brits say enough is enough. over here, president trump has repeated his travel ban and wants to take it to the supreme court. he says the bloodshed must end. he says the bloodshed will end. and john kerry says it's worst thing to do and charles schumer was brought to tears when the president first made the proposal. and one says the president is terror to provoke an incident in america for his own ends. one at cnn called our president an obscenity. we've seen this before. the media obsessed with russia,

impeachment and global warming and ignores the issues that affect our lives, got that? and the markets, ignoring the media. the and the stocks open at record level a half hour from now. no serious pullback. "varney & company" is about to beg begin. ♪ >> we now our resolve stronger than ever before, to protect the united states and its allies from a vile enemy that has waged war on innocent life and its gone on too long. this bloodshed must end. this bloodshed will end. i will do what is necessary to prevent this threat from spreading to our shores and work every single day to protect the safety and security of our country. stuart: all right, now that was president trump last night addressing the london terror

attacks. joining us now, lt. colonel ralph peters. judge andrew napolitano, former governor mike huckabee, elizabeth mcdonald and ashley webster in london. to ashley first, i sentence a shift to a more hardline attack mode, go get em kind of thing. that's my perception from here. you're there. is that perception accurate? >> i think you're right, stuart. when theresa may said enough is enough and many who said enough is enough happened years ago and with saturday night's attack that ang ser rising. in the last three months we've had three attacks in the u.k., 34 team killed and 200 juniored. and asked why some of the attackers were not stopped before they attacked. one on london bridge saturday night. people called the anonymous tip lines to air their concerns

about that particular individual. in both cases we understand nothing was done. there are 3000 known extremists in the u.k. right now. that's double though, over just the last ten years, and the question is, what do you do? theresa may in a cabinet meeting in whitehall, how do they approach this, do they go on the offensive and if they do, what do they do, go out and arrest those 3000? possibly, some people say that could be the next step. the problem is it's briefed that could strengthen the resolve those on the fence of becoming radicalized. it's a difficult situation, they want someone to take action, people are out enjoying themselves on a saturday night should not have to deal with this kind of terror on the streets of london, stu. stuart: ashley webster there in london. we'll being back to him short stoply. i'm going to bring in now,

colonel ralph peters, we need preventative detention. that's strong enough. what do you mean by preventive detention? >> stuart, first, let me tell you what i do not mean to avoid the hysterical left. i'm not talking about mass arrests or putting people behind barbed wire. how many times must we hear after a terror attack the purposetrator was under surveillance, was known to police, was on a watch list. what i'm arguing is our legislators in europe and here in the united states need to step up and modernize laws, laws, that enable us to fight terror. for example, one example, it should be a felony with a mandatory jail time to communicate with a terrorist organization in any form. there have to be penalties for trolling jihadi websites and by the way, crack down on jihadi porn. the idea back to preventive

detention. if someone coming into the united states shows signs of ebola, we quarantine them. if somebody has drug resistent tuberculosis, we isolate them. shouldn't we do the same thing with people infected with the deadly virus of jihad? >> how do you know they're infected with the deadly virus? you're talking about an opinion, infected with an opinion, infected with ideology, awful difficult to intercept that and put them in quarantine. >> you put them in jail, but congress needs to give the police the tools. we're a nation of laws. congress is just derelict in its duties, we're so far behind. it's a matter of evidence. look, the manchester bomber attacked ariana grande concerts, one of the most heinous acts in recent years, he's not only known to police, he had been reported by his

fellow community muslims, his family was a radical family and he had been back and forth to libya. at some point you've got to accept that's sufficient evidence to detain someone. if we say that's not sufficient evidence of jihadi intentions, well, then you're going to continue to see mass casualties, as we just saw again in london. look, we are obsessed with the rights of the criminals. let's protect the vast majority. stuart: i think we're on the same page, ralph. there's a shift in mood toward a preventive action approach as opposed to a defense. stuart: ralph peters, appreciate you being with us today. come in, judge anded drou-- andrew napolitano, who has reaction. >> i say with reference and agree with him on many things. much of what he wants to do could be done by parliament in great britain, but only by

amending the constitution in the united states. can't be done by congress. can police get aggressive and in the face of people they suspect, follow them, talk to them, monitor. yes. arrest them without probable cause of crime on the basis of suspicion? no, not under our tradition and constitution. stuart: can a police officer in the united states tell a suspect, somebody they'd believe have jihadi intentions, we'd like to talk to you at the police station. >> yes, and you don't have to talk to us. if you don't come with us and talk to us, week-- london the great city is the most surveilled in the world. why didn't the cameras catch this? they did. why didn't they see it on the monitors. there are too many monitors. stuart: if our police officers can go to a suspect and say we'd like to talk to you, you don't have to, we'd like to. that's putting pressure on

someone and nothing-- and that's a proactive approach. >> that's a common ground between what the colonel suggested, what i'm agreeing could be done and with what the constitution tolerates, but arresting someone because of their ideas. stuart: understood. >> or because they go to a website, that's protected by the first amendment and can't happen. ideas and websites are protected speech. stuart: president trump calls it a travel ban and he wants to take it to the supreme court and revisit it. >> i don't know what the supreme court going to do, but because it's complex legally there's another case out there in the 9th circuit. the supreme court is not going to rule on this one until the 9th circuit rules and these are preliminary rulings, there haven't been trials yet. the supreme court doesn't like to get involved until the case is over. there hasn't been a trial. the question, does the travel ban as he now calls it, stay in

place during litigation or the old rules. that's what the president wants an answer to. stuart: i thought the president of the united states can keep anybody he or she chooses out of america if that's what that president wants to do. >> i agree with you. the constitution agrees would you. the statutes do, but the courts do know the because of the language mr. donald trump used before he was president. stuart: my interpretation is the leftest court is interfering with rights and duties. >> the courts are using a novel approach 0 block him. i shouldn't say novel. a rarely used approach to block him. his words before he was in office. if he could overcome that, on its face, it's perfectly-- >> i think it comes to the leftist court. >> we'll see how many of your lefty buddies are on the supreme court. [laughter] >> judge, you're all right. >> see you shortly.

stuart: britain's prime minister theresa may is calling on technology companies to do more to fight extremists. >> we cannot allow the ideology the safe space it needs to breed. yet, that's precisely what the internet and big companies that provide internet-based services provide. all right, e-mack fresh back from your trip to the holy land. welcome back. liz: thank you. stuart: what do you make of that? >> what she wants is to stop the encryption of messages. she wants the government to get into encrypted messages. remember after the march terror attack on parliament, that guy stabbing people, that terrorists using whatsapp. she's cracking down on social media and wants twitter to be more forceful, but says to social media and companies, we can get into devices. we are he going to store internet data for 12 months and check web browsing and she's going a step beyond.

she wants to break in and brazil bans it and who knows the u.k. could go far to stop encrypted messages. >> that's what she wants. encrypted messages-- >> it's not just policing social media sites, it goes a step beyond. stuart: that's quite a news back drop for the stock market this morning. where are we going to open in 18 minutes' time. ever so slightly lower, down what, 10, 15 points. look at that level. the record high friday, same with the s&p and the nasdaq. and fractional losses from there and that's just at the opening bell. another big american company is pulling out of venezuela. it's united airlines and they're going to suspend all flights to caracas starting next month. this is the failure of socialism, indeed the collapse of socialism, on the left, piling on president trump, after he renewed his calls for travel bans. suzanne rice says it will have no effect and john kerry called it cannon fodder for terrorists

recruiting. you're going to hear it all after this.

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>> as we approach the opening bell. let me remind you that all the industrial-- the averages, i should say, the indicators for the market closed at record highs late last week. we'll be opening just a fraction lower this monday morning. in other words, market's not going to react to all of this political turmoil that keeps rolling along. we have the left continuing to be very critical of the president's suggested travel ban. roll tape. >> there's really no evidence to suggest that by banning muslims or banning muslims from a particular set of six countries, that we would make ourselves here in the united states safer. >> travel ban will be cannon fodder to the recruiters, and it's the worst thing we could do. stuart: all right, governor mike huckabee joins us now. welcome back to the program on a monday morning. i'm sure you can deal quickly with what the democrats are saying about the travel ban,

but can you answer at that question? what is the democrat program for dealing with terror? >> their program is to resist everything donald trump says and does. i'd like to ask susan rice, if that travel ban was so completely useless, why did the obama administration originally put something like that into place and identify the very countries that donald trump is trying to suggest we have extreme vetting? and to john kerry who says, well, you know, this is all about cultural disadvantages. what does he suggest? midnight basketball? ma mack-- macrame classes and interfreigintegrated into the community. does he not understand that's are people who are killing people because they want to. not because they're mal

adjusted. the san bernardino killers had been given a baby shower by those they killed later on. stuart: do you think that president trump will pick up some political ground, that it will be to his advantage to go forward from here with his particular view of terror? >> well, from sane people, yes, i do, stuart. people who understand that you don't take people who are religious fanatics and zealots who want to kill other people because they're not of the same religion and somehow sit down at a table, play checkers and share a cup of tea and everything is okay. most americans understand these were people who were intent on killing totally innocent victims, whether on london bridge, or in manchester, or in paris or anywhere else in the world. and you're not going to satisfy them by giving them an ice cream cone that's been dipped in chocolate with sprinkles on top. this is not what this is about. stuart: now, is the news of the

day, this monday morning, is it about terror, the aftermath of london and manchester, and maybe the switch towards a proactive response by western democracies, or is it comey's appearance this coming thursday, russia, russia, russia, jared kushner? what is the news of the day, says governor huckabee? >> depends who you're watching. if you're watching a respectable, truly objective journalists, you're going to hear about the fact that there is an aftermath and serious consequences in the british elections, but if you're watching the people who want to avoid any semblance of the big story, you're going to hear, russia, russia, comey, russia, kushner, russia, some more russia, hillary excuses and god knows what. stuart: you're right. and as a financial program we've led with the terror response, the change in the mood, and the response street is, no response at all.

we're still at record levels. governor ub had-- huckabee, we'll see you again soon, i'm sure. lit areally momentary seconds from now, the wall street will hold a moment of silence for the victims. [moment of silence] [moment of silence]

>> that was a moment of silence for after, following the london terror attack saturday night. there was a similar moment of silence after the manchester attack a few moments ago. there's news on terror. saudi arabia, egypt, bahrain, yemen and united arab emirates have all cut their ties with qatar. this is about terror, liz. liz: i think the president gave them backbone when he said stand unite against the infection of terrorism. and qatar is thought to have ties with iran, isis, al qaeda, the muslim brotherhood, the

sworn enemy of these states. these countries told qatar citizens to leave their country within two weeks' time. they're cutting sea traffic, cutting air traffic into qatar. qatar is responding negatively. stuart: and it's wrapped up with increasingly hardline stance against terror. liz: that's correct. stuart: now, back to the markets real fast. now, let me give you the price of gold. it's just under $1300 an ounce this morning. i should tell you the price of gold is actually up 11% this calendar year, 1283.60 as of right now. let's move onto the economy. we had an economist on the show on friday and he actually used the r-word, as in recession, roll tape. >> it's disappointing. you know? the moving three-month average i think for jobs growth is down to 140,000 new jobs per month. if i go back historically, when that moving three-month average late in recovery drops to

130,000, guess what tends to happen about six to 12 months later. stuart: what. >> recession e he-- >> he used it and in relation to jobs report on friday morning. we've got recession. what does fox news contributor, james freeman, with the wall street journal editorial page think about this? seems like recession is a strong word, james? >> no question that friday jobs report was lousy, back to 1970's levels of labor participation in the work force, the number was bad, but it is part of a kind of a confusing picture right now. on thursday, we got the best report in ten years on small business hiring from the nfib. we got a very good report from adp and its pay roll survey. this is particularly odd, we read about with global growth picking up, it ought to be the big companies not the small

ones who are doing better. obviously, this morning, we've got a disappointing, but better than expected productivity report. so, i think we're still bumping along in that kind of obama era style normal. no question this recovery is long in the tooth, but there's-- i would stay hopeful if the trump tax cut, deregulation program remains on track and i understand that's a big if. stuart: we keep going back to that, if we get that done this year and tax reform this year, then we'll be okay, but in the absence of that, i think there's cause for worry. >> it is, we need that business investment to pick up. we saw a little bit of that happening this early part of the year, but this productivity report tells you, businesses are not investing in making their employees more productive. so, i think it's not just the economic need, it's also a political requirement, if this republican majority wants to

stay there. >> it's worth pointing out after friday, especially the weak jobs report the dow industrials closed at 21,206. that is a new all-time closing high. how will we open up this morning? fraction-- well not fractionally lower, 10, 15 points down, what's that on a 21,200 indicator? it's nothing. it's a fractional decline. the same with the s&p 500. same with the nasdaq. all of those indicators are at record highs and open only slightly lower as of this morning. the opening bell will ring in about four and a half minutes from now.

