other broadcast or cable television. on the eve of massive sanctions, tariffs to take place tonight. neil, cavuto, it's yours. neil: thank you, my friend. threat is effective at 12:01 a.m. a little more more than 34 billion in tariffs take effect. the chinese will respond in kind. if the markets worry about it or panicking about it, for the time-being they're not showing it. this can swing wild licht the latest pick up seems a lot of sense tiff shares of trade, they have picked up. a lot has to do with reports. these have not been verified, that the chinese do not plan to respond in kind, tit-for-tat. they will make their grievances known in other ways. they do things like delaying inspections. not allowing american companies getting approved for licenses as quickly as before.

for example, if you export food for the chinese, leaving in container ships, eventually perishes, goes bad, that is not tit-for-tat but grudgingly stick it to you the united states. it doesn't show up here. the markets are looking this is as far the chinese go. we can deal with that. try telling the merchants something they can deal with. that is something we'll get into. no indication that the chinese specifically have follow-up plans to our $30 billion of tariffs just hours away. let's fet read from former chief of staff to paul ryan dave hoff. heather zumarriaga and "usa today" congressional reporter eliza collins. we're waiting to hear what the chinese do in response. most people say this is contained, 34 billion, to 34 billion, so small in the scheme of things, the world, the both countries, can live with

that. do you agree with that. >> we'll have to wait and see. certainly if people are not hit in the pocketbooks, it will not affect them. in midterms republicans will worry what it will do. if people go to the store, gallon of milk costs a more money it will have probably less of an effect and markets stay higher. neil: dave, what do you think? >> it is not a question of the stork market. the stock market has taken this into effect already. it is retailers and farmers especially. that is where you first see the problems if the farmers are getting hit badly by this because the prices are going down. non-tariff barriers, are ones that you can use very painfully for americans and american retailers. neil: absolutely. >> people are trying to sell. that is terrific problem to deal with, not a minor problem.

although not the tariffs some are worried about. neil: it is passive aggressive way, heather to stick it to american companies without formally interfering in the process with sanctions or tariffs of their own, but you know obviously the to dave's point they can be as damaging if not more so. what do you think? >> i think we could stand if this escalates to a trade war to lose more jobs than we would gain protecting domestic producers and manufacturers here in the u.s. the markets are up on the backs of some auto tariff talk quieting down. there has been a more subdued tone from the u.s. on this zero policy, zero tariff solution that is prosed, saying hey, eu, if you stop levying tariffs on our cars, we will stop threatening or soften our stance, threatening tariffs on considers coming out of specifically germany.

germany really stands, i think, to take a big hit on the backs of these auto tariffs which could be more than three times the amount of steel and aluminum tariffs. if this zero solution is implented, meaning no tariffs on either side on cars, that is a big one for the markets. look at ford,gm, fiat up on the news. neil: on that point, eliza, germany already indicated, courtesy of the imf, that he will put a pinch on their growth, likely 2.2% down sharply. angela merkel says she thinks this is going to reverberate, hit the global economy, the tit-for-tat is going to get worse. what do you think of that? the idea this is spreading and it might already be out of control? >> well i think they're waiting to see what happens. again, the zero tolerance policy would certainly tamp that down but if that is not the case, if that does go, global economy

likely will be hit. talks definitely here at home with midterms coming up. lawmakers going in, if people are being hit, goes back to that, you know, manufacturers at home are being hit because tariffs abroad, that's jobs. that's people who will go to the polls and vote and that's concerning for the people in power right now. neil: you know i do get worried, dave, when i hear farmers have be told, be good patriots and absorb this. that is a tough sell. >> easy for someone else to say. neil: right. all of sudden they are the ones who have to absorb this. they have been on the front lines of this, everything that is their life blood trades on futures market, futures tumbled for a lot of goods they sell. they're in a real pickle here and i'm wondering how long they could sustain that? >> not very long because farmers live crop year to crop year. so if the futures to down the way they have precipitously and we get shut out of the soybean

market, things of that nature, it will be very, very hard on farmers here in the united states and there is no necessity to do this. the there are other ways to handle this. the gatling gun approach trump administration taken, looking at china, the problems with china, whether it is trade and technology, whether stealing ip, whether playing around with the yuan, if the united states would work with other countries to make changes in the wto, to make china an honest player i think the rest of the world -- >> china should not, china should not have ever been accepted in the wto first place. it is playing under different set of rules, more emerging economy and versus developed country. they are not operates on free market system the way the others our. neil: what would you do, heather? you are a superpower

economically, and play but the same rules? to dave's earlier part that are telling anything apart from what is happening in the real world of the economy, what have you, but they seem to be dismissing these anxieties. >> oh, yes. neil: i wonder about that. >> the markets are dismissing the anxieties because the markets don't think, i think, a, a trade war will result. the markets move on every rumor coming out on trade that we hear but also the jobs data. 177,000 print today, adp print. below 190,000 expected. but overall economy is doing very well. 3.8% unemployment is great. we're embarking on second-quarter earnings starting here in a week or two. so i think in july, it would be tough to tell investors to go out and buy this market. i don't want to be caught short either. until i see what happens with trade. neil: i don't either. eliza, we were told last week by

commerce secretary wilbur ross that the president isn't going to judge what moves he makes on trade or concessions based on the stock market but he is very attuned to it. i wonder if it goes to a sustained fall, not today, we're at session highs, he is paying more attention to it than we know, what do you think? >> with president trump we never know what president trump is going to do until he does it. that is a. when the stock market is high, he lets people know. i imagine he won't be saying publicly if it drops. he is a businessman. i think he is very aware of what the results and how this goes forward moving into trade. neil: you know, dave, he is also aware of some industries whose sell figures have been the wind at his back. we talk about the economy, auto sales, despite higher gas prices, people are buying suvs left and right. the optimism, at least as far as their own future of economic

views are concerned, highest it has been in better than a decade. so that is something that i'm sure he is looking at, doesn't want to imperil. or is it just like a russian roulette thing with him, what do you think? >> i think he is looking at it but there is, he has a belief in the current balances account way beyond what it should be in my opinion. he focuses far too much on that. the u.s. dollar is the world's reserve currency, mean the dilemma, in fact what we've got a situation where we have to run some deficits as long as the dollar is the reserve currency. those are things he ought to look more deeply that. i'm very happy that larry kudlow is there and positive outlook of ambassador grenell, trying to figure out a solution and solution on zero tariffs for autos would be fabulous. neil: ambassador again nil,

