he will take over at 12 noon. wait for it, charles. i have 15 seconds left. >> i got it. stuart: hand you a rising market. hand you a headline says within minutes we will be at 26,000. it is now 12 noon. take it. >> i will hold it too. charles: welcome to can veto coast to coast. i'm charles payne. investors are pushing stocks up despite the fierce. they tell us there is 25% chance for a shutdown. connell mcshane, deroy murdoch, "wall street journal" senior video reporter shelby holiday. a lot of people are sort of intrigued that the market is up in face of a shutdown. i did my own math. the markets have done extraordinarily well during these shutdowns. the last three shutdowns saw the market up 37%, 23%, 32%.

i'm rooting for it to shut down. >> we've all survived shutdowns. the challenge it is politically risky for both republicans and democrats. of they're in a mudslinging fight and hoping the other part has more mud on their face at end of the day. charles: deroy, forget about the market, only one year was the gdp down. i get back to the point. why are republican so afraid of this? >> they seem to think they will get burned. after the last shutdown they benefited midterm elections after that. depend who defines the terms of shutdown. he should do oval office address on friday evening as we go toward the countdown. lay out deal he is willing to sign. have the senate vote on it one by one, let democrats on camera decide if they shut down the

government and allow the government to continue in operation. >> shelby is right to separate between a market story and political story. to take the last shutdown we had in 2013, the market, participants in the market tended to focus what they were already focused on which was the federal reserve which was propping up the markets. the dow was up 180 points. over this particular shutdown, if we have one, investors well focus on what we focus on. if there is any worry, i would say high interest rates. one difference politically in the shutdown versus previous shutdowns we do have unified government which we never have in previous shutdowns. all three, the house, the senate and the white house are in the hand of the republicans and that is why some people may think they may pay higher political price. charles: i think they will pay a higher political price, the media will say they're fault, they are cold-hearted. they can't win with respect tote media. break through to connell's

point, i saw a survey from surveymonkey, more americans are starting to love the tax cuts. more americans are loving the economy. wait until february they see it in their own paycheck. >> that is the thing. if you avert the shutdown, continue business as usual, actually a functional government people sit, realize, wow this tax cut is great for me. all the focus is on dysfunction in washington. come on the heels of president trump's controversial comments everyone heard a million times. media can't stop talking about it. that has thrown a wrench in the negotiating process. i think deroy's idea come out friday to say what he is willing to sign but he is not consistent on what he is willing to sign. there is a lot of confusion as well. charles: deroy, the out come of the presidential election, part of that mandate is for smalling government. what we learned in the last shutdown and others there are a whole lot of quote, non-essential personnel and lot of spending waste. this could be a cathartic event

and clean up government once and for all. >> the president ought to lay out non-essential personnel, non-essential agencies duplicative took care of their missions back in the 30s and '40s. we electrified appalachia 60 years ago. why is that agency still in operation? if you want to see the problem avoided, give me a filibuster-proof senate majority in november. go on full political offensive on this from the oval office on friday evening. charles: unified message to shelby's point is problem for republicans, hasn't it? >> sell the tax cuts. there should be much more optimism. recent polls are starting to tick up a little bit, people are showing more optimism than they have in the past. messaging has been a problem since the beginning because i don't think they're necessarily unified. i don't think they necessarily see the world the same way, that they see the economy the same way. there are still divisions we saw them last week. we've seen them come out in reporting today, from john roberts about the back and forth

between lindsey graham and president. there is division in the party. if they are unified they have a pretty good economic message to sell. i think there is logic to what shelby was getting at a few minutes ago, if you're at the white house do you cut a deal on immigration and daca, this isn't going to happen by friday, by that thinking do you cut the deal keep nearest focus on positive events, stock market mark going up, economy doing well, many close to the white house, many think this is opposite. go to battle. stand up for what we believe n they think the president can come out not only standing after a shutdown, maybe even politically benefiting from it. that is what they think. charles: you brought them to the point hey, the point was brought up they have the house, the senate and the white house, that is very rare and maybe this is when you take a shot. after all, if you have never take a stand, if you crumble to the same political pressures then you always end up with the same outcome. we're looking at a market right

now that is absolutely on fire. the dow is up almost 190 points right now. wall street is fixated on the economy. wall street is fixated on all the great economics and earnings coming out. can the president roll the dice, say you know what? i tried. i extended the olive branch, it was reject. take a stand here. >> he was in a position to do that few days ago before bombshell after meeting that they had at the white house where he made that comment, that really has derailed negotiating power. charles: why has that derailed the idea these are major things happening here, wall, immigration, reform, daca? why would have so-called bad word that may or may not have been said derail something, all of these major initiatives in the nation's interests? >> polarizing comment. some republicans see it very different from some democrats, but the democrats point -- charles: if i'm a democrat, deroy -- >> the feeling was the tone -- charles: folks under daca, 800,000, 900,000, i didn't cut a

deal because president trump insulted people during a meeting? stuart: that is exactly it. look do the democrats want a solution or democrats want an issue? i think they want an issue. they don't want it to be solved. they want to use it as skill let to knock over the head of president trump and republicans. you want a solution, we'll vote for that. if you want an issue we'll shut down the government. >> don't dismiss the issue polling wise, fix to daca is popular among trump supporters, if you throw in as cbs news cutting a deal where they get border wall funding it is more popular. there is an arguments that the democrats do have leverage because of that, they have a popular issue, unpopular president and something they can really continue to hammer him on, versus issues that the president is stronger on, the economy and stock market which behoove to keep them in the

news. white house agrees with what you're saying. >> white house wants a daca deal. charles: i believe president trump does want a deal. >> that was last week. charles: he hit the campaign trail and since he is sworn in. composition of a deal. thanks a lot, guys. house republicans offering another short-term spending solution but is it only kicking the can down the road? want to bring in house republican study commission chair from north carolina mark walker. sir, we have all kicking the can down the road is most overused term particularly associated with congress and spending. we haven't had a real spending solution in a real long time. i know it buys time but it hasn't bought solutions. >> no, not at this time it hasn't. i commend our budget committee this past year, putting a budget together, a balanced budget. we offered multiple pieces of legislation. not to throw too much shade to the senate but the house has done its judge on the budget process. we work with the senate

hopefully that will support things we are trying to accomplish. the cr is crap sandwich but the bread is getting more stale each time to your point. we have to hold the line. we heard in the last few minutes the democratic leadership are whipping against this cr, that would extend the chip and would delay the two major taxes, both ones very important to the american people, the cadillac tax, as well as medical device tax. so we think there is a play here. we don't like it but we also want to hear back from leadership what will be different 30 days, taking this vote than it is right now. charles: i don't know that anything would be different except the issues are on the table. we know that the democrats would like to have daca involved in some sort of a long-term solution. president trump wants immigration reform. he wants the wall. feels like both sides, really feels like both sides honestly would like to get something done. how do we get it done? how do we break through this logjam and actually find some

solutions in d.c.? >> charles, thank you for the question. number one, i would start with, we have to make sure we collect a few democrat senators to push forward on this number two, we have to point out the hypocrisy on the democrat side. border security even including voting for the wall has been by schumer, president obama, joe biden, hillary clinton, voted for the wall, said just because an individual makes it to america doesn't mean thaw get to stay because it creates a dangerous precedent for others who try. these are all positions that the democrats once held very vocal. so i think continue to point these incidents out and these positions will make sure that we have a chance to get our message to the american people which i think is crucial in this process. charles: so, representative walker, is it being cynical to suggest then that maybe in this case the democrats are okay to daca not going through despite promising to key constituents for a long time because they know republicans will be blamed for the shutdown, blamed for