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♪ so when you need a plumber, you can count on us to help you find the right person for the job. discover all the ways we can help at angie's list. because your home is where our heart is. >> we've got a minute to the opening bell. there's a great deal of interest in how this market will open up this monday morning. please remember the news back drop, most people would think is kind of negative. as we said we had the weak jobs report, another terror incident, a big attack on london saturday night, but so far that's not shaken the stock market. so, people are tuning in, wondering, are we going to go down this monday morning? with all of these negatives or apparent negatives in the backdrop, where are we going on monday morning? is there going to be a selloff? is that going to happen? has there been a selloff overseas?

how will we respond to terror and how will we get a tax reform deal this year. usual questions. and you know what? the usual answers. we're going to open this market in eight seconds time. it will be down, but ever so slightly. bang, 9:30 monday morning, we're down 11 points, 12 points, 13 points, 17 points, the opening trend is a fraction lower and i use the word fraction quite deliberately, it's down .06%. with all that's going on that's the only downside move you've got 14 points. how about the nasdaq composite index, a string of records recently. it's down a tiny fraction, .23 points. the s&p 500, down .1%. i don't call that much of a selloff. do you?

big names, we check them all the time. they're coming off some fresh highs. amazon, well, down 17 cents, at $1006 a share. will you look at microsoft? it's now approaching 72. netflix, 165. facebook, and there are some negatives about facebook this morning, still at 153. starbucks, $64 per share. all of them at or near, near all-time highs. who is with us, james freeman, liz macdonald. keith fitz-gerald, all of them together today. keith, i'll ask you the same old question. nagging doubts and negatives in the background, but the market keeps going to record highs. explain yourself. >> it is the amount of capital coupled with great psychology right now. people have finally realized that the future is where things go, not the rear view mirror. to the extent you're planning for growth, you're being an

investor, you're doing what you're supposed to be doing, you're putting your money into the market and not running away. stuart: i've got to tell you, james freeman, i'm an investor, i've got my microsoft stock, happy as a clam. i see all of this new stuff in the background, always terrible, terrible, terrible, it keeps on going up. you want to explain this for us? >> related to keith's talk about capital. we're awash in money. in the u.s. we've kind of stopped print be so much money and maybe reducing the fed's portfolio and letting interest rates come up a bit, you still have very loose monetary policy around the world. governments printing money, so, this is an environment where, you know, all assets, even gold and stocks rising at the same time as you were just saying, what is that about? so, it is a world awash in liquidity and you would hope that central banks could withdraw and the deregulatory program could advance to where

the economy could grow organically, but i would say they're not there yet. stuart: actually, after yr visit to the holy land, have you gained insight why the market is going up. liz: i'm happier than ever. you talked about the five stocks, apple, amazon, facebook, up 33% this year and added 612 billion in market value so far this year, so five stocks. 3 trillion in market value much more than the other companies. come on. stuart: it's been nine years since there was a 10% correction for the dow jones industrial average and we do not have anything like that this morning. check that big board. we're down .10%. a 20 point loss and look at the level please, 21,186. we should look ahead to thursday. big day for some people. the comey hearings and britain's general election, so, james, do you think either of those two events, which the media will concentrate on, will

that affect the market? >> i kind of doubt it. obviously, also, we should mention earnings have been great on top of the other reasons for these valuations, but i'm looking at the british election, i don't think the labor party there is decided to be a serious party. they've gone into an activism role. i don't see them winning an election anytime soon given the current leadership. as for the u.s., i mean, barring some huge surprise in this comey hearing, i think that people know that he's going to take shots at the man who fired him, president trump. i think that's kind of expected now. so, barring some real major shock and we're still waiting for the collusion evidence on this russia campaign story. so, barring that, i don't really see it having a huge impact. stuart: russia, russia, russia. keith, the media will concentrate on that, i'm sure. are you still saying, no, no impact on our investment scene here? >> i'm edging up to there might be some impact and here is why, stuart.

i think to the extent that comey becomes a distraction. i'm not concerned about russia or the u.k. elections. i'm concerned about comey, there's going to be self-aggrandizing behavior. and wringing hands in the camera and boy, oh, boy, this is-- i don't think, to james' point, a distraction, a major event, that's the bugaboo here. stuart: earlier today, britain's prime minister theresa may, basically facebook and apple, hey, do more to fight extremists. liz, you mentioned earlier, no more encrypted apps, if you've got one, we'll break into it. liz: that's what she wants, absolutely, she wants. they're already doing internet sweeps and bulk collection of data, a law enacted in november.

the guy that was outside of parliament, he was communicating via whatsapp. people in venezuela used encrypted data to go up against the government. stuart: she says we're going after it. liz: she wants it break into it. stuart: look at facebook, facebook is actually up, no impact on that stock whatsoever. it's about 153, $154 a share, that's close to an all-time high and look at that charge. all of this pressure on facebook to do something about the extremists on its books or subscriber list. nothing happens to the stock. 154, james. >> if these attacks continue, it's not going to be politically sustainable for the social media companies to say to advertisers, we can tell you everything about our customers, precise targeting, but we can't stop the jihadi messages or track them. so, unless they want the politicians to do a ham-handed overreaction, i think they need to raise their game. i understand they've been

cutting accounts where they've seen jihadi activity. they've got to make it a much bigger corporate priority if they don't want politicians to fix this problem for them. stuart: six, nearly seven minutes into the opening or trading this monday morning and we have the dow industrials down 25 points. that's where we are. now, several stocks are hitting all-time highs this morning. microsoft reached $72 per share shall never been there before. netflix and facebook, and starbucks, all of them hit record highs this morning. a couple backed off little bit, but record highs, they made it this morning. look at mcdonald's, another all-time high. it just backed off a fraction, near all-time highs at 153. that's mcdonald's right now. how about the nasdaq composite index. down 4 points, just a fraction of 1%. s&p 500 also down a tiny fraction of 1%. none of them really backing seriously away from their all-time record highs.

we've got news on apple, two items, actually, number one, apple is kicking off the worldwide development, and a siri controlled speaker. down anything about this, james? >> a little bit. stuart: a challenge to the amazon echo or alexa? >> i would think that the team at amazon would have to take this as a very serious challenge given the u ubiquity of the iphone and i know you have little tolerance for software data, the analyst from the freeman household, all of our audio runs off the phone and i don't think we're unique in that respect. if are a he working on amazon, echo, alexa, the different products, you've got to be concerned. stuart: the other item from apple, they actually got a downgrade today, you hardly hear of that, a small outfit called pacific crest and

downgraded apple. did you say, justin? key bank is another operation that cut their rating on apple. keith, what do you think of that? two down grades for apple. >> well, i think that those analysts probably are way out of touch with expectations and maybe they're just looking to make a maim for themselves and gate ahead of a correction and say a-ha, we're right. i don't know what is in the a analy analyst. siri gives them a lock on everything that happens in the home, to james' point, from your music to shopping to this. and that's the competition. customers don't realize, whether it's google, amazon, they're listening all the time. what they do with the data. liz: and whether or not they share this with outside advertisers. amazon needs to be clear about this and so does apple. stuart: say anything and

somebody is listening. liz: and making money. stuart: the retail ice age. a tough week last week, more than a thousand stores closed for good. 100 plus, michael kors, 1,000 for radioshack. keith, more to come, do you think? >> absolutely more to come. this is accelerating, i think it's an extinction level event and there's not a single retail stock out there right now i would care to buy. stuart: wait, wait, what did you call it an extinction event? what was your expression there? >> a retail extinction level event. stuart: no, shopping is never going to go away. we'll always like to choose from bricks and mortar stores. liz: do you say men shop? >> there's an investment, stuart, and there's a big difference. stuart: yes, i'm saying men like to shop. liz: i thought they only liked to buy. stuart: i want to choose this

hammer in black and this hammer in not black. liz: you finally admit it. keith and james, thank you, liz you may stay. [laughter] >> 21,172, the big board, a bit of a selloff there. 32 points down. up next, we have a guest who says, all of president trump's political troubles will not derail the growth agenda. he says the turmoil in d.c. could actually help the president get his tax cuts sooner rather than later. he will make his case after this. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time

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points lower for the dow as of right now. do take a like at harley davidson, a fractional loss and i think we've got a big recall. nicole, tell us about the recall. nicole: it's a big recall and it may be an easy fix. that's why you don't see a big move in the stock. harley davidson down 9 points, 57,000 bikes they're looking closely, built last summer through may and you have to bring them in to look at the clamps. what's the problem? it's actually an oil line problem that may have had had an incorrectly installed clamp and then what happens? well, it comes with and sprays oil along the rear tire path. there were two crashes, one injury. i will say they're being very proactive about it. the dealers are saying it's a very easy fix. i spoke with a friend of mine who is a dealer in the ca

catskills, in new york. it's an easy change. while revenue has been dropping and demand waning and he says, his place is in the catskills in new york, the new models that have the milwaukee eight engine from this year, he says it's a new phenomenal product and in fact, it's selling like crazy. the worries about overinventory and high prices don't seem to be front and center at the moment. stuart: no, they do not and harley stock is down a fraction. look at that, alphabet normally known as google, just hit $1,000 per share. that's alphabet for you. we have this, starting next month, you won't be able to fly on a united flight to venezuela. they're suspending all flights down there. why, liz. liz: the government owns them money, pay them in hard currency not your worthless paper. they're owed nearly 3.8 billion dollars. so united in joining leff

than thanes-- lufthansa and air canadament and the maduro says they're' paying in that. stuart: and able to track cell phones, i've not read this. liz: the supreme court is going to take up this case. it's a civil rights and privacy watch dogs are saying, the government should not be able to track anybody's movements a their cell phones. and providers can give it over without search warrant, and they need this for criminals and tracking their movements. civil rights groups are saying this is a violation of privacy and scotus will take up this case. stuart: scotus will take it up.

