>> hdtv can renovate it good about that story. ♪ >> we are fortunately out of time. connell mcshane is in for neil today. it's yours. nconnell: any more tv songs you want to go through? you know would be a great would be ashley webster. i go to see him. >> tickets are not cheap that its birthday. turns are welcome to "cavuto: coast-to-coast." i am connell mcshane in for neil. the fallout from elon musk yesterday started during this program yesterday when he took us all by surprise that they tweaked but eventually sent the stock soaring. not soaring today. in the meantime board has comment today on all this talk about going private amid serious

legal questions as well. we'll cover all kinds of angles and plenty of other stories to get to as well. reaction from the former chairman harvey pitt minutes away. let's start with the story itself and hillary vaughn in the newsroom in l.a. what is the latest? >> so far this morning i'm elon musk has been quiet on dinner entrée twitter after announcing he was thinking about moving tesla private rocked investors and today the board of directors says they had a heads up about this move a week ago from the ceo, himself saying in a statement this included discussion as to how being private could better serve tesla's long-term interest and also address the funding for this to occur. the funding of that? for investors. no details on where musk plant to come up with the 70 billion he would need to pay our shareholders and buy up the

company. seen several times yesterday that he didn't have the funding secured for the deal already, but also he doesn't want investors to ditch him saying he hopes most often instead of selling out. the board meeting several times saying they are taking the appropriate steps to make this happen. elon musk is already had investors supported now he's waiting for a shareholder vote to make the move official. >> hillary von setting us up making the argument that wild swings in the stock price can be a distraction for tesla, we get to the question about whether going private is the right move or not. former investment banker joins us. chief technical strategist, technical strategist come into your burden as well. you think is the right mood to go private? >> you have to take a step back as a former investment banker who's run a private model. this is very, very unusual. when you have a company going

private you have a mature company that has lots of cash flow that can pay down debt financing. here you have a growth company with negative cash flow that means money in order to grow. not only would this be the largest potential transaction of this type, equity financing is probably the only way to go and they need capital to be able to continue to grow the company. whether or not they should or not is the first question can even do. nconnell: where would the money come from is one thing hillary brought up. the story right before almost simultaneous to the musk tree that the saudi sovereign wealth fund bought a stake almost 5% of tesla so it could be for his money. what do you make of the strategy here? >> well, carol brought up several key points about the strategy. it's unusual, will they keep the investors in? lots of things he talked about

this seemed to be more smoke and mirrors than reality right now. could they get some big money from saudi arabia? the investment -- the government investment firm spain were clearly not going to discuss this. we heard from softbank and we know they're not involved right now. the funding aspect of this is going to be very difficult, nearly impossible on the deck by the journalist said. how do you do that? s. got a come from the equity side and they must have deals with under the table they are not talking about just yet. connell: that's a lot of money. you talk about this being the biggest by a lot, valuing the company around 70 billion, the previous high was 30 billion, but a lot more than any other company has gone through. do you see the logic in saying this is a heavily shorted stock. they have something to say about

what happened yesterday when the stock shot up in the volatility quarter to quarter which we hear from executives all the time that they have to play to the crowd you're little bit and elon musk wants to get away from not in dealing with out every three months. >> right. that is the deal you make when you become a public company. the short distraction is an excuse and every company needs to deal a copy about the companies have been able to continue to do these growth maneuvers like amazon, even in the context of being public. i just don't think elon musk likes to be public. i don't think he likes to be challenged. he was challenged. it would serve him well if you can find a way to put this together. probably the risk profile that should be private, not public if he can find a way to put the pieces away. connell: maybe elon musk is not

the type of individual person a should be running a public company that his personality for lack of a better term followed him through the years and sometimes he'll surprise you. this is not the type of guy who should be running a public company. there's ingenious here certainly, some great ideas, risk-taking, but maybe better to not have the pressure of delivering earnings or lack thereof every three months. >> well, i think it is clear that his skin has grown thinner and thinner over time and every time somebody shoot something, which is the trade of a shortselling firm they will try to uncover every weakness that they can. while he's responding to god instead about getting the job done, it makes the company less valuable for the chief executive to be chasing around things and having to answer every one of these. i think you are right here at carol's is very well made.

if he can look at the longer term, used a genius to inspire people to do great things come and that's a lot better place for him than doing shareholder communications. connell: some other questions to answer right now that have been brought up. carol and dr, thank you. we appreciate you coming on today. other questions around the regulatory debate that come out. legal questions and a former sec chairman harvey pitt with us to talk about that. good to have you on. just as a point-blank question right away from what you know and what you saw yesterday, and elon musk break any laws or rules with the announcement on twitter? >> i don't think anyone can say he broke allowed at this point. there's too much information we don't know. what i would say if he took highly unusual and unprecedented steps to announce this transaction and it raises a host of regulatory and fraud issues

that i suspect will be look at carefully. connell: if you are the sec, what would you look at today? people are brought up the idea to use the term funding secured in his first weeks. >> well, if that tweet in the whole use of retreat to announce this kind of transaction is very unusual, but it is the message, not the medium that matters the most. or he has said that he has financing secured an enough to offer $420 a share. so does scott had better be right or else he might have been guilty of committing fraud. connell: he obviously has got into a little bit, some people who are not big fans of his and have been betting against it a

lot. i would assume they would be looking for reasons to follow lawsuits. this even has to be true, but he needs to have had their funding as of yesterday and doing interesting documentation or do we need to see documentation that he had the funding secured 420 bucks a share as of yesterday when he made the statement. >> i guess i would say the word funding secured means he had it locked up and in place and legally enforceable and that is a fact question if he has it and he didn't commit a fraud on that score. but he has to have habit when he said it. connell: impervious pâté. some of the questions that will be asked. you mentioned the medium in which he chose to make the announcement on twitter. some said that is strange. i heard a couple different than fondness. correct me if i'm wrong, but you're allowed to do that provided you tell your

shareholders and the public company that you will. tesla has done that. my question is, should the company has made a similar announcement at the same time, simultaneous to mr. musk deer they would've to put out statement for some time. in other words the tree came first. is that a problem? >> it is in the following respects. first of all, he made the announcement during the trading day. that is highly unprecedented. announcements of this kind move markets as we saw and they are made either before the opening of the market or after the close. he did not do that. second, he personally can not secure private transaction. it requires the approval of independent is on his board and shareholder approval. so for the ceo to be announcing

