exclusive club, only man or one of six to win all four majors in his career. liz: that is exciting. >> come on. stuart: ladies and gentlemen, i will be glued. okay? connell mcshane in for neil. it is all yours. connell: how do i make this work? golf, dinosaurs. stuart: oprah. connell: and oprah to north korea. stuart. and everything else. the reports now that north korean missiles could reach guam in just 14 minutes if they so chose. guam's governor is urging calm and trying to calm fears. let's start there. >> there is concern and worry but there is no panic. this bellicose statements, this is something no different than what he has been doing since 2013. at the same time we are

concerned that it does not ramp up. connell: former navy seal rob o'neill is here with us in the studio on whether the u.s. needs to be the first to act. good to see you, rob. >> good to see you, connell. connell: is that the thing to do here? we've had this debate all week long about the individual you few of preemptive strike. where are you. >> i'm a big believer in deterrents. the problem we don't know if kim jong-un is crazy. i know he wants to stay in power, he loves to make threats but does he want to act on this? connell: is he a rational actor. >> he always wants to make threats because he wants to get back to the table to negotiate on his terms, doesn't want to look weak to his people. we've been misnegotiating with that family dynasty 25 years. the reason they like to negotiate, we always give them free stuff. we've seen that in three administrations. while they pretend to negotiate they continue to build. connell: democrats and

republicans. certainly the bush administration and the obama administration. here we are, whoever you want to blame for that, the question is, you take this tact of negotiating, what is the better way? i don't know. >> it is a crazy thing a lot comes back to party politics. we're happy to sit at table and get nothing out of it because north korea knows we'll pretty much don't do anything. secretary mattis at dod, the pentagon, he said we'll wipe you off the face of the earth. that is pretty much what it means. president trump same way. with politics coming in, party politics this, is trump's fault and his finger on button and he is is sabre-rattling. one of the options if they manuever their weapons into place to launch, we might preemptively hit them? nobody hosts it comes to a war with north korea. i certain hope that is not what it is. they're talking about hitting guam of our territories, if

you're born in guam you're a u.s. citizen. if they hit them with missiles, they will fly them over japan. one of the things, japan will shoot them down. this is a very serious thing. we need to get china involved. they're obviously an ally. they don't want them to have nukes too. north korea is doing what china always wanted to do. if north korea fires a shot they could take out some of our naval assets in the pacific. that could help china out. there is a lot of stuff going on. all comes back can we get to the table. no one wants war. are we prepared to do it? i think we are. connell: the options, the large preemptive strike would take out everything one that is thrown out there, when we had the conversation this beak people come back, boy, there is a huge risk to our allies because all it takes kim jong-un, knows he is on his way out, get one missile off and seoul, south korea, japan is in terrible jeopardy. diplomacy is option.

maybe it hasn't worked but an option. what about something else? you're a former navy seal, is there a way of team of special operators to take kim out? >> i don't think that is option that part of the world because of where pongyang is. i don't -- special operations or intelligence would be a coup, someone takes him out inside, less crazy version. connell: you worry about that, right? what comes next? >> what comes next? when we invaded iraq, once we take out saddam we'll insert democracy. connell: he could be on steroids. >> they could have a nuclear arsenal. when it comes to strike youd into he to take out air defenses and navy at first. hopefully get cyber warfare. we need to hit them fast and hard. a lot of people will die if they do that. we're designed to it fight a big army a. we simultaneously, at least same day, difficult to do but we can do it. connell: if there is military action consensus we the united

states would win but the question is, what's the cost? >> whom are we going to lose? even, north koreans, if we hit them, keep this in mind. this is pretty much up to kim jong-un. how many hundreds of thousands of people will die because they will die. it's a shame. connell: how many people in south korea. >> or how many people in obama. it will take us five minutes to identify this is missile launch, which gives you additional 13 minutes, whatever you do, shoot it down. what if you can't shoot it down. we have shot down missiles in missile defense systems with ideal situations. do it with sun not a factor. what if or missile hit to kill gets locked up by the sun can't see it. what if they don't launch one but 10? connell: what if we are way made of it. >> his father and kim il-sung before -- we think he is crazy person. what if he is a crazy enough to

do it? connell: the rhetoric by the president criticized by some, making it worse. >> we've been screwing it up 25 years. president obama did exact same thing with iran and they will have nuclear weapons. president clinton did this in the '90s. we gave them that so they would give up nuclear weapons. same with iran. this is bad now. we're not good-looking into the future. what happens if we have nuclear terrorism with iran? that is something we need to get people come to the table to lie to us. we're not being mean. we're being nice. look how quick north korea came around the week ago it was isis. now oh, crap they have nuclear weapons they will use on our forces, allies and citizens. they hit alaska, san francisco. chicago, they could be here in 40 minutes. connell: in order of preference as final question, put pressure on china? >> put pressure on china. with the u.n. security council with unanimous sanctions against north korea. connell: that was a big vote. >> huge vote. released canadian from one of

their prisons which means they're listening. we have to hopefully get them to the table. we have to be all-in. i've been to war a bunch. i don't like it. if it comes i would rather them get hit than us here. connell: good to see you, rob. >> thank you. connell: rob o'neill starting us off today. show you a "washington post" headline. worries apparently some have about president trump's control of the nuclear codes. look way they write it with fire and fury. trump revives fears about his possession of nuclear code. that is back from the campaign into the paper's present day. alabama republican congressman mo brooks head of foreign he relations commit he thee joins us. he he is running for senate against republican luther strange once held he we attorney general jeff sessions which we will certainly talk about in a moment. congressman, i thought i might start with north korea as rob and i were talking about that. what do you make of that the president's judgment is being

brought into question again? >> by way of background everybody needs to calm down about north korea. they may act crazy. they're pretty smart. that leadership evidence heed by being in power. we have mutually assure destruction doctrine. national security doctrine worked well from the mao tse-tung in china to current day. joesph stalin, russia leaders to current date. premise is real simple. you don't attack us. we don't attack you. if you attack us we'll send so many nuclear bombs on your soil all of you will be dead. that is the mutually assured destruction doctrine. the threat is so great of total destruction nobody launch as first strike. the same doctrine in my judgment works with north korea. greater risk is not north korea but it is iran where people are driven by a religion that on occasion suggest that it is okay

for them to commit national suicide if they take out israel, the little satan, america, great satan in the process of committing national suicide. that is where mutually assured doctrine may not work. we should focus more attention on iran than north korea. connell: that is rob's point. that is the next thing up. to your point it may be up already. in terms of a first strike, nobody will strike first because of fear of mutually assure destruction. what constitutes first strike in your view in this case? if north koreans fire a missile near guam is the first strike, that will be a decision made by the president. >> that is a decision made by president trump or one of his successors, depending whether that event comes to fruition. but at the time the launch is made, someone will make a decision whether it is threat to american soil. if it is a threat to american soil, then someone will have to make a decision whether to have

massive retaliatory strike quite frankly turns north korea into a sea of glass. the north korean leaders want to live. it is that incentive to live i would submit is deterrent to their actually ever launching first strike against the united states of america. they know they have no missile defense system. they know we can utterly destroy that nation. at same time though, to be on cassius side we need to improve our radar systems, our number of interceptor missiles in the guam and japan areas as well as in south korea, alaska at fort greeley, vandenberg air force base in california to be sure if we misjudge the sanity of north korean leadership, a rogue missile we can take down before it injures any americans on american soil. connell: one issue come up in your senate race. there are others. i want to talk to you about that for a few minutes. an important's for seat once held by the attorney general. president trump who we were just speaking about endorsed your

opponent in the race, luther strange. you, do you have a message for the president on that? >> yeah. i don't think that his endorsement of luther strange furthers the agenda of president trump. by way of example, just yesterday president trump was going after mitch mcconnell for do-nothing senate. if that is the case, why do you endorse a person who is going to continue what the senate has been doing, and in fact is opposite the president on 60% rule in the senate that empowers chuck schumer around democrats to block every single conservative bill, every single republican bill, every single president donald trump bill, we want to implement and push through the united states senate? connell: you want him to reconsider that endorsement? have you spoken to anybody close to the president about that? >> it is pretty much like this. if the president truly wants to drain the swamp, then don't go around endorsing the swamp's candidate. but ultimately it is president's decision.

