show. the dow is down 4points. it has been a special show, especially last hour we've been joined by mark steyn. the man is brilliant, funny, insightful. all together a good guy. i think you're okay, mark. >> flattery is the mother's milk of -- stuart: my expression. connell mcshane in for neil. you, sir. connell: look at three of you. no irishmen on the set. good to see you, stuart, thank you very much. interesting to watch the market reaction, everything from going on to fire and fury, the north korean threat, some people, many people are taking more seriously than they had been. the feel of it may feel like we're on the verge of war but in addition to the markets enter secretary of state rex tillerson trying to calm everybody down. >> i think americans should sleep well at night. have no concerns about this particular rhetoric over the last few days.

i think the president again, as commander-in-chief, i think he felt it necessary to issue a very strong statement directly to north korea, but i think what what is the president was reaffirming the united states is full kay capable of defending ourselves from any attack and our allies and will do so so americans should sleep well at night. connell: sleep well at night. we have a show of force of u.s. bombers flying over the korean peninsula. group of south dakota airmen are ready to fight in guam if needed to. with that as the backdrop, let's turn to our expert. former advisor to vice president dick cheney, john hannah, and hudson institute fellow, rebecca heinrichs is here. the secretary of state's choice of words we all should sleep well at night. what do you make of that? >> i think clearly the secretary is trying to tone down heated

rhetoric from yesterday to reassure allies and reassure the american people but i've got to say we can't avoid the fact that this crisis is escalating. that north korea is getting closer and closer to being able to hold hostage a major american city to a nuclear strike. that is a very deadly serious matter, and i think the president and his national security team are right to treat it as such, and they need to start talking to the american people how serious this challenge is. connell: want to talk more about that in a second. with the options such as they are for us dealing with it, but, rebecca, on the heated rhetoric question as john brought up, the president yesterday with the fire and fury comments "the new york times" reported that those comments were entirely improvised, came as a surprise to many of his aides. if that is true, does it change your thinking on that today? >> no, it doesn't. i'm hearing general kelly, the

new chief of staff has been in regular communications on this, that fire and fury was something talked about before. we'll get all kinds of conflicts reports who has control over the president. he is his own man. he is not foolish. i don't think he is reckless. i think he understands the threat coming out of north korea. he is working with his national security council team and working with his new chief of staff, what he is trying to convey, the reason the rhetoric is different this time compared to previous presidents, in the past when north korea would threaten the united states, they had the will to do it but not capability. now we see with two recent icbm tests, combined with news they have a miniaturized nuclear weapon to put on the missiles they have the capability to make good on the threats. the president has got to convey, we're not bluffing. neil: we're serious, we will not let you maintain that capability. connell: john, you said a few minutes ago there has to be more of a conversation with the

administration and people, exactly what we're dealing with and what we will do about it? >> i think we're getting close to the time where the president needs to start talking to the american people, perhaps directly in some kind of a presidential speech or address he clearly identifies the priority he attaches to this threat of a north korean nuclear weapon being able to threaten the continental united states as well as our allies in northeast asia. that we are going to -- this is a dangerous situation. that the united states he is determined to protect the american people an our allies in in northeast asia against any kind of north korean aggression. that we are prepared perhaps, and need to be ready to take very tough measures, particularly economically, vis-a-vis china, to increase the pressure on bejing to use leverage only it has to bring this crisis to a peaceful resolution by bringing the north koreans -- connell: this address is something you think is called for? >> i think we're getting close

to that because these headlines, i think are scaring a lot of people. i think it takes president in a sober address to the american people to provide this with some context, some degree of assurance he has the situation under control. that there is a real strategy to pursue it not only with allies in northeast asia but with the u.n. security council and others in the international community. connell: say he does that, rebecca, what should he make his priority, the president, in terms of what is the big message you want to get across there, that preemptive military action is on the table? we're told over and over talking to more folks throughout the show today, there are no good options, right? if you take preemptive action that our allies in places like seoul, south korea, or tokyo would be at terrible risk? even though it is said to be on the table it really isn't. what should the president talk about? >> i think it is past time the president to do those. he needs to do something like

what ronald reagan gave with the famous sdi speech. president trump has vision president reagan had, this would be a great time to calm the american people, capabilities we have to defend them, this is missile defense system. we have limited defense system to provide protections against some kinds of missiles like those in the north korea to protect the american homeland. he should state that. we have to do more. we have to increase defenses to make sure the united states is not held hostage. that is only a piece of the puzzle, we have to make it very clear, communicates to the american people, when he gives a big public address, he understands china is listening and north korea is listening, that mess should be we're willing to use force. even though it is terrible thing and we don't want war on korean peninsula, we have to make sure the north koreans understand we are willing to use force so they don't -- connell: john, do you agree we're willing to use force? going back to the earlier point

we're sleeping well here in the united states and all those american cities, aforementioned cities like seoul or tokyo, if we use force they would be dealing with something catastrophic? >> yeah, there is no question, as secretary mattis has said, this would be absolutely devastating any kind of war on the korean peninsula particularly to our allies in south korea. connell: does it take use of force off the table in your view? >> no, i don't think -- you've got, the only way you get to resolve this peacefully is one critical baseline piece has to be the credible threat to use military force to counter any kind of north korean aggression against us or our allies. i think you have to have that. you have to build up our capabilities. i think rebecca is right, we need a manhattan style crash program now on next generation missile defense, ability to have unlimited shots at any kind of north korean array of missiles that might be fired at us.

connell: we'll talk more about this as we continue. john, rebecca, thanks to both of you for your time. we do appreciate it. now there have been critics calling the president's rhetoric reckless. we heard that from a number of people over the last day. he has tweeted earlier today, the president how the u.s. nuclear arsenal is now far stronger and more powerful than ever before. that was a tweet from earlier in the day. let's bring in from fox news my terri analyst colonel david hunt who joins us. colonel, continue the conversation. i'm sure you heard the latter part on use of force and whether preemptive military action is on the table. what are the consequences of that, to the point whether we have any quote, good options here? >> let's understand a couple of things. we've been historically 40 years under the threat of nuclear attack from china and russia. we'll get through this, okay, with a lot more missiles than

north korea supposedly have but what is happening is, people talking about preemptive strikes or decapitation as if they will be 100% successful with no repercussions. in all the war games we've ever done, if we decide to do preemptive strike the north koreans will get six to eight-minute warning. six to eight minutes is enough for hundreds of thousands of rounds to go 30 miles south of demilitarized zone of north korea. connell: right no the other thing if we go on the ground, we have to move soldiers and move marines and aircraft. it will not be a secret. north korea will not lay down. we would win the war. not issue who would win. we have greatest military we ever had, phenomenal, however, so civilian consequences would be a million casualties plus in first three or four days alone. that may be too much for anybody to swallow. so, talking tough to me doesn't work as well as preparation.