this and announcing his price is also very unusual. connell: unusual, but illegal or breaking some sort of a role? >> it is hard to say from this point that it's illegal. one has to have more facts, but it's highly problematic. connell: what else do you need to know? what is missing? >> one of the things is what is there a reason for doing this? he has been complaining in the past, but he hasn't done anything. but he put the announcement out and suddenly the stock bumped up 11%. was that his intent? did he make that announcement or did he make it simply to alert people that this was coming? those are very important questions. one would want to look at all of

this communications and what he had said in the weeks leading up to his tweet to make sure that what he said was actually correct. >> a lot of issues there. we will talk a little more about elon musk later in the show. i wanted to chew on this other breaking story of the day. chris collins republican from new york arrested and facing securities fraud charges today. he and his son accused of engaging in insider trading in the stock of a biotech company based in australia. he's on the yours at this company could the southern district of new york is prosecuting this case. prosecutors about to hold a news conference with more details. harvey, this brings up a number of interesting issues in terms of members of congress and their involvement to private companies. commerce and commons on the yours gets an e-mail from the ceo argues that a congressional nick at the white house of all places and is alleged to have

called his son, told him about a trial, a drug trial that is failed. the sun still the next day in tips off some other people. if all those things are true and can be proven. it brings up some issues about congressman collins and other members of congress and how involved they are with companies, conflicts of interest. >> well, there were conflicts of interest, but members can make investments, but there are special laws that prevent congressmen from using their congressional positions to enhance their trading activities this, as you said is classic insider trading problem. connell: right, that is where we are now. there have been articles written a couple years ago and questions about this company on congressman collins for a while. if he did use as an alliance

committee vice to get more drug approval after the conflict of interest laws? >> yes. congress a few years ago passed a special statute that makes it improper for congressmen to do that sort of thing. connell: just real quick on his defense so far is he didn't trade in the stock. the statement seemed to say as we both said they're still classic insider trading because it essentially kicked off his son. >> sure could the same thing as if he traded he tipped somebody else or avoided a loss and that would be a crime. connell: harvey pitt, good to see you. thank you are working through these issues. 89 days now until the midterms. voters watching this close race in ohio from last night. still the special election. there's a theory out there that this is trouble for republicans because they should've won it

easily. next up, how the economy could change things. we will be right back.

turn into a was, within those numbers come a nailbiter. holding onto a very narrow lead in the special election.

the logic going in the air was that this is one that should have been easily on the republican side. trump has 11 in the presidential election in a number of insiders saying that just because the dems are so close here, the blue wave is more likely. not the president. confident of a giant wave on twitter as long as he keeps campaigning if i find the time. new york city councilman here with us and democratic strategist moustapha also joining us to talk about this. joe, you first on an x-ray from a number of democratic sources today that they say this is as good as they win, but from their point of view of the republican should've had this one easy. democrats say we're going to win some of these feeds. >> is definitely good as a win. back to the bar that set by democrats and pundits yesterday. this is going to be the harboring of an era of bad news

for republicans that will echo now until the midterms. we saw some it's been dispelled that donald trump is the kiss of death for republicans. that is not reality. to make the republicans are in serious jeopardy and the midwestern rust belt swing states crucial in 2016 just didn't happen. this is supposed to be the canary in the coal mine. connell: your take on it from your side of the aisle is kind of a moral but very. what is the spin on this race assuming the republican barely hangs on wednesday? >> i love my friends confidence. i think you should go without confidence right into november because if republicans are struggling to win a race like this, which president carried 11-point and it's barely a win. we don't even know if it's a win. likely to be a recount here. they have to invest serious money and flying in the president of the united states to win agassi like this.

connell: i wonder -- >> imagined the bloodbath in november. connell: mustafa, kind of a win-win. are you worried about the fact that for all the momentum you may have compared to the trump 2016, many candidates are showing they are short and some of these races. >> look. almost three dozen fake reason state house races where we have flipped a republican seat and two democratic seats since the election of 2016. there have been far more wins than close calls where you can bring some type of immoral but are you and the president signed that he flew in and save the day. at the end of the day, the november election if republicans go win at this great confidence that this is going to be fine and a big red wave coming, alternative facts will not create an alternative reality for the rest of us. >> there are some numbers that

many republicans if you speak to them off camera would be worried about. for example, republican candidates are underperforming president trump's performance in 2016 by an average of 15 points. i saw some analysis and special elections. the thinking they are effective but many gop seat in jeopardy and they can only afford to lose 20. >> i think that's a stretch. there's a chance we may lose some house needs notwithstanding but you look at the underperforming big republicans have had a problem with special elections. democrats can rally labor allies and activist groups to get out there. you mentioned conor lamb. the only person to win a special election against the republican seat. the similarity between him and danny o'donnell as they are not mainstream democrats. they are people opposed to nancy pelosi, medicare for all. these are people not running under the typical democratic by

form. look at the rest of the democratic party. the ocasio-cortez party is the direction they are going to. >> now you bring it up, mustafa, that democratic socialist wing of the party did not do well last night. would you make of that are read into that in a candidate endorsed by the soon-to-be congresswoman from new york, also bernie sanders. >> there's a recession with republicans trying to -- a smart young woman who represent the bronx and what worked in the bronx not necessarily will work in different parts of the country and vice versa. the thing that republicans have to face if it's no longer the republican party. this is a donald trump republican party and that republican party and the donald trump republican party is about to face a defeat like no other. connell: i wonder how much disagreement within en masse.

betting on sundays i saw something about a 65% chance that the dems take out the house today when the plus 23 out of 75% chance that the republicans keep control because of that been favorable in the senate. does anybody want to take -- mustafa shaking his head good you don't think so because the senate still seems like a tall order. >> work, it is a tall order but the greek we are headed with the manafort trial that is happening with the president, with his outlandish tweets, with his stance against trade. republican party was a pro-trade hardy and now a creating trade wars when he thinks we are going to win the us. connell: makes it tough to campaign against him. >> when you start getting into those sideshows come you are

losing sight of the fact job numbers in wisconsin, ohio to vote against tax cuts. they have absolutely no chance. connell: thanks to both of you. we appreciate it. as we move on, small-business optimism, speaking of trade come is reaching a record high. we saw that in a new survey that without. will tear us to get in no way of some of that is small businesses are now getting hit by the terrorists. billionaire investor carl icahn's first television interview opposing the state and express. you can watch it on fox business at 2:00 p.m. eastern time with trish. we'll be right back. ♪

