gentlemen. playing tomorrow. ashley: can children -- championship of europe in kiev. stuart: fox sports 1, 2:00 p.m. eastern time. be there. it's a big deal, i know what i'm doing. thank you, have a great weekend, guys. the following president of the united states still at the naval academy graduation, shaking hands with each and every graduate. it's a great honor. blake burman on the back and forth that was backdrop for this. maybe north korean discussions could be back on? blake what are you hearing? reporter: now, a top official within north korea, he is suggesting that you know, they are still open to a meeting. one of the big questions, would be how would the north koreans react to all of this? the president said he wanted to

north korea to de-escalate the hostility. north create reacted with somewhat of a lower tone. we would be open down the line to meeting. when the president left the white house earlier here it address the graduating class of the naval academy, the president suggested that the two sides are working on a possible summit, potentially within the upcoming weeks. listen to the president early this morning. >> we'll see what happens. we're talking with them now. it was a nice statement they put out. we'll see what happens. it could even be the 12th. we're talking to them now. they very much want to do it. they would like to do it. we'll see what happens. reporter: shortly after that defense secretary james mattis echoed the same comments that this is the usual give-and-take. we'll see if the diplomats can pull it off. bottom line, what a difference as we've seen in the last several days, especially over

last 24 hours. what a difference 24 hours can make. meantime, neil, president trump telling our colleague here at the white house, jon roberts, he has struck a deal with chinese president xi, that the chinese would buy a large percentage of parts from the u.s. they throughout out a figure of $500 billion. president trump countered with $1.5 billion. they settled on $1.3 billion figure with the add-ons back side of that. you know how they say stateside, neil, all politics is local. that is an important component of this as well, according to the president, president xi told him tens of thousands of people from his hometown in china would be affected by the decision by the commerce department which they said u.s. companies could no longer sell parts back into

china to help out zte. that appears to be one of the driving factors for xi jinping in all of this. we should point out even though according to the president the two most important principles here, president xi and president trump have agreed, it remains uncertain the timeline you how it all would work here on forward to get an actual point to put that deal in place. neil. stuart: whether you could them to keep to it. both sides. thank you very much, blake. meantime, back and north korea, where is it going? they coordinated a 1994 north korea deal. he is here with us now. what is going on in the headlines right now? >> honestly i don't know what to make of all of this. this is a real roller coaster ride. i'm not sure where it will end up. all along i thought the summit would happen. yesterday i had my doubts. today i'm not sure. so i think the bottom line here

is we all have to wait and see. neil: who need this is summit more? you would think the north koreans so they don't want this to fritter away but don't want to come to the table looking like they have. what do they do? >> well, i think the north koreans do want to have the summit but i think they're also perfectly willing to walk away. so, right now, it looks like what's going on is a lot of tactics. there isn't an overall strategy. and for the north koreans of course, they can't come to the table looking weak because they are a much smaller country than the united states and they feel their weakness. so, you know, let's hope it is bargaining, tactics, not some bigger problem here. neil: when you were negotiating with the authority koreans back in the '90s was china as big a factor in your discussions as it clearly is today?

>> well, china was a big factor back then and we worked very to keep the chinese on board with us. we met with the chinese constantly. we told them what we were doing. the big difference back then though was we were engaged in very serious diplomacy and the chinese liked that. so they were willing to play along with us. more recently there hasn't been much diplomacy, and that's made them less likely to be very supportive of us and now with the up summit i think overall they will support having the summit and also they're very interested in a good diplomatic outcome. neil: you know what is interesting, depends on the prism which you examine these things, mr. witt, as much as we don't seem to trust kim jong-un, maybe you were dealing at time with the father and of course his father before him there is a

sense when i read the asian press, particularly the chinese press, they don't trust the united states. so it's a mutual sort of cautious, you know, back offish approach. what do you make of that? >> well, the chinese don't trust the united states, and the level of distrust has varied, depending on administrations. so when i was in government they didn't trust us but i think they had a feeling we were heading in a direction they could support. more recently of course with president trump there have been a lot of earth issues in the relationship that have created problems and so i think that's created another higher level of distrust but the bottom line here is, for the chinese, they want a peaceful solution to the confrontation on the korean peninsula. so that's what they are going to support. neil: do you think that the president has been saying that

kim jong-un's whole posture, his entire posture changed with that second visit to meet with the chinese leader? and the timeline does suggest, given more bellicose comments out of north korea post that last meeting that something did so you accept that at face value, i don't know if you do, how do the china niece dial this back for north korea or did they? >> honestly i don't accept that. i don't think the chinese encouraged kim jong-un to be tougher or to not agree to a summit. i don't think that happened. neil: what happened? what prompted the more bellicose talk on the north koreans talk then? >> i think what's happened is, the public statements by administration on the libya mad mad -- model, which essentially north korea gives up its nuclear weapons and maybe gives something in return that has triggered a fierce response.

that is entirely predictable. neil: you say it started with us? this is the trump administration's fault? >> i think it is in part the trump administration's fault. in part we could have expected some of this tactical, these tactical moves by the north koreans leading up to the summit because they want to look tough. neil: every one wants to look tough. joel witt, thank you very much. good seeing you. >> thank you. neil: never mind the president walked away from the table before he got to the table. you remember when ronald reagan walked away from the table when he was at the table? that was in reykjavik, iceland. that was a famous time when he was negotiating a missile agreement with mikhail gorbachev. they discovered something in the paperwork at the last second that he didn't like. that is a suspend so-called "star wars" defense initiative plan. reagan said it, saw it, to hell with it, i'm out of here. they regrouped months later and did strike a deal. a former reagan economic

advisor. more the look back at that history, david, more it start tells me how startling that was, because it caught every one, including many in the american delegation by surprise. what lessons can we learn from that? >> well, the lessons is, this is a long-term process. i remember the view coming from the foreign policy establishment and the left was that reagan's administration was over. that american children were facing a future, nightmarish future of nuclear holocaust. there was even suspicion that the, assassination attempt against the president, his injuries had caught up with him. that he had completely lost it. essentially what happened in reykjavik, a lot of principles that no one could get accomplished before such as on sight inspections, the soviets agreed to. it was just the "star wars" provision broke it at the end. that was in '86. in '87 they came in and finished the deal and had an agreement

that was far more productive. soviets gave up a lot more than anyone had imagined before. so i wouldn't assume anything about this. the one thing that i do find interesting is that you listened to the discussions and it is as if north korea is its own, its own agent. north korea, if, if china is like the godfather, marlon brando, north korea is frado. neil: [laughter] >> he is the wild guy who says stupid things but he is under control of the godfather. everybody knows it. the foreign policy community does not like to discuss these things in the context of trade and all the rest but, let me tell you, the chinese are big players. it is really a u.s.-chinese negotiation here. it involves trade, it involves

intellectual property theft and it involves the north korean situation but it's all mixed together. the administration i can tell you knows this. they don't talk about this in public. neil: no, you're right. let me pursue that godfather theme then. the understanding seems to be, and i think you're quite right about this, it's no accident, and not merely coincidental in the middle of this dust-up when the north koreans were even considering badger the united states and all that, all of sudden we were talking about hiking tariffs on imported vehicles coming into this country and clearly sending a signal that we were going to get tougher on trade in the middle of those trade talks. >> exactly. neil: so that, and then learning very quickly we had canceled the june 12th talks, it is clear that we're working on a variety of levels here but to what end? >> eventually the u.s. and china have to have a policy. i mean what upsets me about what

has just happened in the last 24 hours, and i'm not that partisan but you have democratic leaders out there going hip-hip-hooray. we could now be vulnerable to the north koreans. we need not just a north korean policy, we need a bipartisan china policy and that is going to take a while. we have to get the right people in the room whether "gang of eight" or gang of three. this isn't saying something as important as china is left to run adrift. it's a policy by, you know, ad hoc. i do think we have to have a china policy and if we have a china policy, north korea will be part of that. the china policy on intellectual property theft, all those things we, have to have a plan. i will tell you this one thing. during the recent imf meeting, where all the finance ministers and central bankers come to washington, i met with a number of officials then. they all said the same thing.

