nato summit july 11th or 12th. kremlin says this meeting will not happen before the 11th or 12th. stuart: first kim, south korea's leader and putted tin and maybe xi too. neil. neil: thank you, stuart. we're following what looks like the longest losing streak in the making in better than 15 months. a lot of trade talk fueling that selling. but it is not as bad as you would think. the president is meeting with his cabinet on china, how to mete out these new tariffs. e will be new outlined tariffs. if the chinese so much think of responding in kind, additional tariffs on top of those tariffs. by now you heard the supreme court that states can force on-line retailers to collect sales tax. this has had interesting fallout in the financial markets here, especially for issues that were thought originally to get hit like amazon, well off the low of the day.

hitting players of much smaller scale. hillary vaughn following it all in washington. reporter: hey, neil. online shopping just got more expensive for shoppers and online retailers. the supreme court tossed out a law that prevented states from collecting sales tax out on it state internet purchases. court voted 5-4 that the current rules are unsound and incorrect. under the current law business shipping a product to another place where it does not have a physical presence, store, office, warehouse are not forced to collect the sales tax from their customer but now under this ruling they will. states argue they are missing out on billions in tax revenue. the government accountability office estimates state and local governments could gain eight billion to $13 billion every year if they required a internet sales tax. brick-and-mortar stores like walmart champion the change. they say the current rules put them at disadvantage. they have to charge sales tax even when their customers order

from their online store. the court bought it. the case will hit online retailers like wayfair, etsy, overstock.com especially hard. the ruling is limited to large online retailers and confirms small businesses are clearly viewed differently by the court. now is the time for congress to provide clear tax rules with a strong, small business exemption. wayfair also weighing in saying in a statement, wayfair collects and submits sales tax on 80% of our order. that number continues to grow as we expand our logistic footprint. we do not expect today's decision have any noticeable impact on our business as it may on retailers who do not collect and remit sales tax. amazon not commenting on the ruling now. the decision won't hit them nearly as hard as other

retailers because they pay sales tax in 45 other states. companies like etsy are figuring out how toandle this. they have individual sellers using their platform to connect with customers. they need to figure out if they push the responsibility to figure out state tax law to the vendors, or if they take on that responsibility to figure it out for themselves. this should go into effect, neil, likely over next several months. south dakota to be the first state to be charging. this is big victory for states. it is much easier for them now to expand their tax base. neil. neil: i think a lot of them are send ising money without getting on their hot hand. thank you very much, hillary vaughn. amazon was ahead of the curve establishing operations in 45 out of 50 states. it has kind of operations, kind of operations in three additional states here. i will get into that in a bit. suffice it to say the thought it would damage amazon might be premature, because it has been preparing for this day. the stock which is down as much

as 30 bucks. hard to say where this goes. not hard to say, a lot of states, municipalities are figuring how much money will come from t they're committed to spending it. so much for their fiscal resolve. what about the overall impact on this? look at it with market watcher jonathan hoenig. arles payne. what do you think? >> i think this is, again, to your point, amazon has been preparing for this. you know internet for them, is not just sales tax. it is convenience. neil: right. >> would you go to a mall if you could have a drone bring you the item you houred an hour earlier? they have a whole business different model. hillary vaughn was right with respect to the smaller entities. i'll really concerned about them. what this ruling does build a moat on amazons of the world. they stop smaller followings getting involved and growing their business. i think etsy's plea to congress

put some rules of the road in here are probably really smart. having said that this is great news for the brick-and-mortar names who are getting it right, getting right combination. macy's is an example of a company recently put out earnings report sgested ty were learning how to use their brick-and-mortar locations along with the internet to turn back the damage that amazon has done. fair, that stock gotrushed to e lower 60s when amazon said they wereetting into furniture business. as you saw on the screen, it is $115 stock. all the businesses are morph being and turning their business. one of the businesses is kroger. kroger was suppose toed annihilated with amazon and whole foods and costco and others, walmart. they are learning how to do it. their stock is up very big today. so it is a bump in the road to be sure but i do hope they get

the rules of the road better for small business, mom, pop, small entrepreneurs want to get into the industry. neil: what do you think, jonathan? >> the winners here are the accountants. they will have to figure out all the new rules and the states. as charles and you mentioned, we're talking about billions of dollars the states will get to have in their greedy little paws on and spend and mismanage. as charles alluded to real users are nottettecy or marketplaces but individuals that sell on them. these are minority, women-owned small businesses operated out of people's homes where they sell, 2, 3, $4,000 worth of merchandise in other states. they will be charged with collecting that tax. that is burden on small people who are trying to make couple bucks on the side. that is what the internet benefited and that is where the new ruling will hurt the most. neil: forget about taxpayers in general.

i'm not here to debate that or whether others had a free ride prior to this decision, but you know, charles, i think it's a lot easier for state governments and our state in new jersey, a lot easier to spend money than even talk about reining it in. you get revenues, manna from heaven so to speak where you don't have to exert any displain because you have got money coming in. for tax payers in those states, residents in those states, what else is new? >> you're right. jonathan is right. etsy raised prices on individuals that use that platform that will be a double-whammy for them. according to one estimate these states could have collected almost $14 billion last year. so it's a huge honey pot. they will squander it. they will ruin it. add on to that, by the way, tax proposals we're seeing, neil, taxes on uber-s, taxes on airbnb. these guys, ronald reagan, anything that moves or doesn't move, they are taxing it to death. it is a frightening prospect in

respect because all it does keep bigger players big and pushes away competition. it keeps smaller individual consumers really in trouble. i think jonathan is 100% right. neil: i wonder then if we're looking at big online players, if we step back from this, guys, jonathan, if you can weigh on this, whether it would affect shoppers period? if you're on a site, any one of these sites, all of sudden you discover there is additional tax or sales tax to represent your state and final page when you get to you know your purchase price, other taxes related to that, you see the sales tax added for your state, whether that would make you think twice about that purchase? i think most people, if they're that far along, they say, what the heck? >> yeah. neil, they won't grin and bear it but they will bear it. it has tremendous impact on the

economy writ at large. it is often talked about what is not even when it comes to taxes and regulation. that is the real detriment and loss. we're talking about small business people. people buy 10% of their goods online. when this law wasassed in 1992, that measure was zero. who will be hurt? ultimately consumers who pay taxes and sma business people, that work out of their home, sell on etsy, sell on ebay. they are ones collecting the tax, hurts them, hurt who is paying it. who does it help? pensioneers. the state pensioneers will collect money and send it out the door. their mismanagement will be paid for. neil: charles, i look at worrisome sign maybe consumer spending would be affected or slowed when it hit its sweet spot. you say what? >> i don't think it will affect consumer spending per se. more on the entrepreneurial i'm concerned about. i think jonathan is right and

you're right. by the time you get to the final page, you get to the sales tax and everybody knows they're charging sales tax, you probably hit the button because of convenience particularly because of amazon, well-oil machines get the product to you in very convenient manner. the entrepreneurial side, sets up a moat around big businesses already established. i like toee competition. competition got us here in the first place. by the way to jonathan's point also, this is ruling against mail-order catalogs originally. we were seeing internet flourish without these issues. of course now, they will still flourish but the bigger names have a distinct advantage. neil: thank you both very much. we'll see initial knee-jerk response of the markets was to fall off on this retail issues were affected but they are more focused on trade that could turn into a war and tit-for-tat from

