think last couple weeks, strong for the president. good storm response. and leaders of the world. >> he has been absolutely terrific on the hurricane response. and i hope he is with puerto rico too. ashley: i think he will. neil cavuto. finish there. take it away, sir. neil: thank you very much, my friend. we're looking fallout from a hurricane apparently has not quit. the entire island of puerto rico still without power. could be that way for a while. 11,000 hunkered down in shelters. puerto rico's governor with a 6:00 a.m. to 6:00 p.m. cure few. president trump promised to visit puerto rico. >> the electrical grid was destroyed. it wasn't good to start off with. but their electrical grid is totally destroyed. so many other things. we're starting process, and work with the governor and people of puerto rico. neil: maria headed toward the

dominican republi turks & caicos. weather meteorologist charlie meese with us what is the latest. >> category 3 with 115 mile-an-hour wind. it is possible it will strengthen a little bit as it moves northwest at 1 to miles an hour. the problem will not be the 155 mile-an-hour winds when it hit puerto rico but across hispaniola and dominican republic. you will have tremendous flooding. they are mountainous islands. they enhance rainfall with or graphic lift. when you have 10, 20, 25 inches of rain. catastrophic flooding going on in puerto rico, likely to extend north as the storm movers north. hispaniola, dominican republic will have to deal with the same thing. wind will be hurricane force there but it will be the

flooding that will be a big issue as it moves farther north and west. through the turks & caicos, nine to 12-foot storm surge in the lower islands, that will be a big issue right along the coast. the good news, at this point, looks like a trough off the east coast in part due to jose, area of high pressure back over bermuda will steer the storm farther north away from the east coast. however that track has to be closely monitored. neil: charlie meese, thank you very much. rob gould, florida power and light company is with us. rob you look at this, troubles they're having getting power back on. it could be we're told in some places up to months. how is that possible? >> well, you know, to be honest we've been so focused on our restoration but to have a storm of that magnitude hit the islands and affect the grid, it is just, mother nature is a humbling force and, it is

something that we know all too well what we had to to through. we've been very fortunate here because we spent roughly $3 billion over the past decade hardening our grid. within the first basically, first day of the storm with it still on us, in the northern florida portion of our territory, we had already restored one million customers. that is largely due to automation. so we're at a point now, we're now in dade county, we're virtually 100%. we're almost on. neil: that is amazing. that is amazing. one of the things i heard, puerto rico like florida, built up more stronger hurricane resistant buildings, not to the degree florida did. but what they were not prepared for was the surges and flooding that has wiped out so much, all of the power. how do you deal with that and how do you prepare for that? >> good example, we have a less on learned we had from super storm sandy where many of our

substations actually had flood monitors. we have seen in st. augustine for example, two years in a row, we had hurricane matthew last year, we had irma this year, literally we took that substation out of service as we started to see our monitors and alarms going off where floodwaters were starting to come into the fence line, if you will. what we did was we took it out of service. the floodwaters recede. we bring that substation back into service after we inspect it. that saves us three to five days, arguably millions of dollars in restoring and rebuilding a substation, getting our customers lights back on as quickly as we can. neil: now when i hear country, commonwealth, territory talk about months without power there are obviously going to be some places come up sooner rather than later. i imagine they would be in and around san juan, more rural regions that could be dicier? >> to be honest with you, neil,

i can't speak what they're going through. neil: sure. >> it is such a challenge, a monumental challenge. one thing about the industry we're resilient. whether it is puerto rico, whether it is florida, anywhere the industry comes together. they will get through it. obviously they have challenges. we're fortunate here and again i just, our hearts go out to many of our employees in puerto rico, virgin islands and the caribbean. we are keeping an eye on it but it's a challenge. again, mother nature is extremely humbling when it comes to the electric grid. neil: you're right about that real quickly. doesn't look like the storm will affect florida, you never know with the forecasts. i would think even pounding rains from this would be last thing florida would need. >> we'll see effects in our service territory for weeks and months. you will have trees in weakened conditions. that will be an issue with thunderstorms we see here. we're not out of hurricane season as you know.

neil: not at all. >> in florida, most people think of september 15 as peak of season but in florida, our in-house meteorologist is quick to remind us, middle of october and little later is peak to florida. you could have close in to the peninsula development. we're mindful of that for sure. neil: rob, be well, thank you very much. >> thank you. neil: good luck and good work. rob gould, florida power and light. puerto rico under massive flooding and mudslide that come with that. keep in mind that is a very, very big worry around their rainforest area. of course packed in the middle of the country, northern part of the territory. the u.s. coast guard san juan commander, captain eric king joins us on the phone. thank you for taking the time. how do you deal with something like this? who do you target for relief or help? >> good afternoon. thanks for having me. our focus ideally, pretomorrow

storm really focusing our people are safe and our resources are safe so we can come back in following the storm to reconstitute our units to provide services to puerto rico and virgin islands. neil: with the entire area out of power, the services you provide generate oars or relief something like that to get some folks back up to speed? >> i mean our role, in our role in this is really to try to reopen the port waterways if possible. neil: okay. >> we're providing immediate search-and-rescue efforts. opening up ports and waterways of valuable commodities goods can support -- neil: the fact this brought so much flooding with it, that obviously complicates relief efforts and the like, a lot of people who still can't get back to their homes, some communities i'm told the homes were essentially destroyed, what can you do about that? >> you know, we tie in, we're closely in this case with the

puerto rico emergency management authority. we tie in to support any of their efforts. obviously trying to clear water and roadways in that case. we are, like everyone else rely on the roadways to move our boats that we brought inland, bring them back, put them in the water. we're tied closely and work with the emergency management officials here. neil: all right. captain, we have in and out audio connection with you. i apologize for that. continued good work. captain eric king, u.s. coast guard san juan commander. we'll be looking at a very busy schedule coming up in washington particularly next week, into next month. it looks like they're very close to a vote yet on another health care rework. at the same time we're supposed to get details of those tax packages various parties are working on, including the trump white house we're told we'll have pen to paper and detail of those rates for everybody, except we're told the rich. after this. ♪