they said, we can't handle the tariffs but if the trump administration wants to do a deal on china's intellectual property theft, the technology extortions, all that, we agree with trump 100% on all of that. let's work together for a policy. that is where you find the international consensus. that is where people look back on the trump administration, they did something good then. they brought the world together. we can not let the chinese to pick the world's low-hang fruit. it is just not, i don't believe in tariffs but i don't also believe in stealing property and extorting technology from companies. all the things, tricks that they do. it has got to stop. neil: you're quite right about this the way to solve this is through china. when push comes to shove how we do that, how we ultimately deal with that, it will be about china. >> absolutely. neil: pretty much only about china. david, i can't believe, you seem so young you could have been working with ronald reagan. i guess that's true. >> i have one thing i can say

that i'm happy about. ronald reagan never said, called me frado. neil: that is a great analogy. i'm stealing that as my own. touche, david. have a great safe memorial weekend my friend. >> okay. neil: this is a little bit of news but probably too late for your driving this holiday weekend or early part of the summer at least. gas prices are high right now. but if oil is any indication, they can be coming down soon if this sticks. because two prominent oil producers, two big ones, have said you know what? these caps, they're so not working. after this. i got scar tissue there.

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neil: well, if you're taking off on the road right now, and showing crude oil today down close to three bucks a barrel, now a lot has to do with reports that the saudis and russians, to disparate countries they are, are rethinking idea of production caps and hint of that. they haven't done anything about it, shows we'll maybe flood the market with supply when demand is well, you know kind of. whatever the case, that might lead oil to drop today, but gas prices when you go today are about 60 cents higher than a year ago. apparently not affected people

on the road. i was noticing this yesterday. a lot of people start their memorial day weekend like really early, like yesterday. what are you doing here? >> i have no idea. neil: you have no idea. fine. i have no idea. we got market watcher larry shover on all of this. larry, if the high prices were supposed to dissuade drivers, that does not appear to be the case. what is interesting about this, is the higher prices are partly, you know as a result of improving economy and a pickup in activity but there does come a resistance point, doesn't there? or when? >> yeah. no, i think there does and product, gasoline up, 10% on the year and at some point that will, there will be an inflection point but we're not seeing it right now, i think it is because we got done with very high gas price as couple years ago. somehow we're getting used to that. gas shouldn't be two dollars a gallon. should be close to $5 a gallon.

neil: larry, let me jump on that. what should it be. new york city and california, mimicked with high taxes on gasoline. 4-dollars gas a anomaly, you would say that would be returning to norms. >> thanks for clarifying. i don't mean it that way. i think we as consumers are used to that. oh, that is what we have to pay. the shock value is over. i don't think we'll see it. i hope we don't see it. i think the right price for gasoline is 2.50, 2.75. getting up 4, 4.50, that's tough. neil: when people, a lot of gas stations have prices in similar range in a community or what have but it is high and getting higher. do you expect this to dissipate or what do you look at? >> i do think it is going to dissipate. i've been saying that all year, so, full disclosure about that.

opec, they took out 1.8 million barrels of day off the market 18 months ago. combine that with venezuela. we're short about three million barrels a day. whether this happens in the third quarter or the fourth quarter. i'm hoping it is the third quarter. that would make price goss down quickly. we have to remember the u.s., pipeline constraints, there is a lot of supply. we can't get it through. if there is a shale surprise, that is going to help weigh on prices as well. and lastly and not least, let's face it we're closer to the end of the cycle than we are at beginning of an economic cycle. i can't imagine global demand remaining how it has been over the last 18 months. neil: incredible. larry, thank you. have a wonderful weekend. >> thank you. neil: in case you didn't hear harvey weinstein was back in court. came and left. not before encountering one connell mcshane who was watching it all. connell, how did it go? reporter: something else earlier

today, neil. weinstein is facing serious charges, one-time movie mogul. one woman alleges he raped her. another says he commit ad criminal sex act. the 66-year-old facing up to 37 years in prison. he made an appearance before the judge, kevin mcgrath at manhattan criminal court. his lawyer, the well-known defense attorney benjamin brafman in the courtroom. following that appearance, brafman stopping on the way out speaking briefly reporters. here he is. >> mr. weinstein will enter a plea of not guilty. we intend to move very quickly to dismiss these charges. we believe they are constitutionally flawed. we believe that they are not factually supported by the evidence. and we believe that at the end of the process mr. weinstein will be exonerated. reporter: now as brafman was speaking out in front of the courthouse mr. weinstein was led

out a back exit. he has been asked by prosecutors to surrender his passport. wear a gps device. he can only travel to the states of new york and connecticut before due back in court. i said something else, earlier today, we zahar very weinstein well-known movie executive years or years. led out in handcuffs by the new york city detectives escorting him to suv. he will be due back in court in the summer. jewel 30th, these are very serious charges wayne steen faces. two women, a woman from 2004, a woman alleges that weinstein forced her to perform oral sex on him. the second from 2013. a woman that alleges that he raped her. neil, back to you. neil: connell, thank you very much. connell mcshane. a quick peek at the corner of wall and broad. the dow is down 80 points. tumbling energy prices not helping today. might help you at the gas pump.

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neil: they say technology is grand but in the case of facebook, case of amazon, reminders sometimes, sometimes, it can also be annoying your privacy endangering. kristina partsinevelos on examples scaring some folks. reporter: one example, amazon echo. i don't know we can use the word sometimes anymore, neil. amazon recorded a private conversation of a couple in portland, oregon, from there, sent the recording to a contact list in the husband's phone. it was an employee. oh, my god we're being recorded. is big brother watching? amazon did say yes, the alexa which is a virtual privacies

stance did record the conversation but amazon has a explanation. there was a series of miscommunications. according to amazon, amazon heard the word alexa. so it turned on. alexa heard within the conversation, record this conversation. then it started to record. alexa asked the couple who should i send this to? for some reason the couple mentioned this employee's name. amazon took that, okay, let's say his name is bob and sent it off to bob. there is a series of events amazon says, very unlikely, we could essentially call this a butt dial. i rechecked with amazon and reissued a statement from their spokesperson dawn, unlikely a string of events is we're evaluating options to make this case even less likely. might be unlikely at the moment, but, there are concerns. we need to be reassured that big brother isn't watching a case not too long ago unfortunately a