automakers volunteered we would to to much lower tariffs. would be advantageous for all. that is hardly a sure thing. >> hardly a sure thing. good to have positive words. maybe that is the start of pulling together the world to put athe focus on china and what china has done wrong over the years we talked about earlier. you have to get the world united of the what the united states is doing now is not uniting the world i'm afraid. i'm hoping we have a breakthrough on autos that would be a good start to it and start working together with our allies. neil: heather, talking with a couple of friends of mine over the holiday talking about this idea, neil, i don't see any higher prices for goods that i buy. when i do i can always find an alternative. >> amazon. neil: right. i didn't know really what to say. depends what that item is obviously. we can absorb this more than we know even though these would be

sticker shock developments to say nothing what has happened to farmers already. what do you make of it? >> at this point in time perhaps, because of e-commerce effect, amazon effect, putting brick and mortars out of business, anyone in matter of fingertips can buy the best price online versus stores. margins for retailers are very slim. you're not directly seeing inflation in some goods and services especially retail services that you might have have before. that is what the federal reserve is going to be looking at too, neil. they're battling higher inflation which i think will will come at some point in time. a the lot of analysts called time and it just hasn't. the federal reserve will have to weigh inflation, growth and unemployment and we'll see higher rates and jobs at 3.8% again, wages will have to go up that will cause higher prices

eventually, neil. neil: we'll see. thank you all, everybody. i do appreciate it. the dow up 170 points through all of that. something what heather touched upon we'll revisit number of times in this telecast, the notion of a possible trade war that offers possibility of federal reserve ease up on price hikes. one half glass of trade war, suicidal bargain, inflation comes with that, comes with the prospect after slowdown where the federal reserve would be less inclined to raise interest rates. i wouldn't hang my hat on that, or be optimistic about that. this is sign of a bull market looks at a big negative or trade war, make money off of it. you have got to love it. the president we're told narrowed down the list of supreme court choices. apparently he wants to go for the wow factor. whoever he settles on the wow

factor. what does that mean, the wow factor? ♪

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to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. neil: all right. corner of wall and broad, we're up 166 1/2 points. we're exploring this, labor

shortage, is a good underpinning for stocks. we have shortage of labor. something we haven't had in and we will follow up on that a little later and we shall. meanwhile the president is wrapping up all the supreme court interviews. everyone he is considering by the end of today he will have chatted with. there will not be follow-up chats we're told. blake burman is more up on this process than i. he can tell us how things are going. blake. reporter: neil, the interview process for the selection to replace anthony kennedy. now the president has to do is make a decision who to nominate. he had a clear schedule on this day. plenty of time devoted to that. you see vehicles behind me. he will leave for a rally tonight in montana. the president will think about this aboard air force one. there are three candidates that president trump is down to

replace anthony kennedy and they are as follows. brett kavanaugh, on the d.c. circuit court of appeals. nominated by george w. bush. those including orbit president i'm told think very, very highly of cavanagh. raymond kethledge, out of the sixth bored of appeals. he was there appainted by george w. bush. amy cone any barrett, 7th circuit out of chicago. put there by president trump. there are questions about the length of her judicial rest may. sources tell fox it is believed to be down to those three, do not necessarily sleep on thomas hardiman. he is still very much in the mix. we're told by some sources, third circuit court of appeals out of pittsburgh, appointed by george w. bush. he was believed the runner of hupp last time around and said to have a great interview with

the president last time. the president spoke with mike lee, the senator is on the list of 25, though it is not believed that lee is serious contender. rather lee is someone had a conversation with about potential candidates. i was told just before coming on air, neil, that senator tom cotton is someone who had the president's ear on this one. he has spoken with the president. earlier this week i am told, gave the president the pros and cons he sees it, relates to the final candidates but did not explicitly endorse who he thinks should be on the high court. a lot of opinions flying in every direction, neil. we'll hear from the president himself on monday as to who he ends up choosing. neil. neil: it is interesting, i know the president talks about the wow factor. in judge hardiman's case, he is former taxi driver. reporter: right. neil: has compelling life story. it racings to riches, for the

judge a success story. >> all of just a life story, right? in thomas hardiman's case, you're right, it was from a taxi driver, all the way up to now potential supreme court nominee. brett kavanaugh, who was a staff secretary at the white house, one of the closest people to the president. when you look at the range of potential candidates, someone very much engrained with the inner-workings of the white house, inner-workings of the court, someone who started off as a taxi driver. you can do anything in this country, neil. neil: that's what i love about this country. thank you very much, my friend. we'll see what happens here. a lot of compelling stories here. perhaps judge amy cone any barrett background or catholic background inciting most controversy from some democrats, catholicism, maybe her right to life views will get in the way of being fair arbiter on issues like roe v. wade.

some going so far to say beholden to the faith. some can remember historically what john f. kennedy had to deal with running for president of the united states. he would dot pope's bidding. senator kennedy had to come back, criticism, largely among republicans at the time was unwarranted. so it was fine for the democratic party then. not so fine in the case after perspective supreme court justice now. just looking back in time here. "washington examiner" emily jashinsky with us. will this be an issue? there are a couple other catholics in the mix. i don't want to pay too much attention outside saying she is particularly or ended up being particularly vocal on these issues or deemed vocal on these issues as notre dame law school grad. how much of an issue could be for you? >> there are three catholics

sitting on the bench right now. this would be an issue. an issue in confirmation earlier diane fine stain says dogma rallying cry by pro-life catholics, what feinstein says reflective of the democratic party view toward catholics. this shows more than anything how threatened the democratic party feels about current abortion law depend hog is appointed to the seat. there is pressure on lisa murkowski and susan collins, more pro-choice than the rest of their party. this could become a huge, huge thing if amy comey barrett is nominated. a lot of pressure on row v. wade, putting pressure on murkowski and collins on their votes. this will not go away. this will be huge issue

surrounding her nomination. neil: emily, it will be a tough battle. that is probably an understatement on my part. getting all the republican votes would be uphill battle as you said with susan collins and lisa murkowski. then you have to get some democratic support. maybe you have a chance with those up for re-election in trump-won states like joe manchin of west virginia, what have you, heidi heitkamp of north dakota, but what do you make of that? >> yeah, there is two reasons. there is two reasons this is going to be close no matter what. republicans hold such a slim majority in the senate right now. the second we're in midterm reason. the senate map for democrats is so tough. there are 10 vulnerable democrats running in elections states president trump won. puts joe donnelly, joe manchin, heidi heitkamp in tough position. those three voted for gorsuch. part of appeal for amy economy barrett, is from indiana.