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neil: all right. here they go again. another effort to repeal obamacare but this time they seem to think among the republican leadership, that they got the charm. this could do it. despite the fact senator

rand paul doesn't like it. at least five republicans are on the fence, a number of insurers are gathering around saying this isn't our cup of tea, and couple big governors chris christie and john kasich that it is unacceptable to them. congressman dave schweikert is on the phone. congressman, thank you for taking the time. we don't know a lot but it isn't a slam-dunk. is it risky to see your senate colleagues attempt to put this up for a vote? >> look, whenever you're dealing in this subject area, it is risky. but you have to actually sort of deal with the math f you're from arizona, you know, the obamacare, the aca particularly individual market is collapsing around them. we don't have a choice. we need a fix and, the fact of the matter is, if they are really talking about substantial block granting without a lot of the rules and regulation giving

us the ability to be creative, that is something arizona is really good at. neil: you know what this comes down to? it caused a commotion among comedians and late-night tv, i don't want to go down that avenue, congressman, but whether preexisting conditions are covered. i guess the gist of this legislation by bill cassidy and lindsey graham means more states have more control of more dollars where they could decide what to do with the dollars, if push comes to shove, whether to cover such preexisting conditions. is that true? >> that is not my understanding. it is a little more nuanced than that. neil: okay. >> i believe the mechanisms it being guaranteed issue remain. what happens is, what is part of a individual benefit packet. could you alter it, change it, but i believe at least in a draft that i was touching in

politics this is lifetime ago it was a week ago it, had language in it that the state could change the essential benefit package as long as it was expanding coverage, lowering prices. you can't expand coverage and do certain, you know, you have to be able to also find ways that a preexisting, will be covered because you have guaranteed issue. we got to be careful because we're playing games with the language. neil: i could look at that as well saying you can expand coverage at lower prices if you don't have to worry about covering someone who has a very expensive prior condition or whatever. so that is why some read into this. i don't know what the truth is so that why is i'm relying on your expertise here. that is concern a lot of folks have, before they put pen to paper or sign on to this, that many of are eager, particularly republicans who don't want embarassment here, they want

assurances that spates won't pull a fast one on folks like that. >> look, it is fair but, when you look what goes on in health care in the states, for 30 some years we had guaranteed service. you walk into a emergency room, you walk into a hospital, they must take care of you. so the number of procedures in our society has been basically the same before the aca, after the aca, and in the future. this is the debate how you pay for it and who gets to pay for it. neil: how do you guys change the narrative here though? i think republicans are in no-win situation especially when barack obama reappears on the public stage to talk about you trying to dismantle health care, being very, very cruel about it, and this would lead to a lot of suffering and pain, when in fact it is these rocketing premiums for a lot of individual americans across the country that is causing a great deal of

suffering and pain. so yet in that area, you always seem to be behind the eight ball losing pr argument. how do you counter that? >> i'm not sure, at some point you need adults in the room to make the math work. as we're seeing in the individual market, and here's the problem. most people don't realize obamacare primarily was about the individual market in a congressional district like i represent, that is only 2% of my population are in that individual market and the expansion of medicaid. but that individual market is collapsing because the healthy folks aren't buying. the cost has gotten too exorbitant. those who with chronic conditions are. so the toxicity curve blows off the chart. we're trying to find a way to lower the premiums so more healthy population will buy. well that is sort of a acutarial math discussion and the other side is talking about emotion.

well, emotion doesn't actually make finances work. neil: no, that is a very good point. it doesn't pay the bills either and there are bills to be addressed here whether you're a fan of what you guys are doing or a fan what democrats want to do, single-payer or whatever. congressman, thank you for the time. >> no, i appreciate. neil: be well. something that can get in the way of all these initiatives is russian investigation and wiretapping around paul manafort. blake burman. what do you have? reporter: director of intelligence jim clapper saying possible, possible, that a wiretap may have picked up a conversation between president trump an paul manafort. right off the top let's point out it is unclear when this possibility could have happened but clapper was responding to a cnn report that manafort was wiretapped before and after the 2016 election. according that report the first

wiretap dates back to an investigation in 2014 looking at workman that for the did for ukraine's working ruling party and second one, this is likely relative to clapper's comment, was granted by fisa court last year possible ties of trump campaign, some members of the trump campaign and russian operatives. man that for the was officially brought into the campaign in march of 2016, elevated to the chairmanship role a couple months after that, and left in august of 2016. listen here to clapper on that possibility. >> is it possible the president was picked up in a conversation with paul manafort? >> it's certainly conceivable, yeah -- >> is it likely? >> i can't say. i wouldn't want to go there but i will say it is possible. reporter: now clapper, who was also the director of national intelligence during the last six years or so, neil, during the obama administration, also

claimed in that interview last night on cnn, he was not aware of a fisa warrant involving paul manafort. neil? neil: all right. thank you, my friend, very, very much. meantime i want to let you know that mercedes-benz is upping its commitment to build more cars in the united states. a one billion dollar investment in electric vehicle production we're told for alabama. that would involve 600 jobs. far more consequential to me was news we just got out of starbucks that it is planning a maple pecan latte go against its pump pin latte. america get ready -- pumpkin latte. more after this.

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neil: the president is speaking at the palace hotel with leaders of south korea and japan, no doubt on north korea. let's listen in. >> i'm announcing a new executive order i just signed that significantly expand our authorities to target individuals, companies, financial institutions, that finance and facilitate trade with north korea. as i outlined at my address to the united nations general assembly north korea's nuclear weapons and missile development is a grave threat to peace and security in our world and it is unacceptable that others financially support this criminal, rogue regime. the brutal north korean regime does not respect its own citizens or the sovereignty of other nations.