murder in a hot tub. in court the court asked for records of the amazon echo. they did receive it. yes, amazon is recording your conversation now it is up up to you as consumer need to be more diligent. here are a few tips i saw from a skew security experts and be safe from big brother. go into the amazon account, delete recordings associated with alexa. there is an alexa tab. you can do that with google as well. next, get a secure router. that device forwards your data to other computer networks. third, this is so annoying, change the default password, wi-fi passwords every once in a while. you need to be smarter, getting all the devices connected, this couple had every single room connected to monitor the heating, light, security system. now it is up to you. unfortunately amazon called this situation unlikely. we want to hear the word this

never. stock price barely affected today. not affected at all, neil? neil: that seems like a incredible series of events that prompted it. >> there were four commands going on. the couple said they didn't hear any response from alexa. maybe the speaker is down. still unclear. amazon is not responding to the question. doesn't make sense. are they listening? the answer says yes. neil: i don't mind alexa spying on my teenage sons. alexa, are they on their device again? she lets me no. thank you very much, kristina. netflix, disney, battle royale who has more market value. netflix has the edge, but doesn't hurt when michelle and barack obama signed a deal which could boost the company's footprint particularly with younger viewers. jerry boyar is here, says netflix's ceo, reed hastings,

could be a big beneficiary of all of this. in in the meantime, in the meantime, it has been one stock to watch. good to have you back, my friend. >> good to be with you as well. neil: what do you make of the fact that, i always wonder, i know netflix and getting likes of david letterman, own programing, running to billions of dollars, more than make up with all the money they raise and market value but always seems to get bigger, bigger, and yet they have a market cap now, you know rivaling, higher that of disney? >> yeah. that's a little bit worrisome. they're throwing a lot of money at programing and that's fine, that's innovative but here's the question? is the ceo acting in the interest of shareholders or acting in the interests of his own social agenda,idealogical agenda? he was a supporter of barack obama, that's fine. but question is this going to be value added for owners of the company or is this going to be a value added for ceo and his own

agenda? my point is, having researched this company deeply in terms of their governance rules and forensic accounting this is a company where the ceo has not earned the trust of shareholders when it comes to putting shareholders first. he has put up, unusual amount of moats, keeping shareholders from being able to put proxies on the ballot, being able to change directors. they are keeping directors who don't keep majority votes. this company is really centered around the ceo more than the shareholders. so shareholders are coming forward, we don't know about this obama deal. i don't think reed hastings can say trust me, i always put your interests ahead of mine because structurally he hasn't. neil: well, if you're an investor in the company over the last years you've done more than fine. >> absolutely and that happens a lot with these companies where you have a kind of like napoleon ceo. rides up fast and rides down hard, tesla would be another example of that. neil: you think that will happen

here? >> i think this is in the tesla category. i think reed hastings is like elon musk in his management time. i don't know when it is going to happen, i don't know know for sure it is going to happen, but data shows over time, shareholder orientation, warren buffett called it owner orientation, ceos get they are the hired help, not masters of the universe, over the long you know outperform the big ego ceo who ride as rocket ship to the top and rocket ship blows up comes down when there are shareholder revolts. neil: jerry boyer, good seeing you again. >> thank you. my pleasure. neil: chairman of the federal reserve said something that some concerned that the pace of interest rate hikes, they could be picking up, after this. ♪ for our customers. it's how we earned your trust. until... we lost it.

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neil: 38 minutes after the hour. i'm talking about a financial literacy study a lot of americans can't answer. throw you one question at you, see how you do. simple true or false question. housing prices in the united states can never go down, true or false? i don't have all day. that is false. they can go down, often have, the often volatile. part of a bigger picture a lot of americans miss. that is problem with my next guest. if you can't get a handle on basic points of this, how are you ever going to save? how are you ever going to be ready for retirement, all of that? "barron's" associate publisher, very savvy author, jack otter, publisher. good to see you. i was amazed by number of people who got stuff wrong. you can always catch people up on stuff, this notion not even

recognizing that stocks over the long term, are pretty good investment. maybe they're jaded by recent history and all. what does this tell you? >> well, this stuff is not taught in schools. that is why people don't know it. it is, nobody really tells you this. they throw you out of college and or high school, wherever -- neil: you're right even in college. >> they don't teach it. i love that last question you referenced because it is asked every year, what will do better long term, bonds, stocks, savings accounts, real estate or gold? whatever the answer is what has done better recently. so we're in the midst of a bull market. sometime people say stocks. usually it is real estate or sometimes gold if things are really bad. neil: the question is longer term. >> the longer term answer is clearly the stock market. two problems, neil. one that people don't know the answer. and then the other, it is lesser known, people who are sure they know. and they're often wrong. because you know, my father-in-law, great guy, he said, no, i don't put any money

in the stock market. the market is rigged. it is for rich people. luckily his pension he gets for being a teacher mostly invested in stocks. he doesn't know it. neil: that's funny. >> there is a germ of truth. neil: does he like you? i never was keen on you, kid. we're saying, a lot of people of this view we're not ready at a country. retirement studies more than we know are okay. but numbers that i see by and large show a high percentage of the population isn't saving nearly enough, no matter what age group you go into. >> that is true. the remember the old three-legged stool, pensions, personal savings and social security. pensions are largely gone. single digits of new employees going into countries with mentions. neil: defined benefit with 401(k). >> you get a check until you day you die. 401(k) type thing, people don't get great advice.

companies were not allowed to give advise that. is improving. if you don't know, use the target date fund, not that it is the best thing ever, but at least it is aimed, coincides with your retirement date. so that is a fairly safe place to go. then social security, people worry about it going bankrupt. frankly i think the hyperbole is a bit loud there. it is going to stick around, if for no other reason people collecting it are the ones who go to the polls more than anybody else. but we still have to do a lot of work to be prepared. neil: one of the things you get into is just, maybe some math rules here, imagine the interest rate on your savings account was 1% per year and place was 2%. after year how much would you buy in the money in the account, more than today, exactly the same, less than today. six out of 10 got that right, less than today. >> right. neil: they're not document. we had a stretch that people are not dumb about this, one vulnerability is not discussed whether they're saving it now or

right investment vehicle, they haven't factored how much they will need. i was mentioning this, a couple i talked to, what they want. it is pretty much everything they have now, lifestyle they have now. >> of course. neil: if you want the lifestyle you have now, you need to be making everything you're making now. >> have some savings. may not have kids in the house. health care costs are going up. neil: right. >> this is crucial point that people don't understand. what you need to do, you need to save enough money that savings will actually create an income stream for you. so it is not as if you take a few bucks out this year and a few bucks out next year and hope you die before it goes to zero. you want to figure out have enough money it kicks off a return. those numbers are really scary because 4% is generally the rule of thumb. neil: 4%. >> of whatever you're saving. neil: live off of that. >> that is what you can take out per year. do the math, you have to have a lot of money, million bucks is

