tv Cavuto Coast to Coast FOX Business June 21, 2017 12:00pm-2:01pm EDT
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republicans have beaten democrats. stuart: it makes a difference if president trump and republicans get a win. health care a win. tax reform a win. very, very big deal from the summer of discontent from the democrats. our time is up, but, neil, it is yours. neil: i'm very surprised biggest story of the day wasn't this cheaper gas, right? stuart: touch and to. [laughter]. neil: electoral wins. cheap gas. thank you he, very, very much, stuart. we'll give you update on the race in georgia and what it means. people focus on elections are like snapshots, once snapped it is shot the image is gone. our friend connell mcshane breaks down what happened. of the with foreback-to-back congressional wins, what is lost they simply held on to seats already had and margin might not
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be what you think, connell? reporter: it is interesting. no doubt a good night for the republicans last night and they are 4 for 4 in the special elections to your choice. but glass half-full, half empty. look at numbers. margins may tell us something as we look forward to 2018. we'll look at all four races. with the race in georgia last night, 3.8 percentage point win for republicans and karen handel on that side, compares to last time this seat was open a 23-point margin. we saw in other races, south carolina, which was much closer than anybody anticipated with republicans only winning it by 3.2 percentage points, versus a district where they won by 20 point the last time around. the other two races, four special elections for the republicans so far have gone 4-4, montana, 5.6, versus 16 percentage points last time around. the final one kansas where we saw something similar.
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this was 30 plus point win for republicans in the 2016. special election is six points. you say a win it is a win. certainly is. if they keep winning democrats will obviously not change this. this is what we're looking at as we go into the midterm elections. balance of power in the house of representatives. democrats need to take up a net total of 24 seats. there are a few ways for them to do this, neil. when we look at data, experts, nate silvers of the world, up shot at "new york times," they're basically saying there are about 10 seats are even money. so the democrats would win any of those. they would obviously need more. now they say there are maybe 50, 60, 70 seats like georgia, south carolina where republicans are favored but democrats have a chance. they don't need to win them all. but they have to start winning some. say one, one out of four they would have a shot. that is math.
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neil: history suggests opposing party can do that. republicans did it, or democrats did it in 2006 and turnover, foam mousily 1994. but definitely is doable. what is interesting about some of the data, there is great relief republicans held on to these seats, great relief it will express optimism for getting the agenda through but it seems to be incumbent on them getting all that through because this can turn around. >> reporter: what the democrats need to that point, a wave election. if you're going to get that type of a wave, then it is from their point of view, a republican agenda that doesn't advance this year. then they make up the percentage points they already haven't made up. they're getting closer. they're just not there yet. neil: yeah. >> you need to start turning some of these into victories at some point. you don't need to win them all but win one out of four. neil: a couple dozen seats republicans hold in districts hillary clinton won, right? reporter: right.
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neil: many more, dozen more where she came within four or five points. so i would imagine democrats would be targeting those seats, yet they disproportionately spent on this one race sort of like crapshoot, you know? reporter: i don't think they will be able to spend, doesn't take a math major they can't spend this kind of money 435 races up, to earlier point, when 50, 60, 70 they concentrate on. won't spend every time. but target certain seats, ones where hillary clinton won. you think 10, 12, you have really good chance. still not enough, you need 24. they have to be careful about other ones they go after. georgia or south carolina like contests where gop is favored and they need to start flipping those. so far they haven't. they're 0-4. neil: what is interesting, we have to go, who has most passionate voters. one commentator of course it was raining, that affect the democratic turnout, i'm thinking
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to myself, it was raining on republicans too. they got wet. reporter: reminds of retail. always the weather. neil: assumption being that democrats don't go out if it is raining? that silly. reporter: yeah. neil: connell mack shin. up bright and early. all right, both parties have a little bit of soul-searching ahead of them. nick adams, foundation for liberty and america greatness. we have senior political correspondent from mcclatchy newspapers. katie, connell touched on a lot of this, how do you keep voters engaged. there is passion for democratic voters.
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>> breathing a sigh of relief, but there are some republicans maybe don't breathe a little too deeply. a lost special elections much closer than expected have also unfolded in districts that many people never initially thought should be competitive. while republicans are relieved to hung on in places like georgia and that surprise in south carolina, there are people cautioning this does not mean that the climate will be easier in 2018. at the same time certainly big disappointment for democrats, really as you know spent a lot of money on this race. there was a lot of enthusiasm within the democratic base within georgia and around the country about this race and they didn't pull it out. neil: no doubt. they came close. you smart folks remind me close is not good enough. but it does send a warning, does it not to republicans that voters in each of these states where they have had special electionss four of them now, we believe what you're doing, like what you're doing, we hope you
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do it, right? around midterm time, 18 months from now, they haven't done it, then what? neil: nick first, go ahead. i'm sorry. >> neil, that is exactly right. it is definitely the case that karen handel outperformed president trump's performance in november but it's true that the turnout was not there as it was for tom price just last november. there are certainly warning signs for the republican side but it face irto say, i think that in light of the apoplexy of left, progressive media and all the jazz as you eloquently put it surrounding this political election we can't see it anything other than than resounding and stunning victory, reaffirmmation of president trump. neil: you know i look at these sort of things, katie, being the money nerd here, i start asking money guys and gals within the democratic party if they had to reassess how they went about this, they poured a lot into this race. believe me i can understand why.
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it looked like it was potentially winnable. it would have a huge psychological blow if they pulled off a victory here, affecting republican loyalty, some wayward senators congressman might peel off from the president, i understand that. they could have gotten a lot bang for the buck going to vulnerable districts, far more vulnerable than tom price's district, if they spread the wealth around preparing 2018. they didn't do that. >> there are still a lot for them to do that. there are 23 districts held by hillary clinton that -- held by republicans that hillary clinton won. there is still a lot of time for them to invest in the districts downed road. neil: do you look at barometer of things to come? is this one and done or the case of these special elections, four and done? >> we talked about soul-searching at top of this. no question that democrats are doing some of that. they're talking what is going to be the most effective -- neil: actually they're not. they're talking about the rain
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and all this nonsense. >> depends which ones you talk to. neil: blame whole weight thing on thyroid so i do it as well. nick, i wonder where do you see things going? i don't believe there are anymore special elections per say. two gubernatorial races in the fall in new jersey and virginia. anything can happen there. but i mean we put a lot of emphasis on these races before 2018. is there much of a connect? >> well look, i think there can be. a day is a long time in politics is the famous saying. i think these days with social media an hour is long time in politics. perhaps even less than that. i think there are definitely lessons can be learned by both parties. i am very sanguine about the prospects of the republican party. i think there is real vibe right now in the united states towards president trump, towards patriotism, towards conservative values, and i think we're going to see that really materialize electorally. neil: we shall watch it very closely.
