stuart: all-time record high. how about that ladies and gentlemen. if you think i'm going to retire i made a little money on microsoft, think again. i will die in this chair. careful, stu. neil cavuto, it is yours. neil: we can make that happen. so botulism. throughthrow it to cauto. man, oh, man. we're following what is happening on wall and broad. we have the tape out, right? everyone thought that would get all of washington tongues wagging. it has but hasn't got sellers out in mass. sort of like the trade thing. president upping the ante. stern warning to the europeans. do something about this or i will do something about this the latest proposal that seems to get a great deal of attention that could be mitigating the selling going on is his plan, even in the face of

20 billion-dollars retaliatory tariffs from the europeans, let's make love, not war on all this. drop the tariffs between us. send a signal to the chinese. so carve out a special deal with the europeans. easier said than done. given the market's resilience in the face of all the crosscurrents, obviously hope is springing eternal there. we have john tamny and jared levy and michelle mckinnon. time and again when we discuss this it is always amazing the notion that the markets see past the fears. even today. what do you make of that? >> absolutely. trump has been unconventional since day one but the market is looking at the fundamentals and what we're seeing historically low unemployment rates, consumer confidence is up, and record-breaking corporate earnings where over 90% of the s&p beat expectations.

neil: you know, john, if that were to continue, great backdrop, numbers are far better than expected, they're expected to be that way but many solve these companies do give a a lite bit i call it guessing guidance about effect of trade and they're not enthusiastic what could happen but they unvariably hope that it never comes to that. are you in their camp, that it never comes to that? >> let's hope so. i think markets are broadly saying that. markets never price in the present. they price in the future. what we have to hope comes out of this, donald trump means what he says about zeroing out tariffs between the u.s. and the eu there is easy way to do it for him to say we're taking down all eu tariffs for production in the eu. this is the great for economy. they have more competition for

their paychecks. better yet companies most exposed to global competition are by definition the most successful simply because they are most keen to what is happening in the marketplace. do it first, and watch the world follow. we all would be better off. neil: john, what do you make of that? >> good luck. trump has a very -- his sophomoric approach, right is kind of crazy. he is poking condition at hundreds of billions of dollars of trade that could have deep ramifications. imf warns like potential of $430 billion in detriment to the global economy, i'm sort of in agreance, right? if he projected that zero out tariffs and subsidies, by the way we can't zero out tariffs but zero out tariffs, to put it out there that is pretty bold statement. he makes a lot of crazy ones. that is pretty bold and.

if he makes something out of this when which he needs to. people don't believe till was full on trade war. markets are pricing in my belief, a lot of issues are worked out next couple months. it is all about price. these companies are buffering these tariffs now but as that goes on those price increases will trickle down to consumers. that is when it becomes a real problem. neil: michelle we're going on strong earnings handily beating street estimates. we have tax year that was much higher, and estimates are much better than expected. how long do you expect that backdrop to be as strong how many more quarters do we get juice out of this. >> i think couple more years. neil: couple more years? >> everything about this economy and this market cycle has been

extremely long. because we're late in cycles, doesn't mean it is going to stop next year. we could be a couple years out for sure. neil: you know what's interesting, john, i discussed at the outset all worries markets shrug off. legal wagons circling around the president with release of this michael cohen tape, tells you something, even on mueller front, investigation front, not too worried, not too concerned. do you share that? >> i don't think there is much to that. my guess for trump, better off more mueller and others came after him, it with probably galvanize his base, look how well president clinton came out witch-hunt long ago. i'm guessing trump will come out of this well too. i think markets are sloughing that to the side but imagine rally you get, if theres were truth to idea get rid of what injures everyone which is trade

barriers. like jared i'm not holding my breath but fun to imagine on occasion how much better u.s. economy if we were open to the world's plenty so fingers crossed. neil: jared, say you're not a fan, many are not, you expressed reservations about the president's approach on trade but i can imagine say a successor were to come in, say we resolve this, that's possible by the way, and let's say we were to desist and to stop, wouldn't it remind americans, wait a minute, these countries are still hosing us and we've given up trying to deal with that? so in a way did the president, say what you will of his approach, put americans on notice, this is happening right beneath your noses? >> i think that it's important to bring up because i think the majority of americans don't understand the way trade works and how these, there are imbalances but at the same time, neil, let's tell it like it is. we wouldn't be where we are

today if not for really cheap goods from china. we wouldn't be where we are today without a lot of imports from europe, and truth is america is pretty darn wealthy, we pay for luxuries we enjoy. granted some tariffs may be excessive. we could bear or enjoy a little bit of reduction for the end of the day, but we're prospering because of global trading. we certainly could adjust areas, i wouldn't get too hung up on it. i don't think we're being treated as unfairly as people believe at least in europe. china may be a different story but not in europe. neil: we have a lot of money. we spend it, we buy a lot of that stuff to your point. michelle, one of the things very obvious, the price of a lot of goods americans are used to getting are going up even as we speak now and they will go up sharply. i don't think a lot of americans will realize that. do you think it is incumbent upon the administration to prepare americans for that? the president touched on it

more, even yesterday in missouri, but yeah, follow me for the good, it will take some time but be better off tore it but you are, be prepared for some sticker shock here? >> i think inflation is very natural late in the cycle anyways. so people need to prepare for that. neil: this is man-made inflation here. you know what i mean? this is something that goes beyond the norm, right? >> absolutely. but i think at the end of the day, our hope trump will figure out a deal and hopefully contain a lot of that inflation. neil: do you think that will happen? >> i do. neil: what if it doesn't? >> well we can't base on assumptions. we know he is trying. we'll have to wait and see. neil: your assumption he will? >> yes i do. neil: i like few chair, -- touche. john, do you think this all works out, that the markets are playing the assumption it all works out? >> markets are not priced for it all working out because i don't

believe they retraced their highs. the ideal working out that trump would stop negotiating all together. what he is misses countries don't trade, people do, we're much better off, that whole world competing to serve our needs selling the whole market. remember the quote, trade deficit we export shares of most valuable companies in the world, the world wants them. that doesn't count in the balance. what we import does count in the balances. so that is all it is, it is a sign of great american prosperity. the less trump does here better off. i would love to see zero though. neil: we just might. hope springs eternal. thank you all very much. down about 52 points as we're speaking. secretary of state mike pompeo will meet with the president before he faces the senate. this foreign relations committee diplomacy and national security briefing has been entitled update on american diplomacy to advance our national security strategy. russia will be a huge part of

that. especially now. more after this. ♪ what about him?

