solidly for the last 40 minutes. there she is. liz: ah. stuart: this is feeding process going on. having done that the eaglets probably went to sleep. they are now asleep, okay? you get it all on "varney & company." ain't that right, charles? charles: it is. thank you very much. i didn't they you were such a nature guy, stuart. stuart: oh, yeah. charles: welcome to "cavuto: coast to coast." i'm charles payne in for neil cavuto. president trump ousting rex tillerson and putting a n.o.w. team in place. we'll look at fallout, economy, markets, foreign policy blake burman starts us off with the latest from the white house. blake? reporter: hi, there, charles, president trump effusive in the his praise for the new secretary of state nominee mike pompeo in paper statement and spoke to us out on the white house lawn before his departure to california. he said pompeo is one of

tremendous energy and tremendous intellect. he said, quote, we're always on the same wavelength. that last part is the important part because the president made clear that he and rex tillerson on some issues did not see eye-to-eye on certain things. the president talks about how he likes conflict and different opinions. that eventually gets him to a point which he can make a decision, but clearly with tillerson, the two did not see to eye on certain issues. president specifically signaling out tillerson's views on iran nuclear deal. listen to the president on tillerson and how he views pompeo? >> we disagreed on things. what we looked at, iran deal. i think it is terrible. he said it was okay. with mike, mike pompeo, we have a very sim is lar thought process -- similar thought process. i think it will go very well. reporter: mike pompeo was on a couple different sunday morning talk shows over the weekend including "fox news sunday," potentially a soft rollout in

essence for pompeo over the weekend. in any event is he is confirmed by the senate and becomes the next secretary of state, he joins in time for the north korea negotiations. pompeo seemed in lockstep with the president on that issue over the weekend. here he is -- >> president trump is not doing this for theater. he is going to solve the problem. the location of the meeting will determine exact timing of the meeting the president and his team will figure out but what is most important is what is discussed. reporter: there will need to be a new cia director. that could be gina peleo. that could not be a bit tricky certainly something to watch because she is career cia officer, someone involved with the controversial cia black sites. so far, charles, no public

comment from rex tillerson himself. we have seen departures in recent weeks of hope hicks and gary cohn, two high-profile figures within the administration. when that happened there was a comment put out by the white house from both. there was no comment put out from the white house earlier today on tillerson. charles? charles: blake, thank you very much. president trump saying he is on the same wavelength with mike pompeo. we have former ambassador john negroponte. ambassador, thanks for joining us. >> thank you. charles: not necessarily a surprise. this was in the rumor mill for a long time. although the timing seems critical to the trump administration. what do you see it plate playing out. >> i are right about the timing that secretary tillerson was in

middle of a trip it africa and plead ad illness in africa. maybe he wanted to cut the trip short and come back here. the way i see it the president has a secretary of state whom he feels to be on the same wavelength. that is extremely important. the president has to be comfortable with his team. so i look to mr. pompeo to be energic, bright and loyal team player. charles: what do you make of the notion that tillerson was never comfortable within this environment? to your point i think perhaps because he was ceo of the world's largest corporation or one of the most powerful corporations, never really took the kind of subordinate role? one thing to voice your opinion, but at some point i think cabinet members certainly have to get on board with the president, don't they? >> i think he got into number of spats about the white house staff about personnel choices, this and that kind of thing.

the other comment i would make about the secretary, who is obviously a very fine man, is that he got a little bit down in the weeds about state department organization and reorganization and that's really not the essence of diplomacy. you have to lead a team that engages with the rest of the world and that, when you're secretary of state really has got to be your focus. you can't worry about whether spouses of foreign service employees are allowed to work at embassies or not and stuff like that. that is, for somebody else to do. charles: certainly much has already been said about the espirit decorps or lack of at the state department and the friction that occurred between tillerson and rest of administration. >> henry kissinger when he initially became national security advisor and secretary of state, used to be quite skeptical about the foreign

service but as time went on he placed greater and greater confidence in them. at the end of his term he had all his key positions at state department were filled by career people. he once commented, and i absolutely agree foreign service people, just like career military officers they are waiting to be led. maybe mike pompeo will take up that banner. charles: we know mike pompeo, his background. he seems a lot more hawkish with respect to national security, you know, of course we know he has a track record as an elected official. he has run the cia explain how this may impact negotiations with china and negotiations with north korea and how we deal with the rest of the world. >> well he may be a bit harder line and also a realist and head of the cia for the past year plus or so. i think he has a pretty clear-eyed view of the world.

he was also on the intelligence committee. with prior experience in the cia and military and state department. i think he has competent lept preparation which will enable him to give clear assessments to the president about the ways which we should conduct our diplomacy. charles: sir, the market was up almost 200 points at one time. we're down 100 points, i think a part of this story should be articulated more, back in august of last year, robert lighthiser initiated a section 301 trading action, 1974 investigation of china, coming on heels of tariff news of president trump, feels like the administration is shaping up, getting rid of so-called globalists, and bringing in folks that started career as tea party activists that will take on the world in

hard-hitting way that will upset wall street and a whole lot of other folks right now? >> i'm worried about that. i'm particularly worried about nafta, i think it needs to be saved. i am more hopeful than i was six or eight months ago. let's hope the people are being clear-eyed, tough negotiators, with the best interests of the united states at heart. i think it would go overperiod if we were to trash, for example, the nafta, throw it over the side. that would be a terrible mistake. charles: we wouldn't have seven rounds of negotiations if we were going to trash it. >> right. charles: we do have to draw a line in the sand f we don't do it now, if we don't do it now while we're still the world's largest economic power now, when can we do it? >> that is what i say. there is nothing wrong with a tough-minded clear-eyed view of the world. where we may have not got the best deal we need to try to improve that but we don't want to shut down the global trading system. it is, it is has been proven

over the years that that is extremely important for the united states economy. charles: right. sir, thank you very much for your wisdom. >> thank you. charles: for spending time with us this afternoon. appreciate it. >> appreciate it. charles: as i mentioned stock market now starting to drop. this all coming as china's president, of course is now gaining more power, we call him emperor in middle of trade tensions, they're heating up. former state department deputy spokesman what it all means for relationship with china. sir, i talked about the, this section 301 trade act investigation, it began in august but now we're hearing more and more about it in part because of actions taken on tariffs and also now the reorganization within the administration. feels like for lack of a better term, economic national system back front and center, and that means we push back hard against china. >> i think that is a fair assessment, number one, peter navarro is looking to increase his influence and stature in the

white house. gary cohn has left. i think in the context of the tillerson departure, what you're seeing is a pattern of national, nationalist confrontationallist, trump enablers, being elevated to positions of prominence and the constrainers of trump or adults in the room, as they were called, being sidelined. i think that narrative is probably a little bit simplistic and ignores a lot of realities of poll at this making process but the fact of the matter is trump campaigned on a number of key themes. he is committed to following through on those themes. his record has been pretty good but there are a couple areas where he has not been able to deliver as promised. one is on china, one is on trade, and one is on iran. with respect to china and 301, i

would like for trump and the trump administration to take a more confrontstational attitude, more aggressive attitude with respect towards china on trade. they have already started it with the tariffs. they will continue with other trade issues related to china. on nafta, negotiations are going on. ambassador negroponte is absolutely right, don't throw the baby out with the bath water but i wouldn't make any bets on that score and finally on iran all signs are pointing to a departure from the jcpoa. in what form, fashion, what timing is remains to be seen. if you look at the pattern, to me it points to trump following through on his promises. he promised to move the embassy to jerusalem. he did it. he promised to renegotiate nafta. he is doing it. he promised to be tough on iran. he used chemical weapons in syria. charles: right. >> so i think, i think there's a pattern lear.