joe will vote the same on president trump on nominee. you can lose collins and murkowski in that case. exactly like you're saying, the math here, no matter how you do it, it will not be easy no matter what. neil: we shall see. always good seeing you, emily, thank you very much. >> thanks, neil. neil: would you pay 17, 18 bucks a month for super premium netflix service, if it behave you everything you wanted, 4 k streaming on almost everything you wanted, lots of options? it could be coming soon, after this. ♪ . still won't eat my broccoli, though. and if you don't have the right overage, you could be paying for that pricey love band yourself.

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>> welcome back to "cavuto: coast to coast". cord-cutters, netflix fans,

listen up. are you willing to pay more? we're seeing the stocks up 1 1/2%. and there are reports from tuto android, there is ultrasubscription tier coming to netflix. this would cost you 16.99 than the current 13.99. last time netflix raised prices in 2017. what will the new ultratier bring. up to simultaneous, four, 4k streams at one time. hgr video. this is all in the testing phase. some of it is very similar to the premium plan. in fact would they charge more exactly what you have now? that is under investigation that people are clearly asking about. while it is in its infancy, it is underway, there is testing happening, nothing is solidified just yet. we're seeing technology today, with an up arrow. names like face back, apple, amazon, google, microsoft all

have up arrows, technology is one of the leading groups. i will tell you, neil, i did speak to an analyst pertaining to netflix which reports july 16th after the bell. watch the earnings. about picture that netflix is unbelievably strong. subscriptions are graining traction because of original content. cord cutting will continue. pricing power they have is strong. netflix a good position according to analysts at wedbush. neil: nicole, thank you very, very. with technology issues coming back, they are a big theme. one of the big reasons we see the dow moving. we have the same with financial issues. they have been beaten around and beaten down lately. they're coming back today. so we'll keep an eye on that. meantime keeping an eye on facebook. it had a little bit of a dust-up it couldn't technically rerun or reshow the declaration of independence because it was deemed, through its algorithms to be hate speech. this at same time a song about

the american flag which seemed to be as innocuous as you can get, couldn't be advertised on facebook because it was deemed under umbrella of hate speech. with very illinois democratic treasureer talking about major changes as facebook, nothing to do with these things per se. treasurer, good to have you. >> neil, good to be with you. neil: this is not your cause. this is all happened since you wanted to take a look how facebook seems to keep screwing up. you argue it is an issue of governance, right? you're looking for outside directors to come in. maybe a new executive chairman, explain what you want to see. >> we believe facebook has good fundamentals but we believe it can perform better. one of the ways they could do that with new corporate governance strategy. separate ceo, chairman of the board, having truly independent

board of directors with an independent chairman, we think they might have been able to avoid some of the scandals and some of the bad news they received over last year-and-a-half. we believe they should democratize shareholder voting. like democracy, one person, one vote. we think facebook should adopt one share, one vote policy. right now power is concentrated in one person. neil: are you concerned whatever your al true is i can reasons, that you're going too far, some critics contend you're using this to put strong arm of the law on a cap that has ample success using college funds leverage what you want on back of your investors? >> what we think we want to do on behalf of hundreds of thousands families saving for their kids college education, because college costs have skyrocket the. we want to maximize their return. facebook has been a good investment for the families.

what you've seen in light of the privacy issues, other canned schools, widening -- scandals, people are decreasing time on the platform. that will mean decreased ad revenue. that will mean depressing their share price. neil: none of that has happened yet. it could. i'm just wonder fog are a lot of your investors and this is obviously talking about college savings funds, monies you oversee, facebook has been generously rewarding them. you could be, you could be killing that? >> i don't think we're killing it. i think it has been a good investment. but we think it could be better. we think that for other mature industries -- facebook is no longer a startup company run by an individual genius. we think -- hike with all mature corporations. neil: like potential genius, mark zuckerberg should be there? >> we're not advocating for mark zuckerberg leaving the company.

we think he has a role in facebook. we don't think he should have the two roles of ceo and chairman. bring in an independent chairman. mark zuckerberg can still run the company. we think there should be independent oversight just like in most other major corporations in america. neil: so would that apply beyond facebook? in other words, would you look at your investments if they were elsewhere in google, alphabet, microsoft, apple, on and on we go, where you think that maybe outside influences should play a role? >> exactly, we've been consistent on this. with facebook this is not reacting to the latest news. we've been engaging with facebook for the last year-and-a-half on some of these changes. we engaged with other companies as well, wells fargo, mckesson health, we called on them to split the ceo and chairman of the board. we think this is corporate practice for those companies. we think it is good for

facebook, and other large mature corporations. a small smart up, you need that control. neil: i'm sorry, sir, when some of your critics contend you risk going too far with this, separately targeting drug wholesalers not doing enough to curb opioid crisis, do you worry with best of intentions you could be killing off successful enterprises just by the moves the government moves you're making and advocating? >> we think that this is good corporate governance this is how capital itch has worked. mature companies grow, they have independent board of directors. facebook was a startup. it had phenomenal growth. it has reached a point where we think it needs to change the corporate governance just like other major corporations in this country. i'm not worried because these changes have not killed off other large cap stocks or companies in this country. neil: when you heard this latest

controversy over the declaration of independence being deemed on facebook to be hate speech, what did you think of that? >> well, we think there are problems out there. we think there are bigger problems with privacy issues. we think there should be more accountability and transparency. we don't like it when facebook goes in front of conference and has to change their testimony later. we don't really like to see expanding probes from the justice department being investigated by the fbi, ftc and the sec, and we do think if you brought in some new directors who are truly independent, had experience in privacy issues we think we could head off some of the investments. you could take a very good-performing company and make it more better and profitable for families in our state that are saving for to send their kids to college. neil: when facebook responds that they have diverse and independent board, you just don't buy that? >> we think the chairman of the board is also the ceo.