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that all mean for business. interesting numbers coming out. wells fargo gallup poll shows u.s. small-business owners optimism hit a 15 year record high. so those new numbers come in as a story in the journal, "wall street journal" this morning about trumps tariffs taking their toll and some of the small businesses. it seems to conflict. maybe it does come in maybe a dozen against both of those numbers on the same day. tim chapman, executive or, good to see you. things are coming in the studio. i was kind of rating both simultaneously a thing that is interesting with the optimism set an all-time high, the journal points out some of the small-business owners are starting to feel it. do you believe both? >> there's a little truth in both. the big picture is the optimism is very real. the economy doing fantastic. small businesses are hiring. the biggest problem small business owners are facing if there aren't enough people to

fill the job. that's a real development right now. we see that as a good sign. there's some anxiety about wool trade have a nonperson act on them in the long term. that's a question of how long this goes on. >> the question is has their optimism peaked? it could be true that people felt great or feel great now. it's not about to change? >> i don't think so. you got the tax cut enacted in those have been extremely helpful to people across the board. we've been doing a lot of work on not heritage impacting not just individuals but the business environment and allowing businesses to have more cash on hand to do the things they need to do. you will see more about going forward. the more the law is allowed to masquerade, you will see added growth there. it is a good thing. we just all are going to keep an eye on what's going on with the trade issue and our hope is that

it's not. connell: effective business leaders to describe it to me is in a sense. not killing the business but were making more money or profit margins would be better for the steel and aluminum tariffs. the journal piece talks about small companies. some are technology-based. one must make an electric scooter, motorcycle. if you don't have other options, those are the types of companies they can't stand for all that long. >> which heritage of always believed in free trade. there were some adverse impacts to tariffs like this. that said, the president has done a good job of identifying china as a very bad at your and he's doing something about it. i think we are in a kind of lets wait and see mode. we don't want this to go on for a long time. we want to get a resolution to this. in terms of how this has impact in common politically impacting

republicans and conservatives pretty well because the optimism is there. >> we just have to guess i'm in the previous segment and mustafa started to talk about trade and what i started to say at the end is democrat don't necessarily have an argument to be made on the other side of this. if bill clinton was running they would for someone from that joke in the democratic party. to me they largely agree with the president. there's nobody on the other side of this trade argument on trade. >> i think it's interesting. president trump's greatest accomplishment of these make free traders out of the democratic party. but you're right. their heart is in the criticism of the president. >> the elected officials come in 90% approval rating with the people of the republican party seems like elected officials even though the majority

republicans in congress do not approve of the president's trade policies or have it in their career. but they don't speak out that much. >> i think that's right, but also the issue is they recognize the president has a pulse on something here. real communities have been hurt by globalization and free trade and there's got to be away for us to address that as conservatives. we need to do a better job. connell: you don't think it's tariffs. >> what i'm telling you as conservatives have to do a better job of job training, vocational training, apprenticeships that can help people move from one sector to another. there's ways to do that at the state level, not the federal level. >> it is working even by people in that base their work in industries that might get hurt. i've talked to some of them at rallies and other places this day i still support among us

even if it hurts individually. what is the impact of trade policy in the midterm elections or is there none? >> the impact is good for republicans. because the president is taking the constituency seriously, that matters and helps them in places like ohio where we saw a significant victory last night in their ability to hold onto the district. i think that all the tailwinds were with the democrats they are and that was going to the democratic arty until trump came in and did what he did. again i thank you had there was a lot of people check out. a lot of republicans check out. he didn't even know what was happening in the district until the last couple days. it is a significant victory because they have to start putting points on the board. they won in the special election in pennsylvania but they need to put points on the board and they can't claim victories over and over again. no doubt it's a tough midterm. we have a lot of work to do to hold the seat. we are getting involved on our

end. we will support at least a dozen candidates and hold these districts. it's tough but doable. trade too good to see you. we appreciate it. disney is jumping into the streaming wars in the recent acquisition of the fox assets. bob acres plan to battle amazon and netflix for your attention. some details on that coming up next. when you rent from national... it's kind of like playing your own version of best ball. because here, you can choose any car in the aisle, even if it's a better car class than the one you reserved. so no matter what, you're guaranteed to have a perfect drive. [laughter]

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connell: shares of disney down by about 1.5%. the quarterly profit targets. among the talk about disney today as ceo bob geiger has been sharing the details on the plans to take on both netflix and amazon would certainly here in the studio along with deirdre bolton. the big unveil. connell: gives us their take

on -- start with the earnings and then we'll get into streaming. >> topline, bottom-line myth which is pretty rare for disney. greatest of them exceeding our matching expectations, but your point is really the cable business with a lot of the mess. espn, continuing to subscribers send ceo bob geiger saying we really need to build up the streaming business. they announced that august of last year and then they actually talked about the acquisition of a fox entertainment property and the fact i will help them in that endeavor. this affects, nat geo, bob iger talking about smaller digital bundles are the way to go. he talked about 170 countries. 120 million viewers will really help the global franchise. amazon and netflix.

>> was interesting last night because after the earnings the stock fell in bob iger started to talk about streaming services and bundled subscriptions. disney has three steaming services after the 21st century assets who then once the deal closes, you have the espn plus. >> as they do their direct to consumer, the reason i ask about price, it would be interesting to see how its price for his netflix. but i also found interesting is 33 million cord cutters this year and this is a direction you want to take disney and rightly so as well. >> 15 times in 15 minutes. >> hit franchises the play of "star wars" or 10 episodes. >> we mention netflix as well,

that amazon is another all-time high. >> 50 all-time highs in this year alone. amazon and apple are the only two you can talk about in that context. it is the 800-pound gorilla. >> a bit of a contributor? >> i don't want to add it up because when i'm old and eating cheerios, what i spend so much money on amazon. that's cannot be my dinner for the last two decades of my life. >> in more ways than one. >> you must run out of things to say because you're right. it is all of our household is kind of just taken over. >> you think you start talking about valuation of the amazon. we've recently made a profit in the last few years are their stock has been building since then. statistics that amazon is they

take about 5% of the total spent in america. 5% sounds small. that's $200 million. 49% of online spending. not even including the cloud where they are way ahead of the competition. >> if you have a business unit chances are you're using amazon. >> one of the things we don't often think about. let me talk with the control room real quick. as elon musk treated at all during this segment? a big fan of deirdre's by the way. especially the good morning smiley face. connell: we talked to what harvey said earlier about this. it does bring up regulatory questions. ceo of a publicly traded company which elon musk still is. >> when it is the most shorted stock in history.