last point, we do not have a very good missile defense. it is shooting a bullet down with another bullet. we're less than 50% on our tests. so, yeah we've got to get on that if we seriously will do something. as hard as we want to hit north korea, they get to punch back. connell: if they fire a missile, our chance of shooting it down is about half? >> or less. which don't have a lot of them. our tests, this is very, very difficult technology to do. and we certainly can do that. connell: so what is the least bad option by the way? what is the least bad option, you're not only one saying this. a lot of experts have the same line of thinking. what is the least bad option available? >> there is no least bad option militarily. anything militarily we want to do there is retaliation of seoul. we have 28,000 soldiers there. the issue, what do they want, how do you get them there?

this has to be discussed, talks. we have former active military advising our government. these guys have been to war. they don't want to see it either. connell: talking about mattis, mcmaster and kelly? >> of course. everyone of those guys has combat -- connell: what about confidence in the president himself? >> i think six months is too early to tell. i'm very confident in the three guys you just mentioned all have serious combat, led soldiers and one lost his son in 2010, kelly. connell: right. >> i think it is too soon to tell. this is the first real military crisis the new administration has. it is a big test. connell: colonel hunt, thank thk you, sir, for your views. talk to you again soon. in the market today for all this talk we've been having for the last ten minutes, we're not selling off like crazy by any means. we're down, the dow is down 52. not like another record breaking day, doesn't look like it right now, certainly something short

of mass hysteria on wall street. we'll take that up after a quick break in terms how the market interprets this type of news overseas. maybe why it is not down more. we're coming right back. ♪ attention homeowners age 62 and older... dr.ben carson, the secretary of housing and urban development recently affirmed his commitment to the reverse mortgage program. "last year, hud proposed a new regulation that would make some improvements and strengthen the program" said carson. improvements include spouse protection; required financial assessment; and adding draw limits. all to help make the program more successful for seniors. the reverse mortgage isn't just for people that need it, it's also used to enhance a retirement plan. one reverse mortgage, a quicken loans company, is known for top-notch client service. call now to get a free packet of information with no obligation. a reverse mortgage allows homeowners age 62 and older to eliminate their monthly mortgage payment,

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connell: stocks. disney is worth 28 of 53 points to the downside thanks to earnings last night. to give you some perspective on that. gary kaltbaum joins us as well as mark madsen. gary, we're off the lows. maybe secretary of state rex tillerson calmed people down a little bit, even before his comments we weren't down a ton. as i said disney has more to do with it than anything else at least on the dow today, so what do you make of that? >> look, bullish markets are hard to get hit to the downside, simple as that. something with north korea doesn't do anything. you have got to realize interest rates are still low. there is printing of trillions of dollars across the grown. earnings are pretty decent when i scope through. you have stocks like boeing that was moonshot on earnings as well as a few others markets are good stead. i'm not worried so much.

connell: what is the read, mark, that market participants are making calculation this is a lot of talk about north korea, but as we all hope there won't be any action but is there a bet there won't be any action? is that it? >> anyone that tries to predict the future is foolish because no one can do it. my message to investor don't worry about going into war, it's a scare proposition, long-term equities make 20% on upside. they are up three out of four years. when they're on the downside, down about 13%. hardest thing for investors to do, to sit on their hands. diversify globally and rebalance if we have dips. connell: talk about that, i will go back to gary in terms of what our risk appetite should be. we see a risk-off trade today, not as violent if you were just looking at world news headlines. everybodiries -- treasurys are up in price, stocks are modestly

lower, so what is your personal appetite for risk, mark, right now? >> each investor has to look in their own heart and determine anytime you own equities you have to be prepared for a 30, 40% pullback because you never know when it will happen. to the extent you can't take that full risk, you own fixed income, rebalance when it crashes. don't make the mistake when it goes down to sell it off. look at 2008 and 2009 everybody panicked and got out. if you can't stand the heat you shouldn't be in to begin with. you can't predict when it happens. next 30, 40 years, stop trying to predict the outcome. connell: when the debt crisis and hedge funds blew up in august of '07. gary, how do you look at things because there is, to mark's point about pullbacks and about 30, 40%, any kind of a pullback seems due here at some stage, right? we haven't had one some time, no?

>> 30, to 40% is not a pullback. that is big bear market. connell: that is a crash. are we due for some sort of a pullback at some point? >> let me say this, we have had, the markets had its way because of ridiculously over the top easy money that is around the globe. i worry about boom bust cycles based on central bank interference which has been going on since '98. we have not had garden-varietity bear markets. we have big bear markets. when $20 trillion printed and rates are still low and they're still printing, especially complacency is at highest ever tiles 10 at this juncture, leading to passive investing one-sided trade where everybody feels comfy all the time. all of sudden boom. i can tell you this second, markets act fine. i'm beta type guy. i like high growth stocks. they're acting great for me.

as long as they're acting in good stead i'm ha epguy. connell: for example, gary, north korea is not the catalyst for that type of thing. do you worry about some sort of world event? is that when you're talking about? >> in north korea does shoot up something that will be a catalyst for something in the short to intermediate term. bear markets happen because a, valuations get stretched beyond imagination. connell: are they close to that now? >> potentially, not even close to '99. we're up there in the trees. also because of recessions or interests rates are starting to back up. god bless central banks, they have been able to control interest rates for a good eight years. they still print to keep them down. as long as they have control, we're in good stead. if interest rates are out of whack upside, markets take a hit. connell: god bless the central banks he says. mark, gary, good to talk to you both. netflix has been done. the stock price is down. we're talking about disney earlier. one of the things disney did

announce a competing service, a streaming service. disney is down as well. it had a revenue miss last night. the dow wouldn't be down nearly as much as it is, down 20 instead of 50 points if it wasn't for disney. with all of that let's bring nicole petallides from the new york stock exchange, take a little closer look at that. nicole? >> connell after the bell everybody was waiting for disney earnings. they beat the street on earnings, missed on revenue but they needed some piece of growth, a big idea out of disney in order to see the stock, move ultimately going forward. bob iger did not fail to deliver on this one. talking about cutting out netflix having their own streaming service. what happened netflix stock dropped on the news, down 1 1/2%. disney is down 2.3%. they cut ties with netflix. they want their own premier streaming service around frozen

and "toy story" iv is direct to consumer this that is the big plan. that will begin in 2019 pulling content from netflix, delivering direct to you. another thing you're noticing espn streaming sports service. that brings us to the idea you will have more than 10,000 live sporting event that will become available. bob iger actually saying, calling it a netflix of sport via single espn app. this is available from streaming service to baseball, hockey. seasocker around tennis. we know that cord cutting is on the rise. worst quarter ever earlier this year where 762,000 people dumped out. we know big media honchos need to come up with some new ideas and move forward because they're losing ad revenue and have subscribers dropping off. so we've seen jeff bewkes doing this, les moonves and bob iger giving us a glitches of future.

connell: hbo went a la carte with its app. that was a big deal. espn to do the same, very big deal. nicole thanks. big deal politically comments from mitch mcconnell, the senate majority leader. really riled up a number of republicans, particularly supporters, loyal supporters of president what he had to say. we'll talk about excessive expectations coming up next. ♪ i had frequent heartburn, but my doctor recommended...

