can see just slightly lower. [closing bell rings] for the week, the dow, s&p, posting third straight weekly win. that is it for the countdown. now time for "after the bell." melissa: escalating trade tensions but a whimper on wall street. stocks fighting for gains, the dow ending the day a little lower for the day. nobody is afraid of trade tensions. s&p 500 and nasdaq down slightly. i'm melissa francis. david: it's friday. the market gave us a break. thank you for joining us much happy friday to all of you. we have more on the big market movers, here is what else we're covering in a very busy hour. bombshell out of d.c. fox news confirming president trump's long-time lawyer michael cohen secretly recorded a conversation with then candidate trump ahead of the 2016 election whether a payment should be made to a former "playboy" model. we're live at the white house with the very latest. meanwhile secretary of state

mike pompeo at the u.n. with tough words for kim jong-un about his failure to keep up with promises he made at the summit. pompeo also talking about another summit, a new russian one, being planned to take place in d.c. this fall. democrats stumping for socialism. there she is, the rising star, alexandria ocasio-cortez, teaming up with bernie sanders, speaking at a rally this afternoon in a deep red state of kansas. what will happen there? wait until we hear what forbes media chairman steve forbes has to say about all this. the tragedy in missouri. we're following what we're now learning about the series of events that caused a tour boat to sink, killing 17 people including a 1-year-old child. melissa: wow. back to the markets. the dow struggling for gains in the final moments of trading, as investors shrug off new trade concerns. phil flynn watching oil and goal from the cme.

nicole petallides from the floor of the new york stock exchange. nicole, start with you. >> what a week. i feel we had so many headlines. it wasn't just tariffs and trade. it was trump in helsinki an trump tweets and earnings we had. how many interest rate hikes are happening going forward. we see the dow squeeze out a gain. i'm talking about for the week. i'll tell you all about financials. we're down six. the s&p dropped just fractionally, down two. microsoft was a he had lear. moves to all-time new high. we were talking about microsoft. azure cloud, 89% growth. office 365, 13% growth. you know what? the analysts are loving it. they're still pumping up price targets, 120, 130. we're seeing a slew of them. it moved to a new record and helped turn the dow around.

general electric is a dud. down 21% this year. questions about the full-year outlook. the stock dropped 4 1/2%. the ceo talking about china tariffs and numbers it will be hurt. talking about the week, i am talking about squeeze it out. i just finished talking to charlie prayeddy, our senior editor at fox business, goldman sachs, if it weren't for that, the dow would not be positive. 69 dow points for those two. 5 1/2% for bank of america. goldman sachs up 2%. we certainly saw gains across the board. next week over 160 s&p 500 companies reporting. 11 dow companies. we have lots here on "after the bell." i know we'll be here. we'll be killing it. back to you. david: we always do. thanks, nicole. appreciate it. oil and gold closing higher today. phil, looks like the president's comments on the fed had something to do with this. >> it sure did. the president is the only thing

that can stop king dollar going up. the commodity bulls love him. even got gold to move higher which a lot of traders never thought that would happen again. today it really changed. talking about currency manipulation. it was incredible, front month of the august crude contract went through the roof, closing above 70-dollars a barrel. mainly because there is not at lo to deliver. baker hughes says the shale twice may pull back right now. we had a drop of eight rigs in the latest weekly survey. five of them were oil, two of them were gas. one couldn't make up their mind, they didn't know if they were oil or gas. that shows they will slow down a maybe a little bit when it comes to production that just hit a record high but at the same time when you talk about these tweets, when the dollar goes down the commodities all go up. david: they do. phil, thank you very much. melissa. melissa: president trump revealing he is ready to go with $500 billion of tariffs on china

for their escalating trade tensions. edward lawrence is live at the white house with more. edward, what can you tell us about this? reporter: melissa also this and breaking news story where the president's personal attorney michael cohen said he recorded conversations between himself is and the president when he was candidate, a former "playboy" model whether there should be payouts, she wanted money that she alleged she had an affair with president donald trump. the sources saying, special counsel robert mueller has those tapes and no payment was ever made. this is background noise for folks here at the white house they are focused here on leveling trade playing field especially with china. $200 billion of goods with china will have tariff impose on him. the president says he might impose a tariff on all products president send is to the united states. that is additional $300 billion.