and a new sense of urgency among republicans, get out there and pile up victories, including, tax reform, as soon as possible to help the president. joining us now, is the author of the book "the great equalizer", david schmick is with us this morning. hey, david. your contention is we're going to get a tax cut this year because the president's problems are piling up elsewhere and the republicans want to give him something, is that it? >> well, i did a survey of the house leadership and i expected them to reflect all the house members and the g.o.p. kind of running for the hills. there's a lot of concern about losing the house and the rest, but they said, actually, the president's problems have caused the house republicans, really, to bind together. they are-- they know, their polling shows the thing that could really take them down is the charges that they didn't get anything done so they're looking to-- >> it did sink in.

i mean, we've been playing this heavily on this program, has it sunk into the republicans you really cannot let down voters on this issue, above all others, tax reform, don't let them down. >> and that's why the inflectionability we saw with health care reform over the last several months, where the moderates were fighting, you know, the hard right. that's probably not going to take place. these guys want victories. the senate sends them something over that looks reasonable, they're ready to sign. they need to be able to tell their constituents, we are getting things done regardless of how you feel about investigations of the trump administration. so, i think that that's one positive good news, of course-- >> you could move the market with this, david. you haven't so far, but you could. i've got another one for you, the president wants to privatize air traffic control, proo privatize it. any question how president

reagan and how he handled patco in the '80s? >> there was, the air

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>> well look at this. amazon just hit 1,007.86 a share and actually hit 1009.50 and backed off a little bit. i don't know what to say, okay. liz: you're speechless for once. [laughter] >> look at this, i'm not speechless about this. microsoft,$72 per share,never been there before. right now, 72.28 on-- up another 3/4 of 1%. netflix a record high earlier. facebook a record high earlier, 154. starbucks, alphabet. google hit $1007 this morning. just extraordinary stuff, isn't it? it's a privilege to be here reporting how much money you're

making. next case, al gore on fox news sunday, chris wallace challenged him on the paris climate accord. gore admitted it would not have done much, roll tape. >> you would grow that even if all 195 nations, 194 now, met their targets, it still wouldn't solve the problem. >> that is correct, however, it sends a very powerful signal to business and industry and civil society and countries around the world. stuart: that's correct, it wouldn't have done much, but i still oppose on cataclysmic grounds at that you withdrew. liz: the inconvenient truth, a lot of the claims from his 2006 film did not km true and the paris deal he admits wouldn't help. europe routinely violated the kyoto treaty of 2001 and the u.s. way more than europe reduced carbon emissions. china and india doubling down

and carbon. and he's doubling down and never talks about it. stuart: and put the fear into all of us with the planet, doom and gloom, you keep saying that and it doesn't happen, people say you're wrong in the first place. liz: and if you want to fight climate change, al gore, let's talk about your private airstuart: we were down 30, now we're down what, 5 points, 21,200 holding right there. as for the mood of america, the west is shifting. the west is beginning to change course on terror. it's no longer just, oh, live with it. it's time and people are, governments are going on offense. what's the left response? in my opinion it's been very, very weak. should we put it like that? very weak indeed. my take on terror, top of the hour. [vo] when it comes to investing,

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stuart: could it be western democracies are beginning to change course on terror? now, the response used to be oh, live with it. terror is part of modern life. don't get angry. all we need is love. pile up the flowers and teddy bears and let's hold another candlelight vigil. okay, that was then. manchester and london began the process of change. the authorities have the terrorists on their radar. they were known to be dangerous. but legitimate concern foredemocracy stopped authorities from taking preventative action. ah, but this is now, and prime minister may is feeling the heat. she said enough is enough. the brits demand what does that mean? what preventative action will she actually take? she is by the way losing ground as thursday's general election approaches. voters have shifted. go get them seems to be the new mood. now, over here president trump

has returned to his demand for a travel ban. keep them out seems to be the policy. he wants to take it to the supreme court and he is railing against the political correctness that prevents free debate. the left's response is simply incredible. susan rice says a travel ban will not keep us safe and will alienate muslims. while in charge of national security, ms. rice had credibility problems. john kerry says, a travel ban is the worst thing we can do. he is still upset about our withdrawal from the paris climate accord. in the media, i will give two examples of absolute contempt for our president. thomas roberts at msnbc thinks mr. trump wants a terror attack in america for his own political purposes. reza aslan, a cnn employee takes to twitter to call our president an obscenity. once again the media is out of touch. they think the big news this

morning is global warming and russia, russia, russia. it's not. it is terror. as you walk streets of america today, are you thinking about comey, impeachment or putin? or are you looking over your shoulder at that truck moving just a little too quickly? the second hour of "varney & company" is about to begin. ♪ >> the national threat level remains at severe. that moons that a terrorist attack is highly likely. this is an attack on london and the united kingdom but also an attack on the free world. stuart: prime minister theresa may saying that this morning. more coming up in a moment. i have breaking numbers. they're about the economy. could affect the market. first of al a service sector indicator. liz? liz: where wall street expected.

57%. that is showing expansion the half companies saying sales will be up by about 11% by year-end. this is coming in strong. factory orders number is in line what wall street expected. down 0.2%. this shows the economy is expanding. stuart: market turned around right at point where that news was being released. liz: that's right. stuart: we have the dow industrials up 12, 13 points. that is not a huge rally obviously but puts the dow at a new all-time high. 21,220. that is where we are. speaking of all-time highs, alphabet, microsoft, facebook, and starbucks, huge companies all. all of them all-time highs today. now look at amazon, please. both amazon and google have gone above $1000 a share. amazon is at 1008. google otherwise known as alphabet, that too crossed the 1000-dollar mark this morning.

google is around $1,007 as of right now. price of oil is down again today, $47 per barrel. middle-eastern countries cut ties with qatar. why that moves the oil market down in price i don't know that. i that is more diplomatic terror move than a crude oil market move. 47 bucks a barrel for oil. back to the attack in london saturday night. britain going on offense, my interpretation at least. joining us is former cia covert operations mike baker. you follow this much more closely than i have. i think from a distance there is a perceived change in mood, and i think the brits are demanding a different approach from their government, go get them. what say you? >> you're right. signal after three attacks essentially three months i think this will signal a sea change in sort of the perception, certainly by politicians. what that means it, has to be translated as you know, they

will have to bang this out in parliament. they will have to have a public discussion what this means. it is great to say enough is enough. great to say we have to stop being politically correct. reality, services, in the uk, u.s., allies are doing everything they can within the confines of the law. stuart: yes. >> once you say enough is enough, as theresa may will find out shortly you have to follow that up to revise existing laws, surveillance protocals, what you can do opening investigation, how you monitor somebody on the internet. there will be a great deal of discussion about this. immediately in the aftermath of the attack people are all about security but it doesn't last very long. stuart: these people were on the security services radar. we talked about this before. >> right. stuart: and yet, and yet theresa may is now only one point up, one poll shows her only one point ahead of the opposition. i suspect that if she went out today and said, i'm, we're going

to arrest 50 of these prime suspects, her standing in the polls goes straight up. >> but her problem is to do that, they need to make the changes. need to make revisions. and they could do that. the problem is the top line story is always, they had them on their radar, they had this individual. they had seen this person before. how many times have we seen that but the reality is within the confines of those laws they do what you can do. you can't maintain an investigation, unless you meet certain steps. you can't continue the that surveillance unless -- if you want to do that, want an society to do that, extend that surveillance and capability to pull people in for questioning, that is fine, change the laws. all those people who will complain about privacy and civil liberties keep their yaps shut later on. you can't have it both ways. give up certain liberties for certain security. people have to get on board. stuart: in america, you could put pressure on known militants, have a police officer knock on

the door, we would like you to come down to the station, to answer a few questions. if you don't want to go, you can get a lawyer but we would like you to come down. >> profiling and pressure on citizens and police state, martial law. that is what it would be all -- stuart: whose side do you think american voters would be on? >> i like to think -- stuart: prevention first. >> i would like to think that, all i'm saying we've seen this for years and years and years. you have an attack. pendulum swings back towards security. nothing happens. fundamental aspects of how you can carry out these investigations, what intel and law enforcement can do, those things don't change. suddenly people forget, people have very short attention spans. stuart: that's true, they do. >> suddenly the pendulum goes back, everybody is crying about civil liberties and privacy. stuart: one thing i noticed overseas, french troops are going after french citizens fighting in syria for isis. they're killing them.

they don't want them back. sas, british special services,. >> great operation. stuart: they will do the same thing. nothing stopping our forces going after, or is there? maybe there is, actually. >> if u.s. citizen, this, we've had several cases but probably the most known one was al-awlaki. idea, wait a minute we attacked a u.s. citizen, once you take up arms, there is a process in place. state department can revoke citizenship. take up arms in this country. we get this angst oh, my god, dealing with u.s. citizen. dealing with a u.s. citizen taken up arms against this country. they forfeited theirights. we should go after them. much like the french and british it. somebody goes overseas to fight for isis, they can't come back. stuart: well-said, mike baker, thanks for joining us, sir. thanks to him, we're talking about the left, no plan on terror except to criticize.

here is part of senator chuck schumer's statement on this i am going to read it for you. amazingly with terrorism on the rise president trump actually proposed cutting vital anti-terrorism funding in his budget last week. he has proposed cutting anti-terrorism funds including 25% cut to uasi, a program essential to major city police departments including new york and their fight against terror. these proposed cuts would make us less safe. that is charles schumer's response. fox news contributor tammy bruce joins us now. what do you say to charles schumer who said that about our terror situation. >> it is bunk. it is bunk. this is program started in 2003 under the management of fema. throughout all these years there has been no real way to determine how that money is spent, if it is even effective. so now you have got donald trump a businessman, who knows that he wants to spend money but he doesn't want to throw money just at things. that is what democrats do. they think more money you throw

at something more effective it is. that of course is false. what the president is trying to do is make sure money we do spend, we can calculate it, know it is effective, know where it is going and it really does make a difference for terrorism counteraction. stuart: president trump after the latest london attack turns around and says, i want the travel ban in place. we should take it to the supreme court. that is his response. he is taking proactive response. >> that's right. stuart: but you followed this closer than i have. you sum up what are the democrats saying? what is their anti-terror policy? >> clearly, after the last eight years don't have one. the problem is they're not just doing their usual messaging needing to spend more money, they're actively trying to thwart the president's effort to have us be more effective with the travel ban, on issue of a budget, throwing money at issue, whether border or anywhere else does not solve the problem. they say spending money is the answer because they don't have details of the issues.

they don't have a plan. this is are with the president and his team needs to step up, making sure that senator schumer doesn't get the last word on explaining to the american people what is happening. stuart: is president trump winning a little ground politically because of this terror attack in london? >> look, last year, he won simply saying we have to protect ourselves. he is determined to keep this nation safe. we've seen of course this play out for the last eight years. this is the democrats problem. what we're facing now is not new. and president trump has beenconsistent in his commitment to with what his agenda is, keeping this nation safe. he fights for that every day. the democrats strangely enough are fighting against it every day. stuart: why is this gentleman, reza aslan, reza aslan, he works for cnn, put out a tweet calling our president a piece of feces. trying to get this out without offending our audience. you know what he said. to the best of my knowledge he

is still an employee at cnn. >> cnn is sending out mixed messages whether he works for them. he is certainly attached to them. his use of language is not unusual. there is report of variety of tweets where he uses obscenities to express his anger. i think especially when it comes to the president we learn about people in this regard. i think this fellow has gotten a lot of heat. he has apologized since then but the fact he says that is not my style but we've seen in fact over gosh, a dozen or more tweets he uses remarkable obscenities to attack people. stuart: liz? liz: isn't he wrote the book about jesus calling jesus a zealot and calling the president pos? stuart: yes he is. back from the holy land. appreciate that. you're about to see a picture from one loveman chester remarks concert ariana grande held yesterday to honor victims of the terror attack there.