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a plan like this helps pay some of what medicare doesn't. so you could end up paying less. and these are the only plans of their kind endorsed by aarp. selected for meeting their high standards of quality and service. call unitedhealthcare insurance company now to request this free decision guide, and learn more. like, medicare supplement plan, give you the freedom to go with any doctor who accepts medicare patients. it's nice to have a choice. and your coverage goes with you, anywhere you travel in the country. we have grandkids out of state. they love our long visits. not sure about their parents, though. call unitedhealthcare and ask for your free decision guide today. neil: we're waiting for secretary of state mike pompeo. he will be meeting with president trump all of this before a grilling in the senate no doubt because of president trump and interaction with

russian president vladmir putin last week in helsinki, finland. hillary vaughn following all of that. reporter: hey, neil. congress is hoping to squeeze more details out of secretary pompeo about what happened behind closed doors in helsinki when president trump met with president putin. before this hearing the president is meeting one-on-one with the president to expect we talk over details of that meeting. this white house huddle has senate intelligence ranking member mark warner skeptical. >> my concern is, i think secretary pompeo will give his straight version of the facts but we don't know if the president even will relay truthfully to secretary pompeo. that is one of the reasons why there is huge, huge concerns on both sides. reporter: we expect pompeo todown may some of the doubts surrounding this helsinki meeting what actually happened and set the record straight how this one-on-one meeting and building this relationship with

russia actually works to benefit u.s. foreign relations and our goals but pompeo will face questions about a possible second putin-trump summit. warner says a second meet-up woo be bad idea. some republicans they encouraging this relationship might be beneficial. >> i don't have any problem with subsequent meetings between the two of them. you know, and it is all in the interpretation of what you, what you think happens but i think would be last it tell the president what to do. reporter: pompeo faces questions about status of denuclearization, and ongoing discussions with north korea. on top of this, questions about tariffs, trade, where the u.s. relationship stands with mate know. each member will get seven minutes to question pompeii -- pompeo to put him in the hot seat. the hearing begins three hours from now, neil. neil: thank you, hillary. the back and forth with of the

tape recording with between michael cohen with soon to be president donald trump months before election day of 2016 where it was pretty clear the president was approving a payout of some amount, whether in cash orb check. we can debate this until the cows come home here to former "playboy" model did he. fox news contributor lisa booth whether this is distracting from a lot of other good stuff going on. i should stress, lisa, whatever you make of the tape, the ticker read of wall street reaction is like collective shrug. >> of course it is a distraction because i have a feeling president trump doesn't want to talk about this right now. neil: he tweeted about it, right? >> yeah. is this his previous presence for conversation of the day? probably not. he has to talk about it because it is out in the media. he is getting questions and he wants to try to clarify. this is distraction in the sense this isn't what he wants to be talking about. in a sense i end do i thises it

haim pack necessarily on his presidency or way most of his supporters view him. ultimately if there is i am crime took place, which we don't know about yet, if there was one, that would obviously have much bigger impact. neil: let me ask you this. i'm not a lawyer. >> me either. neil: i watch a lot of legal shows. >> i watch "law & order." so we're basically lawyers. neil: here is what i wonder about. whether he paid cash or not, whether that is legal or not. obviously the source of the funds is issue. if it didn't come from the campaign, i'm told by other lawyers perfectly fine. still having said that $150,000 in cash, you don't see that every day. that is a little weird, right? >> obviously it is not a good look. neil: right. >> again this is not what president trump or the white house wants to be talking about. that being said, abouter things voters will ultimately care about heading into 2020 for instance, things like the economy. things that impact them on a personal level where this does not. let's be honest.

if this was vice president pence and this news was hitting, that would have much bigger impact. president trump has been honest about his life-style, things that have happened before being in the office. i think voters are very aware of that heading into the polls on election day. neil: one thing that helped bill clinton. if you go back in time because say what you will of him, people kind of knew what they had and wall street and i remember covering this, preferred to have him in office than out of office because he was very good for the markets and economy. they didn't want to see him go. >> things in the economy are strong. polling a month ago, 10-year high on majority of americans feeling like the economy is either good or excellent. things like that i think will have bigger impact for both republicans in midterms. neil: i definitely think you're right about that. along comes elizabeth warren with interview on cnbc, she talks up idea of getting rid of the tax cuts, raising top rate upwards to 50%. people are reminded, wait, say

what you will of this guy, he is not taking that approach. >> exactly. look, i think certainly does help president trump. juxtaposition, what will happen, even say democrats take over the house, ability for democrats -- neil: by the way is that happening? what is the latest handicap? >> it is tough. so early. majority of the races i worked on you really start to see things turn around september time. i think just sheer amount of retirements that republicans have had is difficult because it is much easier to get reelected as incumbent. not having that -- neil: i think republicans will lose, again, conjecture, republicans will lose a lot of seats in the house but not lose control of the house. >> don't know yet. neil: i think you do know. you're blocking. >> ooh i'm not. senate for sure i can go down as record. neil: actually in the senate they could increase numbers. >> potentially could increase the senate. house will be a lot of seats lost. neil: republican house, change

dynamics for full press to impeach the guy? >> i think it would be dumb of democrats if they do. sure as heck hurts trump in his effort to move things across the finish line in terms of legislation. in terms of getting anything done, between now and 2020. would make that a lot more difficult, which does impact his re-election in trying to say, hey, look, i'm putting points on the board because they will obstruct that process. it has massive sim pack. neil: if economy always decides everything. everything comes back to that. >> economy, stupid. not you stupid. neil: call me stupid, okay, fine i like have you as guest. rudy giuliani is commenting on michael cohen thing, if he could hen is telling truth, why are they misrep ending language do not pay by cash, check, and why are they leaking privileged information. so much for ethic. >> i think a lot of information will surface coming weeks and

days. there is a lot of moving parts. i want to see what else surfaces. and we get clarification. michael cohen said he could take a bullet for president trump. clearly there is deep divide between two camps. lanny davis says there is lot more coming and a lot more information. we'll see information surface. the key point is any illegal or is it embarrassing or distractions and things they don't want to talk about, the thing with cash, it is just weird. just weird. >> my understanding from what i've heard from attorneys, which i am not to be clear. neil: right. >> that it doesn't really make a much of a difference, if it is cash or check. more where the source, if it came from campaign money. neil: came from the campaign and went right to the "national enquirer," stopped there to stop a story, raises other issues. >> campaign finance issue.

we don't know if there is any laws broken to be clear. there may not have been so. neil: then again you're not a lawyer. you haven't watched as many legal shows as i have. you might -- >> i will go home, watch "law & order" and anything else i can get my hands on. neil: lisa booth. independent voice women's fellow. big deal. there is a heat dome blanketing parts of the united states. one out of five americans are feeling this. it could go still higher. the temperature and number of americans feeling it after this.

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neil: you're not imagining it, it is hot outside increasingly much over america the same deal. very, very high temperatures in some places triple digit temperatures, throw in some floods in some areas, you have a lot of americans feeling something they did not expect to feel.

meteorologist rick reichmuth ahead on this, latest from the weather center. hey, rick. >> normally this time of year we start to think about hurricanes and what that can do to our weather stories. we have incredible temperatures. here is today's highs across parts out southwest. this is arizona, dry heat, it is but well above normal and 116 dry and humid is incredibly hot. 123 in death valley. 112 in vegas. you get the idea, heat is here. we see a slight break around phoenix. we get more average. area of high pressure settled across parts of the southwest doesn't really break all the way through the weekend. high temperatures remain very high. also, we had all the heat last week across parts of texas well, it is a little bit better. we were 108, 109 in dallas. get this, we're back into the 103 range.

not much precipitation. monsoonal activity acrossair sown is tapered a little bit. maybe that will come back by over the weekend. however go to the east of that, unseasonably cool temperatures across parts of the plains. east side of that low area we have low pressure and all this moisture. it is causing dangerous flooding across parts of mid-atlantic, interior sections, pennsylvania and upstate new york. future radar, more rain throughout the night into tomorrow, but the overall pattern doesn't break. we see a break overnight thursday, friday, but in general we see a rainy pattern next couple days. flooding continues from the carolina coastlines and up through new england and parts of new york. too much rain, too much heat. that is what we're dealing with. neil: always good news merchant. we appreciate that very much. fallout for all of this?