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nick, final word. katie, want to thank you you as well. we have news to share with you on condition of congressman steve scalise who was shot last week in alexandria. he is upgraded now to fair. it is being extended right now period of healing, rehabilitation. remember yesterday i talked to kevin brady, the man who runs the house ways and means committee, very close friend of the republican whip, said he personally met him. we might play that later this hour. he was very encouraged by his healing process, and how with it he is alert and grateful to be alive. with his family, mr. brady telling me he is amazed by his personal strength. so that's good news to hear. looks like he will be fine. might take a take a while but that's okay. meanwhile senate republicans are getting prepared for a health care draft which will outline what they want to do, something that the congressional budget office can then score but now not only democrats who are
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neil: all right. we're very close to republicans unveiling their health care plan. the democrats are apoplectic that all this is being done secretly behind closed doors, i thought to myself, self? i remember something like this. shut out, locked out, we're trying to figure out. you remember watergate? get ready for door gate. started when harry reid held supersecret closed-door meetings on health care. republicans say they are not only shut out but locked out. they call him the hand you did i man. i'm not handy, i admire guys
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like him. do not mistake him from handymaney, so you can open any door, keep it open. >> mr. handyman, can close any closed doors, if need be, keep them open permanently. neil: just so you know, closed doors are a thing on capitol hill. doesn't matter which party is in power. if you want something done, done fast, do it in secret, that is the best way to get something done fast. here lies the conundrum. adam shapiro following it very closely ahead of the formal unveiling i guess tomorrow, right, adam? reporter: the secret will be out when they start sharing a draft of the bill with different members of the republicans in the senate but really once they have had that discussion, it will go to the cbo and mitch mcconnell has said he wants a vote whether this passes or not next week. clearly he does want it to pass. there are a lot of people who are counting on repeal and replacement of obamacare. so that the republicans can move
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president trump's agenda forward. this is key for all kinds of wonky reasons. the bottom line is, you have got to get this out of the way to do tax reform and the budget resolution afterwards but this is what paul ryan, speaker of the house, had to say about what hopes his colleagues in the senate do very quickly. >> obviously we're very hopeful that the senate moves on the health care reform. it is very, very important. remember this law is collapsing. look what happened in ohio. look what's happening in missouri. look what's happening in iowa. more bad news is coming and higher premium increases. so the law is collapsing. we feel we have the responsibility to step in front of this collapse. reporter: neil, one thing to consider, a lot of people like to talk about the fact that mitch mcconnell may not have the votes to pass, this could be a campaign issue during the 2018 midterms, but that could work against democrats especially as the affordable care act, the obamacare act, is collapsing
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around them. finally president trump weighed in on all of this talking about the agenda, saying democrats would do much better as a party if they got together with republicans on health care, tax cuts, security. obstruction doesn't work. that was one of the tweet this is morning. the key with this vote most likely next week on health care just because it may or may not pass doesn't mean this is victory for democrats although being painted as mitch mcconnell doesn't have the votes. it is not over till it's over, neil. back to you. neil: that is so right. thank you very much. adam shapiro. well the senate is pushing this ambitious timeline on health care a lot falls from that including the tax cuts, even some of the other legislative, regulatory relief, that sort of thing, republican senator from montana, steve daines. he already ad advocated cancel the summer recess, push through the agenda, get some of this stuff. how are you? >> good to see you, neil.
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neil: blue dog democrats, conservative democrats meeting with top trump aides. first overture i can remember on this issue and maybe tax cuts as well. what do you make of that? what do you make ever the possibility of democratic participation, help, cooperation, own any of this? >> well, i hope we do sincerely. i find it interesting that there is so much bluster about the process. i got to say the process has not been perfect but the reason there is all this process talk because our friends across the aisle, democrats don't want to talk about the results. go back in time seven years from president obama said we will cut your premium $2500 a year? what is the actual result? increase of $3,000 a year. look at montana, we've seen increases over last five years 133% in premiums. in terms of the old nancy pelosi, barack obama, harry reid adage if you like your doctor, you can keep them, like your insurance, you can
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keep them, 1/3 of the counts in this country are down to one insurer. that is no longer choice. it's a monopoly. several counties have no health insurance company even to choose from. lastly they said it was 23 co-ops. 17 of those collapsed, $2 billion cost to the taxpayers. let talks about the results. neil: on republicans, if this thing falls by the weight of its own bad math, it will be on you, even though let's say your measure fails, i'm sure you don't want to happen, it would still be existing measure, the obamacare cair that would be one that is hiccupping. they will blame you, and how do republicans answer that? >> tell you what. no matter hillary clinton or donald trump was elected last fall, action had to be taken. as paul ryan said in earlier clip. the system literally is collapsing around us on individual market. neil: senator, you're absolutely right about that.
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what amazing in polls, voters are the sentiment if this is unraveling problems with it, maybe mainstream media, but republicans are getting the blame. how do you correct that, say whatever you think of our plan, keep in mind nothing has been passed yet, the plan you don't like, having all problems with it, that is on the democrats under the old administration? >> we need to take action. we need to repeal obamacare and replace it. there are three things i want to see in this repeal and replace. focus number one on affordability, decreasing costs. number two, protecting those with preexisting conditions, making it accessible and affordable, number three, save medicaid for those intended for the disabled, elderly, children, pregnant moms. neil: that is opposite the house initiative which president terped mean. that was taken out of context, his read on him, frustrate ad lot of house colleagues, they
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worked buts off to get it approved and president is not a fan of it. are you? >> our founding fathers put in place two chambers. house put forward their bill. the senate will have its bill. i hope we see bill text this week. sounds like we will. likely up-or-down vote, debate on senate floor next week. neil: that measure would be a tough sell if it has all the features you elaborated on because the house wouldn't accept it. could there be some real problems getting this all ironed out in conference? >> well, there is old saying, i worked in the private sector 28 years, you can't steer a bus that is parked. you have to get moving. hopefully the senate has legislation moves in the right direction. we have something in play with the house to put on the president's desk, something that repeals obamacare, replaces it, putting patients, the states in center of equation, rather than federal government. neil: september timeline, speaker outline, that was for
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tax cuts, you're still optimistic he will get that? >> well, what remains to be seen, i'm concerned we're about ready to look at end of july, all of august, a five-week recess. neil, i can't imagine spending 28 years in business, if your company had really poor results takes five weeks off when you don't have budget passed yet? i think that is outrain just. neil: you don't want them to take the recess. what kind of reaction have you gotten from some of your colleagues? >> some of the newer senators here, senator purdue, senator sullivan, many he elected in 2014 came from outside of government into government, believe we should be held by results not activity, but results. we had seven months fiscal year before budget got passed. imagine if you were a business waited seven months into the fiscal year before you passed a budget? outrageous. we have tax reform to do.