charles: and to that point, the economic point the economic part is hardest as the term implies, a trade war would have casualties and collateral damage on both sides. so we understand why we avoided that. longer we avoided it, the more, the recalled would, more specifically china has taken advantage of that. i believe voters of president trump are willing to take the hits, the near-term, short-term economic hits that come with this. unfortunately the gop elites, wall street, they have been screaming loudly and, my point of the question here is, does that hurt president trump's attempts to level the playing field abroad? >> well, i mean look, there are short-term hits and there are long-term hits. those who argue against the politics of the gesture, let us say, announcing tariffs, or announcing an embassy move, or announcing that you're leaving a an agreement, point to both

short term hits and long-term hits but the long term hits are ones scarier ones because look the world is complicated and there are unintended consequences on a number of different levels to decisions made in washington for short-term political gain. charles: right. >> i think that is the dynamic. you know, the people around trump, i think it has been shown and demonstrated quite clearly is, you know, don't get on the wrong side of the boss. help him to do what he wants to do. if you take issue with him, do it in private, not in public. charles: yeah. >> that was tillerson's cardinal sin. charles: i think so too. tillerson a very proud man, very accomplished, very successful. not sure he was really a good fit, but probably needed out of the gate since you had a non-politician coming into the job. really enjoy your comments. >> appreciate it. charles: the stocks, we started out the gate pretty good. now we're negative, brings back of course, tariffs, trade, all

these things. the question, what does someone who is successful think about this? charles schwab telling fbn exclusively coming up, something i thought was fascinating. also tonight at 6:00 p.m. eastern, fox business, we'll have more on fallout of more recent decision. great economic news beneath the surface. show you why you should be holding on to your stocks. we'll be right back.

charles: votes underway in pennsylvania where republicans are looking to defend a 15-year held congressional seat. connell mcshane there with the latest. connell? reporter: very interesting race, charles. i know everybody that has been following it, you included, this is a race that may have national implications. why all of us in the national media are here in the 18th district of pennsylvania today. i got to say both campaigns we've been talking to today, cautioning against that, it is really local race when it cops down to it but let's set it up for you. republican is 60-year-old rick saccone state legislator claiming he was trump before trump. he is in a close race in a district the president won by nearly 20 votes. when he voted at this location, saccone i caught up with him for a very brief conversation. here it is.

>> feeling great. let me vote for myself, huh? that is great feeling. reporter: well it is a great feeling, no doubt, as saccone was coming out of the polling place here, he held up cell phone, showed us his son was skypeing in from south korea. serves in the air force over there. wanted to see his dad voting live. saccone didn't answer any reporter questions on way back to his car, why the race is so close. the 33 year old democrat conor lamb made it very close, did it so running against saccone and running in many ways against his own party or running away from the likes of nancy pelosi when he running in the conservative district. he is careful to say that is this race is not necessarily a referendum on president trump but he did say this. >> i think it says a lot about democratic enthusiasm around here. people are really excited for this race. i'm happy for them that their voice will be heard all around

the world today, this is local race. people are voting for either me or rick saccone. i don't think it has anything to do with the president. reporter: it is local race. comes down to turnout. republicans insisting trump voters turnout, president won here ease i they can pull it out. president had tweet about the race. economy raging at all-time high. set to get better, jobs and wages up. vote for rick saccone keep it boeing. but charles, there are questions whether or not that can happen. political insiders say union voters are key. connor lamb, young democrat done good and job rank-and-file union members, including president recent elections, taken some of them over to his side. time will tell. supposed to be a very, very close race this evening, when the votes come in. i will make one note, charles, seeing snow fluries coming down behind me. doesn't look like weather is

much of a factor for voters. snowing on and off. nothing sticking to the ground or on the road just yet. we'll follow it throughout the day. very interesting race. charles: connell mcshane, thank you very much. is this a bellwether for the mid terms? university of virginia center for politics larry sabato. larry, a lot of both parties poured money particularly the gop in this race, president trump won by 20 points. he was there over the weekend. his son was there yesterday. obviously republicans want to hold this. so why it is so tight? >> it is tight for lots of reasons including the ones just mentioned by your correspondent. i just think about everybody there views conor lamb the democrat as much better candidate in terms of his ability to present himself to the voters than rick saccone the republican. is that always determinative of who wins? of course not. but, given the fact that on the whole, democrats are energized by the trump presidency, given

the fact on the whole, inevitably after a year plus, of governing, you have made enemies, some people are unhappy with what you've done as opposed to what you said you would do, the people i talk to in that district think it is going to be very, very close. there are people, certainly the pollsters seem to be voting for conor lamb, not voting for him, guessing that he will win the election or maybe voting for him, i don't know. but i think it will be very close. so the key is, how many points do you shift? as you said, trump won by 20 points in 2016. there is zero chance that rick saccone will win by 20 points. well if he wins, does he win by 10? does he win by five? does he win by one? whatever it is you will see a swing from republicans in 2016 to the democrats in 2018. that is why we take a look at it and project it forward to november. whether that is justified or

not. charles: charles: larry, but your suggestion is perhaps some of these vote here's voted for president trump may be having buyers remorse yet conor lamb is running almost as republican. he is running away from nancy pelosi. he is embracing all the things president trump is doing and suggesting that he would do them as well. so, this seems like if it's a referendum on president trump, both condition dates are trying to embrace him? >> well, i wouldn't say that lamb has been running as carbon copy of donald trump. what i think he has been doing as you correctly mentioned, he has been separating himself from the more liberal leaders of the democratic party, including nancy pelosi. very clearly said he wasn't supporting her, wouldn't necessarily vote for her as leader or as speaker if it came to that. also, he has, he is definitely more conservative on guns, on the second amendment. this is really a road map for democrats who are going to be

republican territory or even in competitive territory. if they're smart, they will follow the conor lamb model. the question is, will democrats let them be smart? will they nominate candidates like conor lamb? that is what i'm looking for. charles: great point. larry, their very much. really appreciate night thank you, charles. charles: big news of the morning rex tillerson is out as secretary of state. how could this affect trade and president trump's tariffs? more on that after this. how do you win at business? stay at laquinta. where we're changing with contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at lq.com.

