>> both her and charlie kirk showed remarkable restraint. when you have someone with a bullhorn up to your ear, that can cause permanent damage. stuart: they were harassed big time. we've had enough of it. caps today owens on our program. connell mcshane in for neil. connell, it's yours. connell: they were trying to have breakfast, in philadelphia. welcome to "cavuto: coast to coast." back for another day this week. connell mcshane filling in for neil who is on vacation. sanctions on iran kicking in officially again as the president ordered the restrictions to be restored saying the nuclear deal negotiated by president obama was horrible and one-sided. president trump warning anyone trading with iran they will not be doing business with us, the united states. all this as the european union made some moves to try to counteract the sanctions, insisting trade with iran is crucial for a nuclear deal. so former intelligence officer

don blamer is here in studio. good to see you, don. we'll talk about oil, trade, the rest of it, do you think this is the right approach the president is taking with the new sanctions? >> absolutely it is the right approach. iran only understands one thing, strength and force. we showed them we gave a deal. we gave them the opportunity to play by the rules. sadly under the wrong rules, the 2015 deal. the president is doing the exact correct thing here. the real is basically worthless. connell: the currency. >> there is no u.s. flags burning. no effigies of the president. they're saying debt to the dictator. they're tired of being lied to. connell: you mentioned the deal as you rightly point out, wasn't necessarily, from the intelligence reports that iran was not somehow complying with the nuclear deal put in place. it was that, it wasn't the right deal according to this president. so that means we want something else in place, right? we want to force them to come

back to the table, then what? what is the goal the end game? >> the endgame, force them to not invest in terror. if you look at the situation, every since the deal was in place, they took the sanctions, killing u.s. troops and invested in yemen and putting money in the private accounts of mullahs. people got nothing out of this deal. it made a few people very rich and supported terror. connell: tell me the types of restrictioned from your experience in the intelligence business, what type of restriction was be in a new deal? >> they need us to allow us to do military inspections of their sites. connell: okay. >> they need to pull at of syria. they need to quit supporting isis and pull out of iran or iraq, excuse me, invest back in nair own people and their economy. connell: one of the things we're watching closely today, we'll see how it plays out, how does europe handle all this? they have business interests

there and talk and commentary out of the european union they will protect the companies doing business. you're already smiling as i say that. what dot europeans do? the president says you're with us or you're with iran, right? >> the eu is coming forth if you decide to support the u.s. and comply with these sanctions we'll not do business with you. that is a lot of just talk. if you look at it. they do $9.1 billion of import, export with iran. connell: the eu. >> that dwarfs what they do with the united states. one trillion dollars a year. if you look at scale, be part of the u.s. economy or part of the iranian economy? connell: that is pretty easy choice you would think for the europeans. >> i would think so. connell: some look at this, critics of the president saying you didn't really need to do this. the old deal was in place, iran was complying with that ol' deal. how do you answer that? >> i don't think they were complying. the bottom line who prospered

off the deal? iran and e.u. it was a bad deal for the u.s. if you look from the basic military standpoint. we saw military increase. connell: iran is back against the wall, especially economically, might they do something desperate, if so what? the articles about a risk of cyberattacks. do you worry about retaliation? >> i think they would try. they will do it anyway either in the teal or not in the deal. iran needs to do the right thing there. listen to the people. if you look in the streets, there are riots. there is outrage. the average person seen they're economy plummet by 150%. where these sanctions will hit the hardest, automotive. for example, a simple car part or truck part will go up 150% because of sanctions. connell: in 90 days in november hit them hard in the oil sector. >> correct. connell: do you think something happens before then.

>> two days ago the revolutionary guard said there is no way we will talk to the president. today they come forward, we might talk. only three days. six months from now we'll have a new deals, all the critics will be completely quiet because they don't want to give the president credit. connell: that is interesting point. should the president talk to iran if there is no deal in place or not willing to come back, give in bilge -- big time or should he stay away from that? >> always encourage to have a open dialogue. i think we have too many irons in the fire so to speak with north korea, russia, and china it may not be the right time going into november. if the opportunity arises certainly pick up the phone. connell: don, thank you for coming in today. >> thank you. connell: this is all about leverage, right, when you think about it? the trump administration is hoping economic pain from the sanctions will bring iran to the table. we will get some sort of a new nuclear deal in place. it comes as the president is

suggesting economic pain from trade measures could bring china to the table on that issue. the chinese state media is hitting back this week, president trump claiming to win on trade is quote wishful thinking. go to mayflower funds partner, and national taxpayers union senior fellow, mattie dufler. mattie, do you think that works, we're in a strong position to make the arguments because of how our economy is performing? >> i would argue the trump administration certainly thinks it is. look what happened recently with the eu. european commissioner juncker emerged supposedly with a deal. the united states and eu will work out way to lower tariffs and non-trade barriers to have trade flow freely between the two countries. united states is looking what the united states and eu has done, wondering whether or not they will be in similar position

soon whether they have to come to the table with president trump. certainly a question with iran as well. connell: sorry to interrupt but as many similarities that mattie points out, larry, there are number of differences between china and iran. we're looking at president trump with xi xinping. he says his good friend. iranians as don pointed out seem to have their back against the wall economically. the chinese may not be in great shape either but i would argue they probably would be able to hold out for longer, we'll see. i show you a chart of our stock markets, our markets doing great. when the tariffs on steel an aluminum, our stock market sup 5% as a broad measure. the shanghai composite index which is the chinese stock market, broad index, is down 15% since that time. the chinese are taking a hit here, larry. the question is can they

withstand it and for how long, right? >> no doubt, we're in the dog days of summer. it is hot outside but the u.s. economy continues to be hot. look at sub 4% unemployment rate, gdp coming in at 4%. 80% of companies beating fundamentals. the president is in position of leverage. the stock market chart demonstrates and supports that thesis. we don't want iran, even the chinese trade story to become a distraction from the pro-growth policies that are allowing our economy to pro. i think that is really critical here. connell: right. >> midterm elections these are important issues at a pivotal time. connell: you think the president should be more focused on tax cuts, those types of things not have the fight even if he has the leverage, is that your argument, what you're saying, larry? >> no doubt we want to stay on message with the pro-growth policies. it is important to galvanize the base ahead of midterm elections. that is what iran does, to bring

voters back into the fold. to allow more pro-growth policies, more tax cuts 2.0 and things driving the stock market. i would argue this, defensive nature we've seen in u.s. stocks, move to small-cap growth in the u.s. may reverse itself. you may see money go back into china after we make a deal between europe and mexico. people perceive it is good for u.s. companies and food for global growth. connell: we need to cut some sort of a deal, mattie? started talking about nafta, some people are showing or starting to see some signs maybe we get something together on nafta. >> right. connell: go ahead. like we get something in place. >> if you're president you have to walk and chew gum at the same time. larry is absolutely right, the fundamentals are important. hammer away at barriers in the economy kept pressure on chinese business. tax code, regulation, everything else in the economic agenda that the trump administration is doing is very important but