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>> our new president has of course not been in this line of work before and i think had excessive expectations about how quickly things happen in the democratic process. connell: wow, that comment has really set off a number of conservatives, particularly supporters of president trump. we'll talk about it here next few minutes. "washington times" columnist is here, and special bush 43

assistant is here, ron christie and caitlyn huey burns, "real clear politics." madison, you're a big supporter of president, a lot of people like you say, boy, excessive expectations they're upset about this, right? >> this is absolutely ridiculous. we have to keep in mind why president trump was elected. he was elected to drain the swamp. there are real people out there every single day it because congress are not making changes they need to make quick enough. this is insulting to american people. connell: ron, your republican party is getting along quite well these days? >> good afternoon, connell. i agree 100% what madison said. in 1994 we were campaigning to take over congress with contract with america. you mine to tell me after seven years, after seven years, to make promises to the american people, that the senate majority

leader can't get his act together to bring legislation to the floor? i think that is disgrace. i say that as a proud republican. they had had their time and american voters will -- connell: caitlyn, who takes the blame for all of this. that is how we're setting up for the midterms this year. who to blame. >> this is definitely blame game, these two parties, trump representing his own faction and republican party represented by majority leader were headed for this collision course. the president campaigned shaking up washington, doing things quickly. he would often say easily. someone like mitch mcconnell, who is institutionalist, creature of the senate. connell: republicans are ready to turn their back on the president? >> you're seeing more active defiance on republican lawmakers of this president. you're also seeing a tension. there were always, this arranged marriage was based on the agenda. now that the adenda is in flux, you're seeing the blame game going on. connell: there is consequence, madison. they do that. part of you says the president's

approval ratings are quite low, somewhere in the 30s. guess what, congress is a lot lower than that. maybe congressional republicans have more to lose here or more at risk from this president because they're up for re-election many are next year. >> i'll tell you right now the minute congressional republicans turn their backs on president is the minute american people will even turn their backs on congressional republicans. connell: where do they go, primaried then? >> i believe they will if they don't get their act together and get their act together very quickly. we had seven years to come up with something to either repeal obamacare or to repeal and replace obamacare. they have absolutely nothing. we're a blank slate as we were seven years ago. >> i spend a lot of time talking to republican lawmakers and strategists. you hear over and over again after health care bill failure you heard concern and anxiety from republicans president is not doing enough to help make negotiations happen. someone campaigned the deal-maker wasn't able to close that deal. connell: right. >> so there is frustration he

didn't go out there to use the bully pulpit to the extent that he can. he hasn't figured out away to incentivize lawmakers. connell: you must hear that too, ron. you said or seemed to side with the president over the majority leader in our initial comments. you must hear from people on capitol hill. what is happening here? >> i hear that from caitlyn. there are moderate members didn't come out and say, here are my principles for reform, give me piece of legislation, this has to have following components. first six months in office was very difficult for president bush. connell: 43. >> yes, bush 43. how do you work with the congress. with new experienced white house chief of staff, better streamlined operation and president and this white house will deliver. they have to because these republicans are running scared. connell: how does the math work on delivering? does anybody weigh in on that. there is debate whether we get 60 votes in the senate for one

party supports, getting to 50, especially type of rhetoric between majority leader and president how do you get there? >> couple different reasons this is happening. onlily two really vulnerable republicans up for re-election next year. connell: i know. >> there isn't that pressure. i talked to republicans say we're not putting enough pressure on democrat in these tough races next year. you see no democrats cross over the aisle for major pieces of legislation, which is really telling. they're saying they have no political incentive to work with this president. which means there is little margin of error. connell: you're right. that is interesting. we'll talk a little bit more about that later. if you look at numbers it is not a foregone conclusion republicans suddenly lose the senate or even the house if they're politically unpopular. it is about math. what about from the president's point of view, madison? how does he handle this. he has other things to deal with like north korea. how do you deal with congressional republicans that

you have and this much larger distraction on the table? >> president trump has many serious issues to deal with. what is disappointing for the white house these congressman feel need to be incentivized to do what they want. people are hurting. this needs reform on both sides of the aisle. this isn't just for republicans or democrats especially place like midwest, for them to say president hasn't done enough to push that. they should be doing this regardless. connell: white house pushes back more seems more worked up about their own colleagues at least democrats at least last week or some do you find that strange? >> i understand their frustration completely. there should be frustration from both sides coming across from people across the country hurt by disasterous obamacare. connell: what but, ron, infighting can't be healthy 100% for the party? >> it is terrible and destructive. a lot of members of congress i've been speaking with last couple weeks we need our collective acts together. if we're sitting in circular fighting squad why should

american people give us trust and opportunity to lead? one other thing i would add. connell: what is the answer to that, by the way? >> answer to that donald trump is our president. he is a republican. republicans need to find a way to deliver on promises they made to work with the president and put legislation on his desk and find a way to get those things signed. connell: that is a key point. donald trump is our president. ron speaking as republican, worked for many republicans in the past. i wonder if that is part of it. i don't want to speak to mitch mcconnell, you find many republicans don't see this president as traditional republican or one of them, right? >> we know a few members of congress supported this president actively and came around to the end. connell: because he would win or be nominated. >> exactly. they had agenda binding them together. i had republicans conversations inside and outside washington, you see a contrast state party chairs who have very supportive of this president and think he is helping them cultivate candidates. i think when you look at races

in 2018 there will be a difference between how incumbents run, incumbent republicans and challengers to democrats run. talk to some challengers running side by side with donald trump thinking that will be kind of using that pox on both your houses. change up washington. that dynamic will interesting. connell: you think they keep the house and control by the way? >> it is up hill battle for democrat to take the house given how the lines are drawn. just because you're a republican who doesn't like trump does not necessarily mean you're going to -- connell: we'll talk about later. what do you think, madison, keep the house? >> i think they keep the house. that will be result changes in the state level. where from ohio, we have a new state chair. she is decent amazing job working with the president. connell: west virginia governor changing parties. things like that. ron final word keeping house and senate. are you confident in republicans? >> very confident. i think we keep the house hand dilly and pick up five seat in the senate. connell: that is interesting. shows you conventional wisdom is

not always right when you run the math. we'll talk about later. appreciate it, guys. >> thank you. connell: new details on the whole russia investigation. if you saw the store breaking earlier, paul manafort former campaign chairman for the trump campaign. his home was raided. the news broke earlier today. the news on that raid by the fbi. we'll have that. mrs. on other side of it new details on the loretta lynch story calling for new calls of an investigation there. our investigation portion of the show. it's up next. ♪ what's possible. rethink the experience. rethink your allergy pills. flonase sensimist allergy relief uses unique mistpro technology and helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. rethink your allergy relief. flonase sensimist. ♪