personally i believe he gotten bad advice from whomever giving him advice what is going on in the state of alabama. we have 17 candidates at one point in time running against the senate seat against the incumbent. that would tell you this there is something wrong with that incumbent. paws and do research. in the republican incumbent is pulling 20 percentile, incumbent who poll that low normally don't win. the question what is about that incumbent causing 70, 75% of the alabama voters to reject him on the first ballot? connell: president has been feuding with the majority leader. you mentioned mitch mcconnell. they have been going back and forth. a tweet about it earlier today, from the president after mcconnell's comments earlier in the week. you talked about draining the swamp. that is phrase used by trump administration. certainly from your wing of the republican party as well. mitch mcconnell, is part of that swamp, is that your point? >> no question.

mitch mcconnell may be the king of the swamp you get to what the who and swamp is, k street lobbyists and special interest groups, behind the scenes fill covers of candidates up with piles of money in hops that those candidates and officeholders in turn will not do what is in america's best interests but what is in the interests of those special interests. they love luther strange, the swamp critters, he is is decades-long washington, d.c., lobbiest himself. that is what he was before he became attorney general. mitch mcconnell wants to get behind a swamp critter who can raise money, despite the fact we don't get health care through the senate. we don't do things for deficit and debt in the senate. we have no tax reform in the senate. we have 60% rule killing entire legislative agenda in the united states. still operational tool or rule in the united states senate that chuck schumer and democrats use to kill us. so i agree with president trump

when he says we to have majority rule in the united states senate. that the majority, we have 52, a majority, to pass legislation necessary to reverse damage that has been done by our predecessors from the socialist wing of the political spectrum of the united states. connell: we'll follow this race, congressman brooks. thank you for coming on with us. >> thank you. connell: we reached out i want to point out to senator strange, luther strange, we're told checking his schedule to see if and when he can join us. very interesting to say the least race there in state of alabama. in terms of senator mcconnell we're talking about, his quote was excessive expectations. that is what he says the president has. that certainly had the trump camp certainly the president quite fired up. feud is on on twitter and elsewhere. we'll talk about that and escalation of it coming up. north korea, tensions dragging stocks lower, down a third day in a row. down almost 130 points on the

dow, more on that when we come back.

time's up, insufficient we're on prenatal care.es. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you, too. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. so it only made sense to create a network that keeps up. introducing xfinity mobile. it combines america's largest, most reliable 4g lte with the most wifi hotspots nationwide. saving you money wherever you check your phone. yeah, even there.

see how much you can save when you choose by the gig or unlimited. call, or go to xfinitymobile.com. xfinity mobile. it's a new kind of network designed to save you money. i'm the one clocking in... when you're clocking out. sensing your every move and automatically adjusting to help you stay effortlessly comfortable. there. i can even warm these to help you fall asleep faster. does your bed do that? oh. i don't actually talk. though i'm smart enough to. i'm the new sleep number 360 smart bed. let's meet at a sleep number store. connell: we're seeing move toward investments, worries about north korea. bold is up. it is up 10 bucks.

that is the highest since june 7th for price of bold. 2.27% on treasury yield. treasury yields down. gold up. stocks being lower. that is market action. safe is in, move to safety something investors are talking about. in terms of north korea is what we're seeing now present day in north korea some sort of proof maybe negotiations and deals that we've tried to work out over the years just don't work? former state department official joel witt is with us. he worked on a north korea deal in the '90s. he is here in studio. >> good to be here. connell: what do you say of maybe 20 years of hindsight, was it all worth it, to work out nuclear deals with the north koreans? >> when people talk about diplomacy, they talk about 20 years of failure. in fact the record is much more mixed. for example, when i was in the

state department in the 1990s we reached a deal that stopped north korea from building 75 to 100 nuclear weapons. so when that deal collapsed, they had enough material to build less than five. so i mention that as an example that diplomacy can work but there are times when it doesn't work. connell: to your point, it did collapse. >> yes, it did collapse and part of that was because the north koreans were doing they were doing they shouldn't have done. i would argue the deal would work if we held their feet to the fire. connell: why didn't we? rob he o'neill talking about president bush, obama, leading up to know haven't done that when they had a chance to? >> that is exactly true. the bush administration essentially walked away from the deal, having caught the north koreans cheating, basically thought it would punish them

from, by walking away from the deal. the north koreans just restarted their program. then the bush administration started new negotiations to try to reconstitute the deal. they walked away from. connell: what about the eight years of the obama administration? criticisms have to be fair there too, right? >> yes. i was, i have been one of the loudest critics of the obama administration. i don't think they pursued the diplomatic option seriously enough. but in all fairness to them, what was happening also then was a leadership transition in north korea, which probably made the north koreans less willing to engage us. connell: so all of that is, you know, as they say in the past. we are here, it is what it is. what, from your expertise, from the lessons maybe that you learned from some of what we've just talked about over the last few minutes, what do you think is the best option now? >> well you know, i think it is

not just one tool in our tool box, it is a bunch of tool. for example, there is the tool of sanctions to put pressure on them. connell: right. >> there is the tool of protecting ourselves and our allies. and there is also the tool of diplomacy which i don't think we've seriously explored enough, to establish a dialogue. connell: through china? >> directly between us and the north koreans and based on my own discussions with the north koreans i think they are ready to do that, under certain conditions. neil: what are those conditions? something we can live with? >> the conditions are initially no preconditions. connell: should we do that? >> i think we should do it given the dangerous situation we're in. there is no down side to doing that. we can walk away. connell: you said militarily is that option that is on the table? i'm sure you war gamed some projects in the past? >> we protect our allies through

alliances. we have troops stationed in northeast asia. we have a lot of weapons there. we can also upgrade those as necessary, depending how the threat haves. connell: joel wit, thank you for coming in. very serious times. >> thanks a lot. connell: president trump is about to have lunch with the vice president. that is what we're told out at new jersey. that is the plan for today. vice president pence. we did all of the stories earlier about this whole idea of these pence for president rumors. president not running for re-election, vice president being interested in that. fallout from that is coming up next. we'll be right back. it's time to rethink 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. ♪

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. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction.

symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters. connell: from what we understand in new jersey vice president mike pence about to have lunch with president trump. that was the plan right around now.

