liz: $900. stuart: that is happening in brooklyn. coming out with the new samsung phone. smartwatch, alexa competitor. my time's up. connell in for neil. connell: very interesting. susan li there. great show. by far the best segment is men with the beards. you should shave off your head, grow one of the long beards, ashley. >> would be a great look. stuart: it is your show, careful, connell. connell: welcome to "cavuto: coast to coast," i'm connell mcshane in for neil this week. there has been a big debate what type of wave we're in for midterms. many say close ohio race points to a blue wave where democrats take over. president trump points to a red wave where republicans add to the majorities. our question that starts thing

off, what happens if the green wave continues? s&p 500 and nasdaq nearing new highs. they backed off a bit, but corporate profits doing anything but backing off. they continue to surge. new "wall street journal" sure fay just out, economists see economic growth hitting 3% for the year in 2018. let's start off with forbes publisher rich karlgaard, whether this economic momentum lasts beyond the midterms. neal says it is not red, or blue, it is green. you would think this helps republicans. it is funny. they don't seem to talk about it much. >> where republicans might lose the house is in some of these suburban districts in high-taxed states like california, illinois, new york, new jersey, et cetera. and i think they made an unforced error not lowering the top rate of income taxes if they were going to take away the salt deductions. for those republican voters, their taxes are going up.

so they're not all that enthusiastic. now back to the economy, i think 3% is very, very sustainable. one of the great tricks off the obama administration was to convince us that 2% gdp growth per year was the new normal, and it was actually abnormal in our history. connell: right. it is interesting in the "wall street journal" survey they talk about 3% economic growth, predictions going up from where they were a little bit, they do say, many economist, after 12 months out from now, that is when things start to get a little bit murky. they talk about dark clouds moving in. that brings us to the argument everybody seems to have, when does the next downturn hit? when does the next recession come? how does that impact the politics? certainly not 2018 but certainly of 2020. >> federal reserve policy by hiking interest rates too fast might bring on a recession or at least a slower rate of growth. we do have to keep an eye on the trade war. i was just in my home state of

north dakota earlier this week. connell: yes. >> senate race is very close and congressman cramer should not lose to heidi heitkamp but farmers in hearn north dakota are very concerned about this trade war. if the trade war keeps going, that could be another catalyst to bring us to slower economy. i believe 3% is very sustainable based on the policies this administration already brought to bear. connell: that is the argument, whether the tax cuts fade and what is the lifespan of the tax cuts. you said they last longer than other people think. is that your argument? >> i think the big one, i think the big one this administration has done to remove the regulatory burdens really hitting a lot of businesses and not necessarily businesses that are, that form the indexes in the publicly-traded stock markets. i'm talking about smaller, mid-sized, private business, many in the midwest, manufacturing companies, transportation companies and they got a realist by this, by

easing the regulatory barriers. so i think that alone might give us our half-point to one point gdp growth lift over what we had before. connell: it is interesting, rich, stay right there. i will bring in lenore hawkins, thematica strategist. his argument that 3% growth is that sustainable for some time? that is the debate out there. how long is growth like that sustainable. what is your view? >> i think, first off, what makes an economy grow is simply the growth of the labor pool and growth in productivity. the labor pool is not growing. this is demographic issue. people having fewer and fewer kids. labor pool growing half a percent a year. productivity is difficult to get to 3% because particularly last

several months, we have more job openings, then people unemployed on the sidelines looking for a job. we made immigration much more difficult. so how will you fill those positions. connell: you think we hit a wall at some point, lenore? very soon? >> very soon. what that also means when you have so many job openings and so few applicants, the people filling those jobs are not going to be the best fit for that job which means productivity goes down. connell: rich, what is wrong with that argument? i know you disagree from what you said so what is lenore getting wrong? >> the word soon. momentum, i don't think the scenario she lays out which i heard, which is very valid hits us soon. i think we have, i think that we have another two or three years before any of that really catches up in a meaningful gdp way. connell: what do you think, two or three years, lenore, what would you say? there is a big argument politically because it has ramifications there. rich says two three years, you

say? >> i say it is a lot sooner than that, if you take apart the second quarter gdp -- connell: well before the 2020 elections, all of that? >> yeah. when you remove impact of the tax cuts, you remove the impact of huge jump in federal spending the gdp growth was not that great, 2.7%, removing those factors. those are not reoccurring, that will decide it. for all the back and forge, what we talk about, that will dough side. forget the midterms for a second. that will decide which one of you is right, when this all turns, how long it lasts. >> people's pockets. connell: thank you, lenore and rich. if you saw "the wall street journal" this morning the editorial board has an interesting piece warning republicans not to dismiss the evidence they say building for a quote, unquote blue wave. so the question becomes, president trump and gop leaders, are they ignoring some of those signs? let's bring in brad black man, former deputy assistant to

president george w. bush. brad, always good to see you. the journal, the op-ed, there are two or three interesting things i want to throw at you in that piece. one i have seen a couple different places numbers in this range, republicans hold 68 house seats, quote, unquote, less republican than ohio 12. so if this ohio race the other night was so close, then the logic goes they would be in some real trouble in some of these other ones. what would you say? >> i think we have to run with a view from history and history tells us since the civil war the party in power controlling the white house loses on average of 33 house seats and two senate seats. if that were to occur, it would blow our majorities and democrats would take control. the bad news is, we have history against us. the good news is we have a record for us. when you underestimate president trump which has been done in his political life, i think you do it at his peril. the fact of the matter, trump is making good on the campaign promises. you talked about the economy.

