there are five seconds to go. in that time i will say it's a pleasure being with you this friday. charles payne, it's yours. >> stocks are higher. the trade concerns haven't gone away but we always act like they do when a market goes up. it's a busy day at the white house. russian sanctions, tough talk on china, there's also a lot of scuttlebutt about who would be the next white house person to be ousted. adam schapiro is here. >> the intrigue among the washington is never ending but let's do the facts on the ground. sarah huckabee sanders says that as far as staff replacements and in regard to the reports that hr mcmaster may be out, contrary to

reports they have a good working relationship and there are no changes at the national security council. john kelly is still the chief of staff although the speculation game continues. sean spicer knows what it's like to be on the inside rather than the outside and here's how the commented. >> some people he knew and trusted well and he brought with them. other people he took the advice with others and in some cases there wasn't a great fit. you have a lot of people who come in or used to be in charge. charles: when you talk about being subservient to the boss, the bosses president trump talking about new tariffs against china. foxbusiness confirms that the tariffs are set to go. final touches being put on those. originally it would be about

$30 million of tariffs to be announced at the end of the month. this president sometimes surprises his staff for they are working on raising the number. the president throughout a $60 billion figure. somewhere between 30,000,060,000,000 is waiting on the announcements -- 30,000,060,000,000. where is the focus on the economy and jobs? to wall street journal editorial along with fortune executive and after the bell cohost. folks, here's the thing. in the past, we judge presidents on jobs, wages, keeping inflation relatively calm, global peace and prosperity. last year the number of deaths from terrorist groups was almost cut in half. we saw violent crime down big time in america. we saw jobs almost two-point

to million versus a loss of 3.4 million for obama in a loss of almost 2 million for bush. that doesn't make it. again, the central focus on the rate of turnover at the white house is dominating the news today. >> i do think it's newsworthy, no doubt about it. when you're talking about it, this president had come into office not being an ideological person. he's not traditionally republican and i think as a result of that, he has promised he will get results and that is very much what he will be judged on. i think the tax reform and deregulatory push has been huge and what we've seen so far. i am concerned about the tariffs queuing up in the second year. >> the president, although he's not traditional, there's always been a traditional way to measure the president. that's never the criteria for measuring the president.

you have to look at the results. you gave us a litany of what those results are. what this president is doing, one reason he's getting results is because you not doing things the old way. the old way is the collegiality, the beltway brotherhood, everybody get along, et cetera. he sang no, if you don't perform or if you don't link up to what i want to do, you are out here. that's what's happening. when something is not right, it's wrong. it especially going into key negotiations with north korea and iran and china. china mostly on economic affairs but also with regard to north korea, you have to be linked up to the way the president is thinking. charles: last friday as the job number was being rolled out, 313,000 firms had

estimate. none had it that high. 800,000 people back into the workforce, almost a two decade high. i looked around and we have trees on the side with all the different networks, stormy daniels is everywhere. come on, really. it affected one or two people and the other is for all americans. why does that not get what it should. >> in my print newspapers i read about that and digested it with gusto. charles, with respect, i completely disagree with you. i'm honored to be on with jillian. we have been disagreeing for years respectfully, and that's important. you said the president has never been judged this way before. that's because it has always been an understanding that the president of the united states he hates with respect and when he doesn't, it is absolutely newsworthy. jillian, i think she alluded to that. >> so you're saying because he's a mean president it matters more than a two-point to million people got jobs.

>> charles i'm not judging matters more or not. i'm pointing out to you that the jobs report is important. >> what's more important. stormy daniels are people getting jobs in america. that's all i'm asking. >> i think the president of the united states behaving with honor is a very important story. >> i just get so phony because these are the same folks out there, they stoke anger and animosity and are trying to make it -- >> i'm not sure who they is. >> the media that didn't report the jobs number into your saturday morning newspaper but reported stormy daniels all last friday. that's when talking about. it's not fair to the mark in public because it's anger and animosity that we don't need. >> i don't think achievements on one thing should prevent you from getting news coverage on another. i don't think it's a zero-sum game of covering the story at

the expense of the other. this is a personal prominence whose behavior will always be controversial and in the spotlight. if you don't want printed, don't let it happen. >> maybe i'm cynical because i grew up in washington d.c. but i've seen politicians misbehaving, miss treating each other but in a public it's a hold of francine for they are phonies in public. we saw the veil ripped off during the clinton administration of some the stuff going on. it wasn't just bill clinton. there's a lot of other president. my point is clear you have to judge presidents on the results and the results have been pretty impressive. >> i will get the language wrong but i think was president reagan who said the united states needed to be this shining beacon on the hill. >> i would point him out as an exception to the rule. [inaudible] the aspiration has always been

that the president of the united states as a leader of the entire world. >> we have to judge people -- >> you alluded to american knew who they were hiring to win this country and they got the person to do the job with respect to the tag edge, the personal baggage that comes along with that. it's unfortunate that the mainstream media doesn't feel confident or worthy enough to leave the newscast rather than be something that falls in the middle of the paper or where someone incidentally may hear about it. another big issue, the white house, these tariffs, obviously a lot of different reactions from investment communities to main street, particularly as it pertains to china. we have peter tell on earlier and he said we need to rethink. >> even something like the tariffs which are always supposed to be antiterrorist, i think that needs to be

rethought. it's obvious that there's something wrong with our trade relations when they are the symmetric. we import $475 billion a year from china. we export 100 billion. that's an incredible trade deficit. >> adam, most of the folks who caution against tariffs and trade wars harken back and that was a most a hundred years ago. have the dynamics of commerce, of the world changed enough to make me rethink it? >> , free trade to the core and i think the game the president is playing is extremely dangerous, but i am willing to concede that this is the right conversation to be having. we should be having bilateral negotiations but to just use this as a negotiating tactic i think is dangerous. >> and i just jump in, i used to be with the wall street journal editorial page. i editorialized about getting china into the world trade organization before that.

>> so it's all your fault. >> exactly. the point is, i'm just going to quote something from a 2000 editorial that says china's leaders are betting they can expand economic freedom and still contain pressures for political change. guess what. they bet right. we have been trying since 2001 to get them to behave on the protectionist motivations and also on democracy. we thought absolute free trade was going to get them to behave more democratically, i don't think anybody here would argue they have become more democratic. >> that is true that they have not become more democratic. i am less concerned with the trade deficit than what china has done on intellectual property and the unfair way they behaved against american business. this is extraordinarily complex without any solutions but i think there's -- >> the one estimate i read was $600 billion.