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♪ connell: the word has come in that the fbi conducted a raid of former trump campaign manager paul manafort's home last month. this in chemicals to the russian investigation. this is robert mueller's investigation seems to be escalating right now. president trump's legal team saying they're confident all leads to nothing. we heard that over and over again. from "washington examiner,"

chief political correspondent byron york. the manafort raid is the latest piece of information. what does it tell you? mueller must have thought he wasn't telling them everything he knew, right? >> certainly a signal from mueller to manafort. i'm told this was in the early morning hours of july 26th in the dark. there were at least a dozen fbi agents. they were armed. we have fbi windbreakers. we've seen that kind of video in criminal investigations. it is clearly we're getting tough sort of message. now as far as we know, this, they were looking for material from bank records and other issues that might have nothing to do with the 2016 election. we've always known that manafort was likely to be under investigation for business dealings perhaps with ukraine, from quite a while ago. so this might be really unrelated to the 2016 election, even though it is the mueller office doing it. connell: what is the -- so the

special counsel has, we've heard about the potential for latitude when it comes to the president where the phrase has been follow the money, somehow this investigation is already or has taken that cores whether looking at president trump's financial records. i guess when it comes to mike flynn or paul manafort, it could go in that direction as well, right? if something comes up during the course of the investigation say manafort they could follow it? >> well, they can. the charge given to manafort, excuse me to mueller, when he was appointed he could look into issues arising from this collusion investigation. a lot of people interpreted that at the time to mean so-called process crimes. if he discovers somebody has lied to the fbi or to a grand jury, cocertainly prosecute that sort of thing. last sunday on "fox news sunday," rod rosenstein, deputy attorney general said if mueller were going to expand his

investigation in any significant way, he, mueller, would have to come to the justice department and ask permission to do that. he may have done that. we don't know. connell: right. >> we're told he would have to ask permission for that. connell: big picture on russia side. i want to move on to talk about the loretta lynch story in a moment but big picture from the russia story from what you can pick up where are we on the question is there any there there? where are we right now? >> if you're talking about collusion there is not a whole lot there. we had this june 9th, 2016, meeting with donald trump, jr. and manafort and others. is that evidence of russian collusion? obviously the president's critics say it is, but a lot of people looking at this legally think, gee, there is nothing there you could actually charge anybody for. so as far as taking some sort of action against the president or his campaign, for events related to the 2016 campaign, not something on the side, we're, we

don't really know very much right now. connell: we do know it hangs around. all the investigations seem to. speaking of the loretta lynch investigation, was a new call, came on "your world" for a special prosecutor to report on the special meeting between loretta lynch and the bill clinton on the tarmac. jim jordan will talk about it. he is among the republicans leading the charge. >> meeting took place with former president clinton day before the benghazi committee report was due to come out. two days before secretary clinton is to be interviewed by fbi. this was supposed to be coincidence and all they talked about was golf and grandkids? no one buys that. that to me is a concern, calls for special counsel to look into this, and a host of other issues surrounding mr. comey and miss lynch. connell: much as talk about the special counsel hanging over the president, could be another one. neither one of these investigations is going away i

guess as republican counter, right? >> it is. but we'll have to see whether there is any interest in actually pursuing it at this time. as representative jordan said, this meeting looked fishy from the very beginning when we first heard about it. it was at a critical time not just in benghazi investigation, but in the fbi investigation because if you remember the fbi interviewed hillary clinton and then almost immediately james comey came out and delivered that long speech in which he essentially accused of her committing crimes and said he wasn't going to charge her with anything. there was some funky things going on at that time and republicans want to learn more about it but politically people are looking at this, saying look, that is over. hillary clinton lost. if she were president right now, perhaps -- connell: different story. >> perhaps republicans would pursue that, maybe not under these circumstances. connell: byron york, appreciate

it. >> thank you. connell: just a moment how a soda tax may be backfiring. we have that, of course jeff flock is on the story for us on that. democrats and we were talking a few minutes ago with that, caitlyn huey burns points out it is uphill climb if you look at numbers. which we will with more detail. these are numbers neither party should miss. coming up next on "cavuto: coast to coast." poor mouth breather.

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go long™. ♪ ♪ connell: here is interesting story for you. newly-imposed soda tax in the state of illinois sparking really mass confusion. jeff flock is all over it. he joins us with details on the soda tax. jeff? >> reporter: come to you right in the middle of the road where i like to be as a journalist, connell, in the middle of lake cook road. divides lake county over here from cook county over here. cook county has a soda tax. egg harbor cafe you can get a seat. lake county, parking lot packed with people, crossing the line to avoid a soda tax. what is a soda tax? in cook county it is, they pretty much tax everything even

without sugar in it, diet drinks, soda of any kind, sweetened tea, energy drinks, in cook count the free refills you get. not free any more. you're paying a penny an ounce for everything. even if you get it free you have to pay tax on it. water is taxed if it is flavored. what is not taxed is 100% fruit juices and vegetable juices. anything a barista makes, nothing from starbucks or anything. milk and soy milk is not taxed. water if plain is not taxed. there is no small tax. 12-pack of coke for example, costs 16.99, take a look attacks on it. cook county, sales tax of 10%. another soft drink tax of 3% on top of that, the sugary drink tax. 12-ounces in a can. 12 cans in a 12 pack. $1.44 extra. this is something gaining traction around the country. eight different community, if

you look at the map all across the country, seattle, san francisco, philadelphia, boulder, colorado, either have the tax or will by the first of the coming year. it's a source of revenue for places like cook county which as you know is desperately in need of revenue. connell: of course. >> all you have to do avoid it, cross the street. connell: cross the street. be careful. don't want to hold you in the middle of the road too long. weird flavored water but not starbucks stuff. zooms odd the way they come up, how they distinguish them. >> reporter: they have been sued because it is so complicated, a lot of folks, mcdonald's was sued. walgreen's was sued, because it is too confusing. retailers are upset. people that buy it are upset. connell: be careful jeff, jeff flock. get back to story on congress we started to talk about earlier. of course democrats looking to stage a big comeback an take back the house and senate in the mid midterms but a report from the "cook political report," the

democrat even if they won every race in places that hillary clinton won last time around or donald trump won by 3% or less, the gop could still keep the house and maybe even, according to this report, gain five senate seats. pollster lee carter is here. we started it earlier. the point was, not a foregone conclusion even if things look bad for the republicans they necessarily lose the house. what do you make of this analysis? >> right now it is hard to say what will happen. most optimistic materials republicans could gain seats. historically that's not what happens. historically at midterm the party the president is running loses about 28 seats. connell: no matter what the situation. >> no matter what. with approval rating less than 50%, could be up to 43 seats. connell: does it matter the composition? democrats have to defend 25 of 48 seats. republicans only defend eight of 52? >> it certainly does matter.