there is a global economy we need to be aware of. there is investment coming out of china as a result of what we've done here in the united states. foreign investments continue to rise here. we'll continue to see the strength codomestically but -- connell: the chinese are not waving the white flag, even if they were in trouble. they can with stand it or that is the conventional wisdom for a while. >> china is different animal than united states. centrally-planned economy. a nation of 1.4 billion people. china has need they know they can't satisfy. they have energy needs, ag needs. the united states supplies a lot of those needs. the question is how long -- connell: larry brought up a number of times, when they brought up our country, larry, they don't have midterm elections. they don't have the worry. >> sure. you know what is amazing here? it is incredible we're talking about iran and china in the same breath. iran from a economic perspective not even in the top 50 gdp. has implication on energy markets. it has no implication in the

u.s. in terms of trade. china is critically important. we'll solve the puzzle after we salve canada and solve mexico. europeans want to make a deal. these deals will come in. they want to open up markets for goods and services overseas. china will come to the table. that is where the growth comes from. connell: looks great again today. the thinking seems to be, along the lines what you're saying, we'll get deals in place, right or wrong, investors are writing off the worst-case scenario, full-fledged, dragged out, trade war. they don't see that happening, right? >> you know what is also interesting, if you start to see this reversal going on in the market, finally after 10 years you see some value stocks outperform, maybe energy does a little better as energy prices move up on the sanction news. maybe financials do better as yield curve steepens, demonstrating strong economic growth. that is a good sign. real healthy indication of underlying economy. that is really important. make sure policies support the

economic growth going forward as they have done the last six to 12 months. i want to make sure as we get into the global stage we don't want to detract from the domestic growth story. connell: up 167 on the dow. thanks to both of you. appreciate you coming on. we're talking about a growing economy, certainly from macro perspective things are quite strong. stock market as well as larry points out, what about the chances of a still a new h blue wave in november? are they because the economy is strong, starting to sink a little bit? a lot of numbers say maybe not. many say there could be signs of democratic momentum. today is actually a big day especially in ohio on that front. we'll talk bit right after this. my father passed this truck down to me,

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connell: so voters views on the economy are in focus today. we have a number of elections, various primaries across five states. the special election in ohio is getting a lot of attention. it is a house seat, should, should be safely republican but could turn to the democrats. look at candidates, balderson and o'connor. insiders say if gop loss, could increase odds of a blue wave in november. "daily mail" white house reporter francesca chambers, why

this race is one to watch. good to see you. we had a number of here is idea, with pennsylvania 18 comes to mind what will happen in the fall. this gives us an idea. this seems like a good district could be a bellwether covering white house. how does the white house see this as a note from their place book as well? >> absolutely. president trump is predicting a red wave in november, despite the fact historically the party that controls the oval office often loses in midterm elections. however president trump thinks his party will do very well and he campaigned over the weekend in ohio for troy balderson, the republican candidate in this election. we saw the president was tweeting today. boiling it down to this, a vote for troy balderson's opponent is vote for nancy pelosi. regardless how you feel about troy balderson, if you do not vote for him today, it will be giving a vote to the democrats. that is just one more vote they will have in order to be able to take the house in november.

connell: this is district the president won by 11 points. not as much as pennsylvania 18, he won by 11 points. it has been republicans i believe as congressional district going back to 1980 there is the results, 53-42 for president trump in 2016 in ohio 12. the interesting to watch the republican party handling this. reminds me of pennsylvania when rick saccone was thrown under the boss. the guy working for saccone, no support those last few days, they wanted to, quite frankly have an excuse, this guy wasn't a good candidate, that is why he lost. some say the same thing happening with balderson. some. party people behind the scenes, well this guy is not the best candidate, almost setting themselves up in case he is loses, seems like? >> that is absolutely right. as you said the president is all-in, not only campaigning there, but giving his support to troy balderson on twitter but party insiders are bracing

themselves for the potential they could go down in defeat today in ohio because as you noted, this is district that president trump won by 11 points but yet he is neck-and-neck with the democratic opponent, danny o'connor. this is absolutely something they're concerned about. putting themselves in the position to say if they lose, this is not what will happen in november necessarily. democrats will not necessarily take back the house because of one race. connell: what they said about conor lamb in pennsylvania. danny o'connor here. this is the no like the democrat socialist thing in other states. we'll talk about that whether that is gaining momentum. the centrist democrat, whether that type of candidate can win. if the democrats run the right candidates they might run the idea, where some say they moved too far to the left in other places, right? >> right. that's correct. but also the democratic

candidate in this race distanced himself originally from nancy pelosi saying he might not vote for her for speaker of the house if democrats were to take the majority and backed off from that, well if that is what it would take in order for democrats to be in power, nancy pelosi he would vote for her. president is now saying a vote for him is a vote for nancy pelosi in this race as they look towards november. connell: final point, francesca, talking to people in the white house, president is out there, ohio place he had a rally, number of these rallies, red wave, analysis shows that everybody knows the party in power normally loses seats in the midterm election. question of how many seats in the house. is the white house, or at least the advisors to the president kind of wary of that, wish he would kind of tone it down a little bit, bring the expectations down? what is the strategy seem to be? >> but the president, and white house, to that extent they

believe that if you look back at 2016, the polling was on its face against donald trump. he can't beat hillary clinton. he went on to do that. don't necessarily look to polls to give you an example what necessarily the white house thinks in this race or even the president. he really does believe that if he can get out on the campaign trail, as he has been several times a week, he can make the case for his agenda, make the case for republicans they can control the house, eventually expand majority in the house and there is senate as well. republicans have a razor-thin majority. he is asking voters to put more republicans in charge so he can pass more of his agenda. connell: don't know they get to 60 certainly, there is expectation, if republicans add seats anywhere, it would be in the senate. francesca, we appreciate it. >> thanks. connell: francesca chambers with the "daily mail." talk about facebook for a few minutes. we had yesterday the deal they were supposedly working on with the banks, they might look at

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>> welcome back to "cavuto: coast to coast." i'm nicole petallides live on the floor of the new york stock exchange as the dow jones industrial average up 171 points right now. after five weeks of gains momentum continues. the earnings optimism brought investor confidence and we're seeing stocks higher across the board. energy, industrials, financials, technology, leading the way. in fact apple hit a new all-time high. also on the dow, caterpillar, exxon have been among the winners. as i mentioned those earnings that have done so well, more than 80% of the companies reported thus far. in fact we're seeing 24%

year-over-year growth for earnings per share. also disney will be highlighted today and that will be right after the bell and some of the things investors are looking for, first of all, they're expecting mixed results, two of the films, avengers and incredibles did well but disappointing returns for "solo." how media integrate assets from twentieth century fox near completion. keep it here on fox business after the bell. we'll have david and melissa after the bell. conference call, connell will be at 4:30 p.m. as the companies is at roughly three-year highs. connell. connell: look forward to that thank you, connell. talking about facebook which has been under fire for some time you might say. the latest from facebook is the denial of some claims that it had ever asked probation for people's financial information. a story we talked about a lot yesterday. today we have fox business network es deirdre bolton and adam shapiro.

