getting something done. lauren: thank you, mike ryan. the bells on the wall street about to ring. [closing bell rings] this is the worst day since the middle of may. snap, earnings on tap. catch me tomorrow morning at 5:00 a.m. melissa: dow ending down about 200 points. look at that! all three major averages biggest drop since mid-may. david: looks like panic selling. never a good idea, folks. melissa: don't lock it in. david: glad you could join us. this is "after the bell." more on the big market movers. here is what else we're covering in very busy. we'll hear from the president, president trump doubling down on harsh words for north korea saying his fire and fury talk may not have been tough enough. the president slamming senate majority leader mitch mcconnell once again.

we'll play the personal challenge he made to mcconnell as we await more comments. they're coming this hour from the president as tensions continue to escalate with north korea, making new threats against the u.s. territory of guam. we'll be speaking with the governor of guam. that is coming up. a federal judge ordering the state department to turn over its copies of hillary clinton benghazi emails. we'll tell you about this breaking story, also coming up. melissa: the dow seeing the biggest drop in three months. let's go straight to nicole petallides on floor of new york stock exchange. nicole, why are we seeing such big moves in the market today versus what we've seen the past couple days? we had the concern and tension. it has been around. >> it has. it moved one day to the next. i heard the term panic selling and i get that and i will say traders are taking it in stride. no one want to see the 200 point

loss. they say, what happens next i want i want to bring you reassurance i spoke withed it weisberg and ultimately they're taking this in stride. we had a nice run-up. we're hitting highs. the selloff is accelerated. this he can not he deny that. 70 points lost last two trading days. north 202 right now. we're seeing everybody running to gold and bonds as a safe haven. we're keeping an eye on an important story which is amazon, will sell tickets to live nation. those are up 5%. also on the news live nation posted some strong results ultimately. we're watch for amazon to begin selling tickets. is there anything amazon doesn't do? last but not least we'll watch for uber as well, any news on uber and on the move there.

also kalanick and any news pertaining to him. so the benchmark capital is now suing travis kalanick for fraud. melissa: wow, biggest loss since may 17th. nicole thank you for that. gold climbing for the second straight day closing up $11 an ounce to end the day at 1283.70, the highest level since june 7. gold is up more than 11 1/2% for the year. david: a lot to talk about with our market panel. scott martin, kingsview asset management, also a fox news contributor, kevin kelly from recon capital. whether you want to call it panic selling selling into a crisis is never good, is it? >> no. do you know when to get back in? that is one of the biggest issues. we saw technology sell off 2%. they led that market. seems like people are row indicating out leadership going

to cash. that is not a good idea. technology did very well this earnings season conversely to what is happening in retail right now. especially increasing dividends, doing share buybacks. they have the best balance sheets. not a good time especially heart economic data is doing well. durable goods report and jobs number. david: scott, you are an eternal optimism, one of reasons i love you. i want you to put on a pessimist mick hat for the moment. assume the worst happens, a attack or preemptive attack by the united states on north korea. what do we do with stocks? do we sell i am pooled or what? >> david, you don't want to sell immediately because the market will typically overreact. the market will always find a reason to take shots first and ask questions later. to find optimism, my friend, there are things you can do if you're a scared investor today. lauren talked about, talking

about bonds or gold or maybe defensive stocks like consumer staples or utilities which are still stocks you can go out buy tomorrow which will tend to hedge big volatile moves in technology which i would still buy if we get a severe pullback. david: people are listening to you, utility stocks were only winner in the market. there were a couple of winners. melissa. melissa: uncertainty over health care. failure to repeal an replace obamacare is spurring insurers to leave state exchanges and hike premiums this according to a new report from the case -- kaiser family foundation. scott, what is your take. >> the health care debate rolls on. doesn't it feel like we're getting closer and closer to a single payer solution. melissa: oh. >> nobody in congress, tell you, melissa, nobody in congress wants to say that, as far as democrats maybe bernie sanders would be standing up clapping talking about this right now. what is interesting, you look anywhere across the board, there

has to be pain on insurer side. donald trump came out in may said we'll not pay ransom to insurers. look how well insurers done on obamacare. look how much funding they get going forward. you can't expect them to insure all the sick peel expected to be taken on their books. therefore they will make out like bandits provided they get that funding. >> kevin, i'm inning a gone any listening to that. he might be absolutely right. it is beyond painful. save me. >> important to note that health care takes up 17% of our gdp. that is only growing because we have an aging population. the health insurers have done well up 300% since obamacare. they get cost sharing saab is sy disback to them. subsidies. melissa: you're not allowed to call them cost sharing subsidies. they're my tax dollars. >> exactly. i was pointing out they're getting them, they're still leaving certain exchanges.