higher prices for a lot of things. here to explain kingsview asset management cio scott martin. scott, what is the fallout for us? >> there is a big fallout, neil. if you're out west fighting the heat, you're seeing power bills get in a word, ridiculous, frankly. double, triple, some cases as far as kilowatt hours. here is the thing. one of issues going on, neil, despite the fact it is clear from the previous report, mother nature may be trying to kill us with the crazy weather going on, the fact our infrastructure is hurting. our power grids are hurting. the fact california, arizona, import so much gas from texas where you have pipelines shut down, neil, pipeline projects abandoned, shut down, not constructed, really reflection that demand is of the charts. we don't have ability to get gas there to supply. neil: you know, if you're the federal reserve, seems like a stretch, you're watching this, sometimes i know weather changes, i understand that, but,

does this weigh into your thinking, with higher utility bills, possibility of tariffs coming in, higher, you know, costs for everyday items, how does that affect your thinking going forward? because you're looking at inflationary impact but looking at the potential slowdown effect, right? >> yeah, to the degree it gets sustained i think you have to be concerned. being a weather buff that i am, you do realize as it was noted things do go in cycles. eventually patterns do break. sometimes takes a week or two weeks. if this was sustained heat wave for months, with polar report tests in the east and wintertime, you see impact on things like retail and consumer. the fed has to watch it closely but this is something to me i think will pass but impact will be something that is going to hurt retail certainly for the near future. neil: okay.

really lost me on polar vortices. >> you forgot about that? neil: you are so brilliant. talk about technology what will happen here. looking facebook today, amazon tomorrow. i know numbers we've gotten so far, google alphabet a reminder there, but even in the face of $5 billion fines, its stock can race ahead on notion it more than can absorb it. >> yeah, that is chump change to a lot of these tech companies today, neil. frankly it is interesting when it comes to the european union and all the fines and some things talked about here in the u.s., as far as the eu, how we go after them as far as private sir, a lot is already baked into stocks in my opinion. not to make you too hungry here. we'll start taking bites of more tech companies as we approach earnings. you mentioned facebook coming up. amazon tomorrow. we've been buying up tech companies on any little weakness there has been in them, because of a fact i believe all the bad news is already in there.

as we saw with google couple days ago. good earnings are being delivered are. stocks are being rewarded with higher prices. neil: my friend, always good to have you on. thanks for the polar vortices. >> it comes back see you in six months or so. neil: glad you're on top of it. meantime americans are saving more from the tax cuts. we actually have hard data on that that isn't discussed. just looking at numbers. we're not painting it red, painting it blue. we're just looking at the green after this. ♪ ♪ a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪

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neil: all right by now you know we'll get second quarter gdp number on friday and it is expected to be big, maybe historically big. some say 5%, better than that

but there are some signs at least that the quarter was ending things were slowing particularly coming to housing. susan li has the latest. >> definite signs of weakness in the housing sector. we saw an eight-month low for new home sales, falling over 5% from the month of june, from may. 631,000 new homes sold. that is less than what economists had predicted for the month. average selling price for a new home falling from 4% a year ago. $302,000 is the average. i would say it's a supply side issue with home building the strongest in 11 years, there are a lot of new homes up for sale. inventory ticked up to six-month supply. that is highest rate since last summer. higher mortgage rates possibly deterring home mortgage buyers. fix rated is 4.57 in month of june, half a percent higher than in january. way below mortgage rates from the past decade where they hit double digits.

we should remind viewers there is lot of volatility month to month. there is a large margin of error. existing home sales which make up the bulk of housing market, falling 2% for the month of june from a year ago, that makes five out of six months this year we've seen a sales drop. housing is important to the u.s. economy. representing 15% of u.s. gdp, something probably we and banks keeping an eye on. neil: thank you, susan. house is talking about idea of tax reform 2.0. a lot of rates for individuals expire 2025, not like the corporate rates which continue because of budgetary reasons for 10 years. that is what the 2.0 measure they're talking about make permanent the rates for good reason. republicans point out to the heritage foundation and others that the average american family

raised $2900 this year. they look at it differently. that is not money they're saving. money they're making. democrats look to roll back some of that activity. we're told by elizabeth warren tax cuts done more harm than good. she wants to hike the individual top rate to 50% from 37% right now. former bush 43speechwriter and robin biro and "axios" editor-in-chief nick johnson how all of this is playing out. i think, this is going to be tough sledding to get a measure, 2.0 measure whatever they want to call it in the house even introduced in the senate. where mitch mcconnell, last time i talked to him wasn't keen on it, right? >> they could introduce what they want but that is aspirational legislation. we're in late july. august is coming up now. this is an election year. there is not a lot of work left to be done in the house or not

legislatively. they have to fund the government. keep that open. they may have to turn to again in the fall. senate is focused on confirming president trump's supreme court justice. this is messaging legislation. very unlikely, neither the house or certainly the senate would act again as something as controversial as tax overhaul. neil: wasn't the dow or concerns that mitch mcconnell had in the senate, would give a lot of those democrats who are vulnerable another, shot at this, to vote yes, maybe improve their election chances and rob republicans of an opportunity to pick up their seats? >> that may be the concern but it would require a lot more attention to be paid by voters than typically they do. i think that ultimately it may not have a chance of passing at this time, it is very good signaling by republicans to show they're getting back to basics of their party, expanding opportunities for people, particularly opportunities to increase their own worth. neil: robin, the response from a lot of prominent democrats

including elizabeth warren in "new york" magazine pegged as a early front-runner for the presidential mom nation couple years from now that the whole thing should be junked. it is tilted to the rich. the rich would be paying a lot more than they are right now, top rate of 50%. how will that go down? >> i really don't like that. what i would like to see them do, look at some of the positive parts of this. for example the, i support the universal savings account. i think that sounds like a great idea. i wish they would talk about that. in favor of starting, cutting start-ups initial costs i think that's great. i would like to see them talk about the good things while also talking about so things they dislike, that could be improved upon in this plan. i think that would do much better for optics than just coming out against it lock, stock and barrel, neil. neil: this is battle for the soul of the democratic party goes something like, you raised

this before, very hard left, you know, position, maybe that is espoused by elizabeth warren who recommends taxing the rich more. you know, junking this whole tax plan. where does this all go? what does it say about the democratic strategy that is sort of like a more recent version of the crumbs remark that nancy pelosi made? >> yeah, i think the way to look at this is a lot of messaging. we're a long way away from the 2020 election. so we have a long primary season. how democrat would position themselves in primary, very different than how republican would position themselves, looking for very core base of either side of that party. neil: that is where the passion is. >> exactly right. i think the passion in that party on democrats right now absolutely would be to blow away the republican tax bill, abolish i.c.e., medicare for all, single-payer health care. those leading candidates are starting to get out ahead. where is this won at start?