our new executive order will cut off sources of revenue that fund north korea's efforts to develop the deadliest weapons known to humankind. the order enhances the treasury department's authorities to target any individual or entity that conducts significant trade and goods, services or technology with north korea, and i'm very proud to tell you that, as you may have just heard moments ago, china, their central bank, has told their other banks, that is a massive banking system, to immediately stop doing business with north korea. it just happened. just reported. in addition to everything else, what we will do is identify new industries, including textiles, fishing, information technology,

and manufacturing that the treasury department can target with strong sanctions. and, secretary mnuchin is representing the treasury department. he is here today, to prevent sanctions evasion. the order also includes measures designed to disrupt critical north korean shipping and trade networks. for much too long north korea has been allowed to abuse the international financial system to facilitate funding for its nuclear weapons and missile programs. the united states had representatives working on this program for over 25 years. they have done nothing. that's why we're in the problem that we're in today. in addition to frankly other countries not doing what they should have done. tolerance for this disgraceful practice must end now. and a new order will give the treasury department the discretion to sanction any

foreign bank that knowingly conducts or facilitates significant transactions tied to trade with north korea. and again, i want to just say, and thank president xi of china for the very bold move he made today. that was a somewhat unexpected move and we appreciate it. new authority in this area applies to any activity that occurs following my signature on the executive order which i have actually just signed. foreign banks will face a clear choice, do business with the united states or, facilitate trade with lawless regime in north korea. and they will not have so much trade. this new order provides us with powerful new tools but i want to be clear, the order targets only one country, and that country is north korea. the regime can no longer count

on others to facilitate its trade and banking activities. many countries are working with us to increase economic and diplomatic pressure on north korea, but i continue to call on all those responsible nations to enforce and implement u.n. sanctions and impose their own measures like the ones i'm announcing today. i must tell you that this is a, a complete denuclearization of north korea that we seek. can not have this as a world body any longer. in just a few minutes prime minister abe, president moon and i are going to discuss what more we can do working together. we've had a very, very close relationship. i think our nations have become closer because of this. i know it is going to be a great meeting. our alliance with south korea and japan has never been

stronger than it is today. we share a commitment to creating a world where strong and independent nations honor their people, respect their sovereignty, respect the sovereignty also of other nations, and promote peace. thank you very. i would like to ask, start off president moon, to say a few words, please. >> translator: recently we say provocation coming from north korea and the japanese people must have gone through a huge, big shock and i believe that the standard, huge concerns that japanese people may have because of this provocation. so i would like to express -- for the compassion for the japanese people in this regard. the three leaders have met at

g20 in july in germany and issued a joint statement. and through this joint statement we set a firm foundation for close coordination among the three countries, based on which we are cooperating closely with the international community. for the sanctions and pressure on north korea. and through the u.n. general assembly, that the three leaders have come together, we all had made speeches at the general assembly and we met with leaders of the major countries at at bilateral -- we were able to enhance understanding about the sanctions and we were able to urge international community about this situation. i think this is an outcome that, meaningful outcome that the three countries have made. president trump talked about the executive order through which

the u.s. is going to be implementing sanctions against the dprk. those are very major announcement made by china to take actions on dprk. i am very confident that these such moves will contribute to complete denuclearization of dprk. i would like to express my appreciation to president trump. i would like to say korea would closely coordinate with the united states on this matter. through today's meeting i sincerely hope that there will be display of strong leadership in coordinating our responses with the north korean issues and look forward to engaging in debt discussions for solution to north korea and nuclear missile problems. >> prime minister abe?

>> translator: in the last three weeks, two times north korea launched ballistic missiles, two times, going over japan and they conducted six nuclear tests and the scale of the tests was beyond the scale of hiroshima bombs, more than 10 times the scale of the nuclear tests, it was 10 times more. this is intolerable, outrage -- outrageous act. thank's to donald's meeting we have summit between the u.s., japan and south korea. our unity and solidarity could be presented to north korea. this meeting is indeed quite significant. i would like to thank donald's leadership. recently u.n. sanctions was adopted unanimously including very strict sanctions and i would like to thank the efforts

of the u.n. ambassadors from the united states and further efforts are needed and in this context donald just referred to signing of the executive order, new executive order. so we are going into the new stage of pressure from the viewpoint of exercising stronger pressure, new pressures as, i welcome the new sanction measures of the united states and i would like to offer my heartfelt support for that. bearing in mind those measures between the three countries, we will have the collaboration, so that we will move toward the abandoning of nuclear weapons and nuclear program by north korea and we would like to lead into the next action. thank you. >> thank you very much everybody. we are also discussing trade transactions and trade deals with japan and with south korea.

and that will be very important but this is something obviously will take precedent. so thank you all very much for being here. we appreciate it. see you later. thank you. >> is dialogue still possible with north korea? is dialogue still possible? >> thank you. neil: all right. thatthat is a big vetment here n the battle back and forth to get the north koreans to quit being so provocative. their chief economic beneficiary, the one propping them up, china, has through the central bank sent out a notice to all chinese banks, don't do business with the north koreans. now of course that is easier said than done. we don't have the same type of relationship here with our federal reserve which is the nation's bank, if you will, barking out orders to banks like

citigroup or bank of america, that sort of thing. they can advice capital requirements but can't tell them to who to lend to and but they can say who it is illegal to trade with those countries. they have to follow the orders of the central bank in china. if we take the chinese order at their word, that they issued coming from their central bank, to all member banks and have to follow in lockstep not to do business with north korea. in the middle of that strategy, south korea is providing $8 million in human human aid, for those who would be the most vulnerable to such sanctions in that country. so it is a bit of a mixed message here but $8 million as well. if you give $8 million of north korea, can you be so sure that money will go for humanitarian efforts. again, shinzo abe, the japanese prime minister, recently has been talking very, have you

tough and says donald trump is sending right tough message to north korea and by extension to china. he had an interesting letter in "the new york times," prioritizing diplomacy and emphasizing dialogue will not work with north korea. south korea's president is in more of a difficult pickle here because his country will host the winter olympics. he doesn't want to risk the wrath of his northern neighbor. not that it will lead to nuclear war but he doesn't want them to destroy the party of that international confab starting next winter. south korea doesn't want it to go off without any hitches here. i can not stress that enough, how important that is to south korea, these upcoming winter olympic games. they will enter into this argument again and again and again. as we telegraphed on this show. this is just the latest indication how the south koreans are sort of dancing on this pin here, not to agitate so much they fear north koreans, forget

about possibly bombing them. but they might destroy those olympics. they might seem like a minor point to you, but it's a very, very big point in south korea which pays big bucks for rights to host the games. right now a lot of countrs are getting anxious whether they should to to them. john hannah, former national security advisor to vice president dick chaney ney. always good having you. maybe i'm a little cynical here but when the chinese tell us they're letting word go out to their banks, don't do business with north korea, should we believe them? >> no. i think we might trust by verify here. the history of chinese actions with respect to north korea, sign up for u.n. resolutions, get a pass, then not enforce them at the north korean border. so we'll have to see, but i agree with you, i think this is