that is by definition not independent. so that's the major change we'd like to make. we think that shareholders, if they're owners in the company should have equal vote to the insiders. neil: all right. >> we think that is a way to make a company better. right now their voter structure is undemocratic. we think there should be one share, one vote, treasurer, thank you very much. good seeing. >> you neil, thank you. neil: the treasurer and i were talking about the whole declaration of independence kerfuffle here. facebook did put out a statement on this saying that the post was removed by mistake. restored as soon as we looked into it. we process millions of reports each week and steams we get things wrong. not the, not the first time something happens. they have algorithms, this sort of thing, look for words, insurrection or rebellion, and all of sudden they tip off something, stop it from making light of day on their site. declaration of independence is

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neil: boy, oh, boy, did i miss this guy. he is back. charlie gasparino is backs. better part of two weeks in italy. >> i brought you a present. i think, this is kind of like something richard simmons might get you, this is the gym i worked out in. neil: say -- >> by telestra. i can't wait to see you in this. i bought one for you, bought one for ralph, and for charlie brady, because i know you guys work out together. neil: we do. obviously ate a lot of oil-for-food program there, what is this i'm looking -- good food there. >> that is me looking like brutus. neil: sure, things didn't end

too nicely for him. this is great. you were not at the venetian in vegas. >> i tried to get my wife. working out every day. neil: look at you. >> that is a mountain town in italy. i found a jim -- gym every place. neil: because i was early. i had jet lag. not the -- neil: what is this? >> that was in venice i believe. that was vincent and some cookies. eating like crazy. >> that is me in florence. neil: that looks like a bad sopranos flick. you had a wonderful time. >> it is beautiful. makes you proud to be italian background. the renaissance started there. one. reasons why there is a united states of america, i believe, is because of the renaissance. that was cultural weakening of

the world -- wakening of the world and we're part of that with our constitution and some of the things handed down from the renaissance thinkers. you kind of get that when you go there. we hired a woman who is very smart to be a tour guide to take us around florence, the major aspects, point out the major aspects of the renaissance. how it was done through architecture and art. neil: wow. >> you get to see, listen, the constitution and declaration of independence written by anglo people from england but a lot of their thought began, the enlightenment began with the renaissance. neil: then it veered into sleeveless t-shirts. >> and maga. veered into maga. [laughter]. neil: how do they feel about donald trump over there? >> you know, europe is going through a transformation. charles payne mentioned this in one of the broadcasts i think i was on with him and i didn't understand it until i was there.

they're right now in isolationist mode throughout europe where they're tired of unfettered immigration. neil: italy with the brunt of it. >> it is not as bad in italy as it is in france to be honest with you. not like massive amounts of migrants flooding in. they're trying to. they're keeping them out. italy has the basic cultural heritage intact. but as a whole europeans, italians, many more french, now germany, you see them saying enough is enough. neil: they take their wrath out on germany. germany started this. that is fine for but opened doors with us. >> in that context, they say trump -- three people in supermarket, they were average italians. northern italy is richer than southern italy but still plenty

middle class people. they're looking stagnant wages for their kids, not a lot of jobs opportunities, massive amount of cheap labor coming in. they're worried about the cultural impact of all those folk that don't a simulate easily. that is not racist to think that. neil: people forget it's a worldwide issue. >> it is. it is happening all over the place and an economic and cultural aspect of it. i would like the president of the united states to ratchet back on some of the racialallist way he approaches it. it is not a racial issue or but about a common culture, a simulation and can have you this many people that are this poor unfettered -- neil: italians say we're done. >> we're done. neil: what about the european union.

>> they don't see it benefiting them. they're a big economy. i would say this, italy is a huge economy. they have not seen, they have not had positive gdp growth or sustained positive gdp growth, one quarter here and there, but they have not had sustainable gdp growth in a long time. they don't have wages rising for their kids. it is a desperate situation there. germany does not have that problem. it has a much more dynamic economy but when you throw in spain, italy, portugal, maybe france, who knows, if macron's economic liberalization doesn't work and greece together, you have a sizable bloc of countries that could theoretically say enough with the eu because, guess what? neil: we're not benefiting. >> we're not benefiting from it. maybe they would be worse off because they run huge budget deficits. they have massive welfare states. but you know, and, they, it is

interesting, the, economic impact plus the immigration is what's driving right-wing politics in italy and throughout the whole region. neil: very happy to see you back. not the same without you. >> were we supposed to talk about the imf? neil: i don't know. i got this t-shirt. >> i can't wait to see you, charlie, ralph, wearing those things, at the gym. neil: you have to wait like, at all. no. good to have you back, buddy. we'll be talking about more. i wanted to get an update on your trip. >> listen it, was a great trip. i cooked a lot. neil: i know. >> i cooked, we had this little country villa -- neil: you work out like a fiend. >> you go on trips and don't gain a pound. >> i ate pretty good food. i don't eat a lot of crap. i ate steaks. see that bulging arm. put that back up.

that is the product of a florentine steak. neil: there we go. just delicious. a lot more coming up, secretary of state on his way to north korea here. he will apparently read them the riot act about the reports they're not sticking to the whole nuclear thing and what they're doing. how is that going to go down? after this.

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neil: all right. mike pompeo headed back to north korea, third time in as many months. growing concerns that the north koreans already cheating on some of their denuclearization goals. the read right now from former state department senior advisor to bush 43 and president trump christian whiten. always good to have you, my friend, thank you for coming. george will, iconic symbol among conservatives, not a fan of the president, said in a blistering attack on him that the north koreans have been running circles around him of the mess t dangerous moment for the trump presidency, seeming what he is not, strong, realizes how weak and childish he seems to all,

consist of a cool eye on singapore after, in the end. after that. anothers saying that singapore is proof to the world that it was donald trump who folded and donald trump who can be taken to the cleaners easily. what do you make of that? >> that is typical george will, overwrought, overstated, hysterical and anti-trump. neil: tell me what you really think of it. >> it is important to note george will has gone completely nuts since the election and emergence of donald trump. neil: not a fan. >> urged people to vote democrats in the midterms, odd for republican and purported conservative to do. the thing that came out of singapore wasn't a piece of paper. a meeting of the minds. first time leader of north korea and united states agreeing that north korea should disarm. there is a lot of talk and pessimism, but north korea hasn't broken anything because the reason pompeo is going over to start fleshing out the