you count piracy, counterfeiting and trade secrets. how you force them to stop? what tools you use. the wto ain't it. >> that's not a thirty second answer but i don't feel fuel tariffs all the way to do it. >> everyone who says tariffs on the way to do it can tell me how too do it. we will fight the chinese with an industrial policy war if necessary and that may be better than tariffs which are a brute force weapon. >> i like what adam just said. >> i don't know that there will be enough time. we should alert the audience, every country has tariffs right now. this is not something were pulling out. we have 25% tariffs on imports and pickup trucks. no one suggesting we get rid

of them because who wants to answer 200,000 people who used to make them five years ago when they don't have a job. we shouldn't pretend that we don't already use tariffs and that perhaps they could be a weapon if we didn't use them the right way. >> i'm concerned about the forgotten man but i was with a man who works in aluminum. 55-year-old guys, this was the first job that had just given him financial independence and he was fired two weeks ago. >> the 650,000 steelworkers before. now there's 400,000 left. >> there's actually hundred 40000. ask the american public who voted for donald trump or they've already said. [inaudible] no one is down. they don't believe there's any pressure. i think the american public understands that more than the elite. >> generally i agree with you.

i'm concerned about this thing snowballing. when you start these trade deals are tariffs, they do have a tendency to snowball and the reaction is sometimes but they snowball even worse. >> if people can afford a car they won't be so happy. >> i hear you. you are right and the american public is wrong. [laughter] >> were not saying that. >> i can't wait until we have one steel job left in this country. were really going to go crazy them. imagine how jeeps cars will be that. >> i think were putting favoritism. >> there are a lot of americans who will be hurt by this. we will have reaction from houston committee member.

that's coming up next.

before robert muller's probe is moving closer to the president subpoenaing documents related to russia.

reaction from brad when strong. congressman, this latest request for information, we did hear from the trump administration yesterday in a statement saying it was routine and they been cooperating for long time. although the narrative now the media is that the investigation is sharpening what the specific focus is on russia. what are your thoughts. >> when it comes to muller investigation, my professional obligation is to make no, on that. we are not supposed to be involved with the investigation. we are not involved with that investigation and i will stay professional that our investigation was something different that we had within the house. we stuck to the parameters and made every attempt on our side to stick to the parameters of that investigation. we knew it was time to bring this to an end and release our

findings. >> your living through the parameters on the scope. the methods, trying to find the truth, robert muller thanks there are certain things, there must be some sort of feeling that there is a path are several paths your committee didn't go down they have already drawn a conclusion to this on the house sides of feels like were not worthy of where other parts are going. >> let's understand the muller investigation has more capabilities than i have. we are investigating in a different manner. they have the ability to get into more things that we do. we had the parameters for our investigation we.do. we wanted to know what the

russians did, did they involve u.s. persons or political campaign. then he what did he do to stop the aggression and what are we doing going forward. >> the main conclusion that there is no collusion between clinical parties with respect to the election. >> that is correct. we felt it's time to finish this based on the extensive nature of what we have done. i think there are some that want to keep this going as long as the next election for their own political gain. i think you could see a lot after the hope hicks interview when after nine hours of grilling there was nothing there to do but did they possibly tell a white lie to say that the president was busy when maybe he wasn't.

>> any comments or thoughts on the potential firing of mccabe. i think that would be up to mr. sessions and he will look at all the evidence why he may need to do that. i think mr. mugabe may have to answer a lot of questions going forward. charles: what the u.s. is accusing russia of hacking america's power grid and the fallout after this.

...

charles: the trump organization and administration rather calling out russia for launching

cyberattacks on america's power grid, deirdre bolton has the details. >> charles the department of homeland security and the fbi says russia has been leading cyberattacks on the u.s. since at least march 2016 targeting american electrical nuclear water, aviation and critical manufacturing properties. a director for digital security firm says that russian state hackers basically had what they needed to manipulate or shutdown american power plants. that particular expert says all that is missing is some political motivation, so if there's civil unrest here in the u.s. it could be made worse by shutting down a water system or an electrical grid or unrest could be caused by shutting down a water system or electrical grid. american officials say russia has successfully attacked the ukrainian power grid making 200,000 citizens there lose power. energy secretary rick perry yesterday using the word "war

fair" in a hearing thursday morning he says cyberattacks are literally happening hundreds of thousands of times per day. the warfare that goes on in cyber space is real. it's serious, and we must lead the world. u.s. treasury department has issued sanctions in past 24 hours on russian groups and individuals who have allegedly been involved in massive cyberattacks. charles it remains to be seen whether the naming and shaming will change russia's behavior. charles: thank you very much and it remains to be seen meanwhile growing concern over whether the u.s. has actually prepared to respond if our power grid is compromised, to cybersecurity expert morgan wright. ironically i think i read one of the good things we have going for us is our grid is so old it might not be smart enough to be compromised. >> yeah, look, all you have to do charles is watch a natural disaster and you'll see that our power grid is still fragile. we're doing a lot better at protecting it but it's the

analogy of saying well i can go two rounds with mike tyson back in the day. well you still can't go 15. we've got to go the full 15 rounds and survive a direct attack. look russia has been using ukraine as their punching bag so our lessons we need to learn is watch what they're doing in the ukraine right now. charles: i remember it wasn't long ago when we had a major power outage in the northeast caused by a small incident in canada, so it stands to reason we're extra ordinarily vulnerable and we've been vulnerable for a long time. why don't we fix this? >> well you know if you look at the patchwork that is called the energy grid, i mean it's a collection of a lot of different things a lot of different power stations a lot of different technologies. they're transitioning trying to make things more network- oriented but that brings its own problems because now we connect older systems to network technology and that's one of the flaws they took advantage of they attacked these cables that connected the power systems to the computer networks and physically damaged them so yeah there's a lot of work we still have to do but the biggest thing

you're talking about is that recovery piece. we know we're going to get attacked the question is how fast can we reconstitute or recover our energy because if you want to go after a nation as was deirdre way saying go after their power and water and you can bring a nation to its knees. charles: wouldn't it be smarter to beef up our defenses rather than figuring out a way to reboot this aged system we have this patchwork we've already got >> that could be part of the infrastructure spending we keep thinking of bridges and tunnels. they're going to be there, what really affects us are things like our information systems and opm breach. all of these aging infrastructureses including the energy one. we've got to spent an equivalent amount of money to beef up our infrastructure because do you know why we've got autonomous vehicles coming and if we can't protect the energy grid how do we protect unmanned vehicles bouncing around the 101 like a bunch of pinballs. charles: it's a glaring issue everyone knows about. what's the problem here? is it money and i'm sure it is

and ultimately where does it come from whose responsibility is it? is it local responsibility? is it a federal responsibility and what role does private business have with respect to putting in money into this solution? >> i think milton freeman said there's no such as as a free lunch at the end of the day but 85% of the critical infrastructure is owned by the private sector but it still needs government leadership certain things around mandates you don't want unfunded mandates so there has to be partnership and i'll tell you what's the best thing the government can do doing it through information sharing analysis center but sharing that intelligence doing a better job of preparing us but look it will not be solved overnight but it will take some regulation, it will take some money but at the end of the day whose going to pay for it are you and me, that's the cost of defense and goes into keeping the lights on. charles: although i'd rather pay for that than a bunch of windmills. let me real quickly ask you this

russia has the capability i'm sure or getting there so does china. do any rogue actors have that ability now if they wanted to to turn off lights around this country? >> yeah, charles i was in a documentary called true iran and we talked about the cyber threat of iran and they were up in new york and they would have been able to successfully take over that accept for except for a routine maintenance which disconnected the network so we already know iran is acting in critical infrastructure as well. north korea we'll see if this over churr is going to make an effect on them but they're the players i worry about those four are the ones i worry about. charles: always great to have you hash this out for us really appreciate it thanks. you bet. charles: well right now the market is in rally mode as investors digest a ton of positive economic data out today i'll break it down on my show making money 6:00 p.m. eastern right here on fox business. today, we're out here with some surprising facts

