the world of soccer. >> arsenal versus lies sister. the -- leister. stuart: he is a arsenal fan. connell mcshane, in for neil. connell: pretty big soccer fan. i saw work for free. i didn't have the sound on. couldn't be varney. that was a good story. a good story. thank you, stuart, ashley. welcome to "cavuto: coast to coast" everybody. i'm connell mack -- mcshane in for neil. tensions are high but talks are happening. senior u.s. diplomat has been engaging and continues to engage in back channel talks with north korea. comes as president trump triples down on rhetoric, warning that the u.s. is lock and loaded. we start off with u.n. spokesman ric grenell who joins us right

now. on these talks, senior diplomat, rick, somebody speaking on the north korean side, back channel talks they tell us continue to take place. surprising encouraging anything we should take away from that. >> it is not surprising. it is encouraging. we've had six-party tax going on a long time. we've been trying to talk to the north koreans. i think the bigger diplomatic talks are with china. they hold all the keys. we're making progress although there needs to be more action. one of the problems, connell, the chinese who are supposed to implement past sanctions and new sanctions, they haven't done a good job of implementing those sanctions even though they raise their hand inside of the security council to go along with that we need to pressure china and watch. with have the program, the psi,

which is in japan, south korea and united states and others. we watch all of the ships and flights going in and out of north korea. we have stop. we have authority through the security council, stop, board those. that needs to be aggressive right now. we have to shut down any trade that violates the u.n. sanctions. really important. connell: to follow up on those points in couple different ways, with china, you mentioned the word trade there. you talk about violation of the u.n. security councils. i wonder how important using trade, carrot-and-stick approach, something the president mentioned in the past seems to have gotten away from this particular conflict. can that be effective with the chinese? how can we put pressure on them? >> it is such a good question. i think it goes to the heart what really the solution is. in the past we made moral arguments with countries like china and russia. follow the sanctions and do this because it is the right thing to do. president how many however said

something differently, showed us he is willing to mix trade policy with foreign policy. he told the chinese specifically early on this year that if irwilling to help us on north korea you will get a better trade policy. intermingling those policies is exactly what diplomats want to see because we bring all of the tools from the u.s. government into the debate, and into the negotiations. so i'm hopeful that we have commerce, agriculture, energy, all of the departments within the u.s. government who have power, bilaterally with china, are pressuring china. connell: i would think, correct me if i'm wrong, i would think the chinese need to believe the president is serious about military action if they're going to move, no matter what we say about trade. do you think xi xinping thinks donald trump is serious about reacting or preemptively reacting with north korea? >> i think so.

what you hit on a military threat and a credible military threat. it is very hard for diplomats to sit at table trying to negotiate a settlement without behind us a credible threat of military action. what donald trump is giving us is a very credible threat. we see what happened in syria and afghanistan. make no mistake, japan and south korea, our allies, know when donald trump says we will react, we will protect, they know that is a good thing. the chinese also know that. connell: on the issue of preemption i think it is interesting we have expert after expert come in here this week, not everybody, but i think a lot of coming in saying there is part of that that isn't so viable in their view because you would have to put up with so many civilian deaths in places like south korea and potentially in japan the threat is credible with that.

>> diplomats like me trying to solve this without military action. diplomats around the world need to be in per one issue needs to be north korea. pressuring companies in the middle east and africa to stop doing trade with north korea. we have to implement sanctions. i want diplomats going up to the very enand never stopping. the president and nsc decide to transfer the case with the pentagon. connell: we're heading into a weaken that could be quite tense. this week has been quite tense. we you think there is deadline, art firm, next tuesday, the 15th, mentioned as possible attack on guam or message to guam, put it by the north koreans. what is your sense you think will happen? >> no hose. i think we still have room for diplomacy. what i would like to see us to watch very closely if the

chinese stop doing trade, if they shut it down, if we're getting action. if we're not getting action by end of this weekend from china, serious action, i think we should go back to the u.n., try for oil sanctions. we should bilaterally, unilaterally implement banking sanctions. i know that is painful for the financial community and for people who shop and buy chinese products, the price will go up. but i think it is too serious to not. connell: banking sanctions -- >> unilaterally. connell: from the u.s. against, that would be, how would that work? >> well look, again i don't want to be too flippant here, it is not without pain but it is serious enough situation where i think we say to china, either you have access to the u.s. banking system, either you're going to work with us, or you're going to work with north korea. we want to see you shut it down immediately. the chinese really do have power. we have power with the chinese. we haven't implemented the serious oil sanctions at the

u.n. the chinese tossed them out of the u.n. resolution. connell: right. >> this last go round. they didn't want to see the oil sanctions. i believe we should have stuck them in there. we should have negotiated harder to have oil sanctions there. since we don't have them, let's give the chinese a little more time to see if they're acting. if they're not acting fast in this situation, then i think we should implement banking sanctions, call another security council meeting and try for oil sanctions. connell: you're right, that would be serious but these are serious times. ric, thanks for starting us off. we always appreciate your expertise, ric grenell. china, let's talk more about this is a tipping point been reached or is china tipping its hand? there is op-ed in state-run newspaper that china should stay neutral if north korea would fire first. but then it goes on to say if u.s. and south korea carry out

strikes and three to overthrow the north korean regime, change the political pattern of the korean peninsula, china will prevent them from doing so. we have a retired four-star navy admiral robert matter is next. the idea that chinese would get involved if we fired first. what do you make of that? >> the united states has been consistent that we'll explore and exhaust all diplomatic effort first. i would not anticipate the united states initiating military action unilaterally. connell: so your interpretation of everything that president trump has said so far this week, obviously some has been very aggressive from fire and fury on to the tweets this morning to the comments in new jersey yesterday, everything is a reaction to the north koreans doing something first and if so, what is that something? what's the line? is it an actual attack on a u.s. territory or is firing a missile near a territory like guam enough to it elicit the

reaction? >> well i think it would be military action. the definition of that is pretty broad these days. connell: yeah. >> if one fires a missile at a u.s. territory without us waiting to see if it is going to hit or not and we have to take defensive actions on our own, in my view that is military action on the part of north korea. connell: from what i understand, again i'm sure you know more, when a missile is fired we can pretty much tell with our technology where it is headed? so if we can estimate that and we can tell it is 20 miles outside of guam, which is what the north koreans have been speculating about, is that enough? is that the red line? i wasn't clear yesterday, i think a lot of people weren't clear exactly what the president meant? >> i don't want to get into a fine definition after fine red line. connell: okay. >> i think there has been enough talk about red lines over the last 10 years or so. the reality is that this country

and certainly our military want to exhaust allp diplomatic efforts to resolve this issue without using military force. connell: maybe you heard part of our previous conversation which kind of was related to this in terms of the u.s. trying its best to pressure china. do you think that will work? if so, what do you think is the best way to do it? is it additional sanctions? is it hitting them with trade or carrot-and-stick approach with trade? how do we put pressure on china to play a bigger role, more effective role? >> i think the real secret here is not trying to put pressure on china, point out to china this is in their interests. reality if you take this thing to the final step, if we allow north korea to have nuclear weapons, if you were japan wouldn't you want nuclear weapons? what about south korea? those steps would not be in china's interests either.