meeting of the minds that took place in singapore. neil: doesn't he want to flesh out what is happening in this nuclear complex where it looks like the north koreans were doing pretty rapid upgrades? maybe that is a separate issue. maybe that is not happening but there is a lot of noise like this. does it worry you? >> noise tells us more about our own intelligence bureaucracy, what the dia, defense intelligence agency reportedly put out that north korea won't denuclearization that is old collection of internal prejudices, and beliefs. that is not accurate political judgment where the north korean regime wants to go. neil: i just want to be clear. you don't buy these reports it is expanding sites tied to its nuclear weapons program, not reversing them or curtailing them? >> look, they're not reversing them yet, i don't see were why you would do with without a detail with the united states. neil: you wouldn't -- >> i'm not expert at imagery,

look at supposed expansion that is one little hut built next to the fuel recycling center, fuel assembly factory. that is not major expansion. the other thing, light-water reactor under construction for some time. the construction continues. depending how the reactor operated that would be less efficient at current graphite monitor reactor that you need to make plutonium for a bomb. these are not great signs. there is nothing here. people are coming pessimistic about so little information. the people who know most about where north korea wants to go are pompy yo and trump and they're still optimistic. neil: thank you for explaining the graphite thing about nuclear reactors. we wanted to get that settled. up 161 points on the dow. they're not worried, should you be.

: .

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little past midnight it begins, trade war is on and everyone is stressing and hammering on about the markets. there's a reason for that because it's not a big deal on this and it's all going to work out. the president is taking the right path. leads beekman explained with a bit more. lee, you're not worried and argue that the administration's approach is sound, explains. >> absolutely. what i'm worried about is the status quo.

the trade situation was a catastrophe for the united states. you probably talked about chancellor merkel in germany saying our tough trade stands could cause an international financial crisis which would be laughable then they understand on the fence by another $40 billion. no wonder she called the crisis. what the real crisis is as what happened to american workers. we have a trade deficit around the world. hundred 50 billion was the european union. 400billion was china and no other nation in the g20 other than a couple of the smaller nations have that big a trade deficit as a percentage of the

gdp and none of them has had it for many years as we've had ours. trump is doing the right thing. >> to do the right thing when he alienates everyone doing it? it's one thing to go after china in canada and mexico in the european union, can he be a little bit more selective and show more discussion? >> first of all, when you cut off the gravy train, it's amazing how people squeal and how terrible they say it is. what you expect them to say? they are benefiting to the tune of $800 billion a year. >> we have grown gravy train. even go inside certain areas and you're quite right but when you average everything out that's the best we can do. let's say the canadians are foreign half percent, were three half percent, is not all that horrendous, i just wonder if a country that charges 20%

tariffs on light vehicles coming abroad, where we to judge. >> you believe in numbers, your great business anchoring correspondent, the numbers don't lie. $800billion written a whole. you talk about lumber or areas of specific countries, we have these established economists and clueless politicians, people i agree with on many issues who are poetic about free trade but they never talk about that $800 billion deficit that they don't talk about the nearly 4 million well-paying american jobs that's costing us. they don't talk about the direct impact on the opioid epidemic. >> but income -- >> the confidence of the investment created by president trump's election and

policy. >> you don't think he's going to far. >> i don't think you've gone far enough. we need 815% tariff on all imported goods. when people talk about tariffs being attacked, that's true but as ronald reagan said when you tax something you get less of it. we have a huge fiscal crisis coming in this country, massive deficits going forward. we have to get that revenue and raise revenue. i would rather tax imports and get less of those which means more american jobs the more domestic investment rather than raising income taxes again the democrats want to do that if you are going to respond and fight fire with fire and you argue that these small countries are taking advantage of us and you're going to respond in kind by sticking it to them, how does that solve anything. >> actually don't think were sticking it to them.

were finding a read reasonable equilibrium. if we can just not 25% off our trade deficit that would add a full percentage point toward gdp. growth is the goal. people forget and these wonderful economists don't tell us that every dollar we spend on imports is subtracted from our gdp. right now nearly 4% of our gdp growth is hacked away every year by a trade deficit. we have a $550 billion overall deficit when you take out services. tructrouble is services do not entail nearly as many well-paying middle-class jobs as manufacturing. >> you write about that. >> what would happen, we buy a lot of stuff, americans tend

to be richer people i would like to get stuff that we do get a lot of stuff from a lot of countries and the appetite for the stuff that we have just can't keep up with that abroad because they're not as wealthy they don't have the wherewithal to buy as much. what if it's something like that that can be fixed by going tariff for terrorist or tit-for-tat. >> it's not going to be tit-for-tat because were $800 in the fall. if we put a telephone they are going to run out of exports long before we had to 800 billion credits mathematically impossible for the tariff retaliation to match what rtf would be predators plenty of disposable income to buy american goods purdue know the number one car exporter in america is? bmw. export more vehicles than any other company. they can do a lot more of that. toyota and martha are building a plant in the u.s. for this

nothing wrong with building things in the u.s. we just need policy to make it more attractive. the one import we have a significant tariff on his light pickup trucks, a 25% tariff. that is the fulcrum of the american automobile industry and toyota makes the trucks here in houston. >> so we shouldn't judge other nations with what they're doing with light trucks. >> let me put it this way again, we are hugely disadvantaged. any change in policy, any tariff regime. >> for the richest country and were disadvantaged my foot. >> were not going to be. word away -- we could be much more successful with got a look to the future. we've got have an enduring economy that continued to succeed and we have to deal with the fiscal crisis that we have. where are we going to get the

revenue to make up with the huge deficits going forward. i believe that the tax cuts president trump are in place will largely pay for themselves and as you've often pointed out we will still have potential in our increase in spending. were any more revenue and it needs to come from tariffs. by the way, one final thing, you know the united states number one export is overall? you know what is? no. >> treasury bills. you are staying away to fix things is to slap tariffs to get the money that way. that's the very behavior you hated in what they're doing and that's what you're compounding, i think. >> but were a safe haven, we don't have to worry about that. we can't build an economy based on exporting $200 billion of federal debt.