odds are against democrats certainly. if you look what is happening right now, it is not just a foregone conclusion if you voted for donald trump you will vote for your local candidates. most people that voted for donald trump are not typical voters. we're not looking at establishment candidates. when they voted for donald trump said i want to drain the swamp and a lot of candidates are swamp candidates. when you look at approval ratings, with the president on the decline, you have to look at approval rating of congress. connell: congress overall is awful. >> will we try to reelect who people don't feel doing the job of the american people? if the democrats come up with a good story, a good message, if they put out policy will repair health care and tax reform done, then the republicans should really be concerned because all bets are off because right now -- connell: donald trump supporters who we learned not just angry at democrats but angry at likes of mitch mcconnell who represents the establishment wing of the party. they're really angry about

comments he made and not getting anything done in health care, right? >> they are really, really disappointed. i host a radio show with my brother. we talk this with all people across america. trump supporters will support trump no matter what, they are as frustrated can be with congress not getting things done. they blame congress for not getting health care. they blame congress for no tax reform. connell: if you're in alliance with mcconnell or paul ryan, are you risk primaried or defeated by a democrat in those types of races because you don't have the enthusiasm? >> if you don't have enthusiasm definitely could. democrats are really, at this point super frustrated, ready to get out there. if they have a reason to go to polls they will go. republicans better get something done. connell: they need a message which is another story. >> another story. connell: you know you can't assume you're going to win. >> you can't. connell: other people are down. thank you, lee. good to see you. >> thank you. connell: lee carter. we have new fallout from some of

the president's comments. everybody is talking about fire and fury. we add that to the secretary of state's comments today. we have reaction coming in from the secretary of defense. all of that is straight ahead. plus is president trump really in trouble with his base? there is sort of talking about this. we'll break down more numbers and where he really stands. coming up hour number two of "cavuto: coast to coast." ♪ today, we're out here with some big news about type 2 diabetes. you have type 2 diabetes, right? yes. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does.

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connell: more breaking news appeared our number two of "cavuto: coast-to-coast." good to be with you. i'm connell mcshane and four neil cavuto this week. the defense secretary james mattis is now just released a statement and part of that statement says north korea's actions will continue to be grossly overmatched by hours. they lose in the arms race or conflict that is initiated yet that is james mattis, defense or carry in a statement moments ago appeared president trump warning our nuclear arsenal is stronger and more powerful than ever before. that came from one of his morning treats as north korea is promising an attacker tensions escalating further than they are to have appeared to start this hour, house foreign affairs of any member republican congressmen ted yoho joins us.

thank you for coming on. this whole idea we would win if it comes to bat, which is essentially what secretary mattis is saying. what do you make of that? there's no real dispute they would win a military conflict if it ever came to that. that is not what the yes earth are disputing there, whether it's a good idea in any circumstance because of the risk. you say what? >> number one, appreciate you having me on. we are not going to go down that path. i don't want to see its rhetoric. it is strong language and like the previous previous administration where there are red lines drawn, this president and administration has shown they are willing to back a tear to monsters going to be not out in front. we are going to respond to what north korea challenges us to do. our goal is to have a diplomatic and a peaceful negotiation to get this under control.

>> that's what the secretary of state rex tillerson was saying today. on rhetoric and whether or not a red line was drawn, what about this president trying on with the fire fury comments. you didn't think so? he might this president make threats. he will follow through on actions. the goal for north korea will determine what those actions are. that's why chair the subcommittee on foreign affairs in way we work closely with the state department, secretary tillerson and ratchet up the sanctions on the world community, particularly china with primary and the secondary and tertiary businesses to banking systems to put the pressure on north korea. north korea. china has an account for 90% of the trade north korea does. they are the ones that have the biggest influence on china. again, we are not trying to attack anybody. our goal is to have a peaceful negotiation that we can bring this conflict under control.

when you have somebody like kim jong un have repeatedly makes threats attacking are in mainland or guam i must get to the negotiating table. tree into n.a.b. keeps doing it can not only making threats from other testing missiles and doing what he's done, what history has shown kim jong un will do, to your point has to be backed. it's not what the president said and does not include the possibility of a preemptive military strike if he really means what he says? >> as the president has said since day one, all options are on the table. if you keep walking by a rattlesnake and it's curled up in rattling his rattler comment and point something has to be done. our goal is to get him, kim jong un in the north korean regime to come to the table with china, with the other nations to put the pressure and come to senses. again coming nuclear war is not going to help anybody and we

don't want the threats of going after guam or territory. what they need to understand in the administration and secretary tillerson has been clear on that to protect our sovereignty, allies and troops in south korea and we will not tolerate the continued threat because at some point he is going across the line. he'd been kim jong un double determine actions of the united states or the rest of the world community. tree into that if i have trouble with all options on the table explanation that they really are. the threat has been made to bomb the north koreans about the u.s. territory. a far greater danger here is if there is some sort of a military conflict however it arts, there is a huge threat to our allies and the huge melcher politan area around seoul south korea, 25 million. the huge metropolitan area around tokyo, japan, and all something like 38 million. so are we willing to risk the amount of casualties that would

almost undoubtedly be sustained if military conflict ensued and if not, are all options really on the table? >> again, all options are on the table and that is to get north korea to come to the table. if you look at what was done with the sanctions, the reason you see north korea been so belligerent is because they know the sanctions are for real this time. when china came out, when the u.n. voted unanimously, it not just america. as the rest of the world thing you have to stop this. you are seeing kim jong un at angry and hopefully he will understand that the world is not playing with them, that they will come to respond to this rhetoric. i don't want to say rhetoric, his actions are going to determine the response from the world. connell: there were some -- that is ok, congressman. we thank you for your time and for coming on. >> appreciated. you have a great day.