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major german carmakers, whether they have a presence in the u.s. or not, they will feel the pinch. something has to be done. they offered to voluntarily take out all tariffs in germany, all surtaxes on cars, avoid what they say could be bad news and bad profit numbers for everyone and anyone. the tip, amid a tiff that escalate quickly, greg i'm. what do you make of all this? >> that is what a trade war looks like. we hit them with tariffs and they hit us back. we're seeing it with pork and soybeans and we're seeing with german-made cars here in the united states and more are coming. we've only seen first round of european tariffs kick into effect. those from canada will come through, before we say this is terrible, ask yourself what is the strategy here? the theory of trump administration, threaten

tariffs, impose tariffs, that brings them the negotiating table, we get a good deal out of it. it may happen but has it yet. instead after equalibrium where people bring barriers down wre lurching into the bad equalibrium where things go up that. is what is bothering the markets. neil: president had a pretty raucous speech in minnesota, we're the economic giant, we're in a position of strength here, they need us a lot more than we need them. we're in position of power, we hold the cards, et cetera, et cetera. that is how he is playing this. what do you think? >> it is true. the united states is a big dog in the room. other countries need us militarily, economically, more than we need them. to say we need them less doesn't mean we don't need them at all. the very nature of trade, whether between you and your neighbor, both sides benefit. imposing measures that cut down trade between the united states and other countries americans will lose.

if you look at the collateral damage already occurred, trump badly wants a smaller u.s. trade deficit. that is seems how he measures these things. economists disagree. take them at face value for now. what he has basically done, first of all the tax cut has surc.s. gwth and that is pushing the dollar up. look at canada, mexico, their currencies have fallen because of the trade war with the united states. it is pretty good bet that the u.s. will sell less to those countries as a result of this trade war. i think because the tactics have not been done in a very, sort of like, well-thought outanner we could end up with rules tt go contrary to where the president wants them to go. neil: do you think this will get out of control? >> that is a good question, neil. if you asked me that three months ago, i would say absolutely not. now i would still say no but perhaps with little less conviction. i take comfort from the fact that both sides ultimately realize their best interests we don't have a trade war. i think it is interesting, for example, that china was very

quick to release a list of products it would hit in response to trump's first round of tariffs. they haven't done so in response to the second round. neil: exactly right. >> that speaks to me about the desire of the chinese leadership to talk about this. china's economy is not in great shape. too dependent on debt. they need exports to wane themselves off debt. they would like an answer. trump administration needs to get its act together. the fact that the united states has leverage and use the leverage shrewdly. neil: i agree with you about that. i think the fact they didn't follow up with tit-for-tat tariffs of their own on latest is interesting. thank you, greg, always good having. >> you thank you, neil. neil: as greg and i were speaking here, bring your attention the first lady is at the border. melania trump we're told, do we have video of that? she is at the border right now. she weighed in on this, children and parent crisis where they were separated along with the

likes of laura bush and former president bill clinton and many others. we're told that it was her concern that might have changed the president's mind to take executive action he did. i do not know whether she will be making remarks. certainly looks like that. when she does, we will take you there. global automaker ceo joins us on this auto warning coming out of german carmakers, very worried this will backfire on them, certainly their profit numbers. more to the point, daimler indicating that. what did you make of that. >> neil, you and i have been having this conversation for months now. we talked about the fact that once we get into a tariff tit-for-tat, what will happen is, prices on american consumers will go up, the cost of automotive production in the united states will go up. also we'll invite retaliation from our trading partners. you know, i am concerned that we've gotten to the place i feared we'd be.

neil: so it is interesting that, i never thought of it this way, obviously dimer, a lot these guys, volvo, they have u.s. operations, so they would be directly impacted if all of sudden china goes after u.s. carmakers, et cetera, but even those that don't, or don't have as big of a presence as daimler were he can -- echoing similar sentiment, but it would boomerang and slow down? >> think about it for a second, this is an alabama company we're talking about here. let's step back. china, is our second largest automotive trade market. in other words, african today, we send more more u.s. build vehicles to china than any country on earth. we exported 267,000 u.s.-built finished vehicles to china. by the way we imported about 58,000.

we're enjoying a automotive trade surplus with china. that is really what is at stake. you have daimler that is exporting, bmw, general motors, tesla, many companies enjoying the opportunity to build cars and trucks here in the united states and export them to china. yes, there are very real consequences here. you know i heard senator wyden say yesterday, chaos has convince. maybe this is what he is referring to. neil: maybe i mix issues and i appreciate you indulge me, i appreciate that, we're looking melania trump at the border in texas. she will make remarks. she represents the president reversing position not waiting for congress to get involved, in this program where parents were separated at the border. some people say the president blinked, caved, i think these are comic book reactions to positions but some have looked

at this as a sign, if the president can move or adapt and change positions in a constructive way to move the ball forward, and as in this case on the immigration issue, there might be deemed hopeful signs on the trade front. what do you make of that? >> i certainly hope so. that is what we need is fewer barriers and lower tariffs. we need more trade and more trade agreements. and so that's the place we want to get to. we have got to engage with our european partners. you know, in your previous discussion with greg you talked about the fact that the eu has a 10% car tariff. we have a 2 1/2% car tariff and 25% pickup tariff, right? so let's get to the negotiating table and resolve those things. let's align our regulations, make sure we can trade more, that we have more opportunities for exports. so i am hopeful we can get back to that discussion. but i'm not sure that the tariff

path leads us there. i think it creates a lot of collateral damage in the meantime. neil: john, thank you very much. very good seeing you again. let you know what is going on at the border right now melania trump is in mcallen, texas. she is visiting a hhs facility right now. she might come to the microphones there and address those volunteering, working not only with children but their parents. let's listen in. >> good morning. everybody my name is curt, it is privilege for me to serve as chief executive up bring. up brink is 36-year-old faith-inspired organization. our mission in the state of texas and louisiana, is break the cycle of child abuse by empowering children, families and communities. new hope is a very important part of our mission, and similar

to some of the children that we care for at our residential treatment center, our foster homes who may have been removed for opioid addiction, these children come from a very difficult journey. and our staff here are committed to providing them with case management services, they're committed to education, they're committed to providing everything a child needs in order to be successful. one of the, what we have experienced, mrs. trump, is, that we have evidence to demonstrate for any child to be successful, whether your child or my child in texas or a child here in new hope, we need to surround them what we all at upbringing the five markers of success. that is safety. safety's first. life skills, and health, health would be emotional help, spiritual health and as well as physical health.

education, you see our charter school. vocation, so that every child has opportunity to live out his or her hope. we appreciate you and secretary azar to be here today. we're honored to show you our shelter. it is a shelter that currently cares for 58 children, children who come from very difficult journeys. we treat them like our own children. so with that, i'm going to allow the secretary of course to say a few words and introduce our special guests. >> dr. sensky and roy, as program director here and all of thank you so much for welcoming us here. i just wanted you to know how very grateful we are at the department of health and human services what upbring does for the children. we're glad to hear more about it and sense of passion and mission what you do. we're privileged to be with you and i'm just delighted that the first lady is spending today with us and will get to meet

your children and meet you and hear from you. so thank you very much. mrs. trump, turn it over to you. >> thank you so much for having me here today. i'm glad i'm here and looking forward to seeing the children but first of all, let me begin to recognize each of you and thanking you for all that you do, for your heroic work, that you do every day, and what you do for those children. we all know they're here without their families and i want to thank you for your hard work, your compassion and your kindness you are giving them in this difficult time. i'm here to learn about your facility and which i know you have children on a long-term basis. and i also like to ask you how i

can help to these children, to reunite with their families in -- [inaudible]. thank you again for all that you do and, thank you as well. thank you all for what you do. thank you very much. and -- say a few word. >> absolutely. thank you doctor, first lady, for being here. what we'll do now, is everyone around the table here can introduce themselves and give a brief role of what it is that y'all do with your agencies. start -- >> brian harrison. deputy chief of staff to secretary azar, department of health and human services. >> manuel padilla, jr. patrol age sent for u.s. border patrol. in our role. we're the first to encounter

many unaccompanied children that come to our country. >> good morning. my name is maggie wynn. i work with secretary azar and work with the program that funds shelters. >> good morning. i'm lead clinician here, we provide all the mental health services and support while they're in their journey, upon their reunification. >> i'm the lead case manager here. our, my role here is rue unification. -- reunicati. >> i'm the shelter unit manager. i take care of everyday operations with the children. >> good morning. i'm the medical care coordinator for upbring and new hope. we do health screenings for each unique health children. >> hello. good morning. my name is -- i'm lead teacher aide. i make sure the kids give the best education we can give them so they have a successful life.