potentially significant move. i don't think there is any chance in the world the chinese would have done this if the president had not been after them month after month to really get tough on the north koreans. i think the president is now wielding through this executive order a very heavy hammer that he is going, he is now prepared to unleash very hasek dairy sanctions against the major chinese banks and industrial conglomerates that continue to keep the north korean economy afloat and i think the chinese may have just blinked here. the devil is in the details. everything will depend on chinese enforcement but the president looks like he is ready if they don't do it, will unleash on major well-connected chinese companies. >> that is remarkable. the difference between our countries, north korea and china

couldn't be more stark. the federal reserve couldn't enforce actions other than how much money you keep on deposit all of that, but this is going to another step, isn't it? this i imagine could be verifiable we could see if the chinese are delivering or not, right? >> yeah. we have pretty good intelligence on chinese companies and banks as well as russian companies an banks that continued despite u.n. sanctions to facilitate billions of dollars worth of transactions with north korea every year. so we know what these guys have been doing. we just haven't had either the will or perhaps the capability to really come down on those, on those companies and those banks in china. and now it looks like through this executive order the president is clearly signaling that the game is up. neil: all right. >> we have to get serious. we're in the endgame with this north korean crisis if we want to have any hope of settling it

peacefully still. neil: someone called it the nuclear economic option and we just pushed that button today. thank you very, very much. john hannah. just to bring you up-to-date, this is a staggering development here. this is something, dating back to bill clinton later on president bush, barack obama, and now donald trump have tried to exert ultimate pressure on north korea with its chief benefactor, the one country that keeps it propped up, china, and china blinked today. if this is true and china can get its banks to quit doing business with north korea, that's historic, that is big. that is staggering. we'll have more after this. we took legendary

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>> china central banks told their other banks, the massive banking system to immediately

stop doing business with north korea. just happened. just reported. neil: just happened it's a big deal. as many would argue, you want to trust by verify that the chinese while deliver on this, but what donald trump delivered today, is something that bill clinton tried, george bush, tried, barack obama tried, to use the china wedge, to get chinese supporting north korea, providing reserves, money, capital, anything north koreans needed. a lot has curtailed over administration, the spigot was opened with chinese lending institutions and banks and concerns. sometimes they're woven together, but run by china central bank. that is not like our federal reserve, could suggest reserve requirements that banks like bank of america and citigroup on deposit. this is the china central bank telling lending institutions do not do business with north korea. if, if they follow up on that, in other words, if chinese are going to make good on that

commitment, that is a very significant development and it's a goal that failed virtually all this president's predecessors. the significance of that going forward. to "the daily caller" editorial director vince collagnese. it all depends whether china is not lying and will follow through. what do you think? >> i think it is exciting. i think it is excellent that our president is standing firm and coming out so strongly, south korean president had said it about the u.n. speech it was firm and specific. the rest of the world is watching us. i think they're very impressed with our president. neil: well on this particular issue, others have tried to do what this president just did or appears to have done, vince. now the question going forward, besides whether they follow up and do what they say they will do. what do the north koreans do? if north koreans continued to be

bellicose, continue to be very aggressive with missile tests what have you, they have not only gone rogue, they have gone nuts, right? >> i would say so. at this point it is clear kim jong-un's sees nuclear advancement for insurance policy for his countries. it is clear china is the one superpower here that will be able to lean on north korea to potentially get concessions if anyone will diplomatically. this can be not understated how momentous it is. see two, 15-0 security council votes with china and russia, that the heat in region but not only united states insisting that it has to defend itself is creating a situation where the use can successfully project itself in that region and china is not liking that. you have a missile system that whose scansers reach into china. china can't tell us no you can't do it right now.

things are way too hot for the u.s. to back off. neil: amy, your sense the chinese are reading into donald trump he means it? he will do something crazy, in their eyes, characterizing it? it was sort of like ronald reagan with the "star wars" defense shield? a lot of people said it got the russians to the table because he said he will do the "star wars" thing? >> i don't know if they would use the term crazy he likes to keep people on their toes. that is important, he doesn't share with us his next move at every given moment. that is something that president obama did and really weakened our country. i think that is the president is doing the right thing. neil: guys, with all breaking news, thank you, for being willing to change topics quickly. we'll talk about taxes. this might change the environment for that by the way. a lot of whispering back and forth what got us here. there is talk that trump administration was seriously pressuring chinese to go into a trade war with you.

and we know it could be devastating for us, and could be a lot more devastating for you, unless you do something about north korea? if this is the result of that, it's a significant development and one now begs the question, will the chinese deliver the goods, what will the north koreans do once they did? more after this. ♪

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neil: will the chinese do what they say they are doing? every u.s. president, really going back to george bush, senior, tried to rein in the north koreans using the china card and trying to get chinese to exert some pressure with nuclear testing. part of it was the chinese would rein in a little here and there. might get a bank or two. a individual bank or two look like they were responding to pressure. this is the chinese central bank, essentially laying down the law to all member banks. very different. their financial system was a lot better than ours. all march to the drummer. the china central bank, if tells you can not do business with somebody, not like bank of america, citigroup, wells fargo, i don't know. you follow orders or there is hell to pay. if think deliver the goods on

that, and tighten the spigot on north koreans, that potential itly leaves the north korean leaves him on a branch here so he can keep doing missile tests here then the screws tighten all the more. then he is in a whole heap of trouble. independent journal review white house reporter erin mcpike. what do you make of all this? >> neil, what is really important that the trump administration coupled what china said here with the new executive order that expands what the treasury department can do in terms of sanctioning other industries that do business with north korea. neil: very good point. sort of like a one-two punch, exactly right. >> i think that is important, over the last couple months, every six weeks or so you see the treasury department announce that they are sanctioning six to 10 individuals or companies, generally coal companies that do business with north korea. what you hear from a lot in the defense community is that those, the specific sanctions don't really have that much teeth to them. they would like to see sanctions

