that's where we're headed. he gave out some positive views on trade. there could be a separate trade deal with mexico, separate trade deal with canada. here come the europeans on july the 25th. that's positive. the markets responding. charles, sitting in for neil. charles it is yours. >> welcome to "cavuto: coast to coast." i'm charles payne in for neil cavuto. president trump meeting with his cabinet. trump on twitter earlier accusing critics wanting war with russia overseeing him get along with putin. to former cia moscow station chief, daniel hoffman on fallout from all of this. you were in helsinki for the summit. the postmortem continues. outrage continues and president trump making this point yesterday that you know, when he came into office, one of the big push backs, criticism he was a war hawk, woe take us into war with north korea, with russia.

he takes the opposite stance i want to get along with russia, coming under heavy amount of criticism. where do you see this? >> well, first of all what i would highlight based on my experience in russia where i served for five years we've got really multifaceted relationship. goes back decades and decades. really good example is the second world war. we collaborated with the soviets against nazi germany while at the same time the soviets were stealing our nuclear secrets. while we concurrently found areas we work together, such as arms control, nuclear proliferation, maybe limited tactical collaboration in syria and north korea, at the same time we have to deter russian aggressive espionage operations including their intrusions into our cyberspace which ambassador bolton rightly called in my view an act of war.

>> interference with the election was under obama administration you about both the prior and current administration made this a major issue. meantime, what do you make of actions that president trump has taken? the javelin missile system to ukraine. >> right. >> this extraordinary missile defense shield to poland and other nations. the expelling 60 diplomats. >> yep. >> feels actions have been robust. >> actions have been robust, that is absolutely for sure. on the other side, particularly from john brennan we're seeing wildly exaggerated, partisan, hyperbole, i don't think that does the debate any good but what i would argue i think the president needs to be strong on vladmir putin. i think he could have been stronger at the summit. i think, you know, i think it would have been helpful to said to vladmir putin. i'm not asking whether you meld delled. i know you meddled. you know i enforce red lines. if you continue to do that then

i am going to take action. it is very hard to take strong action of the sort that our cyber command has been talking about yesterday against russia without saying publicly we're holding russia accountable and being really strong about it. i think that is where the president is headed now based on his clarification today about what he said during the summit. i hope we continue to go in that direction. >> daniel, so the audience knows, in case you referenced john brennan, he put out a tweet, he made this comment several times on television that donald trump's press conference, performance in helsinki rises to, exceeds the thresholds much hue crimes and misdemeanors. it was nothing short of treasonous. i like ian bremer came back, treason can only be committed of enemy of united states, when the enemy is in declare or open war. he goes on to say, stop with all the treason talk. certainly i think outrage on the

other side is excessive to what degree do you think the words at the summit and missed opportunity at the summit could embolden vladmir putin to maybe you know, expand on his dreams reconstituting ussr, to a degree. having more power in the middle east or even being a threat to countries like poland? >> vladmir putin wants to divide us domestically. he already knows we have a lot of partisan bickering going on. look at the evidence from john brennan. he wants to drive a wedge between the united states and our allies, particularly nato allies and germany in particular. ukraine, what really threatens vladmir putin the most is democracy. nothing scares him more than a country like ukraine with a sizable russian population, commitment to the rule of law, tilting towards the european union and nato. we need to be strong about defending ukraine's territorial integrity. vladmir putin is up to level 11

targeting nights with see per espionages which he came from the kgb. >> before i let you go, great point with respect to dividing america. i made that as well. everyone says he played trump on press conference. i think he played america. i think he played our press. he said i wanted trump to win. he knew it was equivalent of kicking an anthill, we would go crazy and pointing fingers and divisiveness would be more so. you mentioned ukraine. i talked about the javelin missiles. do you believe vladmir putin knows that we would come to the aid of ukraine now? or that he feels more threatened by a president trump than he did with president obama? >> well, i, i will say this. president trump has an extraordinary team around him with secretary pompeo and john bolton and secretary of defense mattis. that's an all-star team and i think russia is rightfully so

concerned about our national security opposing them worldwide where we need to. putin has been resurgent, including in our own backyard in latin america. we have the team to deal with him. no question about that. >> daniel hoffman. thank you very much. appreciate it. >> thank you. >> speaking of that team, secretary of state mike pompeo to appear before senate foreign relations committee next week. republicans will have a chance to grill him over the summit. critics are saying hey, the gop, they're not really speaking out enough about president trump. to former bush 43 deputy assistant defense secretary peter brookes. you know, some, peter, let's be frank, some people on the right in the republican party who are speaking out against trump but they have been from day one. a lot of them were considered never trumpers. some like bob corker. he put out a statement, the dam is finally break thankfully as the president taxes americans with tariffs, pushes away our allies and further strengthens

putin the time for congress to up to take back our legislation. we have legislation to do that. let's vote. there is pushback, but critics would like to see more. >> that's their choice. certainly people that, on both sides can speak out about this but once again we have to unpack this, charles, and look at the summit for what it was. you and i talked about this. i think it is critically important we look at the big picture. this may be a long journey that may lead to better relations. it may not as well. to tech discuss on few questions of question and answer period between a one-on-one with president putin and president trump. we had working lunch with secretary of state pompeo, and kelly and counterparts on the russian side. this is what they get at next week when they bring in

secretary pompeo before the senate foreign relations committee. they could say what they want. this is a democracy and i think we're all better off airing of views on this as we move forward as a country to deal with a very tough problem and that is russia. >> peter there were scheduled war games with russia and china, going on during the 25th. it will get a lot more attention than normal. when will be the opportunity for president trump and his administration to do or take actions would sort of quell the notion that he is not tough on russia? >> look at policy. your previous guest talked about this. there has been tough policy it was much tougher than obama on russia. so i expect mike pompeo, secretary pompeo will step up to say no change to the policy at least currently. that is what it looks like. the president came out of the summit said there is no change in policy and it's a very tough policy and you mentioned the other things as well. look, there will be a lot -- this will be looked at very

closely. it should be. congress has a role doing oversight on a bipartisan basis to look at policies of any executive branch, whether democratic or republican. >> right. >> there will be a lot of discussion about this as we move forward and russia is a very tough problem like north korea. there will be a lot of heavy lifting to make any progress other than the diplomatic opening president trump presented so far. >> peter brookes. thank you so much. always appreciate it. >> thank you. >> we're awaiting new comments from president trump's cabinet meeting. we'll bring them as soon as we get them. catch my great show tonight because we are making money folks. hear all the stuff, all the craziness? we'll hear about an amazing story the you see that kid there, what he did is an inspiration to everyone. get ready to choke up and make some cash, "making money" tonight at 6:00 p.m. ♪ my father passed this truck down to me,