that is the issue we need to get out. health care is the cost to them. wages are not rising. health care debate needs to be fixed. i know. david: not single-payer either. it is socialized medicine. melissa: we have to get these terms back. david: a tax the rich lawsuit, seattle sued over its new controversial income tax on the wealthy. scott, i am just wondering, people can vote with their feet and they very often do. you live in a state illinois, where thousand, tens of thousands of people are leaving the state every year, partly i would say because of the taxes. aren't they going to do the same in seattle if this passes? >> i would assume, david. illinois is a poster wild what happens if you get government overreach. yes the tax situation, frankly the weather i think drives people out too. maybe chicago bears football team. you're right exactly what is going on in seattle, david, when you talk about minimum wage hikes, things have gone on to take on a business climate

totally erroneous and totally oppressive. when you have a local government doing that to their people and doing that to their businesses which provide the revenues, those are things that will drive people away. david: apart from the revenues, kevin, top 1:00%, we got to face it, whether you like them or hate them, the top 1% pay 40% of all income taxes. if you increase on state and local level, even more. won't people move out? >> they will move out. the top 1% can figure out how to avoid certain taxes right? the tax code is 75,000 pages on the federal side. they will find a way to keep what's theirs, and that is their own money. the problem we have local governments think they can actually take this money from the 1% but they're not realizing the 1% won't stand for it an move elsewhere. david: you can't squeeze blood from a stone. >> the government doesn't know how to spend your money than you do. david: that's for sure. >> 1:00% know that. they will find a way. >> they wan move, guys. they can move their businesses versus people stuck there.

same thing with chicago. david: last word. you're both right. scott, kevin, thank you very much. melissa. melissa: doubling down on fire and fury. president trump pushing back against critics who say his warning to north korea was quote, too tough. just moments ago our own adam shapiro live in bridgewater, new jersey with the latest. adam? >> reporter: the latest, the president as you said, thinking perhaps what he said with fire and fury wasn't tough enough. saying that previous presidents he cited bill clinton in the negotiations with the north korea, he said clinton was weak and ineffective. it is time for someone, the united states particularly to stand up to the north korean regime. here is president trump in his own words just half an hour ago. >> i can tell you what they have been doing and what they have been getting away with is a tragedy, and it can't be allowed >> reporter: of course what they have been getting away with is

the testing of missilesnow, intercontinental ballistic missiles and the realization that the north koreans developed technology that would allow them to miniaturize a nuclear device and place it on top of a missile. that is what the world is afraid of. that is why the u.n. security council voted unanimously to impose sanctions on north korea. there is the potential of disagreement within the administration. heather nauert, the spokesperson for secretary of state rex tillerson was asked about statements from the secretary of defense mr. mattis versus statements from mr. tillerson which seemed to be in conflict with one another. here is what she said. >> i speak for secretary tillerson and this building. our secretary has been very clear as has secretary mattis our diplomatic and military means are both strong and capable. in the face of the threats that we face against the dprk or other nations. >> reporter: now we hope to be bringing you additional video and comments from the president about the security briefing that

he was taking part in today within the hour. we have the tape. it is on its way here to be fed back but we hope to bring that to you any moment. back to you. melissa: adam, i just want to ask you you before we let you go, there is kind of this dialogue it is about good cop and bad cop when you talk about what secretary tillerson is saying contrasts between what sebastian gorka is saying, i don't know, are you hearing that kind of thinking? >> reporter: people have not asked specifically if it is good cop bad cop although that is a pretty interesting question. what they're saying when we ask them specifically about the disagreements in message from heather nauert at the state department, to here in new jersey, vacation white house location. david: is that the administration is speaking with one voice, two tongs perhaps but one voice. melissa: interesting. adam thank you. we are awaiting new comment from the president any moment now. the moment those come we'll bring them to you.