base voting with enthusiastic people. republicans and democrats are looking at from a messaging standpoint. republicans would like to pass a tax bill making cuts permanent. that is is unlikely. democrats would like to roll it ought back. that is unlikely. they're trying to compete on political end now. neil: the very fact they're raising this issue, republicans for tax cut 2.0, whatever they call it, they're getting about higher gas costs, the higher costs in general, as a result of tariffs or even just the threat of them are, sort of chipping away at those gains. >> absolutely. neil: they're getting nervous. >> yeah, they are the economy is bread and butter issue. it has been doing so well. tariffs slowing down, higher gas costs, costs that affect consumers where they live is something they have to be concerned about particularly for the midterms. ultimately they need to get the

message off of those negative things. to say we do care about your pocketbook. we care about the fact you can't save money if government takes a cut of it if you make a small amount of interest. neil: that is interesting point. robin, one of the things that befuddled, maybe annoyed about americans, questioned about the tax cuts, so few notice it, because for one thing, their checks are automatically deposited, don't quickly see it. seem as bit of a stretch to me, but argument goes, republicans feel they did all the work to get tax cuts, but now americans are not seeing it to the degree they have in prior tax cuts. and that's one thing democrats like to hear. >> well, you know, there is a explanation for that. it is very simple. that is that their health insurance premiums are going up. take-home is not all that different. that is one thing that democrats do plan upon seizing upon in the

midterms is specifically health care. the insurance premiums. what we can do, what this administration has done to sabotage obamacare what we can do to right the wrongs, neil. neil: we shall see. thank you all very, very much the dow down about 44 points right now. ted cruz on these security clearances and president zeroing in on six democrats he said should lose them fast. wait until you hear, not what you think about these six but the better than one million who have similar security clearances. you heard that right. after this. 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.

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♪ neil: how long do folks have this type of access, senator, and how many? >> well, listen, i think you raise a perfectly fair question which is not clear that people should be maintaining security clearances if not needed for their current responsibilities. when someone in the job as head of the cia or direct are to have national intelligence obviously it is needed intensely, if you're not in that roll anymore, doing something else in the private sector, not clear why it should be maintained. it doesn't help the national security interest when someone like a john brennan, former head of the cia, who begins screaming

that the president has committed treason. that kind of overheated rhetoric is not productive, it is not helpful. and it just tears us apart. so i would hope that these former officials would demonstrate some restraint not to immediately go to extreme hyperbole. neil: all right. that was senator cruz, starting with the president, that he is justified in looking at the security clearances that have been granted, what some republicans are calling the sinister six. director brennan, director comey, director under national security under barack obama, james clapper, national security advisor rice, former number two at fbi andrew mccabe. in the case of mr. mccabe and case of mr. comey their security clearances are no longer in effect anyway, but what is startling about this the number of people who have them period,

way, way beyond these. i want to explore this with former justice department attorney, john yu. good to have you back with us. >> thanks, neal. neil: i can't believe these numbers. apparently 4.1 people in this country have some form of security clearance. i can understand the high number given those that work in defense companies or establishments or contractors but 1.3 million have this top security clearance, that is raising eyebrows. that is a lot of people. how did it get so high? >> i used to have one of those top secret clearances when i was in the government. but when i left, i was read out of it, taken away. that is appropriate. what you're seeing are a lot of people, a lot of those people are people still working in the defense industry, working for businesses that support the national security functions of the government. but i think you're right what you're implying in the previous segments was, why are people not

working in industries, people left the government, didn't need security clearances. i didn't need it anymore when i left the government. it would be a good rule to take away all the security clearance unless there is somebody directly working on something like a defense contract or intelligence contract. neil: i'm perfectly comfortable with you having a security clearance, you strike me as fair, balanced guy, not singing anyone's political praises or criticisms. what concerns me, what concerns the president, is the fact that it is a courtesy i guess given to a lot of folks. of course he is chafing at those critical of him, not necessarily of those citing security clearances given to those who say nice things about him but is that a courtesy at a certain level? if you're a former national security director, if you're a former fbi head, if you run the national intelligence, you automatically like that is security clearance for life? >> i actually agree, i don't think they should have security clearances for life.

trump has a point but i think he is is going at it slightly the wrong way. the real problem is not whether all those former officials have them. the real problem you have almost a revolt by former leading national security officials against a sitting president. i think that is unprecedented, if you will. i don't remember in our past where someone, cia directors are out tweeting, attacking the president. usually if you held one of those very sensitive jobs, you would wait a few years before you started attacking the people who just replaced you, before you start attacking the president. in some ways i wish these officials would follow the lead of their commander of chief, president obama, who has been far less aggressive, is not implying he has secret information that gives him the right to claim that president, the current president, president trump somehow a traitor or a russian asset. i think that is a real problem. that used to be, we used to be able to rely on former officials to exercise judgment and self-restraint and they have

lost it. i can understand why trump is lashing back at them, i don't think taking away security clearances is really the right tool. neil: it does seem a little petty. i understand where he is coming from. i understand the added onus, burden, whatever you want to put on the president to be above that kind of a fray or not to agitate. maybe this is a simple as that. i don't know like separating my two teenage sons. well he did it, i'm going to do it. you know what i mean? they feel justified. the president has besmirched us and our intelligence apparatus and our very personnel. i will go after him. you need a mutual standdown here. we're not getting it. >> you're giving your teenage sons a lot of credit there i think actually. these intelligence officials don't deserve that kind of credit. neil: i want to send them all to their rooms though, you know, without dinner? i guess you can't do that with the president. he is in the white house.

he can order it up. my point half facetiously say, we have to get a handle on this first of all a lot more people than i ever thought have this. that is a pretty nice benefit to have that. for life. >> well, certainly a great value of companies to hire employees like this. you're right, it sets some people up to do certain kind of work which most americans are not eligible to do. >> don't they share that information, that they're not supposed to share, isn't that one of the reasons to have them on board because maybe they will? >> well, exactly. the reason they continue to have security clearances is that they used to have knowledge about some of these very highly compartmentalized, key word kinds of information and might be useful in their current work but as you say it does sound we have been far too generous as a government handing these things out, not recalling them once people leave. it should be done much more carefully, especially since

there is so much incentive to use that security clearance as implication to back up these kind of political attacks and political statements. neil: all right. john, great seeing you again. thank you very much. >> thank you. neil: john yoo, former doj attorney all i know if at fox, if someone fires you here, your pass stops working, they have pictures at front door. i just don't like pictures. more 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- . in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- mbc, approved, with hormonal therapy, as an everyday treatment for a relentless disease. verzenio + an ai is proven to help women

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. neil: all right. the president is minutes away from meeting with the european union, talking about things that maybe the europeans can do to strike a deal with the united states, and maybe just the united states. the president sending a signal he's open for that. maybe mutual disarmament here, and that would sort of get the chinese a little concerned and worried and maybe force a deal with them. we're told it's working on a variety of levels. it's confusing, but a very proficient chess player, blake burman joins us from the white house, following all of this. what's going on? reporter: confusing for sure, neil, could this be a very interesting meeting as president trump is set to sit down in the oval office with jean-claude juncker, the president of the european union and commission. keep in mind, the president

called the eu a foe in recent weeks and there could be potential, quote, retribution as he put it, leading into this meeting earlier today, the president was trying to position the u.s. as the one winning this global trade tit-for-tat in a tweet he wrote the following -- the president's top economic adviser larry kudlow early this morning set a pretty low floor as it relates to the expectations of this upcoming meeting. >> expectations are so low, that i believe it is possible, i don't want to predict, it is quite possible that people may be very surprised on the upside. reporter: the big issue, of course, is auto imports. u.s. cars that go into the eu get hit with a 10% tariff on the reverse side, cars that go from the eu into the u.s., just 2.5%. president trump publicly has

