sometimes -- ashley: attribute it to someone else. >> charles, you did the right thing. charles: nasdaq is breaking key support, here is connell mcshane. >> do you have to follow tech stocks. i'm connell mcshane filling in for neil cavuto coast to coast on next couple hours. which i will be as they usually are quite busy president has been talking with conte even though he clashed many european leaders. you will have a joint news conference next couple hours. you expect trade being a big topic then the joint news

conference. we're all over that in two hours of "coast to coast." our top story is corporate earnings, been in many cases destroying estimates. if you look at the likes of caterpillar for example. the stock is up today. it topped expectations. had record profit and pretty good forecast given all the trade talk we have had is interesting. deirdre bolton is on top of that. >> knockout, numbers, connell for caterpillar. we'll pull up the board you just referenced. 112% gain in earnings for caterpillar's second quarter. that is a home run by anybody's standard. you can see how the share price is reacting. one interesting thing you talked about were the tariffs. the company said obviously it is executing well. it says it will have to raise costs in the second half of this year anywhere between 100, $200 million and a big part of that, the trump administration's tariffs policies and as we know prices for aluminum and steel have gone up. when these companies such as

caterpillar import those materials from anywhere es. that is something to keep in mind for caterpillar. as you can tell the stock for today is doing very well on the second-quarter earnings beat. so a lot of dow components reporting this week. caterpillar one of them. we talked about. watch for pfizer, png, apple. and dow. reason i'm focused on apple, we have kind of a tech hangover. amazon had a amazing quarter. connell, you talked about in reference to the nasdaq are still feeling this after effect from facebook's disappointing earnings. intel earnings in line with expectations but saying they will have some chip delays. that stock still being hurt. twitter talking about the monthly active users, that growth numb much lower than wall street expected. we'll see if we can break a little bit of the tech curse. a report card where we stand so

far, of the s&p 500 companies that reported, 82% exceeded expectations for earnings. flip ahead, almost impressive number for sales. of the companies that reported, a little more than 72%, exceeded expectations as far as sales goes. if you look how so far this quarter stacked up versus the second quarter of 2017 you will see overall in almost 23% gain from last year and, connell, i know you're keeping track, there is about a quarter more will be reporting this week. we have more than half. a quarter more this week. we'll be wrapping it up. connell: got it. see you later on in the show, deirdre. thank you very much for that. as we move into a broader discussion on all this, interesting to look at major market averages. they're not far off. down a little bit on the dow by 67 points. not far off the recent highs, even with some items deirdre is talking about, given stumbles in technology and worries and

trade, so kind of an interesting spot we're in as we get set for the midterms. the economy, even the market, kind of the wind at the president's back. let's talk about with olympic media editor, katie freitas. boyd matheson is here and our friend brian wesbury is here the economist. brian, go to you first. give a broad view even into the markets where we are. tech is interesting as deirdre pointed out, i don't know if those two companies, maybe apple tells us it a little more than that but that gdp report was something else on friday, so where do things stand with your overall view? >> connell, tech was priced in a way if you hook -- look at the "fang" stocks they were priced to perfection almost overvalued. you have disappointing news, you

see why you have to have the diversified portfolio. if you look at underlining earnings and economic growth, you have accelerated the potential gdp is accelerated. we expected economy to grow three to 3 1/2% this year, again, three to 3 1/2% next year. you know a lot of people look at second quarter gdp 4.1%, go that will be the peak. connell: right. >> one of the things that held it back was inventoriries. we had a huge drawdown in inventories, which makes us more positive for the third quarter. right now our preliminary forecast for gdp in the third quarter is 4 1/2%. this economy has accelerated, the market will come back. connell: with all that said, katy, if you're a republican running in the midterms or a president campaigning for those in the midterms as the president did some of this on twitter over the weekend you will brag about

this economy and you have right to with 4% growth. >> right. connell: a lot of republicans don't seem to be picking up on that which is kind of interesting, but they should have a pretty good case to make, you think? >> absolutely they should. i'm not sure why there is not more of a drumbeat of economy, economy. it everything has to do with unemployment numbers. food stamp rate is down. markets will not be end all, be all in the economy going on day-to-day. there are so many other numbers indicating american people an american families are better off happier with more money in their wallets. absolutely republicans need to talk about this every single day. it will help them in the midterms. although i am a little cautious and worried about president trump and his tariffs. i don't think in the long run that will help him. connell: that is the big question, or one of the big questions i should say, boyd, last week we seemed to have some sort of a truce between the president and europeans when it comes to tariffs. i'm sure there will be more talk with the italian prime minister

about that today when he meets at the white house but is that an issue? i was in the midwest the last week, i thought it would be a bigger issue than it was anecdotally. i thought farmers and people we spoke to were giving the president leeway on the tariff situation. i know this might hurt individually but i'm willing to give him a chance so do you think it is net negative or net positive for the midterms, boyd? >> you have to watch like cash flow in the business cover as multitude of problems, it does not solve them. connell: right. >> when it comes to the economy that republicans have to be careful, a great economy covers a multitude of props, it doesn't solve them. i think bailout for farmers or where we end up with trade and tariff deals that could impact going into the fall. republicans need to pick up on the message in terms of positives. connell: right. >> i do love the fact that the president is pushing back on republican leadership to say,

hey, you better deliver me a real budget, and real spending bill, not just more continuing resolutions. most presidents would never do that leading into election year. connell: a shutdown could be risky politically. what argument would you make if you're the republicans knowing what you know, and what you articulated about the economy heading into the fall? how would you make your argument? >> hey, i'll admit tariffs are a potential issue but remember we had massive corporate tax cut. connell: yeah. >> that offsets, that offsets some of the pain of these tariffs. connell: or the other way around which can be problem, right? in other words the tariffs offset the positive impact of the tax cut? >> well, but what i'm saying is, is that the tariffs, by themselves are nowhere near as big as the tax cut. connell: numbers. >> that's you when you traveled in the mid which is didn't find a bunch of people freaking out about this we all know that the u.s. is one of the freest

trading countries in the world. singapore beats us but everybody else has higher tariffs. fighting them isn't a mistake. and so these tax cuts and this deregulation, that's, that's what's winning. it is not cash know. it's tax cuts and deregulation. it is allowing entrepreneurship and innovation and creativity to take off. that is why people are coming why gdp is accelerating at 4%. connell: quickly on boyd and katie, from a republican perspectiving looking at that view, confident or not so confident heading into the midterms in on this date, when we come to late july? go ahead, katie. we'll come back to boyd. >> absolutely confident. will they be able to beat out historical results of midterms we'll have to wait and see. connell: they can hang on. boyd, real quick? >> best thing going for the republicans the left has not learned real key, that you can

win on socialism in the spring but you have to have a positive message what you're for in the fall. that leans to the republicans right now. they have a message. democrats haven't quite found theirs yet. connell: socialism in the spring. guys, good to see all of you. brian, boyd, katie, all three of you. as we said a moment ago the president will meet with the italian prime minister real soon. maybe that is where neil is invited. giuseppe conte at the white house. we're all over that. he is not talking about that but breaking other news. charlie gasparino has been reporting on this les moonves situation they talked about in the last hour for quite some time. maybe he can tell us what is really happening today. a lot of rumors and false reporting, rest of it. charlie is all every it and has more after a quick break. ♪ my father passed this truck down to me,

