i might add one thing, liverpool getting into the european championship final will get $100 million. ashley: big, big money. stuart: money is spectacular. ain't that right, neil cavuto? neil: yeah, absolutely. thank you for that soccer update. [laughter]. i know what you're thinking. how can i stick it to cavuto, right? right when the show starts with a soccer development. thank you, my friend. stuart: cricket tomorrow. neil: meantime, look what is going on, stuart. we are off the worst levels of the day here. going back and forge couple developments. what did the president know, when did he know it, stormy daniels thing, on and on. there is growing concern what is happening in china. latest from a couple very interesting people who deal in beijing on a lot of business

transactions. locally, if you read the english version of their press, they're getting very concerned about how the administration might be thinking upping ante, making difficult for number of japanese financial and technology types to sell goods here. there is no confirmation or even hint of this out of the white house but they are fighting fire with fire. i told you already we have our sort of avengers economic team over there right now to enforce a point and making sure there are concessions from the chinese but they're not budging t could be just all theater, all of that, but for time being the fear this could spread and at a minimum go longer than thought to be the case. the dow is down about 259 points. let's get the read from market watcher, heather zumarriaga, jim lecamp, jack otter and my colleague and "making money"

host charles payne. charles, i imagine the china thing is a worry for the time-being but are you worried this drags on longer? >> we have hard deadlines. at some point the trump administration will have to take action on these promises. we're talking $150 billion worth of additional tariffs on some of these items. one news item no one talked about yesterday, arm holdings, semiconductor company, largest in the uk, recently bought by softbank was forced to give their chinese joint venture partner 51% of the company yesterday, forced. a company sold for $33 billion. a technology giant was forced to do this it underscores what this is all about. it is not just about the imbalance in trade. neil: you think it is environment and whatever rules are on the books now? >> they were forces to do this. all the technology they ever created ultimately ends up in

the hands of chinese competitors but the chinese government. neil: jim, what is going on here? there are separate issues who will talk when and how many questions and how involved they can be but i would imagine the china thing as well, a double excuse to stand back, right? >> nobody really cares about the stripper news or, what he paid to a stripper. what people care about -- neil: could you stop that for a second. that i'm leading on the floor, but i will not lead with a stripper story anymore. >> but at the end of the day you're worried about various things in the market. it used to be inflation. it used to be the treasury or yield curve. predominantly right now it is absolutely the trade tension. not only would that impact the u.s., impact china, it would impact global trade. you would have other losers like korea and taiwan. so it destroys a big narrative

of this bull market that we've had which has been global growth and u.s. growth and look what it is already doing to u.s. companies with the soybean, with the chinese not buying soybeans. that is a big move. that is a big sabre-rattling by china imposing 25% tariff on soybeans. so there is a lot going on that we are concerned about in the market. we're not worried about stormy daniels, although we might be worried about obstruction of justice. i think for today it is trade wars. for tomorrow these other things are going to be another thing that we worry about. neil: by the way you were mentioning the soybean thing, there were reports, began out in asia, where the chinese have apparently stopped buying american soybeans all together. again there is no way to prove that. i mean anecdotal reports certainly given the falloff in soybean prices that would seem to -- >> there is a little bit sleight of hand of that, the seasonal

way they can order their soybeans. make no mistake, they need our soybeans. make no mistake our soybean farmers need to sell to china. it is a good dual relationship. they can stagger the way they buy soybeans around the world based on who plants it and harvest when. ultimately they will have to buy u.s. soybeans or they will have a real problem there. >> if you're saying we lead with soybeans over stormy daniels that is a dicey one. jack, already if we're getting into fighting positions the chinese, the president is sending his entire economic super action heroes here. it kind of does have a feeling yeah, we're here. china says, yeah, we see you here but you're not going to get what you think you're going to get. >> first of all this is why you're the anchor and he's not. neil: thank you. employee with the cosmetic

stuff. >> here is what i say, i as you know am not a fan of the trump tactics and i am a fan of free trade but all of that said, i'm not worried yet because look, what you do -- neil: because the chinese don't practice it. >> you're absolutely right. you're absolutely right. neil: the president's alternative strategy might enthrall the enthusiasts but he is absolutely right -- >> tactically, not strategically. the key pound you underpromise and overdeliver. so every one is talking tough right now. and if this were conventional thing, they would be really downplaying it and come out with a good deal. we may very well solve this problem and sometimes i've been proven wrong. donald trump's bluster appears to be doing good with the north korea, south korea thing. maybe it will work here. neil: charles, you were the first to see that possibility. i want to go to heather zumarriaga on this, whether it feeds doubt. you don't like to see this

mushroom into something but it could with reports that chinese stopped buying soybeans. they might get a slap from the united states, particularly telecom equipment-makers, i believe i left that out, selling that stuff here in the united states that could have a big effect here because it could lift the prices of a lot of telecom-related equipment in the united states. that's something consumers would feel fast. >> you're right, they would but i think it is a more surgical approach that they are open to taking, the u.s. trade team, in terms of how do we pun fish china for theft or stealing intellectual property. the example of forced issue that happened that charles mentioned and that's what they're going after right now. more surgical approach on high tariffs on perhaps technology products coming out of china, that would be better than just blanket tariffs across the board. so they're sitting down at the negotiating table today. they will wrap up tomorrow,

tomorrow afternoon, tomorrow night. that will have an impact on the markets that is it why the markets are down today as well as some inflation moves and i think these tariffs will put further pressure on prices as you mentioned. so that is why we have this, the markets don't know which way to move and china is going to move the markets. neil: we could see a lot different, charles remind me of this, looking noon eastern time could be very different by 4:00 p.m. >> sure. neil: i acknowledge that. charles, the next step if it lingers on and if it gets nasty, these things tend to, at least in the past, there is sort of like a moment the american people will have to be reminded or told or assuaged, there will be a bit painful but it is to make a bigger point. how will that go down? >> well i think he, president trump has begun to do that. for the last three or four weeks i say he should do it better, more forcefully. during the campaign, when he started talking about this kind

of stuff as he was running for president, i put out in social media often, are you prepared for, potential trump voters pay more. 99.9% said yes. neil: really? i throw it out there and nothing to happen. >> i'm saying when i ask the question now, 99.9% say yes. neil: i don't buy that. do you want to be thin? 9 9.9% say yes. >> i talk about when americans bought war bonds in world war ii. they didn't do it because of payoff. because they -- neil: you make that patriotic connection. >> president has to make sure he does that he can't just do it in the tweets. neil: go ahead. >> interesting that you mentioned bonds, the chinese are a large buyer of our bonds and there are things already coming into play like strong dollar and weakening that you want. neil: maybe they will pie -- buy patriot bonds. >> what the trump administration

need to do stop targeting a specific dollar amount, we want our trade balance to be x instead of why. get very specific on things they can change and things that we want, not this blanket, let's beat them by 10 points. we have to have a set of targets there. >> i agree. that is what they're going to do. they do hold $1.18 trillion worth of our bonds and our debt. if they choose to sell those off into the marketplace, you will see interest rates skyrocket and market tank. that is lot more pressure on the markets. neil: they're not going to do that, heather that is the "nuclear option." they're not going to do that, right? >> i don't think they're going to do that but if we were to put enough pressure on them it piss that off that -- neil: watch your language. >> they are our largest creditor. >> they're our largest foreign creditor. if you break out holders, 6 trillion is held by intergovernment agencies. almost 3 trillion by the fed. if you do qe1, 2, 3, 4, qe4 --

neil: you're saying federal reserve could absorb it. >> federal reserve could buy every single one of the bonds in interest of america like they created trillions of dollars to bail out banks. neil: since the meltdown, everything else. what do you think of that? >> yeah, that's true but, at some, we keep on saying this is absorbable, that is absorbable, deficit has been high before, it will be okay now but bond yields are creeping up. if you look at past recessions bond market always talks about it first, whether inverted yield curve or blondes blow up or sub-- bonds blow upand market is spooked seeing the 10-year creeping over -- neil: we need any excuse to sell. >> caterpillar has killer earnings. the stock goes down. tesla has a weird call, stock goes down. neil: those would be the ones hurt most by this, right?