>> hello. good morning. i am with hhs and i work with the program in reviewing the cases for the children that will be reunified with their family members. >> my name is hoe shea gonzalez. i'm the field specialist for division of unaccompanied children operations. nice to meet you. >> nice to meet you. i thank you so much. i heard you have 58 children here. >> 55. >> 55. -- with the number. >> three of them already reunited with the families. those children, how many times they speak with their relatives or families per week, for example? >> well the children are al how to communicate with their family twice a week. they get a phone call. first we have to insure that the persons that they're contacting are families indeed their families. so there is a process. we have to follow all of our

policies and regulations, make sure we identify, postively identify the persons they're communicating with are indeed their family. could be verification of birth certificates, photo identification. we communicate with their families. >> so when the children come here, what kind of stage, physical, mental states they come here? so what would you say is the percentage of those that come here? >> well -- >> clinician. >> the great majority, higher percentage rate. usually when they get here they're distraught in the sense they don't know where they're at. they're thinking they will continue in the process of processing them. when they see the environment. they see the other kid and the yard they start relaxing. the first 24 hours are crucial for us, making sure we get them basic needs, showers, clothing,

food. before we even start to assess. within the 24 hours our unit shelter manager is in charge of doing a brief update as to what is going on with them. that way we can address it immediately. then eventually every department takes a turn to be able to assess the needs of the kids. it is a process, yes. >> i heard they are very happy and love to study, love to go to school? >> absolutely. the children first get her, get a process. they go through orientation. they go through 24 initial undertaking. we get as much information we possibly can from the children, again to assess and make sure that we're not missing anything. if there is any immediate medical need that is immediately addressed, there is immediate mental health issue or severe issue we bring in clinicians and

take it from there. after they do an orientation, they go through several orientations. they go through the shelter. they will go through case management, orientation. they will go through clinical orientation. they will get, understanding of their current placement. again, this is to inform them, and keep them as calm as possible. and to reassure them, that they are in a safe place, that they will be well-taken care of here. that they don't have anything to worry about. they're in a safe environment, free from abuse. and then every day is something new with the children. we provided a lot of structure here, during the monday and friday schedule. they do attend class. we try to educate them, a simulate them, what the public school education system will be

like. so we also integrate recreation activities. of the spiritual care for the children. down time for them. this is their home. we are referred to as shelters but this is really a home for the children. their bedrooms are their bedrooms. as you will see. you will see the -- hear them giggle it is fantastic. i, the staff that we have here, we just have a tremendous passion for working with these children. we see them as if they were were our own. again, we do maintain boundaries and we do part of all of our policies and guidelines but, you know, just passion that is there in working with these children,

insuring that they're safe ultimately reunifying them. >> how long will the time, max time that they spend here are reunited with the family? >> right now we are averaging currently 42 to 45 days. so it is not an extended stay and we're always following our policies and procedures and guidelines as part of reunify kegs is concerned with the children. -- reunification. the average stay is 42 to 45 days. >> first lady, there is some occasion where some children do not have anybody to go back to and then those situations they are further assessed by the legal service providers, that can help if they qualify for some kind of legal relief. some children will eventually move on to refugee status, not

accompanied children. it is few and par between, we do have the process, whose families have been killed, murdered, different, very tragic situations. couple of children today, you will see that, that there is not hope for them to go back to a country that they're leaving. we have variety of spectrum. we have kids come into custody and reunified rather quickly if everything is in order. some children unfortunately and foately stay in the system for number of years till they qualify for refugee status with other sister program with the refugee minor children. >> are these children, most of them come here alone, without parents? fa. >> the majority of our children,

yes, ma'am. they are unaccompanied and were detained by dhs and border patrol, with the majority. that is a big part of who we are and who we work with. >> because there are between two and seven years old, right? they kind of understand, they know where they are? >> yes, ma'am. >> they're not young, young? >> yes, ma'am. that's correct. >> do you have the capability to take care of younger children here, younger than 12? >> our license, state license, does allow to us take children up, as young as six but for current zen sus right now, they asked us to stay within the 12 to 17 range. >> mr. secretary, often times we'll play younger children in foster homes. >> could you explain that process, how you do that? >> sure, sure. so at the time of detention or apprehension we work very

closely where you parters in over at homeland security, they identify young children, zero to five years old. we have a serious of network of foster homes thought the united states that are licensed in that particular state to work with children from zero to five years old. and it's a family setting, that these kid work in. the same standard applies. we assess them for any medical need, or, any serious complication where we may have to use doctors, hospitals, in that situation because we get every type of child in our custody. somebody who is non-mobile, non-verbal, to you know, somebody whose mom may have perished in the rio grande here in texas. so those kind of kids are taken care of very special,

circumstances and they are throughout the united states also. >> we at upbring have foster care programs in corp. russ chris at this and el paso. currently serving 100 children in the program. >> thank you so much. i'm looking forward to making the visit to tour the facility. so, thank you very much, again all for what you do. thank you. >> what we'll do now is -- [inaudible] [inaudible conversations] neil: you've been watching, we'll continue to monitor this, something remarkable in mcallen, texas. this is holding facility for a lot of these kids. they're not just kids, 12 to 17, who were once separated with

their parents are sent here for food, support, sleeping accomodations. the first lady had wanted to see this herself. remember she was very concerned, we're told just coming across as a mom, for the plight of these kid who were separated from their parents, whatever the policy, whether it was legal or not. and seen obviously these reports on tv, showing screaming and obviously confused children and wanted to see forerself what one of these facilities is like. this is one of the better-known ones along the border here in mcallen, texas. the first lady was very instrumental we're told with the president, some saying changing his mind, others saying blinking, adjusting to reality, getting no help from congress on this issue, take matters in his own hand, stopping policy of separating children from their parents in the border. the director said anywhere can stay from 40 to 45 days before

they are reunited with their parents, if they are reunited with their parents. it is an indication the first lady wanted to see this to herself. she decided to go on her own to this facility. let's see if we get audio. >> they keep up with the rules. >> yes. >> we do have simple philosophy. for most part children maintain their rooms. they have ownership while they're here, this is my bed? they never had a bed before. absolutely. this is your bed while you're here. >> one of our few complaint we get from them is the air-conditioning. they think it is cold in here. >> [inaudible] >> something you don't think about. >> absolutely. >> they -- [inaudible] [inaudible conversations]. >> walk on over to another room

here, we can walk in. [inaudible] >> this gentleman here. neil: we'll go in and out of this. this is the first lady's attempt to understand, see for herself, what all the fuss and commotion is all about. speaking with mom, she didn't like what reports were showing kids, separated, screaming, crying from their kids at border. she wanted to know how we're handling this. this is policy jeff sessions implemented as attorney general, force an issue already stated to be law. technically that is not the case. this is the first administration to act on separating parents from their children. up until now when parents were brought to holding facilities with their children, there was no separation. they thought it was easier, even though you went to a detention facility or a jail, it was not

hospitable environment for children anyway. this is the first lady's attempt to understand what goes on here. are they abused or frantic or fraught with fear? the ones who run it particular facility that serves those age from 12 to 17, younger children can be serviced here as well. but that is the group that this caters to. ultimate say 40 to 45 days. the average was 42 to 45 days before reunited with their families. the policy, how would they be reunited with their families and which side of the border. that is something they hope to iron out in the house today, neither which addresses longer term housing kids with or without parents. they are addressing this do this piecemeal, provide fund for more facilities like that, avoid that all together by having constructive, substantive change in our policy at the border.