the event raised 2 1/2 million dollars in donations for victims and families affected by that attack. ann coulter is joining us later this hour. what the president should do to protect us against future attacks. kathy griffin says the president is trying to ruin her life. we'll get ann's take on that as well.atthain. you're watching second hour of "varney & company." we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov

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that's why i recommend using polident. polident. cleaner, fresher, brighter every day. stuart: it's a morning where all kinds of stocks and indicators hitting all-time highs. that on the left is the nasdaq composite. it hit an all-time high of 6309. back off a tiny fraction. police in portland, oregon, arrest more than a dozen people. protesters against president trump clashed with those supporting him. joining us chris cox, the bikers

for trump group. chris, i know he you were at the protest. i'm told that the anti-trump people vastly outnumbered the pro-trump people, is that accurate? >> you couldn't be more right, stuart. this is one of the most liberal cities in country. give you an idea, they have a statue of stalin here. stalin classifies socialism. socialism is the vine news fly trap for any democracy. stuart: were you there to protect the pro-trump people? were they in need of protection. >> no, sir. because the feds were there. homeland security showed up in force and they exemplified law enforcement yestery. couldn't be more proud of the law enforcement community. they seized bricks that were broken in half that people were throwing into the crowd. bottles. they had fireworks, sling shots, pepper spray and big knives and machetes. they were grateful they were there. they would have been outnumbered, bikers. stuart: chris, hold on a second.

are you telling me you saw anti-trump demonstrators with knives and other, literally weapons that they could have, that they wanted to use in combat against you guys? >> yes, sir. homeland security actually had them all on display. they were collecting them for evidence, for some court hearings today. in there, there were long knives, fireworks, like roman candles they were going to shoot into the crowd. they had sling shots, stuart, if you get hit in kneecap or elbow with a ball bearing that will shatter it. that will be a pretty bad day. pepper spray. stuart: did you go loaded for bear yourselves? look, bikers guys, they're tough guys, and sometimes they go around in a violent situation. were you there with weapons ready to defend the pro-trump people? >> well, stuart the first weapon of a biker or any patriot is courage. so we were loaded with courage. we are locked. we're there as a defense force

here. we're on the defensive. we're not on the offensive. we want to see that these trump supporters are there. that they can assemble peacefully, they can express their feelings for donald trump. donald trump is delivering on all his promises. we do have to deliver supporting him. stuart: give me rough idea of numbers, would you. how many people opposed trump demonstrating, how many people supported trump? >> well, if we had say 2,000 people there supporting him, there were probably 3500 to 4,000 against trump. on one side of street union workers protesting. on the other side of the street, skies with ski masks and the guys there for chaos and mayhem. then on the other side of the street you have lbgt and they were, all protesting. we were surrounded. we were probably outnumbered, at least 10, 15 to one. bikers are used to being you outnumbered.

we had a lot of resources with us. oath keepers, a lot of other groups were there, we were doing pretty good. we noticed a lot of protesters had infiltrated into the group and around the crowd but when they take a look at guys we've got standing there on guard, ready to act, spring into action, they certainly weren't going to stand up to our guys. they never do. stuart: sounds like battle lines are drawn on the west coast. chris cox, thanks for joining us, sir. keep us informed about the battle as it progresses. >> yes, sir. stuart: thank you. here is what is next for you. uk prime minister theresa may, she says enough is enough. there are raids, more raids currently taking place in london. they're trying to thwart future attacks. we're headed to london, ashley waiting to give his report right from london. he is next.

stuart: police in london have made more arrests. they're going on more raids connected to saturday's terror attack. ashley webster is over in london. he joins us now. ashley, i get the impression there is a new mood and new policy is go get em. what say you? ashley: i think you're right, stuart, as theresa may said, the prime minister, enough is enough but what does that really mean? she is under fire. opposition leader jeremy corbyn says she needs to step down. she was home secretary here in the uk. kind of version of homeland security from 2010 to 2016. she has overseen the reduction of british police by some 20,000. all of this put together with three attacks in the last 10 weeks in the uk, she is under a lot of pressure. she knows she has to come out

strong, the question is, i heard you talk about with mike baker, stu, what can you do? she talked about longer prison sentences for those convicted of islamic terrorism, but if an islamic terrorist want to carry out an attack they normally want to die so a longer prison sentence will not deter them. you know london like myself. this is the face of central london. this is a huge concrete brought in overnight. as you look down westminster bridge road, long iron guard and railing goes to the other side of parliament, all of this designed to stop a terrorist attack. someone driving a car or van as we saw last saturday night up on the pavement and mow down innocent people as they go about their lives. i find this very, very sad, that the architecture and very look of central london is now turning into, well it is like a war zone. i saw these concrete bricks in baghdad many years ago.

they're there for the same reason, to stop people coming in ramming cars with bombs on board. the fact we have that in london tells you things have changed. the question, how do you stop this? do you arrest them, round them all up, throw them in jail? i'm not sure that is the answer and british law would not allow that, stu, but certainly the people are saying enough is enough. let's do something about it. stuart: thank you, ashley. good stuff. i will come back to ashly webster in london. thanks very much, ash. ashley: sure. stuart: this is interesting. "wonder woman" from warner brothers took in $100 million at the box office. that is the highest grossing movie ever by a female director, patty jenkins. what is next? lefty media at it again. an msnbc host goes as far to say that the president wants to provoke an attack in america for his own political benefit. he said that on the air. we're all over it. [vo] when it comes to investing,

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stuart: all right, we're down six points. just dropped a fraction right at i should say 21,200, however, we do have all-time highs for at some point in morning alphabet, microsoft, netflix, facebook and starbucks. all of them huge named companies, all of them record highs. steel stocks, they're doing very nicely today. why? well president trump is reportedly taking advantage of a trade law that would allow him to penalize steel and aluminum imports if the commerce says they jeopardize national security. steel stocks straight up this morning. isis has claimed responsibility for the saturday attack in london. it started on the london bridge, continued to what is called borough market nearby. our next guest was in britain, in london at the time of the

attack, his home is now part of a crime scene. scottscott shellady joins us no. he usually reports on oil and market and interest rates. he usually has a cow jacket on. i take it you can't get back to your house to get your cow jacket. give me the story. what happened, scott? >> well, unfortunately, fortunately i was not there at the time. i was out in the country. came back yesterday morning to the crime sane. my hearts goes out to the folks murdered and injured, it is a horrible scene. my house is literally 50 to 250 feet of all seven of those deaths. so that market is very busy. it's a great place to live. it's a lot of fun but bars and restaurants right outside of my front door were ground zero for those savages on saturday. stuart: what's the mood of the british people? we've been talking that the

brits are getting angry, tired of candlelight vigils, they want action, go get them, is that the mood, scott? >> we're getting closer to the mood and theresa may is good about that as of late. this is not the resource, stuart. we have all the money we need to get the job done. it is not the question about intelligence the bottom line is question about political will, do they have the political will that needs to be done to rid these people of this society. right now both in the states and in uk and europe for that matter, we're allowing people that aren't citizens to plot terror against us in our home countries. that's ridiculous and it has to stop! stuart: there is a new mood. you're expressing it very forcefully there but that is the mood thaw pick up, not just because of your own situation but because of wha seeing in the society around you. i goat to remind you -- got to he remind you, there's new poll

shows theresa may has only a one point lead as we run up to thursday's election. before the manchester attack she had a 20-point lead. >> that is direct result what i think i heard ashley say as well as she used to be home secretary, and under her watch there has been decline in police. there is huge decline of amount of money they are taking in, and budgets were cut drastically. she was doing what she had to do what she was given. she is the one i believe will be tough on these types of things. the rules have to be changed. she is alluding to that. something different has got to happen. whether getting rid of 3 to 23,000 people -- remember, stuart, we knew hot people were before they committed their acts. if that is going to be the problem and they're not citizens of the uk and u.s., what is the problem with getting rid of those people because we know who they are and we know what they can do? that is the mood i'm starting to feel here. there is a big groundswell because of that. stuart: scott shellady, thank you for joining us on a

difficult day and everyone else in britain. thank you, scott. some people in the mainstream media are slamming president trump in the wake of the london attack. first of all listen to what msnbc anchor thomas roberts said about our president. roll tape. >> the president doesn't want us to be politically correct, right? so let's not be pc about this. is the president trying to provoke a domestic terrorist attack? seems like the president is trying to provoke something he can politicize more for his own gain in america. do you feel that way? stuart: is the president trying to provoke an attack in america for his own political purposes? that is what he said right there on msnbc. now this. cnn host reza aslan tweeted this about president trump, quote, this piece of, i'm not going to say it, you know what is on there, is not just an embarassment to america and a stain on the presidency, he is an embarassment to humankind.

i call that pretty strong you stuff. joining me fox news media buzz host howard kurtz. first of all, your reaction to what that man said on msnbc, deal with that one first, would you. >> what thomas roberts said was over the line. to suggest somehow for his own political self-interest that president trump is trying to provoke or might be trying to provoke an attack on u.s. soil, in other words that americans would be killed and he would politically benefit, i just don't know how you get there. you can frame it as speculation or speculation are. it is offensive. stuart: he still has his job. i want your comment on reza aslan calling our president an obscenity in a tweet he sent out. he has still got his job. what is with cnn? >> that is so far beyond the pale that i can't believe reza aslan is still employed by cnn, by the way, put out meally-mouthed statement, he is not employee, some kind of contractor. he has a show on the network.

never appropriate to say this kind of thing. he not only called him a piece of what, excrement, but embarassment to humankind. that personal attack on president, criticize policies all you want, that is fine. it just has no place in media discourse. it is striking to me that there isn't more of a media uproar, particular i about this one, stuart, if conservative host said anything remotely about that on barack obama people would call the person to be tarred and feathered. stuart: i'm not piling on, howard, but i want to bring this to your attention. even with the terror at income in london these were just some of the op-eds in "the washington post" today. i will read some headlines for our viewers, howie. trump ignores the reality of global warming and makes all about him. trump's diplomacy of narcissism only makes him look weak. next one. the faces of trump's retreat from human rights. it went on and on. these were headlines in the

op-ed section just of "the washington post." i don't think i'm piling on to say what on earth is going on here? >> you know, the decision to pull out of the paris climate agreement was controversial. it is fine to have debate about it. fine to criticize the president but what strikes me the common thread always, media criticism is often so personal. donald trump is anti-science. he is abdicating american leadership in the world. always seems to be, often seems to be i should say, because not everybody indulges in this, you know, something where his character and integrity is called into question. by the way on reza aslan, he issued this sort of half-hearted apology, he should have used better language and lost his cool but not at all retracting the notion that the president is embarrasment to humankind. that captures, in extreme form along with the kathy griffin stunt last week, just how vicious some of this commentary is. stuart: yes, but it is not just

the viciousness and contempt. it is also what does the mainstream media think is news? as of this monday morning i will make the judgment that a shift in mood in america an britain concerning terror is a big news story. the establishment media wanted to be comey's testifying on thursday. maybe we can impeach him. russia, russia, russia. there is complete dichotomy here what is really the news. >> that was particularly striking on day of the climate change announcement when four straight msnbc prime time shows led not with that, liberals care a lot about saving the planet right, but with russia and comey incremental developments. that said to me there was clearly an agenda there, and you know, again, presidents sometimes invites some of this with his tweets, talking about his own justice department, talking about the travel ban, that is fine, we ought to talk about too.

some has gotten intensely personal. default setting for commenting on president particularly for those on the left who don't like donald trump. stuart: we need an objective media analyst and you're it, howard kurtz. thank you for joining us this morning. yes, sir. how about this? golfer phil merck kel son will stip the u.s. -- mickelson, will skip the u.s. open this year. that is a big deal. why he is doing it? liz: hisaughter is graduating from high school. she is giving the commencement address. she is president of the student body. the daughter said, go play the u.s. open. he played it dozens of times. only come in second about half a dozen times. other thanly major he has not won. so he is saying no, i want to be there for my daughter's graduation. he is going there. stuart: i know you're not a golfer. liz: no, i'm not. stuart: you don't watch golf. whose side are you on? is he doing the right thing or wrong thing? liz: i think he is doing the right thing. it is fine. i applaud him for that.

stuart: as a man who taken a few days off to attend his daughter's wedding i have no qualms with what mr. mickelson is doing. thanks very much, lizzie. coming up, kathy griffin, she says, the president is trying to ruin her life. ann coulter joins us next. we'll get her take on this. do not miss ann coulter. think again. this is the new new york. we are building new airports all across the state. new roads and bridges.