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charles: well, lots of economic data out this morning and lots of great news offsetting the disappointment with housing starts. the one report though that speaks most about politics and policies and our impact on optimism with the public, the michigan consumer sentiment index rose to a 14 year high as folks are thrilled with current conditions. major milestones include 59% saying their financial progress is doing very well that's the highest level in the history of the supreme court report, income gains also at the highest level in 50 years. now interestingly, the report shows a major bifurcation and optimism among households, the incomes in the bottom third reported on almost 16 percentage point increase in optimism that is huge versus those in a top third saying a 7% decline in optimism. no doubt this reflects world changes and fortunes of main street and anxiety among the leads that president trump might upset the status quo too much with things like tariffs and

this also explains why expectations was down slightly. now, one reason main street optimism is high also jobs are soaring, the report showed a remarkable 645,000 monthly increase in job openings in january to an all-time high of 6.3 million, construction job openings popped to 250,000 up 68 % month over month, manufacturing at 427,000 up 14%. the market is higher on that news but i've got to tell you my mind as long as the dow trades between 25, 700 and 23, 860, these day-to-day bounces are going to be crazy and they will ignore world news. you shouldn't though, because there's clear winners that are developing for the next leg of this rally to emerge. now with market reaction let's go to erin begins and scott martin. scott i'll go to you first. >> yeah, charles i think this is a good scene for the markets as you mentioned there's a lot of positive data. i do think i agree with you there, i do think there's a catalyst coming up it's q1

earnings which start in earnest in april so that's probably your next leg higher but we're expect ing a good earnings report and good earnings season again to come through and that's why you want to stick with the leaders in the meantime. i love looking at cash flow and the big tech companies obviously topline revenue looks really strong so the facebook, microsoft, apple, the amazons those are companies we own going into q1 earnings. charles: aaron maybe i'm spoiled but i don't know if i want to wait until april for a decisive vote. most investors are like last year you kept going straight up now we wait a few months? >> yeah, and we hover in this range with the big drop and one week up and next week down and really had four weeks of the switchbacks and for us i do see that difference i was just speaking at a conference earlier this week and you definitely see this very economic back drop making most investors feel very good but for those of us that really have to think about what's coming ahead this trade war is really concerning for us

and we saw a big drop in industrials boeing really got slammed this week and we're definitely worried about rising manufacturing cost and if this incredible profitability could come to a decrease for pretty big industries. charles: ironically the other side is that the russel 2000 held up pretty good a reflection that maybe the domestic economy will love to see a rebalancing of trade and maybe more manufacturing and things like that in america but for the market itself what do you make of it? >> charles going all the way back right after the election in 2017, i was on fox business and i was talking about how trump's policies reforming regulation of cutting taxes and larry kudlow and steven moore's policies of supply side economics could be a turbo charge to the market and i thought the market would be 25,000 by this time. charles: but we're there and now where do we go? >> what i see in these numbers like you said is those tax cuts are already coming into effect in the sentiment report because small businesses are out there and creating job openings. i see regulation reform in there

, and the construction jobs with that huge move. i think 80% of the small businesses in america of the employers of most americans and i think small businesses now say hey, i have a fair shot. i have more money in my pocket book, more money in my paycheck, and i take that extra money and i can grow my business and i think it's all about growth right now. that's the event. charles: aaron you talk about trade and perhaps cost increase. what does the market fear most because only a couple weeks ago we referred to inflation being too good and now we're afraid things with deflation, i don't know it feels like almost every other day there's a new worry out there and we ignore what's really happening at least from the data. >> yeah, it really is very much about a lot of political headlines and interest rates as well, and then ultimately the really great economic back drop and these phenomenal profit growth we're looking for so yes, manufacturing costs could go up and that would definitely hurt the industrials by most part,

but the rest of the market, the other 85%, that's looking particularly really spectacular. we're looking at those great profit growths. charles: of course i think with boeing, it's not necessarily it's manufacturing it's just that asia, scott, is their big market. that's where it is where the exports are going and where their growth is going to be but besides that because boeing was $159 on inauguration day and recently hit $365 if they've got to give some of that back then so be it. the broader market to aaron's point, beyond those leaders that you watch and that you're vested in will other names start to emerge or will it just be four or five stocks that sort of pull the load? >> you know, charles we start to look at financials as interest rates have backed up a bit but even those have calmed down to your point earlier about inflation. look, everybody was concerned that interest rates were going to take off and they've kind of settled in here 280 or so 285 on the 10 year so that's encouraging. the multi-nationals looking

overseas where their growth is obviously a trade war is very concerning but a lot of this is talk and a lot of these tariffs and all the discussions are worked out in some way, shape or form still favorable, so i would use these pullbacks in boeing and so forth to add to those positions. charles: aaron on that point, even the word coming out of the trump adminitration whether it's 60 billion in tariffs or the ultimate goal of taking 100 billion of the 370 billion deficit out, that's an acknowledgment that there always will be sort of imbalance and that's not the free-trade. i think what we're trying to get here is a free-trade fair trade where companies in china or india aren't subsidized by 100% or 200% because that tilts the playing field. >> certainly. it's just our concern is that besides the trade deficit when you look at the size of the equity markets, so you're talking trade deficit versus equity, you're protecting an industry that's 30 basis points of the entire s&p 500, so that may change your trade deficit but ultimately you're protecting

just a tiny bit of what investors have and so having the trade war where one-third of revenues come from outside the u.s. and that could potentially impact a much greater percentage is what we're concerned about. charles: and of course john the reason i think scott is right china sold us $500 billion worth of stuff last year and they decide not to sell it to us then i don't know what the new emperor is going to do with his grand schemes and ambitions but having said that another thing the market is looking at is the fed meeting the first big fed meeting. we know there will be a rate hike but everyone is on pins and needles in how jerome powell articulates his message going forward. do you know what charles i've been saying for a while i thought increased rates would actually be good for small businesses because small businesses under obama with 0 interest rate policy had no access to capital and i've been feeling like community banks i'm talking to now see there's a spread they want to see the rates a little higher. there may be some inflation that's good but all the people who were getting new jobs are out spending money and will pay

a couple bucks more. the way i see it is main street usa they want to see more money in their pocket. they want to see more money in their takehome, and don't really care about tariffs. charles: yeah, in that michigan number today, one-fifth of people unsolicited mentioned tariffs but again that was a higher end, unremarkable almost 16% at the lower end of the economic spectrum, scott, feel so much more better about where we're going as an economy, and, you know, so you've got two things here. wall street who wants things to be the status quo and you've got main street who looks like they want things to be shaken up here >> yeah, well i think there's finally some trickle down effect you want to call them crumbs or what have you they're getting down to the bottom line and getting throughout the economy and that's the big thing going forward to john's point is you're going to see everybody charles benefit from the de regulation and the tax policy and that's what the administration promised us and showing throughout the s&p and

small caps. charles: thank you all very very much really appreciate it. next the latest from the ground in miami where the death toll is rising from yesterday's bridge collapse. how do you win at business? stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com