new comments from anthony scaramucci and his infamous phone call with the new yorker sparking specialization about the vp and his future. to quote from scaramucci, the vice president can't believe what is going on. there was an expletive thrown in. gasparino is here. i don't like to talk with him. we have from "real clear politics" associate editor, a.b. stoddard, "new york post" columnist, michael goodwin and charlie gasparino. i will start with you. >> take mooch out of it for now. rewind the videotape, sunday or saturday "new york times" ran a story which i thought was really good. we had a big debate on monday. connell: about pence possibly running. >> setting ground work of a 2020 run. bringing in his former chief of staff, new chief of staff ayres made comment just in case. i thought it was solid story. new york republican, she didn't

think it was solid story. i thought it was solid story. okay, so what happens after that. ryan lizza did the scaramucci interview that led to scaramucci's dismissal. when he saw the story it jogged his memory, he saw a quote anthony gave him confirming about pence, confirming new york sometimes story. connell: trying to protect him. >> he said even worse. he said this is fing disaster or something. i wish we would put exact quote on there. listen, you can say a lot about anthony scaramucci expletive-laced conversation, i get you don't want, the white house communications director doing that stuff. i didn't think it was that bad. this is two guys talking. this is different for a white house communications director. he is essentially, he is essentially confirming a story that the white house spent three days trying to walk back. connell: pushing back.

a. about, do you agree this is what basically says from anthony or is it different to you? >> "new york times" stands by the story. they talked to multiple donors and people out there funding party. not just democrats saying how long can this last? republicans would want some kind of backup plan to be in place if there was a reason trump didn't run. at same time in vice president pence's defense, his job because of trump not being a long-standing republican or you know, real republican, or whatever people perceive it as within the party leadership, that makes them so nervous, pence is that bridge. he is a bridge to the donor community. he is fund-raising for trump for 2020. he is nuturing those relationships. he is doing exactly what he would be doing if he was only helping trump. he can run a campaign at same time. connell: we'll come back, charlie. >> people want him to be ready. connell: michael? >> i think by doing his job,

this is part of pence's job, keep republican camp with trump, to keep the funders on board and part of it is, he spends a lot of time with those people. look, mike pence is legitimate national candidate in his own right. so i think there are two jobs at once here. connell: is there serious talk behind the scenes the fact that the president might not run for re-election? >> i think there would have to be because of his age if nothing else. i don't think pence is being disloyal if he says to people look, yes, i might be available. i mean that does tend to freeze those from the outside who might want to start early. >> i want to throw either of you guys jump in. be real clear, the white house tried to walk back the new york sometimes story for three days. pence put out statements. trump had tweets. put it in context. ab, do you think, i think scaramucci, essentially confirmed the story, didn't he?

>> that is what it sound like in the conversation with lizza. that nick angilletta yres is in there to guide and protect pence. >> scaramucci made the comment while he is white house official. he confirmed it. >> that is not the same as saying pence is running. that was the import of "the new york times" story. connell: you wouldn't want the vice president to get hurt by the political problems of the current president. >> the way "the times" characterizes it is in effect a case of disloyalty on pence's part. >> i don't know. >> undercutting trump. connell: there is push back. >> he pushed back, i read the story, i'm no big fan of the new york tiles. just so you know i cut my teeth at "wall street journal," which we hated "new york times" back in the day. connell: go to harvard law school? >> no, i did not. university of missouri. connell: a little joke. >> in any event if you read "the times" all it said was

this, there is so much rancor, so much rancor in the trump white house, so much problems. he is older, right. president trump is older, that pence is laying the groundwork to run for possibly, if trump doesn't run, to run for 2020. but then it said, all this stuff about nick airs and then they denied it. then guess what, scaramucci seemed to confirm it. connell: there is whole other part of this too -- >> if he made those statements. i'm not, unless i hear it on tape i'm not you vouching for the veracity. connell: that is another issue, that the phone call was recorded without his permission. other members of the pub opinion, i guess establishment, that are anti-trump people, john kasich or ben sasse, ab, these or thes are getting set to possibly primary this president. that all comes as the president's feuding with the majority leader in the senate. quite a republican party right now. >> look the feud that is going

on the president opened up wide. i do believe senator mitch mcconnell started it with the remarks at rotary club is really, really a big problem. they are not a team right now. it is not just anti-trump republicans. senator tom cotton ever arkansas has been preparing some kind of beginning platform that could turn into a run and he is a big trump supporter. people are looking to be there in case it didn't work out to challenge mike pence. the story is good for mike pence, hey, i'm the big foot here. if it turns out that trump is not running another term i will lead the pack. connell: everybody on the panel agrees there is some possibility that the president considers not running? >> i mean i think one thing you have to keep in mind here is that one of the things that the trump white house does is push back on a lot of stories that are true, right, or -- connell: creates a credibility problem. >> their whole mod does operandi attack credibility of the media.

guess what just happened? as they attacked credibility of the mediaone of their own in there 10 days communications director, this was accurate quote basically confirmed the story they were denying. that is something we should -- >> look i still think the story goes too far saying laying the groundwork. that suggested he made up his mind he is running. >> what does scaramucci say or didn't say? connell: protecting himself -- >> but scaramucci has become a font of truth all of sudden in this. when did that happen? >> no, i don't think anybody ever questioned anthony's veracity? >> but he could be simply be wrong. >> i'm not saying he is wrong or right. everybody is known him to be truthful guy. it is his methods. what i'm saying to you, there was an administration source on the record if he was quoted accurately, confirming "the new york times" piece. connell: give me quick on the markets, charlie. down 170 on the dow. >> listen markets are at

all-time highs. if -- it trades off headlines. if you want reason to take profits, do it on potential nuclear war. i'm telling you that, by the way if it investors really believed we would go nukes with north korea which would cause all sorts of global economic issues, the market would be down 5,000 points. connell: a lot more. three days in a row. no kind of panic. thanks, guys. ab, thanks very much. charlie you'll be back. we're allowing that in the next hour. >> i can't believe it. the lawyers -- connell: we're checking with legal. new government numbers out show how many illegal immigrants are occupying our prison system. it is quite a number. someone coming up next is sounding the alarm on the number. growing calls to investigate the obama justice department. if nothing else, lighting up our social media pages. we can tell you about that and the subject and your tweets coming up next.

♪ it's a highly contagious disease that can be really serious... especially for my precious new grandchild. it's whooping cough. every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated.

♪ connell: this is kind of a big story or facebook would like it to be as it launches a new video platform. on the platform they have more than 30 short-form shows, tv shows. in the next hour we'll break it down in terms of what it might mean for the future of tv viewing but facebook is looking to, and talking quite some time making an impact in the television world. then there is tesla. tesla is developing a self-driving technology for big truck, for a semi. that is the latest that elon musk is pushing. they're pushing for a test run of this in the state of nevada. so almost like every day of the week there is something from elon musk. today it is on tesla. talk about health care now for the next few minutes. there are new numbers out revealing more problems with the current system. we mean obamacare. gerri willis is in the studio. >> new numbers are out. we never seen this out.

they're from a private source. they're manipulating private numbers. 6.5 million americans chose the obamacare penalty over enrollment. think about it. i don't want to obamacare. 6.5 million. i would rather pay money to the federal government. connell: how much did they have to pay? >> 695 per adult. gerri, that is not much money. but 695 bucks per adult or 2.5% of income, up to maximum of $2085. 2085dollars government takes out of your pocket. connell: that is calculation they're making choosing the fine rather than -- >> if you have a major problem, you walk into an emergency room. you by one-off care from doctors who sell their services on open market. these are folks, they are young, don't feel like they need coverage, they think there are options out there. connell: right. >> let me tell you a dirty

little secret about the cbo reports we never heard from. cbo believed 15 million americans would opt out. these are people enrolled if they didn't have to pay the fine. connell: exchanges, back and forth with mitch mcconnell, we'll talk about that in just a second, talking about exchanges, saying this whole then will collapse. we'll let it fail. any merit to that? >> well, so it is all about these extra, extra money goes to insurers that the federal government pays. will the president pay it, will he not pay it. he ponied up the dough at end of every month. so far we don't know if we'll do august or september. 13% is decrease in individual health insurance market members. who are the folks? these are not enrolling for health care coverage. they are viewers of this network. they have their own business. they work for themselves but they don't have coverage for employer. they may want to buy it on the exchange. they get no subsidy. it is way, way, way too expensive to do that.