so there are very significant vested interests on the part of the chinese. i think the emphasis should be on a diplomatic solution on this very difficult situation. connell: i will ask the final question i asked ric, how do you think this plays out, what do you see happening this weekend? >> well the way i see this thing hopefully resolving itself is for the chinese to talk straight with north korea, and trying to get this thing resolved diplomatically. that is in everyone's interests and i would argue it is in north korea's interests. connell: admiral matter, thank you, sir. china seems to be a key player in all of this. with the markets we've been talking all week if anything we're seeing a little bit of a bounce today which is interesting. the markets this week, are to the downside. those are the overall numbers that you're looking at. today, we're buying the dip a bit. so we'll see what that means,

coming up. also, straight ahead, are senator mcconnell's days leader in the senate numbered? president trump getting tough. other republicans falling suit. the fallout there as the feud heats up after this. ♪ 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. ♪

the dinosaurs' extinction... got you outnumbered.

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of the book, another warning shot fired by president trump at the senate majority leader mitch mcconnell, fellow republican, leaving the door open whether he maybe should step down, when he was asked about it yesterday. so where we are on all of this, from "politico" is with us. america rising pac, executive director alex smith is with us, independent women's forum senior policy with us patrice luca is with us. let me start with rachel on this. can you explain, is there any scenario you see all of this makes sense from president trump's point of view politically, the back and forth within his own party with the majority leader? >> i would say the general consensus coming from the hill they say no, they feel trump is shooting himself in the foot on this. on one hand he is frustrated, a lot of republicans are across the country are furious at senate pubs failing to live up to the seven-year campaign

promise to repeal obamacare. on the other hand strategically if trump has to get his agenda done he needs to get it through congress and that relationship exactly. connell: patrice, what rachelle says he is shooting him is in the foot. president is hurting himself depends where you check on twitter, but where is your opinion on this. >> his base supporters will continue to support him. americans asking for repeal and replace, yeah he is holding feet to fire of members of congress who don't have enough skin in the game. i think he tweeted about kind of ending the congressional exemption and insuring that congress and their staff actually, who have obamacare have to feel the same pain that regular americans who do have obamacare feel. connell: right. >> so he is just trying to exert himself or assert himself as the leader of the republican party and the conservative movement. connell: if you think about it, in a lot of ways could you argue

that both of are you are right. we see it all the time, people tweeting, we can't stand mitch mcconnell. can't stand paul ryan, you get them, president trump but to the first point made by rachel, alex, he does need mitch mcconnell to get something done. which outweighs the other in the way this all plays out? >> i think it is important to maintain some perspective here. it is august recess. not a lot of other things are going on other than north korea. this is the big political story to talk about, come september this isn't what we'll be talking about mainly because the president and mitch mcconnell aren't that far apart. they both want a pass obamacare replace and repeal. they want to accomplish tax reform. they want to get to infrastructure. they're really not that far apart. i think what is bigger story here, and what this is all papering over is the fact that there are 46 democratic senators, 10 whom come from states that donald trump won, five of which by double digits, that refuse to come to the

table. they're going home during this august recess. they're talking the talk. they're saying they're looking forward to working with president trump. that they really do want to get to the table, yet they're voting in lockstep with chuck schumer. connell: right. >> that is the real intransigence. connell: you think the president can work with mcconnell? that is your point, they can work together to get stuff through? >> absolutely. connell: patrice, do you agree with that or these guys not like each other period? >> i agree with alex. this is a pretty tough time, i'm sure the president is upset or disappointed that congress is out on august recess they said they would stay in for a little bit longer, gaveled out early, considering list of things that needs to get done is so high. let me add to the list, we still have a budget that needs to be passed and debt ceiling. connell: the budget is almost a precursor, get that, avoid a government shut down, otherwise we don't get to tax reform what most of our views tell us they want to see.

that still seems like really big-time long shot, unless you disagree i don't know. way i see it a big-time long shot to get done by end of this year, at best next year early on taxes. what do you think? >> i tax reform is republicans redemption after failing to repeal obamacare. the reason why you see this back and forth, should trump put pressure on senate or move on to work with him on tax reform, focus on that, i think effectiveness of this machiavellian approach he has taken to the hill to exert pressure on them is fading a little bit, right? he did this in the house. i think one reason why the house actually got its obamacare repeal and replacement done is because of trump's pressure. we're talking about the senate. they are way more independent. they don't like to be pressured. they don't like to feel they're being bullied. connell: he doesn't like it, being mcconnell, he doesn't like it, what would he say? >> he is ready to move on to tax reform.

they tried a whole bunch of different things. only thing they can agree on they don't like obamacare. they can't figure out how to replace this thing. if you talk to mcconnell and put that aside and work on tax reform. connell: does that hurt the president, on tax reform, if he gets done, i will really like him. if he get this is done, he is my guy. >> tax reform would be huge. there would be no, a lot of the bad feelings in the republican party right now, you know against each other, this inner party war would evaporate if they get tax reform done. that would be huge. connell: i know it is looking backward, alex, maybe they should have started with that, maybe if they passed a tax cut or tax reform in the beginning, i know it couldn't be large with the health care component. hindsight is 20 be -- 20/20, some people think. what do you think? >> democrats took years to pass health care reform.

we knew this would be complex process. in terms of tax reform polls out there show, majority of americans, majority of democrats want them to work with the president on tax reform. and so i think that these senate democrats are really going to have some angry voters to answer for, answer to when they go back to their districts or their states when they can't provide a single answer why it is they won't work with the president on key matters they really care about. connell: sounds like all three of you are telling us to calm down with the feud. patrice, you want to finish this off? you don't think for example, if we go back to ask the president the question as he said down the line there is any chance mitch mcconnell is out as majority leader? that is just not going to happen? >> i think so. when congress comes back into session they actually deliver a budget, they deliver a debt ceiling raise and deliver the instructions for tax reform i think the president would be placated. connell: that is what he said. that is what he said.

only come back and ask him if it doesn't get done. anyway, boy something to talk abouts awe said in the summer, but that north korea is pretty big thing as well. thanks to all three of you, appreciate it. >> thank you. connell: the story that has blown up is the google story, this diversity controversy. the latest that got critics eyeing the whole tech world is coming up next. there was an interesting development on this just last night. speaking of tech, amazon, is amazon going to be the company that saves you from everything, including excessive fees you have to buy when buying a ticket to a big he devent? amazon continues to get into everything they can including this. we'll talk about it in just a moment. ♪ at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value.