$40,000 a year. so that is scary. if people get their head around the concept, give them idea what they will need by age 65 or 70 or 80. neil: whatever. jack, thank you very, very much. jack otter, "barron's" associate editor. very good read of this stuff. he didn't come up with the questions but would come up with much tougher questions. >> read my book. neil: absolutely. if you're driving down two different roads -- >> no, no. neil: no, no. well of course rising interest rates could affect this we're getting indications they could rise more aggressively than we thought before. hints at that what the fed chairman is thinking. coming up adam shapiro has the very latest. hey, adam. reporter: neil, that is correct. the fed chair's speech in sweden was to celebrate 350th anniversary of their bank. he hit on a lot of issues. he talked about issue of moral hazard. he is not sure moral hazard has been done away with.

he talked about the fiscal outlook for the united states. he is concerned about where we're headed. here is what he said. >> it's a fact that the united states is not on a sustainable fiscal path. it is a serious problem. now is great time to work on it, economy is strong, unemployment is low, momentum in the economy and depending on timing and scale of the next downturn, whenever it comes, may be we pushed back to zero. we'll need to resort to unconventional measures or to have some fiscal support. reporter: of course he is talking there about fiscal supply but also monetary policy. and that is what the fed is in charge of, monetary policy he said actually the policy of the last few years which included forward guidance to the markets and to the population, he actually said that perhaps it is time to pull back a bit on forward guidance. bottom line on this speech. it didn't move markets t was really terrific, if you have

insomnia. neil: thank you my friend. adam shapiro. i'm sure it wasn't that bad. maybe it was. we hear about the tariffs the president is considering on imports coming into this country. the dirty little secret on tariffs the government doesn't pay them, you do. hope you don't pay signed on tariff, 25% president is considering on auto imports that come into this country but you will pay more for them. the idea as well you are less inclined to buy foreign vehicles in favor of american ones. but what happens if this all escalates? we're on it after this. i'm gonna regret that. with new car replacement, if your brand new car gets totaled, liberty mutual will pay the entire value plus depreciation. liberty stands with you. liberty mutual insurance. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early

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neil: as you know the president is seriously considering tariffs on foreign cars coming into this country at 25%. contrary to popular belief, when you read these financial series, governments don't pay that, you do. for your honda, acura, toyota, mercedes, whatever, you would pay more more those vehicles, up to 25%. we have automaker ceo what could happen then. people are not prepared for that. for one thing they don't know the particulars. for another, as you and i were discussing during the break, john, they don't think it will happen. what do you say? >> i think that's right.

terrorists are questions. no question about that. what we'll do, if this happens, if the government imposes these tariffs on imported cars, we'll have higher prices for american consumers and fewer vehicle choices. it's a terrible day for consumers if in fact that goes forward. the question you have to ask yourself, who are we protecting? the industry is thriving. we're selling and producing and exporting at or near record levels in the united states of america. so if this is an effort to protect -- neil: are we exporting at record levels? >> we are. we're exporting two million cars and trucks every year. neil: not a lot are making their way to china. >> no, they're not but that is a conversation for the u.s. and china to work out. neil: you don't like the way the president expanded this to all auto imports. is there any saving grace for those who have factories here? >> no. in fact i think it is the opposite. it's a great question because we have 13 car companies building cars here in the united states. what these tariffs will do, is

first of all, they apply to auto parts as well as finished vehicles. neil: not at 25% level? >> we don't know yet. neil: right. >> we won't know. this is an investigation and tariffs get set at the end of the investigation if in fact that is where the administration goes but there is no question they're looking making auto parts more expensive, which makes the cost producing cars in the united states also more expensive. do you think our trading partners will stand idly by and take this? i think we'll face retaliation which will increase cost of producing and selling those two million cars we're exporting around the world. so i think it is a very, very challenging environment for automakers here in the united states as well. neil: now, the president seems to work, i don't know if this is the case, i will never have to fire the weapon if i threaten that i have the weapon. in other words, that these tariffs are in my hip pocket just in case the other side doesn't bend, ostensibly, the

chinese. what do you think of that? >> if i'm a car customer, i don't want to be considered leverage. neil: or you might want to buy early, buy now while the getting is good. >> maybe. if i'm an auto worker, i'm making a toyota camry in kentucky or frankly i'm making a ford in kentucky, i don't want to be leveraged either. i think that is a dangerous game. i think the better way to do this is through trade negotiations. we need more negotiations. frankly we need better and more opportunities to sell abroad. neil: all right. people will flip that around say, buy american. as you pointed out there are americans making foreign cars, toyotas, hondas all the other stuff in the united states. president is pushing take pride in american cars, we can more than prove that to customers who might be ticked off. what do you say? >> is toyota camry in georgetown, kentucky, less an

american car than a ford? camry built in kentucky, look at other figures has more u.s. content than any other car made in america. this is -- neil: that is foreign parent company? >> that is being reinvested in georgetown, kentucky, and plants around the country. neil: i think the president is being short sided? >> i think we have to take a broader and more strategic approach to benefiting u.s. auto industry. we have to recognize the u.s. auto industry is 14 companies, now three or two. neil: how is the auto industry doing? car sales have been very strong. it might have slowed down with up tick in rates. up tick in rates continues in and out of seven year mortgage highs. i'm sure on consumer loans it is something similar. are you worried? >> no, i'm not. i think as you said sales are at or near record highs. they may have peaked a bit from what we've seen. sales remain pretty good. production levels are good.

we're exporting as i said so i'm feeling very good about the industry right now. again this is interesting, which is not like the steel and aluminum industry, hey, we're struggling, we need protection. this industry is thriving. neil: i'm wondering if what we're looking at now in auto industry is shift in sentiment brought on by gas prices that are jumping? everything, americans are buying sport utility vehicles, not the best gas mileage behind them. that might change with this. what do you think? >> that has been the trend. as gas prices come down, what we see is u.s. consumers buy larger, larger trucks and suvs, crossovers. neil: right. >> in fact that is very much the case. more than half, probably close to 2/3 of what americans are buying in the marketplace today are cuvs, crossover utility vehicles, sport utility vehicles and pickup trucks. neil: does that change? >> in the past it has.

neil: really? >> in the mast it has. if you go back to the time of maybe four to $5 gas, that ratio of cars to trucks was closer to to/50. maybe favoring cars a little bit. the sales of cars. neil: she must have have gotten tab on filling up her su have. it was a lot because i heard her go ah! >> interesting. neil: yeah. >> the good news american producers are making, every segment is becoming more efficient. we can tell her to find a more efficient suv. neil: i think she is still there in a state of shock. we're still in a state of shock about the talks in north korea that might be back on again? after this. with this clever little app called audible.

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neil: all right, we are still following on this naval academy graduation, the president spoke there and they shook hands i think with every graduate here. one of my favorite things is when they throw their hats up into the air and i always wonder how do they retrieve their hats and of course if you if you have a huge head like me it's pretty easy but that's one of my favorite things to watch, are they close to doing that? well anyway the president in remarks prior to arriving here had been talking about how he is open to a summit meeting after all, but the back and forth on this has the media saying do you know what? this is on you, this thing falling apart. take a look.