roughly $300 billion of items. this is because china will not change the trading practices. they will not level the trade playing field or protect american intellectual property. in fact today china won't even sit down at the table to talk about these things. the chinese foreign minister spokesperson said today, quote, the u.s. has been rudely threatening coercing china and brazenly engaging in flip-flopping and backpedaling, direct root cause for escalation of this situation. the president firing back, not just against china but also the federal reserve on twitter because of rate hikes of the president saying quote, china, european union and others have been manipulating their currencies and interest rates lower while u.s. raising interest rates while the dollar gets stronger each passing day. taking away our big competitive edge. as usual, not a level playing field. tightening hurts now. we all have, tightening hurts what we all have done.

the u.s. should allow the recapture what is lost due to illegal currency manipulation and the bad trade deals. debt coming due. we are all raising rates. really? the president doubling down on the trade policy going forward he could impose 25% tariff on automobile as coming into the united states and automobile parts. the commerce department will create a report by february 17th on that subject. once that report is done, the president can impose additional tariffs here. next week all of this is coming before the european commission president coming to the white house next week and trade is a big issue on that plate there. melissa. melissa: edward, thank you. david: all right. let's bring in today's market panel. we have jack hough from "barron's" and carol roth. carol, it is true, china has been devaluing its currency, it has been doing so and ability to

2% a day. it has been tweaking a little more each day. it was .9% on wednesday. a little more on the day before that. currency devaluation it is another kind of trading war, right? >> it is. i love the fact that we completely deflected, forgotten the fact with our massive quantitative easing, that we sort of had an effect on bringing down interest rates and the like for many, many years. that had reverberations across the globe. now that we're on the tightening cycle, we're trying to deflect it. david: good point. >> kind of interesting that is the tact they're taking. this is issue when you go with something like a trade war is there are a lot of different tools these countries can use. >> right. >> conflating trade and intellectual property is not the best potential strategy. i'm still hopeful we'll get a good out come but certainly not the road i would have gone down. david: jack, for a lot of people

competitive devaluations can be worse than tariffs in terms of trade war. you get into this beggar thy neighbor, you devalue in order to make your goods cheaper. eventually the consumer ends up with a savings account that is worth nothing because the currency has been devalued. the markets are taking it in stride. it is a pretty flat market. >> you have to love this stock market. we start this week with the stinky in helsinki. david: come on. >> trump is playing central banker. no one cares. the market -- 20% corporate profit growth on back of tax cuts it covers a lot of flaws f we're still talking crazy next year i don't know but right now the market doesn't care. melissa: stay with us, carol and jack. market finishing lower but still 35 points off the record close. this is the as race to be first trillion dollar company in history as amazon gaining apple.

carol, which do you think crosses the trillion dollar mark first? >> i would flip the question, which one will stay there? melissa: okay. >> apple is certainly ahead of amazon in terms it might get there first but in terms of who has the staying power to be above that level long term, i think amazon is better-run, more innovative company, has more opportunities, a whole sort of bucket of areas. melissa, you are a big fan of amazon, can not live without it. melissa: or apple for that matter. >> yeah. so if i were a betting woman, say which one of these companies will really stay ahead of the game long term, i would be putting my money on amazon. melissa: stinky in helsinki what do you say over there? >> as matter of policy i always root for the front-runner, but amazon is catching on quickly. i went hog-wild on prime day. melissa: nice. good job, guys thank you. david: jack got all the dollar

deals, 99 cents deals you end up a lot of junk for your garage. stumping for socialism. embattled democrat candidate alexandria ocasio-cortez teaming up with bernie sanders at a kansas rally. that is happening this afternoon. are democrats moving ever further away from moderate voters? forbes chairman steve forbes weighs in on that. melissa: secretary of state mike pompeo and ambassador nikki haley briefing the united nations on status of talks with north korea. the pair warning that some of our friends have been helping the rogue nation get around sanctions but not for long. we'll take you live to the u.n. for the latest. david: some members about congress are speaking out against the president's invitation to host vladmir putin in d.c. this fall. darrell issa is not one of them. he is from the house foreign affairs committee. he is here with his take coming up. >> i'm happy that two leaders of very important countries are continuing to meet. if that meeting takes place in washington i think it is all to the good. ♪