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charles: six are now dead from the bridge collapse at florida international university's miami campus. fox news steve hairy tan is here with the latest. steve? >> charles, fire rescue trucks lining the street here this has gone from a rescue operation to a recovery operation, officials here saying this morning that they've exhausted everything they can do to try to find supreme court survivors in that 950 tons of concrete behind me and they used dogs and listening devices throughout the night and now they say there is no one in there left alive. the numbers stand at six dead. among those six dead at least one student and we talked to first responders at the scene at the time they describe a real sense of chaos. >> it was chaotic at first and once i did get down from the bridge after we helped the construction workers, i actually started to crawl underneath the bridge and i got yelled at by fire rescue like what are you doing? there's nothing you can do and i realize at that moment okay yeah , there's nothing i can do

the cars are basically about four foot high, that's how crushed they were. it was a terrible thing to see knowing that there's people in there that you just cannot get to and the major loss of life when i started counting all of the cars, one of our officers was able to assist the vehicle on the end. the driver was she crushed but we were able to get the passenger out of that vehicle. >> there's two separate investigations going on now, one by the police that's a homicide investigation and one by the ntsb. they're trying to figure out exactly why that bridge failed more of a technical investigation. it's not likely that'll have any results for at lost one week. charles? charles: thank you very much, steve reaction from grow america 's infrastructure now spokesperson craig stevens. craig obviously a horrific incident and by the way an event that was being celebrated as a milestone, a unique new way of actually installing those type of structures. i know it's early to understand

exactly what went wrong but what's your initial assessment? >> this really is a terrible tragedy and what's going to happen is we'll have a number of investigations you heard the reporter talk about that. my concern is this was a stress test that was going on while this is being trafficked area. i think that's concerning. one of the reasons to have a stress test is to see how far or to push limits of the structure whether that be a building or a bridge or even a pipeline. you want to make sure when those are being done you're mitigating the possible harm to the environment or to anybody around charles: sure, hence that's what it is it's a stress test, and you know the idea to have it going on with live traffic is bewildering but some folks are also kind of concerns apparently this is what they're calling virtual construction and it talks us to a new age and makes it easy and seamless to put these structures up without interfering with what's going on in the area. could this be some sort of period for the construction industry itself maybe to take a step back or a pause?

>> well this type of construction has been happening at least for a decade here in united states and typically without incident but to your point i think your folks will take a look at this see what happened and make sure we don't have this situation again. charles: what about materials? i saw one report there was rebar , again, we always talk about space age things and being able to, you know we're talking about living in a world where we 3d print homes at some point so again, i'm just sort of wondering and concerned and i know a lot of people out there are about the roads and bridges they're driving on today. >> yeah that's a great question. i think with this there's an investigation we'll figure out what went wrong and make sure it doesn't happen again but to the broader infrastructure issue there are crumbling roads and bridges and proper investment and also regulatory agencies watching this but allowing construction to move forward. charles: are you confident that was a big hot topic and washington talks about it all the time the irony of both sides of the political aisles say they

want infrastructure and i think as the american society of civil engineers, the urgency obviously is now. >> charles you're absolutely right, the americal society for civil engineers has given our nations a d plus when the infrastructure. the president put forward a plan to get these projects moving but i think one of the most frustrating things in washington is that nobody is moving on it and you know like you said it should be a bipartisan or something both sides want to support especially going into an election year but we see nothing charles: craig stevens a tough top in as they mourn, you know, we're already this early in the process of mourning these people trying to figure out what's going on so we really appreciate your expertise. thank you. >> thank you charles. charles: we'll have more right after this.

charles: welcome back to cavuto coast to coast i'm charles payne in for neil cavuto. stocks higher amid the trump adminitration is running tough against china hitting russia with more sanctions possibly making more staff changes. hillary vaughn is at the white house with the latest. reporter: charles well a day after the white house slapped down sanctions against russia, republican lawmakers are hoping this is just the beginning of an economic crackdown singling out putin and his friends. >> i think there should be stricter sanctions certainly on anything involving russia's defense industry. i think we should go more after people closer to putin, people

around him, because he is an all-powerful dictator but on the other hand there are these oligarchs who have a lot of control over him and his future may depend on them so i think we should go after the oligarchs more. reporter: the chairman of the armed services committee says this could be just the first step in the economic squeeze against russia, saying on fox this morning that the u.s. should consider helping wee n european allies off russian energy a move he says could stall a key part of russia's economy but president trump not only taking a tough stance against russia but considering tougher tariffs on china reports that trump and some of his top trade advisors are looking at actions to penalize china's american intellectual property including tariffs on at least 30 billion of annual chinese imports so as the white house eyes more action abroad, they're pushing back against multiple rumors of a staff shakeup at home last night and this morning the white house pushing back against reports that national

security advisor lieutenant general h.r. mcmaster might be the next to leave his post. a source tells fox business that mcmaster had breakfast with the president this morning and was assured he was not on the chop ping block and there's also questions swirling around former deputy fbi director andrew mccabe and if he will be canned right before his pension is set to kick in. sources tell fox news mccabe was in a meeting with doj yesterday making his final pitch to keep his job and of course va secretary on the hill yesterday was silent when reporters asked if he felt secure about his job. the secretary has been under scrutiny following an ig report that claimed he misused taxpayer money, white house press secretary sarah sanders saying yesterday that she's not confirm ing any staffing changes now, but they're always looking at ways to improve the va, and that includes from the top down. charles? charles: thank you very very much, and the media continues to suggest that the white house is in chaos, but where is the focus

on the economy and jobs, former bush 43 deputy assistant brad blakeman and vp of public affairs and fox news contributor , all right, now you think the media should pay more attention to results. right, i think that if you look at the results and less at the process, this president has had phenomenal success, cutting regulation, full employment, interest rates are low inflation hasn't raised its head we've created over 3 million jobs. and we have a tax cut generation aalmost in nature first time in 31 years and the president has made grade approaches with our allies, and has made great gains with our adversaries and foes, holding their feet to the fire re negotiating a lot of our bad trade deals so yeah this president is unconventional, un orthodox. you're not going to see the more seamless white house as you'd see if a governor a sended to the presidency, so this is a natural occurrence i think with