>> there goes that nobel peace prize. >> president trump today sent a letter to north korean leader kim jong-un canceling their upcoming meeting, so let me just get this straight you sent a dictator a letter, but you twitter to fire most of your staff. >> [laughter] >> how do you break up with your wives, billboards? >> this is a total breakup letter and when your relationship starts souring but you want to be the one to break up first so you cut it off that's what this feels like. neil: all right, let's talk to former navy seal former deputy assistant of bush 43 blahed blakeman and olympic media managing editor katie. you know the president can be damned if he does, damned if he doesn't first of all to get as far as he did and the concession s that he was able to get from the north koreans prior to sitting down at any table. is one thing, but now, blaming

him for this thing falling apart when in fact there are signs today it might be back on but it's almost like i get a sense of some are rooting for failure here. >> well, yeah president trump is damned if he does or damned if he doesn't. the left is going to find a way to be upset at him about this whether north korea canceled it or he canceled it or somehow someone else canceled it, it would all be the president's fault but honestly neil i have a friend whose serving overseas and when he heard that trump put his foot down and said if they're not going to play ball we're not going to meet. they loved that. him and his service members were so excited to see a president finally willing to throw punches and you see north korea turning around potentially and saying we have a lot to lose in not negotiating with america so i think the left should hold their tongue for a little bit longer. neil: already, now they did have the hat toss at annapolis, one of the favorite and more iconic

moments in military views where they throw the hats into the air and again i just wonder oh, my god where is my hat. >> [laughter] neil: that's just me, dave you're a hero i'm not. i play one on tv but i'm looking at this wondering the president really got these kids excited today, and i'm wondering where they fit into this global picture of a prouder or strong united states that's what the president was portraying at a time when he was the one who backed away from these north korean talks so immediately, some of the president's opponents were saying you're sending mixed messages what do you think? >> i totally disagree with his opponents. actually i don't pay much attention to them at all because none of what they do, none of their analysis is based in objectivity at all, so just like katie said it doesn't matter what he does, they're going to take the opposite. if you just simply look at the fact that he got three hostages released from north korea that is a huge win that no other president was able to accomplish

ever. just that is a giant win but they don't portray it that way. i think that he's showing a position of strength as he said in his speech at the naval academy which is great which is a message to these guys that are coming up that are our next generation. i don't see any inconsistency in what he did at all. neil: you know yesterday, maybe back to the ronald regan example where the star wars defense initiative, strategic initiative that a lot of people at the time the media to say the least and soviet union thought he was crazy but it's good to keep him guessing this historian said it's good to make the world wonder that you might just do anything. what do you think of that? >> well i think matt gorbachev was poorly briefed as is kim about leaders in america particularly ronald regan and trump. they are leaders who stand on principle. they're not going to make a bad deal it's better sometimes to do things that you don't do than to do things you're expected or forced to do.

gorbachev never thought ronald regan would back out and when he did, gorbachev had a whole new view of ronald regan and the american people and i spoke to gorbachev under 43 when he came to talk to him. now donald trump. donald trump is not going to make a bad deal. he's used to making good deals the problem is democrats are used to apology and like iran like withdrawing from iraq. you're not going to find that with this president. i think by donald trump sticking to principle we're going to get the best end of the deal if a deal is to be had. neil: well just keep in mind as well that republicans have been hoodwinked before it was george bush who also wanted the talks with the north koreans and it was led down the wrong path but having said that katie i am curious as to where this goes if the talks can get back on, can they get back on for june 12 and if they can't then what? >> well then what that's a really good question. i think june 12 is coming up very quickly. we'll see if they can make that

work but i look at it as can we get a meeting to happen at all, whether it's in june, whether it's a few months from now, if we can get sitting down with the north koreans and discussing how to potentially start moving toward a better life for the people in north korea, better relationships with south korea then whatever time that happens, it will be good, just as long as we have the communication with them to make the meeting happen. i think that's move important right now than when it happens. neil: all right, guys thank you all very very much. we've got breaking news here we're learning out of the commerce department that a possible deal to allow zte the china telecommunications concern to remain in business has been scored with more on this edward lawrence who joins us out of our washington bureau. what are you hearing? >> well, neil i could tell you the president donald trump is saying there is a deal that will keep zte in business on the u.s. sanctioned crippled the company and as a personal favor to president xi, president trump says he would look into those enforcement actions now

apparently the president says the company will be allowed to buy u.s. technology again. this is a settlement to the enforcement action that the commerce department took against zte but the president says there was some back and forth but the fine will total $1.3 billion. the management and board of directors at the company will change and there will be security guarantees. they come from a compliance committee with an officer who has experience in international trade and the president says that a large percentage of parts will be coming from u.s. companies. now the company has already admitted that faulted this saying they did sell u.s. technology to iran and north korea. the president telling fox news, "zte, i shut it down obama didn't punish zte. i shut it down" so the president went on to say this shows he is tough on china and chinese companies when they break the rules, we're still digging on this story to see exactly the timetable of when all of this will happen but again it appears that's t ewill soon be able to buy u.s. technology again. neil? neil: edward lawrence in

washington. we're going to explore this again as this is just breaking right now a deal to essentially save zte. that might catch at first blush saying we're saving a company sanctioned and punished for spying on us and worse. well the other shoe could be dropping this was supposed to be part of a larger trade agreement where we helped the chinese and when it comes to the chinese they help us, presumably on buying more agriculture goods or something the president wants. there are many many chairs being moved around here. more after this. [music playing] (vo) from day one, we always came through for our customers. it's how we earned your trust. until... we lost it. today, we're renewing our commitment to you. fixing what went wrong. and ending product sales goals for branch bankers.

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neil: all right, as we were just reporting here we're getting word that a deal to keep zte around, that is a chinese telecom company around, has been scored, details are a little bit sketchy but what it would involve is the united states backing up this company making sure that they didn't go out of business this was a personal request for the chinese president, for the american president to make sure it happened with the understanding being maybe even after fines and the rest the chinese will do something for us on trade. way too early to tell hasn't really moved the market one way or the other let's get the read from scott martin. scott that's what i think a lot of folks wonder what do we get out of this, right? >> yeah, that's the question, neil. maybe it's the american workers,

i mean maybe it is jobs in china which probably doesn't help america too much, but you know, who knows, man, maybe they final ly stop spying on us. i guess the world is an opportunity here but look this is one thing in the step to i think, neil getting obviously a trade deal or at least some sort of better negotiating going on with china with respect to trade and also that big player in the korean peninsula, and kim jong-un with respect to what they do to denuclearize so maybe this is that olive branch which i famously talked about a couple weeks ago and all the haters came out and attacked me on twitter, maybe this helps put it back into our quarter. neil: we definitely get a feeling we're operating on a variety of levels here i find it more than just coincidental that shortly before the president had announced he wasn't going to stick to this june 12 date and have this summit with the north koreans that he was telegraphing tougher trade measures against china, including 25% tariffs on

imports coming into this country and by the way coming in from all countries so maybe he's playing on a variety of fields here, but this could also boomer ang, right? >> it could and i think you made a good point. it just goes to show how fluid these negotiations are. how many times, neil in the last couple weeks have we heard there's no deal on zte and then there is a deal and then we'll raise tariffs here and take them off there and then it's 10 billion and 20 and then oh, no 50 billion just goes to show you have to be strategic here and get push and pull and the best negotiations are when both players or parties come away when they feel they got something so i think we're working towards possibly that solution. neil: all right, thank you my friend scott martin at the cme. now to jeff flock in chicago on an interesting development we've been following the fact that a lot of people are following the exit signs out of chicago. what's going on?