>> there is almost every day a reason de jure to be frank with you. 3% is enough to crash the market with the economic backdrop we have, then something is certainly wrong. we had a hell of a run in this economy and with the stock market. neil: you're saying it is over, is it? >> no. i'm so i saying a lot of anxiety now almost every day, earlier in the year the economy was too hot, recently too weak, now stagflation. almost every day depends on the story. >> regarding earnings, the earnings picture is as good as it gets. we have 20% earnings but like you said these sectors and stocks that beat are going down. maybe in the future we can't grow more than we are right now. >> yeah, but more companies raising, more companies raising guidance than lowering guidance. you had one company, caterpillar might be as good as it get. >> why are they down? >> they're not actually saying

that. you're rateright, they are, this is market issue, not a stock issue. the market issue is because of these trade tensions. is because of concerns about decelerating global economy. >> global growth. neil: and stormy daniels and, and stormy daniels. guys, thank you all very much, good sense of humor. we're down 249 points. it hasn't budged since they all began yapping. i don't know what this is about. i only mention the stormy daniels thing in the context that the media is going nuts. the president is not telling the truth, not fast enough. this thing is going out of control. bob mueller will want to throw him in at tickca. it is out of control, it is out of control. separating the fact from fiction and why the white house is taking the tack it has or did rudy giuliani slip up? after this.

neil: the back and for the, you would think, this is knee deep in the middle of watergate right now, this payment michael cohen made to stormy daniels, we can get into the weeds on this but why should i waste your time. adam shapiro knows this far

better than i do but the drama is building over who paid whom and where did the money come from. what is the latest, adam? reporter: the bottom line, the president according to rudy giuliani, reimbursed mr. cohen for the $130,000 that the administration says mr. cohen had funneled to stormy daniels. this was reimbursement after incurred expenses, mr. cohen approached mt., not allegedly detailing what the expenses were but incurred expenses t was part of a 35,000-dollar monthly retainer the president paid to mr. cohen. the president tweeting this morning about all of this. it was retainer this is the kind of thing that celebrities and people of wealth do all the time. in the final portion of the tweet, despite already signed a detailed letter admitting this was no affair, referring to stormy daniels, prior to the violation by miss clifford and her attorney this, was a private agreement. money from the campaign, this is key, or campaign contributions

played no roll in this transaction. rudy giuliani, former mayor of new york city, former prosecutor, now legal advisor to the president said this on "mornings with maria." >> only a bombshell in a sense it blew up their case. the money was by michael cohen in 2016. of course he didn't talk to the presidential candidate then, the man wouldn't have even remembered. i wouldn't remember if you talked to me then. i was with him 24 hours a day. after it was over, there was the opportunity to reimburse. reporter: but there are some questions whether the payment may have violated in one way or another federal election commission regulations, even though the president is saying this is his money. you can fund your campaign as much as you wish. michael, the lawyer for stormy daniels, for miss clifford had this to say about it. >> i think our case got

exponentially better in last 24 hours. i've been saying this all along. this about a cover-up. about lies told the american people. people trying to pull the wool over citizens, of this country need to know the truth. reporter: one last thing, neil, there was questioning whether rudy giuliani might have misspoken when he first revealed this to sean hannity on the fox news channel. but actually fox news confirmed that the president and his legal team, mr. giuliani discussed doing this. this was not a surprise to the administration. back to you. neil: thank you, adam, very, very much. ii want to go to judge andrew napolitano. he joins us out of washington. judge, i know the president is a billionaire, all this stuff and we're talking about campaign funds, money he plowed in, better than $100 million. i understand that 130,000 seems relatively small, it does stretch some credulity to me

wouldn't know anything about it, period. >> i agree with you, neil. president is famously a person, maybe why he has his wealth, who knows exactly where every nickel goes. to me it is not credible to state and accept people, expect people to accept the argument that the president reimbursed michael cohen and didn't know what it was for. i mean the way these things ordinarily work is, michael cohen would find out how much money he had from the president to spend for this. then the president done a series of phone calls or emails, would say, you know, here's the deal i have for 130,000. she will agree to the following. and then they would cut the deal. the president didn't sign the papers. his name doesn't appear in these papers. when i say papers, i'm talking about the contract, the agreement, between stormy daniels and fictitious person named david dennison. so i'm not sure it is even enforceable. if the money came from donald trump's personal account,

rudy giuliani, the president are correct it is of no legal moment. if it came from campaign funds and they deny it, it would be a problem. if the money came from corporate funds, it would be a problem. that was not raised by mayor giuliani or addressed by him this morning. neil: didn't i hear michael came from home equity loan. that is how it was paid for? >> that is one of theories we believe that the fbi obtained a search warrant for his banking records to see whether or not he told the bank what he was going to do with the money. the other interesting thing is that of course michael cohen said i was not reimbursed for this. the president famously on air force one three or four times he didn't know anything about it. didn't know anything about the amount. didn't know anything about the agreement. then he went on "fox & friends" a week ago this morning and at a very lengthy, sort of run-on sentence, almost disjointed interview and dominated the

interview and spokes exclusively during long periods of time and during the course michael cohen did represent me in that crazy stormy daniels deal. then a week later rudy giuliani goes on with our colleague sean hannity and "fox & friends" and maria bartiromo and says, yes, he reimbursed michael cohen. so the story keeps changing. neil: you know, judge, i'm wondering why now the clarification on all of this? did something, i know it is conjecture but did something come up in those raids, paperwork, that his legal team is aware has come up and they have to explain now? and is this explanation good enough? >> well i think i have a pretty good window into mayor giuliani's mind. he really likes to sim islify legal issues as best he can. i honestly think he wanted to get the issue of stormy daniels off the table, if he could away from the prosecutors in lower

manhattan. this helps michael cohen out a lot though there are other things we believe they are still investigating him but i think he wanted to sharpen and narrow the focus he could talk to bob mueller b was there a conspiracy to receive assistance to the campaign from any russians, and did you, mr. president, interfere with a judicial proceeding, grand jury hearing, by firing jim comey because you were worried he was too hot on your trail? rudy giuliani wanted to focus on those two issues. he may have succeeded doing that. he unfortunately always succeeded subjecting him to ridicule and opening up in fact whether he got anything for the 130,000? did he in fact have a relationship for this woman that she says she did. we thought by paying $130,000, we thought he did and on "fox & friends" rudy giuliani

says he didn't have any sexual relationship with her. what did you pay the $130,000 for. neil: rudy giuliani says you pay nuisance suits all the time. rather than drag it through the press, i heard that before, does that ring hollow to you? >> that rings true to me. i will support go one step further. i know cases people pleaded to guilty to crimes which in fact they were absolutely not guilty in order to get the monkey off their backs. sometimes you do accept guilty pleas, sometimes you do settle cases where there is no, where there is no culpability. on and on we go. neil: on and on we go. judge, thanks for taking the time. we appreciate it. >> you're welcome, neil. neil: now the market effect on any of this is very, very limited. the fear as you heard before, if this weighs on or drags out, a crisis or something that we don't know the resolution for some time they don't like that or the uncertainty. the read on that and much more,