>> three years ago, as a matter of fact after i was elected to congress, the u.s. steel announced they would be turning down the production, a plant that has been working since the 18 '80s in that granite city location. they turned it down. we fought everything. yesterday the announcement was made. they are bringing 500 employees back. they did have some back already. they're firing up one of two

furnaces. so it is very positive. charles: that was congressman mike bost, steel caucus. thanks to president trump's tariffs, he has more details. >> right in front of the glass furnace that the congressman just mentioned, over my right shoulder, blast furnace b. it has been a long time, maybe my memory since steel mill jobs increased. look at numbers, charles. it has been a bleak history for steel. when president bush took office 2001, there were 127,000 steel mill jobs. by the time president obama took office, 94,000. by the time of september 2017, 81,000. 1000 flue jobs here at u.s. steel in green knit city. the reason -- granite city. the reason for the turn down of

jobs, china. the world's number one exporter of steel. a lot of it doesn't come directly to the u.s., it foes to other nations. that causes a lot of problems. 23% of the world's exports, china. some counter measures were taken by canada and u.s., these tariffs, according to folks working here will do something positive for steel. listen to one of them. >> i think it is well past due. it gives us a chance to have a fair trade, have a level playing field, and it gives us the opportunity to get men and women back to work and provide for their families. that is the most important thing. reporter: here i tell you, there is one caveat, charles. a lot of these people were laid off for years, they have gone on to other work and they're worried maybe will this last? look at couple of posts from u.s. steelworkers deciding whether or not they want to come back to work. got my call today, one writes on a facebook post s is anyone

debating or scared to take the risk of going back and same thing that is to say layoffs happening again? another guy posts, decisions, decisions, decisions. i might just flip a coin. some of these other guys have other jobs. they're not as good as steel-making job but one they have and can count on. they're not sure if they can count on these. we'll see. charles: we'll see. jeff, great stuff, really appreciate it. charles schwab telling maria bartiromo that he like what is president trump is doing with tariffs. take a listen. >> what trump is doing, i think it is the right thing to do, we have to have some negotiating positions on these things, otherwise we're sort of naked. >> right. >> what he is doing setting something up like tariff on steel, okay we'll negotiate a little bit on nafta. maybe we'll negotiate there. but if you have nothing to sort of give, we gave it all as we did over the last 50 years, we gave favored nation stuff to so many countries because we have

wanted to help them after world war ii, korean war, et cetera. so today i think trump is correct. charles: reaction from former mississippi governor, former rnc chairman haley barbour. thanks for joining us. >> thank you for having me, charles. charles: i'm personally shocked how loudly the gop elite have pushed back against president trump with respect to the idea of tariffs and even now knowing that we're probably seeing a rejiggering of the administration to harden its attack of china and its unfair trade policies, we all get smoot-hawley but why is there so much resistance going on here? >> generally since reagan, before that actually, particularly since reagan, the republican party has been the party of open markets. we have been a party of free trade but fair trade. and president bush as you recall retaliated on steel in the, in the bush administration just

after 2000. but generally we have felt like if people abide by their agreements, they don't cheat, and certainly in this case there is a lot of evidence that the chinese cheat, that we're better served by open markets. that is where leadership comes from. look, they have been in washington and they voted on this before. they talked about this before. the most criticized i ever was, charles, as chairman of the republican national committee was when i said publicly that i was for nafta during the clinton administration. when i was asked about it, look, i was for nafta when reagan was president. i was for nafta when george h.w. bush was president. why should i not be for nafta because there is a democrat president? so these guys have staked out positions that they believe in for a long time. i do think chuck schwab made some very good points.

when people are cheating we ought to retaliate. when people make an agreement with us, we ought to hold them to it. and clearly in a period of two or three decades after world war ii we made deals that were not favorable to us because we wanted to rebuild europe. we wanted to get the world safe from communism. but we don't need to do that anymore. we need to remember that. charles: we do need to remember that we are reminded almost all the time, i'm not sure where you are with respect to nafta. that big sucking sound that ross perot used to talk about, there may be evidence of that. we greatly helped economies of mexico and canada. while it is good for our exporting companies there is something missing. there is a hole in our country that needs to be filled and needs to be filled with a new sort of optimism that comes i think with bringing back manufacturing, or bringing back some of the abilities to produce our own steel and things like that. so we're at that crossroads

here. and i'm just surprised again that the republican party doesn't pick up on that, the obvious, cheating that you bring up, but also obvious fact that these plants aren't serving our best interests anymore? >> well, if you look at manufacturing in the united states, a lot of job loss that gets blamed on exports and imports, actually is because of innovation. my home state of mississippi, 1990, had about 40 something thousand furniture manufacturing jobs. today we have fewer than 20,000, but we make more furniture in mississippi today, with about 19 or 20,000 employees than we made with 40,000 employees 28 years ago. innovation and technology, one of the reasons that it makes us more efficient is that we do things with fewer people. that is just a fact. we have to make our economy respond in other ways so that we

get those people back to work, but, doing something, as you said, with the steel mill people, or maybe your reporter said, these people are being retrained. charles: sure. >> they have to be retrained because the work place has changed very, very much. charles: let me switch gears a little bit then, bring in the big news of the day, rex tillerson out as secretary of state. mike pompeo is in. what is your initial reaction to that? >> well i thought a lot of rex tillerson. i thought he tried to do the right things and did them the right way. i don't know why president trump decided to replace him. i assume but don't know that perhaps it has to do with trade policy. sort of like gary cohn. but i don't know that. i'm just assuming that. but look, i hope secretary pompeo does a super job. there is a lot to recommend him but i do think, i have a high opinion of rex tillerson from his time in business and as a

leader in the united states. charles: yeah. i think a lot of people perhaps think that he was more of a secretary of state that looked at our business relationships vis-a-vis the rest of the world as opposed to the american worker. we'll find out. obviously mike pompeo and president trump certainly on the same page. hillary barbour, thank you as usual. we always appreciate you coming on. >> thank you, charles. charles: hillary clinton still addresses why she lost in 2016 and still not blaming herself. listen. >> took ongoing pressure to vote the way that your husband, your boss, your son, whoever, believes you should.

zach! talk to me. it's for the house. i got a job. it's okay. dad took care of us.

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republican party and a, a, sort of on going pressure to vote the way that your husband, your boss, your son, whoever, believes you should. charles: that is just a portion with hillary clinton was saying. of course here saying saying the women doesn't vote for her because there are men in their lives, their husbands, their sons, pressured them. really? we have amanda head. democratic strategist, antwan seawrite. and stacy washington. let me start with you on this one. she went off. she laid out every sort of excuse card in the book. i think she insulted millions of people along the way. >> you know, charles, the thing with hillary is, i've been kind of keeping a running track and i'm wondering if there is anyone left she hasn't insulted. obviously she really pays homage

to people in her base. she even insulted them. she said you guys didn't turn out to me. women came up to here at book signings. i'm sorry we didn't vote. we didn't think it mattered. she holds them accountable, glares at them, and treats them badly. she insults white women, white man, black women, black men, black teenagers, deplorables, 60 people, the list goes on and on and for what? this apology tour has gone on how long now? not an apology tour, it is a blame everybody else tour. think we're all tired of it, exempt it is really good for republicans because every time she does this, and insults americans, the democrats have to clean it up. charles: amanda, what do you make of it? >> you know, this is kind of been her rhetoric for a while, right? we saw indications of this when she was on the campaign trail. then after she lost she refused to come to grips with things. look, self-reflection takes a lot of courage but when you give