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cheesecake plain or with toppings, because apparently today is national cheesecake day. >> i don't thinkless is in a mood to be eating cheesecake. connell: probably not. what is going on? >> we reported exclusively on foxbusiness.com they are grappling with to suspend him. they jumped the gun on the headline. that headline may be true by the end of the day. what our sources are saying last 24, 48 hours are this, they are weighing what to do with him. charges according to cbs insiders believed by the board they are compelling. all you have to do is read the story. people are on the record. les moonves is essentially on the record confirming i guess you could say boarish behavior, not sexual abuse, he said he came on to women that were norm nominally working for him or trying to get jobs.

connell: the way he said he it whatever took place didn't affect their careers is his argument. >> he didn't go basically take revenge out on them. connell: right. but something happened? >> you're the boss, someone wants a job from you, you do something like that, that's a problem in the work place. i think the board of cbs doesn't have a lot of options. they don't have a lot of good options. they're clearly grappling with whether he is the ceo. clearly grappling whether to suspend him pending the investigation as well. what my producer lydia moynihan was able to tease out earlier today, they will probably release a statement at the end of the day. connell: after the meeting? >> after the meeting. the meeting is going on right now. the fascinating thing people close to moonves can't say he will survive this. when that happens you know the end is probably near. we should point out no good options. not a great secession plan. joe ianello would be number two. most people think he doesn't

have the chops to run it. connell: who is that. >> more right-hand man. more like a hatchet man, enforcer. fager, i think john or bob fager, who was in cbs. connell: at "60 minutes?" >> jeff fager, i'm sorry, normally be potential successor, but there is issues with him in the article, if you read the article. the notion of merging, basically merging with viacom is something that cbs shareholders hate. connell: that is the backdrop, right. >> cbs they believe has better content, more easily, this thing will be sold. what les moonves wants to do break away from viacom and shari redstone, sell it to another player. connell: what is more likely to happen moonves is forced out or removed or suspended how does that affect that, or we don't know? >> if moonves is forced out or suspended i don't see how you stop the controlling shareholder

from exercising her duly constituted rights, you know what i'm saying? whether it is good or bad for shareholders of cbs. the fact of the matter it is two dual classes of stock where you can own a minority of stock and still control the company which is what they have there. what i think is what happened, what we have here at 21st century fox. i'm not sure it will be that after the disney deal but it is not uncommon. connell: a and b shares. >> right. you basically give her a lot more power. connell: you don't have as big or powerful voice on the other side. >> les moonves is loved by wall street. when i say loved, he basically ran a very good financially good ship. connell: yeah. >> he brought cbs back in terms of ratings. he was, so he was liked essentially as a manager. people liked him. without him there is a real problem going forward for the company. connell: you will be back throughout the day. sounds like update after the close. >> i think the upshot is this as

we reported last night, future is uncertain, end is always near. connell: fair enough. completely different story. we're going to break. do you believe cavuto is out the day the italian prime minister is out? doesn't seem right? >> i just came back from italy. the italians love trump. i guess we should not bury the lead for later on today. every average italian came up to me, when they found out i wasn't italian, american, brought up trump first thing, about a dozen of them, they say trump -- strong. connell: more on that as the president waits at the white house for the italian prime minister to arrive. back in a moment. with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost.

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connell: moments ago at the white house greeting president trump extending the hand to giuseppe conte the prime minister of italy at the door of the west wing. welcoming the prime minister for a meeting in the next couple hours that will conclude with a joint news conference at 2:00 p.m. eastern hour.

take a look at the dow, before we go to the white house. we're down triple digits, 103 points to the downside. it has been a tough day for tech. back to that in a moment. blake burman does join us for from the white house. the meeting is officially underway, right, bake? reporter: that's right, connell. giuseppe conte has only been the prime minister in italy for two months and he is getting the oval office treatment. these two have mutual admiration with each other. their immigration policies or immigration beliefs mirror each other. there is the issue with russia. remember when the president went to the g7 summit earlier this summer, president trump said, russia should be brought back into the fold, make it the g8 once again. the only member who stood by the president's side who made the comments was giuseppe conte of italy. there are still other outstanding issues when you talk about the u.s. and italy and

specifically nato for this meeting. the president has pushed for more spending from allies overseas in europe. italy has been one not living up to its commitments. we'll see if that comes up during the talks. there is own going back and forth, however you want to put it right now with the european union as it relates to trade. when you look at italy, it has some of the most exclusive brands when it comes to cars. talking about specifically ferrari, lamborghini, maserati, alfa romeo. if the president follows through with threat to increase 20% on car imports, that might have a pretty big role or pretty big hit for some of the italian car companies. giuseppe conte at the white house. you know the drill by now, connell. there wasn't oval office meeting. a pool spray. you will get the remarks on

camera. a expanded bilateral meeting. after that a news conference between the two, what might come of that. we'll see. connell: we'll take it, as neil says because you never know. all those are in cavuto's can gauge, the logos. -- garage. we'll talk about trade. blake brought it up, there is a few stories that a lot of manufacturing companies starting to raise prices coping with tariffs already in place or get ahead of some that might be in place in the future. it's a good time to have the conversation with the italian prime minister from the white house from global automaker ceo is with us right now. one of the things, john, we started to talk about earlier in the show was with brian wesbury and company that were on with us at the top of the show, a lot, you could argue has been done to the good side of the economy because of tax cuts. you get into tariffs, start reading, for example, a story in "wall street journal," consumer starting to see higher prices

for recreational vehicles, soda, beer and other goods. companies raise their prices and does that offset some of the good from tax cuts, what do whau think? >> that's a great question, connell. nice to be back with you. the president has taken positive actions for american auto insurance industry. reducing taxes reforming corporate taxes has been a winner for the u.s. auto industry. reducing red tape and reducing regulations is a winner for the auto industry. i'm concerned as many are we might be offset the wins with higher manufacturing costs and higher prices that come with tariffs. connell: blake talking about the italian carmakers, because the italian prime minister is there and throwing in german mercedes and bmw as well, there is a meeting coming up next week, what might they do to counteract what is going on here? >> no question they are getting together in geneva this week.