say, 150 individuals or companies, rather than six to 10 they do from time to time. it will be important to follow up to see what the treasury department does with the executive order, coming from the white house, coming from president trump. if we see bigger lifts of sanctions over the next three months or so, i always think when people or countries or are pinned against the wall, north korea or china, a lot of types they're interested in covering their own financial heiny. sophisticated financial talk i'm sharing with you. when s&p late last night downgraded china's debt, it is still a-plus, that is much better than ours by the way, they cited all the credit how they're taking on a lot of debt and how worrisome that is getting. you have a president saying we're not that keen doing that much more business with you. we think you're getting better part of this deal than we are. he always said that now he is practicing it. and then using north korea as sort of a wedge to say, you got

to change things, or to hell with you. now, that is economically a problem for china, no matter what it feels about donald trump, no matter what it feels about the united states, you don't need that kind of a headache, do you? >> no. obviously, after issuing this threat, obviously china has now acted. i think you're absolutely right though. it is important to see what the follow through is because we will start to see little things trickle out, you know about certain deals that still happen, that have some sort of a pass-through with north koreans. those will come out one at a time. it will be important to see how the chinese follow up with what they have said here. neil: they have lied before, no disparagement to the chinese. they lied about their economic output. >> of course. neil: remember one quarter, we grew at 13%. come on. so they're a little creative with their accounting how they're doing. now pressure is on. they have to do something, right? >> they absolutely do. pressure is on.

we will continue to follow this we'll follow what the treasury department in the united states does. i think, the idea that this might not get much coverage, this will then spark everyone to follow up with how these things actually go through. neil: yeah. i am waiting to see how much coverage it gets, meantime. erin, thank you very, very much. if you like donald trump, do not like donald trump, if you trust chinese, the world can agree the north korean leader is a nutcase. this put him in a corner with the united states and for the first time potentially, with china. we'll have more after this. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

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>> in the order will give the treasury department discretion to sanction any bank that knowingly conducts or facilitate significant transactions tied to trade with north korea. and again, i want to just say and bank president xi of china for the variable may be made today. you do you are -- it takes a town like ours to grasp the significance of what the president just said they are. of course, economics and financial matters make it out, but the reason that is a significant development is every

one of donald trump's predecessors in the white house, going back to george bush senior had tried to have the chinese work whatever influence or muscle they could to get the north koreans to behave, stop the missile testing, stop. there is a point at which the chinese say we are not going to do that. they do a lot of businesses that north korea and secretly a lot of that is funneled through their banks. they do have a central bank and the central bank calls the shots and at the central bank is now studying this has to stop. we don't know the means of which this happening. we don't know the pressure exerted to have been and we know possible china is fine as it has about it numbers in the past. maybe this is much ado about nothing. president trump has the

president to commit to send dean no other u.s. president has been able to do. it is still early. it stops. north korea stops. the loans, transactions, and pass back and forth between our two countries and their member banks support. all of that freezes and stops here that might seem a little nerdy to a lot of you. frozen bank account. but it could be significant and it just could avoid war. now you're paying attention and array. no matter what you think of donald trump, that could be a big deal. how did this happen and what does it mean going forward to some other initiatives the president had? we know he was working the steel for a while. we know us well the president was trying to exert the utmost pressure saying as he has always said the chinese made us a lot more than we need them even though they buy a lot of our debt to compound things and i suspect this was a development

here. late last night, the s&p ratings agency, don't cry for china. they have an a+ rating which is still pretty high. but it was the first sign an agency that monitors this staff was saying you've got a lot of debt. you are piling on in light of day. the last thing. blake burman, that's what they call a one-two punch. the president talking about this angle in which he confirmed the reports which you just laid out, the pressure that china can a central bank has been on within the country to stop dealing with the north korean customers than freezeout or unwind the accounts of current customers, but the president there as he was sitting next to the leaders of south japan giving props and kudos to president xi saying thank you for doing this, we

appreciate it, but the president trying to walk a fine line, saying as he unveiled this executive order, hey look, this is. north korea and really no one else in particular. of course, that being somewhat of a message saying we are not trained to single you out here, but thank you for doing what you did. as for the executive order itself, and the president picked through a couple topline measures in which the targets individuals, company institutions that do business with north korea said that the united states will through the treasury department look at other institutions at the north korea to see how maybe they could target those as well. all of this comes back to the country continuing to fire off missiles. the bottom line from president trump as it related to north korea was for countries all across the world that do business. his message with this. it is either asked or it is then. >> foreign banks will face a clear choice for business at the

united states or facilitate trade with the lawless regime in north korea. reporter: as the cameras are meeting, the president and the leaders of south korea and japan, president trump was asked if dialogue is still possible with north korea and he repeated twice coming meal, why not, why not. we will see. >> thank you my friend very, very much. senator mike rounds for the beautiful state of south dakota. what you think of the significance of this and how optimistic are you that the chinese will deliver on this? >> it's a move in the right direction. one more opportunity to which is economically to begin with. they do business with chinese banks. some of them are larger than others. we have not gone after the larger ones and we have some

smaller ones. this is an opportunity to send a message to the larger chinese bank and that makes an impact on china. the president has recognized the fact he is actually recognizing. he is not doing that because he is trying to help the united states. he's doing that because he understands the impact in china and he knows right now this is not a stable situation and it's very clear the situation in north korea has to be resolved. north korea has the calm of born to china. they wanted stability and now they don't have stability. they also wanted a partner that wasn't necessarily trying to counterfeit their currency. north korea counterfeit currency. they wanted a neighbor who wasn't going to come in and create corruption and opportunities for corruption in and around china.

this is for china to clean up and create stability for themselves on that border and recognize the current regime is not doing that. the fact that they are actually working with us, it appears as for their state and works favorably for us at this time. >> as he suddenly talked about this in the past as well as what you can believe china all the time when they have a double-digit quarters with 13%, i had no doubt you group doubt you grew. doubt you group it could not have grown not much. obviously, some of the material and info we get out of them could be a little suspicious so they can stretch the facts. this is something we can quickly prove they are following up on or not. i hope they can make sure we can because this would be the closest thing to avoiding war with prior president dating back 30 years.