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>> welcome back to "cavuto: coast to coast." i'm nicole petallides live on the floor of the new york stock exchange where the dow jones industrial average down 300 points. here is a close look at tesla. tesla under pressure today after what is being called a bizarre conference call. in fact the stock is down nearly 8%. tesla did post its biggest ever quarterly loss when it announced the first quarter results but it is the conference call that grabbed wall street's attention, calling bizarre. people saying elon musk, ceo, spoke to the analysts and said the questions are so dry they're killing me, calling it boring,

as analysts asked about potential profit as well as model 3. that has hit the stock to the tune of about $2 billion in market cap. tesla is about $100 or more off its annual high. taking a look at some of the tech stocks, apple, certainly in many people's portfolio, whether you own indices or apple itself, apple is down 3/4 of 1% at 175.27. it had three straight days in a row of gains, the best performance since 2016. facebook, netflix, alphabet google lower as well. neil? irk nicole, thank you very much. i don't want you to forget what did going on at border of tijuana and san diego. caravan of migrants who descended there to try to get asylum stat news in the united states. a fraction will when all is said and done. 88 have been processed.

minimum of 14 looks like will be granted asylum. 15 others we're told have a goodshot at it. that is very early in the process. we don't know who is being selected versus who is being told to wait right now. former homeland security jeh johnson is here. secretary, good to have you back again. >> neil, thanks for having me. neil: how does this process go? maybe you can remind me of the legalities, here right? they don't have a right to become citizens instantly, but they do have a right to this process. steer me through this process. >> correct. i don't want to get too technical, there is a process called expedited removal where the border patrol, immigration can send somebody back without a full hearing that takes years. if you put somebody in expedited removal, they are entitled to assert and a asylum claim. in that context, the asylum claim is a two-step process. first a credible fear assertion,

finding, ultimately an ajudication by immigration judge that this person is entitled to asylum in the united states. what is happening now, with the people coming from the caravan is they're getting to the port of entry and they're asserting credible fear, i have a credible fear if i go back to honduras or guatemala or el salavador i will be persecuted in some way? neil: how do they prove that? >> it is simply a statement. the asylum officer who hears a claim makes an assessment that the person is or is not credible making that assertion. if they find they are credible, and they have specified a case of credible fear, then they're allowed into the united states. there is a deportation proceeding that begins but also and a asylum claim that is made, ultimately heard by an immigration judge. that is a longer-term process. neil: in the case of cuba, when castro took over, we took virtually anyone who wanted to leave cuba seeking asylum.

>> cuba was a special case. neil: understood. in honduras, the election there, you know, was very divisive, sometimes a violent election. you could say those leaving didn't want to be there for fear or stating that they didn't like what was coming up. is that good enough? >> well, neil, first of all -- neil: or -- >> you have to look at the big picture. big picture, illegal migration on our southern border is a fraction what it was 18 years ago. the demographic has changed. it is no longer single adults from mexico. it is women, children, families coming from central america, honduras, guatemala, the pushback from those countries is powerful. when i was secretary of homeland security, i spent hours, days on the southern border talking to kids in holding stations, why did you come here? didn't you hear our message about the dangers of the journey through mexico? and very often they would simply say, my mom sent me here because

the gangs were going to kill me. so, unless we deal with the push factors, poverty and violence in the three countries we'll never be able to effectively deal with illegal migration on our southern border. now we've seen this slight spike in honduras, and what is happening in honduras, but reality is the migration season is such that late april, early may is always the peak of the season traditionally. neil: so what we're watching now, the caravan got a lot of attention at the very beginning, that there were so many. >> right. a lot of them stuck in mexico. neil: right. but there was another report out that the mexicans did very little to stop it, in other words to test the united states. do you believe that? >> well, the inevitable flow north the mexicans don't make a real effort to prevent unless we work with them. so 2014 we had a spike of women and children coming from central

america. you may remember that one. ways we drove the numbers down is we got the mexicans to work with this securing their southern border with central america. longer term, i believe it is income bent upon the mexican government to developing their own system of asylum claims. this is something we talked about in the closing days of the obama administration. i don't know where the effort stand now but the mexican government ought to be in a position consistent with international law to deal with asylum claims on their own when people come from central america into their own borders, the one processed now, secretary, do they get a court date to return? >> yes. neil: if they're in the united states and they are not going to return? >> very often they don't return. neil: i'm sorry, jeff sessions attorney general, is big fan of having them wait in mexico. the pecs cans are fighting that

back -- mexicans are fighting that. where do they go? >> they often live with family. some are deenat thatted in our detention centers but very often they go to places in the united states and they know where there are headed. these people are not expecting to evade capture. many come to ports of entry, present themselves literally at a port of entry. neil: because it buys them time, right. >> they're not seeking to avoid the border patrol. they go to the port of entry and assert a fear of claim. neil: better than what they have? >> ultimately better than what they have in honduras, guatemala and el salavador. ultimately we have to deal with the violence in those three countries which is a powerful incentive to leave. neil: you don't leave where you are if you have it pretty good. most of the influx into this country, dating back to 1900, the irish and potato famine.

there is compelling reason. it is awful where they were so they come. so that is at the root of all this, isn't it? >> neil i dealt with this issue for three years and saw first-hand in central america an on our southern border the extent to which people are so driven to leave home, come to the united states because of circumstances in those countries. there is to amount of boarder security, a wall, that you can build to deter somebody from leaving a place where mom is convinced 10-year-old son will be killed. neil: yet your administration, under president obama, deportations contrary to popular belief were very, very high. what is the answer? >> dealing with the push factors. dealing with the underlying reasons why people leave these countries in the first place. then in this country frankly more immigration judges.

in this year's budget we added another 150. went from 334 to 484. in my view we need even more than that they're dealing with a backlog of something like 600,000 cases. neil: incredible. real quickly your thought on president trump, how is he doing? >> well, from my homeland security perspective i give this administration, this president and this secretary of defense, jim mattis, who is a friend of mine, a lot of credit for what they have done to almost completely demolish isis in iraq and syria, so-called caliphate there. eliminating the ground force there and frankly reducing the threat to the homeland. we still have to deal with the prospect of terrorist-inspired attacks by lone wolves. those who self-radicalize on the internet but we've done a very good job of reducing the size of the land that they held in iraq and syria, which i think helped secure the homeland.