>> well, seriously, here neil take a look out the window that's the sign towards chicago. i'll take that one but you can see nobody on that exit. most of the people headed out. most people headed out today are headed out because, well, because it's memorial day weekend and they're headed out of town they will be back but a lot of people haven't come back in fact if you look at the top 20 major u.s. cities chicago is the only one last year that lost population and you say why is that? well, some do with taxes, we think, and fears about what's happening down the road with pension shortfalls, the states a mess. where are they going by the way? well curiously enough, five of the biggest cities that are getting more residents are actually in texas, so maybe there are all these trying to

turn some states red from blue. in addition to i think, neil, the taxes i think there's also an issue about crime in chicago. this is widely the murder capitol of america and i'd point out just as a point of order because i love chicago i will say that i'm a little bias here. i raised my family here, i live here. chicago just so that we're clear on murder cap it to is actually the ninth worst city when it comes to murder rate. st. louis is well ahead as well as baltimore and six other cities, so the problems in the city are concentrated in the south and west side and curious ly enough i leave you with this, neil. they're saying that as people leave, the people that are leaving namely are from those neighborhoods, african americans and not as many immigrants moving in.

actually the people moving to chicago tend to be millennials and they also tend to be folks with more wealth, so go figure that one. i don't know, maybe enough people here with wealth they can tax them more and deal with some of the deficits. neil? neil: do the people driving by you know that you're doing a tv report or are they just see this guy like talking to himself? >> well let's see let's see from this guy here? hey? hey how are you? how's it going? good to see you. i don't know. neil: okay. >> i'm not sure what they were thinking there. neil: i notice you were defend ing chicago a little bit but you're leaving chicago yourself. right now you're driving out. >> i'll be back. neil: oh, okay. i got that. very cool. i like that, guy next to you, the camera in front. it's concentrated on the road my friend very good seeing you have a safe weekend. you know he could have done that story, you know, in a boring

standup in front of a green screen. he put himself in danger getting in that car and getting people driving by him and laughing at him all for you. you're welcome, america. >> [laughter] ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪

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>> got possibly some good news on the korea summit where it may , if we can pull it off may have it back on even. our president just sent out a note about that a few moments ago. neil: all right, secretary mattis saying that the u.s. north korean summit may be back on after all, to the washington examiner staff writer , phil how serious is that >> well i think that what we saw earlier was that president trump is willing to walk away from the table. this is something that you need to be able to do when it comes to negotiating and if you do a close reading of the letter they

sent to the north koreans something very important was there. president trump said that kim jong-un should not hesitate to reach out if he wanted to continue the dialogue. i think what this shows the north koreans is is that they to be on their best behavior and if not we're willing to walk away. neil: do you think we would? do you think there's any danger for us in walking away? >> well certainly any time you're dealing with an irrational actor like north korea when they start to come to the table, when they start acting rational, you want to take advantage of that but -- neil: but that'll never happen in this case if you're waiting for them to be rational, it'll never happen. >> very true, i mean we've seen this for decades they are irrational hermit kingdom, but they are self-interested and right now, they want that meeting much more than the united states, and i think that if you can get a little bit of good behavior out of them you've got to take it when you can. neil: the overtures were vague on the part of north koreans it wasn't like just saying hey,

we're open to this. what did you make of their response to the point open. >> well, everything that north korean regime is doing right now is signaling to the rest of the world they're trying to tell the globe that they're not this middling power they want a seat at the table and want people to take them seriously and i couldn't help but laugh when we saw kim jong-un walking around touring those bridges in his like summer sunday best but i think what they are trying to do is act like they belong here. they are trying to make it look like this is something that happens to them on the regular and i think behind closed doors though they have to be very terrified because if trump does walk away, they're not getting another chance on this. neil: he's the best shot they have but he's also indicated that he wants a denuclearized peninsula. they have a very different definition of denuclearized including how quickly you go about that. what is the big sticking point when they sit down, if they sit

down. >> so like you said, their definition of denuclearization is much different and i think they're going to try and push that definition in a way that might not be acceptable to the united states. we're not going to turn turn away from our south korean allies and leave them high and dry but i think there are marginal things, there are small concessions that can be made. it's a small photo op, but when you had both president moon and kim jong-un at the dmz actually talking to each other and they promise there was going to be a formal end to the ongoing korean war that's significant. also, we've seen that the trump adminitration was able to get wins when they brought back those hostages, so these are small, they're not denuclearization but they're trending the right way. neil: i don't know if this means anything but was reading somewhere that a number of media organizations and others who committed and booked hotels in singapore, the overwhelming majority have not been canceled,

so either they're betting that they don't have to do that or that their rooms are still paid for so what's the risk but what do you think of that? >> i think that what, we live in a fast, news cycle and if you aren't able to get in when you have an opportunity you're going to miss it. obviously what we've learned through this administration is that this is a president who changes his mind very quickly, this is a president who does foreign relations very differently than any of his predecessors this was donald trump who was a new york businessman selling condos not too long ago he has a very different style and frankly it's working right now. we have seen some positive signs i think that the press is just trying to make certain they don't get caught behind, so yeah keep the reservation open. neil: that's a very good overview thank you very much hope you have a good weekend. in the meantime harvey weinstein arrested processed and charged pleading not guilty $1 million bail to make sure he can still be outside with the rest of us, to criminal defense attorney

whitney bono, what happens now do you think whitney? whitney can you hear us? >> yes. neil: what happens now, what's the next step? >> oh, hi, neil. what happens now is that mr. weinstein has already said through his lawyer he's going to plead not guilty to these criminal charges so he's going to probably stand trial. i wouldn't expect at this point the prosecutors are going to work out a plea deal with him nor that he might be inclined to do so either. what we're going to see is a lengthy trial that includes a lot of these victims that are able to testify even though they're not victims in this particular trial because it's similar fact evidence to the allegations against him in this case. neil: now obviously there was initial concern he would be a flight risk he put up the $1 million bail, has to wear a device so they can keep track of him. do you think he's a flight risk? >> i do think he's a flight risk. i think that he has every reason in the world to try to flee at this point. they also had him surrender his

passport, however, so that's pretty standard in criminal proceedings where a defendant is a flight risk at least if they surrender their passport they have a very hard time getting out of the country at least by legal means so i do think he has a lot of reason to go but hopefully enough to keep him here to stand trial. neil: a lot of people saying this is the me too movement on steroids but there are very big distinctions in the charges against harvey weinstein and some of the other cases that popped up, right? >> well other criminal defense attorney it's kind of my worst nightmare but the truth is where there's smoke there's a fire and there is definitely a fire here. not only has he apparently and allegedly engaged in a lot of misconduct sexually with women but he's done so in a very specific manner where it involves his having them come to hotel rooms, having them come to his office, under the guides of conducting legitimate business with them and having them perform auditions there's a pattern in the way he does this, so i think that this is probably got some substance to it