>> i heard professor galloway on with you yesterday who is amazing, that he refers to elon musk, but he said i think he's opened himself up here it is now a very risky position even legally. he was pretty bbq thing why would he do this? it's up to himself up to a world of worry. >> if you take at face value what he's talking about and maybe he's right. maybe he's the type of guy, visionary genius, whatever this comic centric for my baby is the type of guy better up running a private company. >> 13 actually raised his wealth by half a billion dollars. i actually think that is a better company. he spoke with the former chairman whether this will cause in future legal woes. connell: talk about funding

secured and you better have it. you better have added by the way. >> we look at these billion dollars. connell: you better cut it yesterday when he said that otherwise you made a false event publicly. >> basically go through with it at this point under regulatory legal basis. there's a lot of hurdles to clear. the board has an even accepted this go private deal and then you have just share to shareholders and to regulatory approval. so many steps to get this through. he does 20%, but they still have to officially take us to shareholders and then there is a large institutions that own 50%. >> the employees also all owned stock in the company. if you were if you worked at tesla did have a choice if this happens. you want to get bought out or stay out or save and invest in a private company.

>> if we get there. >> bets were legal questions coming. thank you, guys. details on the record-breaking california wildfires coming up. this one in particular did break a record in the state of california which is to mark about in and of itself. a shift in the weather that helped shift the fight against the flames. that is next. my father passed this truck down to me,

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connell: an update from out west. crews are gaining some ground on the california wildfire we've been following. 47% contained, but the number before that was 34. the chief in california department of forestry fire protection jonathan cox joins us now. what more can you add in terms of progress you guys are making? >> yakima with unfavorable conditions with temperatures of little lower than expected. not just cruise to get in there, but some additional containment lines and actually get some aircraft in the to slow the progression of the fire. we do have hundreds of miles of open line. 300,000 acres of massive size and it's going to be we anticipate about september 1st before full containment is taking place on the conflict.

>> august 8th to september 1st will obviously take some time. take us to the next steps first. what's the most important variable for you? >> weather is a real variable. bone dry conditions in a serious right now. five years of drought is the lot of triple digit heat this summer and we've had what is called an alignment of feet, and dry fuels and that is really challenging firefighters. 14 dozen firefighters which is the single highest number in recorded history for california and it's really a full force effort right now to get containment with some of these temperatures come down. connell: is there anything you have that you don't need? >> you know, that's a great question. what we really need is just a break in the weather. were at the mercy of mother nature little bit in those cool temperatures are the number one thing we need. connell: it is nothing but hope

there. such a bone dry area. the president brought it up and yesterday we had a republican congressman in california who cleared it up saying whatever the case may be that there is a need for more water in the environmental laws hurt in your ability to fight the fires. from your point of view, that's not the case. is there anything the government could do or anybody else could do to make your job easier? >> you know right now our focus is really suppressing these fires and making sure people are safe in homes are saved. we have the water for these buyers that we need. helicopters that are able to pull water out of reservoirs and lakes. we have water that's able to move around. right now our focus is the immediate response mechanism as far as getting people and homes saved and that is really what were focused on.

connell: what is your process of doing that? it could shift on the diamond really come in and think it's gone one way and it's going the other way. our reporters out there one side of the street is fine and the other side is destroyed. had you go about collecting information and letting people know? >> yeah, we have a whole host of things we use to figure out what is going to happen. we call it fire behavior. fire behavior analyst work alongside meteorologists to get some predict it models about what will happen. interestingly enough and unfortunately what we saw last week with something even our models were showing off the chart as far as fire behavior. we are using all the intelligence we can gather with our air attack and dies in the sky and really trying to put into a modeling system to see what will happen. we've been reinforcing to all californians right now because of the conditions we have out here it's not a matter of if the fire occurred in a lot of these

places in california. it's a matter of when and never when it's to be aware what plan they might need. >> i was writing that far off the chart, what made it so difficult? >> thursday evening when the fire came through there, there were some wind conditions they came in with heat and i came across a river damaged and caused a work text to come through. we saw damage in the reading area of homes and entire neighborhoods that were affected by this tornado that came through, which is conditions that have only been seen several times in the u.s. senate now being considered the biggest fire vortex or tornado in the history of the u.s. connell: one final question. were financial network and sometimes they can have damages. we've covered all kinds of storms in this part of the world. out there, something that was on an almost annual basis is worse

this year than the past. how are the downtowns doing? how is commerce doing? >> you know, one of our priorities as a fire agency is to return a community to normalcy to get them back to normal. a fire has huge impacts beyond just burning land. it can destroy homes, great family and slow commerce and business done especially if roadways are blocked or closed down. it's always a priority for us to get people back to their homes are back to their businesses and make sure we return things to normal as quickly as we can. >> jonathan cox, thank you good best of luck. thanks for coming out. we will be right back with more on elon musk after the return. you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. you wouldn't accept an incomplete job from any one else.

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but allstate helps you. with drivewise. feedback that helps you drive safer. and that can lower your cost now that you know the truth... are you in good hands? . connell: we have breaking news with the mueller investigation. president trump's lawyers have now responded, as we thought they might today to bob mueller's proposal for an interview with the president, which he could have asked him about obstruction of justice questions. here are the responses from jay sekulow. this is a statement by the president's lawyer, mr. sekulow put out. we responded in writing to the office of special counsel regarding its request to interview the president. it is not appropriate at this time to comment publicly about the content of that response. that's a whole lot of nothing in terms of what they said in the response. rudy giuliani said millions of pages of documents along with testimony from dozens of witnesses have been provided.

we're restating what we've said for months, time for the special counsel to conclude inquiry without further delay. the president's lawyers have responded to request for interview. we don't know what they said. charlie is coming up and said it sounds like a -- it might be. see what happens. bob mueller has wanted to talk to him about all issues including obstruction. that is the sticking point but didn't get a direct answer from sekulow or giuliani. top story is tesla, the board met several times last week to discuss taking the company private. the former sec chair harvey pitt was on with us last hour. >> first of all, he made his announcement during the trading day. that's highly unprecedented. second, he personally cannot secure a going private transaction it. requires the approval of

independent directors on his board and then shareholder approval. connell: what else do you need to know about the timing and the announcement? what's missing? >> one of the things is was there a reason for doing this. he has been complaining about shorts in the past, but he hasn't done anything, but he put the announcement out and suddenly the stock bumped up 11%. was that his intent? did he make that announcement to most stock or did he make it simply to alert people that this was coming? connell: number of issues there, raised obviously, fast moving story. we'll dive in on all sorts of angles. charlie gasparino is here along with kristina partsinevelos covering the story and dan shaffer, welcome off. you've been on this kristina. we'll start with you. as harvey said, there are a number of, on the timing of the tweet that have been raised for