we had an opportunity to meet with just about every, government officials from everyone of those countries. these are major auto-producing countries, canada, mexico, japan, korea, the eu are trying to get together try to figure out how to react to the potential for auto tariffs. >> right. >> we had good progress last week. i think talks are always better than tariffs but we're nowhere near out of the woods with the potential for high taxes on autos. connell: tell us, expand on that if you can, what you think last week meant. you referred to the meeting at the white house it did look like, a temporary truce was put in place, so we could talk about what to do between europe and the united states but you say today we're not out of the woods by any means. what do you mean by that? >> again i'm encouraged we're having a conversation between the u.s. and the eu when it comes to reducing tariffs and we favor getting tariffs lower all across the board for autos but we still have the investigation

being conducted by commerce department, if you can believe it, investigating whether auto imports, whether auto parts imports are a threat to the national security of the united states. that is still going on. what we've done with auto tariffs between the eu and the u.s. we've hit the pause button depending on conversation -- connell: 20, 25% is number thrown around. what type of impact could it have? big time? >> it could be devastating. it is 10 times, auto trade with the u.s. is 10 times what steel trade is. you're already seeing impacts of steel tariffs on the automotive industry. i talked to a manufacturer that builds cars in indiana. buys all the steel in indiana. thethe price of steel has gone p 20 to 30% since the tariffs. if you apply that to autos, could you see less production in the united states to the point in the cycle we don't need that. connell: what is your reaction to the president's argument that we're getting hosed by the europeans is what he said?

we don't tax cars coming in here as much as they tax ones going over there. i heard all sides about how we tax the trucks. you don't see foreign-made trucks here. what do you think of the president's argument about cars? >> no question we need to resolve trade barriers. auto trade on both sides has barriers as you point out. the question is not that, the question is how do you do it. i was encouraged by last week. i think the way to do it is to have conversations and have talks and figure out how we get to zero on both sides of the equation. i don't think tariffs do that i think talks do that. connell: some people's takeaway last week, clearly not yours, you think there is a long way to go, some people's take, he gets this. we know it. they're making progress. they will get something done eventually. the 25% was just a threat to get us to the negotiating table. you don't think so? >> well, again this investigation, the 20, 25% that is associated with this national security investigation would apply to all our trading partners.

half of imports into the united states of cars come from mexico and canada, our nafta trading partners. connell: right. >> they're not part of that eu-u.s. discussion. so those tariffs might go into effect. connell: john, always food to talk to you with insight into the industry with foreign companies not so foreign. many make their cars here or big parts of them. thanks for coming on. we'll keep check being back with you. >> thanks, connell. connell: the president is threaten a government shutdown over the border wall showdown. this would obviously be a big deal heading into the fall. what would the impact be on the midterms on that, coming up. ♪ you'll only pay $4.95. fidelity. open an account today. you shouldn't be rushed into booking a hotel. with expedia's add-on advantage,

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we have a reporter on the scene. we'll have more on the battle the wild fighters are fighting in the next hour of "cavuto: coast to coast". gop macing a midterm threat, president trump warning of a government shutdown over the border wall. let's to to capitol hill, chad pergram covers capitol hill like no other and joins us from the hill. we may get the president and italian prime minister in a minute from the oval office just as a warning, tell us about the shutdown threat. there is debate whether the president really means it or not, if he does, how will this go forward? >> the president sent a tweet over the weekend i would be in favor of a government shut down if we don't get funding for the border wall. very rarely question over government funding and shutdown coinciding with nomination of a supreme court just -- justice. the government is funded through the september 30th. the first of october is the day the court starts the new term, the target when they want to

confirm brett kavanaugh for the high court. think about how the narrative, losing track of the narrative on the republican side, get the big win, confirm cavanagh, have a government shutdown. that is a problem for republicans. there was a big meeting on wednesday at the white house where the president met with house speaker paul ryan and senate majority leader mitch mcconnell. i was told after that meeting they basically thought they had an understanding with the president, that he wouldn't push for a government shutdown. connell: jump in here for a second. we'll get back to this subject. but now from the oval office, the president and the italian prime minister. >> we have giuseppe conte of italy, a man doing a fantastic job. i want to thank you very much for being here. we become friendly over the g7 meetings, and some phone calls. i agree very much with what your doing with respect to migration and illegal immigration and even legal immigration, taking a very firm stance on the border.

a stance that few countries have taken, frankly you're doing the right thing in my opinion. and a lot of other countries in europe should be doing it also. some should have taken the stance a long time ago and they're doing a lot better. i want to thank you, giuseppe being with us. it is an honor. we have a lot to talk about. having to do with trade and our military. you're ordering planes, lots of planes. the united states is has a very large deficit with italy as usual, about $31 billion. i'm sure we'll straighten that out pretty quickly. we find it a great honor to have you with us. >> thank you, thank you. it is a big honor for me of course and thank you, president trump, for -- [inaudible] i have always been treated warmly. >> thank you very much. everybody. [shouting questions]

connell: shouting questions. even i'm having a little trouble figuring out what the questions are being yelled are, from the press pool there. now they are being escorted out of the oval office at least. of course given especially what happened last week. we'll keep a close eye on that. that is all for now. as the two leaders meet in the oval office. they will have a cabinet meeting in the cabinet room. chad pergram from capitol hill. then a joint news conference 2:00 p.m. eastern. chad is back. we're talking about the idea, sorry to interrupt, you know the deal. >> i understand. connell: talking about this idea of a government shut down, whether it might actually happen. resume that for our viewers, especially with the calendar with the supreme court justice. as you were, chad, where were you? >> the republicans are concerned about the threat of a government

shutdown at the end of the september because they hope to confirm brett kavanaugh for the supreme court. you imagine those things coming together, end of sent, first of october and government gets shut down and they have problems confirming cavanagh. rand paul, senator from kentucky is in favor of cavanagh today, that is important vote because the turning radius is so narrow in the senate. they are moving fastest pace doing spending bills in senate within two decades. they hope they would have over 70% of the discretionary spending, what congress controls, not entitlements, approved by september. the threat after government shutdown by the president, could he talk about something later this year? paul ryan talked about funding most of the government and punt the issue with homeland security off until later in the year. if there is a government shut down there was an agreement in march, that $1.6 billion of wall

funding would be in place in this interim spending bill. if there is a government shut down, that money goes away, connell. connell: where is leadership even on the threat? just in a tweet. you never know with the president what he really means. people try to read into it but where is leadership on that, republican leadership? >> this sort of thing drives them up the wall. i had a very candid conversation with a couple of republican sources on friday morning. they said ryan and mcconnell thought they had general agreement here there wouldn't be a threat of a government shutdown. they wake up on sunday morning, and there it was. i spoke with sources, chad, you're always skeptical, i put out this scenario, and bang what happens on sunday morning. connell: imagine that, a skeptical reporter. chad pergram on capitol hill. chad mentioned spending, the president is out there, talked about trade deficits even in the meeting with the italian prime