>> your explanation earlier was as good as they could be and what our options are and if we can bring china and for their own purposes to provide the ability in that area. what they don't want our u.s. troops on the southern border. that's what they don't want. they are happy with another country in between. their first choice would be to stabilize there. the problem now is it is not stable. trent did you think they're afraid -- i'm sorry, senator. you think they are afraid that created a frank and time by propping up this one a take and continues to fire off missiles and continue to do so that now it is beyond the point of control. let's do everything we can to prevent money, but this none is out of control. >> i think it's come to that

conclusion. right now he is doing damage to them as well. he's part of those in the provinces there. china actually had a sponsor program to try to promote business deals in north korea. we actually held testimony and discussion enter banking committee about two weeks ago on that particular issue and they tried to get cooperation between north korea and chinese businesses. what they are finding out is the corruption coming out of the regime and the demand on the part of the north korean regime has promoted disruption in that area. they recognize that and that does not have to move forward and eliminate corruption within his own party or within the government in those provinces. neil: do you think it's a little bit outside of this discussion, senator, that this tough at the president has taken with an executive order to go after those who do business with north

korea appeared across the globe. will this help the president on things like getting tax cuts through and maybe the health care we worked through or is this an isolated incident, leave it at that to be significant enough to curtail the north koreans that there's benefits, great. >> there's two parts. first of all, the president does a lot of tweeting and so forth. what he says there is an indication of a casual conversation with the public, his action, signing bills, actually creating a constitutional majority on the united states for the majority. those actions when they are successful like that, that brings them more credibility and gives him the opportunity to leverage that when it comes to negotiating and it's a matter of producing the result.

and economic relationships with north korea are going to be taken on and feel the pain of this. that's a positive thing for this administration. neil: thank you for taking the time. we will look at the fallout from all this and understand and try to get appreciation. the dow is down about 3.5 points, concerned about the s&p downgrade as well in their debt level hitting pretty high levels. nothing like ours on a per capita basis, but i nonetheless. the latest of puerto rico still without power. a lot of people still asking when it will be back. some of them told how bout was.

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tree and do you know, i don't think in puerto rico that much about china and whether they will help us at the north koreans and all of that. they are worried about not having power because that is the case for virtually the entire islands. everybody after maria which is now strengthened to a category three storm. connell mcshane has the latest. reporter: still a major hurricane. the dominican republic and turks and caicos have the ability to deal with this everyday.

absolutely devastating for puerto rico yesterday has to look at the latest track on it. i've been watching him coming into the newsroom throughout the day today, the worst of the worst, uprooted trees and widespread flooding, more than 11,000 people in shelters around the island. more than anything else comments to power. no electricity at all in puerto rico must have a generator. to assess how bad things are has been difficult. something president trump talked about earlier today in new york. >> their electrical grid is destroyed. their electrical grid is totally destroyed and so many other things. we are starting the process now and we will work with the governor of puerto rico, but puerto rico is a whole different category in many ways. reporter: well, the strongest hurricane to hit a more than 80

years can take months to be restored in some spots are being told the president did approve a disaster declaration before maria came to puerto rico. that makes the federal funding available. fema already spread income heading in in as the storm moves out. watching today the prime minister tani dominicana said at least 15 people are dead there. 20 now missing on the caribbean island and its remarkable where it was before puerto rico to tell you how damaging the storm is. puerto rico still trying to assess the damage. neil: thank you, connell mcshane. of course he runs a sandals resort empire. dutch is what it is you're beautiful and pirate back. you have a lot of beautiful resorts in his entire neck of the woods. how are they holding up? >> hello, neil, how are you?

we got roughed up in turks and capos. we hope they come back together again, better than before. this has been a rough -- maria is a rough storm. neil: they were ready for it. they dealt with irma and some of these other sideswiping storms, but then this one came in obviously the flooding and water, how did you handle those that were already vacationing that your resorts, working there, how is it going now? >> we are ready for these things when they come. it is those strong, our job is to look after aghast, the staff, the communities. we carry out services during the

hurricanes. we have 120, 130%. you know power is going to go. in this case. the air conditioning, everything they are. so we survive these storms very well. i will try and help the communities and to get us further. a lot of the communities, turks and capos hot a lot of damage. however, a lot of the damage was -- i'll tell you what. after andrew, the building codes changed for florida. i mean, all the beaches turks and caicos resort and a lot of

the turks and capos uses those building chords. in the meantime, a tremendous amount of cleanup. a lot of stuff to make sure the schools up in time, the kids are back to work and get your teams together to fix back home. make sure there's as much as you can do is done. we have a team come in the outcome and that is so good at this it's amazing. we spread out, we are out there in the resorts in the other islands. we bring them in to have six how the government and i think our team does an amazing job away. in the meantime, we have a reopening, but we have had some

of the most amazing gas. then try and help out as much as the staff in so many ways. neil: i am not at all surprised, gordon. i wish you well with the people who work there and of course our vacationing there were opening two very soon. below, gordon. thank you for taking the time. >> thank you, neil. neil: in the meantime, the president will have a one-on-one meeting with the japanese prime minister chin so a very soon. obviously singing for talking diplomacy and talk, talk, talk. that is overburdened and "the new york times" editorial, prioritizing diplomacy and exercising the importance of dialogue will not work with north korea. the president pushed one last diplomatic effort here with china, but other u.s. presidents have tried and it worked. after this.

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neil: all right. we are not that far away from a bilateral meeting. this is typical for presidents when you have the u.n. in town. this president having a quite a few of these meetings. the urgency with north korea. but when they have a meeting to talk to the press afterward, of course we will take you to that. what is getting all the buzz right now is certainly the financial circles, significance of the chinese doing something prior presidents have tried for the better part of three decades to get china to intervene on our behalf to calm the north koreans down, get them over this nuclear fixation increase the funding they have laura please try to and that apparently succeeded or the president outlining the plan with the chinese border at the boss of all their banks, not like our federal reserve.