both adam and deirdre is here. can facebook be trusted to team up with the banks? adam was in the newsroom on the show, his phone rang, i said maybe that is facebook. turns out it was facebook. give us background. "wall street journal" came out with a story and facebook called you and issued a denial. >> remember the headline that facebook wants banks to share your private financial data with them. what facebook is saying, i will give you the facebook party line, is that on their messenger service, 1.3 monthly active users they want the users on messenger interact with the bank in real time to know what your checking account or savings account balance is, and if there is a problem message the financial institution. they already do this with american express. connell: but they wouldn't have our info? >> i asked a spokesperson, would you be aggregating and saving

the data? they said no. this, you see it in real time. if there is a problem, you then contact the bank. that is how facebook is saying it. connell: deirdre, people have doubts or there is some level of skepticism surrounding facebook, right? >> i think so. to your point amazing reporting, no, this is easier than staying on hold on the phone. you could just message. yes, people have doubts. cambridge analytica, the most recent transgression, 87 million users had their data taken from the facebook platform without consent. prior to that, in the run-up to our presidential election, 125 million americans saw an ad created or manipulated by russian bots. connell: on facebook? >> on facebook. this is half of the voting population. we've seen mark zuckerberg go down before congress, take questions from a senate panel committee. they don't have a great pr, trust us kind of vibe. connell: one of the things i asked to clarify with deirdre on

facebook, i wonder if this is facebook specific or issue with technology companies and our information in general? >> we wrote back in may, we thought it was a broader social media industry issue. facebook was the bellwether and one everyone is you have withing closely. connell: you still think that? >> we talked about google. google is embedded in a lot of people's lives. you have a gmail account a lot of people do. social media consist have potential to see increased data regulations. there is three bills proposed since mark was in front of congress. connell: how does that look for invests? blanket social media companies or versus case-by-case? >> it is case-by-case. facebook is one we're looking at. people lost trust in facebook. that will affect users and revenue growth. of the on cost side, spend more on regulation and compliance costs and invests there. it is compressing margins. >> i understand the cause celebre is the fear of social media controlling our

data, don't forget the credit bureaus last year got hacked and 140 million of us lost our data. everything facebook, potentially, assume the worse would have access to if banks partnered with them. messenger is already accessible with your credit bureaus. they know what is in your savings account. >> the credit bureau was scarier. social security, some cases driver's licenses with your name and home address. >> spending histories this is readily available right now. it is being sold and traded through the credit bureaus. connell: i think you're probably 100% right on that. i wonder if there is different perception with social media companies. >> it feels more personal. connell: we trust them with our information, we're putting our personal life out there. we don't know it happened until it happens with some of these other institution. >> i think too, it comes down to their normal function in our lives. which we see photos of our family and friends the t feels

more personal than a credit agency, hey, i didn't know they had my data. which is bigger part of the problem. google has been asking banks as well for information. to your point, facebook is certainly not alone. google has 10 times the amount of data on us than facebook has. connell: 10 times. >> 10 times. connell: they're pretty quiet about that. >> do no evil. connell: that's facebook. >> if you convert it into song units, say google has 600, or facebook has 600 hours of your favorite tunes f you put that in google, about 10,000 hours of listening. connell: you've been singing this. >> a little hoarse now. connell: facebook, going through a number of technology stocks as deirdre was speaking there, technology continues to be a good story across the board as a general group. but apple hits a new all-time high almost every day of the week it seems like.

>> yeah. connell: how much in the last few months has kind of the environment changed for these guys, the way people and perception of them, the way people look at them? >> i think after the cambridge ordeal that caused people to refocus on it, caused investors to rethink the stocks too. they kept buying them. we weren't buying them. we came out in may, telling clients that facebook was the best short out there in the tech space. people seem to forget tech is cyclical. people think in the new paradigm that tech will not be cyclical. that is just wrong. connell: like twitter after the earnings is that buying opportunities or is it different? >> i don't think so. i don't think our fundamental view has changed much. it made it more attractive price for people looking to get in. we're thinking if it gets back up to 190, 200, it's a short. connell: what is the key? a lot of pr making people think differently? >> revenues are down. people are engaging less, spending less time. expenses go up. we know what happens, margins

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♪ connell: okay, we're back and these unions have been facing setbacks over right to work laws for some time now. there is fighting back going on in the state of missouri. union-related story, something jeff flock is following closely for a while. join us from the bureau in chicago. what is the deal on this one, jeff? reporter: missouri passed a right to work law in chicago. the union was successful getting ballot question. they're going to the polls to

decide what to do. 2 7 states, missouri would call free rider states. missouri would be the 28. any benefits in collective bargaining they have to extend in non-union members. they ought to extract a fee from them. right to work means you can't do that. both sides cite statistics what makes most sense. manufacturing jobs, if you look over past five years, in right to work states they have gone up more than they have in right to work states. wages, tend to be less in right to work states than ones that have unions. if you look, there is no disputing the number of union members has been declining nationwide as well as missouri. used to be about 11% of the workforce. it is now less than 10%, but despite that labor has come in big with dollars. look at spending on this, with a lot of out-of-state money, spent

$15 million to oppose the right to work proposition. three million spent on those that sport right to work. the -- support right to work. union says it is not yard signs, we're winning yard sign battle. yard signs don't vote. electorate will depend on turnout and enthusiasm. the president is very good turning out his base, making somewhat inflammatory or strong statements to do that. he is also very good at turning out the opposition. he gets them fired up too. maybe just take a little slowdown, what do you think? connell: good line, though, yard signs don't vote. yard signs don't vote. there may be a joke there. some pre-sent in chicago. >> dead people vote in chicago but not the yard signs. connell: thank you, jeff. along with all the other elections we mentioned. wildfires, northern california,

look at this. they are the worst-ever in that state. the largest wildfires in the state of california they have ever had. that is saying something, considering what happened out in california over the years. president trump and jerry brown are disputing the cause of all that. we'll talk about this first with california republican congressman duncan hunter. let's talk about what is actually happening in his state. what update, congressman, have you been given in terms of progress being made, how bad things are, what can you tell us? >> sure, things are really bad. you have 200 troops from lewis-mcchord. it is an airbase. they will come in california. australians coming into california. mex firefighters coming into california. canadian firefighters coming in. i was in the marine corps in 2003. i would come back from iraq my first tour, my house burned down while i was on the rifle ink a. that was 2003 fires. we had massive fires in '07. we had houses burn down two

weeks ago by my house. it is hot and dry. not humid like the east coast. the state doesn't help this, put it this way, california you can not clear land. you have so many endangered species, kangaroo rat, the shrimp. you are not allowed to clear underbrush. even if we get big rains, lots of nourishment, the plant life rises, grows, gets very dry and becomes kindling. we have too much land, not enough allowance for people to clear the land. one of the contributing factors, but this is an acted god. connell: boy, what an act. you mentioned some of the state laws. that is what the president has brought up, this is happened because as he brought up the bad environmental laws in the state of california. i don't know as much about it as you would. people are saying, what is he talking about there, what does he me? do you? what is the issue with water being used?