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connell: business alert, the market is very interesting to watch today, the old buy on the dip. we're up a little bit. still down for the week if you look at numbers with north korea. there is question about strategy. whether it shakes things up even

more, or buying when you get a little bit of a dip when you go from here. nicole petallides,. >> we're taking a look at stocks right now. we're seeing the dow up .2 of 1%. s&p 500 up a quarter of 1% at 12.27 p.m. we had a three-day selloff. stocks are to theside. for the week we note we're down a percent for the dow. the dow ask on worst pace for early april. the stock market is doing particularly well. the dow, for example, up 10%. nasdaq is up 15% and also the s&p 500 up almost 9%. of the today much like strategy investors used cautiously over the last year, buy a dip, it's a strategy that worked well for more than a year. they're doing much of the same

today. over all on earnings season, it was very good earnings season, 91% of companies have reported, 73% beat earnings per share. if you take out tech, that was better, with 88% beating earnings per share. gold an treasurys, it was interesting after gold traded up $27 last two trading days it is gaining again. the 10-year bond yield with a six-week low, that is still moving lower the 10-year bond yield, 2.19% right now. back to you. connell: we see north korea, bond market and gold. stocks are interesting, as you say buying on this dip. opportunity, rather than panic the nicole, thanks. let's bo -- go to google story this week. google canceled what was supposed to be all-staff diversity meeting. the reason it canceled the meeting it says of safety concerns after employees names

with published online. the tech industry as a whole has been faces pressure to diversify. we heard more about it because of the memo written by a google employee you see on the screen after he was fired earlier this week. angela is down on d.c., you say, angela, this firing of this guy went too far? >> well, google did by firing this engineer they proved him exactly right. his memo was about google being idealogical echo chamber. anyone who tried to challenge the status quo would just be dismissed. connell: right. >> so they actually proved him right by firing him. google, a company that has been historically a company all about innovation, that is a huge step backwards. connell: i have a question about the meeting. jessica, what sure your meeting whether or not he should be fired? >> i don't think he should be fired. everyone should read david

brooks column on this issue. it is free speech and diversity, what google is supposed to be all about. that town hall i don't know wht security concerns but they -- connell: they put people's names on line. >> milo did. he is always so helpful. connell: i guess they say, they say there were safety concerns about their employees but you know, angela, what do you think? i think, what jessica is getting at as well, there has to be some sort of irony or some other word for this you have diversity meeting s that for me, jessica? >> no. neil: you have a diversity meeting, all of sudden you cancel the diversity meeting sounds like there is too much diversity of opinion, sound like you don't like everyone's opinion on it. that is way it comes across. that is weird. >> that is hypocrisy and double standard for conservatives working in tech. the memo said men and women's brains are different. male and female brain are not exactly the same.

he never said men and women are unequal. he never said anything of that sort. if you read through the memo, you can scan through it after hearing all the controversy, my question, where is the lie? where is he saying something that is not correct. men and women are equal but we're biologically different. >> fields that men and women are better in and that is 80% male and 20% female. connell: which is an issue we can talk about. >> i think it is severe loss we don't have the conversation about women in tech. connell: that may not be biological by the way. you can disagree, my point you can disagree with the guy what he says in the memo. >> absolutely. but have the conversation. connell: in fact it should spark a conversation. >> a lot of female employees, polling actually overwhelmingly google employees didn't want this guy to be fired. there was another poll saying they did and they are scared, uncomfortable situation. what really hurts here is the women, that were singled out.

they're already going into this male dominated environment, having their wits about them and be as competent, perform at higher level when they're often pushed into higher male environments to do that. and now they have this conversation. connell: do you have any idea yourself why those numbers are so skewed in that direction? >> 80/20? i think a lot has to do how we teach stem in this country, engineering and mathematics. connell: mat, right. >> that is not correct. connell: it is bigger, systemic education reform. >> this isn't left or right issue. connell: that is the conversation. that may or may not be right. that is an opinion on it. maybe some people do think it is biological. whether they're right or wrong, angela, that is the discussion we could have had, we're having it, but could have had it at google. maybe at some point they will. >> exactly. connell: what do you think how skewed the numbers are between men and women in the technology industry? >> you have to look at the pool

of candidates for these jobs who are both interested and qualified. when you look at male and female people as young as two months old, machine gravitating towards objects and women gravitating more towards people. why most nurses are women. most kindergarten teachers are women. they're in high human contact jobs. why more men are in things like drilling for oil and things that deal with objects and it is not wrong. >> i'm not about to go all, we should have gender-neutral toys and thinks like that but i think that movement has a point. you already know at two months. what are toys being given to little boys and little girls? what are systemic challenges facing young women in entering fees fields that show up. connell: google could have had at this meeting last night. >> i believe they will eventually. i don't know if the ceo will be fired in the interim. >> no matter what is causing this -- connell: we have to go, guys. thank you so much. appreciate it. >> thanks, connell. connell: angela, good to see you as well. we'll talk a little bit more

next hour. meantime, "game of thrones," held for ransom. how about this hbo story. there are signs that hbo may be open to negotiating with hackers which some say is never a good idea. we have a cyber pro coming up what that means. president trump's new comments about robert mueller could have trump backers breathing easier today, the reason for that. the details on that coming up. ♪ 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

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connell: we have a sports related story that came in to us, and it is big one. nfl is is suspending dan last cowboys running back eseek cool elliot, suspending him six games without pay. there were domestic violence allegations surrounding mr. elliot. this will be a big story and remember nfl teams play 16 games.

if he is suspended six of them that will have a effect on dallas cowboys season. that is domestic violence issue is surrounding not only ezekiel elliot and but nfl. they clearly thought this was necessary. is is out six of 16 games. snap shares all-time low, slowing revenue and user growth in the second quarter. losses there quadrupled compared to a year ago. snap is down today. amazon, it continues on the path it is on to take over the world. looking to get into the ticket selling business. what does that mean? maybe we'll pay lower fees on tickets we'll buy in other places, or maybe not. jeff flock joining from us the streets of chicago with more on amazon. hey, jeff. >> reporter: tell you i have a good one for you, connell. if you think ticketmaster which is the big player in this market

is going to roll over, you would be wrong. since we began our reports this morning on fox business, fox news channel, the mark marquee changed from advertising indina menzel, took that and and put up live nation and msg presents. that is the parent company of ticketmaster a big player in this. if you think they're rolling over for amazon. they sponsored this event. they spend a lot of money in sponsorships. amazon will have to pony up big time in order to do that. reuters is reporting that amazon wants to get into the ticket business. if you look at amazon's stock compared to ticketmaster or you i should say live nation stock, live nation released their financials yesterday, huge quarter for them. revenue, 2.28 billion, a half billion more than expected. growth of revenue by 30%.

income by 50%. this is a huge market. people now, you know we talked about retail ice age, people now instead of buying a new shirt or new suit or whatever, they want to buy experiences, like sporting events, like theater, live theater, live music. this is where these guys play. an now, as you report, amazon would like to get into it. the way they do business they tend to drive prices down they want to be very competitive and bring people into amazon prime. this would be a great way to get more people into that. already amazon prime has almost as many subscribers as espn for god's sakes. they are doing great but would like to do better. connell: you're right, they include all these things in the prime subscription. your question is the right one, how much will it cost them, and will the costs make sense. could be good for consumers. >> jeff bezos willing to spend money to make money. connell: always has been from day one at amazon. thank you, jeff flock.