threatened to increase that eight-fold, hence that tremendous retribution up to 20%. the agriculture secretary sonny perdue told maria bartiromo that autos are indeed the big one. >> the eu has a huge economy, and they only import a smidgen from the united states. we are capable of producing a product that customers want and president trump simply wants to level the playing field. autos are a good example, and that's their juggler. reporter: that is their jugular. after the 1:30 meeting between president trump and jean-claude juncker, the president will meet with a dozen or so republicans this afternoon from states who have a heavy agriculture presence. as you know, neil, the european union like china, just like mexico, canada as well, they are targeting agriculture industries as it relates to this ever-expanding trade

tit-for-tat as some would say a trade war at this point. jean-claude juncker 30 minutes from now at the white house, neil. neil: i'm so anxious. thank you, buddy. always good. general motors, fiat chrysler lowered outlook because it's costing more to build cars. nicole petallides on the floor of the new york stock exchange with more on that. hey, nicole. reporter: that's right, all about the tariffs, seen steel in the u.s. go up and they use that steel, we've seen general motors, fiat chrysler lowering the outlook. the stocks are to the downside. fiat chrysler had a change in the ceo, mike manley came in, the head of jeep. and the death of sergio marchionne, they have a new person at the helm. he starts with tailwinds that fiat chrysler is going forward and gaining market share here in north america. that being said, we're watching

boeing, weighing on the dow jones industrial average. if it weren't for boeing, the dow would be in positive territory like what we're seeing to the s&p 500. boeing down 2.3% at the moment, higher costs in the defense business cuts into margins, weighing 80 points at one point on the dow. right now a little less than that and also the commercial airplanes were problematic, they missed on the revenue. last but not least, we have ford here on fox business after the bell bob shank, the ford cfo, we'll have the numbers, just spoke to an analyst neil from the new york stock exchange, and one thing he keyed in on for autos big picture is the tax rules are favorable. if you own a business, now you can write it off in a big way, and he thinks that will help to keep propelling things. if you have a $60,000 car 100% in your business, you can deduct the whole thing. the tax rules are favorable for the automobile makers, too.

i think that's a good one for everybody. back to you. neil: and for those who want to buy pricey cars. reporter: he used the $45,000 example too. neil: absolutely. well noted. thank you very much, nicole. the president pushing to drop the tariffs but the trade war does go on and all of a sudden you have the release of the tape last night on cnn that shows the president talks to his lawyer about paying off a former playboy model, you would think that one-two punch would rattle stocks in the fear of the unknown as has been the case of late. nothing hinting of that. what does it is a about the resiliency of this market? maybe sloughing it off. to rose cliff managing capital partner and john lonski and last but certainly not least, fox business' kristina partsinevelos. kristina, on that, it is remarkable how resilient the market is in the face of wave after wave, you know? >> we've been seeing this for months, no surprise the tapes

came out and not going to affect markets. other factoring playing into it. passive investing that's been a trend, kept the market -- neil: automatic. >> exactly. so you're not seeing as much volatility in the funds, etfs are growing larger and larger, there's more of them in the market, and that does play a roll in the trade. and accommodative bank policies, too. contributing factors and the unwillingness to care that much about what the president is doing. neil: wow, talking about exchange traded funds and all that. mike, when you look at this, clients must get nervous, they must need hand holding, what do you tell them? >> the underlying factor is the u.s. economy is in the best position in years. we have small businesses that are doing great. medium sized businesses are doing great. low unemployment. people feel good. when you see the s&p 500 reporting earnings and they're coming out with solid growth, blockbuster growth from a lot of the businesses, that's

ultimately supporting the market. i think there's a lot more room here. if you look at tariffs, for instance, what if you look past that. what if the u.s. ends up, what if president trump ends up getting fair trade deals across the globe. what do u.s. profits look like under that scenario? that's better. neil: what do you think, john? >> got to be cautious, i don't know of many business executives that think tariffs are a great idea. they're worried in the auto industry. those that use steel. remember whirlpool was initially in favor of this tariff placed on appliances from korea. they've changed their mind 100% in part because of higher steel costs. steel costs by one measure are up. neil: we did all of this if you think about it. >> yeah. steel costs up 35% to 40% for the year to date. industrial metals on average are down 6.5%. that's one of the reasons the letter y treasury bond yields are lower than expected than

not too long ago. the housing numbers are lousy. you're trying to tell me that the 10-year treasury yield can stay at 3% or higher for extended period of time? i say no until i see more strength in an area like housing. neil: kristina, all of this leads to slower than expected growth and that keeps at bay an aggressive federal reserve, what do you make of that? >> i don't know if that's necessarily a great way to say, you know, with the federal reserve and you just weighed in on this in terms of interest rates. i don't think necessarily we can use that as an excuse, but i would like to get your input more in terms of whether the federal reserve should listen to the rhetoric in the market slowing down interest rates. we expect two more hikes coming up in the next little while, and when you are bringing up the market, i don't know if that's a sign for it to slow down. there's a lot that could happen right now, especially with the trade wars. not the small -- it's hurting a

small portion of the market, i'll say. that especially farmers. but the uncertainty is what is causing -- >> i want to add something here, because of higher materials cost, talking about steel, talking about lumber. companies have less money with which to hike wages and salaries. without faster wage and salary growth, you find big-ticket items like housing are heard. neil: but the tax cuts, right? >> that's like the glass half empty look at things. i would push back and say we have so many positive things to outweigh. that yes, tariffs act as a tax and you're seeing whirlpool and the automakers get hit on that and produce lower earnings on that. the overall picture is a stronger economy. if you saw housing starts, you have to talk about the point you're coming from. coming from all-time highs or 100-year highs on housing starts. >> no you're not. you are way off compared to where you were in the 1990s still. housing starts -- i can show

you the numbers, they're down. >> new housing starts? >> down 10% or 20% from the 1990s, they haven't fully recovered from the housing crisis. >> housing starts haven't recovered in ten years. you're saying housing isn't lower than where it was three years ago. >> existing home sales are where they were during the housing boom. neil: but the second quarter ended on a weak note for housing and wondering whatever we see for the gdp on friday that's a short-lived hooray. >> i don't think it's 4%, did you see that looking in terms of how you measure it differently and climb to 4%? there was a chart about that. wage growth is not happening, across the board. boeing mentioned in outlook, companies are starting to mention in the outlooks, they're uncertain where the market is going to go. i know you said tariffs is a tax and a small portion right now, that uncertainty what's weighing. why is the trade deficit a

scorecard for the president? that's the way he's treating it. >> when you talk to investors at home and uncertainty, tell me one point in history where it's been a certain market. >> no. we're never certain. if you're a big on the, you're not snoorn program saying 4% is gdp growth. now we're talking about 4? neil: we did have that for one quarter. >> yep. neil: but it's not repeatable. that's what history is telling us. it is a tough time to repeat. >> this is not a sign of things to come. that's what it comes down to. neil: you are a debbie downer. >> you are not going to see this repeat itself over time. i wouldn't be surprised in the third quarter if it goes under 3%. neil: you don't think in a full employment environment right now that eventually businesses are going to have to cough up more money for workers? >> they might have to but quite frankly -- neil: glass half full as we're talking about. >> production in order to

satisfy consumer demands with the existing wage structure. let's not forget this is a much older workforce today. believe it or not -- neil: why are you looking at me? >> i should look at myself in the mirror. neil: kristina gets a pass. >> 28% of american employment consists of people 55 years of age. when we get older, the wage increases are not as great as when you were young. neil: i agree with michael and kristina, your thought on this, the next step after full employment, so many people, there are more jobs to fill them but pay more for those. >> pay more or what? immigration? do we talk about immigration. neil: we'll see. >> productivity, productivity has gone no place throughout much of this recovery. if productivity takes off. >> do you think expectations are too high for productivity, it's been slowing down, not

climbing higher. maybe it's that high that we need to set a new base, a new threshold, benchmark. >> they're going to have no choice but to become more productive. get more out of the existing --. neil: how about the older ones? >> definitely. >> the youngers have insight. neil: exactly. you're saying, mike, what, then? >> small and medium size businesses feel better today than a year ago or any time over the course of the last ten years. pulling out one data point is dangerous sometimes. i look at overall marketplace right now. i would much rather be a buyer of the u.s. market than a seller, i think the companies, when you look at earnings from companies like google will see facebook later, a lot of growth in a lot of companies. tariffs weigh on certain industries, yes, if you pull out of the market now, neil, and wait for a pullback, let me know when you are getting in. neil: you are getting out, right? >> stay invested in small and medium caps like the russell