connell: the president is talking about it. right on cue. show the tweet. he just tweeted and it is health care related and mitch mcconnell related. i don't know if lunch is over with the vice president, but he says, and i quote, mitch get back to work and put repeal and replace tax reform and great infrastructure bill on my desk for signing. you can do it. you can do it. wants the whole agenda to go through. this is something between the two of them. >> this is manoymano. using gop as opposition party. they're having such fights. connell: i wonder how it helps politically. maybe he think its does. >> his base is lock and loaded. they are going nowhere. connell: it fires them up. >> it fires them up. is that what he really wants? i think things dedicated to on his agenda. getting rid of obamacare.

connell: you need a team in d.c. to do it. thank you, gerri. wanted to bring the tweet to your attention since it with on topic and it came out. >> thank you. connell: the new numbers from the department of homeland security put a study out revealing 23% of all federal prisoners are actually illegal immigrants. seems high, right? 23%. vest cavaan is our next guest. it shows the importance of securing our borders. is it when you take away from it? >> that's right. there are 23% of federal inmates, 42,000 inmates in the federal system who are non-citizens. about half of them have already been ordered removed. most of the rest are on track to do so. this really shows that when we fail to secure our borders, it really does contribute to crime props here in the united states. and, we need to enforce the law, do a better job of border security.

these numbers should go down i hope. it also really undercuts the argument that's made by not only anti-enforcement people but the proponent of sanctuary jurisdictions that there are no crime problems associated with illegal immigration. well clearly there are. when you dig down into the in members, you can figure out what those crimes are. of course it is drug smuggling and trafficking and human smuggling and human trafficking but also disproportionate number of these federal prisoners who are doing time for murder and kidnapping and money laundering who are non-citizens. connell: i saw those numbers are similar, right, 20, 30%, something like that. depending which numbers you look at. in terms of digging into the numbers, just for perspective, i believe, you know more about this, correct me, overall number of people who live here but live here illegally is maybe 3 1/2%.

the number down with this number 23%, that tells you how high it is? >> that is exactly right. it is disproportionate share of people because the illegal immigration population is much smaller than that now part of the reason for that is because these are a lot of border-related crimes are being prosecuted. but it is still, even when you factor out the immigration-related crimes, there are really troubling number of offenders that are in our criminal justice system who should not be in this country in the first place. and really shows that, we can, there is a huge public safety impact on when we have robust immigration enforcement that takes place across the country. this isn't even counting numbers of people in state and local jails. connell: just federal. just federal, right? jessica, we have to move on right now but we thank you for joining us. obviously an important subject. we'll keep talking about it. jessica vaughn. latest on russia and why president trump's lawyer,

president trump's lawyer is signaling robert mueller may be overstepping. that and more coming up. peace o. we had a power outage for five days total. we lost a lot of food. we actually filed a claim with usaa to replace that spoiled food. and we really appreciated that we're the webber family and we are usaa members for life.

poallergies?reather. 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. or a little internet machine? [ phone ringing ] hi mom. it makes you wonder... shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet.

you get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money.

won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. connell: news alert here on some severe weather expected with forecasters seeing above average hurricane season.

what they're saying now, somewhere between 14 and 19 named storms. that is the prediction. comes as franklin makes it second landfall in mexico. franklin, the first atlantic hurricane of the year. you have prediction for the big season. we'll keep an eye on franklin as well. meanwhile new reaction to that raid on paul manafort's home we talked about yesterday. an attorney for the president emailing "the wall street journal," again one of president trump's attorneys, not paul manafort. appears the search warrant was obtained by gross abuse of the judicial process by the special counsel's office. in addition given obvious unlawful deficiencies, exextraordinarily tool and these efforts are normally found and employed in russia, not america. so the idea that robert mueller, and his office is, special counsel is overstepping. let's bring in former new york state supreme court tis joseph

cavello. good to see you. thank you for coming? >> good to see you. connell: what do you make the possibility they were overstepping a possibility? what would be the point? >> there is certainly a possibility. there is a great deal of shock value here. when you're running a grand jury you try to flip people, you try to get goods on individuals so they can lead you to other people. so there is going to be a great deal of work around the president. connell: so you try to scare paul manafort? >> and possibly others. connell: my first reaction, if they are raiding his home there was something he didn't turn over. his point, i have been cooperative, i have given everything you asked for. but if they're raiding the home perhaps they are not? >> not always the case. the other possibility they didn't believe he didn't turn

over anything. something might have come up with an interview with him, they learned there is document or something else in his computer or elsewhere. they went after it. but the timing of the raid and the fact that he was there when there was plenty of opportunity, when he was not there causes us some concern. connell: wake him up. they want to bust in. in your experience you've seen things like that? >> yeah. it's a great deal of shock value. it's a great deal of publicity as well. special prosecutor controls the grand jury. connell: right. >> it was once said you could indict a ham sandwich. connell: with a grand jury. >> it is not extremely difficult. connell: what about the warrant? you have to go through a judge, right? >> a judge. connell: show probable cause? >> probable cause to believe a crime was committed. not that this individual committed a crime. this case judge howell who is well-respected judge appointed by president obama in 2010, and she was a former prosecutor back

in the eastern district with loretta lynch. connell: okay. >> also a millioner about of mueller's team with a gentleman named weissmann. connell: they are working together. >> they were back in the early '90s. connell: you ever to present the evidence? >> doesn't mean there is any foul play here. connell: right. >> this judge has an excellent reputation. the other odd thing is, certainly cause for the president, for bells to go off is, he impaneled the grand jury washington, d.c. that is 80, 90% democratic. you could have gone across the river into maryland and got betterrepresentation of society as opposed to staying in washington, d.c., where you know a great deal of- connell: haven't heard people talking about that that is an interesting point the white house would be paying attention to. thankthank you, sir. thank you for coming in. >> thank you, sir. connell: ambassador bolton

coming up in a few minutes. you may have heard his views over the years on north korea and what we should do about north korea. we will talk to him about that. he always made the point when he was at the u.n., that you can stop the threat. we can do it, proactively, preemptively. we'll talk to ambassador bolton about that. gop fund-raiser noelle neck pour on money pouring in for republicans, to take on republicans. that and more straight ahead. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

:

. connell: back here on the north korea story, learning president trump will receive a security briefing in about an hour amid the growing worries about north korea. with that, we'll cover it throughout this hour, this is "coast-to-coast" once again for neil good to be with you, on hour number two, north korea is threatening a mid-august attack on guam. the u.s. territory. many asking if this all could have been prevented by previous presidents? that's the conversation starter for the former u.n. ambassador, john bolton, who starts us off now. ambassador bolton, always good to see you sir. work backwards and try to get to the present day. that's come up a lot, not only democratic but republican administrations prior could have done a lot more. where did things go wrong before we talk about where we are now? >> i think there's been 25 years of failure by definition, we are at a crisis, i think people need to understand, that

because of the developed north korean capability to drop nuclear warheads on their targets in the united states. but we've gotten here over a 25-year period where successive administrations as you rightly say, democrat and republican, clinton, bush, obama, all pursued policies that were doomed to failure. i think were visibly doomed to failure when being pursued. it rested on the assumption you could through a combination of carrots and sticks induce north korea to give up its nuclear weapons program. that was never going to happen and, in fact, never did. connell: you never thought that, just to give people the background what your view is, when you were at the u.n. or since you've been a commentator. you didn't think that, right? . >> i didn't think that when i was in the bush administration in charge of arms policy. the clinton administration signed the great framework in 194, president clinton said this is the end of the north korean nuclear threat. the north koreans were

violating that agreement before the ink was dry and by the time president bush came in, they were purchasing everything they needed for uranium enrichment program, the uniform view of intelligence agencies and the north koreans actually admitted it. there's enough evidence here you try and talk to the north koreans, make a commitment to give up the nuclear program. you give them tangible benefits, they pocket the benefits and keep moving. connell: the president is due to have a briefing on all of this, a security briefing. the type of briefing where someone like you working in the administration could be involved in. if he came to you and said ambassador bolton, what should i do about this? would you lay out the case for a preemptive strike? what would the case sound like? if he was skeptical, how would you make the case. >> i think there is one diplomatic play left, nothing to do with negotiating with north korea. trying convince china it's in china's national interest to

accept a reunification of the two korea. i wish we started ten years ago, like everybody else, i'd prefer to see this resolved peacefully. connell: sure. >> if that play doesn't work, the president and all his advisers, every american citizen has to ask the question, are we prepared to live under the continuing indeed permanent threat of a nuclear attack by this erratic, bizarre regime in north korea. i don't think we can accept that. and that's why the preemptive military option has to be on the table there. are a lot of different ways to do, it we're all concerned that any use of military force would put south korea, japan at risk, and that's something you have to take into account. let's be clear, as i say, there's a risk to americans already from what north korea has, and that risk would continue forever. connell: and i assume the

follow-up from this president or any president or one of the followups would be what you are talking about. he would say to you, sir, how many people might die in south korea? how many people might die in japan if i preemptively strike in japan. what would you say? >> sure, depends on factors that are hard to control. that's why nobody wants to be in the situation, some of the scenarios we're hearing today are the worst possible sxreem. i think there are steps we could take to inhibit north korea's retaliatory capability. honestly, this is one reason the president's rhetoric yesterday hopefully got people's attention in china because they have a lot at stake as well. it's a good argument whyryunecation is the way out. fundamentally, the job of the president of the united states is to protect american civilians. and the nuclear weapons in the hands of the north koreans are instruments of terror. they're not a real military threat to the united states, they're intended to hold

hostage our fellow citizens and i think that's unacceptable, especially when north korea's also perfectly capable of selling this technology to iran. connell: bingo. >> or terrorist groups, anybody with hard currency. connell: rob o'neill, the former navy s.e.a.l. brought up fears about iran, we expand on that, ambassador bolton, if it's okay with you, right now and talk about the growing fears with iran. bring pete hegseth on, it's good to see you, pete, thanks for coming into the studio. rob was here last hour, just exactly what ambassador bolton said. one thing to have the conversation about north korea, of course it's scary, another thing to have the same type of conversation about iran. >> of course, first of all, everything the ambassador said is 100% correct. iran is an example -- north korea is a preview of what iran will be. put yourself in the mind of a dictator or an autocrat. the one lesson you've learned

if you give up nuclear weapons, you die. what's the example of that? moammar gadhafi in libya. after the iraq war when we took down saddam hussein's regime, he gave up voluntarily nuclear weapons program. the arab spring happened, we were quick to intervene, he found himself dead in a ditch knifed by his own people. if you are kim jong-un, you know the nuclear weapon and the ability to deliver it is ticket to survival and relevance. they have a religious ideology behind them that is absent in north korea. it's that much worse, we're diplomating our way to basically blackmail. >> the opposite side of the argument there is if you do preemptively strike, right, get the ambassador's view when it comes to north korea and iran in a moment. want to get yours first. if you strike knowing what you laid out that the risk as well is he sneaks one, in the last-ditch effort from kim

jong-un knowing he's going down is to get a missile out of a mountain and hit south korea or japan and we have hundreds or worse dead. >> no one knows that, it requires difficult choices. does it get better in time? five years? ten years? 20 years, 30 years? connell: the president that was his argument in the tim russert interview. >> 20 years ago, if bill clinton acted in 1994 it was presented they were presenting nuclear arms. the white house should argue to prepare the american people for the fact this is going to be messy, we don't want these casualties, no one does, but you have to do something about it. connell: how were the conversations, ambassador bolton, maybe not in the clinton administration but the bush administration, how did the conversations happen? just what pete's talking about, if you make the case whether it's donald trump in the russert interview or the case pete is making now, how is it receiveed? >> well, unfortunately in the

bush administration, almost from the beginning, the commitment was made to engage in the six party talk, even after we broke out of the agreed framework. we never got to the point. it was frustrating. could i come back on iran for a second? connell: of course, of course. >> this has been a threat for nearly 20 years. north korea sold iran its first scud missiles using the same soviet era technology. objectives were the same in the 1990s to get delivery systems for nuclear weapons. in fact in the late 90s, north korea launched a missile that landed in the pacific east of japan, meaning they could hit japan clearly if they wanted to, and in response to the furor from japan north korea agreed to moratorium from launch testing on the korean peninsula. instead, they did all testing in conjunction with the iranians and this went on for years, and i think the evidence of collusion on the ballistic missile program is unassailable.

i think there's collusion on the nuclear program too, when george w. bush spoke of an axis of evil, it was not just a metaphor. connell: i want to get both of your opinions on this, pete, start with you, the rational actor debate about kim jong-un, what are the differences in your view between iran and north korea in terms of who's rational and who's not? >> they're both fairly rational. in north korea it's a survival issue. in iran it's -- >> very different. >> very different. some say distortion of religion, that's fine. the reality is they read a book that tells them to do a certain thing, in their mind, part of it is eradication of israel which is a stone's throw from iran. if they get the weapon, we've heard what dictators say in the past. i'm going to do something if i have the power to do it. they are saying the very same thing in iran, i will wipe israel off the map if i have the capability. it may not happen tomorrow but reserve the right and ability

to do so, and in a world where ideology still matters and the left wants to pretend we live in a community where everyone gets along. you better be prepared to face the scenario. connell: ambassador bolton, as funny as it sounds, i don't like to say it's easier but deal with kim jong-un is rational and easier to deal with because it's survival and ideology as pete lays out? >> i think the regime is rational in its terms but that's not a rationality that we recognize, and not just kim jong-un who's the problem, it's the regime. nobody should operate under the belief if we take kim jong-un out somehow, the generals would be more reasonable, and i think we see this reflected now in the threats in the next days to launch missiles against guam. people say the regime doesn't want to commit suicide, but i'm very concerned they have a kind of hitler in the bunker