connell: japan and south korea talking about those two allies of ours pushing for the deployment of powerful weapons. you start thinking about to make a regional arms race among other things foreign military assistance donald rumsfeld joins us now, steve bucci. this idea from our allies, are in talks about the threat to american cities and obviously we want to deal with to the extent we can north korea before that american city is really at risk if it isn't already. what about our allies like south korea and japan? are we willing to risk the amount of casualties that might be endured if there's a military conflict over there? >> well, are we willing to endure the number of casualties that could occur of our own citizens if we don't do anything. those calculations about our allies are very, very close friends in south korea and

japan. we care about them. their governments are part of this process and will remain so, which is why missile defense to such a key not just for american territories, but clearly or guam, hawaii, but south korea and japan as well. connell: we had a guest last hour, colonel hunt promising about the missile defense system that the thing a lot of people forget is it doesn't work all the time, that are missile defense needs to be stronger than it does. at the end of the day looking at the number is 50/50 if a missile or shot, we actually shoot it down. is that true and if so are we doing enough to strengthen the capability? >> at the little better than 50/50. it is about 60-40 and most of the past. we test the stuff that doesn't work yet. we don't test the things that do work. we do need to improve it. we need to have more capability out there because the more

systems redeployed in hawaii, in korea, on belasco for the ones we shoot down the missiles in outer space, the more of those we have, the higher percentage chance we have of stopping a very low number of missiles that a country like north korea could fire at us or our allies. so we need to bump up that missile defense incredibly so. in the first place in hawaii by deploying to shore with its associated radars come in the system we are to have in south korea and in romania. those things were tested in hawaii, but we don't have any deployed there. we need to do that because if we can discourage kim jong un from the fact that anything he fires is not going to have any effect anyway, that's another part of deterrence in addition to the

offensive part of deterrence with the congressman. >> i get that. it certainly isn't for cities here, the united states. if that capability goes from where it is now 60-40 comic 8020, 9010, it only takes one whether nuclear or as a chemical component to it or whatever it is, not very far from where they are launching these missiles and in some cases we don't know where they would be launched from to get fair to say sold south korea. that is the real threat affecting escalates. that's why it's so serious. >> absolutely it's an enormous threat because they can hassle with conventional artillery. so there is an enormous part of this. this is not just the u.s. and north korea. this involves a community of nations. we saw that what the sanctions going through were even china supported them. i want to say something about the president's rhetoric.

a lot of experts have pointed out that if you don't speak out forcefully in the chinese and korean cultures, they may not take you seriously. so some of the president very, very strong words are not just the president. they are certainly that. specifically -- connell: opaque number porting "the new york times" that is the improvised and as a surprise to use those words yesterday. you think he did this on purpose and what do you think the effect will be a being that path and talking that way? >> my hope is china in particular would understand the amount of fervent two-seat hack for clearly north korea and will back down under pressure from the international community, from china and from our ability to protect ourselves and to take

all of those components are part of it. it is going to be an arrangement. there is no good answer and now we have to get fair. connell: just about every expert agrees on the no good options once you get past a certain point. steve bucci, thank you, sir. appreciate you coming on. another breaking story of the day-to-day breaking story today today come the suspected driver rammed into a vehicle and a group of soldiers in the suburbs of paris this morning. the suspect injured six of the soldiers and then sped off. there has been an arrest made in the suburbs of paris than that dori, one that came in this morning. more details as we get on that. in the meantime, when bashar al-assad tested president trump with a chemical weapons, the president responded number right? he did so with force. what does that mean for the current situation with kim jong

un? that is up next.

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connell: more breaking news. president trump soccer fired. that we've been of course talking about. they certainly seem to be helping one group of stocks in our view be some of the defense related stocks. a number on the screen right now with the all-time highs. all up on a down day overall. president trump been tested six months into his president day. his response to serious and its use of chemical weapons early on in his president he did send a strong message. one right after syria. while this trump talk with north korea be somewhat similar. residential historian and author of famous foreign doug wead is with us from d.c. although these historical comparisons to talk about but maybe what he said in the past

and what other presidents, harry truman is that in the past. what about what is done, the actions and south korea, what does that mean for north korea? >> the tough talk is going to be helpful, not dangerous. machiavelli once wrote that it is sometimes in the interest under feigned madness and the advisors to kim jong un are saying donald trump is powerful and dangerous. obama drew that line in the sand and didn't do anything about it. responded immediately and powerfully and you remember it was jfk's weakness that promote nikita khrushchev and prompted the whole cuban missile crises. they respond to strength, not to weakness. connell: you would think that kim jong un would realize that in ratcheting down. in fact, he's done the opposite

making thread after thread and have them back down yet. do you think he will now? >> he's had three presidents who made him get away with this. barack obama, and they literally did nothing, so it's very tempting for him to believe that donald trump is going to act the same way. this is very dangerous because in the past in 1958 and 1952 when we were on the brink of nuclear war, it was mutual assured destruction. neither side was willing to sacrifice their people. in this case, we are dealing with the man has already allowed millions of people to starve to death and we may not have that mutual assurance. connell: where do you think we are now in terms of historical precedence because he brought up the cuban missile crisis.

you are not the only one to do so. congressman darrell i said made that comparison yesterday. sebastian gorka works in the white house. he made that comparison today. is this current situation analogous and if it's not yet, do you want to even be making those comparisons at this point for the white house? >> it is far more dangerous in my humble opinion. in 1958, it was already a hot work. they had open war and eisenhower said we will use nuclear weapons to protect taiwan in the cuban missile crisis was very real. the soviet missiles were on vote approaching cuba and the u.s. navy had to blockade. this is very real. the difference today has become so much more refined and greater in the biggest difference is the people wielding these weapons. some are suicidal.

north korea is bankrupt and they can sell weaponry to people who are willing to die. connell: things move so, so fast today. to that point, the power of the presidency before i let you go. a number of suggestions, john hannah made this suggestion, but even before this north korea situation had come up and talked about with regard to health care, the piece in the journal sometime back that the president should turn to a noble office address and maybe now is the time to do it with this crisis with north korea and explain to the american people his thinking and a slower way that you can't do it in a quick full report or retreat or everything else. it is now the time for an oval office address or presidential address? >> now is the time. these are our survival and it's time for time warner and disney and abc and viacom, all these companies make their money if

they are engulfed in a horrible conflict. it is time to unite the elections. >> i guess that would be the downside. you want to keep the rhetoric at a minimum to elevate it to be even more scared or get ahead of themselves. >> it is taught in marxism. they only respond to brute force. the liberals were apoplectic when ronald reagan called the soviet union the evil empire. they said no, no, you'll provoke them. he openly said mr. gorbachev, tear down this wall. that is what communists respond to. they are provoked by weakness. they respect strength. tree into banks are coming on today. more developments mean time. that is on the russian investigation in the raid of the

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connell: details coming in about the fbi raided the former trump campaign chairman paul manafort. a raid of his home. blake irving joins us now good but can you tell us about it? >> it appears fbi investigators we've been following for a while very much have their eyes trained on paul manafort, that of course being the former campaign chairman for the middle portion of president trump's campaign. a spokesperson for mr. manafort number may give fox a little while ago indeed one of his residences was the subject of a raid at some point. we believe in just the last couple weeks. fbi agents with consistently

cooperating with law enforcement and others. inquiries ended so on this occasion as well. as for the serious inquiries, it was just a couple weeks ago manafort was in washington on capitol hill speaking with members testifying before them, answering questions before members of the senate intelligence committee and has been in the headlines recently for the infamous june 26 team meeting he attended in trump tower with jared kushner and donald trump junior and the russian attorney talia makes gaia. it is probably likely that meeting was potentially part of what investigators are looking for when they showed up to his home not too long ago. connell: blake, thanks obviously we'll keep following that as they followed us to read story as well. new details on not calling for her -- david asman pushing for answers on that. let's listen.