inefficiencies in washington, the media will pounce on president trump and help them in midterm elections? is it cynical idea to believe that or something that could be a real possibility here? >> you nailed it. that is their exact play right now, conservatives we moved on some of this to offer some legal residence here. we can't move any farther. if democrats continue to move the goalpost, conservatives, republican as whole, we have to be willing to call their bluff on it. i have got just a belief, a fundamental belief in my heart, if we do this, message it correctly, this could turn around and bite the democrats much worse than they're anticipating. charles: would you be willing to accept a daca deal included immigration reform, funding for the wall? >> i don't know if i get all the question there. can you repeat that one more time, charles? charles: would you accept a deal that involves some sort of a path to citizenship, daca, with funding for the wall and immigration reform? >> we are not going to accept any kind of deal that creates a pathway to citizenship. we believe we're being more than

fair to offer some long-term legal capacity here, by overstepping that, putting these folks and some wonderful people ahead of line of people come here tried to obey follow our laws, this is position democrats once held, compromising to that degree would not do anything for the american people. charles: representative mark walker, thank you very much. appreciate it. >> thanks, charles. charles: guys, pretty crazy down in d.c. neil will be all over it, live in d.c. this weekend with the fallout from the spending decision. the first "cavuto live" premiers this weekend. will we dethe dow above 26-k at the close. >> i'm going to be all over that. i hope you're making money. tune in, 6:00 p.m., "making money." i will bring you up-to-date. ooooooh snap!!

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charles: dow on pace for record close. could close above 26,000 for the first time despite a potential government shut down. how high can the market go here? deirdre bolton, mark murphy and

chris hogan. i start with you on the market side we're at it again but the resolve is still there. >> the resolve is still there. main thing people are watching. companies hold on to more of each dollar they make. look at the dow, say 26,000 for the first time ever. what you have to look it is not expensive because you're seeing earnings expand, seeing bottom line expand. market still has room to run to the upside. >> p-e ratio, markets are moving up, p-e ratio is not necessarily moving up, because underlying fundamentals justifying that? >> market moves up even further. there is p-e expansion. people will pay a higher price. charles: irrational exuberance phase. >> correct. charles: chris, a lot of people, as sort of a hunch, it has had a

hell of a run, some people look at yesterday a yellow flag. maybe i should cash out here. you're retirement expert. people guessing tops and is dangerous thing. >> last things you want to time the market or chase trend. be superclear what it is you're trying to achieve and process that will help you get there. you have to stay calm. don't be chicken little. based on reality. what tweaks should i make. where am i as far as long-term strategy and is my plan working? charles: deirdre, what are your thoughts, while tech led the parade, they stumbled in december. came back strong earlier in the first week or so, not necessarily dominant role that they had early in the round. >> on friday you remember, we had amazon, google, microsoft and netflix, apple, all at record highs. charles: right. >> these companies, they still have cash, tons of cash, right?

that is helping companies. bring back money overseas for one time low, hope raiment. 15 1/2%. that is significantly less than what it was. and then every single dollar they make overseas, forgiveness rate, right? charles: right. >> we're like rest of the does steeled world. they do not pay revenue on things coming back. for my money, tech is still a good place to look. there is so much cash. we talk about this with amazon, talk about this with apple and netflix. they have the money. if you look at earnings today, bank of america, goldman sachs, fine, lower profits but it was just a one-time kind of tax adjustment thing. still we're almost near record low unemployment. things look pretty good. charles: bank of america gave a target for apple, that would imply a $1.1 trillion market cap. amazing, but in different way, today, bitcoin.

it continues to free fall, trading below 10-k since december 1st. deirdre, obviously anxiety. talking 20,000. >> this is 1929 bitcoin, right. if you're living through this, if you bought a month ago, you are so unhappy today, you lost half your money. but if you bought a year ago as some members of your smart family did, you're still up 1000%. i will take that. charles: the 1929 of bitcoin is interesting because a lot of people missed the roaring '20s. at least you had the roaring 20's before you went bust. some people got bitcoin a week ago. >> what i say to people, if you can't explain exactly what bitcoin is, what it does, how you will use it and profit from it you shouldn't be buying it. it definitely got frothy a month ago. easy to say now. still even down here under 10,000, if you don't know exactly what bitcoin is, you have no -- >> so, so volatile when you buy it a month ago, loose half your

money a month later -- charles: most people don't know what it is. a lot of folks like libertarians and others, hate fiat currency. saw our financial crisis create it out of thin air, $5 trillion money. no central government can control it even though they're shutting down the exchanges. it is attractive to a lot of young people. should they go there but they're avoiding your traditional advice by going into bitcoin? >> we look back at day trading. it came on the scene. people were losing hundreds of thousands of dollars losing their nest egg. trends are dangerous in my mind. i will go slow and steady, stay focused. to young people out there, anytime you put all your eggs in one basket, you're not diversified. you run terrible risk putting everything this that wasket. >> this is a new market. it is unregulated. that is the point of it. you don't put money point to you, savings for retirement in bitcoin or blockchain companies

or anything near it. if you do it -- charles: 21-year-old third year college student in london throw 300 bucks in it today? >> i would. like asking for a friend, like crickets. charles: see you later. thanks a lot. do lead leaders of sanctuary city need sanctuary? guys like jerry brown and rahm emanuel could actually face criminal charges next. building a website in under an hour is easy with gocentral... ...from godaddy! in fact, 68% of people who have built their...

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charles: there it is. the dow hitting 26,000 again. remember it took seven trading days, shattering the record of 24 days. we didn't close it yesterday. the first time of course again, the quickest one-thousand point

climb in history. white house briefing top of the hour. sarah sanders is expected to face immigration questions. homeland security is pushing for leaders of sanctuary cities to face criminal charges. texas republican congressman brian babin. congressman, you have had these sanctuary cities, and now potentially sanctuary states almost dared the federal government and the trump administration to follow through on these threats. i mean could we actually finally see a crackdown? >> absolutely. i really commend the administration, the secretary of the department of homeland security, for doing this. it is just inconceivable that owe elected politicians, local and state put their own citizens in jeopardy the way they do by sank airy city and state

policies. i welcome this. it is greatly-needed. i tell you this, charles, these policies are putting our i.c.e. agents and other immigration officials at great risk as well. because they have to go into these communities, and try to arrest these criminal aliens, rather than having them turned over to them by the local enforcement agencies. charles: sure. what the process involve some sort of a legal process before that? could we see a series of court battles that actually draw this out so long it becomes almost inconsequential? >> you know what? these are activists courts that we have in many areas of the country with liberal politicians. their favorite tactic is to go to activist court and a judge. we've seen that happen with some of the executive orders of our president already. so i assume this is what they will probably try to do but, this is, no-brainer, charles. just unbelievable, that american

citizens are being murdered, raped, robbed and i have personally met with a lot of families of some of these victims. it is heart-wrenching to see this. it angers me greatly that we have this situation in our country. it is intolerable. charles: is it, sir, with all due respect, is there the possibility of a rahm emanuel or jerry brown doing a perp walk? could that backfire in the court of public sympathy? could it actually make them seem like sympathetic figures with federal marshals, you know, taking them out in cuffs somewhere? >> well, so often is the case they try to make it look like that but i think if the truth is known and and is reported on properly that we will see these victims, american citizens, legal aliens, people who are here and doing their jobs and making their communities better raising their children, and seeing them is the ones who are the true victims here, not