minister. after the gdp report he talked about how the trade deficit is coming down in that report and you can argue back and to forth as to why. what about our budget deficit? kneel did a very interesting interview with kevin hassett of the council of economic advisors who is one of the president's top economic advisors, pressing him on that. take a listen. >> the president never mentions a budget deficit. we're looking trillion dollar one this year. likely a trillion dollar one next year. does he care about it, talk to you about it? >> he sure does, i disagree he never mentions it. you might recall when he saw the spending deal he was very pleased to see the military spending he wanted but was concerned perhaps there is too much other spending. but i would guess in the next budget negotiation that we'll have to draw a much harder line on spending. connell: let's bring in douglas holtz-eakin to talk more about this, american action forum president. and doug, i know kevin can push

back on this, give examples where the president mentioned you know neil's point. he talks far more about the trade deficit than he certainly does anything else, certainly more than he talks about the budget deficits. the point would be, is now, the economy doing well, 4% growth, is now the time to finally tackle these sorts of things? you really don't hear much about it? >> i would agree with that, they don't talk about the deficit very much and don't talk about the real source of the budget deficits going forward which is the large entitlement spending programs. it is not annual spending that kevin referred to the budget deal earlier this year. you can maybe shave a little off that but it is less than 1/3 of the budget. tough come to grips with the fact that we're spending a lot of money on big programs. they're growing faster than the economy can possibly pro. we're talking 8% a year in some cases, high 7s for medicare. so you're going to have to get the growth rate under control and the real kicker i think,

connell, those programs are not performing very well. everybody knows social security will have to cut benefits under two decades. that is not okay. connell: your time as budget director and what have you, when we talk about it, almost because we're being forced to. correct me if i am wrong, go back to the '90s, it was the bond market. the clinton administration got budget deficits under control and we had surplus but they were forced into it. the bond market dictated that, i'm thinking in order to happen again something similar would have to take place, don't you think? >> well, it looks that way at the moment. i really do think that the american people are by and large unaware of the scale of the problem that the federal government faces. we went eight years with president obama saying hey there, is nothing wrong here we can't fix by taxing rich people. for 18 months this administration saying nothing about it at all. i think the american people really need a wake-up call. these important programs, the ones that they, understand and

rely on, can not survive in their current form. we should want to fix them. this is the united states of america. we should have good programs. connell: because it is weird when you think about it, just from your own home or managing your own budget in your own house month to month it, would be easier to do it now, wouldn't it? when the economy is doing well, as opposed we have six months left, whatever it is we have to really scramble? we have a little leeway a little rope to work with here, right? >> yeah. the wind is at our economic backs at the moment. this is the time to really take a look at what needs to be done and get it in place so that people know what the deal is. it is also important to move early so people can make plans. acompletely agree. now is the time. later than i would like to have done it. connell: sure. >> take the opportunity. connell: it won't happen will it. no it won't. i answered my own question. good to see you as usual, doug. >> thanks. connell: douglas holtz-eakin.

technology having a tough day. one of the reasons the dow is down more than 100 points. apple is the big story as we head into the week with earnings out tomorrow. in addition apple in the middle looks like of a trade war. a surprising answer to combat that from apple coming up next. . i'm gonna regret that. with liberty mutual new car replacement we'll replace the full value of your car. ♪ liberty. liberty. liberty. liberty ♪

>> more people in the house of representatives. only four politicians in the country, elected officials being quote, unquote, they don't call it shadow banning, effectively we were getting caught up in some type of trap where people couldn't see our twitter feed that was mr. gaetz, mr. meadows, mr. jordan and myself. i don't know what twitter is up to. it sure looks to me like they're censoring people and they ought to stop it. we're looking at any legal remedies that we can go through. connell: congressman devin nunez appearing over the weekend you heard threatening legal action if possible against twitter over censorship possibly of conservative voices. well, is it legal or not? only one man to ask, the judge is here, andrew napolitano on this shadow banning controversy. before i ask you that, just i think most people know, what they're really talking about here, if you go to twitter, search for someone, we started

typing in judge andrew, your name would normally come up. >> unless you wanted to ban me. connell: right in this case you search for chair of the republican party, romney mctan el and devin nunez and they wouldn't come up and they were panning. is there any legal remedy? >> unless there is a contract which prohibits the banning the first amendment does not regulate twitter. the first amendment only regulates the government. if twitter wants to do this, theoretically the remedy, some entity, there is barrier to entry to compete with twitter that would agree as part of your relationship with them they won't ban you no matter what you say. stated differently because twitter is a private entity, they can ban whoever they want, suffer the consequences with shareholders and with consumers. connell: that is the thing. it is a publicly-traded company, right? if people had an issue way they're doing business, they could sell the stock by the way they're doing, not for that

reason, twitter share prices down another 8% today. it has other issues besides this. whether it be fake accounts, all rest of it. if you do something in your business as twitter is doing, not keeping track of how many accounts on there are not real people, you get punished, the twitter is getting punished by the free market. >> they should be punished by the free market because the concept of censorship is reprehensible and antithetical the country stands for, i will give you a example, you could censor me in your living room, dining room table, if i said something offensive to you in your household, you as a corporation could censor me as well, you're not the government. if you were the government, or the government owned the building which we were having dinner, you couldn't censor me. that is pretty clear. connell: that is the issue with twitter. they say by the way, quote, unquote corrected this, if you do search for the conservative names, now apparently they do come up that is what twitter is saying. >> by threatening a lawsuit,

congressman nunez caused us to talk about it and perhaps got some action. but a lawsuit would be frivolous. connell: you're not going to court but you could get some results. topic number two before we let the judge go, the paul manafort trial starts tomorrow. tax fraud, bank fraud, number of counts. what should we watch for this trial? >> one person, rick gates. that is paul manafort's former business partner, the number two person in the trump campaign, when paul pan for the was the chair indeed the same two or three indictments as paul manafort, pleaded guilty, became the government's start witness, less than a slap on the wrist compared to what paul manafort is exposed to. he is the government's star witness. what does he know? what will he say? will they mention the name of the president? that's what we're all listening for. connell: that is what everybody is thinking about. whatever happens to paul manafort will happen to paul manafort, whatever he did he did, i'm sure they can at least put a case together, whether

they prove it or not up to the judge and jury, what have you, but what could be the risk for the president? will the judge, for example, allow prosecutors to delve into manafort or gates's russian connections during the trial? >> i don't think this judge will. he said you're squeezing manafort because you want the president. that is probably true. as reprehensible indict him for something happened a long time ago he thought he would be exonerated, i have to get back to that in a minute, that may be their plan. guess who manafort's first witness, a young lawyer who reviewed all this for the justice department and exonerated him, rod rosenstein. you can't make this up. connell: what a world. >> lines around the block to get into that courtroom. connell: it will be something else. >> yes. connell: you would know better than me, to me the objections will be interesting to watch in this case.