speeches like this all over the world, i have to imagine that the indian women sitting in that audience are sitting there thinking, really? a country as progressive as america you think white women as hillary clinton said are that beholden to the believe that the men around them? i know i am certainly not. i voted for who i wanted to because that is how i wanted to vote. i have done that my entire life. i think it is very insulting. she is going down a dangerous road when she continues to suggest this. charles: also suggesting that voting for president trump was a vote against black people. so suggesting that all republican voters are racist. >> well, couple of things that i think is here to unpack. number one, i think it is kind of fundamentally crazy that we're even having this discussion, considering all -- charles: you accepted coming on. if you didn't want to talk about it, you shouldn't come on. >> i did. another point i'm going to make, i think when elections happen, either two things happen. you win or you learn. i think what we all learned

about the past election is the fact that there were a group of people who did not vote in numbers expected for hillary clinton and then there was a group who did. african-american women -- charles: is it smart for democrats to call every republican a racist, they hate black people? when will that narrative be put to rest? >> i don't know if that is mayes message from democrats as a whole. when one or two people say something, a group of people say that is the democrats message. i don't believe that is true. i think democratic message i heard and i one i continue to talk about ones that connect with every day american people in this country. charles: stacy, the messages coming from their last standard-bearer, the person who they elected run for the white house. >> look at message comes from mitt romney? charles: can i bring stacy in for a moment. so she can voice her opinion on this? >> yeah. so, charles, i think antwan has his perspective as someone who speaks publicly. i respect that that greatly.

when you look at democratic party leadership the focus on race is pretty strong. insults from hillary clinton is not anomaly. that is the norm. that is the way republicans are described. when you are a black woman as i am, regularly called racist and hates herself because i voted for donald trump. that is messaging problem for democrats and turnoff. highlight where they're focused is. when he focuses having this discussion he mentioned that hillary clinton didn't campaign in certain states because she thought her message of blaming men, blaming white people, plame being patriarchy, instead of actual campaign issues would work. this is great conversation to have. charles: amanda, let me ask you, the other side of this, of course, why don't republicans ever work harder to take advantage of this sort of nonsense that black people should vote for hillary clinton because she has hot sauce in her purse? that insult ad lot of people, by the same token, republicans never made the push. right now they have got a lot of things they could talk about.

that last jobs report, 6.8% unemployment for black people. higher job participation. why aren't they pushing harder for that vote? >> i always say that democrats are the best marketers for a poor product and republicans are the worst marketers for a great product. so what antwan was saying in an election you either win or you learn. what have democrats learned? >> we learned a lot. that is why we're winning now? >> sorry, i'm still talking. but as to what stacy was saying you can be pretty much anything in this country. the left is so progressive and open-minded that you can be any gender that you want, be any race that you want, be of any political affiliation you want, except conservative and that is off limits and you are no longer or welcome there. charles: antwan, your thoughts. i know there is a lot of hope tonight obviously with conor lamb his campaign pushed back against nancy pelosi and embrace ad lot of things that president trump talks about as well. >> let's be crystal clear.

trump won the district by 20 points. so i think what conor lamb is doing, running a message that connects with the voters of that specific congressional district. it's a district that doesn't fall in line with washington, d.c., style politics. i think he is running a tremendous campaign the if you look who he is, former marine, former prosecutor in pittsburgh, i think he is doing the right thing by running message -- charles: can this approach be adopted by the next democrat who runs for the white house? can they go beyond the sort friction politics of envy, politics of class, politics of race, sort have inclusive message for all? >> i think every candidate is dip. it is up to the individual candidate and campaign and circumstances. i commend connor for the type of campaign he run. he kept washington, d.c. outside of this race. that is why he is polls have him up by three points in district trump won by 20 points. if you look at some of the races happen across the country. charles: that i learns that hope

other in both parties also learn because what hillary is doing is a shame. it's a travesty to everyone in this country who voted because they wanted to vote for who they wanted to vote for. guys, we run out of time. i appreciate it. we will have this discussion real soon i'm sure. >> thank you. charles: gop house intel committee members are finding no collusion between trump and russia, so where does the investigation go from here? after this. the perfect hotel by using tripadvisor! that's because tripadvisor lets you start your trip on the right foot... by comparing prices from over 200 booking sites to find the right hotel for you at the lowest price. saving you up to 30%! you'll be bathing in savings! tripadvisor. check the latest reviews and lowest prices.

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♪ >> we're very happy with the decision by the house intelligence committee saying there was absolutely no collusion with respect to russia, as it was a very powerful decision a very strong decision, backed up by i understand they will be releasing hundred of pages of proof and evidence. but we are very, very happy with that decision. charles: president trump praising the conclusion of the house intelligence committee's russia probe with the gop saying there is no evidence of collusion. to former february by assistant director, danny coulson. danny, of course we know this is the house version but it has been a long time with the mueller attempts to connect these dots. so far no one has been able to prove that there has been any

collusion. >> that's right. you know, i think the predication for this whole investigation on the part of the executive branch and the legislative branch was kind of weak to begin with. charles, if there had been one scintilla of information that would involve not collusion, but conspiracy, which is only thing that matters that would have been leaked to the media. democrats would be doing press conferences. none of that happened. even dianne feinstein said, she is not a shill for the republican party, she is an ad very se ri, she doesn't -- adversary, she doesn't see any kind of collusion that would amount to a conspiracy. i think close it down and move on. by the way, hardest things to do is close one of these things down when you don't have positive result. somebody always says that we could have done more. that is the problem that bob mueller will have and problem the republicans are having too. charles: that maybe dianne

feinstein paying a heavy political price with the democratic party abandoning her. >> maybe. charles: you could maybe flesh out for the audience the difference between collusion and conspiracy part of all that. >> sure. charles, you and i can collude that we could have a surprise birthday party. that is okay. when it becomes criminal, that become as conspiracy. when we conspire to violate election laws or we conspire together to commit some federal or state crime, that is a criminal act. whether or not you engauge yourself in the act or not, the fact you're part of a conspiracy is a criminal violation. you can not be -- can be prosecuted for that. you can not be prosecuted for collusion. charles: the democrats have not come out with their conclusion on this. speaking of this, we have only a minute left, is there a possible timeline? longer out it the less

credibility it will have unless they come out with a blockbuster decision? >> as i said earlier it is hard to close it down when you don't find a positive result. you know better than i do, hard to prove a negative. that applies to the legislative branch and to bob mueller too. charles: right. >> so they need to close it down. we spent enough money on this. let's move on. we have a lot of problems if our country right now. let's go after the right things. charles: danny, i think you're right. i think the american public is tired of it. i think even "saturday night live" is starting to push back this which says something. danny coulson. really appreciate it. rex tillerson is out. what this means for the future of north korea's talks. we'll discuss that next. ...