elon musk. the timeing? >> it came a few hours after the "financial times" announced saudi the wealth fund got in on the stock. that's a huge vote of confidence. i think, this is based off people i've spoken, to the vote of confidence elon musk needs he can raise the money. big question is and we can discuss it right now where is the extra fund going come from in order for the company to be private. connell: he used the term funding secured. >> and think about what harvey is saying here, not quite saying that. what he's saying is look at the way the story developed yesterday. stock is trading flat. there was a leak to the "financial times" that they got the saudis in 3-5% of the company. stock goes up a little bit. who leaks that story? and the next thing where he comes out and minutes later after that story was leaked, he came out and said i'm getting funding from the outside. i think what harvey is suggesting and i know harvey pretty well is that there is at

least some smoke here. not saying there's fire. connell: right, we need to know more. >> to a stock manipulation case. that's what he's saying, what he said before that is that we know that elon musk was at war with the shorts. he has a reason to stick it to them. they got stuck yesterday. connell: red flags for you, dan? >> particularly when there's a leak and what he did. very weird. never seen anything like that before. >> this is not normal protocol especially after the 10q gets filed and comes out with an announcement. everything is strange and we're in the early stages of the chapter. connell: what do you want to know, then? >> i want to know about the funding, of course, i want to know why he says he's thinking about it but hasn't discussed it with the board or claumd the board discussed it. why would he come out with a tweet like this? elon is known for speak off the top of his head. we know president trump does

the same thing. in elon's mind, i'm trying to put myself in an inventor's mind, thinks off the cuff, i think he said it prematurely but wants to get out. spacex program doesn't have to deal with investors -- hold ocharlie, doesn't have to deal with public investors, wall street. i think he's fed up with that. connell: i understand that, may be going about it the wrong way. >> absolutely went about it the wrong way. >> not regulated by the securities and exchange commission. the problem this guy has, normal protocol, and that leak of the ft story is a tell. that is so weird. connell: about the saudi sovereign wealth fund. we have andrew staltman, chicago securities attorney, he'll get into the legal issues. welcome. want to get your view on this. charlie brought up stock manipulation in the harvey pitt interview, and harvey in other part of the interview did talk about the timing of the announcement in terms of

funding being secured. hafr eedz it could be a false statement that mr. musk made yesterday, he didn't have the funding secured at $420 a share when he made the statement on twitter. any red flags from what you've heard, what you seen, what you know? >> absolutely. look it was breath taking irresponsible for him to send that tweet out. not something that the head of a publicly traded company should do. he's exposed himself and his company to a tsunami of potential private lawsuits and regulatory actions and there was no reason to do it. and, yes, there is a chance it could be securities fraud if he was trying to crush the shorts? that's a problem. if he didn't have the funding already secured, then that could be manipulation. i just don't know why he would do, it it's stupid for a smart guy to do. connell: everybody else can weigh in on andrew. what do you need to know from elon musk, what does he need to tell us if we're investigating this? what would be your questions for him? >> number one, have to see if

the funding was already in place. and number two and most importantly, what did the board know and when did they know it? if this isn't the thing he got pre-board approval from, that's a huge problem. there needs to be an ak submitted, if none of that stuff was done, mr. musk has a serious problem on his hands. >> speaking of timing, he made the announcement on twitter and the company came out with no announcement. but the two were not simultaneous. >> and they're not the same, either. >> six out of nine board members signed it. i'm skeptical about that, and complaints the board is not independent. and to the previous point about regulation, you need to know exactly when he received the funding to make sure he is not going to be charged for fraud. >> i will say this no board is independent. look what's going on at cbs right now. i think that's why you have the rules in place, and what was striking to me is that his tweet was different than what

was sort of -- what was released. connell: they added to it in the statement. >> it was hedged. the release said we were not there yet, i'm paraphrasing, considering this. >> he was the head in the front. connell: the modern world we live in, are you allowed to make this announcement on twitter. >> you are. connell: you are, but you must have said that you would, and tesla did that. tesla said we might make announcements about our company on twitter, this is my understanding, andrew, you weigh in on this, you are supposed to make a simultaneous company announcement, and the announcement from the company came after the tweet, wasn't at the same time. is that an issue? >> that's right, under reg fd, supposed doing disclosed across multiple different channels. where is the board? we know mr. musk has a long history of sending problematic tweets out. remember the one about mccabe being a child molester?

and the company going bankrupt on april fool's day. you need to take his twitter mechanism away because he can't responsibly use it. >> i would say this is more serious, and say it this way, i don't remember the last reg fd case that was brought. they don't bring the cases a lot because there's a lot of gray area, wiggle room. problem is in the secured financing. that's a material misstatement. that's a problem. connell: if he has an issue, that might be the biggest issue. >> don't you think he would have had funding, he wouldn't have come out with a tweet like that. >> he better. >> fair discloser. >> and he better have documentation. >> most people -- most of the banks around that are getting called right now don't know where it's coming from. >> the saudis are selling canadian assets. >> i saw that. connell: any time the three of you are here, i can talk about insider trading with gasparino, we've had doozies over the

years. >> yes. connell: congressman chris collins, he'd been indicted on insider trading charges. the basic background is the congressman republican out of new york, big backer of the president pretty much from day one on the board of a biotech company based in australia. got an e-mail from the ceo they had a failure of a drug trial and alleged to called the son. tipped him off. the son sells stock, tipped other people off. >> back up. people are conflating this with the stuff that went on in the schweitzer book where congressmen were trading off of legislation. this is not that. that is probably legal. you can probably trade off of legislation. this such more involving the ins and outs of insider trading law known as the misappropriation theory. he's on the board, he took material information, nonpublic, that belongs to the shareholders of the company, right, and then basically misappropriated or gave it to somebody else. now here's the rub, it's still not an open-and-shut case.