>> i don't know that it be legal for the aliens to us. as long as you're actually on the server. so long as you are not hiding information that should be available to the public with that alias. we know that is part of it. drink and interviews on "after the bell" today. you talk about it right now as luck would have it is the great david asman, the host of that show. >> one phone call. from the washington, liz harrison is also here and so is mr. gasparino. >> i was told he wasn't going to be here. >> i don't share the stage with you. >> you don't share the stage with anybody. at any rate, tell us about this whole idea. the alias story yesterday. >> it is not illegal. but it's interesting to people who are doing it in the obama administration included elizabeth carlyle, otherwise

known as loretta lynch, by the way, when she used that alias, she always find it elizabeth carlyle ag, so every new tablets are alias emma but sheesh saved up for sensitive subjects and lois lerner, the irs official who got in trouble for targeting the tea party had an alias as well. it was kind of common is during the obama administration to use these things. the problem of course mj said, we should mention by the way, jordan sekulow is the son who is a white house attorney. it is not his note they are completely independent. trump attorney, forgive me. they received over 400 pages worth of material considering this tarmac does it. most of that was blacked out, by the way. interestingly it wasn't blacked out by the obama justice department. it was blacked out by the trump justice department. even though some of these guys like jay works for president trump.

why is trump justice department blocking out material that could give us idea what going on. >> all this has been blacked out. your thoughts on this story? >> absolutely. the american people need to know what happened and especially the talking points with all these documents we know the justice department under the rather lynch were very concerned about this meeting going public. apparently all the e-mails going back and forth, the best they could come up with was her and president clinton were talking about grandchildren for the first 45 minutes. i think the trump administration and jeff sessions at the justice department need to look into this to say his decision whether to redact all of these materials. also keep in mind these are documents that the fbi said it named after him now because judicial watch in the justice department would get all these documents. there is a lot going on and we

need answers. connell: what stands out to you, charlie? >> getting back to manafort, i want to make one example. i covered one of the more celebrated cases in the scandal was how one guy got his sauces range in a hedge fund, got his office raided by the just this department and the fbi and they didn't find anything. he lost his business because new broke that the office would raided. everyone thought he was involved and nothing happened to the guy. the guy is suing the justice department. just to put it out there. because you that your office raided doesn't mean anything. back to the story which seems that the tempest in a teapot, the whole thing about what's on the target. the speaker would happen. i am sure bill clinton landed on pretty heavy to loretta lynch not to bring charges. russia's go back to what happened. james coleman gives a press conference. and the press conference he does not charge hillary clinton, but

he said how horrible she is and how reckless she wasn't really hurt her. guess what happens after that. he reopened the case. net positive for donald trump again. then he closes it two days later, but it's two days before the election it didn't matter. that's be real clear here. if we look for a conspiracy, what would be the result? >> let me answer that. it was enough of a tempest to get jim called me to come out in the public about the charges. he says that. that's the reason he came out with a tarmac meeting. to lay out the case against hillary and he wasn't going to church are to church her. then they get to the main point, which is overlooked here. i'm not exonerated the obama administration. president obama has real questions about the clintons. he knew how they operated. he knew they did a lot of snaky staff. when president bill clinton was president, but also when hillary

clinton was running for president. i suspect he was very concerned that the clintons were trying in some way to subvert the justice department through the rather lynch, through this meeting and president obama himself was concerned about it. it was not only not a tempest in a teapot because of that force coming to come out and express the charges against hillary, but it also us can entered to be tempest by president obama. he make it didn't work. there is no end result here. fumbling bumbling james coming comes out, rose hillary clinton, then a week later reopened the case and roast her again and then closes it a day before the election. it had no impact. >> it cost him his job eventually. >> you are just denying that. >> no, no, the russian

investigation cost him his job. quote trump. >> it had an impact that was positive to trump. james comey, no matter which way you put it, we don't know, but guess what, he ignored them and they couldn't do anything. >> one other part did come out with all these e-mails, which is the relationship that the media had with the obama administration, particularly with the justice department or the "washington post" is was cozying up in thing that editors are interested in the hoping i can put it to rest. i've been pressed into service to write about the question being raised. >> you haven't been a reporter in so long. >> how did that happen? connell: you haven't been a reporter that long.

>> what we do, we call them up and we are like please, please give me a story. >> i've never up to an official like this. >> neither have i. we do things. >> let's move on. >> doesn't even matter. whatever it is coming just get get away from this. connell: come on, gasparino. >> it's the opposite. let's talk about tax reform. that will calm everyone down. charlie was here yesterday. we were talking a little bit about this and here's part of what he said. here it is. >> was revenue neutral, you are open to the fact economic growth pay for those taxes. historically the tax cut the reagan tax cut were not currently revenue neutral about where the economy and more money came in.

>> in the answer -- that was the only part of the interview they didn't talk about. let's go to live sitting there waiting to weigh in. tax cuts, the whole debate the economic growth will pay for the whole thing or make it revenue neutral and how that affects it getting it done. >> the corporate tax rate is much too high, one of the highest in the world and it will spur economic growth i think we will pay for it. the problem is republicans can get their act together like they couldn't get it on health care in the senate. they can work with the house on this and get the corporately lower. the middle income rates lower. i think they have a good shot at getting it done. >> charlie did report yesterday at books like mcconnell might be softening on this.

>> mcconnell is softening on everything. he blamed donald trump for forcing the senate to do their job. the senate really has to get its act together more than they ever have before. i think what art laffer another people talking to trump about facing what is going to happen. there's not going to be a tax reform package. there are some specific tax cuts where they get a couple of democrats like joe manchin to join them. they can have some republicans go away from it like mccain, but democrats like manchin come on. connell: they need something that will be a win. what you think? >> i think so. it will be the corporate tax cut. if you celebrate, you can say this will be so good for jobs. by the way, like the third-highest. two other countries. >> one problem with this is if

you focus on corporate once again for politically speaking, it gives democrats a talking point of 2018. once again if the big corporations -- connell: you've got to sell at how this creates jobs. there's a lot of democrats. there were some democrats did with the corporate tax rates too high. manchin is one of them. if you celebrate is the job creating vehicle, they can do it. if trump gets into the filling mode, he's been slow to pick that up. >> is the one that in health care. connell: let me apologize to live or have been here all this. nothing to say here? >> i up to my sources all the time. >> even charlie with backup. >> we have something negative. gasparino: i up to my sources. a shame about netflix.

disney down. that's the reason the dow is down as much. disney is taking a lot out of the dow. we will talk more about netflix and disney and this whole cord cutting debate and all of that as we continue here. thanks a lot, charlie, appreciated. does that mean we will have these disney challenges netflix on the streaming? more coming up in just a moment. poor mouth breather. allergies? stuffy nose? can't sleep? take that. a breathe right nasal strip instantly opens your nose up to 38% more than allergy medicine alone. shut your mouth and say goodnight, mouthbreathers. breathe right.