david: when they happen we'll play them back for you. meantime we have some breaking news from after-hours on the stock front. snap is out with their numbers. nicole petallides has them. it doesn't look good of a hours, nicole. >> you're so right, david asman. what is interesting that the market is moving snap around. just a moment ago down 3%, down 10%. down 1%. even moving into positive territory. everybody is trying to digest the numbers. most evident of the numbers they missed on earnings per share and they missed on revenue ultimately. the loss bigger than expected, loss of 36 cents, versus loss of 14 cents. after-hours to the downside. they did add 7.3 new daily active users in the second quarter. that was around what everybody expected and year-over-year they're seeing 21% growth. what we're not seeing any advertising growth or where they might see that because we know that facebook has been copying

everything good from snapchat, everything from the cool filters and stories but we'll see what they will talk about advertising but you can see lower now. david: up and down. it can't make up its mind. melissa. melissa: let's go quickly to a tex expert. she is crowd scout chief marketing officer. thanks for joining us. what is your take on the numbers? >> the numbers are disappointing for snap investors. what is striking people even in the last day were optimistic they would hit some of those specifically the user numbers. there was optimism and they fell short. what you will see in the call, what they will try to divert our tangs with, they are focused on location an content. numbers there are good. viewers of original content is good. melissa: what would be your first question for the call? >> my first question would be, first of all, how are you expecting to generate more engagement?

you got less users than you expected. how do you want to keep them in your app longer? i think that will be a signal to advertisers as to whether or not they want to put money into snap. melissa: yeah. absolutely, shanna, thanks for the quick take. we appreciate it. >> thank you. david: just a reminder any moment now we'll get a tape playback. here is the president. let's listen in. >> a lot of subjects under discussion. david: this is actually video, the president already made his closing remarks to the press. we're awaiting those. these are comment as he was going into the meeting. when he comes out of the meeting we'll get remarks as well. if you heard these earlier remarks you know is loaded for bear today. talking about both north korea and mitch mcconnell. he is really, really frank today about everything. you don't want to miss it. coming up any moment. melissa: i love that. i don't like to mince words myself. i don't know if you guys know that. the white house searching

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for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. melissa: breaking news. news -- news corp with fourth quarter results. >> revenue 2.08 billion. that is just sigh of the estimates right there, not really moving. we saw a decline reflects lower print advertising revenues at news and information segments. we saw revenue coming in for the quarter for the books and book printing, 407 million. i want to give you updates on

snap which is down about 5% right now. again the number, adjusted number 16 cents per share loss versus estimates of a loss of 14 cents. so that was big are loss than expected on snap after-hours. it is down 4.3%. melissa: nicole, thank you. david? david: we have breaking news. we're awaiting new comments from the president on north korea out any moment. he could talk about anything in addition to north korea as he did earlier. so we're anxiously awaiting those comment as soon as we get them. ric grenell, former advisor to four u.n. ambassadors to the united nations and fox news contributor joins us now. >> eric: , it is clear the media is trying paint the administration at odds with each other. president comes out with something strong. rex tillerson comes out with something softer. all this infighting. i don't see it that way. i don't see those comments at loggerheads at each other, do

you? >> no. i mean, breaking news, the pentagon is different from the state department. one does diplomacy. one does military action. so, look i think as a diplomat what we always wanted to see a credible threat of military action behind us so when we're negotiating, when we're sitting across the table, when we're trying to find solutions that are calm and diplomatic in nature we know that there's a credible threat behind us so that if we fail, if we're unable to come to an agreement, then we transfer the file behind us to the pentagon. david: right. >> they don't negotiate. so there is -- david: forgive me, when do we reach the end of the diplomatic road? at what point? >> diplomats should never reach the end. they should constantly be trying up until it is not safe. so i would say that because we have two different branches, because we have two different very successful parts of the government, the state department

and the pentagon, they should be working own dual tracks and there should always be an evaluation by the nsc as to how successful one could be and whether or not we, for safety reasons pull people back. david: let me throw out, if you will, one suggestion of where that line should be, or where it maybe it shouldn't be from marie harf worked for the obama administration. she is like you, a fox news contributor. she was on "outnumbered" and. i want to play sound and get your reaction. go ahead. >> a couple of missiles landing outside of guam in the ocean enough to put millions of south koreans and americans stationed as troops in harm's way of north korean missiles. i'm not sure that is calculator -- david: my coworker said, are you kidding me? what do you make of that? >> she is saying likelihood that the missiles will go somewhere

else and we're likely not going to get hit. i don't think if you're in charge of national security you can make determinations on what it probable or likely. i think you have to protect the american people. the idea that any ile would be in the air, that we're relying on your defense is a very scary proposition. you're asking us -- david: even though you're a diplomat to the bitter end, you would say that would be enough of a provocation would deserve a military response from the united states? >> look i'm not a military guy. i would leave all those decisions up to the military. i want to see diplomacy with muscle. david, i still think there are things we can do. oil sanctions and banking sanctions have not been tried. why can't we do banking sanctions on china? the chinese pulled out oil sanctions out of last resolution. they should be in there. david: ric grenell. you're a good man, thanks for being here. appreciate it. thanks a lot. melissa: you can not allow another country to fire missiles at americans. david: yeah, but it didn't hit the target. melissa: unbelievable to me.