if the son took that information, overheard him innocently, that might not be -- that might not fit the insider trading statutes. if, if also he would have to show that the son gave him a benefit of some type, which adds to the level of intent you have to show to bring the case. connell: the son? why would he have the stock. >> to show he got something of it. he can't talk to his son? >> talk to the federal courts. they have overturned cases where you cannot show a benefit or a gift between the two. in order to establish intent, people don't steal stuff and give it to someone else without a motive to steal, you are getting something in return. >> giving him her on love. >> maybe that's it! that's a good one.. connell: that may be a good point. the answer is he was at a

congressional barbecue held at the white house, that's when he got the e-mail from the ceo. >> there you go, could be innocent. connell: i was reading the indictment before he went on the air, he made a number of calls to his son's cell phone almost immediately after receiving the e-mail. i guess we don't know. we have the phone records of the calls, the first few apparently the son didn't pick up. finally had a conversation and the next morning, i believe, the son started selling stock. >> looks fishy, obviously. connell: that's pretty much textbook. would you need to know. could you deny what was said on the conversations, andrew? would there be a defense here? >> there will be a defense here. what i can't fathom is the department of justice bringing these charges against a sitting congressman. that's really, really amazing if you think about it. supposed to be the line between the legislative and the judicial branch. connell: he's on the board of a publicly traded company. >> yeah, exactly. suspicious stock trades, all

the ones before the tesla announcement get screened heavily by the sec. i will say this, barry sanders, the former coach of the dallas cowboys. >> barry switzer. >> our apologies to one of the best running backs. >> barry sanders is a friend of mine. barry switzer, who i don't know was at a football game, a high school football game, he overheard two executives talking about a stock sale and traded on that. he got off the charges. the sec brought charges against him. >> this is a phone call. >> we don't know. you don't know. we know there were phone calls. we therein was a trade. we don't know how he got the information, and if you really want to know how difficult this is, look at the martha stewart insider trading case where she never got nailed on criminal insider trading. >> the "wall street journal" in january came out with a report he gave a tip to tom collins in the day and offer the stock

between 50,000 to 100,000 of inate stock. connell: offered to who? >> tom price. >> former hhs. and the other question is how can a member of congress serve on a publicly traded company's board. >> it's legal, but i'm not saying it's good, but legal. i would be careful with the tom price thing. >> it's going to come back up now. >> we know he gave an insider tip to comprise. connell: i don't believe price was questioned about the southern district. >> an investigation with the ethics committee. connell: within the house of representatives. i don't know, andrew, it's not an open-and-shut case is the point, is that the point? >> it's not, it's dangerous, he never should have been on the board of the company. as soon as results come, in he has to be quiet. that's common sense, you don't need to be a lawyer or board member to share that. >> someone who's done so much reporting on this and watched the cases get overturned on

appeal, we don't know how that information was communicated to his son. i'm not saying he's innocent. this looks anything but. >> insider trading cases are a lot harder to prove. there is heightened duty, it's hard. >> i'm a trader and know a lot of people and hear a lot of things. i will not trade a stock if i have a son on the board. the son knew whether to trade a stock, his father is on the board, it's not right. >> how that information gets transferred will be whether it's criminal or civil or whether there's a case. >> he's been kicked off of the committee of energy and commerce, by the way. so that just happened just now. connell: i did see, that paul ryan said it, anything quick on giuliani or jay sekulow's responses? >> i think they're trying to delineate, if you look at it, between collusion which they

don't think there is much evidence on, evidence that doesn't touch the president and obstruction which they're trying ayou can't obstruct a president from firing people like jim comey and, by doing that -- listen, they may take as many questions on collusion. trump may have been buffered by everyone on the collusion aspect, the obstruction is where he's right in the room. i think that's what they're trying to delineate saying to mueller, no obstruction questions, trying to figure out a legal rationale, how can you obstruct a noncrime? they've been pretty public about this. that's what it seems like to me. i don't know until you see exactly what they're objecting about. >> any time, you're welcome, andrew. any time. thank you. so they weren't. >> did i just wrap your guest? [laughter] >> actually, that is a good point to wrap it up. thanks, guys, appreciate it.

charlie, kristina. the guy had enough when he heard you talking about obstruction. talking about trade at the moment. nafta, we've been talking about it whether nafta is the first deal that gets done, the talks have been under way and have been for sometime. many in the business world deekt the impact what the president is doing on tariffs. lee speakerman is a huge proponent and jonathan hoenig who's not. we thought we'd put them together because it will be fun and all coming up after a quick break. we'll be right back.

. connell: trade talks continuing in washington as both mexico and u.s. officials are meeting in hopes of getting closer to a new nafta deal. edward lawrence covering all this, joins us from d.c. what's the latest, edward? reporter: the mexican trade minister will be here this afternoon. he believes they can have a revised nafta deal by the end of august. the u.s. administration hopeful for that timeline. >> better trade deals, you know, i know that the nafta negotiations have been going well and looking to make sure

we're able to close in on some of the trade deals as well. reporter: and the meetings this week will iron out three big issues, the first of which rules of origin. another one, the amount of a car made by labor making $16 an hour and sunset clause. the u.s. would like to see 75% of a car made in north america to fall under nafta, up from 62.5%. also like the amount of a car or percentage of amount of a car made by $16 an hour, the worker making $16 an hour. the mexican trade representative told robert lighthizer they could get to the 75% number over 5 years. today and tomorrow, the meetings focus on the salary i discussed. $16 an hour is the target at the moment. average assembly worker in mexico makes less than $6 an hour. mexican media saying that mexico has offered a compromise on that front. they say they can have a percentage of a car making $16

an hour. up from $6 an hour, as i said, as they make in mexico. mexico and canada deathly against the sunset clause. the u.s. wants this agreement tend to in five years. companies need to plan long term, have to make capital investments. mexico has offered an agreement or compromise on the front saying we could reassess nafta numbers but not end the agreement. that would allow all countries to leave the agreement at any point during nafta, so again, mexico saying they could reassess the numbers, the u.s. wanting the agreement to end in five years. see what happens later on today. connell: a big stick point, thank you, continue to follow your reporting. edward lawrence in d.c. does give us a chance to talk trade with the u.s. set to go through with new tariffs on chinese goods as well. there's a debate over there weather this will backfire or not. lee speakerman, thanks,

jonathan hoenig thinks pretty much the opposite. lee, start off with this as i'm trying to set you guys up to have a, i'm sure, respectful discussion. >> i love jonathan. connell: what are the benefits of essentially a trade war with the chinese? we're going to win this one, is that your argument? >> well, we've been in a trade war for decades, connell, and we've been losing terribly, and the benefits are that this is a national emergency what we're going through right now. we have an $800 billion goods trade deficit in this country, that translates into nearly 4 million well-paying jobs that have been sucked out of our country and absolutely have to redress it. a tariff is, to me, ought to be a uniform tariff. we just heard the report about renegotiating nafta, moving in the right direction. connell: but tariff attacks on consumers, you're arguing that's the way to do it. favor of attacks? >> you bet i am, otherwise, it

will raise 15% additional uniform would raise $3 trillion over ten years. that would avoid us having to raise income taxes, and i love jonathan, we agree on most issues, but -- >> no, we don't, no, we don't. no, no, no, no, we don't. because, look, you've been angling for a trade war. the president has been angling for a trade war, and our guest is saying it, tariffs will make us rich, trade wars are good. we're talking about taxes here. you can dress it up however you want. we're talking about taxes. connell: lee is basically saying we need these taxes, higher taxes. >> we're going to have to raise income taxes. >> no, no, no economist agrees with this. no member of the federal reserve. >> the economists have got us in the mess that we're in. connell: wait a second, lee. go ahead, jonathan. >> a lot of the pro-trumpers