the economy is doing well. we only have about 90 days before the next election cycle and i have to believe the economy is going to hum along as it is now. so if we tout that record, if we exploit the fact that we have made good on our promises, americans are doing much better than -- >> i don't hear, brad, a lot of republicans doing that. >> they have to do it. connell: some do. i don't hear a ton of them. a lot more talking about immigration, trade, a lot more talking about democrats, you don't want nancy pelosi in power. i understand the political argument here, but i don't hear as many of them talk about what you just talked about, the economy? >> they better start doing it after labor day. the mantra should be you can't argue with success. america is doing better. the american voter is much better off than they were president obama. forget all the ancillary distractions out there. the fact of the matter is, democrats are against everything. therefore they stand for nothing. our message should be very positive. if you like what is happening now, give us another shot. if you don't, then we're going

to go back to the days of high unemployment and high taxes. connell: right. stick to that economic message. >> right. connell: the interesting thing, second thing i wanted to throw out to you, brad from "the wall street journal" piece i think is interesting, whether or not republicans recognize, rank-and-file voter out there if they recognize they might be in trouble? the argument in the journal, many are content to listen to safe media spaces, repeat illusions of red wave and invoke 2016 when they said trump couldn't win. somehow republican voters conditioned to think what they're hearing is wrong, polls are always wrong, then they don't show up to vote. >> midterm elections are about motivation, about turning out your troops f the troops don't feel motivated, certainly democrats i can tell you are motivated. we have to be equally or more so, we're outnumbered in registration most of the districts that are vulnerable. if we don't excite our base, if we don't expand our base, we don't win, history takes over, we lose.

connell: do you think the base is excited right now, just your read on it, looking at numbers, getting the feel for isn't. >> i think they're feeling good about the future. right track, wrong track first time in long time. americans feel good about the future. we have to give them ammunition needed for them to come out to the vote, not only bring friends and neighbors. that will take a lot of enthusiasm. hopefully the president will help do that throughout the cycle after labor day. connell: numbers show the looks like odds are democrats pick up the house, take it back and republicans keep the senate. you see it that way or? >> i think certainly a possibility. that is why we have to run like we're 10 points behind in every race. trump defies history each and every time. i wouldn't bet against him. connell: brad, thanks a lot. appreciate it. brad blakeman. the dow down 36. keep an eye on the markets. they have been pretty much flat here so far on a thursday. meantime very interesting announcement happening today out in brooklyn, new york. this is expected to be the most

expensive phone we've ever seen ever. why is that the case? samsung says you are going to be willing to pay for it, fork over big bucks for their new note. we'll talk about after this. ♪

a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia.

[music playing] (ceo) haven't been playing golf this year, i am sorry about that. (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event.

connell: so the smartphone wars is heating up today.

samsung actually out with what is expected to be the most expensive phone we've ever seen. how about that? you kind of get a look at it as it was unveiled out in brac lynn. susan li is at the event. samsung unpacked event. what are we doing, susan? reporter: definitely expensive. i have to say it is very interesting event. not only rolled out the new galaxy note 9, we have new home speaker, galaxy home, which is interesting. that was unexpected. big surprise for all of us here. this new iteration of the galaxy watch. we have the presentation. it is done for now. they're in the demo phase. all the brand new products right now are being shown off to participants here. a lot of people here in brooklyn to see what galaxy and samsung has to offer. start with the note 9, this is a make-or-break for the note line for samsung. it is pricey. guess what, you get a terabyte of memory. that is the most on any smartphone and expandable.

bluetooth pen as well. we talked about a dual aperture camera. it is about the home speaker. that was interesting. rolled out spotify ceo who was here at the event. they talked about samsung music. we have the competitor to the amazon alexa. they will get into home speakers as well. that is something interesting. new iteration of samsung galaxy watch. it is now going to be the galaxy watch instead. samsung right now is still trying to protect its lead in the smartphone wars. they sell more smartphones than apple. 300 expected to be shipped this year, compared to 200 million for apple. they have exclusive partnership. this is big announcement as well. exclusive partnership with the biggest video game on the planet right now, "fortnite." 125 million people around the world play it. a billion in revenue. it is not on android yet. it is coming on android

exclusive on samsung galaxy note 9. there is a lot to play with. samsung playing a bit of catch-up with higher end smartphone. of the 300 million ship more on the lower end. apple ships 200 million of expensive iphones. they need to upgrade and show off what they have to offer. guys, back to you. connell: interesting stuff. we'll talk about that in a minute. susan li out in brooklyn with samsung. susan says they are asking a lot for the smartphone. people paying a lot of machine any to get to the iphone x. will they be willing to pay for this as well. we have deirdre bolton. >> "fortnite" expert as well. connell: what a sensation that is. >> that is huge coup for samsung to get the partnership. that is exclusive. not a big deal. got it first.