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charles: welcome back to cavuto coast to coast i'm charles payne in for neil cavuto. another bombshell out of the white house this morning president trump announcing rex tillerson is out as secretary of state, mike pompeo is in. adam shapiro is live at the state department with the latest adam: charles out but not quite yet. secretary of state rex tillerson is still here at the state department we haven't heard from him just yet but we are told once he does transition out, the acting secretary of state will be the deputy secretary of state john sullivan more about him in a second but as you have said mr. tillerson is out, and apparentlily learning of his de puerto rico curvy a tweet like the rest of the nation. here is what president trump had to say about replacing secretary

tillerson. president trump: i respect his ink lect. i respect the process that we've all gone through together. we have a very good relationship for whatever reason, chemistry, whatever it is why do people get along? i've always right from the beginning from day one i've gotten along well with mike pomp eo. adam: and mike pompeox is of course the nominee to be the next isn't of state. he'll have to be con form by the u.s. senate perhaps as early as april but he issued a statement saying "if confirmed i look forward to guiding the world's finest dip diplomatic core" and again, we're still waiting for secretary of state tillerson to depart the state department at which point we have some video of him or at least a picture of him deputy secretary of state john sullivan will be the acting secretary of state. one other turnover that has taken place in the last hour here at the state department charles is undersecretary steve

goldstein was fired. he issued a statement on be half of rex tillerson this morning in which he said that secretary tillerson had every intention of staying on board and remaining in the position and that was he "unaware" of the reason the president was replacing him. mr. goldstein is being replace replaced and he was fired about an hour ago. back to you. charles: adam shapiro, thank you very much. well the decision coming as north korea and china tensions are heating up want to go to the center for national interest defense studies director and former assistant secretary of defense larry corb. harry let me start with you on this the news of itself not necessarily surprised well telegraph and talked about for a very long time. i think folks looking at the timing of it specifically ahead of this potential north korea what it all means. >> charles i think the timing here is actually perfect. look at the amount of foreign policy challenges this president has on his plate for a second.

he has north korea, he has probably what is the summit of the century with kim jong-un and he needs the right team around him to share that same perspective that same wavelength that chemistry. you have challenges with iran. i think today is the day where you can say the iran nuclear deal is dead and buried and other issues like trade and other challenges like the rise of china. if the president doesn't have the right team around him he has people potentially leaking behind his back all of that you might as well flush it down the garbage so this is the reason why he had to make this move. charles: larry president trump always talked about having descenting voices in the room but to harry's point they just didn't see eye to eye whether it was jerusalem, north korea, the iranian deal and now of course president trump's focus on trade taking a hard line on trade it's hard to imagine perhaps the ex- ceo of exxon-mobile would be on the same page as well. do you see this realignment trump 2.0 the second year going more toward an economic nationalist sort of theme

promised on the campaign trail? >> well i disagree with harry there in the sense yes the president could have anybody he wants but it's good to have descenting voices around so he hears all points of view. i can remember secretary schultz presenting president reagan with different points of view. secretary mattis does not agree with the president on most of these issues but he's a terrific secretary of defense and i do worry making his change now while you have a very short time until the meetings with the north korean leader whether you're going to have everything in order to make sure that you get the agreements that you would like. similarly on the iran deal i think it would be a disaster if we get out of it now, this is something secretary mattis agrees with, given that you're trying to get north korea to give up their nuclear weapons why would they do it of you get out of the iran deal? charles: harry sometimes in the huddle the quarterback will call the play. it's usually to wide receiver

that says no i think we should do something else and the quarterback will call the same play over and everyone runs the play. i'm not sure that always happened with respect to rex tillerson but what do you make of larry saying changing some of these things up, changing the approach midstream could do more harm than good? >> i respect larry a lot he's a great guy, but if rex tillerson and people in his state department and again i have no proof of this, so just thinking it through, as they're leaking and they are not on with the trump agenda and they don't agree with some of the positions trump has taken whether it's on north korea, iran, trade, forget about having people that are in position that can help. if they're actually working against the president, you could throw everything out the table and i think there's actually bigger changes that are coming here. i see h.r. mcmaster probably getting replaced pretty soon as well. charles: larry? larry your thoughts? >> well again, i would hope not, again particularly where you are and there's no doubt i tell you tillerson was a terrible

secretary of state. he didn't staff the building, he didn't work with all of the people in the state department. i think pompeo probably will pack he worked with the folks at the cia so i denuclearization he was good with that, but again, there's no problem if in fact, you know, secretary tillerson in my view probably should have resigned given what's happened probably last november and we wouldn't be in this position right now, but the fact of the matter is i do think it's important to have some sort of continuity and the president to hear all points of view, because if he doesn't, none of us is perfect he might make the wrong decision. he is still the decision maker but i think that it's, you know, you need to hear all points of view and it's not just the state department. it's his own national security counsel that's doing a lot of the leaking. charles: you know, harry, the market started the session up almost 200 points and then it was down a hundred points and some of this is anxiety overtak ing a hard line with

china. robert linehiser started a 301 investigation last august. no one took it seriously obviously people are taking it seriously right now and again, it feels like you've got the sort of globalist elites on one side being perged from the administration and the other folks now rising to empower and stature. should we be concerned about this or does this dovetail with the promises that r made on the campaign trail? >> no we shouldn't be concerned at all because this is what the american people voted for. donald trump was very clear on the campaign. he wanted to scrap the iran deal essentially within the first few days of his presidency. he was getting tough on china and its rise, especially looking at all of the different ways that china cheats on trade, and this is the man that the american people voted for so there shouldn't be any shock here. he's fulfilling the campaign promises that he made. maybe he's different than other politicians who don't do that but this is who donald trump is. charles: okay gentlemen let's leave it there thank you both very very much meanwhile president trump mentioning

possible replacements for gary cohn, take a listen. president trump: i'm looking at larry kudlow very strongly and i've known him a long time. we don't agree on everything but in this case i think that's good i want a diverse opinion. we agree on most, he now has come around to believing in tariffs as also a negotiating point. i'm renegotiating trade deals and without tariffs we wouldn't be nearly as well. charles: charlie gasparino who he's now hearing that may fill that top spot and before we start, you ironically said this yesterday we talked about this that larry kudlow was coming around because he had been very vocal particularly when these tariffs were announced, he was upset, he talked about it, you know he voices opposition and you were the first person i heard talk about this yesterday that maybe he's noticerly wavering but adjusting his thinking. charlie: i knew he was adjusting his thinking because he's saying that trump is adjusting his thinking.

now we should point out last night we tweeted out we weren't on the air obviously, but we tweeted out on fox news tweeted out what i reported was that he had another conversation yesterday with trump, the basis of the conversation was not to offer him officially yet but to feel him out. it looks like he's inching towards offering larry kudlow the job and the reason why is because kudlow is telling people that trump is using tariffs as a negotiating tactic, that he's not going to go the full monte on all these tariffs that he's going to scale it back and he's doing stuff that larry could live with. trump on the other hand is saying well larry is sort of accepting that trump, the trump way of negotiating and protectionism which isn't, which is fair trade not protectionism. charles: could larry live with being in administration in president trump going with the tariffs and i mean, if you listen closely the same interview it started with president trump talking about

mike pompeo, i'm sorry rex tillerson in that he liked him but they were never on the same page and we know at some point it's great to have descenting voices in a room but at some point you say i'm calling play everyone has to do their job. charlie: what i don't understand and listen larry is a friend of mine and if larry would ask me right now and we've been through the wars together me and larry, ideological and business coverage wars when we were both at cnbc together if he asked me and i've actually said this to him. i said remember what happened with gary cohn. gary cohn was given a lit must test. trump said i want you to publicly support my tariffs or else and i think that's a problem for larry and i think listen, he really wants this job is my opinion. that doesn't mean he's going to take it. i think if i was a betting man i'd bet he is going to take it. he really wants it. larry kudlow defeated a lot of demons in his life and he's a very positive guy. he believes he could change the president's mind but here is the problem. he doesn't know trump very well.