get read on all of this from "real clear politics" cofounder, bob, i'm sorry, tom bevin. what do you make of this? i think it is unusual to put it mildly, remarkable we're told by almost every indication this is something the first hadi wanted to do on her own? >> yeah it is remarkable and look, we heard that she pushed very hard behind the scenes, ivanka did as well. i think ultimately to have trump do an about-face. just the other day he was saying that they were going to stay strong. then he issued the executive order. i think medical medical was instrumental with that. for her to follow up with this visit. obviously i think, i think the piece was missing from the administration officials in general as they were going about defending the policy was the compassion piece. medical medical has clearly provided that melania providing that with this visit with trump's executive order. as far as implications in congress, it takes pressure off republicans.

not likely either one of these bills passed anyway. they will see whether the executive order can stand legally so takes the pressure off folks in congress to address the issue in more fulsome way. neil: it is interesting. you and i analyze things and issues with political i am -- implications. this is melania trump asking questions as a mom and ask questions a mom would ask. what are the children cared for? how are they sleeping? what are they eating? do they miss their parents. i'm -- i'm concerned about when they were reunited with their parents and questions a worried mom would ask. >> right. i'm sure she is doing this out of real concern and real passion for these kids. but obviously there's a political component to it. the fact it is on tv the fact people are talking about it. neil: i'm glad you mentioned it, these are the images fly in the

face of others that are haunting and memorable, that is not the standard operating procedure or the norm? >> it is a little crafted to talk about the issue in the terms of the political lens. up to now it was political pr disaster for the administration. only had terrible images of audios of kids crying and separated. there are alternate images here of a compassionate melania trump, sitting at border, looking, asking questions you just mentioned. and that benefits the administration from a political perspective obviously. neil: do you get a sense, melania trump, as i was saying at outset, i don't want to put words in her mouth or certainly yours, that she changed the president's position, she was instrumental enough to say what was going on here has to stop, and whatever justification used for it has got to stop? >> sure. i'm sure trump was hearing that from other people, but he hears that kind of stuff all the time.

typically he does not bow down to political pressure. he doesn't like it. he feels it is like a sign of weakness. melania coming in, saying this is bad. we need to do something. it is cruel. have ivanka coming in sayingou that, these are two of the central women in his life he listens to perhaps more than the other advisors. you put those two together, there was a pretty quick turnaround on this from where the administration was just a couple days ago to where we are today. neil: the issue is still going to be a front burner, lead story, i would imagine for the next few days. i could be wrong, but does this change that at all? >> i don't know. it does seem like we did reach sort of a tipping point here, this thing exploded over the past 72 hours let's say. will the executive order, will it help, sort of remove this from front page news. we have the votes coming up.

whether the legal part of it, whether it will stand or not. if it does stand, no matter, how fast news comes, could be next around the corner. the trump-kim summit was less than 10 days ago. it is amazing. who knows what is around the corner. for the time-being, the pressure is released, or hysteria surrounding issue because something got down. neil: thank you very much. tom bevan. let's go to melania trump, president of the united states at the white house. >> hello, everybody. thank you very much this is a cabinet meeting, plenty of things we need to discuss and tremendous success. we're working with immigration.

we have democrats don't want to approve anything. they think that is bad for the election coming up. unfortunately a lot of people are suffering. that's unfortunate. unrelated, before we get into that, the new employment claims recently out, just yesterday show that we have the lowest level in nearly half a century. that is something that is a incredible statistic. that half a century is a long time. the economy is booming. we're doing very well. we're renegotiating trade deals. we're doing very well in the trade deals, taking a little period of time. we put tariffs on, certain countries, certain industries where it has been very unfair to the united states our treasury taking in billions of dollars. these other countries coming along that did not treat us very

well and they are renegotiating very vigorously. lots of good things are happening. this should have been taken care of long before my administration came into being. for some reason 25, 30 years, nobody looked at trade deals. they are out of control, no matter how bad they are but we'll make them good. we'll make them fair for our country and whichever country we're dealing with and there are plenty of them. they are all bad. there is nothing good. my administration is also acting swiftly to address illegal immigration crisis on the southern border. loopholes supported by ex-troopist,pen border democrats. that's what they are, extremist, open boarder democrats. if you look at nancy pelosi, you look at chuck schumer, you will see tapes where they wanted to have borders, they needed borders for security just a short while ago, a number of years ago i see chuck schumer, we must have borders.

hillary clinton, we must have borders. if people penetrate our borders, we must get them out of our country. now all of a sudden they're big open border people. this is big con job. people are suffering because of the democrats. so we have created, they created, they let it happen a massive child smuggling industry. that is exactly what it has become. traffickers, if you think about this, human traffickers are making a fortune. it is a disgrace. these loopholes force the release of alien families and minors into the country when they illegally cross the border. since 2014 alone, nearly 200,000 unaccompanied alien minors have been released into the united states because of democrat-backed loopholes. catch-and-release is the worse. you catch them and release them.

might as well save time. don't bother them catching them. this is what we're stuck with. the worst immigration laws in the history of the world. the whole world is laughing at the united states and they have been for years. these alien minors were separated and sent all the way up here alone. but they really came up with coyotes. you know what a coyote is? not good. these are not good people. they were set up with human traffickers because the democrats supported policies allowed this to happen. democrats refuse to fund the personnel, the bed space, the resources that we need to house the minors. now they want us to take care of minors and that's fine but they don't want to give us the money to take care of them because, the worst everything looks, they think the better they are going to do with respect to the blue wave which is turning out frankly to be a red wave, if you look at polls. i think we'll have a red wave, not a blue wave.

so they want to us take care of bed space and resources and personnel and take everybody and, you know, like, let's run the most luck sure russ hotel -- luxurious hotel in the world for everybody but they don't want to give us the money. you can ask them about that. we have to house the minors and house them safely. frankly we have to house them and taking good care of them and returning them back home. that's what we have to do. every time we ask for resources the democrats say no. they say no to everything. they are obstructionists because they think it is good politically. i think it is bad politically. for them. we'll see. in addition democrat and court-ordered loopholes prevent family detention and lead to family separation no matter how you cut it. i signed a good executive order yesterday, but that is only limited.

no matter how you cut it leads to separation ultimately. i'm directing hhs is, dhs, doj, to work together to keep illegal immigrant families together during the immigration process and reunite these previously separated groups. but the only real solution is for congress to close the catch-and-release loopholes that have fueled the child smuggling industry. the democrats are causing tremendous damage and destruction and lives by not doing something about this. and they know that. they know that better than anybody up there with a pen. if we don't close these loopholes, there is no amount of money or personnel in the world to address the crisis. very serious crisis. been going on so long. this isn't the trump administration. you look back at 2014, during the obama administration, they have pictures that were so bad. they had a judge that said it

was inhumane the way they were treating children. take a look at some of the court rulings the obama administration. they talked inhumane treatment. i read them. i looked at them. they're all over the place, inhumane treatment. they were treating them terribly. we have a situation where some of these places are reeling running them well. i give a credit to secretary nielsen and all the people that have worked. it is nicest that people have seen. but still something that shouldn't be taking place. my wife, first lady, is down now at the border because it really bothered her to be looking at this and to seeing it as it bothered me, as it bothered everybody at this table. we're all bothered by it. but we need two to tango. we have 51 votes in the senate. we need 60 unfortunately because we have ridiculous filibuster rule. so we need 60.

and i think i will get for our five or six from senators running in states where i won by 25, 30, 40 points with mike. ihink we'll get six senators. maybe we'll get seven senators. that still doesn't get us to 60. there is nothing you can do to get there. people don't understand that. when we have the majority in the senate, we have majority by one but we need 10 votes. so we need 10 essentially, we need 1010 democrats. not going to get them, they're told by schumer and pelosi, don't do it. they want to see if they can seats. they don't care about the children. they don't care about injury, they don't care about anything. they don't care about the problems. all they do is say obstruct. they have no policies that are not good. they're not good politicians. all they have going is all they're good at is obstructing. they generally stick together.