mentality. and they think if they're going to go down, by god, they're going to take as many of the rest of us as they can. connell: they wouldn't wait for us to strike first. you think they would initiate it in guam? >> honestly, i don't know. and i find that scary. but i think the lesson ahead is they would use the nuclear weapons as blackmail, pull all american troops out of korea and japan or we'll nuke tokyo. that's the threat we could face. >> guam is not the ultimate end state, guam is a means to -- end state would be blaze of glory as the ambassador mentioned. if they go down, they'll go down as big as possible. connell: south korea? >> south korea or los angeles or mainland or hawaii. which is why they want the miniatureized nuclear weapon we know they have based on intelligence agencies and the ability to deliver it. that's the meal ticket, to survival and the worst-case scenario for us. connell: thanks, guys, ambassador bolton, thank you, thank you, pete. appreciate it. north korea and the tensions have been dragging stocks

lower, something we've been monitoring. the dow down 130. not panic selling by any stretch. we're down three days in a row but orderly and maybe if anything a pullback that some say was needed. but we have seen this move to safer investments generally speaking today. not just stocks, yields on treasuries move lower, gold moving up. alan knuckman joins us with his view, a market watcher and has been for many years. what do you think is going on here? >> well, i am at a bit more ease that the market's not having a sharp sell-off like you talked about. three-quarters of a percent, one percent down, a modest movement, if we focus on price, not policy, it's a subdued reaction, and what i'm noticing, you talked about gold being higher, gold is still not taking out recent highs at $1300 that it had a couple months ago. if you look at the flight to quality actions here, treasuries on this last sell-off here in the last hour

or so when we knew relative lows in stocks, we didn't make highs in treasuries. that is showing divergence there is not as much fear in the market right now. connell: some of the market, whatever asset class, maybe need an excuse to do something like this right now, rather than find a reason to quote, unquote pang. we need to pull back a little, right, in some of the markets? >> right, we were looking for an excuse to unwind to take profits. come such a long ways, and the question is, is it different this time? we've seen this before where we've had the spike in volatility. the spike in fear and a little sell-off in the markets. and everything always corrected itself, we made new highs afterwards. if we go back to history here, recently, we have brexit, we had the china crash in 2016. right now the vix is about half of those levels. so it's not been a major move, when we talk about the vix, we're up to 15, but that's

because we were such low, low levels. the volatility index trading between 10 and 12 for four months, it compressed range and you're seeing short covering and really that's why we term it right now. we want to see where we stand on a weekly basis at the end of the day tomorrow. connell: good perspective. president trump, in the midst of everything else he's dealing with, talking about north korea is in the midst of the feud with the majority leader in the senate, obviously from his own party, mitch mcconnell. he says get back to work, he's tweeting about it. did in the last hour. why someone here says the president could use this moment to force his agenda through congress. that's coming up after a quick break.

it's time to rethink 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. ♪

hey, i'm the internet! ♪ i know a bunch of people who would love that. the internet loves what you're doing...

...so build a better website in under an hour with... ...gocentral from godaddy. the internet is waiting. start for free today at godaddy.

. connell: back now to the domestic politics, the tweets in the last hour from president trump, third time in 24 hours talked about mitch mcconnell saying get back to work. put repeal and replace, tax reform and cut and a great infrastructure bill on my desk for signing, and ends it, you can do it. alabama republican congressman mo brooks also criticizing the senate majority leader when he appeared with us last hour, watch. >> mitch mcconnell is part of the swamp, is that your point?

>> no question. mitch mcconnell may be the king of the swamp, but when you get to who and what the swamp is, it consists of the k street lobbyists and the special interest groups that behind the scenes build the coffers up with pile of money and hope the candidates and officers in turn will not do what's in america's best interest but do what's in the interest of the special interests. connell: all comes as the hedge fund billionaire robert mercer is spending money to unseat jeff flake in arizona, the senator there. is this growing republican divide going to hurt the agenda? or make the argument it helps it. we're joined by noelle nikpour, real clear politics founder tom bevin and bush 43 speechwriter, what's going on with the republican feud? who's raising money? >> my gosh, as a fund-raiser this concerns me, what really is going to be interesting is

this jeff flake race in arizona, i'll tell you why. robert mercer is one of our biggest go to donors, he is not scared to write a check, and i'll tell you what's troublesome is the fact that maybe for the first time we're going to see robert mercer and his check versus the club for growth because flake, flake has a 96% lifetime record with the club for growth. what are they going do? are they going to cut and run or stand up and face robert mercer? this is going to be like a holy war with super pacs. connell: we don't envy your position being in the fund-raising game, you don't know who's with who and who's against who? tom, to you on the concept, the anti-trump republicans, noelle brings up jeff flake and others not necessarily with the president. they don't have the support from the base, that's for sure, what is the fallout going to look like from all this? >> well, i think there are

going to be a lot of primaries, upset rank-and-file republicans when republicans finally control the hours, senate and the presidency, are not able to deliver on their most basic promises, including repealing obamacare, everyone in the house and senate has run on for seven years. i think when you see trump getting after mitch mcconnell publicly on this, that shores up his base. the folks around the country don't like washington, they don't like mitch mcconnell they think washington is part of the problem. connell: we hear it. >> this is going to be a real problem for republicans moving forward splitting the party. only going to get worse. connell: so many negative tweets on mitch mcconnell and paul ryan coming from trump supporters. not that that's necessarily scientific to. speak what tom is talking about. what happens to the republican agenda now? we've talked for the last few months about nothing getting done. now they're all fighting with each other, what happens? >> couple things, trump came

out with a carrot, now the stick. these guys have had most of the year, 200 days to get some agenda passed forward, and you know when mitch mcconnell comes out and says the president and quite frankly supporters have excessive expectations, i'm sorry, mr. mcconnell, for seven years, and raising tens of millions of dollars off repeal, and by the way, let's not forget the press conference in january when paul ryan and mitch mcconnell said we think in the first 200 days that is legislative agenda that we can accomplish, and guess what? nothing has been accomplished. the thing that they have to remember is midterms are a base election, the base is with trump. trump needs to bring them down to the white house when they come back in september from a vacation from doing nothing and say let me help you help yourself. connell: midterms -- you are right about that -- go ahead, make the final point. >> i will say, this these primaries could be a healthy thing in a lot of the states where republican senators are up for re-election in 2018

outside of arizona and nevada, they are deep red states. the questions should be asked of the incumbent republicans, would you vote for new leadership if you maintain senate majority. if the answer is no, they get a primary opponent. connell: i'm sure the questions will already be asked being like when nancy pelosi faced opposition on the democratic side. what about the agenda, tom? you talk about that for a little bit. to ned's point, the primaries are interesting to watch and see how the base comes out, but told governing is a team sport, right? now next thing up is supposed to be tax reform. how do you get the votes if you're all fighting with each other? >> great question and part of the problem is the resistance in congress, the republicans aren't up for re-election, john mccain, lisa murkowski and susan collins. they are not playing team ball, though they were in favor of repeal and repeal and replace. connell: raised a lot of money. >> that's right.

a problem for mitch mcconnell. look at the end of the day, i agree with ned, this is mitch mcconnell's job, if he can't get it done, find someone else to get it done, and i know it's tough, it's a slim governing majority and all that, but at the same time, that is his job as leader of the senate -- connell: ned, you want to make a point, make it quick, i want to get noelle back. >> find common ground on tax reform, the 10 democratic senators up for re-election in red states, manchin, heitkamp, let's not go big and comprehensive, let's get four, five tax items done, they can get something done by the end of the year and get democrats to vote along with them. connell: steve manchin, what do you think, noelle in terms of getting something done, you are confused who's with who and raising money against whom, who do you think about actually governing? >> you know what? it's very important for the market and for everybody in general that we get tax reform done.