2000? >> you can have a diversified portfolio, the russell focus on u.s. businesses has outperformed as of late. >> right. that comes down? >> one place to invest, invest in the s&p 500. the top 500 companies in the u.s. some sectors underperform others but overall i think it's a great place to be long-term. neil: you are not buying on a high, the longer you keep it, the trend is your friend. >> and the growth is there, you can't argue that. neil: guys, thank you all very much. getting ready to speak for the united states senate foreign relations committee, the idea is to clarify what he thinks the president meant to say when he was with vladimir putin. we'll have more after this. what about him?

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. >> well, i may not necessarily agree with all the words that the president used in helsinki, his policies on russia, we want to be fair, stronger than the previous administration and frankly any administration since the end of the cold war in dealing with putin's hostilities. neil: all right, marco rubio saying that he's satisfied with the president's actions regarding vladimir putin, probably not necessarily his words when he was in finland last week, that's kind of the view of south dakota republican

senator mike grahams who sees it when it comes to this president including that overture to vladimir putin and issues of trade. i'm happy to have him with us right now. senator, thank you very much for coming. >> good afternoon, glad to be with you. neil: first, senator, on this ongoing story that, you know, marco rubio saying that, look, much ado not about nothing but read the president's actions don't read his lips, and on his actions he's been tough with russia. do you agree with that or did his performance in helsinki send mixed signals? >> i think the administration has been good in terms of their response to the russian activity. i think the fact they've been supportive with the ndaa and what we're trying to do to send a strong message. i think the additional restrictions that we placed on russia since the president's been elected have been good in terms of sending a message. i do agree that some of his messaging could be different

than what it is. but the actions themselves have been very good in terms of responding to this aggression that russia is showing in eastern europe. neil: if you don't mind my switching to trade, sir. i know you have been concerned that there's a risk here this could, you know, go out of whack. have you talked to the president about that? he's talking about making a deal at the european union folks are visiting the white house, this idea that they maybe cobble together a no-tariff agreement, send a message to china. they are kicking around a number of ideas. what do you make of all this? >> i like the idea of actually getting something done. right now in the marketplace, we have chaos. we don't have an agreement with canada or with mexico. we did not do the trans-pacific partnership, which was a half a billion people that really wanted to trade with us, and do that instead of trading with china. we also right now are having words with european

counterparts as well. so if we could get a win someplace where we could start solidifying and starting to take some of the markets and providing positive outcomes for our producers, that would be very welcome, and i think the president's got a lot of supporters in my part of the country. they want to see him succeed. they're just worried with regard to commodities and the prices of foreign commodities. soybeans, corn, wheat, cattle, hogs, right now that market is not good for them. after five years of declining ag income in south dakota, they can't take another year without assistance. and i think that the fact that the president offered an aid package basically about $12 billion, i think that sends a good message that number one he understands that we've got real concerns. but i think what most of our producers want to see is a chance to actually trade fairly with other countries, and so they've got the same goelza the

president, they're just concerned about what his end game is and whether or not the tactics deployed are successful. neil: you know, your republican counterpart, rand paul, was very concerned about that $12 billion pay for farmers because it mitigates the notion that we're putting tariff relief on top of tariffs that we're imposing, and it's not a good idea. what do you think of that? >> well, first of all, we'd much rather have the trade deals completed. the administration's been here for 18 months now. we don't have a single trade deal done, and so we'd much rather have, that our producers would much rather have. that here's the bottom line for them, the commodities we produce are perishable. corn, soybeans as an example. soybeans in my state down $2.18 a bushel. that's about a $600 million impact to the balance sheets for producers in my state.

they can't take that kind of a hit. so with the president offering this aid package, it's kind of like these guys are at the tip of the spear, he's offering them protection. it may not be necessarily what they want, but just the fact that he's beginning to listen to them and he's recognizing that they are in precarious positions, that's going to make them feel that he's beginning to come around to understanding how critical time is in this particular issue. neil: you think he's getting nervous? >> i'm not so sure it's getting nervous as much as i hope the preponderance of the messages that we're sending and our constituents, his supporters are sending is starting to get through that look, we get, it we all want the same thing, fair trade deals, and we know we don't have the greatest deals in the world. but right now the retaliation is actually impacting us today. the markets are down today. and i think that's the part of the message that a lot of his

constituents, my constituents are trying to send, is we want you to be successful, but please, this is impacting us right now. neil: senator rounds, thank you very much. >> you bet. neil: one thing are down are temperatures, they're in record temperature and going higher and then the flooding, and then there's a look how that could impact you even if you're not in any of the affected areas. roughly one in five americans are. after this. thing says summer like a beach trip, so let's promote our summer travel deal on choicehotels.com like this. surfs up. earn a $50 gift card when you stay just twice this summer. or, badda book. badda boom. book now at choicehotels.com

. neil: all right. this is getting scary right now. for much of the country you are either feeling the heat or looking at a lot of floodwaters. adam shapiro here to break it down. >> start with the heat wave. not only stretching resources across the western united states, it threatens the lives people who live in parts of the country where temperatures are almost 120 degrees. in phoenix, arizona, for instance, temperatures hit 116

degrees tuesday. that's what they are today. and in palm springs, california, the temperature hit 119 degrees. so california, particularly hard hit as utilities are pleading with customers to conserve natural gas and electricity. here's what's going on. southern california gas warned 21 million customers to prepare for their gas to be curtailed. why? well, utilities are burning more natural gas to generate more electricity to keep air-conditioners running during the heat wave. socal gas used 1.3 billion cubic feet of gas but had to tap into reserves to meet demand which is not expected to drop until friday. in los angeles, the temperature hovering around 98 degrees. to give you a perspective, it's usually 84 degrees this time of year. california independent system operator says peak demand hit 49,400 megawatts yesterday, the

all-time high was 50,270 megawatts, they hit that in 2006. the east coast, much different story. heavy rain and flash floods. a foot of rain has fallen in the northeast and along the east coast and more rain is forecast with flash flood watches posted across the east coast from new york to south carolina. we have electricity here, we're fortunate. neil? neil: there is that, but man, for how long, right? thank you, adam, very, very much. the european commission president arrived at the white house, they're discussing a way to zero out tariffs among ourselves and the europeans but the wedge and the pressure on when it comes to the chinese. hard to know what's going to happen with that. charlie gasparino had a spot-on column in today's new york post about the way the president has handled this when it comes to deal directly helping with the farmers and providing 12 billion in relief and mixed