i respect them for that. that is bit. their policies stink. they are no good. they have no ideas. they know nothing. the democrats. all they do is obstruct and stay together to make it impossible to take care of children an families and immigration. we should be able to make an immigration bill that can really solve the problem. this is one aspect of it. this is one very important but small aspect of it. we should be able to do a bill. i would invite them to come over to the white house anytime they want. this afternoon, would be good after the cabinet meeting would be good. they are invited officially. i will let you dot inviting. let the press do the inviting. we have to do something about immigration in this country. for 50 years, long before that it was a disaster. over the last tents, 25 years it has become worse. every time they write a rule or regulation it gets worse.

no country in the world is hering judges like that. they hire border people, that you can't come into the country. mexico, by the way is doing nothing for us, nothing. they have the strongest immigration laws. they can do whatever they want. they can keep people out of mexico. they have 2,000-mile journey up through mexico. they walk through mexico like walking through central park. it is ridiculous. mexico does nothing for us. so when people say, why are you being so tough with nafta, and i am being tough because it is a terrible deal for the united states. mexico is making $100 billion a year off us and the horrible nafta deal. i am being tough. one of the reasons i'm being tough, they encourage people, frankly, to walk through mexico and go into the united states, because they're drug traffickers, they're human traffickers, they're coyotes, and we're getting some real beauties. mexico is doing nothing for us

except taking our money and sending us drugs. doing nothing. they could solve this problem in two minutes, you wouldn't even have to do anything, but they don't do it. they talk a good game, but they don't do it. we'll see how that comes out, it will be very interesting to see. with that, i'll end by saying we had a tremendous success in north korea. we continue to work on that. mike pompeo has been fantastic. john bolton, working together with mike, has been fantastic. i don't even know where he is. thought he might have gone back to north korea. he spent so much time in north korea. surprised to see you here. i think i can speak for both of us in saying it's been an incredible experience. the relationship is very good. they've stopped the sending of missiles, including ballistic missiles.

they're destroying their engine site, they're blowing it up. they've already blown up one of their big test sites. it was actually four of their big test sites, and the big thing is it will be a total denuclearization, which has already started taking place, and i understand, mike, they've already sent back or are in the process of sending back the remains of our great heroes who died in north korea during the war, and that's already in the process of coming back. plus as you know, we got back our hostages, three hostages are right now living very happily with their families, and we're very happy about that. so we made tremendous progress with respect to north korea, even since i last spoke to you. what we agreed to do is have a meeting. i know if the media says, oh, they agreed to meet, anybody would have agreed to meet, and not have been possible for past

administrations to have met in the way we met. this was an incredible, important meeting all over asia. they're in love with the united states because of what we've done. and japan i spoke to prime minister abe. he's so thrilled. he doesn't have rockets going over japan. that makes him happy, general, he is thrilled not to see rockets going over japan. plenty of them sent over japan. and he said i want to thank you, there are no more rockets and there's no thought of it. things can change, i said it last night in the speech. things can change, personalities can change, maybe you end up with conflict, maybe you don't, but the relationship that mike has and i have with chairman kim and his group is a very good one, very strong one and i think it's going to lead to tremendous success. but the document we signed, if people actually read it to the public, you'd see number one statement, we will immediately begin total denuclearization of north korea.

nobody thought that would be possible. if you remember, a year and a half ago when mike and i came into office and when this group came into office, everybody was talking about there's going to be a war. going to be a war with north korea. during the obama ye that's all i heard about, war with north korea. you have 28 million people 30 miles away from the border where they have thousands of massive, they call them cannons, that's what they are, bigger than howitzers and they're all aimed at seoul. seoul has 28 million people, and it would be not a catastrophe of 100,000 people or 200,000. could this have been a catastrophe of 30, 40, 50 million people. and i think we're very close to having that situation solved. we've had some very good news over the last couple of days. they want to get it done, we want to get it done and we're moving quickly.

north korea has been an incredible experience for me. we're going to help them also get back on track. we think that it has tremendous potential. chairman kim thinks it has tremendous potential. i want to also thank, as you know, prime minister abe. i want to thank president moon from south korea. he's been terrific. he's been really moving it along and pushing as hard as they can. but without the united states it had no chance whatsoever. i also wanted to thank president xi of china because the border was very strong during a very critical period. unfortunately, the border is getting weaker now, but that's okay. that's okay. but we have to get him to keep it tough. but i do want to thank president xi of china. with all of that, we're having tremendous numbers, tremendous economic success. i think we're having the most successful period of time economically, perhaps in our

country's history. gdp numbers have been great, but the ones that are coming out, i'm really looking forward to seeing them. i think you're going to see numbers. i just see the activity, i see the business yesterday and last evening, that was an incredible evening that we spent. that was, to me, just an incredible evening. a lot of you were there. a lot of the faces, a lot of you were there, at least 15,000 people couldn't get into the arena, and the arena was big, it held 9,000 people, but sadly 15,000 people couldn't get into the arena. but it was a very special evening and people had a good time and heard a lot. i want to thank you all very much. mick mulvaney is doing a report, you can do it in front of the media. would the media like to hear mick mulvaney's report or find it extraordinarily boring and

not fit for camera. >> yes, please. >> would you like to hear it? >> yes. >> we'll say grace afterwards, mike, and we'll do mick and say grace, we don't necessarily have to do that after cameras. >>e it hard to make it not boring, mr. president. a lot of folks will have worked a long time, almost since you took over to show you, to get you where you are today at this meeting. i call that the drain the swamp cabinet meeting. we talked about that during the campaign, since you've been here. today, we're introducing the actual actions that follow up on those words, to show people what we meant when we said drain the swamp. later after the press leads, you will hear from andrew and mr. mcmahon and mr. hargan on the executive order dealing with civil service reform. what i want to talk about is the government reorganization, very, very briefly. when we got into this, one of the things we learned is it's been almost 100 years since

anybody organized t government at this type of scale. been since fdr and his new deal where he changed the way the government worked and we haven't changed it very much since then. which means we're almost 20% into the 21st century but dealing with a government that is from the early 20th century. this leads, mr. president, to some bizarre results. in fact, the stories, you don't know where to start. right now, because of the byzantine nature of the way we regulate in this country. if you have a cheese pizza, you make a cheese pizza, that is governed by the united states department of agriculture. no, the other way around. if you make a cheese pizza, it's governed by the food and drug administration. if you put a pepperoni on it, that's governed by the usda. if you have a chicken, it's governed by the usda. if the chicken lays an egg, governed by the fda. if you break the egg and make an omelette that is covered by

the fda. if you have an open-faced roast beef sandwich, that's one or the other, the bread on top of it, it's the other. one of my favorites, if you have a salt water fish, a salmon and it's in the ocean, it's governed by the department of commerce. once it swims up river, it's governed by the department of the interior and to get there it has to get up a fish ladder governed by the army corps of engineers. this is stupid. >> by the way, that was incredibly said. [laughter] >> i think you should put that on television. that was very -- very good. >> long time ago when i was 15 years old, i worked in a freezer for a guy who made frozen pizzas. put yourself in that guy's business, he's making cheese pizzas, another time pepperoni, he's dealing with other federal agencies. we're going to try and fix it.