neil: secretary, very good seeing you again. thank you very much for stopping by. i don't know what he said, but we dramatically pared losses. so if you can stick around for the rest of the show, we'll have more after this. ♪

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neil: all right. the tough trade talk back and forth in the middle of this, dealing with the north koreans, and talk, i should say, the president kind of teased it again today they're on the verge of releasing three u.s. prisoners. one i think has been there now for the better part of four years. to fox news militarily analyst colonel david hunt, what he makes of this. colonel, i guess the north koreans are trying to set the stage for what they think and hope will be productive talks. what do you think of this? >> i think the release of these

prisoners is very big news. it's a great gesture by north korea. they really want our president to come and talk. i think it's historic when this happens and you hope for the best, that the north koreans will be serious about it and that this really will be a phenomenal amount of pressure on the world to say nothing of what's on the korean peninsula. it is pointing towards very good stuff and the release of these prisoners is a great start and great for their families and them. neil: colonel, if you want to be encouraged by these he will veriments you follow these closely than i, but i remember kim jong-un months ago, launching missiles left and right and scaring the heck out of the world and taunting the world so i don't know which is the real north korean leader. >> the great intelligent minds of world don't know. phobe has been able to figure out this regime for 100 years.

this young man is no better. i think that, the pressure that the u.s. has put on north korea economically and militarily, show of force, i think the relationship we have with china, and i think that, we have been at war for 17 years, we're very, very good at it. i think the north has been pushed into this, which is the right thing to do. but whether we get, the world getting anything out of this, you know, lays 100% on your issue. how can we trust, and we can't yet, but this showing up, i mean, if the two meet, that thaa big deal, neil. stuart: -- neil: where do you think they should meet? the president leaned toward the demilitarized zone, colonel. that seems most obvious choice but other locations are mentioned. what do you think? >> the pongyang, 30 miles north of seoul is the way to go. it can be easily secured by both

sides. i think president of north korea rightfully so is nervous where he can travel. he is kind of a wanted man in a lot of places. neil: right. >> both of us, south koreans, north koreans have great control over that spot. everybody knows it. it is a long flight for our president. short drive for north korea, but my recommendation having spent so much time there, that would be the place to do it. neil: back to this kind of going in, colonel, feeling that we're not getting sucked into something, we're getting ahead of ourselves, people have the right to be excited, this is unprecedented. we didn't see anything close to this with the leader before or his dad or granddad before that, with do we have to be on guard for? for example, the president indicated if he didn't see a chance of much progress he would up and walk away. by that a lot of people, foreign analysts i talked to he would like to see clear proof, not only will they, say, denuclearize the peninsula, move

in that direction, but step by step ways we can follow. that is that the lynchpin of this or what? >> yeah. i think that, we have to add, that we've got a new secretary of state, pompeo, secretary intelligence experience and rejuvenating this with the state department that was decimated. that's a plus. whatever the north koreans are going to say in that negotiations and the meetings with the president then it gets to be, now we have to check it out and now it has to be verified. the great thing would be demilitarize that zone and get all the nukes out. i'm not sure of that. i don't know any nation besides libya that voluntarily detalked detalked -- denuked themselves. and that didn't go very well. small steps, i think the seoul olympics was a very good step, paved the way for the north to

come. that was a step. so, but these two meetings, i think these two meetings in itself is a big deal. neil: colonel. good seeing you again. thanks very much. >> you're welcome. neil: meantime, those talks are supposed to be in another few weeks. there's no firm timetable yet or where they are will happen. we'll have to wait. no waiting around for a comeback at corner of wall and broad. the dow down 129 points. not that any worries gone away or how china trade talks are going. we're one news flash away from the markets turning on a dime. looks like this drags on a little longer. this trade war, maybe not. it is opposite is direction. but they literally trade on the flashes. and right now, they don't know which end is up. after this.

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♪ neil: we wanted to build up the drama here. that is a fancy new, is that few, ralph, that graphic, the little musical thing? he doesn't know. thank you, rob. latest survey is out. challenger survey showing that job cuts actually fell 40% year-over-year last month. now a lot of people use this as sort of a barometer where the economy is going. obviously you look at activity

in the small business run, that could portend for big business run. good for the economy overall. might set a the stage for the jobs report tomorrow. let's look at it from former secretary hector ba rote at the. what is it telling us? >> this is boeing in the right direction. less than last month. we're showing 200,000 new jobs going into the economy almost on a monthly basis. so this is positive. remember, the small businesses create 2/3 of the net new jobs. those 30 million companies are really the engine of the economy. neil: so how has this pace changed? we know year-over-year what's happening. i'm trying to trace a lot of this and ask you, whether any of this is driven by the tax cut, money in cash available to do this sort of thing, what? >> well, i think it's a combination of things. obviously you have to look at

what industries you're starting to see some of those cuts. so we see some cuts, for example, in the health care industry. some in the retail space. but, we also saw a lot of enthusiasm, a lot of decisions that were being made after that tax cut. you know, a lot of large companies, companies like comcast and southwest airlines gave bonuses to their employees. a lot of money going back into the economy. something like $126 billion. more money going into charity. all of that stokes the optimism of the small business sector. remember 30 million companies out there, if they're not growing, our economy can't grow. neil: regulations have been a big factor too? >> that's a huge factor, neil. and i think sometimes that goes unnoticed. but when you take the foot off of the pedal, so to speak, especially for those businesses affected by a lot of regulation over the last eight years, that is a tremendous help to them.

and creates that optimism and makes people feel that things are going to get better. obviously that is when they start making investments of hiring people, restocking inventories, buying new locations, et cetera. so, i think the tax cut was an incredibly important, not only to the school, but to the reality of the decisions small and big businesses are making. neil: all right. thank you, my friend, good having you back. hector barreto. >> thanks, neil. neil: former head of the small business administration. we'll take to you beijing and latest how those talks are going. we have connell mcshane, first i thought he was standing in front after green screen. he is apparently actually there after this. ... into retirement...

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so they can focus on new things like exotic snacks. talk with your advisor about shield annuities from brighthouse financial- established by metlife. neil: boy we have really compar ed these losses to virtual ly none at all right now i'll get to that in a second there is this media storm over this payment to stormy daniels i don't know why they always want to lead the show with stormy daniels but we'll have more on stormy daniels and karl rove's take on that and the immediate session. we always look for a trading angle on it, and we haven't found any but when we do, we do. we're also following this china trade war going back and forth. they're getting locked in their positions a lot of them are saying it's not going to be quick and easy for this sort of avengers economic dream team that's descended on beijing to get the talks going and to get their way, it might not be so easy. connell mcshane is in beijing

with the very latest. i suspect this is a green screen but we shall see. dark is dark behind him so for all i know he could be in a closet somewhere. connell what's going on? connell: [laughter] that's right it could be pittsburgh behind me but i can assure you we are in beijing. we shot some video that'll be a little more convincing but we're here obviously for the talks the treasury secretary steven mnuchin and the rest of the american delegation equation as for what's going on we really don't know yet and there may be uncenter in the market but minnesota is along with the trade rep, the ambassador, kudlow and navarro the economic advisors all here a team of rivals in some people's estimations but some other officials out at the state guest house which is often used as a meeting place for visiting dignitaries and is being used that way again. the question is how much they can really accomplish in just

two days of talks and if these tensions over trade drag on for some time, a growing kind of anti-american sentiment seems to be building here in china could cause problems for american companies. there's a story out for example, from bloomberg today about china not buying soybeans from the united states after they did an interview from the ceo and we had a visit to a local food market in beijing and had a chance to talk to some of the people about supply concerns and disruption concerns with the help of our translator i actually got up and talked to one of the merchants who sells fish that believe it or not is imported to beijing from the boston area. watch this. >> is she worried at all that the supply might go down as that conflict continues? >> yeah, i really have this kind of concern and maybe two weeks ago, there was, yeah, there was a period a short period that kind of lack of a little bit of the supply.