criminal aliens being proteched by these politicians. i think, i think it is, hopefully we won't see that happen but these local and state officials will start cooperating with the federal government, obeying the law. we are a nation of laws, not of individual. charles: sir we have less than a minute. i have to ask. we saw the governor of new jersey sworn in yesterday and he is suggesting that new jersey will now be the next sanctuary state. so instead of being deterred, more and more of these folks are being encouraged to go against federal law, sort of establish their own rules. >> i couldn't agree more. i mean this is a great example of the difference between the two parties. you know, up with believes in political correctness and diversity and all of the catch words of the left whereas, those are the democrats of course. and then the republicans believe in the rule of law and

protecting our citizens and national security. that's where it all boils down to. i think we're going to continue to see the stark contrast between the philosophies of our two parties. charles: absolutely. of course you could have diversity and inclusion and follow the rules of law as well. >> thank you. charles: sir, always appreciate your time. >> thank you, charles. charles: folks, grab your popcorn. president trump is expected to give out his fake news awards, i'm calling them the trumppies. will he make the battle with the media worse and can the get any worse? i'm excite about it. we'll talk about it next.

charles: white house press briefing less than an hour away. this as president trump is ready to give away his fake news awards today. blake burman at the white house

with the details. blake? reporter: charles, i should note this was not officially listed on the white house schedule that was put forth last night. the white house official who we were speaking with earlier today would not say if indeed there are definite plans for the president to give out what he is calling the fake news awards. it is just, i guess another day here at the white house where we kind of see how this may or may not shake out throughout the day but the president did say in a tweet as recent as last week that he intend doing this for the first time at some point today, writing quote, the fake news awards, going to the most corrupt and biased of mainstream media will be presented to losers on wednesday, january 17th, rather than this coming monday. the interest in and importance of these awars is far greater than anyone could have anticipated. there was a rush to the senate floor today in advance of from both democrats and republicans to speak out against the attacks that some senators see, seeing from president trump over the last year, two years, against

the media. that was led by senator jeff flake. >> simply put, it is the press's obligation to uncover the truth about power. it is the people's right to criticize their government and it is our job to take it. >> we can not allow this regimen of fake news and alternative facts and words like those to diminish our commitment to the basic constitutional protection of freedom of the press. reporter: senator john mccain penned an op-ed saying that the president's use of the word, and the phrase, fake news, has led to tyrants overseas using that phrase as well, in a manner not be used and followed by the commander-in-chief. in any event, charles, if this does happen today, we do not know in what form or what shape or what manner it might happen, on camera, off camera, twitter, et cetera. just one of those i guess, we'll see where the day takes us.

charles: absolutely. a lot of people are anticipating it. thanks a lot, blake. reporter: thanks. charles: president trump continuing the fake news fight bus does it add more fuel to the fire. charlie gasparino, does he make it things worse? >> i hope i get an wayward. charles: i think you're up for a couple. >> trump hater of the year. charles: definitely in there. >> here is the thing, it is fascinating from a business standpoint the attacks on the press have backfired tremendously on the president because as right as he is about the liberal bias of media, we all know that exists -- i worked in the mainstream media so-called, i consider us mainstream just so you know, what is nominally considered mainstream media, i worked at "wall street journal" before rupert murdoch bought it, i worked at "newsweek" magazine, beef it implode into something is isn't now, it was a real magazine, new york news day, there is liberal bias.

the reporters are openly sustain conservatives. i think it has backfired. he bailed out "the new york times." he bail out cnn the ratings are up. our ratings are up. everybody's ratings are up. he is really good for business. the notion if it is to put media back on heels, hurt the business model. he is having the opposite effect. one other thing his own approval ratings have not improved with this attack. charles: neither has the media's either. media has very low approval rating. >> they don't have to run for re-election. that is the whole thing. the media has low approval rating and higher profits. charles: every republican president that i can remember was called a racist by the mainstream media. >> absolutely. charles: every single one of them. they don't like them. there is overwhelming liberal bias. i read cnn 90% of their coverage on president trump has been negative. >> oh, yeah. charles: i don't think that would change. i don't think ever utter the

phrase fake news ever again would we see a shift in that arc to most favorable coverage. >> give you a little anecdote about me personally. i remember when i was at "newsday" back in 2004. when george w. bush ran against kerry. you remember the election night, exit polls had kerry winning the election. i'm telling you reporters at "newsday" at time, news day was much bigger place than it is now, michael isikoff worked there, i won't say he did this but mention as one of the people worked there, the reporters and writers were doing high 5s in the hallways as looked like bush would lose. he actually didn't lose. that is true. here is the thing, the problem from a business standpoint, i look at stuff in dollars and cents as business reporters this has failed. media ratings are up. doing the opposite. charles: last year "new york times" stock was up 34%, last time i checked that goes to your point but i think he is one of these people who wants to point it out anytime he

can but i want to talk about something else you know very well, you talked about long this before anyone else, that is ge's breakup. you were on top of it. i want first of all audience listen to former ge executive bob nardelli what he told the network back in december. >> i hope that, you know, i hope the swan song here isn't push down 28,000 corporate people, put them into businesses, move them out, sell the final three, all of sudden ge goes the way of westinghouse, would be a terrible saga for a legacy company. >> bob was one of the guys was considered to run the company. jack welch actually picked immelt over both bob and jay mcinerney. charles: jack welch hand-picked immelt? i had the feeling they never got along or did that develop subsequently? >> that was a post immelt taking over story. no he picked him. he thought he was personification of the perfect ceo.

good-looking ivy league guy. he was very good with politicians. charles: right. >> corporate boardroom. jack welch, here reality is this, jeff immelt was handed problems by the way, intractable problems. charles: a lot of major mistakes as well. he was there for over a decade. >> 16 years. charles: yeah. >> i'm saying that notion that jack welch handed him a pot of gold is not true. charles: he handed him the world's most valuable company. >> was pumped up at the high of market. i'm not criticizing jack. i love jack. there were issues there. this is where a book will come in, why was immelt the guy to be put in that job and -- charles: i think more importantly today shareholders are wondering if it will survive? >> if it doesn't survive it might be a good thing and here's why. if you sell one of the units, aircraft unit, $7 a share or $10 a share. charles: worth more broken up than it is together right now. >> used be under welch the whole was bigger than sum of the parts. they're thinking of it opposite

now. charles: it's a shame no matter what. folks reporters are gearing up for new rounds of questions after that sideshow yesterday. >> does the president wear dentures? >> are you ruling out things like early onset alzheimer's? are you looking at dementia-like symptoms? no anything you're keeping from us for privacy reasons? >> the weight at 239. that, seems just shy of obesity, right? >> you're confident of that number and did you do any measurements? >> recently the president appeared to slur his words giving an address. >> did you look into what the cause of that might have been overall you know what they say about the early bird... he gets the best deal on the perfect hotel by using tripadvisor! that's because tripadvisor lets you start your trip on the