the pressure is on for senator mcconnell and health care and taxes are putting the senator's job on the line. are they? the president just weighed in about all of that, that is next. new hillary clinton benghazi emails be revealed soon? a new court order could make it possible. fred barnes weighing in. he will stay with us. ♪ ♪ [brother] any last words? [boy] karma, danny... ...karma! [vo] progress is seizing the moment. your summer moment awaits you, now that the summer of audi sales event is here. audi will cover your first month's lease payment on select models during the summer of audi sales event.

david: we are expecting to hear new comment from president trump. what you are looking at what he said when he went into a meeting. he is in the security briefing. when that wraps, he will come out to say some more. he said a lot the first time. we expect a lot more to come. we'll bring it to you when we first get it. melissa: we're seeing a tweet from the president but announcement from his daughter. ivanka trump will lead the u.s. delegation to india this fall, supporting women's

entrepreneurship globally. there you go. david: nearly a year after the election has ended benghazi is coming book into the spotlight. a judge ordering the state department, this judge appointed by president obama by the way, to search the state.gov email accounts of some of hillary clinton's top aides. blake burman following the closely. has all the details. we haven't heard the end of this story, blake. >> reporter: this is a win for conservative advocacy group "judicial watch" as a district court judge essentially said that the state department did not put forth a complete search as it related to the emails involving the 2012 benghazi attack. at issue here, three of the top aides to hillary clinton, probably remember these names from last year, that being huma abedin, cheryl mills and. the state department did not search its own system for the state dot governor emails.

in essence, "judicial watch" doesn't trust that all the pertinent benghazi emails was put forward and "judicial watch" wants a thorough scrub. >> it is very concise search they must do. they could do it in two weeks. this is the state department's own system. the idea that they would not actually search their own server for a request under freedom of information act is astonishing. >> reporter: now the state department argued this request was basically burdensome. they said it would set a bad precedent going forward for other agencies is. david, melissa, the judge wants a status update, five, six weeks, time, by september 22nd. david: the word obstruction comes to mind. melissa: right. david: that is just me. blake, thank you very much. melissa. melissa: here is fred barnes to react, "the weekly standard" executive editor. he is also a fox news contributor. it was too burdensome for them to search their own server? >> look i agree obstruction came to my mind too.

look, we know what hillary really thought after the benghazi attacks from the emails she sent her daughter and from this phone conversation she had with an ehe egyptian official. she knew this story a video caused these attacks, anti-islam video was not the real reason. that wasn't it at all. it was al qaeda attacking. that is not the story the administration wanted out. she joined in with this video, and i suspect we'll see more of that. of what she really thought and really knew what happened in these further. mails, which, of course should have been released in the first place. shouldn't take "judicial watch." look, the state department was just trying to protect hillary clinton and they did it in a very unprofessional way. melissa: no. it is amazing. meanwhile the president versus the senate majority leader, after very tense phone call between president trump and senator mcconnell, the

president was asked earlier today if the majority leader should resign. take a listen to his response. >> if he doesn't get repeal and replace done, if he doesn't get taxes done, meaning cuts and reform, and if he doesn't get a very easy one to get done, infrastructure, if he doesn't get them done, then you can ask me that question. melissa: i mean, mitch mcconnell is turning into this week's pinata but i have so little sympathy like so many of our viewers out there i think, because, this is like, if it is too much to expect for them to get repeal and replace done, then why did they campaign on it for seven years? if it is too high an expectation as he said? his tweet, the president's tweet gets me, mitch, get back to work and put repeal and replace tax reform and cuts and a great infrastructure bill on my desk for signing. you can do it! talk about patronizing. i love it. i'm annoyed. >> i don't love it at all. i think president's not helping

at all. melissa: really? >> no, of course, what did president trump do, who did he win over, who did even try to win over in serious way for the senate health care bill that failed on mccain's vote. melissa: so it is his fault? >> well, no. i'm saying he didn't do anything to help. i'm not blaming him for it. melissa: he twisted arms. he brought people over. >> that doesn't work? i mean you invite 49 people over for lunch. melissa: what do you want him to do? >> i want him to, get lisa murkowski and susan collins, get them privately say, look, what are your objections? i want to hear you first. then i will tell you what i'm going to do for you. you negotiate. he didn't negotiate. melissa: why didn't mitch mcconnell do that? isn't that his whole job? >> well, i mean, i'm sure mitch mcconnell did, but the president can offer a lot more. you know who did this