messages, the bottom line is what you do for one group, you do for other groups that are hit hard by what's happening right now. charlie is here, great to see you. >> tariffs are the greatest. i can hear him say that, can't you? >> i see that. they're the greatest. >> okay. neil: james cagney, they're the greatest. the greatest. [ laughter ] >> be careful what you wish for or help out here. >> listen, there are times when you really think that president trump is not -- i don't mean fit for office in the sense he's a madman, but that he's not intellectually to carry out the job. i mean this as he doesn't have the experience, he doesn't have the knowledge, he hasn't read enough. what he did yesterday was so dumb, it defies logic. neil: which specifically the farm? >> the farm thing, he imposes willy-nilly tariffs across the board. not focus on chinese stealing

intellectual property, not dealing with trade partners to gang up on china, which is really the bad actor, you can say what you want about canada and mexico, china is hurting and stealing from us. blanket tariffs, which is dumb, and turns around and he admits that his dumb plan isn't working, right? and bails out farmers. >> do you know where that 12 billion is coming from to aid them? >> coming from your pockets, tax revenues. he may make the point we're going to have plenty of taxes, gdp is going to blow up. friday is a big day. if they hit the bogey, he's predicting 4.8, between 4 and 5, touting this, banging the drum, no better time to engage in a tariff war. neil: it's been to our advantage. >> we should show this, whatever gdp comes out on friday, it's pretariffs. like we don't know the real economics. neil: you are right about it,

why would you then do the farmer thing if you are so confident that's going to be helping you? >> you know, listen, i think he's listening to certain economic advisers, my good friend peter navarro, yes, listening to peter. i disagree with peter on a lot of the stuff. he's smart when it comes to china, the notion we should go to war with everybody is dumb. it's hurting not just farmers -- neil: but if the europeans are open to what he was talking about, let's be mutually take our weapons away. >> be nice. neil: how would that go? >> probably won't do that. we'll see. if he does that, he's a genius and wins a nobel peace prize. the chinese are hurting us, the europeans are imposing tariffs. >> maybe there is a shrewdness in that you are not appreciated. >> i hope so. neil: what gives you doubt? >> that's what people said when they put his junk bonds on the casinos. neil: they got to like the president of the united states.

>> he did a great job and made his career as a showman and marketer which he's good at. i think the economic issues he doesn't care enough about and doesn't pay attention. neil: real quickly, this tape that's out right now, i'm not interested what's on it but generally when you hear the president and his lawyer. >> cohen taping president on the payment to the former playboy model. neil: i look at it through the prism of wall street and whether it would get rattled by, that it's not. >> it's nothing damning just yet. we know the president is a philanderer. who cares? bill clinton set the bar extremely low, got elected twice. hillary clinton got more popular votes and married the said philanderer. i don't think anybody cares. it might become problematic if there is illegality, campaign finance abuse. one thing we should take off the table, i keep seeing this on social media. it's not illegal. i'm not saying it's good what

michael cohen did, it's not illegal, new york is a one-party consent state. florida is a two-party consent state. neil: to agree to be taped. >> because it's over state lines, the federal law applies and that's one-party consent. neil: anything incriminating on that, i haven't studied closely enough to know. the street doesn't feel there is. >> yet. the street is focused on 5% gdp growth. neil: we'll see. thank you, my friend. >> thank you. neil: good seeing you. i'm sure we're going to hear calls and tweets. >> did i say anything bad about the president? neil: you always do. >> i heard melania was watching us and trump got mad and said don't watch them, watch cnn. i heard that. neil: that could very well be. >> we're tougher than cnn. neil: facebook is at an all-time high in the middle of all of this. insurance that won't replace the full value of your new car? you'd be better off throwing your money right into the harbor. i'm gonna regret that.

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when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. . neil: all right, the dow might

be struggling, the nasdaq is not. technology on fire. facebook hitting an all-time high after the bell. we get those numbers. amazon reports tomorrow. so those who follow that whole sector, every time you doubt it, it's come back roaringly, market watcher david monson, keith sherel and deirdre bolton. market keeps on giving and we'll see more signs of that in earnings numbers due out. >> neil, it's unbelievable. facebook is up 30%, if you just look at the stock since its last earnings, and keep in mind in that time, we saw the cambridge analytica scandal and that was second big strike, because in the 2016 u.s. presidential election, 125 million americans saw an ad that was not generated by facebook and not manipulated by another source. the fact that the company and the stock has continued to do that well, i think proves the

exact point that you're saying. the big question analysts are looking for and perhaps our guests as well is the idea of user engagements and i in this case, people are saying facebook is lucky they have instagram. facebook is more mature. now that they've done so well for so long, the targets are harder to hit. consensus is for profits to rise by 30% and sales to rise by 43% so the bar is certainly moving higher, neil. neil: interesting. the trade veteran when it comes to technology, i know it's been a group resistant to the vagaries and back and forth of the nastiness, the president on the wire he hopes to work out a deal with european ministers here talking to him, one top official saying this we are all allies and have to work together. in other words, all the promising and right words, of course, you have to put action into that, but does that enter

into you're buying or recommending equation? >> it does in the broader sense, not specific to new tech, but i believe it has a profound effect in terms of market multiples. to the extent that a trade deal gets worked out and let's say it's a good one, maybe there is lower tariffs both ways versus the possibility of added tariff on european car imports, our projections it could add $70 billion of new tax over 12 months combined with the 50 bottom line already in. you start eating away dramatically at the benefits of tax reform. i think that getting improvement is helpful in market multiple and specific in the sectors it would be impacting but i don't think it is directly relevant in the new tech. the only thing that matters to new tech is the continual prayer of expanding multiples and valuation. neil: keep that going because

that's been, like you say, that's the great elixir. look at the dow 30 stocks, technology is ruling the roost and buffetting things. in the case, keith, if not for boeing, we'd be positive. what do you think is going on here with investors? >> well, you know, i think people have come to terms with the lack of privacy. i think they've come to terms with the fact they don't care what happens with things like the cambridge analytica data breach. i do personally. i don't like facebook i think one day there is going to be a bug in search of a windshield, i don't know when or where or how. >> i like that, a bug in search of a windshield. that's actually very good. i'm going to steal that. >> the litigiousness is mounting. the distrust is mounting. when facebook reports this afternoon, i'm going to pay careful attention to the number of users and engagement.