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"washington free beacon" and david asman. nasdaq started today in record territory. the other major indices are not doing too bad. we're in the midst of earnings season, so far out of all s&p companies, only one, only one negatively pointed to tariffs. the others are saying things are growing great. the pundits keep telling us to be worried. where do we stand? >> they're not reacting negatively because this so-called trade war are very targeted. things are selective with things like water boilers and x-ray machines. they're not hitting consumer products. trump administration is concerned about negative impact on his base if they do start wide range of tariffs that will affect consumer prices and make them, consumers have to spend more. right now we're having targeted, hitting china from very selective things, putting pressure on.

hey, we have $200 billion of goods we can add tariffs to. we have now 34 billion. pretty reasonable stance. markets reacting accordingly. charles: david, that is a grade point. peter navarro told me, there would be something special, a carveout for farmers if indeed there is a prolonged battle. you know yesterday during testimony from the federal reserve it was all about tariffs and the democrats, i thought it was sort of disingenuous when i heard joe donnelly for instance, talk about where corn prices are, they were much lower several times during the obama administration. same thing with soybean prices. we all want to help farmers, china knows that by targeting them, all they're doing is kicking up political dissent here. >> charlie, it is disingenuous for peter navarro calling out carveouts for farmers because sonny perdue is looking for

subsidies for farmers. rather than doing carveouts, they're essentially turning farmers into welfare recipients. thatthat is a very dangerous tr. billions of something going through the commodity credit corporation which something set up way back during the great redeck during 1930s. it is kind of dormant. they can spend up $30 billion a year for farmers if they are hit hard for tariffs. we don't want the trade tariffs to turn farmers into bigger welfare recipients than they already are. charles: ali, i get that point but having targeted responses, not just china by the way, china, canada, even the eu, by specifically targeting trump states and trump voters the irony here they're violating world trade organization rules but it is pretty clear they're trying to create political dissent, rather than focus on economic arguments here. >> they are and so far that is not really working because we

know in the 15 states most affected by these tariffs, who also voted for donald trump, his approval rating is 57% which is actually 5% more than it was in 2016. even though most voters care about the economy, maybe more than any other issue going into the midterm election, only about 4% see trade as a very important issue. that could definitely change depending on what tangibly happens to these counties and states that have been targeted by chinese tariffs, however, if people don't actually feel negative effects, i think it is going to be probably pretty irrelevant who people will vote for in the midterms. charles: meantime, liz, we did have news just coming out of the white house's cabinet meeting about the e.u. commissioner coming over here. larry kudlow suggested that at meeting that he was going to bring something with him a compromise, some sort of a deal. we saw german automakers suggest

there should be no tariffs. maybe we get to inflection point we get beyond sabre-rattling and get to resolution. >> hopefully so. the point of all the tough talk, get people to the negotiating table to get a better deal. which when you look at china since they entered the world trade organization, bill clinton's backing, his idea, we've seen our trade deficit grow from 40 some odd billion to over 370 billion last year. so it is a big problem that needs to be addressed. i think that is why the trump administration, he promised voters, this is one of the big issues he ran on. a lot of issues why he got a lot of bernie sanders support. what he said he would do, he is trying to follow through to get the deficit more in balance. >> can i jump in? liz makes a great point. now is the time for deal-making. we had this deal between japan and european union with a lot of trade deals they're going down to zero tariffs. we brought up the point we could

have zero tariffs on cars between the eu and the united states. let's hop that happens because japan and the eu just did it. they did it on whole range of issues not just cars but other manufacturing goods, on commodities as well. it is time. we've done a lot of tough stuff speaking tough language spoken not only with european union and china and others. now it is time to make the deals because europeans and others like japan are beginning to make those deals. charles: allie, coming into the year whole world is growing pretty nicely. america seems growing better than everyone else. all the global leaders would love the economy to pick back up globally so they could all share in the prosperity. >> exactly. obviously a slowing global economy is not ultimately and long term good for the united states even though we're doing very well right now. so the goal is that this

so-called trade war or the tough trade policies that we have with china, with europe, with canada, are going to work out not just in our favor but everyone's favor and i think that is president trump's goal. i have been kind of against the tariffs for a while now but if it accomplishes free trade but fair trade i think we'll all be happy. >> can i say one other thing? manufacturing is running like crazy right now in the united states. the whole manufacturing -- the rust belt has turned into a gold mine as they received incentives they needed, not only the tax cuts but also the regulation cuts. there was just a headline in the "wall street journal," manufacturing sector hits sweet spot. next week we're going to see earnings from harley-davidson, 3m, a lot of manufacturing companies might be hit eventually with tariffs. they should do very well based on what has happened. the question is going forward into next year what will happen and that's when they could be hurt if we don't start making some trade deals quickly. charles: david, i've been

talking about the manufacturing renaissance for a long time. yesterday in the industrial production numbers, if you ever get a chance -- >> incredible. charles: with mining and production and capacity. 360,000 manufacturing jobs back. look at midwestern states. unemployment -- >> it is renaissance. charles: with two handles. we're in the midst of a renaissance without a doubt. thank you all very much. appreciate it. we are waiting president trump, some more comments from the cabinet meeting. we're hearing there are some new talk now, some remarks about tax reform in that meeting. remember they're looking at tax cuts 2.0. also the lawsuit against the tax law, that is wasting taxpayer money. why democrats are pushing back, and getting pushed back. more after this. ♪ the right coverage, you could be paying for that pricey love band yourself. so get an allstate agent, and be better protected from mayhem. like me. ♪

charles: awaiting president trump's comments from this cabinet meeting. as soon as we get them we'll bring them to you. meanwhile to the lawsuit against the tax law. four democratic states suing washington claiming tax reform

is unfairly targeting high-taxed states but former new york lieutenant governor betsy mccaughey says this lawsuit is costing taxpayers. explain. >> it is. it is a pr stunt, charles, and taxpayers will foot the bill for this litigation boondoggle. the litigants don't really have a legal leg to stand on because already the united states supreme court ruled not once, but twice, that congress decides what's deductible and congress can take away those deductions as well. in 1934 they ruled that. in 1988 the federal government can tax local bonds. it is clear the united states treasury, the defendant in this lawsuit, will win. charles: isn't, one of the arguments during the debate over final tax bill that by allowing these states, i happen to live in one of them, you too, these