scott, step aside to go over one or two. a couple of them have made the press. we talk about this later about the department of education and the department of labor being merged. we think that makes tremendous sense, what are they doing? doing the same thing. trying to get people ready for the workforce, sometimes education, sometimes vokational training, they're all doing the same training. put them in the same place. this goes to ivanka and early on job training, we don't know how many job training programs we have. some people think it's 40, some think it's 46, some think it's 47. we get it down to 16 and put it all in one place so if you're not happy or the next president is not happy with the way it's going. right now 16 different people around this table have workforce training programs in their agencies. if something is going wrong, you're going to come to me and say mick, why are you doing

that? it's scott pruitt's fault or betsy devos' fault. no, no, we're putting them responsible and making them accountable. two of my favorites examples of how we can improve things, everybody, democrats, republicans, local government, state government, you, me, from the private sector have horror stories about the army corps of engineers. they perform absolutely critical functions. over the course of the last century, role has continued to creep and creep and creep, and we can do better. a report for changes to the army corps of engineers. stuff is really defense and there are still things that the army corps does, they stay there, and they should. the things the army corps does to help defend the nation will stay there. a lot of what they do deals with the environment, they deal with environmental mitigation and so forth, that goes to the department of interior, because

y'all are good at that. similarly, ports, deep-water ports, lock system, used to be a military thing 100 years ago, now it's elaine chao at the transportation department. it's a much more efficient layout and talked about streamline our permits process and goes along with what mr. zinke is doing at the doi, you want to get a permit, you go to one federal agency. this is going to help that. down here, we talked about food safety, right now at fda, usda. moved that all to the usda. why? because they're good at it. not because the fda isn't, one place to get answers, to get results, permits and deal with regulatory affairs. at the same time, in all fairness and secretary purdue will tell you this, there are things the fda does with other agencies. a housing component, why wouldn't that be better off at

housing and urban development. move that to you hud. similarly they moved the food stamp, the snap program that makes no sense at all. hhs is uniquely set up to handle. that moved programs to hhs and have it centralized to deal with it. no one has tried at this scale, mr. president. president clinton tried a little bit, a couple other presidents tried it. no one has done it at this scale, and importantly, no one followed through on it. no one has given the time commitment that these people have given for the last year and a half. and no one came up with the ideas. the stuff president clinton came up with are peanuts compared to this. every time someone said this is great, it's never going to happen. doesn't have a chance. one of the biggest ideas the department of labor and education doesn't get involved in jurisdictional battles on

the hill. one committee handles those now. congress is ahead of us on that which is difficult to say. there's a chance we can get that done, if we don't get it done now, this is the generational kind of stuff you asked us to do when you came to office. when ronald reagan said that government wasn't the solution, it was the problem, it took 15 years after that for bill clinton to go on tv and say the age of big government is dead. this is a generational thing. is this going to happen overnight? no. some of the stuff we can do through regulatory fashion through the administrative process. other stuff takes longer but this is the stuff worth fighting for and won't get done until somebody takes the first steps. thanks for not only giving us the time to do this but the encouragement to say push harder, push harder, this is important to the president. this is what he talked about when he said drain the swamp. and we can show people that

voted for you and didn't vote for you that you care about big government. >> great job. and really terrific, actually. i want you to write down that one little anecdote. they should give a big report. i'd like to ask secretary of state, who has been incredible, mike pompeo to give additional update on north korea. so important. >> two things, mr. president, since june 12 now, a week and a day, we've made significant progress. importantly, not only our allies most directly affected with south korea, the japanese, the chinese, but a broader circle that i talked with the brits, the australians, talked with other europeans. each of them understands that we have fundamentally set a course that has the opportunity to change humanity and all on board, they're working and supportive of our theory of continuing the sanctions until we're complete, so we have got a unified world to join

chairman kim. i was there, i was there when he said it. he made a personal commitment. he has reputation on the line in the same way that we do that says we're going to create a brighter future for north korea and denuclearize as quickly as we can achieve that. i'm sure there will be bumps along the way, but i'm confident that we can get the world to unite behind this incredibly important mission. >> you did a hell of a job. i tell you. he's been in a lot of -- he's logged a lot of nours airplanes going over, 22, 23-hour flight, and it's been a lot of time. and we're very proud of you. thank you very much, mike. thank you all very much. [indiscernible]

>> they have to get together, honestly, get together, the question is what's my message to lawmakers having to do with immigration? they've got to get together and do something. this has been going on for decades and they have to sit down, i'll be certainly willing to do it. i just told you i'll invite senator schumer and nancy pelosi. they can come over, they can bring whoever they want, but the lawmakers have to sit down and they have to do something because our country cannot continue to run like this. we can't have open borders. you have to have borders, you don't have a country without borders. they have to be enforced, has to be strict enforcement. at the same time, we want people to come into our country. we need them. we have many companies moving back into the united states. they need workers. 3.8% unemployment. they need workers, we have to have them come. in i'm saying i want people to come in. they have to come in through a merit system. we can have a lot of people come in through the merit

system so they can help the companies that are looking so hard for people to make the company work, but in a very, very simple way, congress has to get together, get their act together, democrats and republicans, they have to come up with a solution. i have ideas. they have ideas. we can put them together very easily. there's so much hatred. there's so much -- i mean, honestly, i'm not just saying this. there's a lot of false reporting, misreporting, also a lot of great reporting, but congress has to come together and this is the best time to do it. right now is the best time i've seen for people that really are well-meaning. unfortunately, we have an election coming up in a few months, they're looking at it and we're looking at it and maybe we have to put on the blinders when it comes to doing that, but congress has to get together and we have to do something on immigration, very important.

we have to change almost everything that's been done in the past. it's ridiculous. we are being laughed at as a country because of our bad immigration po, and you know, we're a young administration. this has been going on for 50 years, 60 year, 70 years, but it's gotten worse over the last 20 because laws have been so complex and so ridiculous. we really don't have a law. we have laws that don't allow you to do what you're supposed to be doing, and we als want to keep it in a very humane way. if we don't take them in, we have to help, and also need help from mexico, mexico has not helped us and we need help from mexico. it's a long answer but i appreciate the great job you've done. reporter: [indiscernible] >> i can't hear you. reporter: kids who are already separated from their parents? >> we want to keep them

together. we don't want children separated from their parents. you gave an example yesterday of 12,000 children. of the 12,000, 10,000 came up either alone, they weren't necessarily young children but either alone or came up with traffickers and coyotes, and these coyotes are bad dudes, but they came up with other people, brought them up, and they are using these children. that's 10 ofhe 12. of the 2,000, a lot of the people where they came in with children, this is their third, fourth, fifth time trying to come into our country. so this is not a perfect situation, this is very bad. now port of entry, if you go to a port of entry it works out very nicely. they're doing a good job but don't want to come in through the port of entry. that's called doing it the legal way. many of the people in the 2,000 category. 2,000 children, those are people trying to come into our

country many times the same way. they don't want to go through the port of entry. usually that's for a very bad reason. why don't they want to go legally? you have to ask yourself that question. so you have a situation that is ripe for congres to get together and come up with a solution, and i am ready, willing and able to help, and ready, willing and able to take this pen and sign really quickly. reporter: zero tolerance system? >> if we took zero tolerance away, you would be overrun as a -- you would have millions of people pouring through our border. if you took zero tolerance away, everybody would come. right now, they'd be getting their little belongings unfortunately, and they would be heading up. you would have a run on this country the likes of which nobody has ever seen, so we have to have strong borders.

frankly, the wall in terms of drugs. in terms of keeping certain people out that we don't want in this country, the wall is imperative. we have to have the wall. we started the wall. we have $1.6 billion. fixing tremendous amounts of wall where it's been overrun, but we have to come up with a solution. i would consider it, whether it's north korea, whether it's so many other things, we have a lot of things. look, i've been given a very tough hand because i came up here, we had an economy that was going down. we had an iran problem, we had a middle east problem, take a look what was going on in the middle east. a lot better now, a lot smoother right now, than anything you heard over the last eight years, but we were given a lot of bad cards. one of the bad cards, we were given this immigration mess and it was made worse by all of the

different contradicting and the contradicting laws that have been passed, so we're going to work very hard with mike pence and with everybody else in this room. work very hard to see if we can solve the immigration problem, but we need democrats to be able to do it. if they're going to obstruct, it can't be done because the republicans don't have the votes. now, i think we're going to win additional senate seats. that will help us a lot. unless we get additional senate seats and unless we keep the house more or less like it is right now, you're not going to be able. unless the democrats are serious and they want to come along and get immigration work done. we can do something that's going to be historic. we can do something that will be historic, and we can get it done. i am ready, i'm here. all of these people, these are very talented people. we're all ready. we're all here. we need votes from the democrats or nothing can pass.