objection, relevance. every time -- >> manafort has truly first-rate lawyers who are former federal prosecutors, who are friends with the people that are prosecuting him. who used to work with them in the same office. you have very, very skilled lawyers on both sides and a judge skeptical of the government's case. connell: which is a good thing, right, is a good point for the president here. >> yes. connell: he is looking at this, getting more personal on twitter with robert mueller? >> yes, he is. i think rudy giuliani is advising him against. if he is not, i think he should be. but i'm not the president's lawyer. connell: we've proven that over the last few months. certainly not. we'll see how it all plays out i guess they say. we'll talk to you next week about this. >> you're welcome. connell: or later this week. it starts tomorrow. judge. >> you're welcome. connell: go back to the markets. down about 122 thereabouts on the dow. a lot of this is tech. nasdaq down 1 1/2%. twitter down 8%. a lot of tech stocks are getting

hit hard. got the apple earnings coming out tomorrow. we'll watch that the s&p down 18 points which is half of 1%. it is a nasdaq story. now we're looking at president trump, the joint news conference about an hour away with the italian prime minister, giuseppe conte. the two met a short time ago in the oval office. they are meeting in the white house. in about an hour they come out for the joint news conference as the president said, trade, immigration, all those topics on the tape. more in a moment. ♪ jardiance asked: when it comes to managing your type 2 diabetes, ...

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connell: we made it back for our number two of cavuto "coast to coast". i'm filling in for neil who cannot handle the excitement of the tenniel time and start been in town but will cover you that with the dow down 114. even though earnings overall for companies within s&p 500 have been quite strong nearly 22% of the company that reported earnings topping expectations, five dow committee supporting this week so it's been a strong earnings season to date. the dow, as you see, the markets since the 29th of june up by four, three one and a half% respectively. again, another tough day for technology and nicole is covering it all. reporter: is coming as no surprise and there certainly a lot of warnings pertaining to

tech. we see caterpillar in a different industry coming out with numbers that are raising its guide and noting the tariffs will cost 100 or 200 million going forward, as a cautionary tone, but it's a real disconnect for what is happening in the market. our good friend dennis gartman is writing exactly that, talking about the turnaround and the trends that we been seen for the nasdaq and watching very key trendlines. this week as an indicator of what is to happen going forward. taking a look also in the dow jones industrial average you can see pfizer and doctor gamble, apple, that will be a big deal. dupont, also. as we watch what is wayne on the attack on the dow jones industrial average because for the month of july all the major averages in the dow is up third and four months in s&p and nasdaq but it is tech weighing about 50 dow points right now and were down 117-point but i

gave you what dennis gartman was saying over at raymond james and he said noting that the efforts we been seen in advising clients over the past couple of years to reduce in indexing and don't be passive. i spoke with a guy at [inaudible] and he said the same thing. you need to pick and choose an gartman said in his letter, it's been defanged and that's why he's watching the next line this week which will be king. connell: it will be interesting as people try to switch their strategies. thank you, nicole. i meant to say, the 23% earnings growth got the 4% gdp growth and a fed meeting and kicks off tomorrow let's bring jack, wealth advisors about what maybe people should be thinking about and, jack, let's start with nicole ended with the technology stocks struggling but the overall earnings growth numbers been strong and even caterpillar this morning was quite strong. what are you telling people now?

new leadership in the market or what you think is next? >> i do think there is one theme that concerns to tech investors and that the privacy issue of regulation. when you get to be the tech behemoths the only real competitive risk they run is going to be the government and regulatory. of course, facebook led us on to increase regulation, most notably in europe, is starting to infect bad business and that impacted facebook and twitter and certainly an issue for alphabet but not sure why netflix came down into busy but companies like apple and amazon, while part of the mix, do not parlay your privacy into profits so i'm not sure that the theme will throw what you get on those stocks. for the other names, certainly, that's concerned. connell: netflix had a tough time not just last few days but in general. 20% or more so, if that is the

case is there another group or another sector that picks up leadership from here because certainly the economic numbers as we saw on friday when it comes to growth are quite strong, what is next for the market in terms of if it will go higher and where the leadership comes from? >> great point. the thing is a lot of the reason why tech attracted so many assets and so much capital in recent years is because of the uncertainty in the economy and because the uncertainty and global growth. now, perhaps a company like caterpillar comes out and says we are going to raise guidance for the rest of the or maybe an all clear signal for those that have been hiding in his tech names certainly expensive to start filtering out into the cheaper value-oriented, industrial, basic material to say maybe there is an all clear signal here and we can take risks and stick our next out.

connell: a lot of that was on trade concerns and the tensions that were bubbling up and we really don't know what happened with the president and europe about whether there was a deal be worked out and we know there's talk and it's only help the market on the day it was announced but for a company like caterpillar you brought it up as a perfect example, in good economic times, and you expect caterpillar to do well and we judge the economy that way, the stock is not a baton today but maybe there's thinking that things have peaked here but you look at caterpillar's strong earnings and say make sense but at the same time to raise guidance with the trade tension we have came probably as a surprise. what did you make of that? back to me it was outstanding. i can't think of too many companies sidecut filler, maybe dear, that would sit at the epicenter of global trade and to have that raise guidance was phenomenal. keep in mind it takes courage to

own companies like caterpillar and it doesn't take a lot of courage to own companies like netflix and i think perhaps, this could be a good indicator that maybe investors are finally coming out other self and wanting to take procyclical economical risks, will have to see. connell: caterpillar is not up and maybe it's a down market and technology could be dragging everything down but capital is not up that much but would you expect it to be up much more or good news to be up in a down market type a date? >> we will have to see. a lot of it depends on how investors are reacting to the strong growth in the quarter and the strong earnings growth. certainly, year to date with earnings up 20 plus% in the first quarter, 20% plus up in the second quarter and the s&p is only up ivan at present suggests that investors believe this is not the trendline and

maybe it's toward the top of the cycle and maybe the same thing could be said for the economy. 4.1%, can we really draw a trendline from here? probably not, given that for example, 1% of that 4.1% came from trade. we know that trade will be. [inaudible conversations] connell: yeah, especially with the soybeans. you don't real quick, you don't think it sustainable, the growth? >> know. we will need to see productivity go up in order to maintain a growth rate that is more than two and half% at a sustainable basis. connell: jack, thank you. always good to see you. little politics, 99 days until the midterms not that were counting around here but you would think with that been the case republicans would be out there campaigning on the strong economy we were discussing there. here is the new york times front-page category that suggests gop candidates are quiet about tax cuts when they go on the computer but senior

policy allergist joins us to talk about this. logically you would think 4% growth for here we go, the president obviously, as you thank you what, would brag about that and should be but if you read the times article or listen to candidates who are running in primaries it's usually other issues that come up in these are public and candidates who go out for the democrats on trade or immigration or being close to nancy pelosi but they're not out bragging is much about the tax cuts. what you make of that? >> it could be strategic. there can considering their strategic see and what is moving the needle. whether those folks in their districts feel like they've reaped the benefits of the tax cuts but what is more important to them. when we consider the types of conservative voters with those were trump supporters who are all for the america first agenda and those are more traditional conservatives who may be more on the economic who are more