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liz: "the wall street journal"'s james freeman that the market is giving mixed signals after friday's unwell ming jobs report. let's roll tape. >> no question the friday jobs report was lousy, back to 1970s level of labor participation in the workforce. the number was bad, but it is part of a kind of confusing picture right now. on thursday we got the best report in 10 years on small business hiring from the nfib. we got a very good report from adp and its payroll survey. so this is particularly odd because we keep reading about how with global growth picking up it ought to be big companies, not the small ones who are doing better. ♪

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there's a better option. the capital one venture card. with venture, you earn unlimited double miles on every purchase, everywhere, every day. not just airline purchases. seems like a no-brainer. what's in your wallet? ♪ stuart: just going to call for the trump mets and we got them. i own a small piece of microsoft, look at it go! 2.86. all-time high. not quite retirement territory. last hour we talked to lieutenant colonel ralph peters he is advocating for a form of some type of preventative detention to stop terrorism. roll tape. >> our legislators, in europe here in the united states to step up and modernize laws,

laws, that enable us to fight terror. for example, one example, it should be a felony with a mandatory jail time to communicate with a terrorist organization in any form. there have to be penalties for trolling jihadi websites. stuart: joining us now is "in trump we trust," the author thereof and columnist, ann coulter. gait to have you with us on the set, ann. this is first. >> that is great. a little chilly. stuart: dress warmly on the set, okay? we have ralph peters there saying look, proactive, go get them. >> right. stuart: in some form or another. do you agree with this? >> yes, i think his suggestion in particular although that could be a part of it, sort of remind me of trump's travel ban. you get all the anger without as much good being done.

what trump, for example, suggested in his immigration policy paper, the greatest document since the magna carter, was a temporary band on all immigration. no religious problem then. why doesn't he go back to that? both more aggressive. let in a few a year. we're letting in two million a year, legal, illegal, guest workers, probably more than two million and "the new york times" it is impossible to vet that many people coming in. well, don't let in that many people then! it is not that hard. as for the detention, i would say, yes there are ways to be aggressive. i would be in some ways more aggressive but i don't think it would raise many hackles because it doesn't look like internment. europe has easier time than we do. we don't have first amendment. in germany it's a crime to support the nazi party. are you worried about nazis today? no. we're worried about isis and islamic terrorism, it ought to be a crime not merely to communicate but advocate of that ideology and they ought to be thrown out of the country.

stuart: at issue is our approach to terror. i maintain that the approach so far is essentially being defensive. >> yeah. stuart: we can take it, absorb it, stay together, stay solid but don't go after them. i think that is changing. >> it is totally pc. i hope you're right. stuart: go get 'em. >> i think it will be all rhetoric so far. no, because the political correctness is so powerful. theresa may a lot of people made fun about. stuart: what about here. >> that is what we're voted for with trump, but we're not getting it so far. i hope we will. how about just going to a full immigration pause for a few years. we dust off the books. we assimilate ones already here. deport ones -- stuart: no, you don't want that. that brings extraneous different factor. >> yeah, it excludes religion. by the way there is nothing unconstitutional about a religious ban. by the way. stuart: why can't we in america, have our police officers go to known suspect and say we would

like to talk to you? you don't have to, you could have a lawyer, but please come with us to the police. >> they could do that but there are a lot of them. we're paying policeman's salary. how about we get suspects out of the country? no reason to bring them in? what are they doing with us? going on welfare. stuart: what about the travel ban. >> i would make it more aggressive. how will the court strike it down if it is not religious. it is struck down on establishment clause grounds. if you say we've been taking in 10 million people -- stuart: immigrant like myself would not want to immigration ban. >> roll up the ladder, jack. stuart: don't do that. look, kathy griffin, you know where i'm going, she addressed the media last friday about the photo shoot. you know he what i'm talking about. she said president trump and his family wanted to destroy her. she also blames sexism for the backlash. let me play the tape. roll it. >> i'm not afraid of donald trump. he is a bully.

i've done with older white guys trying to keep my down my whole life, my whole career. i'm a woman in male dominated field. there is a bunch of old white guys trying to silence me. i'm here to say that's wrong. stuart: i wasn't expecting that at that press conference. that is what we got. you say? >> the time from someone being an offensive aggressor turning herself into the victim, it is lightning speed. how about, stay quiet for a while. my friends told me it is like her dog she comes home, the dog rips the apartment apart. instantly the dog starts whimpering and rolling on its back. you can't play victim that quickly. you held up a really, really disgusting photo. i didn't even like looking at it. i don't want to see anybody in that. there are real beheadings going on, forget in syria avoid those by not going to syria. it was mexico that pioneered videotaped he behead -- beheadings. rolled them across disco floors.

this is southern border. happens all the time. it is really disgusting photo. to turn instantly being a agressive bullly, i'm a victim, i'm a victim, could you give us a day? stuart: just pathetic. just pathetic. ann pleasure being on the set. will you come again. >> i absolutely will. thank you. stuart: "in trump we trust" latest book. how is it going? >> very well. i wish trump would rerad it. stuart: thank you very much. president trump is about to unveil a proposal that would privatize the nation's air traffic control system. this is part of the larger infrastructure agenda. we'll bring it to you. stay with us. this is "varney & company." doesn't always come back up. [ toilet flushes ] so when you need a plumber, you can count on us to help you find the right person for the job. discover all the ways we can help at angie's list.

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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! call to request your free decision guide now. because the time to think about tomorrow is today. stuart: you're a a value guest because you don't turn people off talking about the budget. >> i took the job because they said i wouldn't have to go on tv. stuart: but look at you now, you're having a brass on tv. you're really good on tv. may i say that? i ask you a question, you bang straight down. you don't deviate. no tangents, don't go on sidebars. right at it every time. always staying on message. but does he answer the question?

those are the highlights from white house officials mick mulvaney and gary cohn on the show last week. now they both said the republicans are hard at work on tax reform. while that provoked a lot of comment on this program. first of all this came in to us from phil. you need senate republicans to back you up on this. so far all they have shown is how spineless they are. and this from buyers. businessen up republicans, actions speak louder than words. okay. liz, welcome back. good to see you by the way. liz: good to see you. stuart: i get the impression the switch in the tone of how we should respond to terror, that is having some impact on politics over here. perhaps making it easier for president trump to get something through congress on tax reform. maybe that that is a stretch who you think? liz, no i think you are on to something. in times of crisis people want leadership. we've been in bad economic situation the past eight years. people want leadership.

the way to do it for the gop is to say, hey, democrats, you back in 2002 you were for a visa travel pause. basedden was for it. harry reid was for it, john kerry, hillary clinton, president obama has been for the travel pause a few years ago. chuck schumer after the 2015 bataclan attacks. you are for it democrats. why are you flip-flopping now. tax reform, emdemocrattic platform since the '50s said yes to tax reform. put in in their lap. their stewardship has not been state of the art. push it back on democrats. stuart: thank you,. liz. liz: sorry. stuart: your trip to the holy land energized you. liz: thank you. stuart: we'll all be back with you just a moment. online u.s. equity trades...

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stuart: on "varney & company" we've made a decision.

comey, russia, russia, russia, impeachment or jared kushner are not news items that will affect your life. we've made that call. they are stories that the media wants to keep in front of you because they are negative for president trump. and that's what they want. that's what the media is all about these days, contempt for our president. let's bring him down. i don't want to belabor the point, but it's reached the point of ridicule. look at the following op-ed pieces just in "the washington post" today, one day only. trump's diplomacy of narcissism makes him look weak. the faces of trump's retreat from human rights. a baltimore case shows trump's deportation crackdown can lead to lawlessness. on any and all occasions, they demean our president. what are they ignoring? i'll tell you. the issues that really do affect us all. the daily threat from islamic

terror on our own doorstep and in our own streets or the ruinous collapse of obama's health care program. that's important. starting this week, the president will push to build roads, bridges and airports, infrastructure this week. and to the left and their media allies, this week really is all about resisting president trump and bringing him down. consider this, for example, thomas roberts on msnbc says our president wants an attack here. wants an attack here. to boost his position on the travel ban. a cnn employee calls our president a piece of -- i'm not going to use the word, but you know what it is. he said it. both till have their jobs -- still have their jobs. the third hour of "varney & company" is about to begin. ♪ ♪

stuart: happening this hour, president trump rolling out a major infrastructure plan. expected today, a call to privatize air traffic control. that's one of many proposals. we will take you to the white house when the president speaks. the event is scheduled for around 11:30 eastern time this morning. check that big board, the markets still very, very close to its all-time high. okay, it's down five points but still at 21,200. as for the s&p 500, it's still at 2437 and the nasdaq also holding on to its near-record high. here are the stocks that did, indeed, hit all-time record highs earlier this morning. let's see where they are now. alphabet -- google -- has gone to $1,003 a share. microsoft is now at $72.67. netflix, 164. it's backed off a fraction.

facebook hit 154 earlier, and starbucks is at $64.48. record highs, all of them. back to terror in london, the mood, in my opinion, is shifting. there are now more calls to go on offense rather than constantly playing defense. joining me now, robert charles, former assistant secretary of state under colin powell. sir, i think that's true of britain. they want to go on the offense. i think it's also true increasingly of america, get on the offense and stop playing defense. what say you, sir? >> i think you're exactly right, and i'd make just a couple of quick points. one is in qatar we see -- the president went to the middle east, he asked our allies there to show leadership, saudi arabia, egypt, uae, and that's exactly what they're doing. and they have been very strong-minded in their defense and also in their attack on terrorism. and then back here again i think we've got a couple of things we need to do.

we need to take lessons from history. we need to own this war. we need to be proactive as individuals. we need to be out there looking and be vigilant in a much more, i think a much more robust way. we need to recognize that we are at war. this is a bit like september 1940 in great britain when people had to recognize, hey, this is really all about us. we need to battle it. stuart: you're putting it in very strong terms here. >> i am. stuart: and i think we're on the same page about where voters in america and voters in britain actually stand on this. but, come on, talk politics to me for a second. i see president trump going on offense with his renewed call for a travel ban and maybe taking it to the supreme court. i don't see democrats going on offense, i see them, frankly, without a policy. i know you're not a politician kind of guy, but, you know, what's going on here? >> well, i think you're right. i think that you can't resist reality forever. i think we have to come back together as a nation around some basic principles. and i'm not sure it's so much a

ban as simply a protective measure to protect us all. and i think the supreme court's probably going to come out that way. the last thing i'll say is we've got to circle around law enforcement. again, in 1940, i go back to people like churchill who said looking at the raf, he said, you know, never in the history of mankind have so many owed so much to so few. that's really where we are with law enforcement today. they were on that scene in london in eight minutes. that's what they would do here. we need to be one nation committed to one mission. stuart: on that subject, it took them -- well, i say it took them -- eight minutes from the first report of action on london bridge to the police actually arriving and killing the three assailants. eight minutes. what do you say to the argument that it wouldn't have been eight minutes, it would have been more like 30 seconds if there'd been more guns on the street owned by the police officers who were present on the scene? >> well, or owned, or owned the citizenry. stuart: yeah, right.