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of america that president putin and president trump continue to engage in dialogue to resolve the difficult issues that our countries face between each other. i think this makes enormous sense. i'm very hopeful that meeting will take place this fall. reporter: the secretary of stout traveled here to the united nations in new york today to actually call out russia for its failure to press north korea on its violations of sanctions. the secretary of state and the u.n. ambassador say that north korea is smuggling in control smuggling in petroleum using guest workers from around the world and the u.n. ambassador says that smuggling and u.n. inability to sanction or penalize them for doing so is hampering efforts to get kim jong-un to surrender those nuclear weapons. >> we can't do one thing until we see north korea respond to their promise to denuclearization. we have to see some sort of action. until that action happens the

security council is will hold tight, the international community we ask you to hold tight as we go forward. the problem we're encountering some of our friends decided that they want to go around the rules. reporter: some of their friends being china and russia. despite all this, the secretary of state says the president remains optimistic the end result of this effort with north korea and kim jong-un will be a good one. the secretary of state says he agrees with that. david: chinese are not my friends. i don't know about the rest of the world. appreciate it. melissa. melissa: we have lieutenant colonel jim reese, retired delta force operator. thanks so much for joining us. start with issue of china and russia skirting fuel issue with north korea. what do you think about that? >> well, one of the things i do understand is is that, everyone has to remember russia and china have always been aligned with

north korea. anytime that we put economic pressure on russia or china, we're trying to do negotiations with north korea, both of those countries are not going to be our real good friends, trying to help them push any of our negotiations or to look at any sanctions we have going on. melissa: wait a second. if we flip what you said, wouldn't we put economic pressure on china and russia in order to help us with this situation with north korea? >> well we are. think about what we're doing with china right now. think about all the sanctions going on in russia and we asked both of them to help us with the denuclearization of north korea. one of the problems though the other two countries hold playing cards because we have this trade war with china now, we have big sanctions against russia, we are asking them for help with north korea. melissa: how do you see them as them holding the cards? we're ones putting the pressure on. we say we will release this pressure if you help us with

this other issue with north korea. they don't have the cards. we have the cards. >> no, you're right, the problem we have sanctions on both of those countries. we're asking them to help us with north korea of the we have not loosened any sanctions on either of those countries and we walked into a trade war with china and we want their help. i'm looking at it from a business perspective. i wouldn't want to help. melissa: why would you loosen the sanctions and why would you lift the pressure before they proved they were going to be of assistance? before they weren't helping and they didn't have the pressure? >> i wouldn't. that is my point. melissa: okay. >> why do we think, why do we think those other two countries will go ahead and help us if we don't loosen their sanctions first in we're in a catch 22 situation right now. melissa: okay. did you happen to see secretary of state pompeo talking about president putin and, coming to washington, d.c. and meeting with president trump? he thought it was a great idea.

that these leaders should sit down to talk to each other. democrat have very different idea whether or not this is good. what's your take? >> i did. you know, in every first meeting of any negotiation the first rule is, get to a second meeting and this becomes now their second meeting. we're, we want this all to happen in two weeks. it is not going to. it will take a lot of time. it will take a lot of negotiations. it will take all the staffs from both the state department, the white house, the department of defense, working these for a long period of time. i mean think about this. we have literally shown a blind eye to russia pretty much for the last 10 years. eight years in the lasted a administration. now, you know a year-and-a-half coming in with president trump. and even though things happen badly that the russians did, we said, we put all the red lines out. we never did anything. we turned a blind eye. all of sudden we have new focus

on russia. everyone es all the things happening. it will be a big change for everyone to see russia back in the spotlight. melissa: do you think arm aing rebels in ukraine or killing russian soldiers in syria or calling out the germans for having that pipeline with russia that funnels money inside or expelling the 60 russian diplomats, all the things happened at the beginning of the administration, do you think that is part of the blind eye? doesn't seem to turn a blinder eye? >> no, i'm not saying president trump has turned a blind eye. i think he got us back into the focus with the russians. the previous administration turned a blind eye. we're trying to do eight years of catch-up, nine years of catch of up. we're getting there. my point is the american public is now starting to see the russians back in the spotlight that they haven't seen in quite a while. melissa: colonel reese, thank you for your time today, we appreciate it. >> you're welcome, thanks. david: the nation mourning a tragedy. seemingly harmless tour boat

ride turning deadly in missouri. we have devastating details coming after the break. that is not only disaster news from the midwest, tornadoes ripping through iowa, tearing apart hopes. we're bringing you updates on the damage. >> we made it out alive, that is all that matters. everything else can be replaced. you can't replace our lives. insurance that won't replace