concerned about the tax cuts and the impact of growth were trump supporters are concerned about those wedge issues like immigration and the trade in tariffs. we will have to see but i think they're thinking about their constituents and what will resonate with those folks. connell: that's a fair point. a scene analysis breaking up the republicans into a few different back gets of republicans, the type of publicans they are dealing with, whether evangelicals who say they're happy with the judges that the president is appointing andy's economic nationals and that was steve tennyson but those boaters that that is where trade in english and play a large role what you think those are the issues i mentioned but the third group is the traditional republican and it's very popular in the party and 90% popularity in the party but that's the group that would care, right? that the group that we care about tax cuts and deregulation - you're saying it spends on which state you're in. >> absolutely break all politics

are local. when we look at the past elections and particularly in a primary what resonated depended on the types of orders. it was interesting even last year to see how in virginia the republican candidate try to do the tax agenda without using trump's name but what was interesting he was fighting president trump is more favorable or house republicans even more than president obama's name help democrats in the past two congressional races. it will see who will be willing to embrace the top agenda and trump name versus others. again it comes down to the local races and with the board to your constituents on the. connell: that will be fascinating to look at in the fall. your example is a good one and i will happen and not all the time but maybe i think about pennsylvania and they have the special election to cover that

and the candidate was running on their public inside that i was trumpet for trump and was more trump than me and it turned out the local voters identified more with the democrat, in this case, lamb, he comes from a union family and he went with him individually but the fact the president is out aggressively campaigning in the fall and he is popular in the party but not on the ballot, right? >> you know, when we talk about constituents we have to think about their educational back on. are they educated as in college graduates or high school graduates and i think there's a distinction between supports trump and who does not in those groups. when you look at race, that place very issue. even the age demographic plays a role. if you know your district and you know well you know what will resonate based on the types of people you have working. if you people who are former factory workers who are out of work, they may see the trump agenda as really strong and important were those who are college-educated, who have cushy silicon valley jobs they are

probably not going to see the republican candidate in the trump agenda is favorable in her eyes. connell: as you said, all politics is local. thank you. thank you patrice for coming on. good analysis as we get set for the midterms. ninety-nine days from now. president trump on the state is holding a meeting with the italian prime minister and we are covering that, guiseppe conte at the white house. there's a handshake from a star. next hour is a joint news conference and we will bring you that. be right back.

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want another business alert here on cbs. the board meeting because of the future of les moonves being certainly question in the stock down nec 5% today sexual harassment allegations hovering over. as in, what is the latest? >> we but yet to see the face of les moonves. the board is convening as we speak. according to reports the board is the select and bringing outside legal firm to investigate the allegations. six women have accused him of sexual misconduct in it in a public using, inappropriate touching, cases that took place back as far as 1980s to his recent as the middle 2000. in the article the new yorker article written by [inaudible]

set i reckon i sometimes decades ago i made have made some women uncomfortable by making advanc advances. those are mistakes i regret them immensely. i always understood and respected and abide by the pencil that no means no pit cbs shares are on their worst today drop 2011, down 9% for the week and investors are concerned that he will have to subside as a result of these allegations. that is what the share price action is telling us. it may be temporary as the independent committee conducts its investigation and it might be just a suspension for talking market says he might be forced to resign. he's been the highest paid tv executive over the past decade taking cbs from third to first under his tenure and responsible for opener% rise in the stock price. they're not been any decisions and is yet in usa today had to retract the headline an hour ago that said les moonves had been suspended pending an investigation but requesting a

statement once the board finishes the meeting and as soon as we get it, foxbusiness will bring that to you. connell: susan, thank you. meantime, president trump doubling down against media after a meeting he had with the publisher of the new york times at the white house. the president sent out a tweet - ag sulzberger is the publisher of the time fires back - we have the national review with us in the studio of it good to see you, john. it turned into a story as they all tended but then we had last week with a cnn reporter at the white house, as well. what you think just abroad speaking here, about this term, fake news and enemy of the people and the effect it had on

the business and discourse? >> let's look at the meeting. you got to almost irreconcilable forces here. you have a president who, let's be honest, can make stuff up sometimes. it's out of thin air. does not exist. then you have the new york times which 30 years ago when donald trump was feeding it leaks and all of that, was a newspaper before the internet that was just the facts with possibly spread the news analysis when is a separate part but the news is not a separate. today, because we get our headlines the internet is in our twitter feeds and all of that newspapers have had to morph into news analysis for this is what the news means and what you should think about it. it's a different product. even though they will say it's not a different product the new york times is obviously antagonistic towards don trumpet it's news analysis attack in a separate he remembers the old new york times and i think he's

pretty hostile now. he believes that if they print something he doesn't believe it's big news. >> hundred. connell: with every true of "the wall street journal" as much as it is in the new times? >> to a lesser extent because the journal is a financial paper in the news commentator has many vibrant so i think to some extent it's true but more so with the new york times and of course the new york times is possible to trump. connell: what the effect of all the? >> you have two scorpions and a bottle basically and they will sting you delivered there's no getting around it. the president does not believe criticism is legitimate in many cases even if it is. he's not going to budge. he says it is big news in the new york times basically thinks that everything the president says is a lie. starting with me the and ending with and. connell: what if something came out about the president that was not big news and was true and not a payroll situation for the president - robert mueller or some story, what his supporters

and people in general out there believe it today? >> many of them would depending on the source, if it's considered a legitimate investigative body, congressional community and some of them were not. we become so partisan and so polarized that people don't budge and that is the problem with our institutions. thirty, 40, 50 years ago institutions like the fbi and even congress were more respected in their conclusions were more definitive, now, by gosh, you really do if you don't believe in institutions you believe there after my guy and i don't believe it. connell: you articulate it it nicely that people blame all kinds of sites but the president has to take a lot of display, is that there could mark. >> elected to represent all of us and even though a lot of the criticism about president trump is unfair he has a responsibility to, as president,

to be the rising above the. connell: but that's not happening. >> know and because of making the news media the enemy, it's so tempting. look at the trust ratio. lots of people don't believe the president but the news media is right down in the basement with him. it's a fight to the bottom. connell: cbs or whoever is running the poll among trunk strong top reporters and the number was at about 90% but the president told them the truth forgive them news that israel and the number for the mainstream media is reasonable was around 15 or 16%. >> flip side, because it so often one-sided against trump would something like helsinki happens where it's a demonstrated a fact the president did not do well and he messed up . connell: and people who normally support him are critical. >> right, but his supporters

that he did fine and people who think his relationship with russia signed well, it's a strange relationship and i don't think it's time but . connell: but the economy can be going strong and helsinki could be a disaster. >> the president make mistakes but the results of this policy are good. his opponents will give him quarter or anything and the present response by enemy of the people which is a couple. connell: true. at least to those - >> two scorpions in a bottle you and what happened next. thank you, john. in the meantime, we're back to the martin that we see there were off the lows and techs are still dragging them are not down hundred but 87 on the dow with the nasdaq is having a rough day. apples in amazon and facebook of the world really rough. in terms of apple could be the latest to warn us about the future and that's coming up later in the week. we'll talk about it after a quick break. one of 10,000 local allstate agents knows yours.