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connell: the netflix that price indeed has been dropping today. disney announced a competing german service raising the question of what it means for viewers. will you be forced to shell out for a number of different irises? the revenue last night. market pro. market prescott mart nesbitt says. kevin mccarthy is here as well. martin, and i want you to behave yourself. i don't know if you saw gasparino here, the kevin, we'll start with you. you are having trouble hearing,

so we will be gladly. i think it is an issue that at some point we want to get our cable bills done by cutting the cord. the next thing you know you pay for netflix, amazon, disney, who, paying for all of these services. you don't know which one to get. >> yeah, good afternoon. thank you for having me on your show today. it is interesting we are already paying for multiple services as you just mentioned. don't have netflix, who will, each bl go. i don't watch platforms for movies. the original content in the snow they have like strangers things and oranges the new new black in this no-show ozarks. for me, pulling films for netflix doesn't necessarily alarm me. i think if anybody is a fan of films like "star wars" and the marvel films and pixar movies, they will be going to watch them when they initially come out. the fact that the movie comes to netflix month later, i don't

know if that will affect it too much. it's a smart move on disney's part from a disney standpoint, obviously to deliver directly to their customers. >> speaking of content from a disney has plenty of the showing on the screen right now. go through the list of everything under the disney umbrella. they are choosing to do it on their own. if you are netflix or amazon, they haven't been able to scale it up to "star wars" level. they've done it. they've created their own content. would you make of this move? >> the argument the last two years about netflix and amazon was the creation of their own content, the right move. one of the reasons the stock is down is maybe disney is a little weak in his party. i'm surprised it didn't take as long to make this decision. think about it. look at the numbers from the theme parks in the plans they have with the exhibit and things coming out of the theme parks, whether disneyland shanghai or disneyland here. they've got a lot of plans in

the future that are drawing in the kids. i know my little rug rat, my little angels, those guys let the disney stuff. they've got all these kids have done pixar stuff is a great read and disney should go out on their own. connell: parents had to pay an arm and a leg, but also for something like this, kevin, it does bring up the point that going in alone, time will tell. it's an interesting move because a year or two ago you would have seemed they would have come up war with the netflix and strike more partnerships rather than become rivals. >> right. i was reading an article about this particular movement they are doing. disney obviously have is a film in marvel under their umbrella, disney is one who distributes those particular studios and they are not sure yet if those particular brands like marvel and "star wars" elements will also be pulled. i would imagine so considering disney obviously is this company is.

it is going to be interesting to see this. again, i don't think people are necessarily watching netflix for these films. they are watching him for the original series, content. connell: we've got a go, guys. we didn't even mention sports as is also a part of it. thanks, guys. appreciate it. scott, kevin. the google story we talked about yesterday is also still out there. a fair amount of media hysteria over that. the employee was fired. the question, is that reaction somewhat overblown? that is next. you always pay your insurance on time.

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on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. connell: back to the google server talk so much about on the show yesterday. they're members of the media now accused of being strongly against this employee fired for criticizing the company's diversity initiative and some cases being unfair by cnn anchors as a matter of fact getting heat for it looks like overstating the position. watch this. >> you think he was allowed to stay that are essentially saying i don't like women anywhere near a computer and should have been fired for it? >> this software engineer had hiring power. he impacted the empowerment of women.

i go back to paraphrasing. this is essentially saying i don't like when they're on computers. >> brooke, i often disagree with you in a very jovial way and i just totally disagree with the characterization that is what he is saying. >> let's bring in jonah goldberg and for national review, senior editor. you've got a lot of opinions on this story. we talked about it yesterday you don't have to agree with what his phantom menace about whether men are more biologically qualified by predisposed to be the technology industry. i don't think he was saying women shouldn't be at their computer. when you make of this whole hubbub over the thing? >> first of all, i'm not the biggest fan when president trump scrims fake news that every story he doesn't like. this is a great example of why a lot of people think there's a lot of fake news out there. this memo was out there for the public to look at. he didn't say anything remotely like what the cnn anchor had to say. all he was saying as a

statistical aggregate level, disparities between what women he therefore biological reasons are genetic reasons are simply because of cultural interest they go into certain fields. if you have 18%, 20% of computer science degree holders are graduates are women. the idea somehow you will get 50% parity at google is kind of a heavy kind of a heavy lift in which you think about it. i don't agree with everything in the memo either. instead, you have this national panic about this thing. i think it's a real problem for google. here you have this guy who says google is an ideological ego chamber in a culture where you're not allowed to dissent against certain politically correct things and he gets fired for it. that is a brand problem. connell: which i was the first a little surprised. judge napolitano is on with his

yesterday and whether it's a hostile work environment. the bar so low you could make that argument. looks like google did have the right to fire it. i was there probably guess. >> i don't dispute their right to fire him. i work in a magazine called national review. they say sending the right and then they shouldn't be writing or whatever. use the power kind of judiciously. google wants to brag about its open tolerant culture where it's a company for americans. you can't employ 73,000 americans and not scoop up some people who disagreed with the reigning ethos of silicon valley and if they raise their head slightly, to slap them down and fire them is a very bad look for google. connell: you brought up a good point. the reasoning may be up for you may disagree with the rationale, but they are far more men in

these positions than women. whether google wants us to be or not, we should have a discussion. >> particularly in the context we are constantly being lectured to about how conservatives don't believe in science almost invariably means this is actual raw science that there are these disparities, that there are differences between men and women. some of it is genetic, some of it is cultural and there's arguments about the borders between the two. there's no science out there to really dispute any of that. even having a conversation about the science is triggering an offensive and bigoted shows who's really afraid of food. connell: the discussion or debate whether it's biological, but at least have that debate. i've got a run. this is a better discussion than the rest of this.

stocks are down today. we've been talking about north korea so it doesn't sound like another record high or anything. you are down 65 on the dow and a lot of that is disney rather than north korea. we'll come back back and talk about it a little bit more in just a minute. copd makes it hard to breathe. so to breathe better, i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . it contains a type of medicine that increases risk of death in people with asthma. the risk is unknown in copd.

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♪ connell: we look at markets today we are down. the dow is still down 66 points. starting to drift lower. north korea in in that, disney a

big part of it. are is less appetite for risk-taking. speaking north korea, state department holding a briefing. fox will monitor those developments. a lot going on. see you to the next hour, hi, trish. trish: thank you, connell. we'll hear from the state department any minute as secretary of defense james mattis doubles down on president trump's stern warning on north korea. stop making threats to the united states because you will lose any arms race or conflicts you initiate. i'm trish regan. welcome, everyone to "the intelligence report." president trump on the offense today, warning north korea, we are the most powerful nuclear arsenal in the world. guess what. you better think twice before you make the next move. watch him here. >> they will be met with fire, fury and frankly power, the likes of which this world has never seen before. trish: wow.