somebody whose not served in government before. charles: you know, sabrina a natural occurrence to be in this age of celebrity also with the gossip and all those kind of things i think my main beef though is what brad just rattled off and a lot of other things really important news going on developments that impact every american taking a back seat. i think it's an agenda by the mainstream media to deflect from the achievements at the white house and i don't think it's fair to the white house or the american public. >> you know, i take some of it with a grain of salt charles obviously i'm in public affairs and get how this game works at the same time this is a white house that unfortunately, brad says they're not typical but it is disruptive behavior. it's not necessarily that unusual to see people fired as quickly as they're being fired in this white house, but the numbers of people is definitely different from, you know, past presidents and i think it's important because we have a lot of people in washington who are really skilled who have long histories, lots of political expertise and they're going to

be weary about entering a white house that is this volatile and that's not good in terms of setting long term good policy decision. charles: by the same token gary i think president trump might be weary of having the people in d.c. who have been there so long and want a new fresh approach. certainly that's what the american public voted for. >> well look here is where i will defend him. he was not a politician coming in. he did not have all these relationships coming in like a politician, so he just got to meet a lot of these people and he just decided he doesn't get along so he wants to move along with somebody else. most definitely there's been more turnover than normal but no big deal. i'd rather have the best people in there as possible. and look as far as the media, they just hate the guys guts. good news is bad news or under reported bad news is end of the world and i'll just go back to friday. you had a great employment number. we heard crickets except i saw a couple of people brought of to say this is more of the obama

economy than the trump economy and it's not going to change going forward. charles: sabrina do you ultimately think though if the president doesn't become more savvy with respect to how he does these things, that that could impede his ultimate goal? >> yeah, and i think that's the bottom line here charles is there are good things coming out of this administration and you know i can think of many instances now where i will look at new appointment or new regulation being rolled back but at the same time the president is so busy tweeting and making sort of a scene for himself on the side that no one is paying attention to the good things that are happening so i would recommend to the president from a communications perspective that he's a little bit less out front that he's a little bit less, you know, reality tv and a little bit more west wing. charles: brad what are your thoughts? >> look he could be more deliberate there's no question in his own personal communications. >> a lot more. >> but the bottom line is the president is making great gains and advances to the american

people, much more to come, and but look, the press always sees the glass as half empty and it's always gloom and doom and it's always more about process and in treeing than it is results so i think the president is doing just fine. charles: gary, i want to switch topics here because there are now reports that the trump adminitration sweeping tariffs against china and of course wall street that there will be retaliation. now we do know that we have a massive trade deficit with them and there's some reports that china steel is up to $600 billion a year in intellectual property theft but what are your thoughts as first an invest or but secondly as someone who really, you know, what i like about your work is you go beyond wall street. >> well look, china is a bad player. they have taken advantage of us for many years because we've never done anything about it, so i actually applaud trump going after this, but for me, the way he's going after it a little bit too harsh with the rhetoric and i'd rather have some unilateral

negotiations with their trading people over there before we start jumping after them. why? because china is going to act in their own best interest and for every action there will be an equal and opposite reaction and in case you don't know, tariffs are a tax and in the end the tax always gets paid by the consumer and if costs goes up that could hurt the economy, so i'm hoping we pullback a little bit, maybe get into better negotiations in a room with the door shut before we start going crazy. charles: i will say when you google this you'll see where jack lo. was in the room with them on maybe a dozen occasions over his term and then the guy with bush was in a room with them and then, you know, i get where you're coming from, sabrina now if a tariff is a tax , why would another country put tariffs on products and tax their people in response to those taxing ours? i mean do i understand the fear factor but when do we pushback or do we just let it slide?

>> well look, i think there's room always to have negotiations about our trade deals but we're forgetting there's two sides to the ledger right? it's not simply jobs but also having affordable goods and services that makes for a productive strong economy and that seems to be overlooked and also an interesting wedge between the white house and the conservative movement. you know, throughout the campaign this was a real concern for a lot of ideological conservatives they were very concerned that while the president may have been understanding things on tax reform and he may have gotten what needs to happen in terms of healthcare changes, he wasn't really on the same team when it comes to trade and i think that that could cause sort of continual problems for him if he doesn't are those surrogates out there saying he's doing a good job. charles: brad, you know, of course he's realigning his closest surrogates if you will, and listen, picking larry kudlow he picked someone that will be a descenting voice but also says at the end of the day, the president decides to go with a

certain plan, he's going to rally around him and help him promote it. we know something is wrong and i don't hear a lot of people giving solutions and we've tried a lot of things over the years and in 2000 china had almost 0% of the steel industry now there are almost 50% because of subsidies and dumping still in the rest of the world but that's the drop ic the bucket to it theft. how do we combat it? >> we combat it by doing exactly what the president is doing and that's calling out china saying we have a big stick too and look , we can either be hit by the stick or we can pick up our stick. our stick is bigger than there's we have a much more entrenched economy than they do. their rising power but no match for us yet and ip is the perfect example. china doesn't invent things. they're makers, takers and faker s and i think the president by being tough on them and by saying we're not afraid to use our stick, you know in the short run and it may hurt us but in the long run we will gain.

charles: although stealing all that it and stuff for the years there was a report out by deloitte that of all of the uni- corns in the world we know companies less than 10 years old worth a billion dollars we have 105 and china has 96 so they are gaining technology and gary ultimately though do you think we'll have a trade war? we've speculated about what we should do but ultimately do you think there will be some adjustments made and that we'll just keep the relationship going i think china will concede something. >> there will definitely not be a trade war. everybodies interests align together and we can get along together but again, i think we're going to go through some pain first and it's going to affect stocks to a certain extent especially especially you've seen it in boeing and caterpillar lately and u.s. steel go up and down so i do think there's pain because we've got to get to a certain end but i do not think overall there's a big trade war unless somebody gets crazy and i think

people are smart enough not to. charles: sabrina trade war? >> i don't know a trade war but i think there's economic uncertainty especially for certain groups like farmers and people in areas that are really hurt by these tariffs and also think this is going to have political uncertainty for republicans so a lot of people aren't getting on board with this. charles: brad, trade war? >> no trade war china's going to fold like a cheap suit. >> no they're not. charles: [laughter] they'll pushback but i don't think the emperor wants to start off on shakey ground. you guys are fantastic thank you all very much appreciate it. coming up stocks and rally most of the day but markets still on track for their second down week in a row.

charles: this just in, the white house saying president trump and south korean president moon talked today about preparations for the upcoming engagement with north korea. trump also reiterating his intention to meet kim jong-un by the end of may.