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>> we've been talking tech stocks and they do continue to drag on the market with the

growth concerns and a follow-up to last week. apple is reporting is earnings tomorrow so there has been concern that maybe apple is vulnerable in a trade war with china. that will be one of the things to watch as the company is now exploring more sales to offset that possible slowdown in iphone sales. it brings us to the question with us forever in terms of what is next for apple. from forbes, charles joined us. what are you looking forward to, fearing the most, expecting to file from apple? >> apple is one of the best, probably the best cover company, in the whole world by endless, journalist and enthusiast. apple has very little capacity to surprise in the way that facebook surprised to the negative last week. netflix give us a negative sprite and even google give us a positive surprise. i don't expect much that will move the market it will be interesting to see what the eo

tim cook has to say about the china situation. it's not going to have an immediate impact but going forward it might so listen carefully to what he says about it. connell: obviously with phones being made and products be made in china there is something that might have an effect on the company but internal issues and apple are interesting and what is next and doing what it's doing and being okay or is there a new product, new market, a new business that has to get into in order to keep the growth at these levels? what is your view? >> i don't look as apple as a growth company anymore. the p/e ratio is 18 and that the value company. look at it that way. the average selling price for every iphone is going up significantly so that offsets the sewing numbers in the units of iphones being sold in their service revenue sales and others is going from 30 billion to

50 billion by 2020 and don't forget, in may, they announced hundred billion dollar buyback so not worried about apple in the short term. by that i mean the next couple of years. yes, they do for a breakout product that is a question about it. that goes to other tim cook can leave the company in the direction as steve jobs might have. connell: is the iphone x or even the newest watch, people generally like them but not at the same buzz in the not the same as we are used to for app apple. >> yeah, apple is a company that's driven by passion. you still find its users are loyal and you don't find that many iphone users migrating to samsung although there are some but they are due for a break their product whether it's in software that drives autonomous cars or something like that. i'm waiting and their near-term stock prices does not depend on. i still think that apple and

amazon are good bets to get to $1 trillion market cap before the end of the year. apples about 7% white and amazon is about a% way. i'll make a bet right here with you now that amazon will beat apple to that mark. connell: amazon beat apple to that. i have it on tape, i'm told but those companies are - do you think their immune to the issues facing the other big tech companies getting so much attention, twitter and facebook being the most notable and netflix and is not getting it hard - if you look at big tech the way to avoid those issues or is it all one for all, - >> i look at the company and the impact if they disappeared with it facebook and twitter disappeared the impact would not be that big. they're not that deeply entrenched into the way we do business and go about our lives. it's a be an inconvenience for some people but if amazon and apple disappeared that would be significant. they are much more deeper roots

as does - they are a company that is not to mention and should, microsoft, except maybe the most stable of all of them because of its deep, deep business ties the one good point. we all have our iphone but instead of staring at it is going to twitter we have to find something else to look at the neck we might be getting work done. [laughter] connell: executive rich, thank you. thank you for coming on. what a shutdown. we were talking about a government shutdown would cause an economic slowdown and publicans are pushing back against the president and the threat he has made and that is coming up after quick break.

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connell: back to the shutdown talk as the president threatened government shutdown of congress does not act on immigration. edward lawrence is in on the story from capitol hill. edward. >> is a lot of buzz here on the

us capital about the presidential suite with the threatening of a government should operate the senate comes into session this afternoon were expected to hear a lot about this about the possibility of a shutdown. the house is already on the august recess so started with the presidential tweet from over the weekend for the president and he be willing to shut down the government unless democrats come up with an about the fund is portable and border security. his morning, the president tweeted out again saying - this tweet this morning saying - all of this is a surprise to republican leadership. just listen to mitch mcconnell on a radio interview from frid friday. >> he's the funding of the board while going to wait on to the after the midterm elections? >> probably.

that's what we do have it discriminate. >> commencing 31 occupied before midterms can expect probably not. >> not worried about a government shutdown? >> no, not at all. connell: mitch mcconnell presented the president with a plan that would avoid government shutdown on september 30th and that plan delayed a vote on immigration and funding for the border wall that the president wants. again, the president obviously not happy with this over the weekend and wants by billion dollars for the border wall and what about now, it seems. >> mitch. connell: connell. i get it. [laughter] i was one of these guys that they have twitter alerts on their phones when he tweets. reporter: they probably do but at this point that the world. connell: and their aides are probably watching what they said. this is heaven for where they go

in and think they have a deal and a plan laid out in the president of in the plan but again, could be part of his negotiator process. edward, thank you very much. [inaudible conversations] connell: moving along. if the government shutdown does have and who pays the price politically? it would be over immigration but bill wagner is with us, washington examiner. it always seems like groundhog day and answer questions who pays the price and i wonder and that's what i was talking to edward about, you wonder, twitter or tweets are not always policy so you under the president is up to hear if you serious about this and probably leadership is wondering the same thing, is he serious about the start or getting it out there to get things moving. what do you make of it? >> on one hand it's understandable to the border

wall is his defining issue and it's what his face turned out for him because they supported it set agenda under publicans have not been able to move forward with any funding for the border wall in any significant way. on the other hand it's puzzling because if president trump does go forward with some shutdown strategy and the government does go dark then that puts in jeopardy his majorities in both house and senate and if there is a shutdown cap democrats retake either of those chambers the president trump will never have another opportunity to get the border security he wants. connell: and all kinds of issues that losing house and especially if it came to the senate that could be created for this president. do follow the political logic that is at the start of your comment that the president -based loveless and they love the immigration issue and want to see some to get on a bulimic congress, not the president, for not getting it done so if he pushes us maybe in his head he sinking, you know, it's a political [inaudible] because my

base like this and they know that i'm trying to get done what i said i'll get done and i would be delighted, right? >> that the logic here but the problem is with the president is in danger of doing is applying to the base and ignoring the very real political hurdles that are in front of senate and house of publicans when it comes to the issue, he is a danger of applying to that same base that republican majorities don't matter. with this shutdown threat he's basically saying if they have control of both chambers and cantilever by sending guys back here next year and that's a real danger for a lot of these candidates want to go home and talk about tax breaks and talk about judge cavanagh and judge for such and not deal with the drama. connell: all that the president could think for the judicial nominations and it does bring up a question about whether the president is a helper or neutral

or hurt some candidates. i would think it state-by-state because he will be aggressive, he said so himself, labor day. >> absolutely. it's a delicate balance that the president needs to track your bid in some states he's definitely a rock star. think about what he's doing for republican candidates in west virginia and they go up against joe mansion as a square off in indiana with joe donnelly. in the more modern races where you have candidates going against senator jamie baldwin and his fire and brimstone does not necessarily play as well and it does get positive track across the board are those tax cuts and the greenport justices. it would seem like as a play here would be to back off a little and focus on wins and don't throw the pot too much because two birds and hands are better than one in the brush. connell: president goes what is popular and the vice president may be filled in to see what you

might see. philip, thanks for coming on. thousands of residents had to get out of their homes in california because of the wildfires. we have report on that coming up next. into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia.