thank you all, very much. reporter: [indiscernible] >> thank you. >> thank you. >> thank you very much. >> thank you. neil: all right, that's pretty interesting there, betr part of half hour here, the president outlining a number of initiatives he's taken and moving on and commending his wife for going to the border. you might have seen about 40 minutes ago there, touring the facility that houses some of the kids separated from their parents and kids 12-17 years of age, but the president offering an olive branch to democrats, inviting them to come to the white house any time, i'll send a word they can come to the white house and solve the problem once and for all. also it was a chance for mick mulvaney to talk briefly about reorganization of government. something the likes of which has not been done, going back to the early days of franklin roosevelt. the read on all the

developments at a time the trade war could be toughening up here. kelly grace gibson, former press secretary mark lotter. the president more or less said or changed the news or complexion of this to date by going to this facility in mcallen, texas and putting a different face on it. what do you think? >> i thought it was such a move of class and it kind of is what mrs. trumpis. she's a mother and down there as a mother and a first lady, showing the compassion, finding out what needs to be done at the border, making sure the kids who are being detained are being treated well, and i thought it was an absolutely great thing for her to go see it, and to do it the way she has done it where she's showed up unexpectedly down there, and really got to see what's going on. neil: what did you think of all of this, kelly? >> yeah, i think she brings a

unique perspective to the situation being an immigrant herself and understanding how scary it can be. the big thing that is still in question is the process for reuniting the families that have been separated, so i hope that her being there shines a light on the need to sort of move the ball forward in that arena as well. i do believe it was time that a representative of this administon went down to see what's going on and start to move the narrative in a way that starts to reunite people that have been separated. neil: i wonder what will happen with the two bills that the house will vote on without much democratic support and moderates balking at the conservative bill. does anything change with the initiatives or as the president said, depend on getting democrats to the table? >> unfortunately that's what it means, what the president tweeted is reality. whatever the house would pass, if they pass anything has zero chance of being passed in the

senate because of the obstruction of the democrats. so if there are republicans out there who are not entirely enamored with one bill or another, they're asking themselves should i vote for this because it's not going to go anywhere in the united states senate. it's unfortunate, but at some point we've got to get everyone together to tackle the issue as the president said, going on for decades. there was a story from 2014 when president obama was asking congress to fix some of the same problems that president trump faces today, and even then senator feinstein from california refused to do that for president obama, thinking he had the tools to fix it himself. neil: kelly, are you optimistic, regardless of what happens with these measures that this is ever fixable with the administration? >> the democrats are listening to constituents. a "quinnipiac poll" says 80% of americans support the continuation of daca, a lot of the bills have support of

continuing the wall and m than half americans don't want the wall built. you have to separate the things out that matters to voters, and until they do, it's hard to negoe. i mean, americans respect immigrants, 67% of americans think illegal immigrants in our country should have a path as a citizen to stay here. people care about immigration and migrants and these bills --. neil: maybe we'll make progress. i want to pass along a news item before we go to break. >> sure. neil: we told you about intel ceo having to step down over a consensual relationship, he will leave with a parting prize of $38 million in prepayments, predeferred compensation. we'll have more after this.

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neil: big day for the retail sector with a supreme court decision that caught a lot of people off guard say no matter what business you do in any

state or lack thereof was originally deemed to be damaging to all retailers. a lot of the online retailers, but the implication, jane, what you think. >> this has something double work for a long time. amazon has been talking about the state for several years. i remember in 2013 doing on work that i want to quickly put into perspective what that means. it's a small positive for online retailers because one of the examples for example come on amazon, half of the items purchased are not collected. they come from third-party sellers. that is a 5% price cut for shoppers to go online. very obvious reason why this would be a positive for traditional brick-and-mortar. the reason why it might not be as big of a positive for traditional brick-and-mortar i price actually is not the number one reason people shop online.

convenience is number one inconvenience is comprised of selection, finding the exact color of the thing you're looking for an second time in the delivery not having to go to a store. i'm not surprised the large internet retailers are trading down on this. it makes a ton of sense that this probably won't have a big impact on their business. neil: in the case of an amazon that is in 45 states and already handling coming you know, the state taxes for items that people buy on its site, is that a big issue or how would you explain it? >> i think the simplest way to look at amazon collectively, they recently spent half of the items they sell are from third parties and they typically don't collect sales tax in those third parties. but what we have seen over the past decade is that the percentage of states that have collected tax, they are called nexus is, that those states that have collected tax or in other words the percentage of amazon

that have collected tax have gone from 10% 10 years ago to about 50% today. during that time in the past four years specifically, the growth rate of amazon has gone for the retail business from 15% to 25%. it's been steady over the last few years that 25%. in other words, as more states have collected taxes over the last several years, we have not seen an impact. the growth would have been higher without those changes, and that it's safe to say there is a meaningful share shift from offline to online despite these changes in taxes. neil: real quickly, gene, i want the macro are you in the sky view on this. would this retail spending for shoppers in a lot of cases have not been having to pay this tax and in some cases they will. in other words, you get to the final page online. do you clear the sale and press

send? >> for the next year, there is a slight headwind. once people rationalize that, there is no reason around these taxes. the answer is a slight headway near term, but longer term a year plus i don't think will change the dynamic. neil: interesting, jean. thank you for taking the time, appreciate it. the president will be meeting with key national governors not talking about concerns. half a dozen, mostly republicans. the democratic governor of puerto rico. but that is wrapped up of course we will take you there. from that development, the president praising his wife making an unexpected visit to the border today. melania trumpeting a different face on these facilities that deal with kids to get to this country. not all pandemonium and human injustices and depravity. she put another face stare at another facility that is

different from the ones he might've been seen in the traditional media. not. whoooo.

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neil: all right. we are still waiting for the response from the chinese on the trade were stuffed. we find it interesting because it is late stage, normally on chinese goods was announced, they quickly replied and said he was $50 billion. you're good. the president said 200 million you responded that it will be another 200 million. still seeing what the chinese will do. they don't like this and they've made it node. a lot of folks the world over including the group daimler. we could see the u.s.-based facility caught up in all this. but even though specifically like my low that i missed it in that area are fearing the same impact. in other words it spreads far and wide. price waterhouse pitcher shall and market watcher paul schatz.