did he get it wrong? >> water issue i think he got them mixed up. we used to have the bread bowl in california. because of the san francisco delta and salmon, all of that water is not being released. this has been a decade old. the bread bowl in california, they call it the dust bowl of california because the liberal policies in the state have basically put salmon and smelt over the people, and the agriculture economy here in the state. so that might have been what he is referring to. we also have to, what they do in california they use millions of gallons to desalinate the irrigation canals. the irrigation canals take water to the farmland, they get assault in them. they get the salt out before water is put in. that is might be what he is talking about. they don't allow us to clear brush because of the stupid

endangered species act. that is hurt the most. no way you can stop things like this. thank god for all the firefighters and first-responders this is basically a military operation with these guys putting their lives on the line every day. thanks to them. connell: you mentioned your own personal experience at your own house. sizewise, this is the largest you guys have ever had out there. >> that is massive. connell: considering what california has been through over the years is really remarkable. what about a timetable at this point? any idea from people you talk to in terms of getting things under control? >> no idea. if the weather changes it could be good. if the weather goes bad, it could get worse. this fire was so large, creating its own weather and own windstorm. what the fire does make the wind kick up 10, 20 miles an hour more than it normally would. it depends on weather f we get humidity and wind dries down it will be great. if it gets dry it could be worse. connell: congressman. best to all you guys.

we appreciate you coming on. congressman duncan hunter. if investors are worried about issues we already talked about on the show, via iran and trade, via the mueller investigation, funny way of showing it. the dow is up 164 as we speak in the middle of the day. the idea is wall street ignoring some of these headwinds and is that the right thing to do? we'll break some of that down when we come back. ♪

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♪ connell: all right. we'll get to the markets here. another up day on wall street. the s&p is actually closing in on a new record. s&p 500 up almost half of 1%. you look at it investors brush off everything we're talking about here, whether the escalating trade fears with the chinese. if there is any blowback from the iran sanctions you won't know it although oil has been up. rising deficit and debts, something neil talks about a lot on the show. doesn't seem to bother the stock market. if there is any questions being raised, we talked about it, see it on other networks the mueller investigation is that an issue for the stock market? funny what i to show it. is wall street whistling by the graveyard here? james freeman from "the wall street journal." is author of a new book, called,

"borrowed time" talks about the history of bailouts at city group. i started reading it last night this is interesting way talking about history. this goes way back with citi group. >> thank you. connell: we had you on a number of times, nothing seems to bother the market. what do we make of it? strong economy and everything else? >> the news washes over investors. since the beginning of the trump presidency had distinction what investors believe is important and relevant, what people in our media industry believe is important. connell: right. like russia and the mueller investigation. >> i think more than two years after the government started investigating this there's a certain just wariness to jumping on each headline. connell: right. >> if you're an investor, the big issue this week, my goodness, donald trump acknowledges they wanted opposition research. byron york point the out this

was something he said a year ago. a lot of this noise out of washington doesn't affect how people look at the market when they see an economy really humming. connell: i would agree with you certainly on the mueller investigation, unless something huge comes out of it. even then, we have been through issues with presidents and impeachment proceedings with presidents, somehow stock markets and economies got through that in all not-too-distant future. market hangs in there. looks like this trade thing will hang on for a long time with the chinese but stock market doesn't seem to care so much. what do you make of that? >> that is weird because it is all costs. until there is the "art of the deal" we hope at some point -- connell: some of that has gotten passed along to people. >> right. we have written about people who make steel lockers getting hit. people that make nails. factories closing down. harley-davidson paying more for supplies and get hit with

tariffs overseas. i think that is huge concern. you mentioned debt and deficits, that problem has not gone away. connell: it never goes away but never seems to be an issue with the markets until it is. usually the bond market makes it one. >> these last issues we're talking about, debt and deficits, potential threats to trade, these are real threats to economic growth. there is no question about it, and the federal fisk, in the case of debt. i think there, on trade issue there is a confidence based on president trump's success with tax and regulatory cuts that he is going to make a deal and bring these things down. i think on the debt side, people feel like a growing economy will solve a lot of problems. you look at the corporate, just the corporate rate cut part of the tax bill enacted in december. even the congressional budget office acknowledges that will pay for itself in increased revenue from a faster growing economy. connell: talk about the book for

few minutes we have. it is called, "borrowed time" on set here with us. it is about citigroup. we know all the big banks, citigroup included were bailed out in '08. one of the things i wished i read it before of covering 08, which would be impossible it would be a shorter book but it goes back to the history of the bank, kind of instructive telling us how much connection between these big institutions especially citibank and city group and the government going back to the beginning of our first central bank and getting rid of the second bank of the united states under andrew jackson's presidency. explain that to us. there has always been a connection between the government and citibank, right? >> thanks. a lot of us were playing catch-up during the crisis. part of the problem it was difficult to understand in that moment how did we get here? and i think for a lot of americans it was very frustrating watching the bailouts, thinking is this how it has to be? we all back these stumbling

giants in the financial industry when they fall? connell: yeah. >> it doesn't seem like america, like a free market. connell: then we thought we have to or else. that was prevailing conventional wisdom at the time which you disagree with, right? >> this idea certain firms are systemic, that we can't live without them, hasn't been proven. it's a theory, a fear regulators v you you mentioned first bank. united states, it was largest institution and it closed. our economy moved along. working with my coauthor on the research, for that roughly a century before citi was backed by the government it was really healthier and more stable than it has been since then. connell: people see breaking news. we'll get to this on the bottom of the screen, elon musk and tesla. final point on "borrowed time." tesla's stock at 17 bucks.

i read it as biography. a lot of us read presidential biographies. it talks about time periods. that is something for people to pick up. >> great, thanks. connell: a tweet from mr. tusk. he is considering taking tesla private. how about that? considering taking tesla private at $420 a share. he says the funding is secure. this is tweet on the screen. do you have a quick reaction to that one? that is something else, huh? >> we have seen in recent history the stock tends to rally when he tweets attacking short sellers. i suppose you could say, another variety of that. this is kind of that, that move on steroid saying he will take it private. connell: yeah. i guess. he is a guy open to saying controversial things. maybe the, kind of environment around a publicly-traded company is not conducive to having a leader like elon musk. or maybe that is reading into it

too much. or would he be more comfortable with a private company, i wonder? >> the public markets where you want to be to fund optimistic but not highly profitable growing enterprise that's been consuming a lot of capital but we'll see. connell: gave the stock a boost, 360. he threw a number out. over 400 bucks. deaf worth picking up. people reading about history. james freeman. elon musk news, such that is, maybe taking tesla private? more on that coming up after this. .