connell: it was kind of interesting to hear almost like some of what jeff flock reported out of the midwest with u.s. farmers saying similar things about the trade tensions if it all drags on so much uncertainty reflects how they do business and as for the talks we do at least hope to get an update from secretary mnuchin before he flies back to the united states some time tomorrow night. neil: so they don't have a deal, they fly home. if they do have a deal, that's locked? connell: yes, i believe i'm hoping, like our flights are locked to come home some time but this idea of some sort of a deal seems kind of farfetched both sides lowering the expectations saying we're just getting started this is just phase i or two of a long process so both sides chinese and american sides have been saying that going in so we'll see what happens. neil: thank you my friend from beijing, connell, well we think

beijing, connell mcshane in the meantime, how does this all work out if they walk away, both sides tomorrow night, then what? let's go to fox business' susan lee, david asman, and john layfield. susan when what, what happens? >> that's a good question i lived in beijing back in 2003 and i understand the argument because when china opened up their economy they were a developing country it took me 90 minutes to pay my electric bill standing in line in the bank. neil: incredible. now it's a totally different story right? neil: 30 minutes? >> not even. you do it on your phone you can transfer money easily so their argument back then was we need help so we'll bring in foreign companies, you can make money off the chinese market and the chinese people but we will retain control. i think that argument probably has less sway now given what's happened with the economy. its flourished and built up and now developed i would argue -- neil: but they're still deemed a

developing nation and that's what tic off the president right >> right but they're slowly moving and i don't think that argument holds up any more that you should make gm or make ford in order to you sell into the chinese market that they don't get a majority ownership in their partnership, even though they are selling technology. they're sharing technology with their chinese partners same thing with banking as well when the financial fields open up in order for mog an stanley or goldman sachs, you can't even a majority. neil: maybe that changes. we're hope that they don't want to budge on this notion that you , mr. president, donald trump , can't force us to just lower the surplus by $100 billion that's an arbitrary figure we're not going to do that. >> right. neil: maybe he just threw that out there what do you think? david: well i think it is an arbitrary number. there are a lot of ways in which we could open up china or at least ask them to open up china that go beyond just the manufacturing trade deficit we have.

we have a trade surplus by the way in terms of service. we have, we could open that up substantially, but i think they may get some movement on things like auto, some of the auto tariffs they have, they have about 10 times as much in auto tariffs as we do against chinese autos and there maybe some incremental moves but the interesting thing and connell pointed it out is our team is so divided. on the one hand you have mnuchin and kudlow, and on the other hand you have the main trade rep and peter navarro who of course has written book after book about how bad china is so you have four people two of whom are very mum free-traders and two of whom are very much against free-trade if not fair trade with china and it'll be interesting to see how they battle it out. neil: i don't know what you think but john i can't picture that delegation leaving tomorrow night without something. they will have to find something and i think the chairman will

agree with something it's something with tariffs and window dressing so when you reduce that tariff that's 25% compared to 2.5% it is a 10 times difference but it doesn't have much effect because gm produces 4 million cars for china in china not subject to those tariffs so it's a lot of window dressing that comes out of this. the real problem is the intellectual property theft and this one road initiative where loading up these countries with too much debt to establish their world dominance the real problem we have with china but i think what you'll see a lot of window dressing cop out of this as far as the tariffs. neil: can it go the other way and get really nasty? in other words we were apparently and this apparently ticked off the chinese that there were reports there. we were going to tighten and make it tougher for chinese firms to want to sell telecom equipment. >> right. ge, huawei, those homegrown -- neil: yeah, all those guys. those guys.

neil: anyway that was just thrown out there and they were saying well why is the president , the trump adminitration adding this to this? it was a reminder that this can go south very fast. >> well can facebook operate in china? neil: good point. there's a lot of technological limits as well for a u.s. firm trying to operate in china, so i think that makes sense doesn't it? david: but two years before you were there, china got into the w to. it was a big fight at the time in 2001 between people who thought they're a dictatorship, a communist government we shouldn't let them into the wto, because they won't honor the agreements of fair trade that members of wto are supposed to honor. a lot of people said look we got to get them in. well once they got in, they were trading like crazy in terms of getting u.s. companies to come and share their technology, some time force inly so but they didn't give that much back, and

some of the people who were against them joining the wto turned out to be right. they didn't play by the rules. neil: and i never believed far better than i do you know, but remember the old days when they talk about we grew 12% this quarter, 14%. david: oh, my god. neil: so i never believed it and now they're saying we slowed to about 6% growth and that might be true but this is the same country we'll expect to honor whatever trade accord. >> but it could be a backlash as well because a lot of americans companies also depend on a lot of sales coming from china. starbucks is building a store every 15 hours in china. neil: is that right? >> yeah, that's right. apple gets 20% of the revenue from china, caterpillar which is a main drag today, a quarter of their business is coming from china. neil: but we know the risks of something going bad here, right? >> but there's also a lot of backlash on the chinese side. the chairman maybe the chairman

but he's having a hard time getting his made in china to happen because a lack of efficiencies because of the bureaucracy of a communistic government so he has a lot at stake as well but he does not necessarily want to give and he's getting a lot of push from his own personal about the fact they don't want him. neil: isn't that also by 2025 though? it's only seven years away. >> that's right. that's when he wants to be the world leader in ai, which they look like they will be if google doesn't overtake them. neil: artificial intelligence. and also advanced manufacturing is what he wants. david: but a part of that made in 2025 which is this big communist plan they have, you know how communists love these five year plans based on government funding and subsidies of all these industries and people like peter navarro said it's unfair because they are subsidizing with their trillion dollar surplus. neil: didn't we ask them to cut back on that? >> but they'll have to at some point.