new reports meantime revealing somebody inside of hbo offered 250 grand as a quote, unquote bounty payment to hackers. hbo hacking story? cyber expert paul viola joins us now. this idea of offering money to hackers, almost like hey don't negotiate with terrorists. that is the saying we always hear. this does not seem like a good idea, does it? >> connell, it is ridiculous thing to do, for a company as well-organized as hbo, for them to take a stab at this it's ridiculous. and the hacks are exemplifying that poor decision by shooting this back out, if to say to the general public, are you kidding me? this 250,000, we'll not negotiate with you. connell: let me explain the story. hbo gets hacked. the hackers reportedly want $6 million, something in the neighborhood. >> right. connell: somebody at hbo, an

employee says we'll give you 250 grand for this bug bounty program. they bring in tech professionals as part of this program, they pay them to find vulnerabilities. so they say they were just trying to buy themselves some time. is any of that maybe legitimate? that you have to do something if you're one of these companies or no? >> connell, really, i just shake my head when i hear that you are not going to break into the encryption that this group has to lock down hbo. you want to start playing a game, minute by minute, hour by hour, that that's costing you money? you think they will negotiate with you. to me it is an absurd way to make a decision, hackers of this magnitude are going to negotiate with you. i can't believe they even did it. connell: the key, paul is prevention, if you're not going to negotiate. >> the connell, the key is prevention. you and i talked about before. this came from inside job. this is multiple point access. in all likelihood advanced phishing campaign. preemptive training to employees

to identify emails to open, not to open is paramount. it is inexpensive. it can avoid this. most companies simply don't do it. that is their point of entry. connell: don't you need only one? say you have, most big companies have thousands, tens of thousands of employees, right? connell: you need one person half paying attention, don't you? is that all the guys need to get in with phishing emails? >> exactly, connell, that is the point. once they get in they could horizontal, called island-hopping. they get access and spreads throughout the organization. you can prevent this employees can be taught red flags, that email doesn't look like, i need to challenge the email. you sent me email the i'm not sure that it came from connell. i call or text. you verify fine. if you don't i won't open. i won't expose contamination to my system. connell: usually address is is something ridiculous. if you hold your mouse, it is not real email address.

people are busy sometimes. they shouldn't click on something they shouldn't. only takes one. you're right, paul, keep them out. don't negotiate once they're in. >> absolutely. connell: good to talk to you. another paul, paul manafort, another story. could be changing the whole strategy in the russia investigation. how? we'll tell you, there are new details. we'll tell you about them coming up. president trump making important announcement of the fight against the opioid crisis. we'll talk about that when we come back. poor mouth breather. allergies? stuffy nose? can't sleep? take that. a breathe right nasal strip instantly opens your nose up to 38% more than allergy medicine alone. shut your mouth and say goodnight, mouthbreathers. breathe right.

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>> you i haven't given it any thought. i read from you people. he you am going to dismiss him. i'm not dismissing anybody. there is no collusion. you know why? i don't speak to russians. i won because i suppose i was a much better candidate than her. connell: president trump's comments in knew jerusalem yesterday. that was in -- in new jersey. that was plans he has no plan to fire robert mueller. he is frustrated about the narrative in general. paul manafort's legal defense, we have break burman in from d.c. with the latest on that. what are we learning, break. >> reporter: in washington there

is law firm on every or the corner seems like. paul manafort is taking a change in representation, from wilmer heal, to another highly-respected firm. here is the rationale given by a spokesperson for manafort. i quote. wilmer hill is outstanding law firm, exactly what you want engaging with capital hill. miller is a specialized firm, expert in international tax. that is where seems the special prosecutor is putting resources and paul is adjusting accordingly. end quote. the heat was turned up on manafort, two, three weeks back at end of july, one of the d.c. suburbs, manafort's home after fbi agents raided that home after he had given testimony up here on capitol hill. president trump was asked about that yesterday in new jersey and says he was surpriserred to learn of it.

>> i thought it was very, have he strong signal or whatever. i was surprised to see it. i was very, very surprised to see it. >> reporter: the president's outside legal counsel, john dowd, has also questioned that fbi raid telling email to a "wall street journal" report, describing it as a gross abuse of the judicial process by the special counsel's office. connell. connell: blake burman there in d.c. one of the other things the president was talking about yesterday was the opioid crisis. in fact he declared that crisis a national emergency. >> the opioid crisis is an emergency. i'm saying officially right now it is an emergency. it's a national emergency. we're going to spend a lot of time, a lot of effort and a lot of money on the opioid crisis. we're going to draw it up and we're going to make it a national emergency.

connell: what does that mean? our friend dr. devi from nyu. >> great to see you too. connell: the fact it's a national emergency means more federal money, right? >> yes. connell: what does that mean. >> for treatment with addicts, people on the border of substance abuse. we should use some of that money to develop new treatment options. our current treatment options don't have the greatest success rate. there is a lot of relapses. if we could develop new drugs for addictions other preventions that could treat pain, that would be good. a lot of issues with the opioid epidemic relate to prescription medication. connell: it seems to the layman counterintuitive to develop more problems. to your point the drugs are the issue, you become addicted and can't got aoff those drugs. is there ways to make them less addictive. >> we have medications.

tylenol, anti-inflammatories they are not as effective for severe pain. there are other drugs in the pipeline. if we could develop something that doesn't kill people and not as addictive but treat pain that would- connell: is it red tape? >> sometimes funding. morphine has been around for send hetries. we see different variations of morphine, short are acting, longer acting. it is easier for pharmaceutical companies to rehash something that will sell than develop from scratch something new. connell: how much is prescription writing the problem? are doctors to blame for a lot of this. >> they are in part. some of that may originally because they didn't totally understand how to prescribe these medications or how harmful they were. now people do. connell: i was asking, is there more training we could do? is that somethings we could use federal money for? >> we could use more training and support doctors that say no.

couple weeks ago a physician was murdered for not prescribing opioid to a patient or maybe an addict. but it was opioids. another issue is long term addiction and treatment, what about in the short term, in terms of deaths? we antidote for opioid overdoses that lax sown. maybe they could get naxolne. connell: is that treatment available? >> if they give people naxalone they might give people more medications. we could save lives having that more available. if doctors prescribe it along with medication after surgery, et cetera that would be out there for people to use to save someone's life. connell: if nothing else this will put more attention on the problem which we all know it's a huge problem. we need to decide how to use

that money wisely i guess. dr. devi, we appreciate it. >> the united states is engaging in talks we learned from the associated press with north korea. back channel talks. positive sign, encouraging sign. we'll talk about that coming up. will the gop get tax cuts through and get them through this year? house ways and means chair kevin brady has an update on that when we come back. hour number two straight ahead. .