>> american citizens have always been trusted with their firearms, that's why we have a second amendment. we need to start trusting ourselves as a people again and stop attacking ourselves. when we turn on each other like a circle, like a firing squad in a circle, we make a mess. when we protect one another, we get in a much better position. stuart: robert, i'm surprised to hear you expressing a very strong, somewhat harsh opinion -- [laughter] because, no, no, i -- i don't know your politics, but i assume that you are going to be in favor of a more defensive posture, we can absorb it, we can take it. i am -- >> no. stuart: did manchester and london change your opinion? >> i think the operational tempo of the bad guys is rising. and, you know, i also worked in the reagan white house, and i think reagan offers a lot of lessons forward as well. you have to be proactive even if you're protecting civil rights. there is a balance, it can be struck, and we need to collectively look to strike it. stuart: robert charles, thank you very much for joining us.

now, happening just a few minutes from now, president trump's going to make a big infrastructure announcement. i've got a question here. okay, we'd love to spend a lot more money on building roads and bridges, but who's going to pay for it? where does the money come from? come on in, please, douglas hots eken -- holts eken, he is with us this morning. douglas, who is going to pay for it? i've not seen the details of the president's plan. i know something about it, but i don't know the details. do you know who is going to pay for this trillion dollars' worth of infrastructure spending over the next greens? >> i don't think we know who's going to pay for it. i do know each time they've talked about such a plan, they've put about $200 billion worth of taxpayer funds on the table and are counting on some sort of public/private partnership arrangement where the remainder of the capital comes out of the private sector. that's been the basic design since the campaign. i think everyone's eager to see exactly what they're going to propose. i know that the air traffic

control system the president's going to talk about today is among the kinds of projects that would improve national connectivity and could make a big difference in economic performance. i, for one, would like to see the program focused on those kinds of projects. stuart: isn't this an area where both democrats and republicans agree, our nation's infrastructure has been run down to some degree, time to build it back up again? both sides agree, isn't this an easy one? >> it should be an easy one, but you run into problems. the tradition in this area has been to overpromise what you can do, try to do it too fast, you know, do things like stimulus and waste the money. so you need to have an approach that says let's identify genuinely impactful projects, let's figure out the way we can fund them with the least taxpayer exposure to the costs, and let's expedite the construction and the approval. not everyone's been onboard with all the details, and certainly when it gets to the let's fund it part, who pays, then things

start to break down because democrats inevitably say, ah, there's no wasteful spend anything the federal budget. we can just raise taxes, that'll take care of it. and i don't think that's going to fly. stuart: if you look at what the legislative schedule looks like, obamacare reform, tax reform, the debt ceiling and then, it wd seem to me that the easiest would be the infrastructure plan. would you go that far? >> i would think so, yes. i mean, certainly, i don't think there's going to be a big disagreement about the projects. i think there will be some fussing about who pays. inevitably, you know how this works, everyone wants someone else to pay for it, and that's not going to add up. so i think the key part of the design is going to be the president making the case that they have the projects, they've identified them, let's go fund them and get this done. stiewrl. stuart: okay, thanks for joining us, sir. much obliged. >> thank you. stuart: you heard it, 20 minutes from now we will hear from president trump on that big infrastructure plan. of course, we will take you

there when the president speaks. the event is scheduled for 11:30 eastern time. our next guest says one of the attackers in london may have been radicalized by a controversial imam who lives here in america. we have details on the imam next. but first, listen to what the president said about those london takes. >> i will do what is necessary to prevent this threat from spreading to our shores and work every single day to protect the safety and security of our country. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us tbecome one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.

>> the national threat level remains at severe. that means that a terrorist attack is highly likely. this was an attack on london and the united kingdom, but it was also an attack on the free world. stuart: you heard it, prime minister theresa may responding to the weekend attacks. ashley webster is in london live covering this for us now. ashley, i've seen a poll which

suggests that theresa may's lead is down to one point in the election that takes place on thursday. are we to believe that the london terror attack in manchester is hurting her? >> reporter: i think it is, stuart. as we said before, she was home secretary here in the u.k. from 2010-2016, responsible for, if you like, the homeland security. and she's getting a lot of criticism for reducing the police force by some 20,000 members, and she's been could out by jeremy corbyn who says, look, you should step down. he has stints walked back -- since walked back that comment, but it's not hurting her when we talk about the election coming up on thursday. it was supposed to be a runaway victory for her, this election, in order to give the conservatives a supermajority, but things change quickly. and i think it could be a lot closer than people think on thursday x that could lead to a hung parliament which doesn't make life very easy as britain

tries to negotiate its terms of brexit. but, stu, i'm just here -- i know that you and i have conversed in the past about how tired we get to see so many vigils, so many floral tributes, on and on and on after terrorist attacks, and here we are, westminster bridge, another symbol of flowers being left for those killed on this very bridge not just ten weeks ago. there is another vigil later on today in about, just under two hours from now close to london bridge to remember those who were killed saturday night. as you said, enough is enough. the question is, how does the u.k. respond. stuart: well said, ashley webster, live for us in london. thank, ashley. still on terror, we have a guest who says one of the attackers in london may have been radicalized by an imam in america. ryan or morrow is with us, he's with the clarion prompt, and he joins us now -- project, and he joins us now in new york. let me get this right. one of the attackers in london -- not been named yet,

but you know who he is, presumably -- and you say he was radicalized, turned on to this kind of attack by contact with an american imam. make the case, explain it. >> sure. this is now public information. they've reported him to the police, one of these attackers because he kept watching over and over again the sermons of a radical cleric based in michigan. basically, he was one of the spiritual leaders of isis and other jihadis -- stuart: who's that? >> imam jabrill. he's like a rock star in the jihadi world. he has about a quarter of a million people following him, you don't know how many are real, but this is one of the top guys they're listening to. 60% of the foreign fighters that have gone to syria follow him on twitter. stuart: so you're saying, i don't want to put words in your mouth, but you're saying that that imam incited this violence. he helped push this man in london towards that violence. therefore, he's guilty of

something, and he could be arrested, is that your case? >> well, if you're preaching and inciting, a lot of the time the authorities will say, oh, well, that's protected free speech. stuart: and it is. >> well, you can also make the argument that it is treason, it's sub subversion. whenever you declare or advocate jihad, that's advocating war. it's almost as if when hitler declares war on the united states, it's almost like if he didn't say it in english, he didn't declare war. stuart: i think you're agreeing about my position which is the mood has changed. no longer can we tolerate pure defense. it's time for some offense. and arresting or doing something about that imam is on the list. >> absolutely. and often we hear this term home-grown extremism. this is a palestinian that moved to saudi arabia, started studying sharia law and then

moved to the united states. this is still a product of radicals coming to the united states and then breeding this. and that's why he's effective, because it's not like he was radicalized, got his beliefs just from a facebook meme. he studied sharia law, and he's very skilled in the propaganda online because he won't just say go join isis. he talks about the broader themes thalead people to join isis. stuart: was he sent to america as kind of a missionary for terror? >> i'm sure those that were working the ideology said you're very good at this, you need to go to the united states because a lot of islamic radicals made that decision decades ago. stuart: thank you very much for joining us. come back soon. >> yes, sir. stuart: about ten minutes from now, president trump will roll out a major infrastructure plan. you will hear it right here on the fox business network, "varney & company." we'll be back. ♪ ♪ but when family members forget,

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terror in europe and friday's -- well, i'm going to call it a weak jobs report. come on in, john layfield. seems to me, john, as you witnessed this program from sunny bermuda, that this market just wants to go up. what am i missing? >> i think it does want to go up. look, i'm not sure about the corporate tax plan, when or if it's going to come, but we've had the best corporate earnings in the last six years, and i think that's what's driving all this. you had a very anemic jobs report this past week, but we do have historically low unemployment, and you're starting to see a little bit of wage pressure. and with the consumer 70% of gdp, that's a good thing. stuart: tell me about apple, because they're going to announce this siri smart speaker later on today. it competes with the amazon echo which has made a very big splash. do you think apple's joining the chub, a good club to join? what do you make of apple's stock? >> i own apple. i think -- yes, i think it's a good stock to own.

i think one of the main reasons these tech stocks with a lot of cash have been so good lately is because of the repatriation that's probably going to happen, because that's something that's bipartisan. so when you see apple who's actually borrowed, like, $85 billion to pay their dividend, they're probably going to be able to repatriate a lot of that money from overseas, and that's going to be good for this company. stuart: i know -- on occasion we ask you, bring some stocks that you really like. tell us a couple of stockings that you really, really like. and i notice that one of the stocks that you want to put money into is a way to play copper. global x copper miners. how many of our viewers, do you think, ever invest in a copper etf? where do you get that one from? [laughter] >> i think very few. a couple years ago i was reading about copper mines being shut down in namibia, and it's doubled since then. the problem with copper is it's usually indicative of the world economy, but in this case it's

not. because those mines have been shut that were not profitable, now you have the supply side has gone down significantly, so you have a much better equilibrium for copper worldwide, and i still think it's a good buy here. stuart: when you talk about the federal reserve is and qe3, you get buzzed on this program. [laughter] and you know what's going to happen to you if you ever mention an etf in copper from namibia again? you'll get the buzzer. [laughter] >> that's the first time i've gotten the buzzer! stuart: it won't be the last if you do that again. john, thank you very much, indeed. if you see a buying opportunity, we want to know. thank you, john layfield. see you soon. >> yes, sir. stuart: moments from now, you're going to -- we'll take you to the white house where there's going to be the big infrastructure plan unveiled. it is a big deal. you will hear it. stay right there, please. ♪ ♪

stuart: coming up in 30 seconds, it is scheduled for an announcement by the president on the infrastructure plan. that is literally 25 seconds from now. he may be late, but when he does arrive, when he does speak, you, ladies and gentlemen -- [laughter] will hear it, and that is a

promise. now this. in 2015 and 2016, israel hit by multiple terror stabbing attacks, random stabbing attacks on the streets. very similar, frankly, to what happened in london on saturday night. random stabbing. joining us now is the author of the book "peace for peace," david reuben. david is the former mayor of shiloh, israel, and a frequent guest on this program. first question, david, how did israel defend itself and stop these random stabbing attacks? >> well, there are two things, stuart. number one is to recognize that the best defense is a good offense. you can't wait for the terrorists to come to you, you have to go to them. and number two, you have to recognize what is the enemy, who is the enemy. the enemy is not some sort of fictional term called islamism,