frequently? ronald reagan did it. here is what i'm going to do for you. and trump didn't do that. look the truth is, he was a great negotiator in real estate deals but that doesn't work in washington. and he has failed at it -- melissa: fred, from outside the beltway this is what it looks to the rest of us. >> all right. melissa: the problem these people are protecting their turf. that they're all invested in keeping the swamp full to the top, and they don't want it drained, all their livelihoods, whether republicans or democrats depend on it. they're working together to move very slowly like a bunch of swamp creatures under the water, not get it out of the way. that is what it looks to people on the outside. where am i going, fred? i love you to death, by the way. >> i understand why they feel that way but you have to remember republicans have a very narrow margin in the senate. and democrats are completely united. why are they united? they are united because of donald trump.

and that, look, so far that has worked because republicans can only get 49 of 52 senators. now does that mean all these republican senators are trying to prevent the swamp from being drained? i don't think so. melissa: really? i feel like they're united in waste, fraud and abuse. they're like graft capital of the world. you go to washington, there is all these buildings. they spend all this money. all these luxury apartments. all on our tax dollars. fred, i'm too cynical, huh? >> now look, washington is a swamp, there is no question about that. i have lived here my whole life. you know what? this is one of the most pros president, wealthy areas in the entire world. melissa: yeah. >> their lobbyists, government contractors, bureaucrats actually get paid pretty well too. melissa: right. >> blaming it on, blaming this on mitch mcconnell and republicans now, i think it is the wrong tact to take.

melissa: fred barnes, i love you. you're the best. see you, my friend. david: harry reid was democratic senator and leader, of his party in the senate and he got stuff done. you don't like what he did but he got it done. we are expecting any moment this tape coming from bedminster, the new jersey white house. we'll play it as soon as it begins. privatizing the afghan war, have you heard about this? why the trump administration is weighing a unpresent didded plan to privatize the war in afghanistan. we'll talk about blackwater's erik prince, the man behind the proposal. melissa: detail threats from the rogue regime targeting u.s. territory in guam. we're going to talk to guam governor eddie galvo. coming up next. >> the fact when good men do

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david: president trump is holding a security briefing with the vice president and national security advisor and the chief of staff at the moment.

this is tape play back. let's listen in. >> we appreciate it. we're having a meeting with much larger group than this. this is the finals but we discussed many things. one of them obviously was north korea. we discussed venezuela. we discussed afghanistan and the middle east generally. we had some very good meetings. some very good ideas, some very good thoughts and a lot of decisions were made. this is very important day actually. made a lot of decisions. with that if you have any questions, yes? >> make any decision on afghanistan whether to -- >> we're getting close. we're getting very close. it is a very big decision for me. i took over a mess, and we're going to make it a lot less messy. but that has been a place, 17 years, our longest war i read in

one of your columns and frayingly it is going to be a decision that will be made very soon. >> do you have full confidence in international security advisors? >> yes i do, general mcmaster, i do. he is my friend and a very talented man. i like him and respect him. >> sir, why did you decide to announce the transgender ban reversal a couple weeks ago, are you betraying a community you pledged to support? >> i have great respect for the community. i think i have great support or had great support from that community. i got a lot of votes but the transgender in the military is working on it now. they're doing the work. it has been a very difficult situation. i think i'm doing a lot of people a favor by coming out and just saying it. as you know it has been complicated issue for the military. it is very confusing issue for the military. i think i'm doing the military a

great favor. >> mr. president, do you have any response to russian president telling 55 workers from our -- expelling workers from our embassy? >> no, i want to thank him. we're trying to cut down on payroll. as far as i'm concerned i thankful he let go a large number of people. now we have a smaller payroll. no real reason for them to go back. so i greatly appreciate the fact that they have been able to cut our payroll for the united states. we'll save a lot of money. >> mr. president, was it appropriate for the fbi to raid the home of paul manafort? >> i thought it was a very, very strong signal or whatever. i know mr. manafort, haven't spoken to him a long time but i know him. he was with the campaign as you know very short period of time. very short period of time. but i have known the man. i thought it was very you know, do that very seldom.