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. connell: we're into hour number two of "cavuto: coast-to-coast". we have developments coming into us, first of all on the news the united states is holding diplomatic talks with north korea. backchannel talks is what's being reported, and the report is they've been happening for several months and they continue to happen. president trump meantime threatening the north publicly once again, telling them in a tweet earlier today that the u.s. is, quote, locked and loaded. and secretary of state rex tillerson, national security adviser h.r. mcmaster, we've learned they are meeting today with the president at his golf course in bedminster, new jersey. some have wondered whether this national security team is really on the same page dealing with the growing north korean crisis. rebecca grant is with us so is former navy s.e.a.l. rebecca, first to you on the

question with mcmaster and tillerson sitting down with the president today. do you think the administration and all the senior officials are on the same page in dealing with north korea? >> yes, i do, absolutely. they briefed congress back in april so you can be sure the options are ready. what does locked and loaded mean? they've briefed the options, pacific fleet has ships in the right place. it means bombers are ready, the devil's own grim reaper and sister squadron are ready. there's no question they're on the same page. trump's war of words is what we need. in 1953 president eisenhowerer thre threatened to nuke them if they didn't go to the negotiating table. they're all on the same page, no question. connell: going highlight tweets from senator lindsey graham of south carolina. no huge fan all the time of

president trump, not afraid to be critical, but hawkish on foreign policy, senator graham said republican and democrat presidents for the past 25+ years warned and complained about the nuclear program, president trump inherited the mess. those are two of six tweets he just put out on the issue. he's with the president but appears in favor of a preemptive strike or talked favorably about that. what do you think of that strategy? >> i don't like the whole idea of a preemptive strike, i don't think it's useful at all, i think it sends a different message than we're trying to send. it keeps both sides at the brink. we show we are willing to retaliate with complete and utter destruction of north korea, not just the nuclear piece but north korea, and then we stage and post, and you are demonstrate that we're going to do that. the problem is our credibility has been bad, but the first

preemptive one, there is no guarantee it's going to work, and two, it guarantees it's going to escalate. connell: the key is retaliation, not preempt shun, the key question, what constitutes an act that needs to be retaliated against in your opinion? i ask that if north korea hypothetically fires a missile near guam within 20 miles but not at guam, is that an act that we should retaliate for? what do you think, dave, first, before we go back? >> no. connell: okay, let it go. >> let it go, if we have the right indicators. that's the last minutes as you're able to determine whether that's going towards guam or not. the other part is japan can shoot it down, that sends different cultural embarrassment message to north korea as well. i would encourage japan to be looking at this, they said in the collective defense structure, he would look at that. it's a good idea.

connell: right, japan said they had our back on that particular one or had the region's back, their own region is the better way of putting it. how but, rebecca on the question of preemption versus retaliation? >> guam is america, if you splash the missiles near that island, in my mind that's grounds for retaliation, we have options for precision ground options and china can help, too. blip a little code across the border, step across the border and/or shoot down one of the missiles, guam is america, we need to be ready to retaliate. connell: guam starts where? that's the question david and i were talking about, you say it starts with, say 20 miles plus outside of guam in the waters, that's an attack to you? >> absolutely. i'm not going to pars that one that closely and we have good military options there, yeah, yeah, i think it means an attack, just to be clear. >> the consequences of that.

i almost feel like we have to parse it quite closely, kim jong-un, kind of a test and next thing you know you retaliate and one thing leads to another. isn't that the fear, it gets out of hand quick? >> that's right, it's not a black-and-white question if it comes near guam. if it's outside the economic zone, what about the ones that went into the sea of japan? is that close, in the economic zone of japan, pieces that we're saying, it has to be parsed closely before you retaliate because the spiral of escalation, the retaliation is huge, and uncontrollable. connell: yes, one thing, only needs to sneak in one of the missiles, kim jong-un into seoul, south korea or tokyo, whatever the case might be, as we've been outlining all week. what about diplomacy? we heard about the backchannel talk, the associated press reported on it they've been happening but also they continue to happen with the senior u.s. diplomat, i believe

here in new york speaking to north korean counterpart. is that something that could work, or is it more important to put pressure on china? what do you think? >> both, yes, and no coincidence that all of this is happening after nikki haley lined everybody up at the u.n. china's pressure is important, they gave a great assist by warning north korea not to attack guam, okay? so i think this is going to end at the negotiating table. i think we can also retaliate without escalating. what history tells us, it takes 8 to 10 months to drive it to the negotiating table. we have two things we've never had before. one is a great layered missile defense. the circuit china fully integrated in the global economy and ready to help. i expect this to end the negotiations, china is military strong. connell: china and north korea to some extent, they need a way to save face so they don't look like they are completely capit

lath, is there a way it happens on negotiation and everybody is able to avoid conflict? >> negotiation can absolutely happen. rebecca had important point. a and, b, we here in the united states we take a look at a or, b, negotiation or military. it can be both tracks at the same time, apply military pressure, look for diplomacy and negotiation. we have to show the regime and china that we're not trying to get regime change, we want the status quo without nuclear weapons. they can retain the strategic nature of the korean peninsula, china's happy, north korea needs to be told and convinced that it can exist with that. connell: that's the basic tillerson point. dave and rebecca, good discussion, important discussion. president trump addressing another nuclear threat, and that would be iran. let's movon to that. here it is. >> but they are not in compliance with the agreement and certainly not in the spirit

of the agreement in compliance, and i think you'll see very strong things taking place if they don't get themselves in compliance. connell: okay, former air force assistant vice chief of staff, the lieutenant general tom mcinerney joins us, good to see you as always. iran obviously is another big component of this and doesn't get talked about as much this week, but could be a big part of what happens next. what about iran? >> iran is a nuclear proxy or about to be, they may already have weapons. we don't know, connell. but the fact is that will be the next shoe to drop. it presents the same dilemma and same challenge to the trump administration that it did to the kennedy administration when they tried to change the balance of power in cuba, and so the way i look at it is both north korea and iran are related. they are nuclear proxies of russia and of china. connell: right.

>> and we cannot let them have nuclear weapons that can reach the united states. that must be a line in the sand that we draw, and it is unacceptable listening to your previous guests, i would only say i would never let them fire missiles towards guam because he has said he is going to attack guam. he has intimated it. we don't know if the missiles hit guam or not. so once we see them lining up, before they launch, i would take them out, and i would make sure that north korea knew there are no more missile launches coming out of north korea because you have said that you will attack u.s. territory. we can no longer accept that if that's harsh, so be it. but the chinese must understand that. connell: so you're taking it a step further, i believe, than what rebecca said, you wouldn't wait for the missiles to be fired, you would use intelligence to see when they've been loaded and you would take them out then. what do you think would happen

after that, general? >> well, i think that north koreans would think very hard about it because they may realize that their airborne bombers with nuclear alert with nuclear weapons on them, and that air launch cruise missiles that may have already got the launch authority. i would not let any rounds come into seoul, and i would have airborne alert. this is me. but i would have the old chrome dome that we used to have when i was a lieutenant, flying and i'd have them over in south korea. they must understand that we will not accept any potential threat to any part of the u.s. or our allies, and that we are prepared to go to and preempt with a nuclear conflict if we have to. they must understand that. we cannot let them go down the road to where we don't have an opportunity and they have 50

icbms aimed at the united states or allies. connell: dave's point was that it had to be -- agreed with you on that, they have to understand that, they have to understand that the military threat is a very real one, but that we have to make sure to retaliate rather than preempt. why is that wrong? why is that the wrong approach? >> well, there are two options for us. let's talk about the retaliation, if one round is fired on seoul from artillery, i would retaliate with nuclear missiles. air launch cruise missiles with aircraft launch that could already have their launch authority given to them so they could be in north korea within five minutes. you know, we have a pre-thrag, 2,000 sorties that are already targeted. in this particular case, i would put the nuclear airborne alert on the pre-thrag, talk about -- and that's retaliation.