the enemy is the core of islam which believes in jihad, holy war against the infidels. and that's, that's the problem. so once you recognize the ideology, then you go after it aggressively, and you try to stop it. stuart: okay. >> and that includes, it includes a lot of levels, stuart. a lot of levels. educational levels -- stuart: but the bottom line, david, is you go after them. i know there's a delay on this, so it always a makes the conversation difficult. essentially, you're saying you go after them, you stop playing defense. >> absolutely. stuart: i want to move on to the arab countries, muslim countries which are now cutting ties with qatar. saudi arabia, bahrain, the united arab emirates, yemen, egypt, they've cut relations with qatar, a gulf state. why are they doing this, and what does it mean, david? >> well, it's a fascinating development. we just discussed about a week ago how saudi arabia is

developing secret ties with israel to combat the islamic extremism like isis and to combat iran. so saudi arabia's very, very concerned about iran, it's very concerned about isis, and qatar apparently less so. qatar has been aiding and abetting the terrorists, according to saudi arabia, and helping isis, helping the muslim brotherhood and has been doing that for years. and recently they came out with what became a very public statement about how they want to strengthen ties with iran. and to saudi arabia, strengthening ties with iran is anathema, and, of course, to israel it is as well. stuart: there's something going on here. there's a new arrangement in the middle east, and it seems to have been provoked to some degree by president trump's visit. do you agree with that? >> yes. well, president trump is trying

to realign things. president trump is open to new ideas. and when you're open to new ideas, then there's a lot that can be done. for about 40 years, there haven't been any new ideas, and obama certainly wasn't coming up with any new ideas that would be positive towards israel. trump is trying to develop an alliance between saudi arabia and israel. those are the two key players in the area. and that alliance between saudi arabia and israel changes the whole playing field. stuart: you know, david, just a couple of months ago the idea of an alliance between saudi arabia and israel would never have been mentioned, it wouldn't have even been considered, but now we're talking about it. david rubin, thank you very much, indeed, for joining us, sir. we're obliged to you. thank you very much. >> you're welcome. thank you, stuart. stuart: president trump, he often take toss his twitter account, and he's done it again this morning. listen to this. he says: the justice department

should have stayed with the original travel ban, not the watered-down, politically-correct version they submitted to the supreme court. judge andrew napolitano is here with his thoughts on the matter. >> i'm scratching my head a little bit and can only think the president is deeply and profoundly and understandably frustrated at the manner in which the counts have treated both travel bans. but in terms of the substance of that last tweet,s it is the president who signed the second travel ban, the opening line of which rescinds the first. it's not that the courts or the justice department had a choice. and the reason i think he did that is the second one removed the language about religion which had permeated the first one. having said that, however, we all know that the fourth circuit court of appeals invalidated the second one. we can guess that the ninth circuit will any day. the lower courts did, and they all used the same basis. the president's words as a candidate told the court that the real reason for the ban was

he wanted to keep muslims out. and if it's a muslim ban, that raises the bar for the government and makes it nearly impossible for the government to justify it. even though on its face it's constitutional, it's lawful, it's an area of governance, it's given exclusively to the president, and he's relying on a statute which has been upheld by the supreme court. how much more authority does he need? stuart: okay. the president wants the justice department to expedite this travel ban request and get it before the supreme court. can he do that? >> no. stuart: he can't do it? >> no. he can't force the supreme court to move at a speed with which it is unaccustomed -- stuart: he can ask them too. >> of course he can. first of all, they have to wait for the ninth circuit to rule. stuart: they have to? >> well, if they follow the rules, they will. but it would be a serious break of precedent. that decision's coming any day. but the interesting thing is, stuart, they may send the case back to the trial courts to try them. there's been no trials to

determine if the determination of these six countries is grounded in fact. in my view, there shouldn't be a trial. this shouldn't be subject to judicial review. it's the president's decision. stuart: right. >> the original travel ban, the one he preferred, ended in 120 days. he signed it more than 120 days ago. it would have been over by now. stuart: i mean, okay. i've got to move on. [laughter] >> all right. it's very frustrating. we happen to be on the same side of this. i understand and i respect the judicial process, but i also understand the president's frustration, because this is a very clear authority that he is basing his decision on. stuart: you see, here's my problem. if one of the people who would have been banned but actually came in and then committed an atrocity in america, if that happened, where do the courts stand on that? they allowed this atrocity. >> thanks be to god, that hasn't happened. right. stuart: it hasn't happened. >> right. stuart: it could. >> of course it could. stuart: that brings the whole judicial process -- >> i'll tell you what he can do

and he is doing on his own, there's fro judicial -- there's no judicial review, is the extreme vetting. they can start demanding more background information and start asking more questions of every individual that comes in the country from those six foreign lands. stuart good. >> the same six foreign lands that were designated and isolated by john kerry and the obama state department. stuart: let's discuss this. prime minister theresa may of britain earlier today said she was going to go after the social media companies. according to liz, and you know more about this than i do, she -- the prime minister -- wants, is going to go after encrypted apps -- >> right. stuart: the british government will break into those apps, undecrypt them and figure out what the terrorists are up to. you don't approve. >> well, in the british system, parliament can enact any law that it wants. as we know. the constitution is a tradition, it's not a written document. i don't think that the british authorities have the ability to

pierce the app. they would have to enact a statute requiring the owner of the app to tell them how to get in. and then it would depend upon whether the owner of the app wanted to do that, wanted to stay in business in great britain or wanted to resist it in the courts. stuart: sure, you've got a couple of supercomputers dub. >> well, no, remember when the fbi was trying to get into the cell phone of the murderers in san bernardino, and they went to apple, and apple said no, and they sued apple, and apple won, and then the fbi found an israeli company that was able to do it. the brits would have to find somebody with the ability to do it. stuart: can i tole you who that is? nsa. >> well, no, this was some private israeli company that jim comey chose not to reveal the name of that the fbi paid a fortune to to get into this creep's cell phone. [laughter] stuart: our supreme court here in the united states, they're going to review a case, i think it's on tracking cell phones.

>> yes, yes. okay. so here is a case where two thugs were convicted of eight bank robberies, and they had with them their iphones. they weren't using the iphones, they were just in their pockets. and the fbi very shrewdly went to the server of the telecom that provided the service to their iphones and said do you guys have the ability to use software to tell us where the iphones were located. not what was said on them, but where they were located. the phone company said, yes, we do. the fbi showed up at the criminal trial with a map showing all the times they were around all these places that had been robbed. they have challenged whether or not the phone company giving that information to the fbi violates their privacy, and the courts below have said it does not. and the supreme court is taking the case. stuart: whose side are you on? >> i'm on the side of private -- stuart: all right. >> there's, you know what? there's more than ample evidence with which to convict them for the bank robberies without

violating their privacy, but this really gilded the lily. this has never been done before. it's interesting that the court took the case. we'll see where it goes. stuart: where are we going next in i'm looking at -- in the president's about to speak? stuart: he's about to speak. meanwhile, fox news political editor chris stirewalt is with us, joining us from d.c. chris, i don't want to talk to you about the infrastructure plan even though that might be what you think we're going to talk about. [laughter] you do, don't you? >> i did, but that's all right. stuart: let me explain what i want to talk about. >> all right. stuart: i think there's a mood shift about terrorism. i see the mood shift in britain, and i see it emerging here. i think voters want to go after 'em. stop playing defense, go get 'em. what say you? >> well, sure. but how? and the but how is always the issue here. everybody wants more action. everybody wants more, as theresa may talked about and democrats and republicans alike in the united states, everybody would

agree do something, make sure it's effective. but in terms of what is effective, what constitutes effective conduct, there is broad disagreement. and as a consequence, you don't get action because people can't agree. stuart: however -- i understand where you're coming from and what you're saying. it seems to me though that there is a change of mood, and it helps president trump politically and absolutely does not help the democrats. you make that judgment? >> well, look, i think what you're seeing right now very much with donald trump, and this is to speak to this immigration or this infrastructure event that they're having today, the white house wanted this week to be about pushing the president's agenda. congress comes back, the senate's back today. there is a ton of work that needs to be done. adding this infrastructure piece of it is yet more on the deck for the republicans in congress, for the white house as they try to push through. that is the legislative path, the path to accomplishment. but the president is tweeting and attacking and engaging in this fight about the travel ban

and about the refugee ban and all of this other stuff, and the roads diverge. could you have a situation in which the occurrence of a terror attack in a foreign country, our closest ally, sharpens the mind of republicans and democrats alike about what action they're open to taking in order to prevent attacks like this in the united states? yes. but not if that opportunity is squandered when the president goes off the beam and engages in a twitter feud with the mayor of london and accuses his own attorney general of doing the wrong thing with the travel ban that he signed. it's too confusing, it's too much. stuart: i take your point, chris. i do take your point. back to the infrastructure plan. it would seem to me the one issue where there is more agreement between republicans and democrats than just about any other -- which leads me to think that maybe infrastructure is the easier program to get adopted in congress. is it? >> yes. and there are many who have said that it would have been better

for the president to take this at jump street, to come off of the inauguration and say here my proposal for a trillion dollars in infrastructure spending. we're going to get americans working, we're going to have better paying jobs, this is going to stimulate the economy. and while he had high capital with republicans to say i know you don't like it, it's deficit spending, it sounds like big government socialism, blah, blah, blah, but we're going to do it now. if he would have used this as his first thing, he could have put democrats on defense. now they've figured out they're going to torture trump over russia and let all this stuff play out. their willingness, openness to working with him on anything at this point is gone maybe until midterms. stuart: okay. i'm sitting next to judge andrew napolitano, chris. just hold on a second, mr. stirewalt, because napolitano -- and i should say judge novel -- >> his honor. stuart: thank you very much, indeed, chris. [laughter] his honor says that building

rooth is not mentioned anywhere in the constitution. >> hey, chris, isn't this more lbj than ronald reagan? >> of course. it's not -- this is not -- if he goes with the proposal that he made in the campaign which is basically to borrow and spend a trillion dollarss on infrastructure projects, that's not a conservative in the traditional, modern understanding of the word undertaking. donald trump didn't run as a conservative or a reagan republican. he ran as an economic nationalist, and economic nationalism from his point of i view says if you borrow a trillion dollars but it puts people to work -- i would say this, the fdr/new deal coalition in the parts of the country where they held sway are now republican voters. it is not surprising that we would see a republican leader that would be more in tune with the new deal concept of central planning -- >> chris is right on the mark, but what will this do to your children and grandchildren but raise their taxes because of more debt service to be paid. stuart: is that the end of your argument? >> well --

>> no one's going to take the constitutional -- maybe rand paul and mike lee and ted cruz will say it's not in the constitution, and they can torture the constitution all they want, but they can't torture the laws of economics. you borrow a trillion today, you're going to be paying several trillion over the next 30 or 40 years. stuart: okay. it breaks your heart, doesn't it? okay, no -- [laughter] >> chris, you see how easily logic is dismissed on this show. [laughter] stuart: how about this for some logic? i'll address my comments to elizabeth macdonald for a moment. we always believe that liberals are late and that conservatives are always on time. so why is our president, who i think offers a conservative -- of as a conservative, 15 minutes late for the infrastructure program from the white house? [laugh >> you're asking me? ask stirewalt. he's down there in d.c. stuart: i know what he's going to say. >> what is he going to say? stuart: he's going to say trump is not a conservative. [laughter] >> well, no! i would say these things often slip because the president has other things to do.