so i was surprised to see it. i was very, very surprised to see it. >> have you spoken to the fbi director bit? >> excuse me? >> have you spoken to the fbi director about it? >> no, i have not, i have not. to do that early in the morning whether or not it was appropriate you would have to ask them. i have always found paul manafort to be a very decent man and he is like a lot of other people, probably makes consultant fees from all over the place, who knows, i don't know. i thought this was a very, pretty tough stuff. >> mr. president -- >> to wake him up. perhaps his family was there. i think that is pretty tough stuff. >> speaking of the attorney general, how would you categorize your relationship with attorney general sessions? have you guys spoken about differences in the past. >> it is fine. it is what it is. it is fine. he is working hard on the border. i'm very proud of what we've done on the border. very proud of what general kelly has done on border. one of the reasons he is my chief of staff because he did such an outstanding job at the border.

we're down 78%. nobody thought -- in old days with other administrations if you were down 1% that was a big thing. we're down 78% at the border. i'm very proud of general kelly. he is now chief of staff, at the same time i'm very proud we've done last six months, supreme court, tremendous amounts of legislation that has been passed. we had 42, to 48 billions passed. not talking about executive orders. we had record-setting amounts regulations. a lot is statutory 90-day period you have to wait. another 90-day period you have to wait 30 days. much more is coming out. i believe in regulation. you have to have some regulation. we'll have a small percentage of regulation compared to what we have. business enthusiasm i think is

highest it has been in 18 years. unemployment is the lowest it has been in 18 years. the unemployment rate came out. lowest it has been in 18 years. with that being said we have companies moving into the night, foxconn. you saw two large auto companies moving back, probably going to michigan but they're negotiating with various states. we have had, we have done a lot in a short period of time. i'm proud of it. i think general kelly will be a fantastic chief of staff, however. >> mr. president will you increase u.s. military presence in asia? >> we are going to look what is happening in asia. we're looking at it right now. we're constantly looking at it. i don't like to signal what i'm going to be doing. we're certainly looking at it. obviously we're spending a lot of time looking at in particular north korea. and we are preparing for many different alternative events with north korea. he has disrespected our country greatly.

he has said things that are horrific. with me is not getting away with it. he got away with it for a long time between him and his family. he is not getting away with it. this is a whole new ballgame. he will not say those things and certainly not doing those things. i read about where in guam by august 15th. let's see what he does with guam. if he does something in guam, it will be an event the likes of which nobody has seen before, what will happen in north korea. >> when you say that, what do you mean? >> you'll see. you'll see. and he will see. he will see. that is not a dare. it is a statement. has nothing to do with dare. that is a statement. he is not going to go around threatening guam and will not threaten the night and he is not going to threaten japan, and he is not going to threaten south korea. no. that is not a dare. as you say. that is a statement of fact.

>> mr. president, can you talk about the nuclear posture and what your priorities are there? >> nuclear to me, number one, i would like to denuke the world. i know the president obama said global warming is the biggest threat. i totally disagree. i say that it is a simple one, nuclear is our greatest threat worldwide. not even a question. not even close. so i would like to denuke the world. i would like russia and the night and china and pakistan and many other countries that have nuclear weapons get rid of them, but until such time as they do, we will be the most powerful nuclear nation on earth, by far. the first order i gave to my generals as you know, you know, mike, my first order was i want this, our nuclear arsenal, to be the biggest and the finest in the world. we spent a lot of money, a lot of time and a lot of effort. and it is in tiptop.

and getting better, and getting stronger. and until such time as this scourge disappears, we will be so much better and so much stronger than anybody else. and nobody, including north korea will be threatening us with anything. >> sir, what specifically have you changed in the nuclear arsenal? the reason i ask it, that a lot of experts yesterday in response to your tweets said modernizing the arsenal takes many years. it can't be done in six months. it's a long process can only be done. >> we have done a lot of modernization and renovation and we have it in very good shape. it will be in much better shape next six months to a year. very important thing. actually it was first military, very important to me. as you know i did extremely well with the military vote, mike and i. but, we are, my first order was, we have to do the military. before we do the military per se we're going to do the nuclear.