talk about a preemption. we can take out the artillery with conventional means, we don't have to use nuclear. if we decided that the situation -- and i'm not going to give you a lot of specifics, you can imagine 1,000 to 2,000 cruise missiles in the air from air-surface and subsurface systems, can you imagine b-2's carrying two 30,000-pound bombs, can you imagine moabs? 20 at a time? i was d.c. operations and intelligence when they built the hardened artillery sites. we know the exact gps positions. connell: okay. >> it's on our side, if we wanted to preempt it conventionally. connell: general, always good to talk to you and get your perspective and expertise, we appreciate it again today. boy, serious stuff. thank you, sir? >> thanks, connell. connell: no mess in the markets, we've been talking about that, and throughout the

week we saw a sell-off the last couple days, lost 200 points yesterday, and charlie gasparino is also coming up, he's back today. he's got breaking news as a matter of fact on tax reform. i'll have charlie bring you that, after a quick break. listen up, heart disease.) you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care-

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. >> tax reform, by the end of the year. yes or no? >> yes, ma'am. we think it's critical to the economy. look the unemployment rate is down, that's good. president trump's created a million new jobs, that's good. we can do better, especially if we compete and win around the world, especially here at home. we can't be settled with the tax code we've got today. connell: the house ways and means committee chairman kevin brady, tax reform gets done this year. charlie gasparino saying there is division among republicans, we've talked to him about it a number of times this week. and liz claman is here from

"countdown to the closing bell," nice job filling in for neil. you will be as polite to liz as chairman brady was? >> shall i be as polite to liz as i was to asman. connell: i tried to get apology from david asman and he refuseed. >> i'm friends with asman, he's a guy. >> wait a minute. >> you are a lady and i'm not going to do that. >> bring it on! >> bring it gasparino, tax reform, tell us, where are we going here? >> kevin brady is making the rounds now to various places and talking a good game. he's a smart guy, a nice guy, but if you really push him, he will explain to you that there are divisions inside the republican party over certain key issues that could prevent tax reform from happening this year. not saying it will prevent, it could. what is that? big division over what is revenue neutral. some supply siders, particularly the house freedom

caucus believes they should drop the revenue neutrality issue as the cbo scores it and do a dynamic counting like ronald reagan did. there is also big divisions over which deductions stay in and stay out. you have republican congressmen from new york, new jersey and california who are never going to vote for the elimination of the deduction for state and local taxes. connell: you are right. >> you could go on and on. and kevin brady is a smart guy, really good public servant. connell: seems like he -- >> when you push him, he will talk to you about the divisions and the divisions could stop this like it stopped health care. connell: or change it, seems like the debate is tax reform versus tax cuts. >> tax reform simplification, we talked about that. i did push him on special interests, where are the gates going to be? shut watertight closed or open just ajar for certain special interests to get through. you give it to one, the lobbyists come screaming and say i want my piece.

one of the things he did let through during the interview when i told him about paul ryan's individual card, he said we can do that, we will make it so much simpler to file taxes but feel we can fit mortgage deduction on that card. so what about what charlie brought up? the big states who will complain dramatically, not just talking about blue states, red and blue large states who suddenly are telling citizens you can't write off, you can't deduct. connell: you get the sense big picture republicans are willing to settle for something smaller and this will get watered down, maybe something gets through, not as big? >> they have to be ready for that. it's been 31 years since ronald reagan signed the last tax reform. >> they don't do something significant like get the corporate rate to 20%, they can't -- listen, the effective corporate tax rate is 27.1%. connell: after you work through the loopholes. >> close the loopholes and

bring it down to 25, you're not doing that much. they know this. again, when you push kevin brady and some of the guys, ask them what it means to be revenue neutral. they'll tell you -- and they have to rely on the cbo and i believe that the house's own accountants, they don't score this dynamic. >> they want to get it past to reconciliation without the democrats. >> right, but these guys believe in a sort of static analysis of how do you calculate the deficit and they're stuck with it. so when you have that, you really can't do a big tax cut. >> yeah, that's the sense, and done more reporting on it. >> arthur laffer is not scoring this thing. larry kudlow is not scoring this thing. steve moore, some bureaucrat who believes in straightforward static analysis is scoring this. that is not going to allow for big tax -- i don't think. connell: especially with what happened with health care.

>> politically unstable. >> and twice at the top of the interview and the very end, skid twice, bluntly sir, will you have it done by the end of the year? first time he said yes, we can do it, the next time he said yes, ma'am. i can't beat up somebody who says ma'am. he specifically said, connell, the middle class deserves a tax cut, and he indicated smaller businesses or businesses in the community need a tax cut. connell: wonder if they'll raise taxes on the rich. >> here's the thing, so many moving parts with this, you can't do it in a television interview because it's so complicated. how do you treat tax cuts for s-corp.s for pastors, versus the corporate tax rate, who gets the tax cut of individuals and when, and should you have a policy that gives a big middle-class tax cut when in reality the top 1% pays most. connell: bring up the markets and take a quick look, liz, at this week, down for a few days

in a row, the stock market weekly figures, today a bit of a buy on the dip which is a surprise to some given everything that's going on with north korea. bottom line, there's no panic here, gold is up a little bit, bonds down a little bit. >> the nasdaq had a drop yesterday, more than 100 points that's a significant ding but not hysteria. and at 3:00 p.m. eastern on "countdown," plug of the show. connell: working the plug. >> always, we're talking about nuclear nervousness. connell: in terms of markets? >> yeah, jitters, investor jitters. >> i think the headlines -- unless something -- listen, nuclear war is not good for the markets or the economy or anything else. connell: get that out of the way. >> i think these are headlines that investors use to take money off the table because the market is running so high. i will say this two, thing us when talk to institutional investors, they'll tell you take out nukes and take out trump's personality, his

regulatory agenda, even if he doesn't get tax cuts is anything clinton would have given you or any democrat because it's more pro other. >> you can't deny how the market has performed since the day the world knew that donald trump won. connell: well, it's seen as a better business environment. >> think about it, you have free market capitalists in the regulatory bodies but here's one other thing, if the tax cuts are not priced into this, so let's say we do get a tax cut. connell: more, it can go up more. >> this is an upside surprise that could take the market higher. >> i know you have to agree with me in the fact that north korea is something hanging over investors' cerebellum, they are watching it. a trillion dollars so far has been sliced off global markets. not the u.s. market, in combination, in the aggregate, a trillion dollars cut off. >> go ahead, charlie. >> i hate to say this, if there

was a nuclear conflict, if they bomb japan, you could see a flight to quality in the u.s. >> let's be clear here, what do investors think about. they think about worst-case scenarios. >> they should be thinking about -- connell: they are not thinking about a worst-case scenario, clearly markets would be crazy and they're not. >> they're factoring that into the equation >> we'll watch the discussion about the markets and north korea this afternoon on "countdown to the closing bell". next, we'll talk about google. that's become another big, big story with the company under fire over this diversity issue. canceled a meeting last night. you have democrats in congress looking for answers. why that's causing some alarm about that? all those stories coming up after a quick break on "cavuto: coast-to-coast." poor mouth breather. allergies? stuffy nose? can't sleep? take that. a breathe right nasal strip instantly opens your nose