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charles: wine country cashing in. wineries are set to save big under the new tax plan. hillary vaughn at winery in california. hillary? >> hey, charles. because of president trump's tax plan, the alcohol industry is keeping $4.2 billion that is here that they gave away last year, making it the biggest tax cut the wine industry has seen over 80 years. i talked to owner of alpha omega winery. he says after they suffered a million dollar loss when the wine country fires ripped through napa last fall, they recommend ad hiring freeze and payroll freeze. because of the tax cut, they're

giving all employees a 5% raise. he is getting ready to invest in new equipment. at the top of the list, a massive generator keep wine-making operations going in case they have a massive power outage again like they did during the fires. >> we made wine the old-fashioned way. there was no power. we were making wine like they used to back during biblical times. to have a backup generator we wouldn't do for the tax bill. reporter: the law chop ad regulation that charged wineries 50 cents more per gallon for wine over 14% alcohol, which he says was an orb temporary way for the -- arbitrary way for the federal government to squeeze more money out of the wine industry. >> winemakers think i have to make this wine under 13%, because my owner will be mad because it costs him 50 cents more. you shouldn't be making wine that way. reporter: baggett says the law

makes it easier for winemakers to focus on making a great bottle of wine instead of worrying about the bottom line which would lead to higher quality wine and lower cost for consumers. charles. charles: thank you, hillary. flu season shaping up to one of the worst in years. some officials say it could get worse. to dr. jennifer caudill how we stay healthy through it all. i don't know how anyone is immune or stay healthy. everyone i know has been sick or is sick already? >> charles, you're absolutely right. we're seeing more severe season than we're seeing in a long time. most of the states in the continental u.s. reporting widespread flu. mostly due to the h3n2 virus, that is one of the flu strains circulating that tends to be more virulent and cause hospitalization and more illness. probably why we're seeing more severity of illness. charles: this gets back to a lot of people that wonder, they hear

about risk involved in taking flu shots and those kind of things. >> right. charles: then you have people say, go out and do it, they still get sick. he have one in their house gets sick. it feels like a complete, complete guessing game with respect to the whole flu shot thing? >> sure, sure. i'm glad that you asked about that let me tell you something, what is not a guessing game the importance of getting a flu shot. to be honest i really want to say, go out get your flu shot, especially this is a more severe season. this is the thing, in any season the flu shot is never 100%. people say dr. jen, why should i get it, it is 10% number? the 10% number was based on awedaustralia models. the cbc said they think the vaccine effectiveness against the h3 is 30%. not as much as we want but better than nothing. if you get the flu shot, and still get the flu, it can lower duration and severity of

illness. it is not just protecting yourself and other people around you who may not fight off the flu so easily. that is the one sure bet about this, importance of getting a flu shot. that is important. charles: dr. caudill, thank you for being here. >> thank you. charles: white house press briefing in moments, they tried to find holes in the doctor's diagnosis he is in excellent health. >> can you as ses the president's mental fitness in office. >> he is taking cholesterol lowering medication and borderline obese and can you consider that excellent health? >> how can he follow his predecessor's example to be as fit as barack obama was? >> what is your take of all the doctors and clinicians across the country who have said in this president they see symptoms of this, that and the other? charles: to the "washington examiner"'s phil wegman how hard the media is

trying to find is something wrong with the president. phil, the media went crazy trying to prove president trump was crazy. >> for better part of 50 minutes they were asking about the president's mental fitness. there is no other word for this. they started to fat-sham the president. the questions were ridiculous. they were asking about friday chicken, about extra scoops of ice cream, about diet coke. everyone pretty much knows that president trump could stand to lose a few pound but this was ridiculous. charles: it was ridiculous and, but, what was really a more intriguing about it, as it went on they were incredulous. they couldn't see -- they started to veer toward the credibility of the doctor himself, dr. jackson, an admiral by the way, you know, they started to almost question his ability to know these things. i think one item that really blew them away was the president with the cognitive test

requesting that and the idea no other president did that. president trump was willing to take it, in part to dismiss some of this chatter about him not having his mental faculty. >> halfway through i figured reporters would ask to see the physician's medical license. somehow after a few minutes on webmd they became medical experts themselves. when you talk about credibility, the press needs to restore its own credibility throughout, we've seen this in 2016 and 2017. the way to do that is not rumormongering hypoconcon dry y, what we saw yesterday, that is one reason why the public doesn't trust the press. charles: it is not yesterday. it continued last night. hollywood directors offering $100,000 for accurate weight of the president. so obviously don't believe his weight or body mass index. some late-night comedian, only thing healthy about him he was

shaped like the food pyramid. the barbs went on and on, this not making media look so good, i think there is moral to the story. the president, has never been a drinker. he doesn't smoke. those are two of the main killers in this country anyway. he actually has led an exemplary lifestyle in some respects. >> people don't need to follow the president's fitness regimen. he is not a big believer in exercise. he avoided drinking and drugs. we had huskeyer executives in the past. we have huskey president right now, but that hasn't stopped him from being able to do the job, so right now, this sort of fear-mongering and speculation, that is only going to blow back on the people who engage in it. charles: also the president, doctor expects him to live a long normal life like anyone else. that, the dejection in the room was just palpable. you know, we'll see what happens

from here. i'm just not sure, phil. you're more optimistic. there will be introspection and say, golly, you know what? our disdain for the president was on full display for the world to see. maybe they will do it. maybe they will. maybe they can come around. >> i certainly hope so. look, no one wants to wish ill on anyone else. this is common decency. but it seemed like this president definitely, the press was hoping he would be sick. that is disappointing, disappointing, these days not unusual. before i let you go, today we have "the trumpies." i'm calling them the trumppys. the mainstream media love this. i bet a lot of folks want to be nominated? >> take a quick look at twitter. one thing journalists might not admit they have to know the president has been good for industry overall. he has been good for newspapers that have been critical of him. so i think that some of the

more, you know, skeptics journalists see this as a cap in their feather if got nominated for a trumpy. charles: the market is taking off like a rocket. we're well over 26,000. the idea there is a press briefing. here is question, will anyone, today, will anyone today in that white house briefing ask sarah huckabee sanders about the stock market rally? will anyone admit it exists? will it all be about president trump's body mass index. : . : :

>> welcome back to coast-to-coast. i'm charles payne. moments away from the white house briefing as the government shutdown looms over washington. investors are brushing off those concerns and crushing through 26000 again today. how likely is a government shutdown? i want to go to adam shapiro the latest. >> keep an eye on this because we went through a shut down in 2013. it lasted 13 days. if we do go into a shutdown, we expect employees, nonessential government workers at parks in those situations would be furloughed.

people who work for the tsa, air traffic control as well as the postal service, they keep working and there's no shutdown for them. if we go into the shutdown, it could create problems in 2013 the irs had to delay $4 billion in tax refunds. it actually delayed the 2014 tax filing season by two weeks because they were writing some of the forms and the code that we would've used back then. those are all the potential that could happen. here is what mick mulvaney from the office of management and budget said about where we are headed. >> it's a fact, the implementation of the tax deal. >> too early to tell, we've not been able to tell whether the folks working on doing the forms are accepted or non- excepted employees where they come to work during a shutdown. if there is a shutdown and able to implement the tax bill, it would be very temporary in nature appeared those folks wouldn't be able to work for a day or two that the government shutdown.