people who know trump like me, like some friends that have been advising him are telling him this. this is not a lineal thinker it is a circular thinker and a year ago, peter navarro, his protectionist economist and a smart guy i just disagree with him on policy was on the outs. today he's ascending. this is a weird administration and listen two weeks ago there was a report that rex tillerson was out, donald trump called it fake news and now he's out. i mean this is a place that is pretty hectic and for larry whose a true believer in this stuff he's going to have to eat a lot of crow for the job. charles: well but as long as he knows that up front and he knows there's only one president right so no matter how brilliant larry is his job is to present ideas to president trump and ultimately president trump is the guy who says i want to go this way. charlie: i hear this from everybody and maybe it's just me because i'm jaded as a journalist but every one of the people that go into that administration think they could change trump, that they're going

to have his voice and listen to them because he's a good salesman and when he's selling you he makes it like he will listen to you. bottom line is that's not what's going on here. this is his way or the highway and by the way, he doesn't have a very lineal way of thinking. it's circular he will come back to different issues and you know , larry could find himself listen maybe he's telling people it's one year in and out. do some good for the country and move on. charles: sure. maybe a career would be wonderful to have. charlie: at 70 years old it might be the longest year of his life. charles: who else is in the running? charlie: well, navarro is in the running and obviously somebody we don't know, i heard bob steel e that used to work in the bush administration, you know, p erella weinberg, mick mulvaney, there's others that people talk about it sounds like it's going to larry.

what's interesting yesterday is he didn't really offer it to him when he spoke with him the way i understood. it was more talk like, you know, where they both were trying to get comfortable with each other particularly the president with him. charles: right. charlie: so my guess is tomorrow , after the republicans lose that pennsylvania seat, and the markets get a little skid dish, they announce larry kudlow that's my guess. charles: thanks a lot charlie. charlie: on both of those. charles: by the way voting is underway in that special election in pennsylvania. why does race actually it could be an early indicator of thins to come in november midterms?

charles: well, voting underway in pennsylvania district president trump won by nearly 20 points in 2016, so could this race be an early indicator of things to come in november? the national review contributor editor former clinton polster and gop fundraiser extraordinaire noelle. speaking of fundraiser the gop poured millions of dollars into this race. the money they put into it feels like do or die like this must really matter big time and have major implications for november. >> we need it and we need it for a lot of reasons we need it because we need to keep the

synergy in the house and we also need it because it's very important to the state as a whole. you know, we are looking at 2020 we are looking at other midterm races this year and we want to make sure that we keep the consistency. we already had the snafoo in alabama and that was a special deal like anything else very bad circumstances but regardless it was a democrat win and what we don't want to do is have another special election and another democrat win because of any other circumstances. charles: although the irony here is that this election came about because of scandal as well with the republicans so maybe you can count if you lose by one point you could say that cost you two. >> [laughter] charles: doug? you know, after 2016, there is dreams and hopes that perhaps this trump weight could actually become somewhat permanent that you can turn pennsylvania, ohio, and these states into at least for the near term into red states. >> well i don't think it's going to happen and my sense is that this will be very very close tonight and that conor lamb, the democrat has a very good chance

of winning notwithstanding the money that's been spent, the fact that the president has campaigned for the republican rick saccone and i think it is a referendum charles to answer your question. if the republicans lose given that there's going to be re apportionment in pennsylvania this year as well as a result of a court order, i think that would be a hard dinner of ill both for the state and for holding the house. charles: there was another harbi nger in the way lamb is running or is there at least a epiphany within the democratic party that hey if you are going to win the midterm elections you have to run as a quasi republican? >> well i think he's basically a liberal wolf in mr. lamb's clothing and running a moderate now saying that he's pro-life and against nancy pelosi. they always say that in the campaign trail but they actually get sworn in and nancy pelosi rules these people with a whip and they fall in line. not one democrat voted for trump 's tax cuts in the house or senate and i suspect if he's elected he will fall under her hammer and continue to vote the

pelosi line. >> but what it is saying if this democrat wins it's because he's more moderate. that should send a big signal to the democrat national party, guess what, the left is not resonating we need to get candidates more to the center. >> couldn't agree more that make sense and what i think you'll see is that if conor lamb is elected he may vote democrat most of the time, but he wouldn't vote for nancy pelosi for speaker. that's for sure. charles: well but what about the implications for 2020 because it feels like the names that are resonating most are all far left whether it's sanders, warren, ca mella harris. >> in the democratic primary those who participate are far left like in the republican party it's far right, in general elections it's a much more moderate electorate and that's what conor lamb is trying to appeal to. charles: so where do the republicans go from here? if just think both scenarios let's say lamb wins tonight, where does the republican party

go, where do they seek solace if you will? >> well whatever happens the gop has to be energized, has to be focused. i think there's some amount of complacency on the grassroots level there's the sense of well trump is in the white house and we can relax and on the hill these guys should be pushing a strict free-market government oriented agenda and not taking this awful spending bill that went through a few weeks ago they need to be on offense. charles: noelle, you understand the process why are they picking such bad candidates? i'm not sure why they're saying sacconex had is a bad candidate but something he's just not a good candidate. why isn't the filtering process better that they're not getting better candidates? >> we really need to see number one more diversity on our ticket we need to see, you know, more enthusiasm in some of the races and what they're looking at just in this race, we're looking at conor lamb who is young, whose enthusiastic with

kind of the same old same old guard coming out of the gop so, you know, we still have to remember even though this is a federal election this is still a local election. we've got the opioid crisis on the table. you know we have a lot of things pertaining to that, you know, that demographic wise in those counties and another thing is we don't need to take for granted all the demographics we scooped up in the previous elections we can count on them all the time going forward. charles: doug? >> i couldn't agree more with no elle. >> [laughter] >> it's hard, we disagree. she remains a friend but the republicans need to be more diverse, the democrats have to learn that if they go far left, they cannot win and they will minimize their chances of re taking the house, and they also need to develop policies that are even cooperate where appropriate with the president. charles: so if they win tonight if lamb wins tonight will the

party admit as much or will they take victory as long with the mainstream media shove it in president trump's space but stick with the same game plan overall. >> look i've been doing this a long time and hope springs eternal charles but if they say he's shown is right and bernie sanders is wrong, i'll eat my metaphorical hat. they will stick with their left wing agenda. i wish i could take on my friend deroy and say no no no they will move to the center but sadly i don't see it happening even though individual candidates and i dare say the party have to do it to maximize. charles: on the senate side they have to do it. >> they are doing it. >> they are going to suffer in fundraising too because if your message is confusing if you don't know you're pandering to the far left or the middle then how is it if you're able to raise money with that you've got to unite not only with your candidates in the direction of your party but also with the donors to know what page your on >> right now the democrats are saying they want to repeal the tax cuts and raise taxes a

trillion dollars to spend on infrastructure. well i hope they run on that. charles: lamb is not going to but to your point they do as a whole maybe there's the house the gop can keep the house we'll see. thank you all very much appreciate it. well trade tensions with china are ramping up so just how concerned should investors be? we'll be right back.