their debt to gdp is 260%. it's getting to where it's un sustainable and he's having real problems with his own people because you have such a coastal economy and a dichotomy between the rich and poor. neil: i want to get your thoughts guys on tesla, elon musk's comments whatever he said i wasn't on the call. i wasn't on the call. neil: what did he say? >> it was a long but entertain ing conference call. you know, we've listened to a lot of these over the years and they're usually very orchestrat ed polished and people start off with these statements that they've prepared and edited well it started off with elon musk just lifting off this consciousness and talking about funny fluff in the machine and then it went into a lot of combativeness especially with questions about model 3 and these placeholders that 450,000 people have placed money, that's when he turned a little bit sour and also questions about capital

do you have enough cash on hand and that's when he calls one analyst we're going to move on, next, next, we're not going to take your boring bone head questions. they're not cool. david: he was even battling his own people right? at various times? he was so dismissive. who knows. i mean the point is -- neil: but he killed his own stock. what was he thinking? >> he's the smartest guy in the room, which he is and he doesn't like people he doesn't believe is at his intelligence level asking him questions. he dealt with this with the model s. neil: but he likes investors right? >> i'm not sure he does. he had a problem with spacex, he brought all of the production in house and fixed it and he is apparently sleeping on the floor of his own factory right now but if anybody can fix it he can. model s, and model x had a huge burn rate and went cash flow positive after the car debuted. he believes the same thing can happen in quarter three and four

but if this were any ceo in the world other than elon musk they would be bankrupt. neil: apparently he took heat. david: but he was terrific in batteries and solar panels and rocket manufacturing. >> but he hasn't delivered what he promised on the main thing that tesla does which is make these cars. >> the one thing -- neil: but these cars seem to be everywhere. remember they were an odd sight a few years ago. >> you do see them everywhere. neil: okay. thanks guys very much. i would of loved to have been on that call. >> it was very -- neil: like storyboard meetings. no, i don't like that! >> i thought you forgot. next. neil: all right guys thank you very much we're down about 66 points tesla stocks taking on down about 7%, karl rove looks at the market and looks at republicans and links what could happen in november, after this.

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>> i always thought it was unethical to try to question somebody just for the purpose of trapping them in perjury. neil: all right, so that was rudy giuliani saying all right we'll try to limit the time for questions if we even entertain them at all, you know the back and forth of this on top of the revelations that the president did know about the payment to his lawyer on be half of stormy daniels, i'm not admitting wrongdoing here just a nuisance suit to pay it and go away. all that being said a lot of confusion over this and where it's going and whether this amounts to anything or is just noise in the middle of all these other developments this year including trade wars, what happens in the north koreans et cetera. the read from former bush 43 deputy chief of staff karl rove. always good to have you. >> thank you. neil: what do you make of these latest developments? >> well, in a global view, they're going to obscure the good things the administration is going. it's going to about obscure the

good things about the economy. i think the revelation about stormy daniels doesn't provide any legal exposure for the president. i mean, take for example, some of the democrats say well is campaign finance because he spent money to keep bad news from emerging and senator joe donnelly was hit with bad news this year one of the companies his family owns does business in mexico while he's working with companies that do business in mexico that have operations in mexico so he's selling it so is that a campaign violation? people clean-up their personal acts all the time when they get ready to run for office and it's not a campaign violation but it is a problem for the president's credibility because he stood on air force one and said basically i don't know anything that you're talking about i had no knowledge and now it turns out that he knew it and the money was not cohen's it was his money eventually that paid for it, so problem for the president obscuring what's going on.

similarly a controversy with these questions of the questions , the 49 questions. neil: right. >> i'm confused. my understanding was that the trump team said to mueller we want to know the areas that you're going into and then out emerged the 49 questions, and then so pretty tough questioning , and clearly aimed towards perjury traps and everybody starts pointing their finger at mueller how dare he leak those questions but now it appears those questions were written by jay secula, but they somehow got leaked so this is not helpful. not helpful at all. neil: you know it might be just noise ahead of the november election but you write today in the wall street journal control of the house next year will depend even more than usual on the quality republican candidate s and their campaigns showing authenticity reaching out to voters carefully and persistently will make the difference, so will money even for republican incumbents who have done well in fundraising

thus far. on that issue, how are they looking? >> well, i wrote my column today because there have been a recent spat of headlines that have said oh, the democrats are winning the money battle and particularly in the seats where hillary clinton carried the district as a republican incumbent, they're being wiped out in fundraising. look at these vast disparities. well they arrived at that by aggregating all the money raised by every democrat in a primary trying to run against a republican and i cited barbara c omstock for example, in northern virginia. $4.9 million raised by all the democrats but very raised $2.4 million with 1.8 million cash on hand and the one that's got the biggest cash left on hand is $800,000, illinois six, huge amount of money disparity between the democrat candidates and their primary in march and peter rosscam, but he raised $2.4 million, has close to

$2 million cash on hand and the democrat winner came out of the primary with 192000 at the end of march so my point was, wait until after all these primaries are done, don't compare all the money raised by every democrat and compare it to what the republican incumbent is raising. wait until the primaries are over and then see how it goes then and i bet you 15 out of the 16 republican incumbents who are running for re-election in those 23 clinton republican districts have outraised their leading democrat opponent and have more cash on hand. that says they're off to a great start but let's wait and see how the situation is after the primaries. neil: i'll just counter that with what a lot of democrats have been saying they're having no trouble raising money or finding interest in a lot of these individual races the number of primaries were accounted, some notwithstanding furthermore they talk a lot about the 40 republicans or so who've very already indicated they're leaving and not running for re-election and a shortage of quality to your point republican candidates what do

you make of that? >> i disagree. in fact stay tuned i'm going to be doing two columns one on that subject and on the republican open seats. let me just preview it for you though. remember most of those seats are in districts that donald trump carried by 15 points, 20 points, 25 points, 30 points, 40 points and 45 points or more, so in those districts, i think it's very unlikely that the democrats no matter what they say are going to be able to sweep a lot of those districts but stay tuned i'm doing the an lit ices now and i'm doing it in a week or two. neil: all right, so the president and how much of a factor he's going to be, we mentioned all this stuff going on, the mueller stuff and guiliani and his comments. it's said to be a drag, but again i'm looking at what's happened in north korea that could be a big positive if he gets some concessions out of the chinese, i don't know how that plays, economic stories that are a little less like that

generally are hard for voters to grasp and a lot for other to appreciate but what do you think >> well i think the president is going to be a big presence in the election. i think it's better for him to focused on being a president and lesson being a candidate. there are some places west virginia and missouri and indiana and north dakota where he can play a big role in the senate elections but in the house elections, i think the best thing is go out there and with a lower profile raise a lot of money and help the candidates get ready for it, but the best thing he could do for them is be successful as president. look, i thought john layfield in your previous segment made a really good point. it wouldn't be a big thing economically for america but it would be a huge symbolic victor ies if the chinese said okay fine you charge 2.5% tariff on chinese vehicles, that go imported in the united states, we got a 25% on american vehicles coming into china, fine we will lower our tariff to match your rate. now it's not going to be a big economic boom for us because

look they may want to buy some jeeps, they may want to buy some pick-ups but they want smaller cars than we produce but it would be a big symbolic victory and i thought david asman made a point. i disagree on the chinese entry to the wto, but he made a good point that intellectual property is what we should be concerned about when china joined the wto, this was not a concern of the wt o. its been trying to improve its standards on this regard and on the 23rd of march obscured bewail this over the president the administration filed a very strong challenge at the wto to the chinese practices on intellectual property, i've talked to a number of trade lawyers that they think is very well crafted they have a lot of information that's come out in the last couple years about the official chinese policy in this regard and they think they've got a good shot at winning the case at the wto. neil: well that would be a news alert right there but they can't leave tomorrow night without something in hand. >> they've got to have something and it's in xi's interest to give them something because they have to signal to

trump we can do a deal. i won't be a hard liner and look , again, it's a huge economy they've got and the amount of vehicles that come from the united states in there are either high quality, high dollar , you know, cadillac or they're not vast numbers of vehicles. it's not a big money thing for them. it's not a big manufacturing issue for them. it's one of the easiest things to give to say we'll match your tariff on automobiles that are imported from your country just like you have on automobiles imported from our country. neil: all right, great. i noticed you were quoting john layfield and asman. did anything i say catch your attention? >> every single word i just hung on every single word and i didn't want to bore the audience neil: no please, don't humor me. >> oh,, no no no i knew my powers of expression in repeating what you had to say would be so interior that i needed to just sort of focus on the lesser part of that segment and let the glory that cavuto just speak for itself.