we'll bring you more details as they come in. meanwhile, robert mueller's special counsel subpoena trump organization charlie gasparino on what he's hearing. charlie: let's just talk a little bit about what that means the trump organization has been essentially cooperating with the mueller probe, but you know, last couple of weeks, something happened in terms of where the investigation is going. you know, we all know it's obstruction of justice is one of the possibilities, firing james comey amid this investigation, sort of the investigation to possible collusion between the trump campaign and russian agents or agents of the russian government. the last couple weeks at least according to the witnesses that have been deposed or interviewed , they're looking more and more at trump organization's ties to the russians, particularly that moscow hotel, the trump moscow hotel which was proposed never

built essentially pulled it back and the timing of that versus the timing of him running and any connections between the two. amid all of that, and this is just from questions to the witnesses, you have the overlay of mueller subpoenaed documents which means that he's signaling that this aspect of the probe is extremely serious, it is real, it is not just we're kicking the tires, you know, he wants to make sure that they hand him everything he wants and if you don't, you'd be violating a subpoena which would put you in jail. charles: when was the hotel like in other words the timeline? charlie: the hotel was proposed in may-june 2015. as you know, trump announced he was running in june 2015, and there was and then i think they pulled back some time in the following year, you know, when he was winning the republican

primaries, the optics would have been horrendous. listen he separated himself somewhat from the business his kids could have done it but because of the optics with it plus with the overlay of a lot of talk about russians interfering in the election and him always talking, you know, one of the problems i think donald trump has is that he created the sort of foundation of the people wondering about this whole thing because remember how much he talked about vladimir putin. charles: i thought he wanted a friendly relationship. charlie: he wants respect from him and he also in tweets prior to that said he wanted to be his next best friend. charles: but for that to trigger an investigation of this size and scope, i mean -- charlie: even the wall street journal editorial page wondered and you can ask dan about this like what's the deal with this man crush on putin. it was obvious. obviously you need more than just that but that's what led a lot of this, so --

charles: is there any sense though that because now there's specifically looking at certain things that this is starting to narrow and that we could be coming to a conclusion. charlie: here is what's happening it's narrowing in the sense they're looking at several areas of this is where the investigation is going of importance. the out right collusion, okay, is something -- charles: potential calculation. charlie: the potential of the obstruction of justice that when comey started sniffing around he fired him and we could debate whether that's the president's perogative to fire him or not but anyway that's one thing they're looking at and then there's trump's ties to the russians in terms of his business dealings and these are i guess three, i mean, listen, does mueller tell me this? no. all of us reporters, what we're doing, is surmising from the

questions that are being asked witnesses, and we talked to those witnesses. charles: how do you reconcile this with the house that has wrapped up obviously a broader scope but they did a lot of work over a long period of time and they interviewed a lot of people and they see no collusion and in fact, they've got miss givings about some of the things that were mishandled by the prior administration. charlie: rightist almost like the democratically-run house will give a pass to hillary clinton. charles: charlie gasparino thanks a lot. well, former 2000 democrat vice presidential nominee joe lieberman telling me on this show yesterday that mike pompeo at the state department means, what it means for the iranian nook deal. take a listen. >> i think he is ready to pull out and that would be the best thing to do for our national security and mike pompeo who i know and like and respect, i think will be a secretary of state who will support the

president in the kind of principal tough policy against iran that'll be best for america charles: former state department spokesperson marie harf and former navy seal dave sears. i was kind of surprised. joe lieberman obviously known as a straight shooter but was complementary of the actions president trump has taken recently with the state department. >> yeah, absolutely i think joe lieberman has always been pro- israel to some extent, and anti-iran is usually if you're pro-israel, it's anti-iran and to good reason. iran is not just a threat to israel. one of our closest partners in the region but a threat as well as the united states. charles: marie? >> well, i think that joe lieberman shed some interesting things but the problem when we talk about the iran deal is that president trump and mike pompeo may not like it but they haven't put forward something to replace it with, and that's what happens when you're in charge and

actually governing. you can't just discard something without having a plan to do it better and if they were to walk away and iran were to restart its nuclear program, the next day, that would be squarely on president trump's head, and i do think there are a lot of my former colleagues at the state department who are career officers non-partisan who are worried about the fact that mike pompeo does not seem to support the iran deal and he doesn't seem to support day diplomacy at large for dealing with things like north korea the state department that's what they do is diplomacy. charles: but dave some people believe the i rain yack nook deal started on ultimately getting a nuclear weapon it just delayed it but at some point they'll be able to get it and that will be it. >> absolutely so it allows them to get it at some point in the future 10 or 15 years whatever it is but it's also marie makes the assumption that they stop their nuclear program. we don't have any varification

of that. one, a couple years before the deal we're certain there was no nuclear program and then all of a sudden there's a nuclear program and we're presented with this two options, a deal or go to war. there's more than two options all the time. with that, we're saying that iran, now has stopped to think, they've not been to one military site since the beginning of the deal. >> that's not true. >> it is true. >> sorry that's just not true as someone who worked on the deal who spent hours and weeks and months negotiating it there are inspectors crawling all over every part of iran's nuclear programmed to. they have repeatedly verified and through our own intelligence method that iran is complying. in 10 years it is not true they can get a nuclear weapon. in fact the deal specifically prohibits them from ever getting a weapon so we can debate the deal in the past, where we are today is donald trump is in charge and it's on him to come up with a better deal like he said he could. charles: would that be

worthwhile though? he hasn't done it yet he's been in office a year but is it worthwhile for him to try to achieve a better deal? >> absolutely it's worthwhile for him to go after a better deal. take for example,, i mean, something that joe lieberman said yesterday was great, he said not trust but verify but miss trust and verify and we're not able to verify. i'm interested i'd love to see how many iea guys were to military sites in iran looking at those programs. charles: right. >> or is iran self-reporting and now he absolutely needs to make a better deal. this one is kicking the can down the road. charles: marie you'd acknowledge perhaps there could be a better deal and components to this that could be tightened up? >> well i think he raises an interesting question about whether you could get some of these timelines pushed out longer. 20 years, 25 years, we already have restrictions in the deal that lasts 25 years and some that last forever. the problem and the challenge is

he can have that conversation with our european allies and with the iranians. i think that's fair and his perogative. his threat to pull out of the deal, if everybody just doesn't automatically see his demands isn't really how diplomacy works and i don't think that it will get the outcome that he wants that could shrink some of these pieces of the deal. i think he needs a little get of a gentler touch. charles: obviously we haven't pulled out of it yet and i think they have tried to woo particularly our european allies to some changes. thank you both very much. appreciate it. >> thank you. charles: as robert mueller is issuing new subpoenas house intel chair devon nunes says the case is closed, more on where the russia probe goes from here, right after this. think your large cap equity fund has exposure to energy