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connell: back to the google story as the company canceled a planned diversity meeting they were supposed to have after that memo gate and the guy that got fired. lauren simonetti joins us in the newsroom why things were canceled. >> reporter: the google ceo canceled the meeting an hour before it was supposed to start. supposed to be a town hall event, google staffers would ask questions about google's response to memo-gate, the controversial memo written by the male software engineer about male in the software industry. he got worried for the workers when the questions were given ahead of time when questions and identities were leaked. employees are getting harassed on social media for supporting the firing of the memo's author james damore. one twitter account encouraged google to expose colleagues' identities and, quote, ruin

their lives. eight had bios highlighted by well-known political commentator, google ceo writing in memo to employees, this is a quote, googlers are worried they may be outed publicly for asking a question in the town hall. google is covering itself here, dozens of women considering gender discrimination lawsuits against the company so, this is what happened. they cancel the meeting before it started. connell: the big point, the possible lawsuits. lauren, thank you. democratic lawmakers are getting involved with demanding answers on the fired google employee's memo claiming the tech companies in general are not doing enough about diversity. that brings up a larger question about whether there's any role at all for washington in all this? let's go to our panel and talk about it more. sabrina schaeffer is with us, the democratic strategist wendy asay oh, joins us and conservative commentator carrey

sheffield with us as well. sabrina, is there a role for government trying to level the playing field in the way the democratic lawmakers would put it in silicon valley? >> definitely not a role for washington. we should stay as far away as possible. i think there is room for larger conversation. i believe deeply in gender differences, i believe women have different aptitudes and strengths. i think that the tech environment does have challenges that they need to address, and i think i've talked to forbes on fox friend about this, and one of the things that's interesting is that in the 1980s there were more women in tech than today, which does suggest that proliferation of online chatter and the culture there has changed in some way, and that's something that companies like google have to tackle. connell: or that just all of us will, right? in some way, i brought this up earlier in the week on the air,

i have two daughters, one is 14 and one 12. i could see one or both working in the technology industry in that they're both interested in it, interested in math. i could easily see it. but the numbers are something else in terms of how many more men than women work in the particular industry, so what's your view, wendy? something that has to be forced on the industry by government or something we need to talk about, what should we do? should we do anything? >> not necessarily, washington has every responsibility to assure, of equity and inclusion are not in the bulldozed. we make 59% of the u.s. labor force but only 12% of the tech industry. to add insult to injury, we see that men honestly make 61% more than female counterparts in the silicon valley. so what we have here is not just nefarious attitudes towards women in the tech industry, we have opportunity gap. that opportunity gap is saying that women should not be in the tech industry.

so we have to end that pervasive narrative that women are inferior, industries not only base hiring practices also on the narrative but also affects the self-esteem of women and girls in the s.t.e.m. field. connell: i understand, carrey, that google said there are threats against the employees and canceled the meeting. it's ironic we've had two panels and had good discussions about it, maybe that's what google should have done last night. that's just me, what's your take on all this? >> comes down to culture. any time you have government into fix the culture there are unintended consequences, you can see it across the board on many other scenarios. you look at the explicit text messages and harassment of women, women trying to get -- connell: just not comfortable. >> the men are forcing them to try to have sex with them or date them and they're trying to get investment for the tech company and they're treated

like objects. connell: that's a company issue not a government issue to regulate. >> it's a cultural problem. it's pervasive throughout silicon valley but that's something that when it rises to the level of harassment, that is something i think from a legal perspective the government should get involved. in terms of mass regulation, it's not going to work. connell: sabrina, you agree that it's a cultural technology specific problem? >> i think there is something unique to technology, what's interesting is we're seeing a lot of women who are strong in math and science but turning energies to other fields where they can use, that environmental science, architecture, biology, veterinarian school. all of the areas where women have strengths are choosing to go into because of the culture, perhaps they can create a better work-life balance. the reality is it's tech loss because women have the strengths and abilities and they're going to lose them. connell: what about the fact that google wouldn't talk about

it last night? do we all accept on face value the fact that it was because of the online threats and that can be serious, maybe it was, to me it seems a little odd. isn't that fair that they should at least -- that goes to the firing of this guy, if you disagree with the guy that we should have the discussion rather than firing people. >> absolutely. we should have substantive discourse around the issues, when it comes to issues of inclusion, comes to issues of equity, we need to come together as a community and create dialogue on why the issues are happening. to address a comment made earlier. when it comes to the attitudes of women in the s.t.e.m. industry, it doesn't just start in the workplace, this is something as an educator at the collegiate level, i see it in college and high schools. it starts in elementary school and it comes from the narrative that women cannot do the same thing men do.

>> i don't think that. connell: i don't think she's saying that, it's the natureive. >> you look at "cosmopolitan" magazine, it's all about sex, clothing, flirting, things that aren't substantive. >> have you looked at men's magazines. >> that's what i'm talking about. women have their role and men have their role. connell: hang on a second. sabrina, we have to go but i know i wanted to make a point, go ahead. >> if you look at students enrolled at m.i.t. that top math and science school in the nation, there are stark differences what men or women are choosing to major in. the soft sciences and men are going to computer engineering and science, and i think it's important in this conversation, there maybe cultural problems but there are also genetics and gender differences. connell: and all of them, every single part of it is fortunate talk about, even if you disagree with someone, sabrina, wendy, carrie, appreciate it.

>> facebook expanding dominance in the tech world and what it all means for and you tech's control over you and that part of the technology story coming up next.