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one no end in sight with these california wildfires and now more than 10000 people are forced out of their homes and fox news jeff paul is in redding, california. what is the latest? reporter: cal fire released plans to start allowing some of those folks have evacuated to return to their homes and those people bracing for the worst preparing to come home and finding the house looking like this you can see the washer and dryer out there in the distance. when one of the hardest hit neighborhoods here in redding and you can see home after home destroyed the car fire over your piquancy file cabinet in the garage door that used to stand right here, melted to the ground. probably one the most dramatic images were seen as this truck parked in front of his house. inside everything burnt but the metal. fire is 20% contained, as it seems. it was at about 5% just a day

ago but the threat is still very real. firefighters tell us it takes a few embers to travel into the air and reignite them of those fires that they already put out. >> i've had a few friends who their spouses - >> website with embers come from across the street. reporter: firefighters tell us what makes the fire so difficult is that it's very protectable. they don't know which direction it is heading and also pretty big and grown very fast. over the weekend it was around 40000 acres and a more than doubled nearly 100,000 acres. connell: some pictures, especially that pickup to pick up the default, thank you. were moments away from the president's joint news conference with italian by minister's were back in washington to monitor the situation at the white house. when we return.

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connell: breaking news live from the white house. we are moments away from a joint news conference with the president of the united states, donald trump, and italian prime minister guiseppe conte. borders of the white house lineup for the live shots. it's a very close shot of our friend john roberts. now we get a wider look. we've assembled quite a penalty talk about this before the two gentlemen take to the stage. charlie who is italian and just back from italy joins us on the panel. ashley who speaks with an accent that is european desmet.

>> i'll give you malarkey. connell: and deidra bolton. [inaudible conversations] >> malarkey is the italian curse and i know in my mother used to say and i never really started until he understood and my family. they believe in the horns and the horns is the malarkey once a month with the horns on you it's bad luck. connell: so you think - >> i don't know if guiseppe conte is putting the horns on trump. >> they agree on emigration, o one. [inaudible conversations] >> he's obviously a soft-spoken lawyer but the other guy -

>> i spent a lot of times talking with average italians who thought i was italian - we would go shopping at the food store - in any event, they love trump. >> white? >> they would come up to me and find out i'm american and say there is a dozen of them that said . connell: what do they like? >> yes, anti- immigration sentiment is sweeping the middle and working class whether north or south. >> and it seems like italy and hungary are against accepting more refugees and then you have france and germany that are saying but you should and france and germany want to be part of the - >> but they're not on the front lines.

people are having to come through italy and they have to process them themselves. >> and pain. doesn't italy have their data like 130%? >> italy is proof positive that were going in that direction of what the maximum debt milton friedman once said you can have open borders and a welfare state. you just cannot. it's unsustainable and that is what is going on. the bargaining welfare state, lots and lots of poor people who are trying to get in and they overdid . connell: to be fair, our geography is different than theirs in terms of how where we set in north america versus where they said. >> you know, they are potentially low migrants coming from africa and middle east and yet for people from atlanta which we cannot afford either if you maintain a welfare state. i will say this, i'm the grandson of immigrants and there was never a time in this country where they let everybody in. it was always a third and based on the need for labor.

connell: let's talk trade as we wait for these two leaders to take to the lecterns and podiums at the white house. they're doing this indoors not in the rose garden but ashley, trade seems like an issue between the two of them between might be reading from the same page. >> this government in italy did not endorse the eu canada free trade agreement they came out but what is interesting is they took the bait right out of donald trump's playbook. their campaign was italians first, sound familiar? and fake news. italians first and fake news. >> what was the effect over there that because? >> italy for italians is that they keep same. how do you say tariffs are the greatest in italian? >> can you imagine trump saying

[inaudible] >> it's hurting the regional - >> and the audio industry as well. it's work obligated than farmers because we have so much exposure and it's all interconnected at this point. >> guiseppe conte who will be here is from the world of academia as deidra points out and he soft-spoken and hates being in the spotlight. he's been plucked out of obscurity and here is in washington next to donald trump as president of the united states and he'll be trying to find the right now. >> third time is the charm. [laughter] [inaudible conversations] connell: your accent is an awful imitation. [laughter]

>> my mother would be stewing in her heart. >> it's unfair that neil is not here. come on. [laughter] >> meals song is dominic the donkey. [laughter] >> conte for most of his life voted center-left. that is how obscure he is. >> that right? >> yes. >> what is the other guy's name? >> it's a coalition government. >> he is the guy captivating all this -- connell: for all of this, when we get in and out of joking around these are serious topics that will come up. i don't know of any serious questions he will receive. >> trade and immigration?

connell: questions from the reporters on that. >> i think he gets questions about giuliani. basically giuliani saying is collusion is not a crime. we should point out conspiracy to work with foreign agents you get the crime. connell: more likely to get questions on russia or mueller investigation, maybe threat to shut down the government which we talked a lot about on the show. >> immigration. connell: that's fair. >> telling you man, rudy just went nuts over the last couple hours. i hate to say it. that is the lead. italy as much as i love the place. >> the food. >> i have family there. i love them, that is not the lead today. connell: you had a good time. >> i had a great time. i love it there. >> until they asked him to leave. connell: speaking of forceful. >> people talk to me in italian. because 100% italian. connell: but you don't understand italian. >> no. my wife speaks italian.

when i grew up we were taught not to speak italian. connell: look at the time. at least 10 seconds left. we barely made it. live from the white house. joint news conference with the prime minister of italy and president of the united states. it will be covered with that and more with trish regan. [speaking italian. trish: thanks, guys, we're moments away from president trump's joint news conference with the prime minister of italy. the two leaders see eye-to-eye on several issues including trade. including immigration and this meeting coming one day after president trump threatened to shut down the government over border wall funding. he is expected to address these issues, possibly more, when he comes from the white house. well have it coming right up. i am trish regan. welcome, everyone, to "the intelligence report." the president says he is willing to shut down the government if congress d