the impact on the overall tax bill would be negligible if not zero. >> charles, to wrap this up, congress would still keep working. the government employees who would be for furloughed, the last time this happened i got paid days off because although they do get their pay on time it was retro active when the shutdown ended. >> thank you very much. reaction from tennessee republican congressman diane black. thank you for joining us. >> it feel like all the pressures on the republican party, and it's so ironic in my mind because there's been 18 shutdown over 13 years. in the last three shutdowns the stock market was up 37%, 23% and 32%. are republicans endangered of cutting a deal that they don't want because of pr pressure? >> i think we will come out of

this just fine at the end of the day. there's always negotiations and as you know, here in congress, we wait until the last minute which i don't always agree with, but that's where we are on this continuing resolution. in my opinion we will get a deal. we cannot, at this time, you've indicated the stock market is doing well and we need to fund our military. this is very important. right now we have a military that is suffering from not being fully funded. this is important that we would show the american people that we can do our job, we can govern, and we can move forward before i have breaking news and i want your opinion on this. more good news from the tax reform, apple anticipated it will pump $350 billion into the economy thanks to repatriation. by the way, expected to add 20000 workers. with that kind of wind in your sails, with republican tax plan, hitting america like an economic prosperity bomb, you

certainly have a lot of strength going into these final days of negotiations. >> i believe we cannot stop this. we have talked about this for the last three years that we've been working on this tax reform bill and that if we could only get there we would see the results. we are seeing those now. have you already said we have wind at our back and it's the american people that benefit by this. the wages go up, the decrease in their burden on how many taxes they are paying, and we see something happening that hasn't happened in years and that is optimism. we don't need to have a government shutdown where we reversed that optimism and go into a pessimistic mode. >> of course at 350 billion be over the next three years. you started the interview by suggesting the last-minute crd because there's always a last-minute deal. but it doesn't resolve any of the underlying problems, and in this case, it feels like we've got an atmosphere where we know democrats want some

sort of a daca deal. trump wants a wall and immigration reform and i think the american people want all of that together. so, would it be a major mistake to say hey, let's take it to the final moments, kick the can down the road for five or six weeks and go back to the drawing board? >> i think the daca deal is one we can be optimistic about it we saw what happened with democrats and republicans and the media listening to what the issues are, i think we have to do this right. i don't think we should do it by a knee-jerk, we should have agreement between the democrats and republicans. let's continue to fund the government while we are working on a deal. get put into place the things we promised the market people. we secure our border and look at chain migration and the lottery visa program and we are also going to look at the daca which was a program that was put in place by the former president by executive order and it should come from

congress. charles: president trump says he will presented to congress to get the job done. for you, would a daca compromise be amnesty of a path to citizenship? is that something you would be open to in return for all the other items you just mentioned? >> those are pieces that are on the table. here's what i know. children came to these country with parents who were, who brought them here illegally. this was not something they asked for or even knew was happening to them. i think we have to realize that. the other end we do have to hold the parents accountable. i don't think there should be a path to citizenship for those parents because they broke the law and they should be held accountable. it is a different story with the children and we have to find a way to make sure we hold those accountable that broke the law, at the same time give an opportunity for those who had nothing to do with breaking the law and have lived in this country and abided by our laws in this

country. charles: one final thing. it looks like an extension on the chip program has been thrown in the mix, perhaps to make sure that a cr is a viable option so we don't have a government shutdown on friday. that is another area where it seems to me that republicans have some leverage to negotiate and get the things they want. >> i think there are two things. one is to say we are going to fund the children's health insurance program and it will be done for six years which is much more than even the democrats asked and the second thing is our military. how can the democrats say now i don't want to fund the military that keeps us safe. how can we not give them the tools they need to protect this country and keep them safe so they return home for their family. i don't know how you can make that case for your constituents whether you're a democrat or republican. i think all americans want to make sure we are taking care of the men and women who have

put their life on the line for this country and also children are taken care of with their health insurance. these are two pieces that i would think the democrats would not want to have a negative image of that in their own district. >> i would tend to agree with you. always a pleasure. thank you very much. >> thank you for having me. charles: this news just broke. another big company in america saying big-time jobs, a lot of jobs coming back to america. they say it's all because of tax reform. apple will accelerate its u.s. investments. mark, the repatriation part of this tax bill was belittled by the media and the democrats, they said it didn't work on the george bush, my work suggest that it did. this is huge news. the dividends from this tax plan have been overwhelming. no one in their gratis, president trump didn't think this kind of great news would materialize this quickly.

>> thank you for having me. actually, i think this is exactly what we expect from the tax reform which is the economy is going to get a short-term boost, a sugar hybrid this is unlike the george bush repatriation holiday, this is a permanent fix for international system. what i'm worried about is the additional debt from the tax reform, while it will boost the economy, ultimately it will slower economic growth if we don't get our debt under control. >> what about the notion, there's a lot of physical hawks and deficit hawks who moderated their tune to say if you look at ronald reagan supply-side economics, if we can get the engines of this economy growing and start get three or four or 5%, then we turn around and attack the debt that way but it's a possiblimpossible to attack that when you're not growing the economy. >> no question we can't six the debt without economic growth but there's no level of growth that would be subject to a tax. if were going to the economy

by adding to the debt, i think it will undermine itself because higher debt is bad for economic growth. charles: addressing the issues that create higher debt seem to be bad for political careers also. let's be honest. , do you see the political will of republicans maintaining the positions they have with the house and the senate and obviously the white house to ultimately say we are going to do something about the spread when americans vote them into office they've always heard were going to bring down the $20 trillion in debt because we care about our grandchildren. >> it feels like i'm searching for fiscal hawks and all we have right now is fiscal chickens. i'm not seeing the political will to do what we need to do which means controlling entitlement programs and raising back some of the revenue or all the revenue we last from the tax cuts to make sure these programs are funded.

i hope that come soon because trillion dollar deficits are just around the corner. >> as interest rates go up and it cost us more and more to fund the debt, perhaps one year will be a trillion dollars, what kind of impact, worst-case scenario would have on our economy. >> worst-case scenario interest rates do a big hop and there's a massive selloff of mobile debt. i don't think that's a likely scenario but it's not impossible and it's where were headed if we don't do anything to change our trajectory. >> i watched a movie last night called geo storm. it feels like an economic geo storm out there. >> thank you very much. charles: with the shutdown looming, neil will be johnny on the spot. he will be live with a special premiere. fox news, 10:00 a.m. eastern saturday. we're just moments away from the white house press briefing. we will bring it to you as soon as it begins. meanwhile stocks soar. records across the board. i will break it down.

by the way, you don't want to miss making money 6:00 p.m. eastern tonight.

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coast-to-coast. live on the floor of the new york stock exchange, the dow is 26000. take a look at the banks on the day of learning. you are seeing bank of america, goldman sachs, only charles schwab is eking out the gain. they have been talking about the tax overhaul. goldman sachs posted its first loss in six years. taking a look also, moving along to the dow, 26000. will today be the day we close above 26000? if so it will only be six trading days since 25000. >> the president plans for the rest of the week, tomorrow he will travel near pittsburgh pennsylvania.

agent kb began as a small family business and half century ago. 2017 was the best year in company history which they credit to the president's pro- job, pro- worker economic agenda. thanks to the tax cuts, h and k can expense one 100% of the investment they make new equipment in the same year they buy it. this means their investments into the company will be 50% higher than this past year. that means millions of dollars will be invested in growing their business rather than propping up the bloated government in washington. when they buy more trucks and equipment for the rental fleet, they hire more technicians to service them, by more service vehicles to transport those from customer site customer site and buy more parts from their suppliers to keep the rental fleet running. all of this economic activity spurred by the tax bill results in more jobs, higher wages in a brighter future. the president looks forward to spending time with some of the workers who are reaping the benefits of the tax cuts and reforms and we know this is just the beginning.