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if we don't get it done we work through the august recess and labor day. that is the people's business. that is why we got sent back here. neil: keep you posted. good seeing you. >> thank you, neil. neil: you know uber's ceo is out, not completely out. it happens sometimes, where there was this guy was it guy and be uber was it company, could do no wrong, controversial, in your face, that was okay because for investors it was a sure money bet. a 18 billion-dollar enterprise if it ever went public it would happenedsomely rewarded everybody, until wife i don't remember got in the way. -- behavior got in the way. horseheadswivellychair.com it could be the next big thing i should totally get that domain name... get your great idea online too... get your domain today, and get... ...a free trial of gocentral from godaddy
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neil: all right. i warned you, america, you didn't listen. you see what amazon is doing after the whole foods thing? unveiling prime wardrobe. essentially lets you he try on clothes, if you like them, you keep them. if you don't, just send it back, all the stuff, paraphernalia you need to send it back. for a lot of people who just sort of end the shipment with things on amazon when it comes to clothes or perishables that sort of thing this could be complete game-changer here. say you're me, don't know bowling shirt size. get a couple sizes sent to you, pick out one best for you. send back other one. charged the one you keep, you're in clover, or you're coast to coast cavuto shirt. we have those as well. all of this is happening at a
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time when there is upheaval in all of these industries, all the retail stocks that take it on the chin every time announcement comes out of amazon. separately big chamber going on with uber, founder, chairman, growing talk at least according to the "new york post," cheryl samberg is small group of people to be next ceo. facebook coo. a lot going on. scott martin, market watcher. on amazon thing if you don't mind indulging me here. this could be a game-changer for people up to now have been feeling skiddish buying at least clothes on amazon because such a pain in the neck to deal with that if they're the wrong size, et cetera. >> they must have been watching me at home, neil, because i can't tell you, i will never admit how many outfits i put on in the morning before i find that one just fits me perfectly and makes me look so good as i do now. so this is great.
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neil: for today, this is the one, that's it, this is it? >> maybe a little questionable, i do see myself now. i'm regretting my choice. but notwithstanding, amazon will use this, neil, to gather more information about you. what you like and what you don't like, so they can further their marketing drive and record more revenue and sales. i love it. neil: what do you make of the fact that uber separately now is looking at maybe upheaval in the boardroom. tracee carrasco has more. i want to go back to the impact of all of this. head of uber, the guy who founded the whole thing is out. tracee, what can you tell us? reporter: travis kalanick is no longer behind the wheel as ceo of uber after top investors revolted and asked the embattled ceo to step down. he resigned yesterday. however kalanick will remain on the board, likely continue to be a big presence in the company since he still retains a control
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of the majority of uber's voting shares. kalanick gained power at uber through employee shares sales but unclear how much power he will have moving forward. the shareholders demanded that kalanick support a bored-led search committee for his replacement. as a member of the board he will have the ability to influence uber's direction as the company cleans up its corporate image. the company board said in a statement, travis always put the company first. this is bold decision and sign of devotion and love for uber. he is taking time to heal from his personal tragedy while giving the company room to fully embrace this new chapter in uber's history. we look forward to continue to serve with him on the board. now here is what kalanick said. quote, i love uber more than anything in the world. at this difficult moment in my personal life i have accepted the investors request to step aside so uber can go back to building rather than be
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distracted with another fight. that personal tragedy he referred to his mother died recently in a boating accident. as for a severance package or salary for serving on the board, neil, we don't know what if anything kalanick will receive. neil: what we do know the value of his stock would be into the many, many billions, if and when this company ever bows public. reporter: true. neil: tracee, thank you very, very much. scott martin on all of that. scott, what do you think? can you sort of put the founder off. steve jobs was pushed into the willed doctorness before he returned. -- wilderness before he returned. what do you think of that? >> reminds me of a vice-presidential debate where travis kalanick is no steve jobs. with respect to the valuation that tracee was talking about, being a private company is the company still worth 70 billion? that was what was thrown out there. the company has suffered a lot
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under kalanick's. they have been encroached upon market share. google, wamo, self-driving car division, $40 billion they are accused stealing trade secrets. a lot of things with the company are deteriorating the segment. kalanick stepping out is a great thing but who wants to step in is anybody's guess. neil: i see this in history, in the interim there is a brain drain, people leave the company, not quite convinced. some may be locked in because they own shares if and when the company goes public will be worth a lot of money and make them a real lot of money. that is something you have to worry about, right? >> it is. i'll tell you what else is interesting. uber really feels like that company, dare i say has run off the road or is driverless at this point, not only from the ceo side but the cfo and many other executives have left.