neil: yeah, okay fine. so at your last book anyway have a nice time. very good seeing you my friend. karl rove. >> thank you, sir. neil: he could be right on this the pressure to have the deal when they leave tomorrow night, i can not imagine to make a trip all the way back and come up empty. they have to do something but they got to do something that's what the markets are for. we shall see, more after this. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

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neil: amazon, you've got to wonder right now the company halting construction in seattle over a proposed tax they want to tax some of the big tech titans there to help pay for the homeless taking care of them not going down well with this being forced down the tech company's throats and amazon among the first to say we don't have to be as big as we already are. deirdre bolton, welcome, deirdre to you first what's at stake here? >> well what's at stake is the city council of seattle is saying if you run a business, if

it brings in more than $20 million of revenue per year, you need to pay a head tax, so $500 per employee, basically to function to have your business function in that city, so far amazon, which has 45,000 employees in seattle, it is the largest employer in that city. that amounts to a tax bill, if this tax goes through between 20 and $30 million per year so this is a pretty big ticket item for amazon. from what i understand there's going to be a vote on may 14 so this is not a done deal. there are a lot of people saying listen this is just a way for both sides to negotiate by going public its just raised the stakes and it makes the conversation a little bit more interesting, neil. neil: i'm wondering that's already a pricey neck of the woods as it is, scott and real estate of course has been soaring with all of the billionaires in the neighborhood , but i can't imagine this is a constructive development. >> well this has dumb tax

policy written all over it and it doesn't really take someone with an economics degree to understand the more you tax something you less you get out of it and especially with high-tech companies where their employees are so mobile and at the time actually that amazon is looking for a second headquarters, that could become the first headquarters very quickly if this tax goes through , because it'll simply price amazon out of that marketplace and the easiest way to avoid 30 or $40 million worth of new taxes is simply to move your employees somewhere else. neil: the question would be where that would be and of course they're talking is amazon building a new facility and a number of cities widdled down in that group, i think newark, new jersey is still among them but that too not a cheap neck of the woods. >> so one thing that amazon already said is do you know what , hey, seattle we already have offices in vancouver and in boston. we're going to halt this project here in seattle until we come to an agreement on this but one thing we can tell you right now is we're just going to hire more people in boston and hire more

people in vancouver so that's even without building this second headquarters. you know, i think a lot of this and neil you just alluded to this. these big tech cities seattle i actually think has the third highest level of homelessness after la and after new york and i think from the city council's point of view in seattle they're saying we know amazon didn't cause homelessness but what has happened is a lot of these tech workers when they go and wok for a place like amazon they may make $100,000 a year or $200,000 a year, people at amazon fulfillment centers make usually on average less than $30,000 a year, just as a comparison point within that one company, but the seattle city council is saying a lot of middle class people are being squeezed out so they want this tax to go towards building shelters or homes that are affordable housing i think for 1,800 people and then to use the balance of the money to combat homelessness, but scott to your point, i do think it's very easy for a company like amazon to

just like well okay, we're just going to keep who we have and look elsewhere. neil: but scott, just when they were cooking it up, they said that corporations, tax rates have been slashed, amazon a huge beneficiary of that. this is autoincrement all level where they could well afford to do it. what do you think of it? >> well it's kind of silly and if they wait long enough they'll have a lot of empty office buildings to put those homeless people in so they won't have to build new shelters but that's the reality of the situation and the federal tax cut really should have no bearing in here. it's the competitiveness of the city that's really important and other cities like chicago have eliminated these kind of head taxes because they were un competitive and as mayor emmanuel said in chicago they're job killers and actually what's interesting is that seattle used to have a smaller head tax, many years ago and they eliminated for the same reason because it was uncompetitive, and for the

same reason they ought to really discard this idea because it's really a bad economics. neil: all right we'll study closely they're still going through it, the city is being threatened by this but we'll see what happens when it gets close to that meanwhile stocks are pushing positive right now. we're following that also following rates that are pretty pretty flat for the time being, whatever fear people had of that rush to go that's also dissipat ed but we still have two and a half hours to go. anything can happen. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. i'm all-business when i, travel... even when i travel... for leisure. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations-

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neil: all right we have erased a also of nearly 400 points we're up about 30 right now boeing is a big contributor to that this could be a case of this key player that would be directly effected by these ongoing talks going on in china right now but those talks might work out. that's a leap. i have no idea but it is one that is closely scrutinized and almost directly parallels what's happening on this soft front how

they would have any idea that would be beneficial to that and some other premier layer players , caterpillar is anyone's less but we're grasping at straw s here but no grasping at the turnaround in that stock and the day is not done. meanwhile the president is hinting and again i stress hinting that north korea is on the verge of doing something very big, something we've been waiting on for quite a number of years and that is releasing three more hostages in one case, someone held there for the last four years, on whether we get the announcement today we're told it's just a matter of time of which 43 deputy assistant secretary peter brooks. first of all, they wouldn't be hinting at this, the president wouldn't be saying this is the possibility unless it were. what does it mean if it comes to pass? >> well it's certainly good news for the families, for these detainees, for the united states , these are people that have been detained by north korea for a number of years as you pointed out, and getting them home is critically

important. very important. the north koreans we don't know when this is going to happen neil. hopefully it'll happen soon. we understand they've been released from the labor camps they were being held in and returned and hopefully will be turned over to an intermediary maybe the swedish embassy from north korea and return to the united states soon. they could wait until a summit. they could wait until after the summit as well so hopefully as soon as possible but north korea is doing this, i would say, to improve the chances of a positive summit with president trump. neil: you know, peter, i feel like the columbox character, it doesn't make sense, right? it's almost too good to be true. i welcome and hope it is, but when we talk about the north korean leader this is the same guy, not that long ago launching missiles and threatening the globe and saying a lot of nasty stuff about a lot of foreign leaders and governments and now,

he's like, you know, father o' m ally. it doesn't jive to me. >> i understand it. i'm deeply skeptical too, i've been working on north korea issues for 20 years i've been to north korea years ago. i've watched their activities and i agree with you. you know, i'm cautiously optimistic but deeply skeptical. we have to see if this leopard has really changed its spots. neil: do you think he has? for the desperate stage we're at here. >> yeah, we are. these are desperate you're right because of their nuclear capability the times are dire but the trump adminitration has put a lot of pressure on them. the president has been tough on them letting them know if they start a fight with the united states it's going to end badly for them. he is a young leader he's not the same as his father or grandfather. he's of the same obviously but educated in the west and i'm not saying he's a reformer because he's been brutal at home so he's taking power and consolidating that power but perhaps there is