writeoffs, these other states were defacto supporting them, right? in other words, if you live in a state where you don't have these massive mortgage writeoffs and thinks luke that -- >> you would be paying more of your income in taxes, exactly. charles: right. >> real issue here, charles is not whether these state taxes are deductible. they're too darn high. we're living in tax hell states and fortunately the new tax law by reducing, capping the deductibility of state and local taxes is putting pressure on these blue state pols to finally get their own fiscal -- charles: you think so? the in new jersey the new governor added taxes. he added a small business tax. he wants to make it a sanctuary state. he has to fund that i think they cross -- >> they're in la-la land there. connecticut always a blue state for last decade or more. now they have a gubernatorial race, it is a tossup for the

first time because connecticut residents are so disgruntled. charles: betsy we have two minutes to take comments from the white house. i want to get your thoughts, tariff, tax, trade. 2.0 there will be a tradeoff. if we want to make certain portions of tax bill permanent, can blue states come back and say give us a break, maybe if you cap mortgages, give us more wiggle room? a lot of people their taxes did actually go up. >> their taxes went up but we want to keep the pressure on those pols to start reducing spending in those states. that is ultimately the goal and politically, this is very good for republicans because they want to see those high-spending pols replaced by politicians who have more fiscal responsibility. charles: these states, defacto, just giant welfare petri dishes

they run amok. they still have the highest income inequality numbers, they have the most amount of homelessness. they have the most discouraged people living there. >> by the way they will have less and less influence in congress because as the population flees each of these states, their congressional representation also diminishes. charles: what would be the key he to you, tax cut 2.? real quick before we go to trump, what do you want to see? >> i want to see more incentives to invest and hire in the united states. charles: here is president trump. >> i do think so. thank you all very much. appreciate it. >> is russia still targeting the u.s., mr. president? >> thank you. >> let's make your way out. >> press, let's go. >> make your way out, everybody. we're doing very well. we're doing very well, probably as well as anybody has ever done

with russia and there has been no president ever as tough as i have been on russia. all you have to do is look at numbers, look what we've done, look at sanctions, look at ambassadors not there. look at unfortunately what happened in syria recently. and i think president putin knows that better than anybody, certainly a lot better than the media. he understands it. he is not happy about it, and he shouldn't be happy about it, because there has never been a president as tough on russia as i have been. okay. thank you very much. [shouting questions] charles: so that, that was the end of the press conference. president trump, as you can see defending stance on russia, betsy. get reaction to how it played out, continued quote-unquote outrage. >> it is very unfortunate mueller actually distracted from the key goals of this meeting with vladmir putin. the president had -- charles: how did he do that?

>> because he release this is indictment just before the meeting. charles: there is report out of bloomberg that was okay with trump though, it could have given him more leverage going into the meetings. listen, they had 2 1/2 hour private meeting more substantive than the press conference. >> that's right. but all the coverage was suggesting that trump should throw away the agenda which included things like iran's nuclearization, the crisis in syria, russian incursions on its borders. all of those are very important eschews that we're already on the agenda. to expect trump to, focus instead on this rinky-dink indictment. that is what it is. i have read three indictments of these russians. let me tell you about reading about the 13 stooges. what did these russians do? they created twitter accounts and facebook postings spear phishing,. >> they said thing likes vote

for jill stein. won't be wasted support of the these kind of political dirty tricks have been going on since the beginning of our country. it is part and parcel of our politics. this is not election meddling this is meddling in public opinion. there was absolutely no demonstration -- charles: you say there is voting difference? >> oh, yeah. charles: you think their ultimate goal is? to your point, they had ads favorable to hillary and jill stein. >> bernie sanders, ted cruz. charles: in a nation they know already, we have a lot of issues here with respect to -- >> do you think russians are only people doing this? let me tell you back in 1796 french did exactly same thing, setting up societies all across the states to influence people to try to elect thomas jefferson president instead of john adams because they thought jefferson would side with france in the war against great britain. 1940, the british intervened with the republican primary,

meddling to avoid nomination of isolationist who wouldn't go to war against the nazis. this always happens but we never said it was election meddling before. we recognize it was influencing public opinion. it is different from toying with the voting machines or posing as american citizens and casting illegitimate ballots. that's election meddling. charles: bottom line, no sane person is saying that it had any real influence on the outcome. we have to leave it there. i love the walk through history though. very impressive. thanks a lot, betsy. the question is the eu going to come to the table on trade? we're seeing signs that president trump's tough love on tariffs, that they're working. more right after this. ♪ but i'm relentless too. mbc doesn't take a day off, and neither will i. and i treat my mbc with new everyday verzenio- the only one of its kind that can be taken every day.

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charles: one of our big tech companies with a fine and saying a message to others. the eu imposing a

5 billion-dollar fine over android antitrust concerns. more how google is reacting next hour. breaking news on sinclair's efforts to save this merger with tribune. charlie gasparino in washington with more. charlie. >> caught me in middle of a yawn. i'm not bored by your broadcast. i didn't know you were coming to me that soon. sinclair is pulling part of the application with the federal communications commission. we understand part of that thing will be pulled, readdressed. they will basically amend the way they are divesting from certain stations to address the fcc's concerns which by wait, didn't just put a damper, almost culled this deal to buy tribune, which would create, if they could buy tribune, one of the biggest broadcast networks out there. a broadcast network, would compete with our more right-leaning conservative programing. that is what they were trying to do. fcc said no on the divestiture

plan. charles, in the media world this is a big deal. sinclair was looking to literally compete with fox news, cnn, msnbc, you name it. they were doing it on the local level to get penetration of 70% of all, all homes on a local basis and on top of that feeding it with some conservative commentary. the fcc divestiture plan, they had to divest from some networks to make this thing work was not legal. they were forcing this to a committee hearing. sinclair came back today, rejiggered its deal. now here is the rub, what we do know is that part of this whole thing, you could see this within sinclair's statements today, they were being completely honest and transparent with the fcc, the fcc is investigating sinclair whether they are candidate with the commission about their divestiture plan. if the fcc says they were not candidate, if this thing goes

before administrative law judge the way sin klauer was divesting from the networks, i tell you this is funky divestiture, if you look at it. they were divesting from certain networks that is actually controlling. you have to look this stuff up. i don't have enough time in three minutes to explain it. if the fcc with administrative law judge concludes they have not been candid, that is a real problem for the deal. forget about that doj antitrust was poised to approve. there is separate court case whether to approve it or not on other issues. there has been civil lawsuits, litigation there on this deal but if the fcc says no to this, primarily because you were not candid in your application you got a real problem. we should point out we asked for a statement from sinclair, they declined to comment but they put out a public statement earlier today, they reiterated their candidness with the fcc. again, this thing is still got a long way to play out but the fcc concludes you're not candid with