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now adays, neil, compensation in silicon valley is very interesting. when you step in as a major tiff of these companies, you get stock more than sal rift most of the stock uber has to give in my opinion is falling in value, as scandals come out, reorganization is happening. if you will entice somebody like cheryl samburg, for example, you will give her something maybe falling in value? seems like a tall ask for the company where this will be a big undertaking for somebody to come in to turn this thing around. neil: if you think about it, scott, it was the anti-taxicab company. it was anathema to the industry. it took over the industry by defying all conventional rules that went with it, but now imitating that industry or trying to assuage critics by in this latest offering by trying to maybe get tips for their drivers and all might make sense. might make drivers happy but distinguishing between it and
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traditional cab company or limousine service, it's blurring, right? >> it is and i'll tell you, a lot of the strangles they have had with local governments over problems that they have had with the fact they don't have to register. the uber drivers don't pass a background check like some of medallion taxi drivers do or limo drivers. neil: right. >> there are a lot of things the company -- i will give call that lick -- kalanick and ryan graves a suffer dude who is no longer in the picture, congratulations to those guys who founded the company, they found a way to bypass the rule or regulations. that is catching up to them. you have a 70 billion-dollar company at that was very small a few years ago. seems like kalanick and some of his other guys lost control of it. now they're trying to clean the mess up they were not paying attention to occurring in the first place. neil: scott, fine outfit, i don't care what you're saying
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about it. >> thank you. neil: good seeing you. meantime house ways and means chair kevin brady is still confident the speaker is right, they can get a tax package done by the end of the year, by september, you know what he said that really struck me in a conversation i had with him, that border tax, speaker ryan isn't mentioning. that border tax, the white house is not mentioning, that border tax other republican leaders are not mentioning? he is and rather loudly. ♪ . . but dentures are very different to real teeth. they're about 10x softer and may have surface pores where bacteria can grow and multiply. polident is specifically designed to clean dentures daily. it's unique micro-clean formula kills 99.99% of odor causing bacteria and helps dissolve stains. cleaning in a better way than brushing with toothpaste. that's why dentists recommend polident.
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hidden in every swing, every chip, and every putt, is data that can make the difference between winning and losing. the microsoft cloud helps the pga tour turn countless points of data into insights that transform their business and will enhance the game for players and fans. the microsoft cloud turns information into insight. neil: all right, so many pieces of housing data but this is biggie when is it comes out. existing home sales got unexpected boost. you know the drill. when that happens, anything housing-related pickup in activity, la-z-boy the big
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beneficiary, surging to a 16-month high. then there is kevin brady, the man who runs the house ways and means committee. he has different view what is going on capitol hill. after hearing paul ryan we'll get the tax stuff done in 2017. furthermore the speaker didn't once mention import tax, border adjustment tax. everyone thought it is dead because that is what the white house doesn't want to hear. powerful republicans don't want to hear. apparently that message was not translated to kevin brady. take a look. >> the border tax, itself is that dead? >> it is not. neil: it is not, okay? >> we continue, i still believe it is the very best solution to that problem of jobs leaving the u.s., more importantly how we bring them back. but we will have to remain open as speaker said to finding solutions, consensus among the white house and the senate. neil: all right. that was a big news development here. it is just what we do, we break news, i'm sorry but anyway, one of the things that came up out
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of that, this was done, why is kevin brady still talking it up? since everything seems to be meticulously coordinated with both ends of pennsylvania avenue, is this a sign it is not dead? it will be a tough sell, mildly and doesn't charlie gasparino know that. because brady is the only guy talking about it. >> we asked a lot of our congressional sources, republican congressional sources, they're pretty adamant they don't like it. only two people apparently are for this according to them is kevin brady and paul ryan. and if the leadership -- neil: ryan doesn't mention it though. it's appeal is what, whatever you think of it raises a lot of money? >> it raises money. it is a bone thrown to the nationalist wing of the republican party are against free trade and other countries having an advantage over us in trade matters. neil: because they do charge. >> a lot of them do but listen the economic arguments we can sit here talk about are very difficult. neil: absolutely.
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>> what we really, what would be great to have is paul ryan and tom cotton, cotton is republican who is against it vehemently against it. paul ryan is for it, have a public debate about this. the american people need to know why -- neil: get a sense there is not a lot of time if they want to get this done. >> that is the problem. what we hear from our congressional sources again, people are talking about the house dealing with tax reform around thanksgiving. think about that, if that is true. if house deals with it thanksgiving. send it back to the senate. the senate does whatever it does. goes back to the house, this thing is a 2018 event. neil: tax thing is? >> if that is what they're doing, thanksgiving. the white house has more expedited schedule but it has to go through congress. if that -- neil: if it gets pushed forget about anything retroactive. >> here is what the average viewer has to figure out, if it is 2018 event, will the market
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sell-off and how off? that is question people keep asking me. i will say this, particularly corporate tax cut is priced into this market. this market is pushed by eight stocks, just so you know. so it is kind of a thin, it is a rally that is very narrow. it is set up for a correction. now whether it happens or not i can't tell you. there is a lot of reasons why stocks go up. interest rates are still pretty low. janet yellen has not shown any inclination to raise them fast. neil: what is the consensus? one more hike this year? >> maybe not. i think it all depends on fiscal policy. neil: switching gears a little bit, georgia results coming in, later on the south carolina results, i did notice, watching futures, they were trading off originally, but trading up on prospect republicans holding that seat. pretty obvious they are interpreting that as sign agenda goes through but not endangered, better late than never, right? >> definitely.
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by the way, if the republicans, listen there is degree of conventional wisdom republicans will lose the house in 2018 because trump is trump. neil: even after last night that still holds? >> i don't know. i think it is indication that it will be harder for democrats think to take out republicans. that is a positive event. that is what i'm saying these are things you have to factor into your investment analysis, politics has a lot to do with eninvestment, there is no doubt. neil: world of difference 18 months from now. >> who knows. maybe that is when they get it passed. i don't know. neil: puts pressure on republicans, you better get this done because one of issues came up in polls in georgia was, we're worried about you stymieing -- >> i say this about the georgia race. i was like, looks like the guy, woman, republican won pretty easily, but she got 51% of the vote. neil: in a district won by over 20 points last go round. >> that is not necessarily great. neil: all four of those state
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that with special elections republicans won them all. do not besmirch that. >> small margins. neil: single-digit margins in states that they won by double digits. >> i'm telling you that is a tell, a little bit of a tell. anyway, markets say better -- here is the problem with the democratic party. if you start electing democrats you get socialist agenda. there is no moderate democrat out there in leadership position. they all advocate -- bernie sanders, his brilliance, he was a do-nothing senator for many years, a socialist independent, who literally moved his party beyond obama to the left. neil: to hear the verdict after this, these contests yesterday, we need a bernie sanders type. that a bernie sanders type could have won that georgia race. neil: >> maybe because he preaches a degree of class warfare. bernie sanders is interesting. he -- neil: i covered him for decades. same guy he was decades ago. >> he does appeal to, he tries
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to get the democrats to back off their sort of, you know, kill working class whites. neil: as are yours, as you unpopular. >> you heard what i called connell, he is very, very mad? neil: what did you call him. >> dripping vanilla mr. softy ice cream cone. neil: why? >> because he looks like one to me. neil: he is on your team? we're all together. >> not necessarily negative. neil: maybe? doesn't sound negative to you, does it? >> i called you a -- neil: don't even go there. here we go. thank you very much. thanks for wearing the tie. i appreciate it. >> you want to see my chain? neil: no i do not. >> look, i got 'em. neil: this is like a bad "the sopranos" episode. oil well into bear market territory. one of the big reasons why the dow is down. disproportionately affects
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♪ neil: all right, we've got the first day of summer and a lot of crazy weather hitting nation. extreme heat out west. record temperatures in phoenix hovering around 120 degrees. still planes if they can still landing or leaving there. you have the threat of a tropical storm barreling up the gulf coast here. you name it, the nation is dealing with it. meanwhile middle of all of this, oil at a-month low. gas going even lower. -- 7-month low. prospects for cheap driving season look pretty good. phil flynn at cme. what he thinks about all that. >> neil, getting toking kind of a big selloff not only in oil but gasoline and diesel fuel. diesel fuel hit lowest level since last august. it is tumbling right now. gasoline as well.