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david: 17 people have died in missouri. one of those duck boats capsized during a thunderstorm. this is usually a pretty calm lake. mike toke bip in branson, missouri with more. mike? reporter: grim task of searching for victims is over. the primary task is determining what is wrong. that is obvious from the video. these world war ii designed boats got struck in severe

weather as severe thunderstorm rolled in with winds over 60 miles an hour. the video stops before one of them ultimately capsizes. the duck boat tours last an hour, spend 30 minutes on the lake generally. the thunderstorm warning was issued half hour before the boat capsized. jim patter ton, jr., which owns ripley entertainment which owns the ride the ducks, says the boat should not have been in the water. with lifejackets on board, it is too early to determine if the life jackets were used. >> it will take time to know everything about the details that occurred. sheriff, highway patrol, all trying to answer questions you're asking. it will take time to answer those questions on that. we don't know what the status of all the events yet. that is still under investigation. until that investigation is completed, i don't think it is my place or anyone's place to speculate.

reporter: the death toll will stand at 17. ages of victims range from one-year-old to 70 years old. we learned from missouri's governor, one family of 11 that lost nine members. 14 people, less than half of the people who signed up for this innocent sightseeing tour, only 14 people survived. stone county sheriff doug raider says the capsized boat sank in 40 feet of water. it is amphibious vehicle. it landed wheels down at bottom of table rock lake, rolled into 80 feet of water. ntsb and coast guard are taking over the investigation and their responsibility to recover the boat. david: nine members everyone family. can you imagine? mike tobin. thanks very much. >> no. no, no, no. oh, man. david: wow. melissa: iowa man distraught as 27 unexpected tornadoes tear

through the state in a single day. the tornadoes injuring at least 17 people, flattening buildings in three cities. even forcing evacuation of a hospital. iowa usually averages seven tornadoes for the entire month of july. wow. david: unbelievable. here is another look at microsoft. it will make stuart varney very happy, closing at new record high today. it is 26th of the year. microsoft now top performing stock in the dow for the year. it is now topping 800 billion in market cap. wow. 800 billion member. melissa: taking a hard left turn. bernie sanders and alexandria ocasio-cortez taking their socialist message to the kansas state. will it divide the democratic party? steve forbes comes up and sounds off. david: new questions about president trump's former lawyer michael cohen after he apparently secretly recorded a conversation just ahead of the

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from the raid of offices and home of president trump's long-time attorney michael cohen, specifically a recording made by mr. cohen a couple months before the 2016 election which a payment to former "playboy" model karen mcdougell was discussed. we have bill mcgurn, "wall street journal" columnist, not really agoing but interested about this. rudy giuliani says this is good for the trump team. it has exculpatory information. excuses the president because apparently no payment was made. what do you think? >> well i don't know. i haven't heard the tape myself. i have heard that it has exculpatory information on it. it is also, it is an embarassment. i don't think it adds any new information for what voters knew. david: you wouldn't know it by listening to the mainstream media today are crazy about it. >> it raises speculation what else michael cohen has. david: liz and i both have this

theory -- >> confidential relationship with donald trump. david: this may be sort of a message being telegraphed by michael cohen, you may want to be nice to me, mr. president, because i do tapes. i have this tape. i have done other tapes. >> right. it could be, we don't know yet. again, i think there is always a lot of storms around donald trump. david: right. >> but a lot of them don't come to anything. david: one of those storms that hasn't come to anything yet, raining storm more than a year is the mueller investigation. rod rosenstein, the guy who has been overseeing that for the justice department, was at the aspen institute yesterday and he received, as you can ethere, a standing ovation from this crowd. for those who don't know this, is a liberal organization. it is a liberal group. two years ago they were agoing over a guy named glenn simpson, who was distributing russian disinformation. the media was lapping it up as though messages from god.