we are in very strong shape. we'll be increasing our budget by many billions of dollars because of north korea and other reasons having to do with the anti-missile. so we are going to be increasing our budget by many billions of dollars. we'll probably be able to report that over the next week. as you know we reduced it by 5%. i decided i don't want that. we'll increase the ant he at this missiles by a substantial amount of billions of dollars. >> mr. president, can you share talks about iran on nuclear deal and whether you feel like they are in compliance or will be in compliance? >> i don't think iran is in compliance. we wrote them a very tough letter, as you know to the congress. i personally don't think they're in compliance but we have time. and we're going to see. we also put down a lot of defaults or potential default situations. i don't think they're living up to the spirit of the agreement. president obama in his wisdom

gave them $150 billion. he gave them 1.billion dollars in cash which is a hard one to figure. but that was his decision. i think it is a horrible agreement. but they are not in compliance with the agreement. they are certainly not in the spirit of the agreement in compliance. and, i think you'll see some very strong things taking place if they don't get themselves in compliance. but i do not believe they are in compliance right now. >> mr. president, what is the latest on the leak investigation that the attorney general announced late last weekend? is there any separate investigation that you're -- >> we're always looking. you have two leaks. the leaks coming out of intelligence and various departments having to do with syria, having to do with all sorts of different places. having to do frankly with north korea. those are very serious. you have leaks where people want to love me and they're all fighting for love. those are not very important but certainly we don't like them. those are little inner white house leaks.

they're not very important but actually i'm somewhat honored by them. but the important leaks to me and leaks that the attorney general is looking at very strongly, are the leaks coming out of intelligence. we have to stop them for the security and national security of our country. >> mr. president, notes on the special counsel bob mueller, can you -- >> we're working with him. we have a situation which is very unusual. everybody said there is no collusion. you look at counsels that come in. we have a senate hearing. we judiciary, we have intelligence, we have a house hearing everybody walks out even the enemies, there is no collusion, there is no collusion. so they're investigating something that never happened. there was no collusion between us and russia. in fact the opposite. russia spent a lot of money on fighting me. if you think about it, i want a strong military. you see our budget is up, it

will be hundreds of billions of dollars soon, our military budget. russia doesn't like that. hillary was going to cut the budget substantially, the military budget. russia is very important -- oil. oil and gas. we are now an exporter because of an incredible six months that i have, an exporter of oil and gas. that is bad for russia. i always say, i don't think russia want me because i want a strong military and i want low energy prices. energy is a disaster, low energy prices is a disaster for russia. additionally seems that russia spent a lot of money on the false report, that was russian money. i think it was democrat money too. you could say that was collusion. plus democrats colluded on ukraine. so they colluded. when you get down to it, why isn't the fbi looking at the dnc server? you have a server that they refuse, the democrats refuse to give to the fbi.

now i don't know how the fbi can investigate something if the dnc, the democrats refuse to give the server. so we have an investigation of something that never took place. and all i say is, work with them. this is an event that never took place. now, as far as somebody elsewhere did they file the right papers, did they forget to file a paper, i guarranty you, if you went around looked at everybody that made a speech or whatever, these people did, that is up to them. did they do something wrong because they didn't file the right document or whatever? perhaps. you have to look at them. i guarranty you this, probably a lot of people in washington did the same thing. >> mr. president, given your harsh criticism of democrats now, how will you bring them in on infrastructure? >> we'll have to see. maybe we'll bring them in, maybe not. i think infrastructure bill will be bipartisan. i may have more support from the democrats. i want a very strong infrastructure bill. we as of this moment spent

$6 trillion in the middle east. when i say spent, we've wasted $6 trillion in the middle east. yet we can't fix our roads and our bridges and our schools and our airports. i think that is a very sad situation. so i'm very strong on infrastructure. and a lot of republicans are but i know a lot of democrats are also. i think that will work out. i think it will work out very well. >> mr. president, you sought or thought about or credit leading to dismissal of the special counsel? is there anything bob mueller could do to send you that direction? >> you i haven't been giving any thought. i've been reading from you people. no i'm not dismissing anybody. i want them to get on with the task but i want the senate and house come out with their findings. judging from the people leaving the meetings, leaks, they leave meetings all the time, say, no we haven't found any collusion. there is no collusion. you know why? i don't speak to russians. i won because i suppose i was much better candidate than her. i won because he went to

wisconsin, i went to michigan. i won pennsylvania. i fought a smart battle. that is why i win. i didn't win because of russia. russia had nothing to do with me winning. we had a great team. i guess i did a good job. you know what honestly? they spent much more money than i did by a lot, you know that. they spent a lot more money and honestly they did not do a very good job of campaigning. >> one more question about senate leader mcconnell. you talked about him outside a little earlier. have you reached out since your phone call yesterday? >> no. >> have you given any consideration, asking his wife, your transportation secretary to help bridge -- >> elaine is doing very good job. we're proud of elaine as doing very good job as secretary of transportation, mitch's wife. i'm disappointed in mitch but if he gets bills passed i will be happy and admit it. repeal and replacement of

obamacare should have taken place, should have been on my desk virtually first week or first day. i have been hearing seven years. repeal and replace should have taken place. the tax bill, tax cuts, tax reform, hopefully they get that done. i hope they get it done. the other thing would be the infrastructure bill. in addition to that, we passed a lot of things. we passed accountability with the va. we passed a lot. we're doing a lot of great work at the va. we're doing a lot of great work all over. look what is happening with the coal industry. i was in west virginia making a speech. they are doing great as a state. the great governor of west virginia, jim, who you saw, he just became a republican. he left. first time in many years that has happened. he left the democratic party and became a republican. it is a great moment of the hasn't happened in many years.