on friday we are excited to announce that the president will become the first sitting president to address the march for life from the white house live via satellite. this will take place from the rose garden. the president is committed to protecting the life of the unborn and he is excited to be part of this historic event. now, i guessed with us from the department of justice, ed callahan is here to discuss section 11 report which was released yesterday by the department of justice and the department of homeland security. i won't steal his thunder but this report highlights the urgent need for congress to adopt the immigration reform identified in the administration's priorities. i will bring him up now so he can make a statement, answer couple questions and, as usual, i know you will all be on your best behavior and ask him questions on this topic only and i will be happy to come back up and answer other questions. >> good afternoon.

my name is ed o'callaghan the member principal deputy assistant general in the national security division. in my capacity as principal deputy, i assist the act and attorney general and the supervision of the 350 dedicated investigators and prosecutors who carry out the departments highest priority. protecting the united states from threats to our national security. i've been with the national security division since november of last year. previously from 1999 until 2008 i was an assistant united states attorney in the southern district of new york. from 2005 until 2008 i was co-chief of the terrorism and national security unit in the southern district of new york and some of the cases i worked on included the investigation into the 911 attacks that occurred while i was an assistant united states attorney in the crime and terrorism unit.

i appreciate the opportunity to speak with you today about yesterday's release of the department of justice and department of homeland security report. the report titled after section 111-3780, protecting the nation from terrorist entry into the united states was a collaborative effort between the d.o.j. and dhs to respond to eo. [inaudible] to provide information to the american people regarding the number of foreign nationals charged with or convicted of terrorism -related offenses were removed from the united states based on terrorism related or other national security reasons. the justice department's national security division maintains a list of individuals convicted of international terrorism related charges and u.s. federal courts between september 11, 2001 and december 31 of 2016. as indicated in the report as

of december 31 of 2016, there are 549 individuals on the list of convictions of terrorism, international terrorism related offenses. a subsequent analysis of those 549 individuals convicted of international terrorism related offenses determines that approximately 73%, or 402 of these 549 individuals were foreign-born. further breakdown of the u.s. citizenship status of these individuals at the time of their respective condition convictions shows 254 were not united states citizens. 148 were foreign-born, naturalized and received u.s. citizenship in 147 were citizens by birth. >> i will point out that one of the cases highlighted in the section 11 report refers to a defendant who we convicted in the southern district of new york. he came into the united states

in 1980 as a family member of a legal, permanent resident. he was ultimately convicted of providing material support to al qaeda, it was a case that i supervised when i was chief of the terrorism unit unit. the evidence in that trial showed that he attempted to assist other individuals who were affiliated with al qaeda to try to enter the united states based on false statements and immigration documents and in fact he assisted and took on the persona of one of the individuals who he was attempting to get back into the united states to commit terrorist acts here. the individual treatments provided by that individual demonstrated that he was attempting to come back into the united states to commit a tax on gas stations in new york, my hometown, and by the fact that we were able to prosecute him it stopped that

attempt to engage in official terrorist attacks here in the united states. additional items included in your report demonstrate that the u.s. immigrations and customs enforcement provided information that shows there has been approximately 1716 removals of aliens since september 11, 2001, a cause of national security concerns, a designation that is determined by ice within the department of homeland security. obviously there are certain times where, although there are national security concerns about foreign-born individuals in the u.s., federal prosecution for one reason or another, is not the suitable way to deal with the threat posed by that individual. the immigration authorities have other tools at their disposal, one of them is the removal tool which is cited by ice in the section 11 report. it is the case that they are

not showing any signs of relenting. in fiscal year 2017 alone, dhs encoded 2554 individuals on terrorists watchlist. those individuals were attempting to get into the united states. additional statistics include the fact that between october 1, 2011 and september 30, 2017, a total of 355,000, 345 noncitizen offenders were arrested after previously being convicted of an aggravated felony or two or more crimes each punishable by more than one year. during that same time according to dhs, noncitizen offenders were removed from the united states after the conviction of a aggravated felony or two or more felonies.

between 2010 and 2017, customs and border protection identified and prevented the boarding of 73261 foreign travelers on flights from the united states who may have presented an immigration or security risk. in a statement yesterday about the report, attorney general sessions indicated there are currently thousands of terrorism -related investigations into thousands of people in the united states including hundreds of people who came here as refugees. in addition, surveys previous commissioned by d.o.j. components, the report noted there are an estimated 23 - 27 honor killings in the united states and approximately half a million women and girls in the u.s. at risk of undergoing the abhorrent practice of female genital mutilation. in october of last year the trump administration laid out a series of immigration policy

objectives to ensure safe and lawful admission to the united states, defend the safety and security of our country, and protect american workers and taxpayers. there are three pillars to this immigration policy. border security, immigration enforcement, and a merit-based immigration system. from the cases i have worked on, i know that foreign terrorist organizations, transnational criminal organizations, and other individuals and entities that wish to harm the united states undoubtably seek to exploit weaknesses in our immigration system and it benefits them in accomplishing their unlawful schemes. president trump's immigration policy is designed to serve the interest of national security. enhanced vetting and screening and continuing screening promote the discovery of information that would help immigration law enforcement authorities identify foreigners who may pose national security threats to the american people. rather than basing it decisions on programs that lack accountability like diversity batteries and extended family chain

migration, adopting a merit-based system rewards skills and qualities that include but are not limited to education, english language proficiency or fluency, and/or job skills. as a prosecutor test with protecting our nation security, i know some of our cases have involved exploitation of vulnerabilities in our current immigration system. the attorney general is committed to restoring law and order in our immigration system so that we can address and eliminate the vulnerabilities that could be exploited by those seeking to undermine our public safety. those are my brief remarks and i'm happy to take questions. >> do you find it alarming that more than 25% of people convicted of international terrorism related charges were natural born citizens and what is the administration doing to address that issue? >> the department of justice enforcement of the international terrorism laws are focused on the conduct

which is found to be committed by individuals, no matter where they are born, this to statistics that you have compiled in this way in response to the executive orders demonstrate that the international terrorism offenses that we have prosecuted and achieved convictions on, there are 73% of foreign-born spread. >> we are going to prosecute anyone we can make cases against that are posing threats to national security of the united states. the statistics brought before you respond directly to the directive in the executive order about international terrorism offensive and now those statistics that we keep. >> thank you, sir. >> thank you. has there been any change in the administrations stated

policy about using guantánamo in dealing with international terrorists. >> i'm not aware of any change in the administrations stated use of guantánamo. the ministration is committed to enforcing our terrorism laws and any law that we can against anyone who will present harm to the united states. there are considerations as to how any potential case may be addressed so that any threat that is posed by any individual is neutralized. the administration and attorney general sessions are committed to all options as to how we can neutralize any threats posed by anyone who may fall into a terrorism category. >> guantánamo will still be around for a while and there are no plans. >> i'm not aware of any administration plans, i can

tell you it is still around. >> thank you. i'm hoping you can explain some of your logic here, you talked about the immigration system and reforming immigration system to protect americans in the united states, but a lot of the crimes that you are using as examples to justify changing the immigration system are crimes that would've taken place outside the united states, people wanting to travel outside the united states to fight, providing support to fighters outside the united states and i understand there is a nexus with u.s. forces in those regions, but the point is to reform the immigration system to protect americans. can you provide more information, more statistics that show doing so would have

prevented people from coming in who committed crimes inside the united states? you have any better examples of what you're trying to say. >> so a few points to that, one is this is the first iteration of this report in response to the executive orders directives and we come in working together with the hr certainly expect to have more statistics and address some of the issues we weren't able to address in this initial report in future iterations of this report. in terms of the cases that are reported, if you do look at the cases, some of which are included in the section 11 report, there are certainly cases that relate conduct that has been committed in the united states. conduct that is in support of al qaeda or aces so there are plenty of examples of conduct that was actually committed in the united states which, in a way that we define it qualifies as an international terrorism investigation