the federal reserve can say how many reserves to keep on hand. that is very different in china where they can so just stop it. they are told when it comes to north korea, just stop. all of our banks, just stop dealing with north korea. former navy seal commander dave sears. the devil is in the details i am sure. what do you think of this and whether the chinese will keep her word? >> i think it's good news. definitely a step in the right direction. still up for that they have to take. but they keep their word? i believe they will. china's calculus is changing. china was never really in their interest to counter north korea because they maintain some stability in the region. now that calculus is changing. >> he said that so much better than i. the one thing i do wonder,

though, is whether it's too late. i don't want to be cynical or jaded, but is north korea so overboard but it's got what it means to continue doing what it's doing? what do you think? >> i think they do have what they need or that is for the military option piece comes in. i'm not just talking about some preemptive strike. i'm talking about ballistic missile defense primarily. that's a huge one. we have to demonstrate the capability if they do pursue this path. republican national effort behind ballistic missile defense. >> let's say they launched another missile. i always love these particular pictures because it looks like he's at the academy awards. he's not. he's at the china legislative assembly. one of the things he's been doing that being the na, the sophistication of these missiles further and further more

powerful and is well along on that process here. the chinese themselves are worried about it to the point that now they are concerned for their region. probably too late, but how militarily does that free up our options on whether the chinese seem to be just as concerned. for example, if we shoot down one of their missiles on the next launch, would that be deemed a provocative act on the part of the chinese? >> i believe like all things in diplomacy and international relations you have to begin establishing a narrative and talk to the chinese and let them know this is a defensive measure. we can't guarantee where the missile is going to mow it can't guarantee its payload is. this is a defensive measure and we should put it that way. leaving their international airspace and going into other international airspace as a danger to shipping, aircraft and we are in our rates to shoot it

down. start using that narrative. neil: we started with china. we haven't mentioned russia. we haven't got a comment with russia. of course you taught them helping north korea in their own way. what do we do with the iranians and especially signs we are getting very close to ripping up the agreement? what do you think? >> iran is nearing north korea. they are watching all this occurred. where we are right as we kick the can down the road. look at the agreement, the five plus one agreement, basically it was never intended to prevent iran from getting a nuclear weapon. it is meant to kick the can down the road. that's how it's established. it's ridiculous. we need to revisit it, throat in a shorter put harsher pieces on it. that's very difficult. neil: thank you for your service to this country. former navy seal commander.

thank you. neil: the federal reserve meanwhile is in the middle of unloading for $.2 trillion. the belief seems to be that once i start, interest rates are going to pick up. we will see.

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neil: all right. i think this is a bilateral meeting with the prime minister of that country. the president now speaking. >> on trade anonymously very importantly discussing the details of north korea with also south korea. so, we will continue to dialogue your relationship with japan and the united states and it will continue on without way. i look forward to discussing some things that the group is

here specifically to discuss and we will be reporting back to you later. thank you all very much. you heard about what china was doing today in terms of the banking system. it was a tremendous move and we have great respect and we also would like to thank president xi of china. that was a great and he did today. thank you very much. [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] >> translator: i would like to express my heartfelt appreciation to donald. first of all, in your remarks to the u.n. general assembly, [inaudible] and for the parents as well as for the family members of those who have been abducted by north

korea. your message was very, very encouraging and i do appreciate your letter. [speaking in native tongue] [speaking in native tongue] >> translator: for us, the key is to change the policy of north korea and dialogue for the state of dialogue would not produce anything, that he at this moment is to exercise and apply pressure for north korea and to gather with donald, we have successfully demonstrating our strong will to exercise pressure against north korea and that is

actually the implication of the international community to address this challenge. i assume making every effort with you and also with other members of the international community of north korea. [speaking in native tongue] >> translator: so today i very much look forward to our discussion with a focus on the issue of north korea and other issues and by doing not giving hope to solidify our alliance and partnership. >> mr. president, can you answer questions for people with

preexisting conditions? neil: all right. there is a quick question shouted out about the latest graham-cassidy measure, from the president covered for preexisting conditions. the president treated out he would not sign graham-cassidy. if they did not include coverage for such preexisting conditions. that was not the just store the focus of this brief interlude with the price him in the japanese prime minister were they up the ante on the pressure to cease and desist nuclear missile conversations and other president had failed at doing and that is to get the chinese to play ball and exert pressure on north koreans in a way that it never been achieved before to get the chinese banking system to stop doing anything with

north korea. other individual banks have been sighted in the past. it does little good because it's like cockroaches of money. find another place and another avenue in the money isn't going to north koreans. the chinese getting their word they will crack down through the central bank is sending out the marching orders that no financial institution, remember controls all the strings to do any business with pyongyang. to market watchers, "the wall street journal" editorial board member, maxims.com cofounder, let me get your take on the significance of this. much depends on whether the chinese made good on this and honestly follow through on this. it would appear they wouldn't because it would be increasingly in their interest. what do you think? >> it in their interest at this point as they are more and more about a global player,

especially with the debt downgrade, the money they borrow from everybody else did they play by the rules may be than 10 years ago, 20 years ago before they were such big our worst. that makes you a big player in the global financial market. neil: one way to see the markets buffeted if you look like the chinese were doing squat and this was escalating quickly towards war, but do you think this is going to deliver the goods? would you think? >> is that to make him a meal? neil: yes, it is. i apologize. >> they will always continue to walk that fine line. they want to control the economy. they don't want to let go of any political freedom and economic freedom always has a link to eventual political freedom. so you know, they are going to do what they have to do to keep growing and edge their way into continuing to be a world player in the world economy. but they are going to do as little as possible i think in

terms of really letting the economy be more free so that they can control the political scene. neil: we can talk about banking and the two shins and all of this, but the goal here is to avoid millions of people if you think about it. the goal is to avoid what could easily turn into world war iii. can the financial pressure be such that even dealing with the craziest of rogue regimes, this can do the trick, this can avoid just about? >> i don't know. i'm not the world's foremost authority on north korea by any means, but it does seem the great question here is what is the nature of china's influence and how do they exert it? it doesn't seem to me that day and the way they conduct themselves on the world stage would be willing to have sort of a crazed pit bull that they have no control over sitting out on the front porch. and yeah, that is kind of what it's been like.