>> but we can't build that playing games with our friends. >> we are getting serious about trade. this is an economic crisis. your great guy, i hope this goes and finishes nicely but i'm worried because your playing with fire with fire. a very good read on what's out there. the president will be heading to montana. right now these when we pushing these themes in a big speech later tonight we have great america chairman and democratic strategists. on what you see happening, this could easily get, and i have great respect but this could easily get out of control and i'm worried that it already is. markets notwithstanding, my worry is that it's going to get not. what you think. >> i think lear is right in many.i just met with a group of workers that invested in

truth through pension funds and are refusing to pay back $6 million but i think they have an ally and president trump. he understands that he puts american workers first and really the tariffs, they dated always back to 1787 through 1914 for the greatest source of revenue and really funded our government. we did change the federal income tax until after that. >> with the tariffs that we don't like abroad in tariffs we don't like here, just seems weird. >> is meant to help out the industrial group and the workers. >> this is something we have to send the signal for the rest of the world. we can have exports going through canada at three 100% and not get some sort of return back. this is again in the short term we will see some changes but i think this will be healthy in the long term once again, everybody that i talked to in terms of the workers

investing with bruce and wait a second the need to be paid back and there's no pressure being put on country like peru and other countries to say but haven't even and level trading field. if we invest with you you have to vest with us. on the democratic side, a lot of these multinational deals, nasa, the trans- lentils partnership, union shape at them then and they continue shaping up to now. this is an active base for democrats and with a lot of democrats in this weird edition. >> this is not a weird position. you brought it up in your last segment. what donald trump is doing is not compromised, is alienation. he is alienating our friends all around the world but that's not what democrats want to see. we want the fair trade deals. what's happening here with working people across the country, he is raising their taxes with these tariffs and throwing them up against the wall and people here, working

people will see their cost of goods raised and make ends harder to meet. this is not coming to the table and compromising and coming to a better deal that works for all americans for this is alienation like you said. >> i subscribe to that it's not a writer left thing, i just think it's wrong what were doing here with understandable intentions. i do wonder about the impact for our farmers down the road. there are fears that the chinese stop buying or other countries stop buying them there feeling that right now. >> congress has passed the largest pending deal in our nations history. we haven't reduced our federal income tax the last year in terms of our tax plan and that's only been about appointment half. were shifting the burden to americans workers. >> what about american

farmers. in the short-term, they're going to need our exports. >> i think our view is that we need them more than -- they need us more than we need them. i just think it's a risky message to send to the world that were all that and you're not. >> why are we blowing up relationships allied relationships with justin trudeau and merkel. it just doesn't make any sense. look what's happening with the markets. >> the markets are doing quite fine. >> there up and down everything that. >> he's right about that. the markets have been patient with this. today's another example but maybe cooler heads will prevail. are you worried that for those

who have this view, government should get involved and have and off policy and that is anything but. republicans are in an upside down world. >> no, i disagree with that entirely. i related to the paris accord. everyone federal to take off our allies when we withdraw from the paris accord and now the bad deal for america. that burden was all on us but it wasn't for our allies. we mentioned in the earlier segment, course germany will rail against it when the getting a hundred billion dollars trade deficit with us. the reason our allies haven't done so already is because i've never been asked. donald trump has the political courage to take this ongoing into the midterm elections. i think it will be rewarding for the republican. >> can i bring this back to working families in this country because donald trump says he is for the american

worker but working families are struggling in that com country. united way without a study that has 40% of americans can't afford middle-class basic. that means transportation, cell phone, childcare. >> now you're just going as far field as your counterpart. >> we are not, what these tears are not going to help your average american worker and you're working families. >> german thank you very much. a spirited debate. we want to pass along some news, the former big cheese at this network will take effect on his new job immediately and we will have more after this.

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all right. what would ronald reagan do? i'm so glad i have marked weinberg here. he can help me with a couple developments in the news. not only that but trade discussion. this is a movie playing out in real-time. first off on this trade thing, i was just discussing ronald reagan took it to the japanese

for dumping computer chips on the market. were told later on he regretted that whole battle. the japanese saved but it soured relations for a while and he didn't like the way played out on the world stage. what you make of the way this is playing out. >> ultimately it didn't work but it did bother him. relations were very important to him. it wasn't always about the substance. sometimes it was about the style. alliances were important and friendships were important. communicating in a positive friendly way made a difference to him. he thought you could get more business done that way than being a bully. >> the argument has been since we tried the nice guy routine with the chinese and some of the other countries that take advantage and to little avail. here's the president heading off to montana espousing this top view of the world that

he's not going to mess around and the days of being nice and secrets are over. >> wire the days of being nice over? a sikh we us maybe, but nice, no. >> those who support his position, we've been taking advantage of and that's not nice. >> no it isn't. we may have. he may have a point on the substance. it's the style and not to mention the fact that we need the chinese more than ever if we are going to move forward with north korea. this is not the time to be alienating them. there are ways to solve problems without alienating world leaders. >> let me switch gears on nato. president reagan was maintaining our alliance thing this president would say you guys have to cough up more. four of them, including germany and belgium are not

putting in the minimum 2% to put over toward defensive leaving us with that burden. he said that's got to change. what would reagan do about that. >> it does have to change. there's no question about that. it's how it's being said. it's the badgering and the bullying. >> again, being nice and trying to politely deal with this behind-the-scenes has not worked so this is taking it to the next level. has he tried. >> he says he has. i don't know that there's much evidence of that but they call it diplomacy for reason. it's called being diplomatic, and ultimately, in a trade war, who loses? the american people. >> so your argument is there's got to be a better way. >> there has to be a better way. >> he's not wrong on the substance. i don't dispute all of the substance but it's the style.

it's being diplomatic. it's not embarrassing people are calling them names. it's not badgering. there's nothing more unifying than a common enemy and the last thing you want are our allies to be unified against us but that doesn't make the world safer. >> this president can always argue i've got the strong economy and strong markets, i've got the wind at my back in a minute take it to them in the days of being nice are gone. what you say. >> i think it's risky. it may work but there will be consequences because ultimately, at the end of the day alliances exist for reason and i can only think of what's going on in moscow and how delighted they are to see the fraying of the relationships between united states and the european allies. >> so looking at the world as it is right now, and the republican party as it is

right now, i was mentioning how odd it seems that there's no government except when banks are melting down. it does seem to typical conservative orthodoxy. >> or what is that today. the reagan conservative mold is out the window. this is a different party and different approach to governing than the reagan approach would have been. catraditional conservatism no. this is almost a road rage dominated the fact were getting mad at people is a routine occurrence and that's not good. >> the largest tax cut in american history were ronald reagan. does it make you chafe when you hear this president say his are. >> yes. this is a credit taking president. even if they are worth more, so what. why about him?