that information we found out is highly questionable now. his relationship with the russians is highly questionable. should be investigated more than it is. what do you think about the fact that rod rosenstein, the deputy ag, is, this crowd's new hero? >> you don't think they were cheering for news about cybersecurity that he was there? david: no, i don't think so. >> very clear. i haven't been a big fan of the deputy attorney general. i think he is undown -- unconscionably stonewalled on documents that congress has a right to see. people out there perceive him anti-trump. that is why he is being cheered, someone standing up to trump. i don't think this bodes well. david: how much longer does the president, for whom this guy serves at his, his pleasure, how much longer does the president have? >> i think he is getting terrible advice from his attorneys. i wrote a column earlier this week, the president could solve a lot of this by declassifying

the information himself and getting it out there. i would prefer congress get it, use their full powers of contempt and impeachment. it looks like it is not going to happen, not going to happen in time for the midterms. these guys are waiting them out. i don't know why the president doesn't do that. i assume his lawyers are telling them this could be used as an obstruction charge, ridiculous to have transparency used against you as obstruction. david: hero of mainstream media, john brennan, ex-cia chief, is saying pretty outrageous things about the president. kim strassel wrote a piece detailing how he was really, his role in the beginning of the whole mueller investigation is far deeper than anybody thought. he was pushing a lot of this russian disinformation in the beginning. >> he testified before congress, i gave the fbi a lot of this information. if we had these documents we would probably -- david: his partisanship is the

most of anybody -- >> this is crazy. for a man in his position throwing out charges of treason because of a press conference and so together, it is just ridiculous. remember, this is a man when he ran the cia, some of his people were spying on staffers in the senate. he denied it. david: he lied. >> he is not an honest man. i think he is highly partisan as you say. people wonder why president trump might distrust the intelligence community? it is crazy. david: bill mcgurn, have a great weekend. melissa. melissa: summit 2.0. new details of another meeting between president trump and vladmir putin. this time on american soil. obamacare still in critical condition where premiums are set to rise next year. next republican congressman darrell issa responds. ♪ a little bit of water, it really- it rocked our world.

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>> the white house has announced on twitter that vladmir putin is coming to the white house in the fall. >> say that again? [laughter] that's going to be special. [laughter] melissa: he has been to the white house before. i don't know why that is so special. vladmir putin potential visit to washington this fall, making headlines. republican congressman darrell issa from california serves on foreign affairs committee. what do you make of that exchange there with dan coats? >> i think it is a cheap media shot to surprise somebody, to see if you can get something to go viral on the internet as a result. you know there is nothing unusual about foreign leaders, whether it is bibi netanyahu or, you know, in this case putin, potentially come together white house. first of all it is not announced as a state visit. this is not about honoring something because right now the president has a large list of

demands where he is demanding that russia step up to the plate in syria, in iran, in north korea and be part of the solution instead of part of the problem. melissa: yeah. he has been to the white house before when he visited george w. bush. he, we had medvedev came to the white house in order to meet with president obama. now you have a lot of democrats, and you know, some in the intelligence community making a big deal out of the fact that he would be at the white house. i guess they're trying to shame and embarass the president, saying they don't trust him there with vladmir putin? or what's the message? >> you know the problem is, everyone seems to think that be doesn't deserve a meeting. we deal with this all the time. russia is a global power although they only have an economy about the size of italy, about the size of italy doesn't make it very small. it has huge mineral wealth in vast portions of the world and it has influence in key areas

where american troops are dying every day. where americans are spending and have spent literally trillions of dollars. so i don't think there is any question that any president of any party has an obligation to engage. now, having said that i don't want to back off from what i think are congress' demands, which we need to see some results from this engagement. we need to see russia being an actor that keeps their promises, and that's, there is quite a bit of time between now and the fall. we'll be looking for it. melissa: that is really interesting, you kind of boiled it down to the problem we keep having here, everybody seems to think that various people don't deserve a meeting. that is not the way this president operates. it is not the way he operated in business. if you have somebody you're in a tiff with, or trying to improve relations, you take the the meeting, worked on it and that is why he seems so shocked at everybody else's response.