you've got look at this even deeper. i talked to one of my bundlers, walter blessy in louisiana and said are you going to help me, do anything with bundleing? he's like noelle, you remember your sales pitch a while back where you told me if we get the president, the house, the senate, the trifecta it's all going to be great? why should i put my money? what should i back? and dead silence on the other end from me, i just ate my words. >> amazing, that's a problem by the way. >> yeah, and jamie dimon came out and saying can we not get anything done? why didn't we start with infrastructure? to jamie's point, why didn't we? connell: we would have had a big win beginning of the year, it was all talk. the talk about trump working with chuck schumer, that seems like it was years ago. >> two new york guys, going to work together on infrastructure.

connell: here we are. thank you, guys, tom and ned, thank you, and noelle good to see you, too. thanks to three of you. federal judge ordered a new search of hillary clinton's benghazi e-mails, believe it or not. that story is back. of course the judge is all over it. andrew napolitano is coming up. we'll check in with him and see what it all means. about half hour from now or so, the president will receive that security briefing we referenced earlier. the tensions seem to do nothing but rise with regards to north korea. we'll talk more about that when we come back.

. connell: back. a federal judge is ordering the state department to try to find e-mails that hillary clinton sent related to benghazi. the judge ruled the state department had not done enough in the past to track down the conversations, so yes, we are talking about benghazi again. judge andrew napolitano is with us in the studio. hard to believe the story is still around.

what happened exactly to the e-mails? >> here's why the story is around. the obama justice department and state department refused to examine the state department's servers for e-mails mrs. clinton sent to her personal aides and e-mails the aides sent to her. connell: what did they examine? >> they examined the 33,000 e-mails mrs. clinton returned. connell: right. >> she destroyed 30,000, returned 33 jo they are just looking at the ones she gave them? >> also looked at the ones that the fbi retrieved from her half-destroyed server, the ones they could extract from there, the fbi sent to the state department and decided which are relevant, which are irrelevant? which are classified? and they surrendered those. they refused to examine the ones to and from the three closest aides. connell: why? >> here's why i'm so animated by this. the lawyers who represented the obama administration state department are the same lawyers

who represented the trump state department and made the exact same argument. if you didn't see the date, you would think this oral argument was a year ago. the obama state department. obama justice department, trump state department, trump justice department, all protecting mrs. clinton. connell: what? >> it seems incredible, listen to what the president said when he was candidate trump. connell: that was like the last conversation, we don't know who's raising money for who or who's again the who? >> in their opinion it was too much work and unlikely to produce anything, 33,000 e-mails is enough. connell: that was the argument. >> yes, and a federal judge appointed by president obama said it's not enough. you will go through all the state department servers. you will retrieve every e-mail mrs. clinton sent to the three aides, every e-mail they sent to each other during the time in question, the day before benghazi to january of the following year. connell: who's doing that?

state department is doing that now? >> same state department drawn into court yesterday kicking and screaming is doing it. same state department that wants to protect mrs. clinton's privacy is doing it. connell: there will be staffers going through all of the e-mails and look to see if benghazi is in it themselves? >> yes, you surrender what you're going to surrender, if you're not going to surrender, you make a schedule of and make a reason for not surrendering it, so the reason can be challenged before a federal judge. found 10,000, here's 7,000, here's the reasons why we're not going to give you the other 3,000, you can challenge each one individually, a judge looks at them in private and decides, yes, no, yes, no, when judges do it, they almost always say yes, surrender. connell: interesting, both administrations made the same argument, you are telling us essentially hey you're probably not going to find anything here. is that a legal argument? how do they articulate that?

>> very good question. it is not a legal argument in that it comes from the statute, but the judicial interpretations of the statute have said if you reach the point of diminishing returns, if you have a truckload of documents still to go through and it's like a needle in the haystack, come to court and ask for relief. that's what they said. connell: no line where you know where that one is. >> there's no bright line, it's not we're going to find anything, wait a minute, did you even look? these are at u.s.gov, at government servers and you didn't look. we have the obama appointed judge who says why is the jeff sessions justice department defending hillary clinton? connell: what's going on here? so right before the last hour we had another judge in here, neil only books italian judges. >> also from new jersey? [laughter] >> not that there's anything wrong with that, new jersey.

we're talking about the manafort raid yesterday. what do you think comes out of that? his point was you can't always assume just because they raid somebody's house that they could try to scare somebody, manafort, flip a witness or something like that? >> the answer is i generally agree with the other judge, however, this is the most potent weapon that the fbi and the justice department has, unannounced predawn raid on a private residence, they can't do this on their own, they need a search warrant they have to testify what they're look for, why they think it's there, why they think it's evidence of a crime and why they can't get it through a less intrusive means? once they persuade the federal judge as they did in july, they'll assign a search warrant. connell: what is less intrusive means? hey, we couldn't have called him up? >> we don't think he was

telling us the truth. he has a very sophisticated lawyer, a former justice department lawyer himself. this is why it's so startling in the legal community, connell, because it is so rare that the justice department will do this to someone who's represented by counsel who used to work with them. connell: strange times. >> their goal is to indict manafort for something, hold the indictment over his head and spill beans on donald trump. connell: right, and that's the whole idea. good to see you, judge. >> likewise. connell: always interesting to hear you explain these things and we understand them a little better. >> pleasure. connell: next up, talk about anthony scaramucci a little bit. he's taken to the late night circuit. of course we have to call in gasparino to talk about that. ♪ whatever you want to do... ♪ ...is alright with me.

♪ ooo baby let's... ♪ ...let's stay together...

. connell: we have a business alert on uber. turns out the first employee and the first ceo ryan graves stepping down from his position as a senior vice president of global services.

so an executive is the point, at uber is stepping down and graves telling staffers that ceo will continue to focus on role as member of the board. so there you go, going to stay on the board but stepping down with uber, company that's had different kinds of problems. >> the online streaming wars, talking about them all week long, there's a pickup in tv launching the new video service. they're calling it watch. that's the name of it. what does it mean for the overall streaming wars, whether it disney or anybody else, lauren simonetti joins us and shamma, thank you for joining us as well. i will start with you, facebook has been talking about this forever, they want to be the place, the destination, to watch tv or watch video, think it will work? >> yeah, facebook has had this as a long-term strategy and now

we're seeing them execute this more and more, think about facebook watch as a cross between netflix and youtube, this is a very, very small market right now that's poised to grow even larger in the coming years. connell: i was talking with the time inc. ceo the other day, facebook is a company for other media companies to deal with because it's either a friend or partner. like us or other media companies giving them content to put on, but facebook hates paying for it, they come up with their own direction, maybe a combination of the two, it's interesting. >> i think they're trying to be everybody and yet be themselves. we were talking about how facebook is doing the youtube thing getting the content creators, the popular people who have followings to create original content, they are challenging tv programmers with a live baseball game and shows that air once a week live, and trying to be facebook which

brings people together, the community feel. connell: they have the people, the people are there. the other thing that's there is cord cutting. talking about it for years, and there are certain people that were early adopters, new technology, right? but now you have so many options either on the way with this facebook thing coming out today and expanding in the next few months or coming out next year, disney is expanding with espn and the movies and others have plans. cord cutting is here for real, don't you think? >> yeah, absolutely. i mean i think it's interesting that people want choices and facebook watches one more choice, right? what's interesting from not just the content but hey, this is what your friends are finding funny or likely to enjoy watching, based on your past history, right? which is very much that netflix algorithm thing that we're used to. it will be interesting to see the crossover to not just more content but relevant content

that's geared based on your tastes and likes. connell: you watch a lot, lauren, that would fall in the cord cutting? you are nodding your head. you watch a lot of tv cord cutting related? >> we have cable because i watch you on fox business all day long. we stream, too. i have to content on the content we're getting from facebook. we hear there's 40 original shows. is this stuff that you want to watch? the great cheese hunt. the best cheese from around the world. that's one. connell: i don't even like cheese. >> there's a woodworking show. you don't like cheese? a woodworking show. connell: 0 for 2. >> rising stars, all about young and upcoming leaders in technology. >> slow start. >> when they do the national rollout, that's when you get to reality tv and the dating shows. connell: are they going do that? it really is a slow start, they'll have bigger items to come out with.