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gasoline futures hit the lowest level since november. on wholesale price, if you can buy it atthe wholesale price, you're looking $1.40 for gasoline of the a lot is the negative mood in the oil market. despite the fact that the energy information agency said hey, supplies fellas week, more than expected, the mood is very negative. part of that is weak gasoline demand. week over week gasoline demand was higher than week before but running 1.4% where we were a year ago on the five-year average. so that is kind of a negative for gasoline and the or the culprit for the market today at least for gasoline prices are the u.s. refiners. u.s. refiners are producing more gasline than they ever have before in history. in fact they're producing more gasoline than we can consume on a daily basis by over a million barrels a day. now why are they doing that? not because they want to give us low gasoline prices. they see opportunity in the
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export market. refiners are eating up these low oil prices creating a lot of product so we can send our gasoline to other places and other countries. i am getting very concerned about this price of oil right now, neil. we're 42.40 right now. this, at this level we're well below where a lot of shale producers can produce profitably. that means all the rigs that we've seen getting added week after week for the next couple weeks could be coming to an end right now and we could see u.s. oil production start to peak off. i'm afraid if we go down much fourth than this we'll talk talking about layoffs, bankruptcies, totally different than few weeks ago we couldn't hire enough oil workers to get back to work. neil: no one seems worried when oil-related jobs go. always amazing. phil, thank you very, very much. all right. we're getting a little bit more details on the unveiling of this republican health care plan
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according to senator barrasso of wyoming. it will be debuted to the public 9:30 a.m. that would be tomorrow morning. hence the am part of it. then they pick it apart and it will ensue and lay out the work for the tax cuts an everything else. but it has to go exactly as planned. according to senator barrasso, 9:30 a.m. the plan is unveiled. we'll have more after this. ♪ we're on to you, diabetes. time's up, insufficient prenatal care. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns.
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trained to all right, they survived. they did survive. it sure beats not surviving. it sure beats losing at south carolina state, so they hold onto them. but what is the strategy going forward for both parties to continue holding on for the other seats constitute their majority in the night takes house of representatives and the united states senate that "washington times" columnist richard fowler. you know, there's a lot of handwringing on the part of democrats, but i also think madison, there's a lot of maybe cockiness coming out of republican that might -- they held him essentially in the margins are closer than they were when they were up for grabs. and comment upon voters with this idea, get to work and get
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this stuff done. >> one thing we need to keep in mind is its always changing. these political parties could become complacent, they continue to change and grow with the time. when we talk about elections, both democrats and republicans need to continue messages in an overall vision that resonates with the american people. when i look at georgia specifically, republicans and democrats put a lot of money into the election with tens of millions of dollars into someone who is just as he make 10 points. that doesn't mean republicans should ignore the over performance of democrats and multiple special elections, including kansas, montana, georgia, south carolina democrat over performance by quite a bit from what they're expected to. going into midterms come republicans need need to keep this in mind because they could lose up to 80 seats if we see 8% performance across the board. neil: we are showing the november 2016 election compared to the special elections between april and may.
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of course yesterday in south carolina and georgia. you know, richard, democrats here might rethink the wisdom of point so much money into one race. i know the reasons behind it. it could then very frustrating to republicans and their whole agenda had they pulled it off. they still got a lot of vulnerable republican seats to target should they spread the wealth a little. >> i think they should spread the wealth. if you look at yesterday's results come you saw in south carolina, millions were expanding and democrats made a huge team. we've got to become more than just the resist anti-trump party. we have to be the party with a clear message. we need a page of newt gingrich's book and come other contract for america. what will we do if we are given the keys to the car. tree into do you think jon ossoff in atlanta was too middle of the road, to moderate?
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liberals are saying he wasn't bernie sanders enough. >> i don't think he talked about really new ideas. his campaign was raised on positive fiscal responsibility and voters are looking for the fiscal responsibility and it doesn't make insane at the kitchen table. we've got to become the party for the working family once again and that requires us to go out there and be bold and say we will raise the minimum wage $16. we will offer health care solution that everyone can afford. we will be the party for public education and high-quality public schools in every neighborhood here that is what was missing from the race. you do have to pay for all of that. here's the thing, what we see in washington if you look at trumps budget deal, we're stifling all this money to the pentagon ultimately programs will be slashed drastically. case in point is the department of education where they will take a couple billion dollars cut including afterschool programs and summer enrichment
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programs. neil: they have to articulate that kind of thing. madison, one of the things i always wonder whether republican need something like history and this notion that victories can be short lived here. in the case of them being done in georgia, for example, the expectation that the republicans deliver on the stalled agenda. if they don't come in the ones voted for them could just as easily but again been. >> absolutely. that goes back to when i mentioned earlier. the parties need to continue to change with the times. they can't just assume because they wanted for 30 or 40 years. what would happen in 2016 with president trump. before taking democratic votes. tree into do you think in this race are in this particular georgia race not so much? >> i don't think so. i think karen on the one because
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she is with the voters in that area. a lot of her donations came from the georgia senate peer neil: what he think what he thinks i'm always trump a factor in this race? >> was interesting in her acceptance speech he didn't say the word trump, she said the president of the united states. what handel was able to do is distance himself enough from the president should not take on the if he does have. one point i want to make your as history has an odd way of repeating itself. remember in 2008 when president obama won, democrats won all the special elections in that year. and guess what happened. we got walloped in the election. so before you know republican should pay attention to history. >> sema 2010. the republicans joining the house. they thought they were on their way to kicking barack obama now, but it didn't happen.