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. connell: more tech talk for you today. look at the stock price, down 11%, snap inc. is the company behind snapchat, disappointing user growth, something you do not want in this industry, facing pressure from instagram owned by facebook as this particular stock chart illustrates for you. the tech analyst is with us. russ, the issue is whether snapchat can compete here not in terms of what the kids like on a day-to-day basis but the economics of it. facebook is dominating this space, why? >> you look at facebook has

grown over the past 10, 15 years at this point, and built this network of ways to promote whatever they're buying, whatever they're focusing on. instagram perfectly tied into that. snapchat is like an island, have you all the kids and user interaction but haven't found out a way to get people to spend money, make money, translate that. connell: kind of like twitter in that way. >> very similar. >> the young kids love snapchat and all the journalists love twitter because they can watch what each other is saying and compliment each other, that's how we roll, and twitter doesn't make the money that facebook does. what is it facebook is doing so right? simply being able to scale it because they are so large and dominant that way? >> facebook is so broad. you have the wide age grapp, snapchat is younger, you have people that log in every day as a matter of course, not they saw something cool, i log in, it's in the news feed.

connell: kids say facebook is only for old people, and you thought it's going to fade away, the next big thing will come up. it never happens and still a lot of people have the accounts, i guess they use them, the younger people. is there anything that they lose because they're an older site? >> i think facebook has been smart about push notifications, stuff like that to keep people engaged with the website, with the app. connell: now tv, the messaging, look at facebook, just this year. we had jeff flock reporting on the story that amazon is going to get into the ticketing business. a story every day of the week, amazon getting into x business, amazon taking on ticketmaster. what do you think? >> genius, fits perfectly with the current business model, they have a subscriber base with amazon prime, so many people are paying 80 bucks a year. think about a credit card, if

you have amex card you can get access to certain events so now they're expanding more services to this prime deal. the other really good thing is they have the back end to make really good websites that sell tickets, something that ticketmaster does not have. if you try to buy ticketmaster tickets, total disaster. connell: frustrating for people. that's interesting, so the consumer experience will improve here, i wonder pricingwise what will happen, that's amazon's mo, they lower the prices by undercutting there. can they include it with prime or maybe have to raise prime prices at some point? i don't know. >> i think prime will be a big part of that, you get service prices, but also there's so much demand to move away from ticketmaster, i don't think they have to under cut them that much. connell: they do a better job. >> amazon has made a living on make good websites and back ends, i'm not worried about amazon being able to pull it. connell: with prime

subscription you get good deals and streaming tv and music and on and on, if it is including tickets and food and food delivery and the whole foods acquisition, is there any risk of amazon overreaching or as we say the path to world dominance? >> they've got a good cash cow, this deal in particular is not a huge money sink for them and they are smart about when they invest in something that's not quite working out, they don't throw good money after bad. they pivot and try something else. they've been smart with the new expansions and all of them have a long growth to them. connell: yeah, anything else can you think they're not in that they would get in? >> you name it. connell: they're almost in everything. >> partnering with tesla, doing automated car stuff, who knows. connell: not a bad idea. order a tesla. good to see you, russ. >> cheers. connell: two interesting topics to talk about there. back to the politics of the day

and everything going on with president trump, and maybe using trade. we talked about the possibility of doing that with china, put more pressure on the chinese, the president's talked about it in the past. could he bring it up again? would it work? good? bad? dangerous? we'll take that up after a quick break here on "cavuto: coast-to-coast." ♪ 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.

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. >> i think china can do a lot more, yes, and i think china will do a lot more. look, we have trade with china. we lose hundreds of billions of dollars a year on trade with china. they know how i feel. it's not going to continue like that. but if china helps us, i feel a lot differently for trade. a lot differently for trade. connell: president trump, possibly, as you heard him talk about there using trade as leverage to involve china more with the diplomacy when it comes to north korea. chinese state media saying it may come out against us if we strike first. something we talked about earlier in the show. from heritage foundation bruce clinger on if we can do that. is it possible, bruce, something the president talked

about trade policy can be used in the carrot and stick approach with the chinese, it would come in handy with north korea, or would it? >> linking separate lanes in the road can give you leverage across the board and certainly trade is leverage. i'm leery of doing that with north korea, you should go after national interests in each of the lanes in the road, china, taiwan, south sea, et cetera for u.n. resolutions, should not be backing away from what is required under the resolutions and also holding punches on what we should be doing to enforce law, the chinese and other violators we've been holding back, should be implementing secondary sanctions, so if china comes across with favorable trade terms, do you back away from what you should be doing on north korea? i don't think so. connell: separate the two and more that we can do.

i understand that. what's in china's interest? that gets into the heart of what they might do here. is it in their interest to help us with north korea? they don't want to see war in the region, right? shouldn't we be able to put pressure on them to help solve this peacefully? >> right, i think what we can do is by using u.s. law, we can wean away the chinese banks and businesses engaging with north korea. connell: right. >> the vast majority of all international financial transactions are denominated in dollars, therefore have to go through u.s. banks, including north korean transactions as well as chinese banks and businesses engaging in north korea. they are using correspondent accounts or their own accounts in the u.s. we've been holding back -- connell: if we do that, sorry to interrupt. if we use banking sanctions, and obviously maybe this is why we haven't done it yet and only do it if it's something we need to do, but hurt our financial industry too, right?

>> well, i would argue why would you not enforce u.s. law? why would you not protect the financial system against criminals, whether they're chinese or any other entity. and what you presented to as the secretary treasurer did when we sanctioned the one chinese bank, we're not saying the chinese government is complacent, we're not behind, it we're enforcing our own laws, why would china take umbrage at that if we are enforcing our laws. connell: you would wonder. i guess the final question is, do you think we have enough at our disposal from everything you've outlined and talked about that this can play out peacefully over the next week or so? prediction is such a poor way to put it, but how do you see this playing out? >> separate from the u.s. trade issue or the china issue, u.s. and north korea are at loggerheads. north korea made very specific public plans about what it's going to do with missiles. in the past they've said don't

forget guam is within range. by giving specific even down to number of seconds, the missiles are in flight. i don't think it's a strike, i think it's military demonstration, the question on the u.s. side is do you try to intercept? certainly if it's going towards u.s. soil or guam or within a certain range outside in the ocean, you know, and then we could argue whether that's provocative or will that prevent a further escalation by north korea. connell: that will be the big question if it comes next tuesday or whenever it comes. bruce, thank you, sir. in terms of what the president has been saying about this, dealing with the back and forth with mitch mcconnell, and you know, that has a lot, apparently, of you fired up. we're going to look at what you're saying about it. trump-mcconnell. after a quick break. potsch: you each drive a ford pickup, right?

(in unison) russ, leland, gary: yes. 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) . .

connell: a few final point in hour on the president's feud with the senate majority leader generating loud response to put it mildly on our social media pages. here is tweet. throw the bums out. he blames potus for expectations. no more excuses the buck stops with you, ryno. janice says, all americans are tired of the swamp, republicans and democrats. president trump will have hard time giving them life of luxury on the people's money. norma on the twitter. laysry republicans need to get off their rears and work. they may lose the next election if they do not produce.

keep them coming tweets and everything else. team can cavuto. like norma says, get off the rear. trish regan is here to take you through the next hour. hey, trish. trish: i like that green on the screen. thank you so much, connell. president trump doubling down on the stern warning to north korea today, you better think twice before you make the next move because our military solutions are fully in place. the dow snapping a three-day losing streak. i'm trish regan. welcome to "the intelligence report." we have a lot boeing on with president trump warning president kim jong-un, don't test me because you will see our country's military might because you're messing with the wrong person and the wrong country. you watch him here. >> he has disrespected our country greatlyhe has said things that are horrific. with me isot