them, there is a good chance you're not going to get the deal done and that would be a huge blow because i'll tell you, charles, this company was poised to compete with all the big guys, us, cnn, msnbc, by controlling local broadcast networks, 70% of all homes. they were going to essentially filter right-leaning opinion through those, through that local broadcast. back to you. charles: buddy, thanks a lot. the 52-week range is high of 40 bucks. the stock now 27. that speaks to what charlie was talking about. to tough trade talk leading to talks, right? we had sabre-rattling we'll we'll see actual meetings there. is a lot of excitement with the president meeting with the eu next week to discuss. i want to go to market watcher larry glazer on this. larry you think this is proof trade fears are overblown at this point? >> charles, this may have

started out looking like risky form of trade chicken but it is looking like unconventional let's make a deal with the president. if he is individually picking up europe, mexico, china, bring these players to the table, he will be emboldened with the political clout that he needs. add in tax cuts 2.0 looming ahead of midterm elections, the market has it right to be excited about some of these things coming to fruition. i think a lot of fears may have been misplaced in the market. we see the dow doesn't lie. averages are showing a lot of strength, very much with good reason. charles: larry, a lot of people come on it has been sideways since it began, not necessarily, we're up 1500 points from the march low, that is not bad. nasdaq all-time high. it is a game of chicken. of course that means at some point someone has to blink. i do believe we have leverage over the rest of the world. i look at china's market, i like

at china's credit problems, i like at their debt problems, i think we would quote-unquote win this. what would be the victory for president trump? there was 70 billion-dollar offer from china that the administration dismissed out of hand? >> charles, you're right on the money on this do you really think that mexico, canada, europe, wants to get in a trade war with the united states? nobody wants that they would have to be crazy to get in a trade war. the president knows it. why he is in the catbird seat in the negotiations. if he is successful he has all the leverage with china. emerging markets are very, have weak. they're fearful of internal problems with china if they have economic issues. our problem right now we don't have any labor. our unemployment rate is so low and our economy continues to grow. markets are cheaper than january 1st. no doubt we have concerns. areas where the market may be overvalued. short-term yields are moving up, which is a sign of strength in the economy right now. if we get through some trade

negotiations with success and with leverage, that seems to be coming into play right now in the most breaking news, i think we'll be in very well-positioned place in the economy going into the fall and midterm elections. charles: larry, to your point, i want to he reiterate to the audience, earlier today, there was a statement that e.u. commissioner, juncker will bring significant trade offer to trump next week. let me ask you, comments coming from jay powell yesterday and today suggest, he is suggesting that this economic revival that we're in can last several years and that the fed will do their part not to mess it up. >> yeah. look, no doubt, look, trade is a fearful issue, but when you look at underlying strength on main street and u.s. economy which is what fed chairman powell is talking about, tax cuts are gift that keeps on giving no. one is happy with everything happening here. no one is happy with all of these policies but when you look at them and look at the

aggregate of them, kudlow talking about 4% growth going forward and potential benefit m&a and stock buyback as direct result of tax policy, could stimulate u.s. economy in fall and going forward in the years to come. that is positive story getting pushed to the back pages as everyone is focusing unfortunately on all the negatives right now. charles: buybacks were up 63% in the first quarter. >> huge. charles: but money allocated to capital improvement is up significancely in manufacturing. larry, always appreciate it. >> my pleasure, charles. charles: critics obsessed with russia, ignoring push for tax reform 2.0. fox business of course we're not. a key lawmaker looking to make those cuts permanent right after this. ♪ho liberty mutual won't raise their rates

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charles: netflix shares back above correction level but of course still having a big down week. nicole petallides, she has the latest from the new york stock exchange. nicole. >> charles, we watched that 377-point7 level that would be correction territory for netflix. i've been talking to a couple analysts, just now, 12:48 just got in my latest note because i've been talking with justin patterson at raymond james.

people were concerned about the numbers. they didn't have the subscriber growth. he said the numbers and results could be lumpy in nature. share price had appropriate correction he says, but the long-term growth story is very much intact for netflix. it is well-positioned for 35% revenue growth in 2018 and 2019. we thank him. he is more cautious on this one and concerned about intense competition abroad. getting to the bank stocks, look at these, netflix appears fully valued on relative to the other bank names. he is not as positive. amazon is down .1% but it did hit all-time high earlier today. prime day was a big hit. they had the most sales ever. it beat out black friday. it beat outside per monday. it beat out last year's prime day. it was 36 hours, they did

particularly well with that. google slightly higher despite the e.u. antitrust fine of 5 billion. of course they will appeal that one. facebook up about 41 cents right now. charles. charles: nicole, thank you very much. always appreciate it. by now you heard critics pounce on what president trump said or probably didn't say during the press conference with vladmir putin and of course, the apology yesterday, or the correction, clarification, a lot of folks said that didn't go far enough but there is a little coverage what the meeting was actually about. yesterday we're talking about tax reform 2.0. ohio republican congressman jim renacci was in that room. he is running for senate in ohio. we called his opponent, so, so far we yet to hear back from him. congressman, let me start with you, first and foremost i know president trump doesn't like using the word reform so i try not to use it. tax cuts, money-making whatever you call it, what's it look

like? there are a lot of opinions. how is it coming along so far? >> look the tax cuts and jobs bill is working. it is working in ohio as i travel the state. shawl -- small businesses are talking bin creasing employment and raising wages, and they're doing it. they'regying out bonuses and reinvesting into their company. we have over 600,000 more employees in the workforce because of all the growth across the country. that is a labor statistic that just came out. when you look at this you know we're getting what we need, jobs, economy is growing but also the stock market is growing. i heard you talking earlier. that helps pensioneers, police, firefighters, all the pensions growing at same time. this gives people consumer confidence to spend more money which continues to grow the economy. right now we're talking about 2.0, making this permanent. charles: let's go beyond the perfectly sy -- permanency of ia

issue some have, it focused overwhelmingly on corporate america. to your point we see it paying dividends. capital investment up. we see hiring up. now the second round, you just mentioned small businesses. i'm hearing things like favorable tax treatment for crowd funding. maybe ways of allowing small businesses to offer their versions of 401(k)s, those kind of things that can help small businesses lure better employees and grow their business. will that be a central focus as well? >> two points to what you said. we have to make sure the individual side is permanent. we need to make sure tax cuts are permanent across the board. we have the other side we need to make sure permanency, including the individual side and s-corps and all those. mach sure everybody has certainty and predictability going forward. at the same time we have to make sure individual tax cuts are solid, guaranteed going forward

so people can make decisions. we can't let the doubling of the standard deduction, for instance, get cut back in half in seven years. people need to know what the tax liabilities will be. so even individual have the confidence and certainty to continue to spend money to keep consumer confidence going. charles: another issue i know is really deep, that you believe in a lot, sort of notion retraining our workers, training them properly for the current economic environment. we know tomorrow there will be a big deal at the white house. ceo of ibm calls them new collar jobs. you need more than a high school diploma but not a college degree. in a state like ohio i think that is extremely important. how do you see that coming along? >> charles, i've been fighting for that for couple years. we left those individuals who don't go to college behind. we need to change those policies. i applaud ivanka trump and her role out of workforce development. that is what it is all about. those that don't go to college, you can still make money, still live the american dream and not go to college. i say that all the time.