because it relates to a foreign terrorist organization or terrorism conduct. thirdly i would say, of course we are trying to prevent, through anyway we can, the administration supports us, we are trying to prevent terrorist attacks. so, the most successful prosecution that i've ever been involved with are ones where we actually are able to stop it at a conspiracy stage so there are individuals who clearly, through their conduct an activity and what they are saying are agreeing to commit a terrorist act in furtherance of the goals of a foreign terrorist organization, but we in conjunction with other law enforcement partners are able to prevent it, convict them and include them in our antiterrorism defense. >> i'm just trying to figure out, maybe i'm not understanding, how does preventing people from coming in who were conspiring in syria would have protected

people in the united states. these are international terrorism crimes and they weren't all planning attacks. they are planning things overseas and you want to reform the immigration system and it seems like the focus there should be on things that people did in the united states to people in the united states. the administration, immigration reforms focused on getting more information. enhanced screening, enhanced vetting, more information, more agents and officers asking more questions, more prosecutors prosecuting more cases. all of that, in conjunction with the national security efforts by the administration will lead to a safer united states. i firmly believe that and i know that the fact that there are individuals here in the

united states that are willing, that are in support of isis related philosophies, engage in and talk about engaging in committing acts here in the united states that we are able to prevent. i think that makes the american people feel safer and i know the trumpet ministration that. >> given their focused on national security as it relates to the arrest of the fbi agents, can you talk about the significance of that arrest? >> i will say that is very important as demonstrated in the complaint that was unsealed, related to that case that the former cia officer retained information. as that case proceeds to the courts i would expect that more information about that conduct, that underlies those charges and the complaint will

come out, but as of now that case was investigated before i came to the national security division. it's an important case, it goes to illegal retention of classified information and so he will be prosecuted to the fullest extent of the law. >> yesterday when the report was released, the white house said approximately three out of four individuals convicted of international terrorism led to charges in a study are foreign-born individuals who enter the united states through our immigration system. my understanding was that those numbers included people who had been extradited here to face trial which is to say they didn't enter through our immigration system. my question is, is that correct and how many reporters were actually immigrants? >> the data that is included focuses on foreign-born individuals, all the

international terrorism, those offenses are something that are categorized by the national security division based on specific provisions of the united states attorneys manual. there are two categories of offenses, category one offenses that listed sections of the federal criminal code that are, in and of itself labeled international terrorism offenses. there are two categories that do not qualify as category one but those are committed or individuals are convicted by false statements or obstruction of justice that are created in the course of an investigation. those are the ones that are reported in the 549. some of which include foreign-born, some include foreign-born but naturalized citizens and some that include u.s. citizens. there is, undoubtedly, certain number of those foreign-born individuals who have been

brought into the united states by extradition or otherwise to face charges. the underlying important fact about those cases is that we were able to prove that those individuals committed terrorism offenses against the united states and are now serving life sentences or very long sentences that will neutralize their threat to the united states going forward because we were able to convict them under an international terrorism statute in the united states. >> thank you. >> thank you mr. o'callaghan. we will jump straight into questions today. go ahead. >> there have been some suggestions that the president does in fact suffer from heart disease. does the white house stand by doctor jackson's report.

>> absolutely. doctor jackson has been a white house physician for the past 12 years, trusted by president bush, obama and now president trump. he is the only doctor that has weighed in on this matter that has actually examined the president, and so i think a doctor that has spent the amount of time with the president as doctor jackson has is not only the most qualified, but the only credible source when it comes to diagnosing any health concerns and we support what he said yesterday one 100% that the president is in excellent health. i think he is exhausted just about every question that you guys had and showed that he is in pretty good health to to stand up here for an hour and take questions. >> not too long ago jim flake from arizona took the senate floor to denounce the

president, liking him to stalin saying that he has inspired dictators the world over, this seems. [inaudible] at some point today you are supposed to give out fake news awards, what do you think of what senators flake and mccain had said and what's up with the awards. >> i found it quite interesting that he is coming out to attack this president, considering he is one that was recently defending an actual repressive regime. he went to cuba a few weeks ago and served as the mouthpiece for the cuban government. he is not criticizing the president because he's against oppression, he's criticizing the president because he has terrible poll numbers and he is looking for some intention. i think it's unfortunate and certainly i think our position here at the white house is that we welcome access to the media every day.

i am standing right here taking questions, the president does so regularly and to act as if we are anything but open to that back-and-forth exchange is utterly ridiculous. >> i haven't had a chance to read everything senator mccain said. >> it'll be posted later today. >> we will be looking for that. >> i know you're all waiting to see if you were big winners, i'm sure. >> indeed. there was frustration from both republicans and democrats who were in the room yesterday when he was being asked about some of the claims that he's made about this administration, but specifically, at the white house because of guidance that has supposedly been given as to what can and cannot be said, specific things that are off-limits.

without getting into the details, can you at least define for us what the white house is telling the attorneys in the scope of executive privilege. i can tell you this white house is following the same practice that many white houses before us have have gone back decades, that there is a process that you go through any time you have congressional inquiries touching upon white house, the congress should consult with the white house prior to obtaining confidential material. this is part of a judicial recognize process. we want to follow through that, we have been fully cooperative with the ongoing investigations and we will continue to do so and we encourage the committees to work with us to find the appropriate accommodation in order to ensure congress obtains all the information they are looking for but there is a process this works there and it's not just isolated to this incident. executive privilege is something that goes back decades because it needs to be

protected, whether it's during this administration or 120 years ago, we want to make sure we follow the process and the president it is broader than it has been in past administrations. >> i can talk about the process and that we are following the same process of previous ministrations. >> again, i can't get into the details. i can only discuss the process. >> thank you. following that question, steve bannon's attorney was relaying a question in real-time to the white house. my questions are, who will be relaying the questions, is that something the white house specifically asked his attorney to do, and if so why did the white house think that was a necessary step in

handling the testimony. >> it's the same process it typically follows. sometimes they have a white house attorney present in the room. this time it was something that was relayed via phone and again was following standard procedure for an incident like this and something that will likely happen again on any other number of occasions, not just within this administration but future administrations. >> thank you. the house republicans leadership is proposing a bill that would provide the government funding through february 15 and reauthorize chip for six years. without a proposal the white house supports. >> we do support short-term cr, however that's not our first choice. we would still like to see clean funding bill, a two-year budget bill but we do support the short-term cr, but we continue moving forward and not process. >> is it acceptable for republicans were democrats to allow the government shutdown at the end of the week and there's different opinions here but does he think it's

acceptable for shutdown to occur? >> this president doesn't want to shut down, and if one happens i think you'll have one place to look them up to the democrats who are holding our military and our national security hostage by trying to push through other policy that has nothing to do with the budget. we would like to get a budget deal done, a two-year budget deal, clean budget deal and then focus on negotiations following that deal with finding a permanent solution to daca and responsible immigration reform. we said that many times before, our position has not changed. >> it takes 60 votes and republicans don't have 60 votes. democrats either need to decide they are going to come here to do their job and they're going to govern and put our national security ahead of their own personal political agendas or they're not. it's really simple. that's a decision you have to ask the democrats what's more