. connell: so the breaking news we've been following here on "cavuto: coast-to-coast" involves that man, elon musk and tesla. the stock as you see on the fox business screen is popping here in the last few minutes thanks to a tweet from mr. musk saying he is considering taking tesla private at $420. funding and security. just for a second, we know it is up on this news and the stock price gain is about almost 6%. so just this month, counting the gain you're seeing there, it is a 20+% gain, 21% so far

this month, at the back end of that chart. $362 a share. musk mentioned $420. interesting story. we're going to talk more about that. the stocks continue their climb, the s&p 500 edging in on record high. keep talking about that. as u.s. sanctions on iran have officially been restored, put back in place by president trump who warns anyone about doing business with iran. to blake burman now with the president in new jersey. blake set up in berkeley heights. what's the latest, blake. reporter: hi, there connell, and the administration laying out this either or proposition saying you could either do business with the united states or business with iran. not both. pick and choose. we've seen one example already as daimler announced it is going to freeze operations inside of iran and the trump administration wants to see more of that as it relates to other companies who have operations inside iran as well. as far as the sanctions that

have gone into place, just to give you a handful of items here, the trump administration is saying that this is geared at putting economic pressure on iran. sanctions target buying and selling iranian currency along with buying iranian sovereign debt. buying steel, aluminum and coal. iran's automotive sector is a focus as well and certain items, iranian carpets and past ashios. this is phase one of the sanctions. another batch in place november 4th, the second batch and the national security adviser john bolton saying today that the administration is looking for additional sanctions as well. connell, you mentioned we are in berkeley heights. the president down the road in bedminster, where we're standing is called connell park. connell: steled c-o-n-n-e-l-l, connell park? >> c-o-n-n-e-l-l, the complex

with the hotel, starbucks, et cetera. come on over. connell: neil says it doesn't look like a park, doesn't it look like a green stream where blake is, not even sweating, it's like 400 degrees. reporter: we've got a bush behind us. that's cool. connell: connell park. i didn't know such a thing existed. they'll probably change the name today. these sanctions blake was talking about if the sanction cripple iran's economy, will it bring them to the table? that seems to be the idea. former national security adviser to the vice president, then vice president dick cheney, john hannah joins us to talk about that. all right, and john, safely inside our washington studios where things are temperature controlled. it's good to see you. the idea here seems to be just that, to bring iran back and get what the president would see as a better deal. he thinks the first iran nuclear deal was a disaster, whatever you think of it, that's what he thinks.

will this strategy work? >> i think you're right, connell, that the president really is sincere, that he's looking to do a better deal than the obama administration did. he wants a deal that not only addresses and really solves the iranian nuclear program but gets after all of their maligned activities, whether it's terrorism, regional aggression, ballistic missile program, human rights, he wants to get a mega deal that encompasses it all. i think it's a stretch but i think the iranians now are going to be under a world of hurt with these new sanctions. they're already deep in political and economic crisis, and when the oil and central bank sanctions hit in november, they're going to be suffering real pain. they have incentive to come to the table and divert this thing. i don't know if they'll do it or not. connell: you call the president's strategy a stretch. why is that, number one?

and number two, how do you see it playing out over the next certainly few months. the president says there will be new sanction or additional ones by november. why is this a stretch, first of all? >> i just think it's hard for the iranians to come to the table at this point. there's a huge ideological barrier particularly given the fact that the united states has withdrawn from the iranian nuclear deal. i think the iranians are interested in trying to isolate the united states rather than negotiate it. but then i think the basic demand, if you try and address all iran's maligned activities, you are asking iran no longer to be a revolutionary cause but to act like a normal country. i think it's a bridge too far. connell: what would you do? stay with the old deal as flawed as it may have been? >> well, i wouldn't have done it unless we were going to be able to actually deploy these kinds of sanctions again. to the extent that the nuclear deal bought iran immunity from

the toughest u.s. economic sanctions for all of their malign activities across the region, that really was a bad deal for the united states. so i think we had to be able to draw again once again out of our arsenal on these very tough nuclear economic sanctions to get the iranians to fly right or at a minimum simply to starve the iranian revolutionary guards of the resources they need to actually pursue and implement these policies. connell: see what they do, and they have a few months or other sanctions could hit harder, the oil sector and other places would go into effect. john, good to see you, thanks for coming on. we expect european leaders deeply regret the sanctions. it's happening as president trump facing widespread anger over his trade moves as well. so what to make of all this global pushback to the center for freedom and prosperity chairman dan mitchell joins us

and independent women's forum director of policy hadley heath manning. good to see both of you as well. hadley, the president is trying to create leverage. one of the things we mentioned last hour is using the strong economy or trying to use it to create leverage with the other countries, be it iran, it be china, but getting pushback from europe on all of this. europe's next move will be interesting because the president is kind of laying down the gauntlet, you are either with us or against us when it comes to iran, right? >> the domestic economic picture looks good. seeing good profits. good unemployment numbers. wage growth. a lot to be happy about here at home, the entire world benefits when america is strong, when our economy is strong. on the other hand, we're talking about two different things, diplomacy and the cold, hard economics when it comes to tariffs. we know that tariffs come with certain risks and down sides. they can increase costs for producers and consumers,

they're really not a perfect tool to use when it comes to diplomacy, but, of course, we may be looking at a set of imperfect tools here. connell: you're right, that's a fair point, dan, that hadley is making function the in a diplomatic way to put pressure on iran to negotiate a nuclear deal, that's different than try and by the way more effective because of how bad a position they're in economically than dealing with the chinese, right, who can wait us out, or if the economy is take a hit, choose to wait us out over the long term on trade. how do you look at the two issues, dan? >> the first thing to understand is the u.s. is the 800-pound gorilla in the u.n. economy. if the u.s. tells europe everyone and else, you have to choose, do you trade with the u.s. or iran? yes, he can isolate iran. now, i'm not one who thinks the evidence shows that sanctions are effective. certainly didn't stop cuba from being under castro's rule,

whether sanctions are a good idea, set that aside, but then look at whether or not the u.s. is sort of building not goodwill but bad will. when we do these things, throwing our weight around and telling countries you can't use the dollar, you can't clear dollars in the u.s., you can't trade with the u.s. unless you agree to different things. we need to be very, very careful. we're using that power judiciously. connell: you don't think we are? >> we didn't use it judiciously when we imposed tax laws on the entire world. we know that sanctions historically aren't very effective so we're probably not going to get good results in terms of destabilizing iran. iran is a bad country. i don't want them to have nuclear weapons. they oppress women, execute gay people. all sorts of bad things about them. connell: but quick and final point on that hadley in terms of whether you agree or not? >> i almost always agree with

dan mitchell when it comes to economic issues and right about iran being a bad actor. a lot of bad actors in the world. we have a set of imperfect tools when we are dealing with the bad actors and at the end of the day, whether or not they agree to play by the rules is something we want to use maximum pressure to be able to do that with the least amount of harm. connell: i want to get to tesla, hadley and dan, thank you very much, we appreciate it. >> thank you. connell: breaking news on tesla from elon musk tweet we told you about. the stock up more than 6% with musk talking about maybe taking tesla private. we'll get into it right after this. ♪