>> in terms of steel, you know, we make about 10 times more steel than we do. we have to have steel for strategic reasons for sure and then have to be 100% dependent eventually on china for our steel i think it's crazy. i think we have to get some balance there. i think it's absolutely correct the way he's moving on that. charles: charles schwab saying trump is right on these steel tariffs meanwhile trade tensions are ramping up with china as president trump has announced that tillerson is out the united

capitol ceo joe duran and gerri willis on what we should expect from the market going forward. rich let me start with you, because we were up 200 we were down 100 and essentially we're unchange for the session but you can feel something happening with tech stocks, which have been once we heard that mike pompeo was taking perhaps could get the job. >> yeah, well tech stocks maybe due for a correction they've led the market for a number of years , there's bipartisan talk about regulating tech through antitrust or whatever it may be on tariffs let's not forget that president trump has taken credit for the stock market in 60 different tweets. i actually think this is a good thing because he wants to be seen as a winner, and so i look at it as moves on trade as negotiating ploys, perhaps to ramp up the enthusiasm among his base but also getting feedback

that harley-davidson may be punished by overly aggressive trade tariffs so i think i'm actually kind of confident he's not going to go overboard on this. charles: gerri he may not go overboard but he is very serious about this campaign promise and, you know, you've got two weeks now where the eliteists if you will are out, and you've got folks coming in who believe sort of in that economic nationalism. gerri: well that's true, and you know, to rick's point, i do think that the president is also very serious about it . it's having an affect on the markets and it's not just that tech may be overvalued at this point maybe its gone too far too fast but also what would be a great place to retaliate it might be technology what if china says we don't want intel chips any more we'll put a big fat tariff on it but the reality is that every country in the world has some kind of tariff in place some kind of impediment to some kind of product that they make, they're all over the place, europe puts huge tariffs on

their agricultural products and the question is i think this is not that easy to answer is steel and aluminum is this where we should place these tariffs? you know, steel is an industry that has been, you know, going down the drain literally for 30 years. charles: yeah. gerri: aren't there other products that we make that are also critical key to protecting ourselves, maybe in technology that we should be more concerned about than steel. charles: well that brings up the point, joe, robert lineheuser initiated what they call a section 301 investigation of china back in august of last year and in fact most of the articles back then said that china didn't think we had the where with all or the guts to challenge them. president trump calling it their bluff and we're talking about going after trade secrets, intellectual property theft and counterfeiting which could cost our country up to six or # hundred billion dollars a year i think the administration is serious about this and if they

are what does it mean for the stock market? >> i think that we're going to see a continuation of what we seen so far for the last six weeks or so. very few people have noticed that the russel 2000, the small cap stocks are back to their peak levels that they reached at the end of january, while the dow is about 1400 points away from its peak value so you have a very big difference and what is the market telling you? the market is telling you that it's concerned about the implications for large cap companies of where the retaliation comes from. this steel thing is the first opening by this administration. it's a very small to china remember they're at less than 2% of our steel trade so it's not an impact to them. it's the beginning of what i think what you'll see is an escalation of standoff and that will be not great for global trade and it's certainly not great for large company caps it might disagree disappear but people are leaning towards small

companies which are not as exposed to the international drama we are just in the beginning of. charles: the russel more of a domestic oriented index that has come on strong although since trump has been in office it still lags in fact rich caterpillar, on inauguration day $163 a share, a couple weeks ago hit 365 so it's backed off a little bit but it's still i think a lot of folks are saying if we've got to back off just a little bit the way caterpillar has in order to right this ship in order to stop china from rip ping us off i think people are willing to do that. i'm not sure wall street is but the american public is. >> well, for now, they are charles and i think with these 2018 midterms coming up and everybody knows the house of representatives right now is going to be a coin flip and it's a matter of mobilizing your base , perhaps that's required. i do believe at the end of the day, you know, when you do the electoral calculus for 2020 and you see that you may have heard

agriculture & companies like harley-davidson in wisconsin with your trade policies and wisconsin is what got you over-the-top in 2016, you know, that this will be a mitigating factor on trump going too far on trade. charles: what do you think gerri gerri: well what was so interesting about that charles schwab interview is he's been in hong kong for like 20 or 30 years with a presence trying to get into china and he never can. he keeps knocking on that door and they never let him in. why? because he's an american. so i think the idea of saying hey world, you know, we participated afterworld war two letting allowing companies to come and play in our marketplace , we've helped asia, we've helped mexico, we've help ed candidate it's time for a little love our way. i think there's some sense to that at the end of the day and leveling the playing field a little bit makes sense. the question again is is it steel, is it aluminum, is that the right place to go. charles: i think we've already started with steel and aluminum, i think we'll branch off and the next challenge is intellectual property theft, you know,

counterfeiting, trade secrets that's the big one. that's the trillion dollar rip off right there and to gerri's point there's something to be said about reciprocity. you know, that's just being treated the way we treat other countries. >> i think that's true, but we have to consider who wins when we have free-trade. the u.s. consumer wins. charles: but is it free-trade though? if governments subsidize companies to the tune of 100, 200% if they have tariffs against our products and we can't sell is it really free-trade? >> well, it's obviously unilaterally favorable tasks but what we see by the evidence of our stock market is our companies are able to innovate and work their way around it. it is not fair trade, but the reality is that globally, we still win massively because we end up with net capital that helps to drive our debt down, cost of debt, and we function with much lower inflation rates

because it's generally freer trade. charles: we've got to go but i will give you this nugget this morning caterpillar came out with its global retail sales and it's phenomenal around the world thank you all very very much really appreciate it meanwhile president trump heading out to california and wants to tour the border and check out those wall prototypes he'll be speaking at 5 p.m. eastern catch that and the fallout, and of course what's happening with these markets on my show making money at 6:00 p.m. eastern right here on fox business.

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to grow your business with us in new york state, so lionel, what does 24/5 mean to you?rade well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? charles: got breaking news now secretary of state rex tillerson will be making an on camera statement in the state department briefing room making an address for the first time since being ousted this morning. president trump meanwhile landing in san diego in the next hour will tour the border wall prototypes, to former u.s. border patrol deputy chief

colburn along with center for immigration studies executive director. mark, we've got the border wall prototypes there, but more importantly, california as a state that has drawn the line in the sand, that they have actually gone to war with this administration, not just overboarder wall but everything immigration-related but what else should we expect from president trump while he's out there? >> well, i mean, i assume he's first of all going to take a look at the wall prototypes and say some complementary things about them but also reiterate the message that the attorney general sent earlier that the federal government isn't, you know, is not going to make california do things it shouldn't do but will not tolerate the kind of action that california's taking to fully friday and interfere with federal law, as the attorney general said, you know, south carolina tried this thing back in the 19th century and it didn't work out for them.