do people or don't people trust that company? now, when you've got amazon or you've got alphabet, you have an entirely different calculus but the same direction, big data and the way we manipulate it is where the world is going and why the money continues to follow these companies even if they abandon other traditional stalwarts. neil: deirdre, people are worried about privacy, not showing it when it comes to appetite for the stocks. either they resign themselves they don't have that or they're just ignoring it. what do you think? >> i do think that we have all gotten used to the idea that if you're not paying for this service, you are the product. we've quoted variations of that. but i think that engagement that it could eventually plague the bottom line is now perhaps becoming a business problem, so have you analysts saying maybe facebook needs to monetize what's happened messenger a little better. people are looking for what

else can facebook do aside from the main platform and main brand whether that is instagram or whatsapp or messenger and impact the bottom line. we've talked about this a lot, concerns from europe about privacy and data security, and the europeans take that a lot more seriously. they put the flaws effect toward the end of may and if any of the u.s. tech or global tech companies mess up it can be costly for them. 4% of annual growth or $30 million so for facebook and google, that's clearly going to be 4% of growth which in facebook's case is over a billion dollars. we talked a lot about the fact that europe is going to be a lot tougher on u.s. tech than anybody in the u.s. is, neil. that say risk for the companies. neil: elizabeth warren triggered something interesting, talking about europe, they care more about antitrust issues than we do. she coupled with that remarks on cnbc she would favor lifting the tax cuts and lifting taxes

on the rich to 50%. how would the markets react to all that? >> how would the markets react to the sandinista wing of the democratic party being in control? probably not. neil: interesting way to interpret that, but that's fine, go ahead. >> no, it is my way, and the sarcasm is intentional, obviously. 50% tax should only be interpreted that way. to be honest, her other comments were equally ignorant. neil: i can't imagine your point a winnable political line, whether you -- >> yeah, but see a top rate of 50% is not winnable politically in our country, but deciding to pile on with the eu in some of the antitrust rhetoric is potentially, and i agree with the prior guest about the consumer so far not caring on the privacy side, but it's more the monopoly issues with amazon and with google that i think

become interesting when the political pressure intensifies, there's no way anyone can convince me that won't have an impact on valuation if all of a sudden we're in hearings and ongoing potential for fines the way the eu acted towards alphabet last week was so irrational and out of bounds for our market economy, it's distressing to see a u.s. senator defend it. neil: she could be the democratic nominee, keith, what do you think? >> that is very scary. and, you know, they worry about capital flight between states and high taxation regions, if something like that came on the board nationally, at federal level. boy, you would see an exodus from capital in our markets, exodus from high net worth individuals, probably myself included. because history shows beyond any shadow of a doubt, neil, big government equals small wallet. doesn't matter how or why you

get there. that equation has proven itself over time. neil: i want to switch to the white house, we're getting his pulse with jean-claude juncker of luxembourg, the leader of the european union. >> thank you very much, very glad to have the president jean-claude juncker from the european union. a very smart man and a tough man and he represents his people well and the countries well, and we want to have a fair trade deal and we're looking to have a fair trade deal and hopefully work something out. over the years, the united states has been losing hundreds of billions of dollars with the european union, and we just want it to be a level playing field for our farmers, for our manufacturers, for everybody. and we also want to beat the

european union, we think it could be good for everybody and that's what we're here to discuss. mr. president, thank you very much for coming, thank you. >> my pleasure, mr. president. we are close, not enemies, we have to work together. i think that we have to talk and that's what we do today. i think we should talk about reducing tariffs. that's what we have to do. >> well, i agree, and if we could have no tariffs and no barriers and no subsidies, the united states would be extremely pleased. we have many countries, we won't say european union, where they have massive barriers and massive tariffs and we have to

follow and you could call it retaliation, but i'd rather just say that we want reciprocal. so whether it's with european union or others it has to be reciprocal in nature at a minimum. and we're working on that and i think we're making good strides. we're doing very well with mexico. we're doing well with a lot of countries actually right now, but this is something as jean claude said, together as a unit, we make up actually more than 50% of the world trade. that's a big number. that's a big number. so we expect something very positive to take place but you'll be the first to know. thank you all very much. appreciate it. thank you very much. >> thank you. >> thank you very much. thank you, everybody. thank you, everybody.

[indiscernible] >> thank you very much, everybody.. >> thank you, everybody. [indiscernible] . >> thank you very much, everybody. >> thank you, everybody. >> we're done. neil: i always wonder what it's like to be the other guy, you know, in this case, jean juncker of the european union, he's from luxembourg, hearing the back and forth and i wonder how they judge us. i wonder every time i see these pool sprays and reporters peppering the president with questions. regardless of the administration, it's got to be a very unnerving experience for the guy sitting next to the president. we'll follow all of that, and get a read now of what deirdre

thinks of that. keith fitz-gerald still with us on that. the message from the president, i'm not going to talk about anything else for the time being, also this notion he thinks he and the europeans can cobble together something. what do you think of that? >> you know, i was very taken. i focused in on his comments, observations how big a trading block we are, working with other trading partners, he's putting quite a bit of pressure on juncker already and taking a position for the world that says hey, we can work together, this say matter of sorting it out. that's classic trump whether it's irrational or boorish whatever people label this on the internet, i don't know. what captures my intention from a financial perspective is those phrases. neil: what do you think, deirdre? >> i think as far as the european point of view, being there, my guess is behind the

scenes to try to at least tamper some of the trade tiffs that we've seen. we've discussed the automobile sector a lot. these international sort of manufacturing is very interconnected and i do actually think there's a lot of worry on both sides from european automakers and u.s. automakers and the factories that they share if the trade tariffs keep getting hatcheted up, what does it mean nar sector? that's not the only sector involved but the biggest where the u.s. and europe are involved. >> guys, thank you very much. want the read from missouri congressman sam graves. you've been worried about the ratcheting up about the back and forth on this trade, you know, friction. president saying maybe with the europeans, with that guy sitting next to him, the head of the european commission, they can cobble together their own deal and that might down the road. he didn't say that in this session, that might bring china down the road, what do you

think? >> we want to get the negotiations going. you know, for far too long, the chinese have been throwing the united states around when it comes to trade deals and we get the raw end of that. the short term, it could be a little rocky, but in the long term, the president is trying to play the long game, is to get a much better trade deal. neil: do you think in the end we will? some of your colleagues say if we go about it the way the president is by essentially rand paul, paying off farmers or whether the tariff storms, that's the not way to deal with it. what do you make of it? >> the president is trying to do short-term help. he's trying to let farmers know we've got your back to negotiate a better deal. that's what we're working on. neil: do you worry, congressman, short-term help for one group will be short-term help expected of another group and another group? >> that could happen, that is the worry. farmers would rather have -- we

rather have more access to markets and focus on that rather than a handout. commodity prices are a very, very volatile thing. they've always been volatile. we didn't have a trade war in 2008 and saw prices the same point. they'll eventually come back up, it's how long that takes, but prices are volatile when it comes to any commodity. neil: do you worry this could be wiping out all of the gains on the taxes. you are looking at tax cut 2.0. might not go anywhere in the senate but certainly in the house. but this takes all that away? >> i don't think so. i think most people understand that this is, i mentioned earlier, this say long game, that's what the president is trying to do. we want fair trade deals for a long time to come, and it's going to take negotiation and tough negotiation for the first time, we've got a president out there that is working very hard to get better deals, and that's what we need for all american workers and farmers. neil: congressman, thank you.

i know you had to wait a little bit. we'll get the read on this and what the president is actually talking about with the european commission president, the idea to come up with a solution, after this. whoooo. you rely on tripadvisor el . . . .

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neil: you never know. the president could be hours away from making a deal with the european commission president. that could be just with them announcing eventually reducing tariffs on both sides of the atlantic to zero. that is one of the things the president suggested. the europeans are open to a deal

with the united states, not necessarily getting it down to zero. we'll explore it 4:00 p.m. eastern time on "your world" on fox news when president meets with members of congress what came of the talks, what they're saying about these talks. now to trish. trish: thank you, neil. president trump fighting for american workers who have been hurt by unfair trade deals. they're very unfair. the president says he wants to left the playing field we saw him there with the head of the european union on the that front. he is continue be talks with the head of the european union behind closed doors. he made a quick public statement. we'll bring you headlines as soon as they come in. dow is slightly lower. s&p slightly higher. nasdaq doing a little bit better than yesterday. i'm trish regan.