important. national security or political agendas. i can answer that for you. >> the president certainly doesn't want to shut down but he tweeted that a government shutdown would be a good thing last year. >> book, it's never been a preference of this administration. it wasn't done and it isn't now. if that does happen, the blame in the fall will all while at one place because we would like to see a budget deal happen. >> thank you sarah. in the interview last friday with max television, the ambassador of pakistan commented on the president's decision to rollback most of the aid for security systems to the islam a bad government. he said pakistan does not want paid but more importantly pakistan wants respect and recognition of their

contribution and sacrifices. regarding the president's comment, pakistan has responded with lies and deceit and he simply said we won't dwell on that part because it's not beneficial to either party. your response to ambassador? >> work, our position is firm that we believe withdrawing the aid is important and i would refer you to the state department for anything beyond that. >> what about the lies and deceit,. [inaudible] [inaudible] is the white house afraid of what steve bannon might say? >> not that i'm aware of. i think we've been pretty clear what our position is in regard to this entire process that there was absolutely no

collusion, but in terms of what he might say, i can't answer that, i can't speculate on that, i can simply tell you we are following the procedure, whether it was in this committee or any other committee down the road, this is a process that is important to protect and that's what were doing. >> if there is a government shutdown, does the buck stop with president trump. >> i'm not sure how it would the president has laid out what he wants, he wants a budget deal, he wants to have republicans and democrats agree on a budget and we are happy to talk about other things, but the budget should not be tied to a political agenda that the democrats are driving. >> some legal experts suggest that it shows this investigation is becoming more aggressive instead of winding down.

do you encourage that bannon tell all. >> work, as we've said, regardless of who it is, we will be fully cooperative with the special counsel and encourage everybody involved in the process to be fully cooperative. the first part of your question, are we prepared? i think we've been dealing with this hoax for the better part of the year. if we have to endure the ridiculous for another month we can handle it. to the american people deserve that? i don't think they do. >> you've spoken about how the white house. [inaudible] has the white house actually exerted executive privilege or you are talking about the potential. >> i'm talking about the

process. i can't go any further than that. >> you talk about how the president would like to see us short-term passage. will he lean on fellow republicans and a house freedom caucus? >> like i said, we support the short-term pr. our preferences the longer two-year budget deal but we support the short-term. >> so yes he will encourage the house freedom caucus devote. >> like i said, we support the short-term and think it is certainly better than not having that and having a government shutdown is the alternative but our preference would be a longer-term deal. >> when you look at the calendar, january 17, budget deal, it actually goes to february 16, the daca is out march 5 and would he want to see a daca deal get struck before the next cr what and where is he willing to take this up to the deadline in order early march. >> look, i think what we would like to see happen is let's make a budget deal by friday

and let's come back to work aggressively on monday and make a deal on daca and responsible immigration reform. we would like to do all of those things would be happy to do them quickly if democrats are willing to work with us and get on board. >> there also rolling out an infrastructure plan. if it gets passed this week its priority number one next week daca or trying to get support together for infrastructure. >> we very much want to get a deal done on daca. that's a big priority for us but we can certainly manage more than one thing at a time as we are used to doing around here and it's infrastructure gets rolled out by the end of the month of the first part of next month, we will certainly be working on that as well. >> this weekend president trump is planning to go to florida for some celebrations for one year anniversary of his inauguration. is that appropriate if there is in fact a government shutdown. >> again, we hope republicans and democrats will come together and it will have a budget deal. we feel our focus on them

being our top priority if that doesn't happen and that there's a schedule change, we will certainly let you know. >> how does he see his role in getting the ball over the finish line. bottom line, he's the president so how does he make sure the government doesn't shut down. we are doing everything we can to encourage members from both sides to make sure we get a deal. the president has made very clear his number one priority is national security and fully funding our military and that would be something of utmost importance. i would think democrats should share that same passion and priority as the president and hopefully we don't have to go through this process on friday. >> thank you sarah. north korea and south korea will march together during the winter olympics in the opening ceremony. does the president, the white house support north korea and south korea merging together

during the olympics was mark. >> we see this as an opportunity for the regime to see the value of ending its international isolation by denuclearization. we're still very much focused and hope that happens. this isn't the first time that the two countries have marched together and we hope that this experience gives north korea and its athletes a small taste of freedom and that rubs off and is something that spreads and impacts these negotiations and conversations. >> the white house briefing just wrapping up and of course the first question out of the gate, a question of president trump's health. they say they support us short-term cr bill. we go to our panel. jessica, will the d.o.j. representative said that president trump's main concern

of national security includes border security, immigration reform, immigration enforcement and a merit-based system. it seems clear where his cards are. knowing that, can they get a deal done? can the democrats come to the table and get this done? >> funding deal and dealing with the dreamers? yes, i think we can. jeff sessions asked to look into the ninth circuit court of appeal decision to look into the dreamers and that will be interesting as it plays out but i'm hopeful about our capacity to get a deal done, even though republicans will be blamed if there's a shutdown, even if it's democrats fault, i think it's in their best interest to do that especially going into 2018 when we have ten senators up for reelection. no one likes a shutdown. i am hopeful, but we have to protect the dreamers. >> chris, i think it also hits home, i remember not long ago a town hall meeting when nancy pelosi and a bunch of dreamers

weren't buying the usual talking points and that might've been an epiphany for the democratic party. they promised a daca bill and they better get something done also. >> i think the ball is in the democrats court on daca. i don't necessarily agree that it's so clear-cut in terms of the where the blame will go, but i don't really care about that. everyone solids good for the american people to realize they can go on with their lives about government there to support them on a daily basis. moving into that, it's important that we do reach some sort of a deal because we need the military in these times apparel. that being the case, i think the democrats have a clear understanding of right now what the president wants, what the republicans will vote for, and what they need to agree to.

if they're trying to use daca recipients as human shields. >> that's not what they're doing. >> that's absolutely what they're doing. the majority of americans. [inaudible] >> there making about immigration. >> i want to bring in jeff. i went over the 18 shutdowns in the past 13 years. we only have one year down in gdp. the last three shutdown sought up in the market. with this hurt our economy? >> i don't think, if it's a short shutdown i don't think it will impact the market that much. if extends out for weeks, then i think you might lose some investor confidence but i hop hate throw cold water on this but i worked in the beltway and still have pretty good contacts in capitol hill and what i've been told is as of last night they did not have the votes to get a budget deal. >> ab they will come to the last minute like they always

do. on late friday we will kick the can down the road. i'm tired of this thing but it looks like it's gonna happen. i believe were on the road to some sort of resolution. we are out of time because of the press conference. in the meantime, apple, big news into speeding to pump 350 billion in the economy over the next five years. you can thank partly repatriation. ♪ ♪ ♪

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charles: 3:00 p.m. eastern today, president trump will present a congressional gold medal to senator majority leader bob dole.

fox will bring you there live as it happens. will we see a government shutdown? neil is live in d.c. on saturday with the premier of "cavuto live," 10 a.m. eastern on fox news. watch me tonight. market at record levels. we'll talk where to make more money from here. now here is trish. trish: we will watch neil on saturday and you tonight. wow, this market is on fire. 251 right now. white house press secretary sarah huckabee sanders, warns democrats, if there is democrat shutdown over immigration, democrats have no one to blame but themselves. president is trying to work with the dems for daca solution to secure our borders to put national security first but it is the left who is insisting on a clean daca fix. trump advisor mercedes schlapp is joining me in a few moments. she will talk about how we get through this and how we don't hold the government hostage over