it's not a competition between presidents. it's a job to make life better for the american people. so, credit taking is something i guess were getting used to, but yes it makes me chafe a little. good seeing you. we will keep following this. the president is going to be crowing about a lot of these achievements and he'll be in montana what the message for montana resident that senator has been saying and doing awful things to get reelected. don't buy a word of it. he will be mentioning no doubt some of the things we were chatting about. the dow is up 180. more after this. polident is specifically designed to clean a denture. the wonderful thing about polident is the fact that it's very, very tough on bacteria, yet it's very gentle on the denture itself. polident's 4 in 1 cleaning system consists of 4 powerful ingredients that work together to deep clean your denture in hard to reach places. it kills 99.99% of odor causing bacteria and it helps to remove stains.

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right. drugmakers have been raising the prices in the case of just one company, 40 different drugs affected here, others following suit the timing is interesting. christina is here on all of

that. >> we see the timing is interesting because just a month ago the administration said they had a plan in place to reduce the price of drugs however we haven't really heard any details. the latest report came from wells fargo saying that roughly 100 for drug prices have increased just in the month of june and the first two days of july. so which drugs are we talking about? i pulled out a few example. the first is viagra. you're seeing that go up almost 20% to $88.46. this is just within six months. you're seeing the same thing for an eyedropper glaucoma up almost 20% as well $107.5. again, within a six-month period and last but not least you have a drug for multiple sclerosis and they are seeing their price of nine and half% up to almost $54 but it's not just them. there's a cancer drug that was

$19000 a month. pfizer was the company you are mentioning, they have increased the price of about 41 drugs overall. this begs the question, are they going to listen to the administration? these drug companies actually lower the prices of their drugs. there's no rule in place, no penalty or sanctions, there's nothing forcing these drug companies to lower th the prices which is why you're seeing them increase their drugs for the second time this year. pfizer responded and said these prices i just listed, those are list prices but if you look the net price, if you take out the rebates and discounts, it's not so high of an increase. there also said they have a patient assistant program to help 8500 patients with the drugs just last year. >> so if they lower prices they would've taken the leapfrog moment to raise them before they lowered them,

would they still be ahead in the game if they do? >> what the promise, i think there is only one example, they reduce the price of five drugs, that's it. they reduced a large amount between 16 and 44% but these are older versions of their drugs that i haven't seen any other major companies come out saying they lower the prices. maybe you have? >> no, i have not. where are you by the way? are we trying to save on electricity costs? >> this is the foxbusiness news room. i've been shifted over here but i guess they didn't want me in studio but. >> i'm just wondering, you don't see us willy-nilly wasting money. >> we are saving on electricity. >> by setting off every single light on the set. i'm only joking. thank you very much. meanwhile the opec governor

overran is saying the rate were going, oil could be up to a hundred dollars a barrel and you can blame not iran but the president of the united states. their argument is by us time to isolate ran and they asked that the saudi's production, it's actually having the reverse effect and prices or cannot go higher. what do you think. >> is kind of been the perfect storm. we have sanctions against it ran, venezuela has their problems of their output has increased a lot, for the more you have civil unrest in libya and bottlenecking issues in canada you had a facility go off-line for overheating. you can pick more things to go wrong on the supply side than what's going on right now. >> but normally come you can help me with this, normally even when you announce that were going to have more supply coming to the market, whether it's the saudi's or the russians committed to increasing production, it

would at least, psychologically have prices going down. i know you mentioned some of these other anomalies. is it is not working that way and i think the fact that it was so modest, the actual output that they're going to increase by, they thought it would be a lot more. we also have to think about saudi arabia wants to take their state owned oil company public sometime in the near future. they want higher oil prices. i think that's one of the unset things to michael wright. we have already threatened to go after any country that takes iranian oil. we do not, but this sort of isolate them and punish those countries that do business and that's easier said than done. where do you see this going? >> my guess is if you look at the chart of oil prices, it looks like it's very volatile but i think you could see a lot more volatility in the

short term but the bigger picture is not only is oil going to go higher but i have a lot more to do with demand. we have global growth around the world, global demand is going up. we should see another $1.4 million, barrels a day that are needed in the next 12 months. while demand is going up which means i have to think prices are deafly going higher. >> for gasoline what would the impact be? >> and think well prices at the pump will go higher as well. it's just the nature of the beast. >> for all that wonderful news, thank you very much. so is good having you. been a very good reader these markets but will keep an eye on that. we'll also keep an eye on the president of the united states is leaving for montana making a pitch that voters should say no to reelecting the senator. that could be a big factor of his remarks and how that reverberates.

well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

a right, imagine being a democratic center in montana, a state the president one by 21 points. europe for reelection in the president has decided to make you a target because he doesn't flip over your parent to see a tv host in the conservative millennial alan, it's going to get interesting later on tonight. what do you envision? >> i think we are ready know what's going to happen based on president trump's past comments. he already attacked him at a rally in michigan in april. he also tweeted about him, we know he holds a personal grudge against him for supposedly manipulating or encouraging jackson to drop out of the running and i know president trump has expressed

some higher about that. we know he's going to attack him by the probably lump them in with democrats in general whose insanity seems to be growing by the day so he will leverage all these comments and probably going to want him into that purpose if it's effective. to get nasty? he indicated he knew things about him that you'd be shocked to find out what i'm paraphrasing. what was he talking about? maybe it will come up a little more tonight. this could also be a blocking tactic that he might not know anything about him. for his part he seems to be playing it pretty cool. he put out that the full-page ad and radio ad saying thank you, mr. president for supporting all of these bills i helped past. he doesn't seem to be to rul worried about it. his approval rating is pretty good. it was about 56% last i checked. even though this is a trumps state, he is feeling pretty

good. he doesn't seem worried about what the president had on him. >> the president is very convincing make a difference in this race and true to form in a lot of the key contest that come to pass, his candidates have one. either those he supported of those who come back and support him. so he does seem to have the midas touch for some of these candidates going forward. how actively will republicans or those candidates use him? there was a time when they kept a distance but it doesn't seem that way now. >> rose and dale is certainly using him and he has promised to support the president to make america great again and be strong on time and borders westchester has said all support the president when i want to support the president, i am here for montana where roosevelt said trumps agenda is what is best for montana and i'm pretty much going to support that the matter what. resin dell does believe that will help him and that's kind

of what we've seen in previous elections. resin dell is using that tactic and hopefully it will work for him come november. we shall see. good seeing you. you are looking at joint base andrews. he's expected momentarily to take flight. also keeping on top of what will be the release of the fed minutes from the june meeting in which they hiked interest rates a quarter of a point and telegraphed that a couple more hikes were coming. this was all before this trading really heated up. now the prospect of higher prices, potentially slowing the economy and how the fed was looking at that six weeks ago is coming up after this.