that succeed in all caps and all talking but not listening, not listening to their own constituents. prices are going up thanks to the tariffs, on soda, beer, snowmobiles, headphones, washing machines, hvac equipment. these are prices that are going up right here, right now. and if you open up something beside the president's twitter feed, you will read about it. >> excuse me, for one second, this is interesting, jonathan brings up what we read. a big story in the "wall street journal" about small businesses being hurt by tariffs and at the same time "gallup" comes out with a poll that says small business optimism at an all-time high, i'm not sure which one believe to on that, believe both, maybe people are happy and kind of satisfied now and there's an argument that that optimism is peaking and going to start to decline. what do you say to that,

jonathan? >> optimism is a lagging indicator, a lagging indicator. what matters is people's bottom lines and these are starting to have a very impact, not just in terms of costs, but in terms of hiring as well. we've heard from paper firms. small newspapers that have had to lay off people because of rising news print costs. if you believe that tariffs create wealth, that's what tariffs are taxes, if you believe taxes create wealth, i don't know, that's what the left is saying. >> we will have to raise -- connell: that part is true, what jonathan is saying, an argument from the other side for years. >> it is a ridiculous argument. connell: conservatives are coming back with a free market argument. why is it a ridiculous argument, lee? >> that is not conservatism and free marketism, tariffs on imports, beginning with abraham lincoln well into the 20th century. connell: modern day republican arguments have been to lower tariffs. >> it is not taxes, right?

hang on, let me finish. >> why is this argument not conservative snichl. >> it is not conservatism, it is corporatism, jonathan, you wouldn't get the great returns do you with your hedge fund. we have $800 billion trade deficit, don't get -- >> ah! >> no other major country in the g20 is close to that, that's four times gdp and a good trade deficit. if it's so good, why aren't the other countries doing it? >> the last time the deficit fell was in 2008 when the economy was crumbling. the president says we're losing money on trade. we -- >> we lost 5 million manufacturing jobs since china entered the wto in 2001. 5 million. connell: we're all talking over each other. i'll either end it or ask you. that point is a good one.

there has been jobs, whatever understanding of the issue there, there have been winners and loseers in globalization. >> no, we're all winners. connell: i understand the argument at the end of the day everybody ends up better off. >> they don't end up better off. connell: there have been loser, peoples whose jobs have been lost, and that's a political constituency that needs to be spoken to and the president is speaking to the people to this. do you have a better answer to that group than tariffs, what is it? >> the role of government is not to protect people's jobs but to protect people's rights, and you know what? pullman porters used to have -- >> not just a production input jonathan, a job is life. busy hands are happy hands. connell: i want to -- i understand, i want jonathan to finish the point. i'm curious what the answer is to that group, that's a serious question politically, you have to say something if you're not in favor of tariffs. what do you say to the people?

>> we heard the same thing from the democrats ten years ago, it was automakers back then. >> one time they were right. one time they were right. >> it's the same exact thing here. this is corporatism, picking winners and losers in the economy. >> the whole economy is losing, except wall street. >> all right. >> on that we got to go unfortunately for time. is it unfortunate? i suppose it is. lee, thanks a lot. we'll talk to you both soon. but it's the kind of argument people are having ahead of the midterm elections as well. obviously a big issue. when we come back we'll talk more about california and the wildfires and more on some other news that's come in. we'll be back. "cavuto: coast-to-coast." when my hot water heater failed, she was pregnant, in-laws were coming, a little bit of water, it really- it rocked our world. i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you?

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. connell: we did get the response earlier this hour from president trump's legal team to robert mueller's proposal for an interview with the president, and basically, it

was nonresponse saying it wasn't the appropriate time to comment on it. jay sekulow, rudy giuliani, with fellow horace cooper is with us, we appreciate this. and obviously, this issue is going to hang around, talking earlier about the midterm elections have, debates with the economy. bob mueller investigation is not going away, how much of a distraction is it for the white house heading into the midterms? >> i actually think the interest of the white house at this point is to figure a way to either get some traction with bob mueller before the labor day holiday, or to push activity until after the election. connell: what do you mean by traction? >> you want to get either a conclusion, a decision, some sort of ultimate outcome either before labor day because the department of justice regulations typically require

an investigation or any indictment not to be undertaken in a way that might interfere with the elections. that means likely in this case, not even allowing bob mueller to be able to issue even a report in september or october. so either do you it now or you push it out until after november. connell: mueller is probably unlikely, no leaks out of his office, seems unlikely to conclude his investigation without pursuing every avenue possible as to an interview with the president. mueller and his team want to talk about obstruction, it has been reported with president trump. not just about any possibility of collusion, conspiracy and the like. they want to talk about the idea did the president obstruct their investigation. if you are president trump, anything to be gained by sitting, agreeing to sit for an interview with the special counsel? >> hillary clinton sat down with the department of justice

investigators. they worked out a prearranged agreement and understanding how things would occur and she walked away with no consequence. all that a good lawyer wants for any of their clients, whether it's the president, whether it's the secretary of state, a senator, or anyone else, let's get some ground rules that will allow our client to give the best presentation possible. the problem as i see it is this idea that you can use constitutionally protected authority, the executive power in article 2 can be the basis for a claim of obstruction. that, to me, is a circumstance that puts this investigation on very tenuous ground. connell: looks like the mueller team wants to go after the obstruction argument or ask the obstruction questions. sekulow and giuliani were vague in the statements they released. there is a "new york times" report there was a counter made

by the president's team to the special counsel's office which says we'd like to see a narrower path for answering questions. i suppose yes, the president is open being interviewed but the path has to be narrower and that is based on the obstruction questions, right? >> well, reportedly this is an investigation about collusion. if it has morphed into a conversation about whether or not the president may exercise his authority to select a cabinet nominee or a high-ranking official at the fbi or remove them or any of these other reasons, as a pretext for some criminal action, you create a serious constitutional problem. this normally isn't the circumstance. you normally look for behavior outside the context of lawful behavior. whether it's your first amendment right. whether it's your second amendment right, normally you're constitutionally created

and protected rights aren't basis for arguing that you've committed a crime. connell: keep talking about it, go to other issues. the president's team hasn't rejected an interview request outright but like to limit the scope of that interview. that's the reports we're getting. thanks for coming on. >> thank you. connell: midtown investors leary of tech stocks, but should you be leary of tech which has had such a great run. we'll talk about that and more on "cavuto: coast-to-coast." metastatic breast cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i.