although he is presumed innocent as a matter of law under our constitution and he has a right to stand trial and have a jury decide. >> well the difference between some of those cases severe as they are is the rape issue here on the number of occasions right >> that's correct and in this case, he can be prosecuted under new york law actually because there's allegations of forced come plodges or that he used physical force to rape these women and so even though some of these allegations are apparently as old as 2004 for the victims who he's charged with committing rape against in this case that he got arrested for and turned himself in for today, the prosecution can still go forward there's a pattern of him allegedly using a lot of force with these women where they're telling him no, i don't want to do this and physically forcing them to commit sexual acts with him. neil: but if they're more than a decade old, that's tough isn't it? i mean, his lawyer is going to claim why now, and where's the

proof? >> well, and his lawyer has every right to do so and certainly if i was his lawyer i would do the same but it's an issue in terms of the weight of the evidence. the law has set out in new york specifically does not provide for a statute of limitations which means prosecutors aren't able to prosecute something because its been too long. they don't have that in new york so for these particular charges at least so he can be prosecuted it's not a legal issue. certainly his lawyers could and should argue that the jury, these maybe are less credible there's going to be less evidence to substantiate these allegations because of the age of them and then it'll be up to a jury to decide. neil: and that would be something in a worse case scenario could land him in jail for decades right? >> it could land him in jail for i believe upwards of 25 years. it could be a minimum of five years if he's convicted of the charges that are circulating right now at least. he would be in prison for the

rest of his life. neil: i believe he's 66. whitney, thank you very very much. criminal defense attorney. >> thank you, neil. neil: we're keeping track of a couple things including the dow down about 91 points and oil a big reason because it is plummeting a little too late to benefit you at the pump this weekend and for the early summer travel season but it just keeps up maybe soon, after this.

>> whatever benefit working families might have seen from trump's tax scam, for the rich is being wiped out by the gas prices that president trump is responsible for. neil: how is, anyway, democratic senator chuck schumer saying the president's iran decision is to blame for the rising gas prices. oil itself is down today but if you follow that it doesn't quite follow logic anyway nicole petallides on what has oil dropping today she's at the new

york stock exchange. what is it? nicole: we can obviously stick to the facts and we can see clear as day that oil is pulling back in a big way, it's down 4.25% at 67.71 dropping three, after it was at recent highs but when we're seeing it today there's concerns opec, russia, saudi arabia will once again lift their production output levels and be able to produce a little bit more and that would put more supply out on the table and that's why you see the sell-off. there were concerns about disruptions from iran or venezuela but this is the type of story we follow on a regular basis looking at what's happening with energy stocks sell-off across-the-board chevron down 4% chesapeake down 8%, exxon-mobile you can see that is down 2.2% and bp are also continuing to follow, in fact for the weak, halliburton, schlumberger, oil is down four days in a row so we have seen selling for oil and coming off those recent highs of more than

$72 but big picture the s&p index which is down for energy in particular is having its biggest one day decline since february. neil? neil: all right, so not exactly donald trump, thank you very much nicole petallides. nicole: not at all. neil: meanwhile a new deal on zte it's possible charlie gasparino has been following this over whether this rescue or seems like an apparent rescue to keep it alive, the chinese telecom concern might be getting it right? charlie: i want to make one point he was right about trump being responsible for the higher gas prices but not for the reasons why he said, trump's economic policy the tax cut, spurred economic activity that usually causes higher oil & gas prices they trade on the commodities exchange. they trade-off macro economic -- neil: write this down as you credited the president. charlie: well, you know, this is called fair and balanced who made up that line? neil: i don't know. charlie: but anyway, we now know that at least you've got to see

the fine detail and i want to see it done before we say it's done. the administration is clearly signaling they have some deal with china over this massive conglomerate telecommunications conglomerate zte. now just hope people understand what zte is. it has been a criminal company for many years through the obama administration, stealing our secrets, basically doing very bad things, the obama administration did nothing trump adminitration took some action, wilbur ross initially put sanctions on him when they violated the sanctions then he hit the nuclear button and basically put him out of business by saying no u.s. company could sell any part since the trade talks came it looks like the trump adminitration got wobbly and basically turned around and donald trump said we're going to cut some deal which should be announced where we allow them to stay in business they might have to pay some fines and this was all hunky dory because he and the chinese are fast friends

trying to work out a deal. okay here is what we know behind the scenes. this has not been a straight line process. from what i understand, before as this thing is being worked through the administration, there was hand-to-hand combat among trump adminitration officials on whether this we should cave to xi to the chinese and basically take off many of the sanctions against them, allow them to operate. who was involved in that the? you had mnuchin and surprisingly wilbur ross on one end saying let's go for the sort of weak approach. neil: the treasury secretary of commerce right? charlie: right you had some of the trade guys saying no no no we should make this a marker, a line in the sand these guys are bad put him out of business this shows you that we're tough on china. that would be robert lightheuser and peter navarro, i guess you could say a senior economist involved in trade issues at the white house and in the end it was wilbur and

somehow, mnuchin the way i understood it, convinced trump that he can use zte as some sort of bargaining chip. neil: has he? is that what the other shoe to drop here that's what's going to happen? charlie: hopefully and we don't know yet. neil: because i should pass along here, marco rubio not a fan, the florida senator tweet ing yes, they have a deal in mind referring to zte it's a great deal for zte and china, china crushes u.s. companies with no mercy and use these telecom companies to spy and steal from us and many hoped this time would be different and now congress will need to act. charlie: clearly administration officials from my reporting today are worried about how congress is going to act. here is the weird thing about the trump trade policy. i said before the economic policy is good in large respect trade has been weird. he's in favor of tariffs which most people say is bad. they tariff you, we tariff them. neil: we'll have to get to the other side to do something. charlie: it almost doesn't.

just historically. the one thing most people agree on is if you find a chinese company doing criminal activity like zte you should take very punitive measures particularly in this case and put them out of business everybody agrees with that and it locks like trump is actually willing like a criminal actor, and they committed crimes according to the commerce department. let them go free have another bite at the apple, while engaging in tariffs which is pretty absurd and i think that's one of the big problems with the trump trade policy. it's almost sort of schizophrenic. neil: but imagine if it works though, you never implement them but it gets them to blink or do something on trade that's never been done. charlie: what? neil: i don't know. charlie: they haven't agreed to anything. after all these weeks. neil: it's the beginning you started out saying -- charlie: well i try. listen i'm calling this is kind of like absurd trade policy. neil: you seem very agitated. charlie: that's a zte phone. neil: it is not a zte phone.

although they are big phones. charlie: and by the way they have listening devices on there so wherever you go whenever you talk about people the chinese are listening to you. neil: of what this could say about what i said about you. could i ask you, you said some interesting things, michael cohen the president's personal lawyer is shopping around i guess? charlie: i did kind of a deep dive into his business problems since he's become major news, and you came out that he's the president's personal lawyer, i've known michael for a long time. he was behind the stormy daniels payment that led into a federal criminal investigation into his business activities and other issues. that has had an impact on his business life obviously, a lot of companies don't want to do business with him, he was doing business with at&t and novartis they don't want to touch him any more. i also found out in looking at this, people knew he was pitch ing a book deal but i found out that the book deal was essentially pulled and it was a $500,000 offer looking for a million he got a half million

out of a conservative imprint and this thing died amid the stormy daniels brew haha. neil: you'd think it would promote interest. charlie: but listen nobody knows exactly why, he has told people, michael has, he has too much work on his hands, for obvious reasons and i've heard the white house put the clamps on it. this is not the right time, remember he was trump's personal lawyer and some degree of confidentiality and you know, i do know it's interesting one of the publishers actually underbid putting kind of a weak bid because they were worried when this first happened and the bids came in around february, that it would lead to possible charges against michael cohen so the publishing house might have had an issue as well. neil: you talk about advances that were offered and so this was the time there would be much o interest right? charlie: it began in february. neil: okay. charlie: by the end of february from what i understand the deal was essentially off.