i talk about plumbers, electricians, lived american dream, started their own business, never went to college. we need to bring the vo-tech education and training not only back into high school but back into america and make sure those individuals know they can live the american dream without going to college. charles: this is a tough one for conservatives always said, hey, federal government should not be involved in education on a local level but at least they can send a message and i agree with you, that it's crazy we have some welding jobs going unfilled. we have some jobs, good, great-paying jobs, come with dignity and pride. the question gets down who trains these folks and who pays for it. >> too many of our policies are directing, too many of our federal policies are directing a lot of individuals to college. we could use some of dollars, pell grant funding, or other funding make sure individuals who don't want college get funding this is growing the economy. talk about debt, talk about deficits.

if we can grow the economy, get sustained growth over four or 5%, we can pay down our debt and have a much better future for our children and grandchildren. charles: congressman renacci, always great to talk to you. thank you very much. >> thank you, charles. charles: coming up, the big question, can republicans change the subject from russia to tax cuts? karl rove is next on that and much more. ♪ you shouldn't be rushed into booking a hotel.

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charles: welcome back to caputo "coast to coast". i'm in for neil. they are set to be the press at the top of the hour and we have a couple questions about rest. we had more from the white hou house. >> president trump was asked about rest at the end of the cabinet meeting. he tried to convince that he has been the taos president in recent years on russia and on vladimir putin but he might have done himself into a deeper hole with the controversy with this response to this question right here listen. >> 's russia still targeting the us market. >> the president saying no to the question is russia still targeting the us but the problem is on monday after the potential conference president trump and put in dan coats out a statement in which he said russia is involved in an ongoing pervasive

efforts to undermine our democracy. in the meantime those comments made in the cabinet meeting, as i mentioned, in which ivanka trump spoke they will roll out an executive order trying to broaden the work expand upon entrepreneurship and bring in the private sector to try to get public-private partnership. here was ivanka trump. >> already in ministration is taking credit steps to ensure all americans have good paying jobs in tomorrow president trump will take another important step to amortize and expand education so that we can create and fill american jobs with american workers. president trump will sign an executive order to establish the national council for american worker and a separate advisory board. the council will work to develop a national workforce strategy and bring together cabinet level

leadership to build the work being done and the programs already being used. >> she outlined it there. it will come tomorrow, one hour from now we get the secretary sarah sanders at the podium and i can bet you 1 dollar that the first question will be hurt to clarify or explain what the president meant there when he said russia is not still meddling in the us. charles: i will bet you back that she will hit it out of the park. thank you. in ministration is looking to work on the economy in the economy will still not stop covering the response. what can the white house do to move on and the summit behind them? matthew, former white house chief information and former obama campaign for policy advisor --dash let me start with

you, the mainstream media will not let this go and when you have folks comparing this to 911 harbor and comparing it to kristallnacht, they will not let it go that easily. >> no, they were not. it's good that the president walked back the statement yesterday with an unfortunate situation that he said what he said on monday glad he is back. i'm glad he's clarified that he is full faith in the intelligence community because those people wake up trying to figure out how to get the president information edge in terms of dealing with problems around the world. charles: teresa, that being said, president trump has this acrimonious relationship and i think he likes to pot and poke the media all the time even that blake brought up where he mouthed the word no, i'm not sure who is talking to but this becomes the topic of the day. >> it will. really, he has the opportunity

retracting his statement which was a good thing to do instead by the intelligence agencies to take this moment and them accountable and tell them it is not acceptable. we optical espionage has been around since there were human beings walking the earth but we also know in the white house stood up earlier this year and said, the attack which hit ukraine and other companies headquartered around the world that tallies 12 billion and climbing the white house was drunk with russia and that is not okay. this is his moment that he is retracted his statement as a it is time for russia, the united states and the rest of the world to talk about what is considered acceptable and not acceptable as it relates to politics and democratic elections. charles: david, we understand the regrets want to talk and it had to the midterm election for sales taxes and now abolish ice and this might be the one they go with the with a going too far

to call it treason market. >> i don't think it should be called treason. that's a mistake. i don't think it technically meets the definition for monthly it's a mistake for them to oversell what happened in russia but make no mistake about it this did hurt and trump and he embarrassed himself in front of the world and he hurt our national security. i hope present him with everything you can to create that and his walking back of the same it was not enough because he only half walked to back. it's not just the statements about russian interference but he made a number of statements conference in helsinki there were humble to the us he basically said things that the us are equal to what russia has done wrong and that is incorrect. he should not be complete us actions to russian transgressions he needs to be tougher on russia and there is

no denying that he has curious affection for that almost nobody in the us and among us policymakers have. charles: affection or some respect? they are two different things. what is the affection part market. >> it looks like affection because he is unable to recognize kickbacks. look at the indictment must take that indicted russian agents. it had too much detail in so many facts and he stands next to you and says he believes when he says that russia did not interfere. charles: i will say he said that the retraction i cleared it up but i've also heard him say he believes the intelligence committee and that denies it. i'm not sure that the same thing that he believes. no doubt president trump note on it rankles him big-time because he thinks it delegitimize is his

election and that he would have to cannot reconcile because it's easy to take him into the associations. having said that, matthew, where do we stand --dash do you think russia is so important that he will start taking apparent action that, by the way, he took long before the jump became president mark. >> vladimir putin is a blood rent and he will continue to be one. i don't think russia is a place where this faith right now. unless the sea change in behavior from vladimir putin and i don't think it is likely. the action ministration estate today is getting to foundations and the indictment against the various figures that were involved in the election meddling are appropriate and i would expect to see more of the same teresa. >> is going to midterm election cycle i want camping on both sides to be thinking about what happened the last election cycle

and i would hate to see any camping destroyed because they were hacked and their information is posted online. also, the time is running out and get ready for the elections. it's not asked about the votes. intelligent agencies said votes were not changed and that is been confirmed but this is stay home or change the vote because of this information techniques used on social media is about protecting campaigns and elected officials so they can conduct american business without fear of it being displayed all over the internet. charles: david, there were a lot of folks in the democratic party that were talking about impeachment and saying that should be a midterm issue. now, the odds of someone letting an organization overseas says it's more likely.

should democrats run on this? without nancy posey has put back the younger upstarts --dash mark. >> democrats should not be running on impeachment. the only thing that matters is the mueller investigation and the special counsel investigation and that needs to go forward and come to a conclusion we should not be talking about whether and trump his culpability for people around them culpability until that investigation is completed. what democrats should run on his support for the investigation, protecting the investigation, protecting mueller and making sure the president trump does not interfere or abstract. charles: thank you all very much. coming up, coral rope on how republicans can change the subject and more on the economy. we will explore all of this tonight on my show at 6:00 p.m. eastern right here on the foxbusiness network.