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thank you votes very, very much. >> thanks, neil peered neil: the most expensive race in american history, political history, some say we've never seen anything like it. those that said age for even bigger ending in 2018? david, i think it might be the opposite. people might pick and choose their battles were surgically underwriting the left. what you think? >> i think you're right. the elections last night, you are correct were just a chance to keep going for republicans. what our polling shows is consistent with that, but if they are surgical and they pick the races and stick with their agenda, they can win. we have done polls in montana, west virginia, west virginia, to stay for a comments rss president trump one in a very big margin.
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what the polls show was as when republicans claim repeal of obamacare and reminding people of the mandates, the taxes come in the high premiums they pay, it's a winning issue. so they have to stick with your shoes, go full bore ahead and then they can be successful in 2018. >> you don't like to make this all about who gets the blame on who gets the credit, but it is interesting when they see the surveys about the state of obamacare right now. a lot of folks are blaming republicans, even though no measure of theirs has come forward or been passed outside of this one taken by the house process in the senate, yet is it your sense republicans can get the blame even if that never comes or if their measure never happens and is still the affordable care act? >> definitely because it happened on their watch. polling also shows if republicans fail to pass repeal
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of obamacare, republican voters will stay home and not vote in 2018. either way, the problem here is first paul ryan and now mitch mcconnell are using a bad strategy of keeping things secret and that spring secret and that's bringing in on people. that's what chuck schumer and the democrats defined the debate about preexisting condition cbo numbers. >> believe me, democrats pulled the same sense. the one thing that happens in this debate about not being informed as you hope you make up for it by getting something through quickly. time is not republicans right now. i agree the voters have given the belief to get this stuff done. let's say the year and they haven't had either done. will voters like markets weigh it out and say better late than never, next year certainly not getting it done. >> i think they've got until the end of the year.
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it point, people realized in an election year we will not see the program legislation and frankly you will see the markets pullback. you'll see the economy continued to stall. everything depends on the health care bill and even more important, the tax cuts of people can go back to work, see the economy grow and republicans as a political basis can say look, on our watch returned at around and they got jobs for your children and the economy is better. >> we can always do this monday morning, wednesday morning quarterbacking. but if democrats poured a little bit more money into south carolina, which turned out to be far closer than anyone thought, it would've been different. >> it was closer, although we were closely watching that because our candidate if it ever looks like we could catch them, we're ready to come in with more money and define the issues because ralph norman is a great champion and will be a great
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congressman. neil: will watch it very, very closely. good to see you. we had the south carolina winner , the first tv chat since the first big win. conducting a very civil campaign in north carolina. but it was interesting what issues they had triumphed in the end. also, "the new york post" is reporting right now that uber c. o. o. sheryl sandberg has been made to see 00 -- coo. yes, sheryl sandberg. your insurance company
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neil: should we expect the chinese do more good economic recover the chinese? would you think of that? >> well, the chinese like us to have problems in the korean peninsula. they like this turmoil because then they can make their move geopolitically, militarily, trade wise. neil: secretary of state eric tillerson, do not miss meeting with north korea. they are going to address reporters there put out a statement at 3:00 p.m. today. >> these are meetings going on
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throughout the day between jim madison defense secretary rex tillerson. they are at the state department right now and they will have dinner tonight and a slew of meetings throughout the day as well. we expect something from them at some point. just when they started off their meeting. they didn't address any questions from reporters. as you know, this is an issue that the trump administration, the president himself have been trying to take to the forefront, some typos relationship with the chinese, especially to work with them with the many, many problems as it deals with north korea. some of that is taken heightened importance in the last day or so the american college student who is over in north korea was returned back after roughly a year and a half and passed away earlier this week.
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we now know officials, aides close to senator rob rob portman tells fox of the ohio senator back in december, neil, three months ago who met with north korean officials to try to essentially convince them that otto warmbier was just a college kid and to be able to let him go. back to the issue of north korea. this has been a friendship that these two have been mentioned have been trying to cultivate with a short time in the trump administration. earlier this year the president hosted xi zinping down in mara lago. they have invited jared kushner and ivanka trump. what i can tell you is separately to baghdad, mr. kushner, ms. trump a few days ago in washington d.c. met at the trump hotel, had dinner with terry branstad, of course
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he was the u.s. ambassador to china. when you look at everything going on here, the chinese meeting with the u.s., invitations back and forth, to work on a slew of issues at the top of the agenda most certainly north korea. neil: thank you very much. resident trump when it comes to helping us with the arena, which is sort of like what a teacher would tell me. i suffer, neil when it really wasn't a great effort. with that former cia analyst sunni terror. welcome to both of you. this notion that the chinese are not doing enough is widespread in this country, especially after the death of this young man and the chinese are stringing us along. >> they have been stringing us along for years. the brahma administration and everybody tried here this is a long-running thing.
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it's not enforcing sanctions on the ground. they talk a good game, but they have not been doing so. >> we've got to do something different. >> in the past we haven't had much success, but what: other elements, there has been sanctioned pressure put on. i had a meeting long ago with henry kissinger is that if your strategy is to try and get china to turn its back on an ally, it's never done that in history and they're not about to start with korea, north korea where they want a buffer between themselves. >> they must know they are playing with dynamite. >> look at this text or tweet or whatever was as an exoneration like you're off the hook. i think the clear message is not to look at this new dimension. but this is a message to china that you better try harder. tree into the behavior could change, but the rap on the chinese is maybe to avoid being called a currency manipulator,
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unfair trader, string the white house along and try to drag this out as long as possible. with the death of this young man, some say of the missile tests in north korea hit a nerve. will it change things or no? >> fundamentally i don't think so. historically, tactically china will do a little bit more. fundamentally in that order. kim jong un is being a pain. no class and once a buffer. north korea, health identification. all of these leaders have fundamentally changed the priority strategy. >> peter, the other option is we are done dealing with sanctions in north korea. now we will get tough with you. that can be a double-edged sword. >> i don't think getting tough
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on china is a solution. we are getting as much as we are going to get. what interesting they find his china recently said about us that we in north korea have a head-on collision with neither side willing to blink. china does have a role to play here to tamp things down, but there's nothing more aggravating i promise you including the one ballot initiatives in the face. they are not happy with north korea. i can promise you that. >> you know, what i see happening, maybe the numbers here, when their markets are tanking only fear of the entire region that china perceives its unable in the tanking ensues. it hasn't happened, but that's the only way i see them getting off the dime.