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the stock is trading at $365. clearly outperforming the nasdaq which month to date is up 3% on the generous side. it's 2.8 technically. in one way, this kind of explains some of elon musk's past behavior. i remember speaking about this with you when he was on a call and when these large institutional investors that own part of this company were talking to him about cash flow. about cash flow management, about production goals, he basically called them out saying they were asking dry, very boring questions, but since they are part owners along with him, i should remind everybody, elon musk owns about 23% of tesla. if you look to the big institutional shareholders where a lot of us have 401(k) or pension money, fidelity owns 27%, the ten largest institutions own 61% in total

of tesla. they have the right to ask questions and as we were talking about, he was fairly dismissive. what stuck out to one analyst that i was just e-mailing with quickly as the news was breaking is that he said, listen, this company has raised money significantly every year since it's been public. so the fact that it seems as if elon musk had become a lot more combative kind of implied he had other plans or he just was on a different path. so this may be the different path, connell. connell: by the way, keep up the reporting to find out whether or not he's serious about this. reporter: of course. connell: today is august 7th, not april first. he does have a history. reporter: he might be shaking up the joke day. connell: nyu marketing professor scott galloway is with us in the studio. good to see you. >> thanks for having me. connell: considering mr. musk is considering taking tesla

private. what do you think? >> this is unusual. two words in the tweet were very unusual, funding secured. connell: i saw that. >> about a $60 million market cap. you would need $80 billion take private price tag. it's not easy to take a company losing money private, so unless there is sovereign wealth fund. connell: to that point, the financial times has a story today or i don't know when they ran it, in the last few minutes, i believe, they have a story about saudi arabia's sovereign wealth fund and it has been building up a stake with tesla, and we don't know exactly, undisclosed. we don't know how big it is, below 5%, i don't believe they have to report it. it has been building up according to the ft. >> 5% you have to file a d or passive. if, in fact, there are people looking to take it private with them, he didn't do them any favors by saying funding

secure, he's making it more expensive and thumbing nose at analysts. the takeaway from this is he's not going to go cash flow, not going to be profitable in q3 and q4 and doesn't want to be dealing with the vagaries and the short-term of the public markets. this is definitely a story that's going to unfold here. connell: this is strange because james freeman from the journal was here at time. thinking in my head maybe elon musk doesn't want to be a publicly -- ceo of a publicly traded company anymore, like you said, but as james pointed out, if you're a company that doesn't make money, the public markets are a nice thing to have to raise money. >> the public markets are the cheapest source of capital for a visionary storyteller like elon musk. trades at seven or eight times revenues versus automotive companies that trade at 1.5

revenues. the public markets have been very, very good to elon musk. when i saw, this i thought it was a hoax. connell: you can't dismiss that. deirdre is right to point it out. april 1st, he caught a lot of people with that. silly to do to joke around about bankruptcy, but it's not like he hasn't said strange things or tweeted strange things in the past, right? >> keep in mind, the last earnings call, the expectations were analysts were saying we're hoping to not see any more errant behavior. and that apology was the most valuable apology in the history of business, apologizing and acting like a grown-up, the stock rocketed up 10 or 11%, then up another 7%. the stock is moving on the wrong stuff right now, but again, it's so hard to tell. this is a big story today. i get the sense tomorrow and the next day it's going to be even a bigger story. what is going on here? connell: we don't know. >> is this a hoax?

is this behaving errantly or irrationally. when you say funding secure and the stock goes up 7%, there better be a there there. connell: have you seen a public announcement like this before? >> typically when a ceo wants to take his company private, he slow balls or downplays the stock to make it cheaper, so that on the back end he gets a higher upside. i just don't get this. i don't know what's going on here. interested to see what you come up with. when i saw it, it was a head scratcher for me. connell: thanks and with your expertise playing along with the topic. appreciate it. we'll follow up on it and see what happens with tes la, as scott says. may be a lot more to it. karl rove on the show yesterday talking about the president and the press, karl's point was maybe the president should cool it with attacks on the media. some of the president's backers are saying ramp up the attacks?

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. connell: all right, back to politics now with five states heading to the polls today, democrats are hoping to make up ground they lost in the obama years, especially in the state legislatures. they lost 958 state legislative seats, 12 governorships, 62 house seats and 11 senate seats during the eight years president obama was in office. let's talk to caitlyn owens, "national review" editor john fund and former chief of staff to senator mike lee, boyd mathieson as well. caitlyn, that was a real clear politics article that i cited, normally citing an axios report, that was a real clear politics article that had the numbers. that's remarkable. but at the same time, almost to be expected, right?

that when you're out of power, now you have the chance, if you're the democrats to get the seats back. is today the start of that? is that what you're hearing from democratic sources? >> i think democrats are hoping today is the start of that. that's why the ohio special election, all eyes are on that. this is a seat that republicans have held for decades and now there's a real challenge from the democrat, and the question is whether or not this democrat can beat the republican running, and you know, even though these people will face each other in three months or another election in three months in november for the seat, but the point is this in is the measurement of energy in both sides. how excited is one side versus the other, and if democrats are excited, is that enough to flip a seat that has been in republican hands for decades. connell: let me ask boyd about that. how worried are republicans going into tonight in the special election in ohio? >> i think this is a big one for republicans. interesting, you have to

remember that ohio was supposed to be part of the blue wall that was going to save hillary clinton and give her the white house. this district, the twelfth district has been the red wall for republicans for 35 years. i think there is real concern. i think the biggest concern comes from those in the suburbs, those that are educated, little higher income, are those folks who lot of president's tax cut. they like conservative judges. they like regulatory reform but are exhausted by the rhetoric coming out of the white house. will they show up today on the week before school starts. will they be ready to engage here? that's the challenge. the other thing in terms of this is a generic ballot, neither one of the candidates are super exciting or very unique, almost a generic ballot test that could forecast a lot into the fall. connell: it actually as opposed to the other races, this could tell us something about the midterms, and john, we were showing footage of the president at a rally he held

out in ohio, and we know he can fire up the base. he's been able to do that since he started running for office. continuing to be effective in doing that. however, to boyd's point and maybe in pennsylvania 18, this is the case in the pittsburgh suburbs, in this case the suburbs in the columbus suburbs. is the president's message going to be received in the swing areas in the fall? what's your early take on that as you look at things? >> the president is very popular with the republican primary voters. he does sway primaries. special elections, not so much. he's had a very mixed record. the problem here is there's enough personal distaste about donald trump's methods, not his policies, among republicans that they may not turn out, and i would watch the turnout numbers in the special election very carefully. are they below the typical special election turnout? democratic turnout if it's up likely to stay up in november because the anger against trump is so palpable? so the key is will republicans stay home in november or