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stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. so, howell...going? we had a vacation early in our marriage that kinda put us in a hole. go someplace exotic? yeah, bermuda. a hospital in bermuda. a hospital in bermuda. what? what happened? i got a little over-confident on a moped. even with insurance, we had to dip into our 401(k) so it set us back a little bit. sometimes you don't have a choice. but it doesn't mean you can't get back on track. great. yeah, great. i'd like to go back to bermuda. i hear it's nice. yeah, i'd like to see it. no judgment. just guidance. td ameritrade. charles: new comments from the head of the fed after new warning on china over trade. edward lawrence is on capitol hill. >> this wrapped up in about an hour. a group of farmers will testify

in front of a committee. they will talk about what the terrorists have done for their business and other countries are trying to target president trump space seine the feds share worn a house financial service committee against prolonged tariffs. >> a more protectionist economy is a economy that is less competitive, less productive and we know that. this is a torch we have been carrying around the world for 75 years. so, it's not a good thing if that's where this goes. >> china slept with 5% retaliatory tariffs on items like soybeans, watermelons and strawberries. at that into the other terrace from the other terrace and it could be big losses for farmers first. >> you are just beginning to see the retaliatory tariffs and they've only just beginning and we hear a few reports here about this company and that company in

the aggregate patches are fiercely affected but it is just beginning. you want to be careful to work on this path because it may not be so easy to get off it. >> the european union is using our tariffs to cut ideals and we would deal with mexico and japan about trade trying to take our business related and coming up in about an hour the federal were released their books and we'll see how the fed bank districts believe that the retaliatory tit for tat tariffs [inaudible]

>> they spend most of the resources against the us militarily and politically, economically and it is lucas think the russians would not target us. perhaps the president was saying no to some other unheard question or that he did not see or hear what the reporter said because otherwise he sending a continuing mixed messages to the men and women of the us intel committee with regard to the value of the work they do and that is unfortunate for america. charles: we will see. at the end of those, everyone is yelling him and we don't know for a fact what happened. meanwhile, we talk about the intelligence committee and when

exactly are they --dash we have to wonder what are these intelligent agencies being set up to speed to protect us. >> at the end of the day and you'll hear this from anyone in the cyber security arena and in private commercial sector cyber security is only as good as the people who use electronic devices. i think, mike rogers setting up a testimony that the percentage of her cyber security problems would go away it's a procedure that would use to come after what is necessary but it's effective. people respond. we all have done it. it's unfortunate six i would go

for magazine prescriptions and they say password is not strong enough. you folks using password as the password. maybe there are certain things that obviously we should be able to print. the russia defense minister is saying the ready to boost cooperation with america but how much credence you give that? >> i'm not at all surprised that's what the russians was a but we put russia in a position where we appear statesmanlike or they can appear to be the player on the scene but when they come to korea there is honestly very little the russians can't afford us. their relations with north korea another song. diplomatically, militarily, and

economically. again, russia is not a major economic power in the world so they cannot afford much economic help. on syria, yes, obviously lots of fertile territory for cooperation but that cooperation needs to be founded on a common understanding of the problem. charles: quickly, before i let you go. in the opening statements in the helsinki press conference present jump mentioned president xi and how finding a wedge and we know that china and russia will be involved in the wargame in a week or so so how much can we them against each other question mark. >> at the end of the day i am hopeful that we should not be out there trying to put china against each other and we need to be working with both of them to identify areas that we can resolve in areas we can cooperate in. so, i would not advocate at this point trying to put the two against each other. charles: larry, thank you.

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charles: president trump and first lady melania trump at joint air force base enters pay respects to the families of fallen secret service agent know edwards. he suffered a stroke while on duty in scotland. the president and the same insane quote, our hearts are filled with sadness over the loss of a beloved and devoted special agent, husband and father. our prayers are with the special agent family, loved ones, including his wife and two young children. we group them in the secret service colleagues. lost a friend and a brother. meanwhile, the president meeting with his cabinet in the

discretion firestorm but trying to keep the focus on tax reform. listen. >> will get the soundbite in a moment. charles: let's go to deputy chief of staff karl rowe on how the white house can put it with russia because the mainstream media will not. >> well, it will last for a couple of days but provided the president does not say anything new it should die away. good to introduce a new abscess and i know the house ways and means committee led by congressman kevin brady of texas have been working on the issue and they met yesterday and we don't know about the details but there has been a poor desire in the house to follow measures because this cannot be done under reconciliation or past and

a super majority in the senate which is either looking for bipartisan approval and democrats will been navigating before. charles: what would those be to mark a focus on middle-class tax cuts were more things on childcare, health, small business, efforts that savings and things like that? >> there are three baskets that people are talking about. one of his most visibility and the hard push is to make permanent the tax cuts for individuals and small businesses that were included in last december's tax reform bill. the other two baskets might have things in them that are attractive to democrats. one is retirement savings. there's been approached by democrats and publicans in the senate to put in place what is called auto enrollments so when you go to work at the company that has retirement in his program, a 401k you are

automatically and enrolled in the program and have to take the affirmative step to undergo because we find a lot of people simply don't line up when they go to work in a company years later that they are out they lost a great retirement opportunity. also, universal savings account you set aside money for you pay for taxes on it at that point but when you start out its tax-free useful things like healthcare and education, expanded use of health savings account and this retirement savings thing has at least some of those elements in it. finally, a discussion about pension reform. how do we make the pensions the committee's offer to them is stronger and more durable and better funded for the long-term. when we go with these, no notes, except the leadership in the house ways and means committee and members on the national economic council of the white house. these are the three baskets being talked about. charles: carl, though sounded

intriguing but i believe that we have to go back and review it the caps on mortgage deductions. the blue states have huge preparations they were hit hard and i think the republicans have room here to do that. would that be an idea because of talk about compromise and --da --dash. >> we come from blue states and therefore you need to raise the mortgage interest deduction backed by the realtors in the mortgage banking industry or the rose you need to do something about limitation on ability to write of texas in high tax states. that normally would be part of the normal process that of the publicans 71 this and democrats would say we want something in that deal, too. i'm not certain the democrats are in a daily mood on anything. and maybe things like auto enrollment that they previously supported is something that can

be done and not certain we could have a big grand deal on tax reform is close to the november midterms. charles: were talking about another round of games with typical washington dc gamesmanship maybe enough that in the forms republicans can say to voters we offered the things in the resistance movement is rebuffing it. >> there's always the possibility but i know kevin brady, the chairman of the house ways and means committee and he's not into games. if he pursues these it's because he thinks it's good for the country and he thinks there's a shot they might be able to get them done. i don't think it's a --dash it may be in some people's minds but not in his mind. he wants to get things done which is why he's been looking at what are things that besides talking about and members in both parties have talked about and that's also what he's talking about multiple bills.