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. charles: stocks positive so far today, as president trump says phase two of tax cuts could be coming. to fox news political analyst gianno caldwell and fox news contributor lisa boothe. lisa. phase two would be fantastic, even though the tax cuts have been phenomenal, they're the historic, still most people believe there is work to be done. >> yeah, and potentially make the tax cuts permanent or i think kevin brady laid out looking at the tax reform law and seeing if there is tweeks they could makers but i also believe that speaker ryan said that these changes probably wouldn't come until after the election. if that's the case, we don't really know what's going to happen in the house, we don't know what's going to happen with the midterm election, that could get tricky. charles: gianno, what do you think? >> piggyback off lisa's point in terms of the midterm, gives the american people more reason to vote. republicans in terms of this

re-election coming up, traditionally we all know that republicans or rather the majority lose the seats whoever the president's party is during a midterm election, and this one seemed months ago that would be the case but, of course, tax reform turned that idea around, considering the fact that millions received bonuses and companies linked this directly to tax reform. so with this being the consideration coming up right before the midterm election irk think the american people have incentive to vote with their wallet to get more relief when it comes to tax reform and, of course, make the tax cuts permanent. charles: lisa, today and this morning we had the michigan consumer sentiment number out, at a 14-year high, what was intriguing about it is the bottom third of household incomes, it was up almost 16 percentage points, unheard of. regular folks, not the ivory tower people that tell us what's good for us, are

thrilled about this, could this be the moment now to piggyback off this and give them more? >> yeah, i think we would love to see that get done in congress. the question is do they have the votes to get it done? i hope so and democrats coming to the table after we've seen hundreds of businesses stepping forward and passing on the savings to their employees. the hope is that democrats would be on board there. my only concern regarding the midterm elections on this issue is i don't know if this is enough to drive voters to the polls. you look at midterm election, opposition drives the base out, and what are republicans opposing right now? so i do have concerns that democrats are fired up. they've got the resistance going, we've seen that in some of the special elections. and my only concern is republicans don't have something to be against like they were against obamacare, which drove republicans out to the polls in 2010 and 2014. charles: the irony, gianno, is

you have conor lamb, potentially the winner in pennsylvania, running on tax cuts, running on pro tariffs. that's the most exciting democrat to emerge this year with the republican platform. >> yeah, it was a pro-trump platform, full, and that was a smart move on his part. i think to lisa's point, i get it, like in 2010 when the tea party took over, it was all about obamacare. i understand that. what we have seen is anti-trump media. we've seen a lot of democrats that literally have no message and nothing to run on, so without saying just let's resist and you know, this tax reform is just crumbs, i think they've lost their footing, and you see a candidate that has one has pro-trump messaging, if you will. they may not have been pro-trump per se but certainly the messaging definitely supported trump's policy. so when it comes to that, i

think we have to look at this with a laser focus lens. this is an election, 2016 was an election like one we've never seen before and i think this midterm is going to be telling as to where do we go from here? people like what they've seen in their wallets and a number of statements, this tax reform was overwhelmingly beneficial to the majority of americans. i'm sure people want to see more of that. charles: lisa, before the midterms, couple of other things the administration has to be focused on. should it be compromised measure on the daca wall, lip service, everyone says who's not against potholes, right? so where should the focus be? >> i think you should focus on something like infrastructure over daca, personally, because i think you need to look at something that affects americans' lives more intimately. but you're right, when you get into the details of infrastructure, that's where it gets dicey even among

republicans. how do you do it? so i think even on issue like infrastructure where you think there would be bipartisan agreement, i think even within the republican party there's going to be conflict about who bears more responsibility financially and how that ultimately gets done? charles: the math is interesting, they take 200 billion to say you can extrapolate that to 2.5 trillion. i don't know how you pull that off, gianno. listen, president trump has done things that are not traditionally conservative. he may be able to say, okay, let's bump up infrastructure to 400 billion to federal funding and get the public-private sector to make it a $2.5 trillion project. >> you are right. president trump has done things that weren't particularly traditional in conservative circles. you looked at tariffs, for example, i know that a lot of folks were concerned about that, and i understand that. but if a negotiating tactic,

one thing i notice about president trump, you kind of put a plan out there and see how people react to it and you negotiate from there, so when it comes to infrastructure, this is something that's traditionally popular, it's always been popular whether you be a democrat or republican, and we usually see agreement. we can move forward on it, just like when it comes to tax reform, i'm sure there's a lot of folks who regret not voting in favor of it, especially for republicans running against democrats who voted against it. what we see is results, and that's the problem for democrats. they may not agree with the strategy, but results is what the american people desire and this is what they're getting. charles: quickly, on the turnover, the pace of turnover at the white house, consequential with the midterm elections or mostly media fodder? >> the administration needs to focus on continuing to get things done. as long as they're getting

points on the board, a lot of turnover, that's what we've seen, president trump has no problem on it but i think there's way too much focus on the individuals he surrounds himself with and i think it's an effort to try to undermine the president and make it look like the president isn't the one driving his own agenda. charles: lisa, gianno, thank you very much. >> thanks, charles. charles: the trump administration is accusing russia of trying to hit our power grid with cyberattacks. so how vulnerable are we? we'll discuss it next. to most, he's phil mickelson pro golfer.

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. charles: house intel committee chair republican devin nunes defending the committee's decision to end the russia probe while mueller's probe is gang more steam. to utah republican congressman chris stewart. congressman stewart, we heard more news yesterday from the mueller probe, and perhaps sharpening their focus here with respect to the trump

organization. where do we stand now with colleagues across the aisle, and maybe wrapping up their version of the house intel report? >> well, i think we've -- i shouldn't say all, but many of us reached the conclusion, we haven't learned new information for an awful long time. 15 months, 300,000 documents, dozens and dozens of witnesses and just haven't learned anything new and promised the american people we would report back to them. it's important to report before the midterm elections and by the way we call it initial report, if there is other information, we'll continue to pursue, that let's get our recommendations to americans so they can evaluate those and implement the recommendations before the next election. charles: right. you know, that was the criticism even before the appointment that these generally take a long time, they end up having a life of their own with tentacles that seem to go in different directions that weren't the initial intent.

and sometimes they go so long that not necessarily that they lose credibility but people get a little ansy about it all and wonder about extenuating ulterior motives driving it. >> i was one of the very first members on the house intel committee who said about a year ago we need to have a special counsel. this is becoming too politicized, it's diverting from other important work. i supported mr. mueller and the special counsel. i still do. i would ask two things of him, one do it as quickly as possible and don't go beyond original charter. i don't think any american would feel comfortable to say we're going to allow this individual with attorneys around him to investigate every member of the trump team and go back 20 years and look at everything done. how could anyone be comfortable with that? stay within original charter, do it as quickly as possible, and wherever the questions lead, go ahead and follow the

leads, but let's report back and let the american people know what it is we're actually dealing with. charles: you think there is pressure on the mueller froeb come up with something that they find themselves in position, it has taken so long and very little has come up. to wrap it up with a dry hole would be embarrassing or just frustrating. >> i think there is probably some pressure, i hope he insulates him from that, but look, the expectations when this thing started a year ago, we heard collusion, conspiracy, treason, virtually every day. from an awful lot of people, and if the evidence doesn't support, that there's a number of reasons why mr. mueller should resist the temptation to find something, one of them is you're putting a cloud over people and our conclusion is over innocent people and had impacts on their lives. let's remove the cloud by saying we don't find evidence