i want to talk about an important issue in your state. obamacare premiums will rise 9% in 2019 in state of california. we're still calling it obamacare, it is kind of the republicans baby now. you nice ran on repealing and replacing. the civil -- system is still broken. how do you plan to deal with that point of view and how do you plan to fix it? >> you're right. we voted many, many times in the house to repeal it. we didn't succeed, combined votes in the house and senate to get it done, we find ourselves with a failed system. i've been in congress almost 18 years. i always want to have perspective health care was a problem. health care was rising faster than our economy overall. meaning taking a bigger part of the american taxpayer's personal money and his tax dollars 18 years ago. so, when we look at this problem, yes, obamacare made it

worse, but i think all americans, republicans, democrats, independents, we've got to get together to start addressing the cost drivers. the reason that the cost is going up 9%, of the premiums is because the cost of the health care is going up 9%. we have to address that. melissa: if i could jump in before we run out of time. i don't want to be rude but i want to ask you, look at drug prices rises last week. president said you have to stop that. one month supply of lipitor is $1400. the generic is $26. that is what most people get. who is paying 14, $1600, you, the government, medicare, buying the drug in the hospital. the cost inflation is result of the government in the middle. you have to do something about that, sir. >> well, you're exactly right about one thing, the cost drivers in that segment of health care come from the non-that jakes in most cases --

non-generics. any blockbuster drug when it goes generic generally becomes very affordable. here is one of the little facts -- melissa: why is medicare not buying the generic? >> well you know, you understand, i believe that we should be using generics if they work well. lipitor, as you know is going generic. but here's our challenge. 20% of the cost of health care roughly comes from the pharmaceuticals. i'm not defending them but if we're going to drive down the cost of health care, we have got to deal with why the doctor often prescribes lipitor rather than the generic? why the doctor feels that he has to do an extra test because he doesn't want to be sued? so there is a lot of factors in it. i think that anyone who wants to get into it can look at other nations that have lower health care and only a smaller portion of the their health care cost comes from the pharmaceutical industry. i've been beating on the pharmaceuticals, i'm not going to stop but if you're only

looking at 20% the problem, you're missing 80% of the solution. melissa: congressman issa, thanks for joining us. i appreciate night of course. david: we have breaking news on something we spoke of earlier. we have major headlines coming from treasury secretary steve mnuchin. according to reuters, mnuchin says the administration is ready to make a trade deal with china if, if china is sincere on meaningful changes and that the trade deal requires protection for u.s. intellectual property. they're also saying, that is, the treasury department, they're closely monitoring raiserecent weakness of the chinese currency for recent manipulation. he respects the independence of federal reserve and chairman powell. melissa: socialists hitting the campaign trail. new friction within the democratic party as alexandria ocasio-cortez takes the stump with bernie sanders in kansas this afternoon. next steve forbes, forbes media chairman sounds off on the democrats hard-left turn.

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>> when people are working at minimum wage jobs that won't support them or they're working two, three, or four jobs to try to pay the rent and keep food on the table then simply saying the unemployment figures have gone down just doesn't get you there. david: presidential hopeful senator liz warren coming to the defense of the rising social it star among democrats, congressional candidate alexandria ocasio-cortez. but the democrats talking down the economy, stands in marked contrast to this poll, look at it. came out yesterday. showing that even most democrats think the economy is doing pretty well. here now is steve forbes, forbes media chairman. so steve, democrats are not only fighting republicans on the economy, they're fighting their

democratic friend. >> talk about fighting the last war. i'm surprised they haven't brought out calvary and horse-drawn carriages saying this is future. even though many of these people are young like the congressional candidate their think something asfied, they're dinosaurs. socialism hasn't worked anywhere. they think the american economy is stalled. the american economy is moving f we don't mess up with trade, we'll see growth rates we haven't seen in generation. hello. david: you think of the famous phrase, it is the economy, stupid. we have the november election coming around the corner, with 60% of the democrats thinking economy doing pretty well, what does that mean for the election coming up? >> it means the democrats are stupid, not the economy. and the republicans, this is an election for the republicans to lose by not getting turnout, not coming up with proposals. david: doing what the republicans in the senate now doing, stalling on this plan to have phase two of the tax cuts.