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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. the dow down 44. we've got a keen eye on tesla after yesterday when the stock was halted in the afternoon on the breaking news when elon musk himself tweeted he's looking for a buyout, that this

may happen, he is financially secured and $420 a share. stock down 1.6%. even harvey pitt, former sec chairman was on the show a short time ago talking about how unusual it was to release this type of information during the trading day is really locked up and may be guilty of committing fraud. board has noted they have met several times, but this type of deal requires independence on the board and shareholder approval. it left a lot of questions to investors at this time. one-third of mutual funds and etfs, one third of the stock goes to mutual funds and etfs, certainly many people are affected by. this we did see, as i noted, tesla down 1%. then amazon, turn the arrow around up 1% today. at the same time, whole foods which is obviously an amazon company launching online

grocery pickup, you click on it and drive to the curb and pick it up. amazon has truly been a winner. this tesla story, connell, has really taken over wall street. everybody continues to talk about, they are so baffled and don't know what to believe. connell: i think a lot of people were saying they've never seen anything like this. between the idea that it was a tweet, the idea it came out in the middle of the trading day and the funding secured that was included in elon musk's first tweet. reporter: i can tell you something, a note was sent out today, a private life is a happy life, you don't have to deal with the short sellers and the analysts and the press, this may not have been the way to do it. connell: that's fine if that's where he wants to get. did he get there in the right fashion? thank you, nicole. back to amazon, another one nicole hit on there with all-time high again at $1884 per share opace for 50th record close of 2018. scott martin is with us on

this, wishing he bought the scott. maybe he did. what about amazon? >> i am on tape buying it and may be telling to you buy it. that's elon musk style. connell: i have my funding secured. amazon. we can bet on two things, segment on apple hitting an all-time high and amazon hitting an all-time high. at one point do you start to say to yourself, enough is enough, take a few profits in the tech stocks like amazon or apple? . >> listen, i think taking profits is always okay, especially if you are an investor that is getting more upset with the risk that some of the stocks are showing, because we have seen bumps and bruise in the names. what's happened though and this is on day two, we used the opportunities to add into these names, facebook, when we had the tough earnings report, we added to the name, certainly with netflix as well.

if you look across the internet, look at google and dominance, netflix and dominance and stream, amazon emerging as a major cloud dominator and retail. those are the names you want to own. >> are facebook, for example, like you could throw twitter in there and the other companies involved in social media. there is obviously here and already overseas going to be this regulatory hurtles they're all going to face where maybe the amazons and the apples don't have to deal with that as much. do you have to separate tech or one big bag? >> can you separate them. the argument to me about the privacy issues, some of the regulatory things, that's already in the stock. that is already known, it's been coming down the pike for many years, i believe that's reflected and as that stuff happens, one of those buy the news issues because that gets behind the stocks and they can move forward. connell: real quick, any shift in the market in terms of leadership as we wrap up summer heading into the fall or same old same old.

>> i think there is a little shift going on, i think it's temporary, connell. going into the midterm elections, good to focus more on value, more on the consumer staples name, there's not this big excitement about rising interest rates at this moment, so dividend stocks seem like a good play. connell: fair enough, good to see you. scott martin. >> go cubs. connell: go cubs. we'll be back with a key auto exec, right after this.

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. connell: to the auto sector. ford celebrating its 10 millionth mustang built in michigan, bracing from the impact from tariffs. we have gary gastello out of the plant talking to ford executive vice chairman jim farley. take it away. >> the first mustang built in 1964. ten million new york the next one was built in flat rock. ford wouldn't have gotten to 10 million if it hadn't repositioned the mustang as export vehicle. sales are at risk due to the trade talk going on right now. executive vice president jim farley is optimistic it's going

work out. >> free trade is part of our philosophy as a company, grade for business. we want everyone to work through the best solution. we're confident all the governments will do that. it's in the best interest of employment and we're very confident we'll get a great outcome for our industry. reporter: ford hasn't had to raise the prices on the mustang overseas yet, hopefully won't have to if the trade talks go well. connell: thank you very much for that. that's something we were talking about, some of the companies have to deal with trade and have their way of dealing with it. pretty good looking mustangs as well. billionaire investor carl icahn first on fox with trish regan. we'll be back here on "cavuto: coast-to-coast" ahead of that interview. don't go away.

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connell: interesting new report showing that millenials taking a lead when comes to checking their credit scores, doing so more than other generations. nicholas wealth management president david nicholas joins us. what did you take away from it? >> yeah, thanks for having me. there is this narrative for so long that millenials just haven't been financially savvy. i was talking out of my office,

asking two of my employees are millenials. do you check your credit score? they both said they check it every single day. that shows more and more millenials are taking control of their financial house to make sure they do things in their life are meaningful not under the financial burden of debt. connell: a couple of things come up out of this. you could take it down the path, yeah, they're more responsible than you think and that is probably the first conclusion you draw but i would wonder why they're checking it so much? because they have issues, more issues with it than other people would, have problems with their credit score in other words? >> yes. 75% of millenials carry some type of debt or student loans or credit card debt. you know what? i'm buried under the debt. how much debt do i have? what do i need to do to bring that number down you? mentioned the economy how is it the affecting economy, affecting

personal savings. if millenials are covering credit card payments, not putting money in retirement accounts. number less than 80% have less than $5,000 in their savings. it is spilling over into savings and investing. connell: for as strong as the economy is. we have some stories how strong the economy is. that is one of the areas to improve. real quick, are we making right moves making progress or? >> i think it is encouraging. millenials are asking themselves what kind of life do i want? i want a meaningful life. we have to bring personal debt down. i think it will be encouraging going forward. connell: we'll take encouraging over the alternative. good to see you. interesting stuff, maybe a little counterintuitive. thanks for coming on. david nicholas. that wraps it up "cavuto: coast to coast" in this particular hour. we'll be back tomorrow to cover the interesting stories. overall the market is a little bit lower. not much movement on a august

afternoon. we're down 25 points on the dow at 25,603. thanks for joining us. i'm connell mechanic shane in for neil. trish regan takes you through the next hour. trish: thank you, connell. billionaire investor carl icahn joins me for the first interview since announcing the opposition to the cigna and scripps merger. he is warning cigna shareholders this deal is a huge mistake with a huge price tag. my exclusive interview with carl icahn. so don't go anywhere. i'm trish regan. welcome to "the intelligence report." ♪ . trish: also this hour, home depot cofounder ken lange phone joins me on set with his brand new book titled, i love this, "i love capitalism." he will explain why democratic