the idea is not up for this where jim is in one but it inseparable and maybe that gives us a better shot to get it through the senate. charles: i've noticed that taking small bites will apple is comparable to this. maybe we can get some things resolved. too many are getting jammed up in dc. the american public wants to see more results. >> absolutely. incremental progress is the progress and success in congress breed success. if you get democrats and begins working together on something and getting it done it means the more likely to find opportunities. charles: karl rowe, thank you. his below ever going to come back? [laughter] >> i heard a rumor that you put him in a closet and tied him to a chair but really. charles: you were supposed to hit up. talking about leaks in the white house.

[laughter] >> i have friends in the intelligence community. we monitor you. charles: thank you. [laughter] google has not hit an all-time high despite the amazing gargantuan. we are more on that next. there is fear of a trade war. is it overblown? we would break that down but after this.w (♪) i'm a four-year-old ring bearer with a bad habit of swallowing stuff. 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. so get an allstate agent, and be better protected from mayhem. like me. can a ring bearer get a snack around here?

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charles: there is growing outrage over mgm decision to sue victims of the las vegas shooting rampage with lori bonn has the latest. >> that is right. survivors are not happy and offended that mgm is naming them in a counter lawsuit. mgm is fighting back against several lawsuits it faces from victims trying to hold the hotel responsible for the massacre

that occurred last october. it can be held financially liable for the las vegas vascular because it has some responsible for deaths, injuries or other damages and argued that the safety act, a law that protects security firms to adopt into terror tactics from my abilities protect them. mgm says because they hired a firm that is certified under the safety act which the legally untouchable. the lawsuit is earning mgm public backlash even though the company says the legal team is not taking money from the victims. they did a clarification trying to explain what is going on writing quote, we filed an action for declaratory relief at all we are doing is asking for a change in venue from state to federal court. not asking for money or eat babies. we want to resolve the cases quickly, fairly and efficiently. victim's status is another attack. i talked to one survivor was the

founder of group 91 chalk that up survivors from the screen he told me many survivors think the legal move feel like quote, bullet the head and target the people to give them business on the night of the attack. >> we are survivors helping survivors. they have so much money. they could have helped us. they don't do that. now they sue us it's shocking. it's the biggest mistake mgm has ever made. people are outraged at what they've done. were gathering a list of everything mgm owns. were going to boycott mgm. >> mgm is fine to set the record straight and make her that the people know and make clear this lawsuit is a defensive move on their part. not something they are doing to intentionally put the victim's request further stress and discomfort. they say if the judge rules in their favor and settle the

matter more quickly and efficiently for everyone involved. charles: hillary, thank you. meanwhile, google is now hitting an all-time high today. investors are striking off the eu fine. was it 5.5 or 5.6? >> it depends on which currency you're looking at. right now this is the largest fine coming from the eu. they are saying the google has manipulated consumers since 2011 which is why the fine is so high. we have operating systems on her mobile phones and within the systems use web browsers and apps that operate on them. but they are saying is that google has purposely been bundling the operating systems with google chrome, as well as gmail and they been in phone makers exclusively use google chrome and switch apps - back .

charles: that the legal contract. >> you are up to and holding the entire market for competitor so that's google. it's like they've gone about with this by billion-dollar fine. for the first time either. charles: that brings the question google all of a sudden will they stop - could this be part of doing business with them? what is the for them, by billion sound like a lot of money but will to stop the practice as overnight? >> they are 90 days start. that share their find $.7 billion us because they promoted their own shopping websites at the top of page in comparison to competition which were pushed away. they are still fighting that a year later. they had 90 days needed and they did not do so. will continue and you're talking about the $5 million fine. plus eternal so that takes 60 days for google to regain the money. if you come to the volkswagen

find they settle at almost $60 billion a just difference right there. we have a vested or was the eu commissioner final lot of the science going hard against tech companies and has - these practices have denied rivals the chance to innovate and compete on the merits. they denied european consumers the benefit of effective competition. that is illegal. much which is putting out right there. charles: now this is for tat with the tariff situation? >> this has been going on for quite some time. you have your android system and you ever go and change to being, operating system: no, according to her and she was on another outlet to our scope at 1% of people go and search for another web browser. we are busy. charles: creatures of habit. >> right, exactly. charles: thank you. white house will have its briefing and of course, we have a feeling a lot of it will be

around the rest of the fire started. be right back.

charles: soon white house replaced the president of the press rather and we know the russian firestorm will continue. critics continue to out. the stocks continue to shrug it

all off. it certainly does not appear to be trade. a new survey showing 6% of investors believe a possible for is the greatest risk to the market. stocks have not really moved that much. some are saying it sideways but i count the dow up 1500 points the disputes began. will it catch up to the market? dennis is here for freedom and prosperity chairman and independent women's forum, senior fellow bert [inaudible] i'll start with you, dennis. i want to point out coming into the week of all the things that were mentioned in conference calls as being negative to earnings, only one company last week mentioned tariffs and that was the canadian lumber tariffs and everyone else and there were seven other things more important from currency to raw materials to transportation to

oil to wages to whether an even europe was more important to the actual facts so tell us what will happen here. >> it is amazing to me, charles. no one seems to be paying attention to the trade concerns. they should be. at this point it's still able market. i must admit it surprises me and almost means the market takes almost all news it takes it we well. whether the earnings are higher or lower the market goes higher whether political circumstances prevailing in europe or moscow, the market goes higher. the market has been six months going sideways and has been in a tight trading range and seems to be breaking out on the upside. i thought the tree talk tariffs and protection would be detrimental to stocks but does not appear that way. charles: we started the date with the nasdaq at a all-time high and now the dow is creeping in the shadows of this former

high. what you make of that we know the things that could happen in a recent history but by the same token what we're talking corporate america. ceos who are on a record pace in terms of guidance and they are saying think so far that have not had an impact and they don't see it have an impact in the near-term. >> we have not seen the tariffs take full effect. it will take time to see real prices on goods both input and output hit their bottom line. that could be part of it. i do think companies are taking about intellectual theft by china and some of these issues that i think the united states is trying to negotiate. it's something that should be on the radar because it does hurt businesses in the long-term. charles: it does hurt business in the long-term. also, the news and we would talk about the amazing earnings. but so far, they will not cover the first coding quarter earnings were. it certainly speaks to the economy that is on fire.