let me begin with you. what is your sense of where this is going and when these auto companies start saving now. they're obviously worried this is escalating. >> is somewhat reminds me when obama was president and we have the? around taxes. obviously much different issue. it is the uncertainty that is the worst part. hopefully not the end result. this is all short-term nonsense. pere off grd. they don't know what to make of it. the administration is jockeying around trying to cut the best deals. i still think short-term pain, long-term gain this does not come to fruition. not disclosed as bad as advertised. >> a little bit agree, little bit disagree. business is planned for the long term. when they are stuck for a year not even been able to plan. we have the story with tax reform and they couldn't plan. over time if they're not able to complain and invest, it will

have a longer-term impact. so business owners, wages have a whole bunch of inbound business owners, the other ceos really want to see something break on this so they can know how to mute the business going forward. neil: the president doesn't appear willing to go an to go in to go an inch on this and says we are the ones with the strongest economy from the position of strength. what do you make of it? >> tromped digs himself into a hole, gets right in the corner until the very last possible minute and all of a sudden he's 180 degrees. the same thing here whether it be china, e.u., he's trying to get the best deal. his negotiating style is so much different than anyone's ever seen in the modern era. it's really hard to get your footing as an american investor as well as internationally. you don't know what to make of it. in the end when they say slow

down or will impact companies, he backs off and has a much better deal than were seen now. no one will win in a trade war. we may lose less but everyone's going to lose. when push comes to shove, got elections in november as well as to your sense from then. i think he's going to back off. i don't think this would be that bad because recession is the end result from all of this. neil: you could argue the president knows the chinese have more to lose. they are in this precarious position. so he's kind of using that as leverage. >> yes, he also has them. although we don't know. but their industrial productions at the lowest level in 22 years. they have slowed dramatically year-to-date. china had some economic goblins

locally. this isn't helping. china's economic growth is something the entire world counts on. so that may be in our favor because having this resolve itself one way or another. we are not talking about the intellectual property and how that factors into all of it. neil: is pivoting, maybe that is too strong of a word from the immigration thing and then executive order of separating kids from their parents along the border. the reason i mention this context if he shows the sort of a pragmatism when it's called for and i wonder whether that would be applied here or is it an encouraging development to look at here. >> at exactly right. it's somewhat epitomizes how he so far to one side and you wake up the next day with someone

trying to make a deal. you cannot protect our tariff your way to prosperity just like you can't tax to press rarity. in the end he's got enough people. larry kudlow for sure around him. >> peter navarro would be and i can't. >> he does but i don't think he has to see it at the banquet table. in the end, he's going to see the path leads to recession. you can't have recession ahead of any big election. markets are going to smell the subtle but faster than we see the actual numbers come out of the government. in the end again, the economy may even pause for a second. inevitably markets are going to go much higher. this will be a footnote. neil: regarded him in the past and panicked in the past and things have been working on a case over and it gave him the benefit of the doubt. >> i go back to e rth kore situation. the rhetoric of north korea says during a nuclear war and then the next scene of the two

leaders are together. he said on the campaign trail is not telegraphing anything right now. >> we don't know. thank you very much. melania trend continuing to visit this facility that houses kid ages 12 to 17. these are the ones taken from their parents as they are put in separate facilities from their parents. she wanted to see how it goes. they could say anywhere from 40 to 45 days. they are well fed, well nourished and she wanted to see, as a mom, how the kids are treated in his trading managers working with them. and she asked questions and she's had an impression of an impact. a lot of people were saying all of these images you've seen in some of them have been horrific are not the norm. at least that was why she made the trip. she did it anyway. how many wives do that sort of thing?

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neil: you know, following a couple things here to look at at&t. when that deal was approved for time warner, of course they greenlighted all this back-and-forth for 21st century fox. now, at&t and how will sort of

leverage across this new combo. adam shapiro in the development. reporter: different bundles than a skinny deal. we don't have the details because at&t has been released the details are what is going to be a $15 package in which you would watch their watch tv app. they are also going to offer part of the watch tv program on the app. at&t unlimited and more, which is dirty channels for at&t unlimited and more premium, which is 30 channels lifeless either hbo or showtime premium channels. it will not include your local tv netwo local tv. the big deal everyone is talking about is the $15 skinny deal. randall stephenson had talked about this during her testimony during a court proceeding which is a very slim package as stations, watch alone and you won't have to take everything for one price. the problem with all this is how do you make money on it.

at&t, right now people delivering we get paid, fox got our parent company gets paid for every subscriber to the channel distribution system. at&t is going to pay for the what's up skinny deal that subscriber might include. for the unlimited, no. it depends how much time they actually watch. neil: does it affect those who have directv? >> no, they will remove directv. they will get a discount, but you wanted the satellite. it's going to be delivered acrossnternet. they are moving upward to the internet. neil: i'm thoroughly confused. i want to bring guilt for bolton into this. this is a request to get 21st century fox and the back-and-forth here about streaming and leveraging of

content. >> exactly appear to pick up on something that interested in you could've had a drinking game if you listen to bob eiger when he was talking in december. i'm not kidding you, every single paragraph had direct to consumer. that whole interaction about being able to pick up your phone and in disney's case obviously watch all of their content, but if they could the fox entertainment, watch "avatar," x-men, simpsons, whatever you want to watch, but it just highlights the power of talent. racing netflix, shonda ryans from gray's anatomy. they also got mr. murphy, ryan murphy, american horror story. it's about beefing up content. what is going on? when i saw that, i thought are they getting into the mix in a way? >> there was a multiyear --

>> i don't see apple making a bid for fox entertainment, but what is quite clear for comcast is a must win for them. i also went to the trans-earth of thein roberts annocement to the shareholders about why he wanted to do this. he said it was to compete in the next century, to build this media when he does content. we have nbc universal. fox entertainment assets, nat geo, fx, a lot of profitable creations that kick off cash flow right away. we talked about comcast that a little bit yesterday. comcast defended that. they may even -- i should say, it's a risk i could be down, but the properties that entertainment assets have a kickoff cash right away. neil: right away. here's the problem with all of

this. it is assumed viewers on this device. neil: what about your existing tv? >> at in. right now everybody who'ss. watching his pain. either for a subscription like hbo or the content are just the connection for the data. nobody talks about were at&t and it's still far out. nexgen tv. right now you could watch tv, get the chip in your phone without paying for any data. it's almost as if it's 1950 and this is now a tv getting an over air signal. what at&t is going to need or what disney hans is a tv station chain. they owned stations across the country. they'll deliver content without

the receiver of the content having to pay anybody for the signal to connect. so you just cut off another revenue stream for at&t and comcast of the world. if i can watch this stuff absolutely free direct from wabc in new york and it's in hd quality, which it is. it's been tested in cleveland. >> content is king and of course who's run ahead of netflix. not fox got to where it is come amazon as well by not being in a studio, any properties. neil: can i switch gears? the ceo has stepped down over this relationship in the past and is going to leave $38 million in delayed compensation. but what was the policy? >> or manager you cannot have a relationship was consensual or nonconsensual certainly. if you're a manager at intel going all the way to the top you

could not have a relationship with somebody who works with you. in the fine print it is consensual. it doesn't matter. if you're a manager. neil: does that affect any of the compensation options? >> no. there accompanies his favorite not your manager and it's essential we don't have a problem with that, but very clear that is not intel's policy never has been. neil: so now what? >> when you look at this particular story, this is something that happened a long time ago but started to come to the forefront as they were learning about it at intel. either someone had it in for him -- >> it was something old. >> maybe somebody wanted his job or wanted to get the ceo out. i actually called a legal expert on this instead listen, intel is doing the right thing, there's market is demoralizing for other employees that they think

someone is getting favorable treatment. neil: thank you very, very much. we are waiting to hear from the president now meeting with about six or seven, all republicans ptof puerto rico. we will take you to that when re done with the infamous paul spray. one of my favorite things that's available to us in broadcast today. more after this. for this new stepdad, it's promising to care for his daughter as if she's his own. every way we look out for those we love is an act of mutuality. we can help with the financial ones. learn more or fi an advisor at massmutual.com where we're changing withs? contemporary make-overs.nes. then, use the ultimate power handshake, the upper hander

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neil: all right. the president as you know invited democrats to come stop

by the white house anytime. he would love to hear from them, their ideas how to deal with the immigration mess. this might have gone a long way taking crisis out of the crisis visiting the facility along the border. melania trump head back from texas. to trish regan. trish: thanks, neil. president trump unveiling a major plan to reform the federal government. one of his proposals he wants to merge the education and labor departments. the dow off 131, amid all this concern about the immigration reform plans. we're talking about it all right here today on "the intelligence report." i'm trish regan. welcome, everyone, to the show. ♪ trish: president trump has been vowing from the beginning to drain the swamp and eliminate any unnecessary agencies but his push to merge two departments now needs congressional