the exact reason for that, i can't tell you i can just tell you that michael was telling people it was an issue that he had too much work. we've also heard that the white house had a huge problem with this and the publishing house, you know, could have pulled the plug too and said now is not the right time. you have an issue here. a legal issue. just remember it was supposed to be a positive book about working for trump. think about this michael cohen is under criminal investigation. there is a potential and it's clearly more than theoretical he could be indicted. why would you want to, why would hashette spend 500 grand on a book written by some guy that's positive about trump that's about to be indicted, if he does get indicted so that's all, i'm not saying he is and by the way he claims he's innocent he's hired a very capable criminal attorney, you know, that is going to fight hard for him. i get no joy out of reporting about this because the times that i've met the guy i actually

think he's okay, but the story i have and it's on foxbusiness.com does get into what it's like if you're a businessman to be coming under all this pressure take out whether he's innocent or guilty. this has a business impact that's a family impact has an impact on your bottom line and i get into a lot of this stuff on the dot com story. neil: this leads me to what charlie gasparino does on this big weekend are you going to see the hans solo movie? charlie: no i don't go to the movies neil: you don't? charlie: no i live up in roaten. i have a house up there, i don't live up there, but there's a martini party tonight. neil: really? charlie: where we go on the holiday weekend every year it's fun and we're going to be my wife and i and a bunch of other people are drinking vodka on the beach. neil: really? charlie: yes. neil: so you're not going to see the solo move any charlie: no.

you know, i like the first star wars. neil: the first one came out 41 years ago today. charlie: i remember watching it with my parents it was like the greatest thing in the world. neil: movies haven't advanced one ioda since then. charlie: i watch sports, i watch reruns of cavuto. i do. by the way i watch reruns of you all the time. remember the bruce jenner moment neil: that'll be enough. charlie: [laughter] neil: but do you think like you talked about the economy in the beginning and then what schumer was saying. these rising gas prices and ris ing interest rates really at the core dropped back to that an improving economy right? charlie: yes and depends on how much if they rise too much what happens the way that the invisible hand works theoretically if interest rates rise too much gas prices rise too much it slows the economy, prevents inflation and then they come down. neil: all right charlie: so

that's the way the invisible hand is supposed to work. obviously, the real problem with trump i think is the trade stuff that could snuff out economics. neil: you don't know. charlie: you're giving the benefit of the doubt. did you get a call from somebody [laughter] neil: it's a limo that pulls up. charlie: after that common sense [laughter] by the way that was one of the best monologues i've ever heard. i'm not a never trumper. it's a deal you have to be like you want to break bread with liberals. neil: no. charlie: that's the problem, right? neil: well i do want to follow you to restaurants though because you know the best ones. all right, we have a lot more here with the dow down 87 points we mentioned this solo movie coming out and i'm telling you, it's getting a lot of buzz but i don't think the buzz that maybe the movie makers want after this how do you win at business?

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gangster, putting together a crew. i'm a driver and i'm a flier. i've waited a long time for a shot like this. >> what do you think? oh, what do you know? neil: all right, i don't know how it's going to go for the rest of the weekend but solo has apparently had the lowest thursday opening for disney star wars film, well, ever among those films. apparently there are a lot of them 700 of them so this is not a good start, to co-founder kevin mcafter think as thursday goes so goes the rest of the weekend that could be a problem kevin. >> yeah, good afternoon to you, neil thank you so much for having me on your show today. i've seen the film twice and i can get into the review but the big question is now are we feeling star wars fatigue? you've got to look at the number s of the disney film specifically the force awakened made over $2 billion the last

jedi made $1.3 billion worldwide by the way rogue one which is a spin-off movie made about a billion and this movie is expected to have the lowest opening domestically out of all of the four star wars from disney so far and the question is why and a lot has to do with the last jedi just came out five months ago people are already going off that movie that did not do as well as the force awakens so people are wondering is there too many star wars film happening also solo a star wars story is not being reviewed as highly as the other star wars films so far sitting somewhere near 70% right now on rotten tomatoes. the film is really passively fine and okay and entertaining and he's not impersonating harrison ford roughly 10 years prior to the events of new hope so he hasn't gotten that aerogance yet we see in the initial hans solo film in the new hope and we meet hans solo so to me it's definitely i think an element of fatigue and they just announced another star wars

spin-off but now we've got to wait about a year and a half for the next episode 9. neil: and i know they're very very different well the marvel films is competition with all of those films as well, right? >> yeah, 100%. it's a crowded marketplace right now, neil clearly you have avengers infinity war which made almost 1 point # billion dollars word wide deadpool 2 still crushing the box office, deadpool 2 and avengers infinity war are phenomenal films i gave both movies a 5/5 and solo 3.5/5 but you're dealing with these numbers and putting a star wars film out by the way this is interesting by the way this is the first of the four films in disney they've put in the summertime the last three the force awakens the last jedi as well as rogue one were all december releases so now this one kind of coming out in the middle of a very prouded summer with a lot of big films around

it. neil: i know you're the expert but as you know kevin i play one on tv. you know the problem with this franchies? people don't know whether it's a post-sequel, they can't keep up with them. back in time we're going ahead in time and i think a lot of people say the heck with it. >> it's an interesting point, neil it really is. i'm sorry? neil: just go ahead. okay, you like the movie but you didn't love it? >> yeah, i like the film but i did not love it, yes, sir. neil: okay we have a bit of a sound delay there that's my fault but kevin thank you very very much this could spell trouble if he's right on this and this doesn't do the numbers of course we're living in a world where we're making 14 million in a night isn't cutting it. that used to be a good weekend for them. not any more. a little more after this. [music playing] (vo) from day one,

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♪ neil: all right. just a reminder we are live tomorrow on cavuto live on fox news channel. looking at 10:00 a.m. with allegations this probe on the president, bob mueller probe has veered far and wide from its original intent. doesn't ken starr know it. ken starr, investigation of bill clinton went far and wide of an investigation then. why he did that. the lessons he learned from that, that could apply today.

special prosecutor from that era on to me, tomorrow to talk about this one. meantime the dow is down about 91 points. to trish regan to take you through the next busy hour. trish: indeed. i'm looking forward to that interview, neil is it on or is it off? secretary mattis and president trump indicating that the north korean summit may be back on. united states striking a deal with the chinese telecom company zte. i am trish regan, welcome, everyone to this edition of "the intelligence report." ♪ trish: president trim signaling today a summit with kim jong-un next month still might be possible after north korea says it is willing to sit down with the u.s. to