we're very happy with what happened. we think it is an incredible six months. we've done a lot of you look at what is going on with the economy. you look at enthusiasm of businesses, you saw two big car companies. last week foxconn, they make biggest in world, they are coming to wisconsin with an unbelievable plan, like we've never seen before. and i actually said to tim cook of apple, i said, you know tim, i won't consider myself successful as president unless i see you start building those big, beautiful plants you have all over china, you build them in united states, and he is going to do that. >> you were critical of the intelligence up to iraq war. >> you know it is different intelligence, i have mike

pompeo, i have great confidence in him, that does not mean his confidence in his predecessor. although he did say good things about me. i will say, i have trum tes confidence in mike pompeo, we have people, the new head of the fbi, has done a great service for this country, i think that christopher will do a fantastic job, as head of fbi. so, i have no body has greater respect for intelligence than donald trump, you have to have the right leaders. we have great leaders right now, you can look at intelligence over the years, it of the intelligence that got people to make one of the worst decisions made in history of our country going into iraq. they said there were no -- you look at this. it ended up there were no weapons of mass destruction. they said, if you listen to

them, weapons of mass destruction were all over the place, they were not there, that was intelligence. i have great respect for intelligence as lead by the people i have in charge now, we have great people, i think it is going to lead to us trem doubt victories. >> what is that intelligence telling but north korea. >> telling me a lot of things, you will find about before anyone el, with the leaks, we have to stop the leaks, the leaks are very dangerous for our country. i think wooer -- with the leadership we have right now, hopefully a very successful 8 years. we have a lot to straighten out. i will say getting 15 to 0 vote

at united nations from security council. that is something that very few presidents would have been able to get, i have great respect for the fact that china and russia went along with it. that was a tremendous day for the united states i think it will have a strong impact on the -- i don't know if it will be the end all, but it will have a big impact on north korea, and what they are doing, thank you all very much. >> thank you very much. appreciate it. david: talk about covering waterfront. everything from north korea to afghanistan, on afghanistan president saying he and pentagon are close to an agreement, on what to do in afghanistan. here now is erik prince, thank you. >> all generals have said we're not winning in afghanistan, despite the lives and dollars

spent, why would a private security system do better. >> this is a role for contractors, i call for a rationalization of all contractors, 26,000, almost 9,000 u.s. troops, instead of all that number and all that spend, i am calling for a clean sheet review. just doing the basics at the bottom of the afghan security forces, strengthening at battalion level, where u.s. has not been, giving air support and governance support. david: not a takeover but a support of the military in afghanistan. are the generals in agreement with you at least some. >> the thing, whether you are left, right or center in america, everyone would like to see the a afghan war end. this say path for that u.s. military, more we have done with a conventional approach, the more we go backwards.

remember, a couple cia officers, that decimated taliban in a few months after 9/11. and as you have gone conventional. we have gone backward, this will bring the spark and structural strength back to the afghan forcis -- david: we're very short on time, i have a son who spend a year in afghanistan, i didn't' him to be there he did his duty, i don't want him to go back, there are enough private contractors? >> there are thousands many of which that have been ca contactg me, saying we like your plan, if you do thisy we want to go back, this is the off-ramp for america's longest war, if not. pentagon can continue on with this for years and years, i, as a father as well don't top accept that.

david: erik prince thank you. >> thank you. melissa: that was jam-packed from the president, doubling down on north korea. david: "risk & reward" starts right now. >> maybe it wasn't tough enough, they have been doing this to our country for many years, it's about time someone stuck up for the people of this country, north korea better get their act together, or they will be in trouble like a few nations ever have been in trouble in this world. liz: president trump finishing remarks about situation in north korea, dow dropping 205, continuing the plunge after hours, nasdaq down 2% as north korea said it is days away from the plan to fire 4 missiles into the waters near the u.s. pacific territory of guam. president trump intensifying his warnings as military threats