this is a symbolic action. this is -- i won't say meaningless, but this is all part of a week of framing. this is for, this is to start a discussion about this stuff, and that's all fine. but behind the scenes we have no idea what goes on in terms of is there new information about london, is there this, is there that. he's got a big job. >> substantively, if i could, chris' argument is that the president would have been better off to have led with this rather than to have led with repeal and replace obamacare or reform the tax code. neither of which he is apparently going to get done this year. so is this him swinging at the ball where he already has two strikes, chris? >> i think what you're seeing is the return of campaign-era trumpism. so trump comes in, he pleases a lot of moderates and a lot of establishmentarians by making sort of center-right picks on national defense, national security issues, the gorsuch pick, does a lot of things that

has republicans happy and has -- and democrats somewhat relieved. frustrated now at this point, we see the throwing over of sort of the new york clack and the resurrection of bannon-style economic nationalist trumpism from june and july of the campaign year. and that definitely includes the infrastructure package big league. stuart: in case our viewers missed it, judge napolitano did just say that, apparently, tax reform and obamacare reform will not happen this year. >> that's a view that you and i have taken because of the major -- stuart: i didn't take that view. >> okay. i'll take it myself. [laughter] major stumbles, largely by the republicans in the house. whatever that secret group of 14, chris, you know better than we is concocting in the senate apparently doesn't bear the vaguest resemblance to what pal ryan and company -- paul ryan and company delivered from the house, and i don't know that they can come to terms before the november elections. stuart: do you agree with that, chris, obamacare reform and tax reform are not going to happen

this year? >> fake obamacare reform and fake tax reform can come this year. it sounds like they're going to cook up in the senatewe're going to repeal and replace obamacare sometime in the next three years. we're going to fake repeal it now, it's essentially a version of what the paul ryan and the house leadership did the first time. they say we're going to take the tax cuts and the goodies up front, and then we'll put the replacement in later after the next election, and we'll get through it at that point. that could happen. and so could, also, a suite of tax cuts if, if, if they can get republicans to agree on a budget which will be a painful vote. if they can get them to agree on a budget, they can have budget reconciliation, and they can jam through some surface-level stuff. stuart: so it's not out of the question that we will get some form of tax cut this year. >> they'd better. >> it's not going to be tax reform, it's not going to be the tax cuts you want -- stuart: that's a camel on a hair, judge.

>> you're talking about the difference between 39% and 15%. that's hardly a hair. stuart: i was quoting shakespeare -- >> i know who you were quoting. that what you learned at the london school of economics rather than basic economics? >> whoa! [laughter] stuart: hey, chris, that would be taken -- the kind of obamacare reform and tax reform that you're talking about, that would be taken as a win not necessarily by the freedom caucus of the republicans, but it would be taken as a win by the stock market and by ordinary investors and voters? >> yeah. and they've got to have something because right now what is going on is the president and the congress keep outflanking each other, and every time congress thinks that they're on the same page with the president, he goes off in a different direction. this week is a slight representation of that. but, yes, it is still within the space -- basically, he has 30 days. he has 35 or 40 days at the most now that if he can stop with the tweets, if he can be more

disciplined, if he can calm down, if he can work with congress and push this agenda through,s there is a chance that -- stuart: wait a second. you're putting all the onus on the president. >> right. stuart: surely, some should be on the republican party that it performs the way voters expected them to perform, as a party of government. it's not the president's fault. it's a split republican party. >> well, yes. but -- all that you say is true, however, as we have seen with paul ryan, as we are now going to watch with the senate, the presidt comi out, for example, and saying abolish the filibuster, that doesn't help mitch mcconnell push through the agenda item that is the president wants. it doesn't help the republicans get anywhere or they want when the president will wake up in the morning, feel upset about something, make a public utterance about it, and then they have to go back to the drawing board and try and start over. republicans, obviously, were not ready for the majority. they were not ready to govern, period. absolutely true. they did not think it was going to happen, they had not taken the proper steps to make it

possible, and they have failed substantively on key points. that having been said, when you're trying to rally your team, when you're the quarterback and you're trying to rally your team, you're down two touchdowns in the third quarter -- this is american football -- [laughter] you have to be ready to really come off the the huddle and really lead. it won't work if you come out and say i'm going to run around here in the backfield and tackle my own team members. he's got to get -- >> chris, he has no idea what you're talking about. stuart: i have every idea what he's talking about. [laughter] i know exactly what's going on in american football and soccer as well. hold on for a second, left-hand side of your screen, that's the white house. the president will emerge at any moment, and he will detail in some detail the infrastructure plan. it is a plan to spend a trillion dollars spread over ten years to rebuild the nation's roads, bridges and privatize air traffic control. as you can see, the luminaries from economic policy, gary cohn, he's in the front row, jared kushner, in the front row. the luminaries are assembled,

and the president is 21 minutes late. it was supposed to start at 11:30. there has been a delay. any comment, liz? >> no. ing i was just going to -- stuart: no? >> i was going to make a comment on the prior conversation. [laughter] sorry. chris was bringing up, i think, leadership. he was talking about leadership on the president's reform agenda. does that mean, chris, we need a tip o'neill or a sam rayburn type of person in the congress to, you know, get the troops in line and get it done? is there a prop of failed leadership on -- problem of failed leadership on the republican side in congress? stuart: what do you say, chris? >> i have seen lawmakers eat some stink burgers in my day, but probably what the house voted on for that obamacare cuts package was one of the most politically hideous things that anybody ever had to do. you'd have to go back to nancy pelosi making democrats vote for cap and trade that she knew was dead on arrival in the senate but made them walk the plank anyway. these republicans voted for this

knowing that it would be politically deleterious, it would make it harder both in primaries and general elections next year. they did it all, they ate it on that so that they could let the president have a win. he's got to take that -- getting members of congress to experience political pain is really, really hard. they don't want to do it. take that energy and turn it into something. you can't be fighting with your own party. you've got to -- this has to be a dance, not a slug fest. stuart: by the way, we are watching the market, and it's doing absolutely nothing as we wait to hear the infrastructure plan. about 20 minutes ago when the president was supposed to start speaking, the dow industrials were down eight points. as of right now, 23 minutes later, we are down seven points. so the market is clearly on hold waiting to hear what the, what the president's going to say. by the way, with the dow at 21,198 you're about 25, 26 points away from the all-time record high for the dow jones industrial average.

quick question to chris stirewalt whilst we've got him before the president speaks. who do you think's going to have to pay for this infrastructure plan? >> i think the honorable judge napolitano probably said it right. posterity which, of course, has no representation in congress, will get the bill. my grandkids will get the bill. and one of the reasons we have a $20 trillion deficit, more than a $20 trillion debt in the united states is that these people have no vote, right? the future has no vote. you can borrow as much money as you want now, print as much money as you want now, and there is no vote for posterity. they will just get stuck with the bill. and remember, deficits only matter when you're not the party in power. democrats that loved borrowing money with all abandon under obama now have reservations about deficit spending. republicans who bashed obama for his borrowing now find themselves as dovish as possible when it comes to deficits. stuart: but you are ignoring the

idea of some kind of a consumption tax, and i'm thinking raise the gasoline tax at the federal level. it's been in place for 10, 15 years, no change whatsoever. a modest increase in the gas tax would pay for a good deal of the infrastructure planning which they have for the future. do you rule that out completely? no con suggestion tack to -- consumption tax to pay for it? >> if we had a congress capable of -- and what you say, many economists would agree that some sort of a consumption tax to pay for the infrastructure that the drivers are going to use makes a lot of sense. that is hardly an ultra position in washington. but if we had the congress that had the ability and a president that would sign something as politically challenging as increasing the gasoline tax, we would have already solved so many underlying problems, we'd have already dealt with those things. if you had a congress that could pass a gas tax, you would have already dealt with 55 other things, and we'd be in a totally

different position today. stuart: judge napolitano, which would you rather have, a bigger deficit or a gas tax? >> well, you're giving me hobson's choice. i would prefer to pay for something rather than to put the burden on future generations. stuart: but the constitution says nothing about a gasoline tax. >> correct. the constitution says nothing about building roads and bridges and all kinds of monuments. suppose -- stuart: here we go. [laughter] >> suppose chuck schumer starts adding christmas tree ornaments like the charles e. schumer federal courthouse in lower manhattan? what is trump going to do, he doesn't have a line item veto. >> i'll vote for it. [laughter] i want something done so badly whether it's infrastructure or a tax cut -- >> finish -- stuart: i want it. >> you don't care about the constitution. stuart: no, i didn't say that. >> but that's implicit in your statement. stuart: no, it's not. it's just your interpretation of the constitution, isn't that correct, judge? yes, it is correct, thank you. [laughter] >> i hate it when you guys fight. [laughter]

>> god love you, chris. stuart: i know you've got to go, chris, and we will say good-bye to you just momentarily. i'm going to give you the last word. the president's about to appear. last word to you, chris. go. >> if anybody freaks out about the so-called privatization of the air traffic control, this is something 50 other countries have done. it creates a public/private group with a charter well controlled by the federal government that, basically, this is way to defeat organized labor. this is a way to defeat unions in terms of the cost and conduct of air traffic control. this is not a big deal relatively speaking, but still would have to pass congress, and that's something that labor unions would probably have a lot to say about. stuart: chris stirewalt, appreciate it. thank you very much, indeed. >> that is what the president's going to talk about, privatizing air traffic control. putting it in a non-government entity, sort of a fannie mae for air traffic control. this is, they've been -- the faa's been a decade into modernizing 40-year-old technology. the president's trying to put an

end to that. it's about security, he says, it's about national security, it's about safety, and it looks like the union supports privatization of air traffic control. stuart: as you can see from your screens, there is applause in the white house room right there. that is vice president pence, elaine chao approaching the podium. let's listen in to the vice president of the united states. >> secretary chao, leader mccarthy, chairman bill schuster, senator ted cruz, distinguished members of congress, honored guests, on behalf of the first family, welcome to the white house. [applause] and thanks to the leadership of president donald trump, welcome to the beginning of a new era for american infrastructure. [applause]

you know, since the first day of this administration president trump has been working tirelessly to keep the promises that he made to the american people. our president's been putting jobs and this economy first, rolling back excessive regulations, unleashing american energy, ending unfair trade practices, and he's been working with congress to repeal and replace obamacare. and thanks to president donald trump, america is back. [applause] american businesses are growing and investing in america again. more than 600,000 private sector jobs have been created under this president's leadership, and unemployment hasn't been this low for 16 years. but if you haven't already noticed it, the american people also elected a builder to be the 45th president of the united states, and this week -- starting today -- this president

will take historic steps to keep his promise to rebuild america. [applause] promising to replace our crumbling infrastructure with new roads, bridges and tunnels and airports, the action the president announces today will encourage investment, commerce and, most importantly, president trump's actions today will enhance the safety and precision of our air travel in the united states. and as i can attest from firsthand experience, having more precise landings in america is a good thing. [laughter] [applause] so with gratitude for his leadership and vision and with admiration for his unwavering determination to rebuild america and restore a nation of opportunity and prosperity, it