positive things to come out of this. i think there's a lot of heavy lifting we should be guarded but the president has a team in people like john bolton who knows arms controls, understands north korea and they're going to see north korea for what it is so we'll just have to see. i think it's fair to test their diplomatic intentions and okay to meet with them and see what they mean by denuclearization, how far they're willing to do and what they're thinking. they're not telling us a lot right now at least in public channels. neil: i don't know weird vibes peter but you have a brain. peter always good seeing you my friend thank you. thank you neil. neil: all right, back to president trump not about what he does in north korea and what happens to these hostages or what he's going to do regarding robert mueller request for an interview, in fact there are separate reports he's saying do it or else. is it really worth it? is it worth the risk? what rudy giuliani seems to be saying and the white house seems

to be in you mating after this. at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

neil: i'm liking that graphic. we poured a lot into it. you know, this is a business, a small business and one small

town, right now is looking into a unique way to appeal to the big boys and i mean big boys of the diamond and baseball hillary vaughn has the details on all that, hillary? >> hey, neil will birdman bats is giving america's favorite pasttime a makeover. gary started building bats by hand just for fun putting crazy stickers on his brothers bat to calm his nerves before a hit but now his fun colorful bats are ml b approved and the pros are loving themnd you see them in the hands of their favorite players on major league teams from the phillies to the cubs to the dodgers this season. they aren't as big as louisville slugger but he says that's a good thing. >> they have machinely that does every step of the way, so here is like we have a machine that'll cut the raw cut but then from then on it's meticulously crafted by a human that you could get in touch with and work with and has that really small feel i think not so corporate. >> neil, this is where it all started and today, this is where

every bat gets its personality. each bat is tricked out and painted by hand, and they say they can make about 100 bats a day. they hope to turn out about 5,000 this season, but you don't need to be a pro to get your hands-on one of these bats you can customize one online and get one shipped right to your door, neil. neil: all right good stuff there hillary vaughn appreciate that. you know, sometimes i think what's going on in washington these days and the back and forth oh, the trump thing they want to physically get that to go at each other, the president right now is entertained we're told and in everything with robert mueller, we don't know how seriously he's entertaining it but we do know from rudy giuliani his lawyer right now they're prepared to fight fire with fire, it's not 40 plus questions or a multi-day affair maybe more like a couple hours but they're coming together on something, independent women's senior fellow lisa booth and campus reform media director cab

ot phillips. what posture are they taking? sounds like they're moving closer and closer to the interview. it's just off the details right? >> that's what it seems to be and i think it could be a mistake for the president to go into a sit down interview unless there were very strict guidelines set beforehand. it's clear the investigation started out looking for russian collusion. they haven't gotten it. they're clearly getting dress pratt where they want to be able to prove all this time all these resources we're getting something that's when you get into the territory looking to make trump himself in an interview so they can prove look we got something here so that desperation could lead them to try and get trump in an interview. guiliani seems to be taking an aggressive stance and bringing flood in and the departure of co b who seemed to be a hands off approach looking like he didn't want to defend trump publicly. neil: you guys follow this very very closely but i don't know whether the president got much bang for the buck with rudy

giuliani with the confusion over the stormy daniels payment through michael cohen, and then the president clarifying yes indeed it was done threw him so there might be perfectly valid reasons to state all of the above, but it is confusing folks what do you think? >> yeah, i'm not sure how helpful it is to be out there in the media particularly with rudy giuliani most else recently but if you're president trump trying to decide how to approach the mueller investigation, look no further than what happened to michael flynn. remember it was reported that james comey had told congress that he, that fbi agents thought that flynn was honest with them. that he hadn't lied, and then mueller takes over the investigation and all of a sudden flynn, you know, said he or admitted to lying to the fbi right? so i think if you're president trump, i would be very cautious, not even to mention the fact you look at rod rosenstein and the fact that he was the one that laid out the case for firing

james comey and he's also the one that appointed a special counsel, so if you're president trump, i think you have every reason to be very cautious in just not trusting. neil: but here it is, guys things don't happen accidentally maybe they do, but that was rudy giuliani volunteering the information on michael cohen, so he wanted to get that out there, and he tried to clarify it and i don't know if it made that issue go away and what precipitated it whether this came up in a raid at cohen's offices and they had to explain it. what? >> some people you could view it as guiliani saying we're going to get ahead of this it's going to get out anyway let's set the narrative now and other people may say look mr. president saying i'm going to go out there and go to bat for you and have your back on this and without getting any approval it seemed to catch the white house communications team completely off guard and if you try to make this go away obviously it's not the way to do

it. neil: i don't know whose right or wrong on this, and i can understand if you're paying a lawyer a retainer et cetera. you just handle this it's the middle of the campaign fine but it's raising more questions than answers. >> it is but if i'm president trump i would want to change my tactics because they pes reall going more aggress every after mueller and his team particularly in light of some of this information that surfaced about james comey. think about what we know today. you have james comey whose lied and leaked. you have andrew mccabe whose lied and leaked. neil: creating an alternative though, right? well that's a good question and i don't understand the strategy behind it. i hope there's a strategy behind it but in terms of getting more aggressive with this investigation i think there are a ton of concerns and questions about the investigators themselves and what was at the root of this investigation to begin with. you look at james comey's own memos and they indicate the fact that president trump wanted this investigated. he wanted to get to the bottom of potential russia collusion

and then to the collusion point what has surfaced to date that dates is there any sort of solution that took place to begin with and then you go back. neil: i think it goes beyond the collusion thing. >> okay then what was the obstruction of justice president trump did something in firing james comey that literally hillary clinton would have done, bernie sanders would have done if he had been president, that democrats had been saying needed to get done that they no longer had faith in james comey. so what did president trump do that was -- neil: well at the risk that the president's legal team you'd rudy giuliani saying screw it we're not going to talk to you. i think the american people kind of see through it at this point this is a partisan investigation going on and for trump to go along with it or to not go along with it i think the american people understand, why would he leave himself to the wings of these people clearly out to just get him. neil: can they legally force the issue and say you have to testify? >> well i think that's in question right? i think mueller probably does have the authority to do it. i saw alan dershowitz talking about this saying he could pose

a legal challenge to that. neil: you never know. right. so i'm not an attorney so we'll see how that plays out but from a political perspective he should be tough and go after the mueller team. neil: all right so many lawyers, so little time. guys thank you very very much, the dow is up 6.5 points we'll have more after this.

. . hi, i'm bob harper,

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neil: all right one of those volatile days. swings of one or 2%. twice as many as last year. we're a third of the way through this year. the dow reversing 400 point loss earlier. we're up eight 1/2. nation can happen. problem will. trish regan. trish: neil, good time as we cross into positive territory. stocks making a bit of a comeback here as the united states trade delegation arrives in beijing. i'm trish regan. welcome to "the intelligence report." ♪ trish: all right, right now top white house advisors are meeting with chinese officials amid trading tensions which sent out shockwaves through the global economy. chinese are saying beijing will stand up to u.s. bullying but the trump administration they're