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the president was seen leaving a few minutes ago. he will be busy this summer and into the fall fall. a few things could tip the balance of power. he's very confident that in the senate actually pick up seats and he's going to do his darndest to remove one democrat. that's another tester and that will be included in his

remarks. in the meantime, couple other development, waiting for the fed minutes that are coming from the meeting before this trade war.as he did as it's now getting paid were hours away. the markets don't seem to care too much. if the trade thing is a worry, the markets have a funny way of showing it. >> sort of. i think today's rally is partly due in fact that maybe there's a few stories out there late morning an early afternoon that maybe the trump administration is willing to give in a little bit when it comes to tariffs on european cars. >> that's how it started that they might blink a little bit. >> but then the rally come as a result of that but i still think investors are having a tough timing gauging how important is it.

it is real. as of midnight tonight, it is by any definition of "trade war. i'd be careful with that. i think the bond market is pricing a little uncertainty. they said sinking to its narrowest, always contributing, thank you charlie brady. of course signaling to all of u us. >> must 11 years the spread between the tenure, the yields come the lowest since 2007 which, just by the date begins to make some people anxious saying when that happens it often predicts a recession a year or two away but it's just like a lot of investors are anxious in this thing what can i buy instead of stocks in the going into bonds and so there are some people saying will

this combination of the fed that keeps increasing along with oil prices going higher and trade tips that could become trade wa war, maybe that will set us up to be crunched in the second half of this year. >> just about everything else is great from a macro perspective in the unemployment picture, growth is coming back so the economy is in very good shape. they've always marked the fed minutes, he never misses the fed minute but it should be interesting to see, before the last meeting, what about this trade thing. will it be a bigger deal down the line. >> it does seemed like a perverse argument that this trade thing could actually be good and that might limit how many times the fred can raise rates. >> if there worried enough, and to your point about the european car and exports, our

industries are so interconnected at this point, we talked about this with a parent of mercedes has invested billion dollars in a plant in alabama. the supply chain, even across asia, europe, asia, u.s., they're all pretty late in the auto sector so there are ways and i think the fact that china didn't strike first because of china wanted to start on their friday, it would've basically been now. >> but china is doing some weird stuff. it's all these reports that the stringent review process takes longer, they let food sit in a container until it's no longer usable or edible, they do things like that that would show up in a formal tit for tat, but they know how to play this game and treat them the long game and they will do little things like that that can disrupt the by ginger talking about, but also

formally retaliate. saving face is always very important so they're not going to let the americans get a leg up by saying you put arabs on and we didn't do anything about it. i know they say the chinese have more to lose than we do and that may be true over the long haul but that. >> are you hearing that the chinese have become angry at americans? their hearing it through their own governmental, that might stick. >> to some extent yes. when we talk about when i was in beijing and there is a person i talked to who is close to the government who was almost angry in saying that fighting back on every little point, things that we assume are true that the chinese steel the intellectual property, pretty much anyone in the global business property would assume that's

true but this person was fighting back on that. they were fighting back vigorously thing that doesn't happen. there is an aggressiveness here, and also an idea that they're willing to play this out over a long period of time there's also been some reporting where some ministers have been saying were not going to win this trade war, the u.s. is more self-contained and we consume something like 80% of what they make. china does have this rising middle class is not at all what we would consider consumer driven class. >> there is a talk earlier that we might be positioning ourselves to be a little more pragmatic. >> if we do 36 billion they will do 36 billion. they will match whatever we do. they've been very open.

>> in oxford economics but other reporting of a global trade war happen. [inaudible] it could cost the global economy 800 billion. there has been financial technology development in china and j.p. morgan chase has said all the swiss banks are through an emeritus through so there is a lot of playing the headline games behind the scene. i have brought a picture, i forgot to send them in. maybe tomorrow we can take a look. did you get any gifts from him? guys, thank you both very much. very smart follow up on

things. that oxford thing. >> and ithaca. okay, the president is in route to montana right now. only a few months away from the fed minutes. more after this. . .

. . i'm to your bumper, cause....

i don't think enough people heard about your big day. but nothing says "we got married" like a 12 ounce piece of scrap metal. yo! we got married! honk if you like joint assets. now you're so busy soaking up all this attention, you don't see the car in front of you. and if i can crash your "perfect day", imagine what i can do to the rest of 'em. so get allstate, and be better protected from mayhem. like me. neil: all right. little more than 10 hours away from implementation of those tariffs we're slapping on china, $34 billion worth.

chinese quickly responding no doubt after that. anyone's guess where this goes. we're getting details very soon, seconds away from the fed minutes, last big pow-wow h wow adam: i'm adam shapiro in for trish regan. welcome to "the intelligence report." insight to the fed's decision to raise interest rates last month. we'll get new information revealing central bake outlook for second half of 2018 as trade tensions escalate. we'll keep eye on that. let you know about our coverage. not only get to the minutes as soon as we go to them as the embargo lift, we'll have follow up from the floor of the new

york stock exchange. we have nicole petallides standing by. we have susan li talking about the potential trade war in china. she spent 10 years in asia. danielle dimartino former fed official joins us. we want to go to jennifer schoenberg for the fed minutes. >> fed views the economy very strong so several participants see more room in the job market to bring in more idle workers that the unemployment rates put on the minutes from the showed from last month. they expect inflation to run a bit above 2%. hope that it is sustainably grow it to the 2% goal. on trade, most participants are very worried about risks and uncertainty trade policy. it could hurt business spending an investment. in fact business contacts in some districts noted that they are postponing or scaling back business investment already on account of tariffs.