you think it works long-term that facebook is a tv player? a player in this business? >> yeah, look, everyone is in the content business right now, regardless what you do, every business is in some ways a publisher, every business is a media company today. if you're not embracing that you're falling behind. i don't think this is so much taking away, right, from anything. i think it's more additive, and there are all these different shows, that means there's that many different types of people looking for different -- it's about choices, options, what the consumers are hungry for, so everybody going to watch the woodworking so. connell: not the cheese show. >> of course not. yeah, not everyone is going to be into everything, that's part of the digital system, the ecosystem we live, in regardless what you like, there is something for you. facebook is smart with that, they always start small, they roll out things, test, get feedback and go bigger.

>> do you really think people are going to talk, chat among each other on the social site as they're watching these shows? >> people do, people tweet about shows, award shows or games. we got to run, appreciate it, both of you, good discussion on this. amazon is in the game as well, which i mention as we go to the business alert, it is the company hurting this one. look at blue apron, remember that ipo? down 17%. nicole petallides is following it for us joins us from the new york stock exchange. wow, what's going on for blue apron? >> lot of hopes, the ipo was a $10 ipo, lowered from original prices and since then down almost 5% since the june 29th ipo. how did they do in the latest quarter? not well at all, the quarterly number showed a net loss of $31 million versus a year ago where they posted a small profit. costs on the rise, spending money on distribution centers

and marketing that is killing them as they try and gain more customers. they have had so many costs that it's killing overall numbers. ipo price as i noted was $10, you can see it just above the $5 mark, and you mentioned amazon, amazon gunning not only in the food industry and having the acquisition of whole foods but the meal kit delivery industry in particular because they've actually filed for trademarks in that area, they want to compete directly against blue apron and the meal kit biz. big picture, and this is a big one. puns don't stop, they've lost the appetite for the company, shares have fallen like a souffle and fires in the kitchen. connell: i like it, nicole. the guy taking out the garbage, i thought he was taking out food from blue apron. nicole petallides on the floor of the always busy new york stock exchange. we're going to have a scaramucci discussion next.

there he is. on his way out. but he's ready to come back, and apparently he's heading for late-night tv. you talk scaramucci, you bring in gasparino. that's what we're doing in just a moment. there's reaction and calls for investigation into the loretta lynch story. your reactions to that are straight ahead. don't go away. who knew that phones would start doing everything?

entertaining us, getting us back on track and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save when you choose by the gig or unlimited. call or go to xfinitymobile.com. xfinity mobile. it's a new kind of network, designed to save you money.

you're searching for something. whoooo. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if... ....there was a single site... ...where you could find the... ...right hotel for you at the best price? there is. because tripadvisor now compares... ...prices from over 200 booking... ...sites ...to save you up to 30%... ...on the hotel you want. trust this bird's words. tripadvisor. the latest reviews.

the lowest prices. . connell: sometimes seems like two years ago but two weeks after the ouster of anthony scaramuccisa the white house communications director, and the comeback is already being talked about publicly. he will be a guest on late-night television on the late show with stephen colbert. that is set for monday. so charlie gasparino is back with us, the mooch is doing late night. good idea or what do you think? . >> the late night is a good idea, i think it's a more relaxed setting, he's good in that. he's a funny guy, he can be self-deprecating in that kind of seting. >> trying to set himself up for a business comeback or political comeback? or some sort of comeback, he's taking it on the chin involving the new yorker and not so much the phone call he made to cnn the day that -- connell: the cuomo thing? >> the cuomo thing and it was a

bunch of other stuff. those ten days were not the best ten day of his career. connell: only ten davis that career. can i ask you about the lizza thing, the ethics and journalism and what's off and on the record. newest thing this guy a reporter at the new yorker recorded that phone call without his permission. >> i will say this, i don't record calls, when was at the "wall street journal," we were not allowed to record calls, that was a paper policy. here's the law, the law is one party consent states, d.c. is not a state, it's a district. it only takes me to consent. in new york state, i can record anybody that calls me, doesn't matter, it's legal. and we should back up a little bit about this. he initiated the call to lizza. they were both in d.c., which is one party consent. in that call it was pretty

clear that anthony was on the record. there was parts where he has to be off the record. that's the problem he has, he has a credibility problem on this thing. okay, let's be real clear, stay wasn't a one-party consent state, it doesn't change the fact of what he said. i will tell you, here's the problem they think the land mine, the potential land mine, he's doing colbert, he could have fun, maybe, maybe colbert is -- connell: you could see the jokes coming. >> he's also going on stephanopoulos on friday, on sunday. here's the problem with that. he has made the ryan lizza thing into a bigger story. he came out, there were tweets where he didn't give the guy permission where he didn't know he was taped and called him a hashtag, it was low life, and then he actually tried to say a couple other things. connell: he'll be asked about that sunday.

>> by the way, the last thing that lizza taped that came out with him was damning. it basically confirmed "the new york times" store bee pence. connell: we've got to run, late night and the sunday shows. >> i'm more interested in stephanopoulos, that could be interesting. seeing a flight to safety in the markets, something we talked about throughout the show, whether it's stocks or the bond market, gold up 12 bucks, nothing crazy but the highest level since june 7th. ten-year treasury yield, that's about a six-week low. we'll come back and talk more about it, what we continue, cavuto "coast-to-coast" will be back in just a moment. nd, gary:. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually-

gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing) itwhat's possible.nk 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. ♪ . . . .

connell: really this loretta lynch story, growing calls for investigation into the tarmac meeting between loretta lynch and bill clinton getting a lot of attention on our social media pages. a lot of people fired up like jack. our government is no better than the russian, chinese governments, they're crooked as hell, especially our security agencies appears. here is one from facebook. jim writing in when they can't defend trump's treasonnist behavior they dive into clinton. you don't so they won't. they bummed into each or the about accident really. fbi, by doj equals collusion. all caps.

a lot of people are interested in that story. i'm sure they're interested as well in north korea. the president is getting a security briefing here in a few moments on that. something trish regan will cover in addition to markets and everything else. hey, trish. trish: thank you so much, connell. breaking this hour we'll hear from the state department any minute from now as this whole war of words between president trump and north korea escalates. the rogue nation threatening to strike the united states first, even warning this attack can happen just days from now. and this new threat weighing on markets. stocks down 136. i would point out here, investors still considering what has been said taking things in stride as we look at this level of 21,911. we await the state department. i'm trish regan. welcome, everyone, to "the intelligence report." north korea's military says they're days awa