you can say gee can say gee, it would only crack down on the financial things. you have the world's third most powerful military sitting on the doorstep of the nutty little guy and that doesn't seem, if that can control them i don't know how banking sanctions will. >> the problem is china has no interest in seeing that peninsula go the way of south korea. they have a certain interest in keeping that nutty little guy they are. they don't want him to be nuclear. but they want him to be sort of a counterbalance to south korea and to the u.s. neil: i think you are right. they will be happy doing that, just don't be too agitating. of course we will see how this proceeds here. but if this president can somehow find a way through the chinese, the rather sanctions to avoid this festering, do you think it helps him in other areas come in the areas that

markets are focused on like tax cuts, like maybe yet another repeal effort of obamacare? what do you think? >> know what he would be more happy if americans not get involved and let other countries take other problems like hillary probably would have been in these areas. if you can get the chinese to take care of it, that's a win on domestic issues. i was wonder china has benefits to having regions they are an economic decay because it makes them essentially more powerful economically and politically. north korea was twice as big. you always want to know what their angle is there. it's a win if we don't have to get involved in to the police force of that region. not become a superpower either taking over that area. neil: i want to thank you very much. we are keeping eyes on development and what confessions were made to get the chinese to this point or whether they will deliver on that. we also want to focus on what's

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neil: all right. apple with the fancy new watch, doesn't have to be tethered to the phonon that was the big draw to it. no such patches for those wanting to buy the stock however. hillary gone with the latest on what's going on. hillary. >> apple's new watch is hitting stores tomorrow, but the biggest selling point to make calls on the go doesn't work 100% of the time and you are right. apple shares down two days in a row and respond to hitting the lowest level in over 50 days and knocking out 20 points out that out. apple confirmed that the watch with lte has trouble using it out connection when it tries to join an unauthenticated wi-fi network. here's what this really means for consumers. but do you take your apple watch

on a quick coffee run. if you connected to the wi-fi before another device coming your apple watch will recognize it and try to join the network. if they have a splash page or require some more authentication, your apple watch won't be able to connect and it also won't switch over to lte. apple tells me they are trying to fix it as soon as possible, but no timeline yet on when an update will be released. user should know the update is about fixing the wi-fi glitch. it's not going to give users better cell connection on this apple watch. >> i don't have any problem with the aid comes out, but no indications yet of problems they are. >> right. no indications yet. a lot of this surrounding the apple watch about this transfer between lte and wi-fi in the reason the apple watch tumbled between the two is the same battery life. another thing that has received

scrutiny that have been able to test this out before it hits stores tomorrow. neil: hillary coming thank you very much. gerri willis on some other developments. the sec now disclosing a hack attack. this one involving a lot of questionable trades. what the latest? >> on the heels of equifax, an 11 page missive written by the sec chairman jay clayton revealing a hack of a thinker database familiar to any business journalists come a place you go to see public filing. page three of the statement describes the agencies were cybersecurity risks and clayton wrote to us. in august 2017, the commission learned in incident previously detected in 2016 may have provided the basis for illicit gain through training specifically a software vulnerability. the past filing component of our system was exploited and access to nonpublic info.

the chair says the vulnerability was later patched and continues to investigate the source of the hack working with authorities at the revelation raises questions about whether hackers use the filing to gain a trading advantage over other investors in illegal profits. i reached out to the sec today for details like what nonpublic info was taken or why did it take so long to announce? no further details were shared are also learning u.s. homeland security officials found out about the critical cybersecurity weaknesses in january. as i toss it back to you, the gao also said the sec was not always encrypting everything, not even sensitive information and they used unsupported software two months ago. back to you. neil: aqua facts still an issue right now. in fact, kind of checking things out months before this was apparently detected. deirdre bolton with more on

this. >> the hits keep on coming. i have a hard time believing this could exist or that could be wrong a year from now because as you mentioned there were two acts last march, then a huge mega one that affected 40% of the american population this past summer and cybersecurity experts all along the way saying you have vulnerabilities. here's some suggestions on how to fix them, the end result is basically 140 million americans had personal data. the perfect blueprint for people to impersonate you, opening a credit card, making a big mess of our credit because the summit kelly wright and indeed they are not so worried about you. neil: are there a lot of cases about going on proving they did steal it in some people are running around crazy doing that? >> they have not seen a big notch coming up yet for sale, which does make experts think this was a state run. neil: that would be the first

thing you look for. >> there are scammers, what i would call smalltime scammers to pick up on the flow of call people and say i am from aqua facts, give me your data. as we covered, do not give anyone your data. there is no reason for equifax to call you. just hang up the phone. the assorted scammers are really clever. they can actually make their phone ideas look as if it's coming from equifax. the crazier thing happening now is equifax has come out and said maybe freeze your credit. even if you go to one software developer who built a fake site using the equifax name and tons of people for weeks were going on this fake site. the silver lining, thank goodness, the software developer, not a bad that are, he was just doing it to prove a point. the equifax was on twitter

saying go to this site. when a software developer came back inside you realize you're posting a fake site? sorry for the confusion, here's the site. in the meantime, trans union, experian, two competitors must be either laughing and prepping, hopefully both their systems have fallen, but there are lawsuits coming out of the wall. i mean, class-action, finance and hedge fund people say you compromise my data, my client data. one suing for $500,000. neil: there is good news. it is your birthday. we have other good news, too. finally someone found a way to do with the north koreans, finally. after this.

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your parents have been ittalking about you for years.. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. knowing that the most important goals are yours. it's how edward jones makes sense of investing. trish: the dow down 37 points. president enter takenning folks. neil: dow down 37 points. president entearing host with every major lead on the block of the plan it. china's prime minister, of course, is on board with him, getting tough with north korea and president doing that. 3:00 p.m., his treasury secretary steve mnuchin will be announcing some of these new sanctions the president outlining against north korea as well as explaining it in a bit more detail, how the president

persuaded china to get its central bank behind an effort to freeze all banking transactions, with the country of north korea. the devil in the details, what they do. ambassador nikki haley will no doubt elaborate later on. trish regan right now. hey, trish. trish: i'm so happy they're doing that. neil: absolutely. trish: as i keep saying there is economic alternatives we should explore. this is one of them. neil: a big one. trish: thanks, neil. trish: president warning countries whose banks do business with north korea. we expect to hear a whole lot more about these actions from treasury secretary steve mnuchin in just a short time from now. that is coming up. all of this as we look that is soft lightly. i'm trish regan. welcome, everyone to the intelligence report. the president meeting with leaders of south korea and japan