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>> whether it's real war or conflict or instability and economic instability. i think what the trump administration will do this secondary sanctions against the chinese because that's the only other way. >> the history with the trade wars is that they get worse in a boomerang on people, initiating not more. >> it doesn't get any better. if you look around, the chinese stock market is doing reasonably well. the kospi and south korea is up to new highs and even when they are launching missiles it doesn't seem to have any impact on the market whatsoever. neil: most people assume nothing will come of this. >> i don't think people think something bad will come of this. >> what if this is off the coast of japan, closer to russia, that an accident, a development could
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change everything. >> right. it could've been an accident. miscalculation is now high for north korea and washington. remember when the north korean say, something like that could escalate into greater crisis. >> i'm the father of four uva alums. when you watch something like this elevate way beyond any of these commercial or marketer military. this is all across the world. this may be the kind of thing that causes some real thinking. >> when you say real thinking, and a release ambassador richardson yesterday. release the other three american hostages. and then we will talk. so far, north korea is not giving any hints. >> they are making moves if you look like they are moving forces.
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so they are being one of those problem children that do exactly what you don't want them to do. unfortunately, there were the three americans, one canadian half a dozen or so south koreans. they could be an important element in whatever resolution. if we don't go there, and we refuse the number of options which is this head-on collision, which we all fear. >> it's afraid of in a phase like a terrorist attack. this sounds horrible the way of framing this. how do we make this look very real, but it's a real possibility and even if it works, >> only but i'm afraid they might actually conduct more attacks. >> what about a coup against them because others are concerned. >> i don't think it was a
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possibility. >> he's over there indeed. he covered up everybody. >> not only when he goes after the enemy, but their entire families. >> exactly. three generations of it. >> whatever we may feel, there's not one shred every more sinister man and so the result is you can't do with somebody with that mentality. neil: why did they release him? >> i think because he had no value. >> they release otto warmbier because he looked like he was about to die. they still don't want you to die. >> to three that remain have value. this became an asset. this channel. you have to look at the north korean has the lowest common
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denominator. they do not care. this is a man who doesn't care. neil: guys come in thank you both very, very much. always waiting for that news flash. i would love to tell you, but still waiting. the senate republicans are set to unveil this health care measure tomorrow. 9:30 tomorrow morning coming from senator john barrasso of wyoming who says i guess i commend the theme that a lot of senators -- he was right about that. that. didn't take kindly to that.one. tomorrow morning i think theallf
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neil: gop to draft so the cbo can go quickly this morning. obamacare. jerry gerri willis has the latest on that. >> several deadlines for the 2018 participation and obamacare exchanges. some states to cut participants. some lose them. the good news is in tennessee, let's take a look. folks would be left with no coverage. relative newcomer to the exchanges.
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blue cross blue shield has announced plans to participate in the knoxville area. florida blue has said it will remain in all the states individual counties in new jersey, oscar is reentering. oscar is named for cofounder jared kushner's great-grandfather. iowa as they talked about a lot with the last major insurer medic had has 43% premium increase in the exchanges. iowans would have no options. getting more insurers to participate in nearly every state is you can imagine. in 2014, states could boast an average of five insurers. by 2017, the numbers of insurers fell and this year, 21% of enrollees have access to a single insurer. a full animation bear. i guess we lost it. interesting stuff. they say that they expect
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negotiations to continue for weeks. two more deadlines filed august 16th in september september 27th. i just want to mention before i go. they want to participate in the exchanges, but they've made no final decision. business publication. cigna is out of maryland. there will be more providers in those two states. we expect this to go on for weeks if not months. if you want to know what people will truly be paid in 2018, neil, you will have to wait until the end of the year. neil: don't look at those windows. thank you very, very much.
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they debut all of this tomorrow, especially after south carolina. time as they say is wasting to tennessee republican humberside marsha blackburn. very good to have you. what we are told is whatever the senate comes up with to be scored by the cbo will not be as mean i guess is the way that's been described as the house measure. what you make of that? >> i think the house measure was sent and responsible. it puts us on the right track to make certain that the affordable care act goes in and the focus shifts to patient centered health care and individuals losing insurance in the individual market place. i use the premiums, the cost of these premiums come down. our goal is to make certain they have access to affordable health
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care and when they have that insurance, they can actually use the insurance product they got. >> we are told democrats have been secretly meeting, maybe not secretly meeting with the white house aides separately as chuck schumer has indicated he's open to discussions on this health care team. is it crucial to you, congresswoman, and some of your colleagues that repeal thing, which is a nonstarter for democrat, that whatever you are going to do is dramatically replace what is out there anyway without totally getting rid of it. if it's a way to bring democrats on board and get a bipartisan deal, would you be open to that? >> well, do we have to look at precisely as this. the insurance marketplace is imploding. what you have to realize is whether they want to call that removal or repeal or whatever.
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it is not going to continue as it is because it is not functional. when you have a marketplace that cannot be sustained and people are not acting to get into that market place, 19 million americans last year chose to pay an irs penalty as opposed to getting into the marketplace. that tells you this is not working. indeed, you have to be able to say lets why not down and find another way. neil: it's a lot different than just repealing. it seems to be the linchpin. it's not working. they want to make sure when you're gutting the thing you are not just totally removing it. preexisting conditions. i understand all of that. there's a lot of agreement on
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the basic tenant. i guess to get democrats on board, to make this a partisan, unlike the affordable care act, would you be open to saying all right, the repeal thing, not a dropdead qaeda have feature. >> they would repeal obamacare and replace it with patient centered health care. if you go across the country and ask americans, they want to know on a date certain and the impact the affordable keratoses to be in existence. >> even though the features they like he won a key. >> are features that have bipartisan agreement. you mention preexisting conditions of her children who were students. those are things there is not a contest about if you will.
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we announce give the senate a great starting point. we look forward to tomorrow morning when we receive their bill. neil: you have no idea what the net. >> no. they are keeping it under wraps. we were very open and are processing. even in committee we had a 27 hour mark up straight through. neil: if they are keeping it up from you, you were a big deal. thank you, congresswoman. >> you bet. tomorrow morning a total debut. we'll see how it sorts out. all of this extreme heat that is wreaking how they been a southwest airlines. temperatures are expecting to stay for a while. tropical storm threatening, all of that going on as amazon is making some continuing news of its own. trying to take over your closet. we do groceries and food.