the states do not have to do things the federal government tells them to do if it's an area within state responsibility, but states have no right to interfere with federal law enforcement and the lawsuit that the justice department filed against them eventually is going to make california back off. charles: ronald of course the sanctuary cities roll off the red carpet and protect folks but people don't stay in those cities and meanwhile the red carpet has also rolled out to folks like ms-13 and so forth, and, you know, to me what's amazing is the people who suffer in my mind the most are the legitimate immigrants who waited their turn in line, they established communities, and yet they become the victims of crime and other things, because the folks that say they're looking out for them really aren't. >> absolutely correct, and i'm hoping that president trump

while visiting also gets a chance to visit with the men and women of the furthest reaches on our borders that stand into protect them. besides looking at the prototype s of the law which is important, getting briefings to washington d.c. is different than being there personally to hear it and see it in the voices and in the eyes of the men and women and to see the prototypes himself and he's that kind of leader based on what i've observed so far. when it comes to ms-13 and what the previous administration did by allowing so many of them to come in under the guides of un accompanied children just last year the trials of ms-13 members of murdered high school students on long island new york and my question is how do they get on long island new york? we brought them in. we the people through the obama administration's federal immigration laws. there's no such thing as sanctuary that's a political

emblem to those who just in previous years attacked people like maricopa county sheriff joe arpaio for he himself trying to help the federal government enforce laws, so they can't have it both ways. charles: well for now they want to have it both ways and we know the court system sometimes can take a long way, but it feels like that's the only thing ultimately that will resolve this issue because when you have mayors of cities like oakland defying the federal government, it certainly tells us we're in for a long road here. >> yeah, absolutely this is not something that we're going to be able to snap the fingers over and resolve. on the other hand, you bring up that the mayor of oakland who warned illegal immigrants criminal aliens that ice was coming after them the justice department is actually looking into whether it's feasible to criminally prosecute her for a whole variety of federal crimes and that's the kind of thing that may actually get results quicker than the broader lawsuit

against these sanctuary laws. charles: gentlemen thank you both very very much really appreciate it. outgoing secretary of state rex tillerson is set now to address the nation for the first time since being ousted this morning. fox business will bring you there live, right after this. whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a...

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charles: we're awaiting a statement from outgoing secretary of state rex tillerson , meanwhile, three package bombs have exploded at homes in the city of austin, texas, causing now that city to be on edge. fox news national correspondent will carr is in that city with more. will? reporter: charles this is really a city on edge today authorities have told us that they've received 150 calls from residents worried about suspicious packages that have been delivered to their homes and it comes after there have been three separate explosions here over the past week and a half. two yesterday the big question here is motive. what is behind the person or the people who are leaving these packages at people's doorsteps and they go on to explode. take a listen to what the police chief has to say. >> what we do know is that the individual or individuals that are involved in this, these suspects they do have a certain level of skill to be able to

construct a device like this and then deliver that device to your target without having it explode . reporter: authorities are being relatively tight-lipped about their investigation. the one correlation we do know is all the victims are minorit ies. authorities tell us they're looking into the possibility this could be a hate crime but at this point there's still too many questions not many answers here and its left neighbors in communities like the one i'm standing in right now quite uneasy take a listen. >> i check my house first of all to make sure nothings on fire or anything like that. i didn't look outside at that point and next thing i knew was the police were knocking at the door saying that there was a suspicious package, one has exploded and that i was needed to leave the house. reporter: and this is all taking place with hundreds of thousands of people in town for south by southwest adding to the urgency there the governor now is offer ing a $15,000 reward for

any information that leads to an arrest charles. charles: will carr thank you very much, so is this a newest now we should be worried about to former marine bomb technician jon jones on what we can do to help prevent future attacks like this. johnny, we heard already 150 calls from president dents all concerned about suspicious packages, we get them every day now, how would people anywhere else live their lives now. >> well i'll tell you this isn't something that there's a quick fix for. there's really not a legislative fix beyond surveillance and monitoring activity and and line purchases that could become a bomb. the problem there is it's household materials used we're talking fertilizer for people that farm, we're talking anything that can make a light turn on or a bell ring and a toy can be used to make a home made device so the big thing that we can do is if you see something say something. if we put out hey there's

suspicious packages don't move them then don't move them and call the authorities that's the best thing we can do, preventive measures are limited. if you remember timothy mcveigh killed 168 people in only about 20% of that bomb actually detonated and why i point that out is that we're having a big conversation in our society right now about what tools people use to commit mass murder and how in our culture, we can try and deter that and identify people who may do so. you know, where you live in a world where teenagers build their own drones they can build these types of bombs. this bomb could be sophisticated and use something like a photo cell or a mercury switch really sophisticated things or it could be just the way wires are placed within the box. it could be that simple, and so it's not hard to do this. the information is readily available, the cookbook isn't getting taken off amazon any time soon so the first amendment protects the information we just have to look at the types of people who might use this

information to hurt people so it is a risk we have and i think we need to reassess some of the information that is out there on bomb making and how people can access it. charles: now from what i've heard, and there's limited information i think, but these packages have to be a certain size certainly they've been large enough to kill, so we're not necessarily talking about a box the size of a pair of shoes are we? we'd be talking about something more substantial than that? >> well, grenades kill people and you can put that en the palm of your hand. the type of explosive and how powerful it is up to the bomb maker. there's certain types of explosives a lot more common when we talk home made because you don't have to synthesize something. there are things you can just mix together and create an explosion. that weakens the amount of explosive power but if you put certain things in there with the bomb, not say too much it makes it more deadly. close range is the most deadly, so really what we need to look

at here is when we put out information like if you see it don't move it listen to that information, do what the police tell you and i'll say that these components don't just vaporize with a bomb explosion. they already have a good idea of how these bombs are made and from that, what materials are used where they're acquired and then they can go and search histories on google history and amazon history things like that and try to find who might be it. charles: each bombmaker leaves a sort of signature right? >> absolutely and that's our best friend right now are the components that are left behind. there are even fingerprints lifted from the box itself. things don't just vaporize and they are doing everything they can to lift forensic evidence and i guarantee we'll know more in the next day or two. charles: really the big word here is just don't touch these packages no matter what even though there's evidence that these weren't necessarily mailed or used by the overnight services, even then, you would suggest to the residents even if you thought the ups person left it there don't touch it.

>> well, the word right now from the police chief in austin is if you were expecting a package, you got an update that it was delivered and the package on your doorstep matches that courier and sender then that's probably a safe package. what all of the packages so far weren't labeled in any way or delivered by a courier in any way and that's what makes them dangerous or suspect so if you have a suspect package then don't move it, don't touch it call the authorities. the types of switches used in these probably are either when you open it it's called pull to close or an anti-disturbance so any type of movement could set it off. charles: you know the point you made earlier that we live in a world now and people want to find ways to hurt you they can. johnny thank you for your expertise and always as usual thank you for the service to the country as well we appreciate it >> yes, sir thank you. charles: well rex tillerson now set to make a statement in a few moments we'll bring you that live when it happens.

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charles: rex tillerson set to make a statement any moment now. this will be his first appearance since being ousted as secretary of state this morning. a whole lot of questions swirling around and they are two-prong. first the economic side of this.

what does this mean for trade? then there is foreign policy, north korea talks, what does it mean for future? i bake -- break it down on "making money" 6:00 p.m. eastern time. here is trish. trish: thank you, charles. we're about to hear from outgoing secretary of state rex tillerson. that is where we'll be going live. that is the first comments since president trump's big announcement that rex tillerson is out and cia direct are it mike pompeo is in. as we await for president trump to arrive in california that is happening a short time from now. the president is there, prototype for his border wall. i'm trish regan. welcome to "the intelligence report." president trump parting wayses with rex tillerson today following several disagreements including the iran nuke deal and north korea. president says he needseo