of collusion or conspiracy, if there are other tentacles, to use your word, that tie into the russian investigation directly to that, let's pursue those, but there is no question that for a long time, we heard that president trump was in bed with the russians and campaign laws and corrupted by, it turns out it's not true, and i than disappoints people but the facts at the end of the day indicate that's just the truth. charles: you supported the mueller special counsel, there's all kinds of talk about additional special counsels out there because of some of the information and some of the things that people in important positions might have done with respect to president trump, the fbi, do you support that too? or do you think that maybe the american public is fatigued by it all and like to see it wrapped up? >> there is some of that. even if the american people are fatigued by it, and i hate to say this, if they are fatigued, we need to tell them the truth

and tell them some of the hard truths and some of the people a year ago would have never dreamed that what we find out wasn't that the trump campaign had been some ways unethical or perhaps as the accusations were illegal. but, in fact some of the people within the administration within these official agencies. fbi and department of justice, that's where our primary concern is now. do i think a special counsel is an answer? it possibly is. do i think it has to be? i'm not sure. i'm close to saying that might be the best way forward on this now. charles: congressman stewart, thank you very much, we always appreciate it. thank you. >> thank you. charles: the u.s. formally accusing russia of launching cyberattacks against america's power grid. the question is how vulnerable is the united states to these type of attacks? to cybersecurity expert paul viollis. paul, we have the centuries old power grid, a hodgepodge, seen

it come down on real small things, large swaths of the country going dark. >> right. charles: we know it's vulnerable, but how vulnerable is it to perhaps a foreign actor like russia? >> you know what, charles, the only way to answer that is say we are significantly vulnerable. you and i have talked about this before on your show. there are things we can do to fortify our systems, we're not doing it yet. the good news for viewers is there are a couple of steps that the government can take to prevent this from happening, prevent this nightmare from coming into fruition. one thing is we need to start conducting holistic cyber-related vulnerability assessments on our infrastructure. legitimately look at where we're weak in fortifying the systems. charles we know where the trajectory is, we know they're using malicious code inside documents to penetrate thamp the simple solution here, and this is nothing unusual, we

need to start incorporating analyst systems, assured file transfer systems, so we can stop it at the front door before it goes horizontal. good news, we can stop it, we need to adopt the principles so we don't get hit. charles: paul, why is the, quote, simple solution, and we haven't done it? we haven't undertaken it? >> because, charles, i truly believe in my heart of hearts reare reluctant to recognize we are in the genesis of a cyberwar. you and i have talked about it but reluctant as a country to recognize that. we see, it hit the snooze button and forget about it until it comes up again. the moment we take it seriously, embrace the risk, as a country and administration, we have the ability to prevent this tragedy from happening. and we need to take the time and the investment to make that a reality. charles: the trump administration now calling out

russia. certainly our government knows the attempts and the penetration that's been made, certainly they must understand this. is it something more, is it about money? is it about how overwhelming this could be? it feels like it's got to be something more if the solution is as simple as you're saying it is? >> but it is, charles, but it's exactly what you just said, it's a daunting task, when you think about conducting holistic vulnerability assessments on the infrastructure, it's a daunting task, not undoable but a daunting task, and it's expensive. we are not making the investment or the time or the money to fix the problem. it's clearly as simple as that. it's doable, but we're not taking the steps to make it happen. charles: let's hope they are listening to you. paul viollis, thank you. >> thanks. charles: a pedestrian bridge completely collapses just days after being installed. we've got the latest, next.

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. charles: at least six are dead after a pedestrian bridge at florida international university's miami campus collapsed less than a week after being installed. to former texas railroad commissioner mary scott nabors

on the concerns over infrastructure in this country. thank you for joining us, your initial thoughts on this tragedy? >> well, charles, it's very important to remember that this tragedy really has nothing to do with our crumbling infrastructure which is just as dangerous. this was a new project, it was a project that wasn't even finished, it was a project that was being done through what they call abc construction. that's advanced bridge -- accelerated bridge construction where you bring in prefab units for a bridge. that was a tragic accident. we have horrible infrastructure problems, though. we have 56,000 unsafe bridges. bridges have been declared defective, unsafe and not doing anything to fix those. we have a major, major infrastructure problem and a horrible tragedy in florida,

they're not exactly the same thing. charles: sure, and could, though, could we glean from this, though, that there won't be an easy answer, this virtual construction and prefabrication and things like that, and maybe putting more emphasis on the fact that the challenges that we fair, we should probably tackle them sooner rather than later? >> we absolutely should tackle them sooner, and that construction, interestingly enough is being used by the departments of transportation in every state now. the model, the prefab, that's not supposed to be dangerous. there were probably some other problems with that project, but you were just talking about cybersecurity for our power grids. we have 80% of our power grids in the united states that are also decades beyond their life expectancies. that is very, very dangerous.

we have no airports anymore in the top 25 in the world. that's horrible for our economic leadership status globally. so we do have major infrastructure problems and hopefully congress is going to finally one of these days get around to addressing them somehow. charles: well, they all talk about it on the campaign trail, don't they? >> they certainly do. you know, my message to congress at this point would be, you know, you don't have a trillion dollars. we all understand. that you're not going to find a trillion dollars. so why not encourage some alternative funding? we've got foundations. we've got investors. we've got public pension funds waiting to invest in infrastructure projects and we need that funding, we need to get started. >> i think there is pushback about the idea of privatizing or profit motive solution to this, but to your point, it's a

realistic alternative to get things done. another problem i think has been just the regulatory hurtles, you know, we had the big so-called stimulus plan, i don't know where the money went but certainly a small percentage went to construction or reconstruction in this country? >> it's so hard for the federal government to oversee anything that massive, and, yes, we did have problems. most our infrastructure reform is going to have to happen at the county level, at the city level, in the regions, and so that's probably a very good thing, but the bridges and the water treatment plants, we have -- we have about 80% unsafe public water. so i mean, you can almost name any industry's sector and we need to address it. but those fixes are going to happen in the regions, so hopefully if congress can find a way to support

infrastructure, indoors, some outside funding so alternative funding, because in our lifetime we're not going to be able to find a trillion dollars. and at the time they search for a couple more years, it could be $2 trillion that we need, and we will have bridges collapsing. charles: we don't want to see any more of these tragedies or more bridges collapse. thank you so much. >> that's true. >> the s&p on pace for the second downweek in three. . . . .

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charles: legendary boxing promoter don king will join me exclusively tonight, 6:00 p.m. eastern on "making money." trish regan here to take you through the next hour. trish: thank you very much, charles. stocks are higher ahead of next week's federal reserve bank meeting where they are expected to raise interest rates for the first time this year. we have a whole ton of information copping out of washington right now, as the president slaps new saying shuns on russia preparing for a trade war with china. all this amid reports of a major shake-up at the white house. i'm trish regan. welcome to "the intelligence report" on this friday afternoon. the administration released details of new trade measures against china over coming days. some are concerned that the president's actions are leading to a trade war. but i have been saying, say it again, bring it on that is it