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neil: all right, officer stabbed in stable condition. more details. it is being investigated as a possible act of terrorism. the assailant -- that's all we can tell you right now. trying to get more details on this. a little too close for comfort. a little too close for home. we will let you know. meanwhile, you already know the middle of the heat wave, particularly in phoenix. this kind of heat off the chart. hard to do anything in that city these days. into and out of bair kind of
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grounded until the ground is cooler. meteorologist adam klotz at the weather center. these temperatures continue. >> cave bear, neil. not going anywhere too soon. the conditions you are dealing with, 118 is the magic number. we are going to stick with that, at least the next couple days. heat advisory stretching all the way from portions of central california to phoenix have been towards las vegas as well. incredibly warm in the desert. currently sitting around a buck 10 and other locations. they've got time to continue to heat up. they will continue to heat up and those will be impressive once again. you do see spots running into the one twentieths. true over into the death valley area. unfortunately for those folks, this isn't going anywhere quickly. from 118 today, hovering into
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the mid-115 range close to thursday, friday, saturday and heating back up on sunday. maybe a couple degrees, but this is incredibly warm here for the next little bit. that is what is happening on the west coast. continuing to see up tropical storm cindy. all the rain stretching proportions of new orleans towards the gulf coast. that is very heavy rain. they seen a tornado twist in alabama with the last little bit. the twisting nature, there is your tropical storm. the houston area running up on louisiana, texas border. the majority of the system something you're paying attention to on the east side of this. that's why you look a flood watches advisories. anywhere from six to nine inches. we will see some flooding in the next 24 hours. >> it's a lot of stuff going on. >> yes it is. meanwhile, amazon taking over
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what you eat and not taking over what you wear. trying to make it easier for you to buy clothes from them. essentially an option to let you try on the clothes before you buy a close. that might be a deal maker for a lot of folks who now buy stuff like that from amazon because they couldn't do any of that. following this. what you think? >> i think it's a very interesting idea. exhibit c., amazon and all the different risks it's taking any steps it is taking to innovate and really shake up retail. we saw so much. this isn't even the biggest headline for amazon this week. we saw so much news and not taking away and not being sure something is going to say it is definitely going to bring more people in. >> how does it change with a birdie been doing?
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like a bowling shirt and it's the wrong size. i can just return the packaging. how does this make that easier? brainless, you can easily do it. >> the big difference is you bought the shirt. this time you don't even have to buy the shirt. they are trying to encourage you to take things into your dressing room, which is your closet now. you can go to three items and they will ship it to you and ship it right back. this is really bad news for conventional retailers who are already suffering quite a bit. it might be great for shoppers, but i don't think so great for america. >> i'm just wondering because all the retailers are down on this in the grocery store chains are down earlier on the whole foods news their regulators to pipe up and say wait a minute.
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you know? >> yeah, so here is the tricky part about amazon coming in and shaking up all these industries. amazon is not treated by wall street as a retailer. amazon is a tech company. the price earnings are 187 earnings. macy's is eight times. what does that mean? amazon gets very cheap capital from the markets. it doesn't really have the same pressures and motivations like these conventional retailers and that allows them to put the big industries out of business ended is something that should be looked at because -- neil: i guess much like mom-and-pop, raising complaints about wal-mart getting big in pushing out of business, that is the wal-mart than these others that complain about amazon today. >> rate. so i don't know how you think
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about considering amazon a monopoly, but i think there is definitely an argument to looking at how to regulate market and the extent to which it is appropriate to have companies with such vastly different market caps. i don't know if that's really the area you focus, but it's a very tricky area. neil: monica, thank you very much. uber is looking for a new ceo. its president and founder is stepping down, maybe permanently. who was on the hunt after this.
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neil: all right. uber now for the new ceo is looking to sheryl sandberg as the coo. there could be others. of course that could change. market watcher joining us now. will it make a difference. say what you will of the founder, the life and brains of the dna behind this company. not comparing it with the steve jobs at apple. when you push the founder out to
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pasture here, generally is not helpful to the company, whether you like the guy or not, his style or not. >> this may be an exception to that rule. users generally really like except that they know there's this kind of creepy side behind the company. i don't think they could have become what they've become. i don't think they could've stepped down as many toes of their company culture and busted through as many roadblocks so to speak as they have if they didn't have that culture. but i'm not sure that you can run a company valued at $70 billion like you did when you were having to fight tax the cartels. >> to get to where you are, you needed someone like travis kalanick. now that they are they are they don't need. but then, you still need someone who's not only going to keep the
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lemma and someone who gets the vision. competitors are moving fast. google with a separate suit on other matters. the wolves are circling. >> they are and it's a mess. i was talking to somebody yesterday who is familiar and they essentially said it's going to be hard for them to find because they have created -- you know, they in essence took all of the aggressiveness of her a little too far. they've got a big task is full of problems. i would say this. whether it sure will sandberg or fill-in the blank icons to do it, this is one of those that if somebody pulls off, they are going to have a reputation in turn themselves into a legend of the tech community. it is a high risk, high reward offer somebody to consider. neil: what do you think happens
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to kalanick? obviously the largest shareholder. he could be a billionaire a million times over. normally that translates it to significant sway. so no one is crying financially for him. but what role do you think he would play? he would still be on the board. >> he is still on the board in my understanding is he and his cofounders fundamentally still have voted control, which is kind of remarkable. so that timmy is going to be a big tender in and trying to get the next person on board because his considerable, his enormous shadow of the notch for newer and has an aggressive guy hangs over the company. i don't think the turbulence in ms. uber ride has come to an end yet. neil: daniel maney, thank you again. what that essentially means is
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trish, reminder we have the south carolina winner, ralph norman. he barry won. that is race maybe democrats poured money instead of georgia. first tv chat, 4:00 p.m. fox news, "your world." trish regan. trish: thank you, neil. we'll be on it. president trump and republican party proving yet again the democratic party has no message. they're running on this anti-trump platform. look, it is not working. not working at least in georgia. overnight republican karen handel securing a huge win in the georgia special election as president trump heads to iowa in a few hours to meet with voters and get his pro-growth agenda back on track. we're near lows of the session. down 68 points on the dow. oil still getting hit, plunging today. we'll have a live report on. i'm trish regan,
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