whether they will be loyal to the party and want to stop nancy pelosi from becoming speaker. if the democrats lose, by the way, probably because their candidate made the mistake saying in the end i'd vote for nancy pelosi for speaker. if the republican candidate loses, it is a referendum of donald trump. connell: if you don't live in the district, think about it 7th of august, maybe you are on vacation or just got back or a lot going on. would you go out and vote today in your own district at home, no other race on the ballots, a special congressional election. it's tough for a lot of people, so see how fired up they are. john, last time you and i spoke, we were speaking about the president and the media. every time we speak we're speaking about the president and the media. karl rove was on yesterday. it was interesting because he was suggesting that maybe the president should cool it with the attacks on the media. here's what karl said, take a listen. >> the president's got to be doing more to get at 18% of the electorate who somewhat approve

and the 10% who somewhat disapprove, and i don't think the attacks on the media do it. they didn't work for george h.w. bush in 1992 when he had a much milder version of it which was annoy the media, vote for bush, i don't think they do it when he calls the media -- president trump calls the media the enemy of the people today. connell: john, i'll start and get your thoughts first. almost what boyd was saying in terms of the same types of voters and who you're appealing to with the attacks. you agree with karl, john? >> again, if the president wants to make this a base election and turn out his voters, i can see some sense in his strategy. but ultimately in every election because this is going to be close for control of the house, there are swing voters in the middle. you can't wish them away. and by appealing to them, you basically do it best with policy and results not with name calling. and by the way, the media isn't doing itself favors by

constantly yelling liar, liar, pants on fire at the president. they, like him, diminishing both parties. connell: interesting point, caitlyn, you can pick up on that. what are we supposed to do has been asked on and off of air, in print and out of print of reporters. is the reporting or media enterprise essentially a fact checking agency where they say that's not right and you spend so much time covering that you are not covering what you are supposed to be covering. what's your take on that, caitlyn? >> i would love to speak to someone who has it figured out. reflecting on it time and again, there is so much news right now. we can all say, the president knows how to create media tension, knows how to keep us going, a 24--hour cycle of news whether it's his tweet or helsinki meeting with putin. it's difficult because we're

all covering him, then there's real issues going on too with health care and taxes and trade and the economy, and i think that sometimes this debate gets framed, do you cover one or the other. we get stuck in it. connell: i agree, neil talks about that all the time. you try to cover everything, leave time for everything. on cable because you have 24 hours, you should have time, boyd, to cover everything. but the president dominates this discussion with the media attacks. if it works, you can see him afterwards saying, they're the fake news, and this bothers or should bother anybody in journalism and the enemy of the people. you can see why it gets under skin. it's a personal opinion but i don't think it's a controversial one. that is over the top and talking about reporters in that sort of way. if it works, you can see the president after november saying told you so, right, boyd? >> yeah, you have to recognize this has been going on since the beginning of the country. john adams signed into law the

sedition act which made criticizing the government illegal, fortunately jefferson corrected that. the interesting thing to me, i think the best thing that the republicans have going right now is the fact that the democrats don't have that positive message that you described for those swing voters. we know what they're against, but what are they for? and that's the real challenge, i think we're seeing this in ohio. neither candidate is showing what they're for, this allows the president to hunker down on the negative piece and the democrats are biting on that and running a very anti-trump campaign which is to his advantage. in the end americans want to know not what you're against, but what you're for, that will drive it in the fall. ultimately when it comes to the press itself, the president calling on the enemy of the people, that is an attack on the american people, that's a problem because it really is those first freedoms that we all enjoy and again, everyone is exhausted and exasperated. we have to get to what's moving

forward. caitlyn had it right, prevents us from having the conversations we need to have as a country. might be good fb ratings, for outside groups to raise money off of but doesn't help raise a better country. connell: appreciate all three of you coming on today. speaking of taking the bait and covering things on twitter and everywhere else. tesla. the stock up a little under 6%. elon has tweeted again, just six or seven minutes ago tweets about after taking the company private, sends out another tweet. he tweets, good morning, with a smiley face. only thing we could think this do is invite charlie gasparino to come on. he's next. 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. with liberty mutual new car replacement we'll replace the full value of your car.

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. connell: breaking news here, what is elon musk up to?

tesla getting a pop from a tweet from mr. musk, considering taking the company private, that the funding is secure at 420 bucks a share. a tweet he follow up ten minutes ago with good morning, smiley face. so when we want to decipher what someone is saying on twitter we go to our twitter expert on set, charlie gasparino. >> i know nothing about finance, just twitter, right? connell: what's he doing? first off, one of the things i openly worried about whether the tweet is his, whether someone hacked his account. connell: not only hacked but he had an april fool's thing joking about the company going bankrupt. >> i don't know if he was joking around, maybe talking about the possibility. connell: whatever. >> he's been known to have an interesting sense of humor on twitter. apparently it's his, so he is somewhat thinking about. this we should point out that anybody that's in elong musk's

seat would think about going private. it's a heavily shorted stock right now. the legendary short seller thinks -- he's not calling it a fraud, but thinks it's going to fall apart, the whole tesla business model. lots of stories about brakes not working. connell: if you are not making money, don't you need the public markets. >> it depends if you get a big private equity firm to bach up or the saudis or someone to back you up, a saudi wealth fund to buy you out and take you private on the prospect that you're going to go public. it buys you and takes the company private, it works out the details, the kinks and then sells shares for public at a profit. and i think anybody going under the pressure he's under is going to think that way. who's going to finance this? obviously, elon musk can't finance this himself, he's going to need backers? who are the backers?

u.s. private equity firm? i don't know. i haven't spoken to anybody about this because it's just breaking now, but this is -- here's the problem with private equity, buying it. it's a huge roll of the dice. not like you're buying a hotel chain, fixing it up and selling it to the public markets years later. you're buying something that may or may not work which is an electric car and whether it can be sold to the masses. a good scale on it. connell: "financial times" has a story that the saudi sovereign wealth fund has been building up a stake in tesla. they've been building up that. >> they can certainly afford it. remember, the saudis were thinking about going public, right? do i have this right? saudi aramco, almost like a private equity fund thinking of going public and diversifying

holdings and obviously the saudi economy and maybe this is a play into that, i don't know. i can see that as being a play. but again, just talk dollars and cents and logic, when you buying tesla, you are buying a roll of the dice. this is heavily shorted. tesla is in somewhat of a crisis, the stock went up on better-than-expected earnings recently or didn't lose as much money. they don't have the -- connell: it's weird as scott galloway pointed out, if you are taking the company private, you made it more expensive. >> maybe they're getting in on the ground floor. connell: maybe. want to take time to get into a story for twenty-first century fox making a formal offer for sky. >> we would note this week, probably, there would be some disclosure coming out of fox about what it's going to do with sky. remember, sky is part of -- we're like -- fox news is owned