the house wants to push through a vote on phase two of tax cuts before the election. but the democrats are stalling it, excuse me the republicans are stalling in the senate. why? >> because they don't think they have the 60 votes to pass. they forget, we're frame issues right now. house, go ahead, pass a juicy tax cut. send it over to the senate, say, do something. if it gets voted down, they have an issue. we tried to get it. we need more republicans to get this thing through. frame the debate. instead of being passive. david: meanwhile the president getting a lost feedback what he said about the federal reserve. mick mulvaney, director of omb, fought in favor of what the president was saying. i want to play that, get your reaction to it. play the sound bite. >> a lot of economists, supply side economists are extraordinarily frustrated that the fed, which is demand sort of driven analysis will always pump the brakes just when things start to get good. they say they're worried about

inflation. that is great. inflation is too much money chasing too few goods. when you're in expansion caused by supply side where we think we are, you tend to see less inflation. david: what do you think? >> practices parity does not cause inflation. bad actions by the federal reserve cause inflation by creating money undermining value of the dollar. so it is in the hands of the fed. that's why, that's why i think the president was perfectly right because when the fed starts talking about overheating, do you feel if you get more money you're overheating in do you feel prosperity means you're overheating? most preposterous thing in the world. the economy is not a machine, it is people. when people do well, what is wrong with that? they have have absolutely crazy thinking. the economy is not a machine. it is we the people. david: it is we the people put the economy is very often ma manipulated by governments. >> yes. david: the president, mick mulvaney, pointed out china

manipulating their currency in order to make it weaker so they can sell more of their goods abroad. there may be actions taken in that regard. certainly been devaluing their currency all week. what do you think about that? >> with china, i don't want to defend china but when china had a stable currency against the dollar, we said it was currency manipulation. david: that is what mnuchin is calling it right now. >> leave, the problem with china is not currency. the problem with china is trade abuses. not letting our people in. forcing partnerships they don't want, giving away technology, things like that. those are the problems we need to focus on. what china should be urged to do, fix the yuan against the dollar, the way hong kong did 35 years ago. it is not an issue. focus on the real issues. david: if we could get the republicans in the senate to do their due diligence with regard to tax cuts, it would be even better. >> it would be even better. they could start earning their pay. how about that? david: we saw the president landing in new jersey. melissa: the president aboard

marine one. just landing, touching down in morristown, new jersey. near bedminster where he will be going out spending weekend. david: next door to steve forbes. melissa: he could have given awe ride. david: that's right, steve. >> i would rather be with you than the president. david: god bless. good answer. >> we're looking at door. will we break anyways? somebody want to talk to me. it is friday. but imagine a world where that meant you didn't have to do work today? one company is testing a four-day work week. you might want to bring the results to your boss. ♪ 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.

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that's the same things i want to do with you. it's an emotional thing to watch your child grow up and especially get behind the wheel. i want to keep you know, stacking up the memories and the miles and the years. he's gonna get mine -but i'm gonna get a new one. -oh yeah when it's time for your old chevy truck to become their new chevy truck, there's truck month. get 18% of msrp cash back on all silverado 1500 crew cab lt pickups when you finance with gm financial. that's $9,000 on this silverado. plus, during truck month make no monthly payments for 90 days. >> work less, relax more. a company in new zealand is trying to implement a four-day workweek after a trial run proved to be a massive success. david: perpetual guardian revealing during its study employees were able to maintain their job performance while reporting greater productivity,

reducing overall stress levels -- [laughter] employees were paid for five days of work, but i think it's hogwash. melissa: i'd be cheerful if i were paid for five and only worked four. david: americans work harder than people in new zealand, sorry. >> right now north korea is illegally smuggling petroleum products into the country at a level tata far exceeds the quotas established by the united nations. the united states reminds every u.n. member state of its responsibility to stop illegal ship to ship transfers, and we urge them to step up enforcement efforts as well. elizabeth: secretary of state pompeo and u.n. ambassador nikki haley tell thing u.n. member states step up because north korea's evading sanctions, and it's your fault. former aide to u.k. prime minister david cameron is here to talk about it. also tonight socialists taking their message to the heartland. bernie sanders now rallying