>> i don't know if i would say on fire but there are good things and good tech support and good regulatory policy, or at least less regulatory policy, but i still think the trade stuff is a very worrisome sign. think about it, charles. if you have one cigarette a day maybe your chances of getting cancer are not that high but if you go to five cigarettes were a pack a day or by packs that is how trade was start. all of a sudden you have 19, 30 style economic damage because of the bad policy. were only affecting trades now less than 2% is being hit by these tariffs but watch out if someone does not go up and say we need to stop this . charles: if you do represent on the first 50 billion and 10% were talking an additional tax if you will of $33 billion of 560 billion in goods and

services we import from china. is that enough to do well - i have to disagree. talking a second quarter that might offend by percent or an all-time low on the rates and wages ending up and i can't think of a more goldilocks economic scenario. >> if it stops right here, i agree with you. that will not cause a recession or kill a recovery. i'd be more worried about easy money but i'm worried about where the process ends. other countries will retaliate and then trump says we have to them back is a couple kids in the sandbox fighting but we are the ones that stand in her eyes. >> to jump in here, china is the only country that is taken in standing up to it. we will see some deal happen china but to another, if pastor form 2.0 delivers another lower

income for tax rates that will be even better for the stock market and for corporation. charles: dennis, you're taking heat because you're saying it's an exaggerated and what is this all about mark. >> well, people should be upset. i am concerned about the fact this is a slippery slope and we might be sliding down the slope far too quickly. we have to be careful. nonetheless, i look at how the market has responded and it's taking bad news and taking it well. it has surprised me, no question about that. dan is correct but the fact is the market still wants to go higher. i have no choice but to say it looks like it's a boat market. charles: that's how you - i understand. take you all very much. he soon the white house will place the press and we know russia firestorm.

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charles: the 2018 congressional print book is out. the earmarks that were present within 42% increase and there is your the breakdown report. there is good stuff - >> always good stuff and we should get out of the way like flipping a band-aid. just under $15 million which is more than 116 increase from this

time last year. in this meeting. they are the largest non-partisan, non-profit organization dedicated to eliminating government waste. senators jeff flake, ted cruz, joni ernst, more impressive isly a real live potbellied pig, fay from virginia, hanging out. some representatives as well. ralph norman, a lot of people in the room and a little potbellied pig. charles: this is the report tom coburn made famous. >> i picked out some of the more egregious, one of them has to be over $600,000 for a brown tree snake study. this is eradication program. they're native to northern australia. and indonesia. but they were introduced into

guam probably by the u.s. military after world war ii. that is a lot of taxpayer money. then the big one, biggest ever, $2.7 billion for a, an additional, it is f-35 joint strike fighter aircraft and problem is it is about 17 years behind schedule. now the acquisition cost is nearly double. charles: wow. >> initial estimates. lifetime operation and maintenance close to a trillion dollars. so these fighter jets better work really, really well. charles: so funny, i used to live in guam. i think they're worried about that. it might be too late, the indigenous bird is flightless. victim to the snake. i don't know you need to do a study. >> one taxpayers, one citizen, costs $63,000. not enough. charles: it is 20 or 30 years too late. we know what they're doing. >> all the poor bird are gone?

charles: just one left hiding somewhere in a foxhole somewhere. i guess that is another thing, feels like when they do these things almost like, there are comments and stuff already. you wonder what do we resolve with them? >> listen, hats off to the group for sounding the alarm because i don't think that the actual sit is thinks about, realizes, more than 100% increases are happening year-over-year. honestly when you read through something like that, you completely understand senator paul and libertarian point of view, you think, oh, my gosh, everybody is working so hard, they are paying a lot of taxes, this is what they're going to. otherwise taxes going to completely worthy causes. you understand the outrage. charles: of course you understand. you wonder in a new environment, we thought they would buckle down on this kind of stuff. >> yeah. charles: you get bridges to nowhere with this sort of mentality. >> actually congress could set a new record by the end of the percent four years of the trump administration if the numbers

keep going up as they are. 116% increase is not negligible year-over-year. charles: so funny, when we hear who the heck comes up with these studies? locally sometimes it makes sense. the tax payer in -- >> the question is proportion, right? aside from your very personal snake story. that is one of favorites. sorry citizens of guam. charles: i think it is late. one of the things, we know snakes are killing them. they were imported. indigenous bird. >> yeah. charles: ideally you should have spent 600,000 on traps. >> a while ago. charles: a long time ago. but is it just the bottom line that this is always going to occur? >> this is one of his campaign promises, drain the swamp. it is highlighting that. the problem with him or any administration changing a pattern that is ingrand. for somebody who made that

campaign promise, fought to keep campaign promises -- charles: we rewarded politicians brought home bacon or bridges to know where. >> or the pig. charles: white house press briefing in moments. i have all the fallout on my show, 6:00 p.m. trish regan is here, now to take you through the next hour. trish? trish: charles, yes. very, very interesting hour. we are about to go to washington to see that first press conference since the president returned home. and we are seconds away from the release of a brand new report from the federal reserve. could very well move these markets which are up right now about 65 points. there on the dow a we head into the final two hours of trading. couple big things going on. a read on the economy. we're waiting for white house press secretary sarah huckabee sanders to address the media of the she will speak any minute now. don't go anywhere. i'm trish regan.

welcome, everyone, to "the intelligence report. over next hour we'll watch sarah huckabee sanders, we'll hear now exactly what state our economy is in. we'll see how big of an effect it has on this market. i want to go to washington, d.c. to our own jennifer schoenberg. >> trish, high, tariffs meaningfully starting to hurt businesses across the country but not hurting mean fully the economy according to the federal reserve beige book. manufacturers across all 12 districts report higher costs for materials, specifically for lumber and metals. they are also dealing with supply disruption. all because of tariffs. it is starting to crimp profit march fins. though despite the tariffs economy is doing just fine, growing moderate to modest rate across all 12 bank districts early june and july. manufacturing remains strong, job market remains strong. labor shortag