by twenty-first century fox, the parent company. >> twenty-first century fox makes formal offer for sky in bidding war with comcast. what's going on? >> they filed a notice saying they have 45 days to make the offer formal. exactly what it's going to be. remember what happened here, we bid on it, buy the whole thing to give it to disney that they're buying assets. comcast came in, upped the bid, they entered into a bidding war. the ball's in our court. do we increase the bid. i reported yesterday we'd know something about that this week. they'll be some disclosure and this notice is essentially that disclosure which says, okay, we're putting the wheels in motion to do this higher bid. we made this filing and likely to come to the comcast bid to seal the deal and give it to disney. that's part of what's going on here. connell: the process is in place. >> i have to read the stuff, i

have to read the filing. my guess is they made the filing that says it could come or it's likely to come. connell: will you be getting into twitter fights or wars with elon musk today? >> i want to you know something, i have not gotten into a twitter war in a really long time. connell: true. >> no, it is. connell: ralph, would you look into that? send a guy to get out of his parent's basement. >> no, no, i've been refraining from this because it is such a waste and you are arguing with some guy that's literally in his mom's basement. connell: yeah, or not real. >> or from russia. connell: right. with love. trying to figure it out for some time. ralph, you sent me what? another elon musk tweet, what does this say? good afternoon? the last one said good morning. >> ha-ha just kidding. connell: i don't see it because the last one i see from him is good morning. it's a reply. that's the thing with twitter,

you have to click on tweets and replies. >> what's he saying gee, elon musk says i don't have a controlling vote now, i won't be selling in any scenario. he was replying to a tweet that said can he confirm he would retain control over the company? as opposed to to an outright sale. >> even before, that you got to get people to buy it, take it private. that's billions. >> really odd to publicly speak about going private. >> this guy is odd on twitter, attacks journalists for no reason. connell: imagine that. thank you, charlie. >> he's not the only one who attacks journalists. they are now enemies of the state. connell: that was the last segment. now you are packing up before you are talking. we had to wrap this segment for quite some time. now we're going to do it. in a moment, talk about california with the wildfires that continue to hit hundreds of thousands of acres there.

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yeah, i got some financialbody guidance a while ago. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you. . connell: back out to california. mendocino complex fire now the largest wildfire in the state

history. more than 280,000 acres have been scorched by this fire. california state assembly republican leader brian daily joins us now, i believe from sacramento. boy, what can you tell us? we were talking last hour about how it does not seem like things are getting better. anything in terms of progress you can update us on? >> we've had a very wild weather here in california, obviously we've seen firestorms like we've never seen before, but first i want to -- my heart goes out to the people who have lost lives in my district and thank god for the firefighters but i want to share with you history about the policies in california. we've had fire suppression for about 80 years in california. before europeans settled in california, the lightning would strike and we had mosaic fires that burned for months which took out fuel in our forest and in our brush lands, and so we had a mosaic landscape. what's happened in california

with the fire suppression is that we have too much fuel. if you're trying to light a fire in a fireplace with no wood, it won't burn, if you have a lot of wood, it burns hot. we need to reduce the vegetation in california to get in and fight the fires. we have way too much vegetation in california, and our policies talk a lot about carbon, and we can reduce carbon by thinning our forest and putting it in a state where fire is natural. we focus on combustible engines, that's not the place we should be focusing. connell: congressman duncan hunter was on with us last hour, i started to ask about the president's comments about the bad environmental laws and that's what to blame and the president talking about water not being able to get in, and the congressman said no, no, he may have been confused or misstated what's actually happening there. that's not necessarily the issue, and as you bring up,

there are other issues with the state law in california. so is anything being done to correct some of what you're mentioning there as opposed to we have a lot of focus politically because the president made the comment. even if those were the wrong comments or not the issue, is anything done to take on what they think is the issue? >> there's been a lot of bipartisan work over the last couple of years, unfortunately we have been -- the environmental groups want to talk about the size of a tree you can harvest and we missed the mark. we talk about species and the regulatory process has been very difficult in california. i will share with you, if you go to my district in redding where we have the carr fire, the size of a tree doesn't matter. it's all black and burned, we need to be proactive in california. we are having hearings before we're in session and talking about wildfire in california, and i am confident that we will

-- bipartisan, fire has no political boundary, we can bipartisanly come up with solutions that would reduce the vegetation in california. connell: brian daily, thank you for coming on with us and our thoughts and players with the people of california. >> thank you, and god bless. connell: we'll go to california on a much different topic. the elon musk story. the stock is up 6%. we'll be back with the latest.

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connell: back with the breaking news. for a change it is not the president's twitter account we're following, it is elon musk. suggesting that he may take his company tesla, private. fox business's hillary vaughn joins us from l.a. that is interesting. takes it off from there. he has been tweeting like a crazy person since then. we wonderer wonderer what is ne. what are you hearing? reporter: if you dip into his replies and mentions you get a better idea what may be provoking this. one twitter reacted i'm considering taking tesla private, $400. funding secured. it save as lot of headaches. musk replied, yes. he may be trying to avoid some type of discomfort here. i don't have controlling vote. won't expect any shareholder to

have one going private. i won't be selling in any scenario. no word on mystery funder is. saudi arabia wealth fund built a 2 billion-dollar stake in the electric car company just below 5%. musk suggesting that the buyer values tesla 80-dollars more per share than it was listed before the tweet was sent. musk has had a tempermental relationship with wall street. days ago he apologized to two different analysts on a earnings call for his bad manners, being impolite. perhaps some headaches he is trying to avoid. after the call tesla's stock rose and appeared to restore some good faith win investors. some hope it signaled an event to unpredictability and sometimes his distracting behavior on twitter. this isn't the first time musk said something provoking or surprising on twitter and followed through wit. he dreamed up his boring company on twitter. he dreamed up the idea to sell

flame throwers on twitter and followed through on that. it is important to remember this follows in line with behavior we've seen from him, connell. connell: hillary vaughn's report on fox business. best report i've seen. dead on. he didn't tweet about you at all. i'm kidding. reporter: kind of scared me there a little bit. connell: you never know with some of these guys on the twitter. it was funny, one of our producers melinda, asking elon musk would come on the show, call n everybody in the control room, his last tweet was yes. everybody thought he was responding to that. he was responding to something completely different. the point he is responding to everybody. everybody not just reporters on twitter. scott galloway point the out earlier, there may be more to the story. hillary, keep following on the story. reporter: i will. thank you. connell: hillary vaughn. tesla stock price is up in the

neighborhood of 6%. speaking of up, the dow is up 158 points as we come up 2:00 eastern time in new york. s&p is in record territory. once again quite a day for the stock market. a lot of news, tesla, everything else here. trish regan. trish: mr. musk enjoys paying money. if he buys the company he cost himself a lot more. connell: i was saying that is so weird. trish: kind of makes you wonder if is is pulling the media chain to a certain extent. we'll talk about it. thank you so much. breaking now, president trump putting the world on notice, you know what, if you do business with iran no way you will do business with the united states. the stern warning as the president reinstates the toughest sanctions yet on iran. despite the tough talk on trade, hey, we're looking at a pretty nice rally, up 157 on