>> they got it first. connell: susan said it was a surprise, the home speaker surprised the crowd out in brooklyn. there are eight microphones on it i heard earlier. >> the speaker situation with homes is very weird. apple has theirs. amazon has theirs. now we have this other one. good to hear they're working with spotify. that is one of the big issues with apple dealing with, they distanced themselves from spotify. that is smart. people will pick their thing and stick with it. i don't think there will be -- connell: looking at stock prices because we report this every single day of the week even with samsung's announcement, apple hit another all-time high. deirdre, what stands out? >> when you talk about speakers, people using whatever system it is they have, that is where apple shines and we were speaking right before we started this conversation you reminded us that samsung market sharewise is actually bigger in the world than apple. connell: susan was talking about. percentage wise, 22-15 about in

samsung's favor. >> in samsung's favor. people willing to use apple. iphone x, but the point people who use apple, in apple's ecosystem, they don't care. they just pay. connell: that raises a question. not just us, everybody you know has up with ever these smartphones. in the year 2018, russ, what drives someone to switch? you're iphone user, been one for years. what droves that person to switch to samsung or at least consider it? >> if you're an apple person you will stay an apple person. samsung has disadvantage here. it is very easy to make jump from samsung to another android device such as pixel. if you're apple you don't have another option. you need to admit apple has an edge over samsung, even if they don't have the market share, those people are much more locked in. connell: their competition is in

the necessarily apple. >> you get apple operating system and everything that goes in that. analysts talk about the halo effect. >> right. they will announce the best phone tomorrow and a bunch of samsung people would jump to that. >> we're all here. you want to talk about elon musk. this is 20 days for deirdre. >> you had it tweet by tweet. connell: new thing came out on elon musk. there is a report, a "wall street journal" reporting, "dow jones newswires" crossed this on a goldman sachs note, mr. musk may need to raise cash to buy tesla, which first read on this note came out, stock price by the way is down for tesla, would seem to challenge his own statement, deirdre, the other day which said, we're quoting, funding secured. >> based on what we know now seems like that tweet was not truthful, and if that is truth that's a problem. yeah, he is legally liable. you spoke with professor scott galloway, teaches at nyu, but he

has been an investor. he said the thomas edison of our time is coming off the rails. we have no idea why he would choose, why elon musk would choose to make that statement via twitter, instead of via a regulatory filing. that is one of the questions that the se considerate of want to know. connell: goldman note, potential eschews with transitioning shareholder base with this private structure may not be enough liquidity goldman writes for large institutions within the current fund ownership. we wonder if he had the funding secured why he would have went public. if he doesn't, needs to raise cash, as deirdre points out you have another issue. >> you talk about the thomas edison of our day, thomas edison electrified an elephant. he was loony tunes. musk is priedful and protective. he wants people to know him as amazing thing. he speaks off-the-cuff all the

time, especially on twitter. gets him in trouble. >> elon musk, we have reports he was speaking to board members at tesla quietly about taking the company private, which is well within his right. just the tweeting out. maybe part of that statement when i heard as you write it, maybe institutional shareholders, fidelity, t. rowe price maybe they don't have the money but maybe somebody else down, a saudi arabia or sovereign wealth fund which he is telling the truth. connell: that is a good point because it still good be a situation, his phraseology, funding secured, could be true. both these things could be true. >> i heard you, maybe fidelity, t. rowe price will not put up more money or maybe, softbank for example, has a 100 billion-dollar venture fund. they could afford to help elon musk out at tesla if they wanted to. numerous silicon valley companies could as well. connell: looking perspective

being analyst of the technology world, does a publicly-traded tesla make more sense to you or a privately-held tesla? >> honestly i think from elon musk's point of view he would much prefer to be private. that is his dream. you have complete control over his company, not be locked into disclosures, stuff like that. unfortunately this whole plan doesn't tie in with that, over 2000 people are owning the stock still, he still will have to make public disclosures what he is doing. he wants to remain this private company. i don't think it is possible. no way it works out that way. >> feels like that bridge has already been crossed. connell: foles that way. you like the company? >> i think it is interesting. he is erratic. no one else on the planet doing the stuff they're doing. connell: neil, elephants have been electrified. >> that is covered. connell: that has been done. >> you will get a call. connell: good stuff. covering all breaking news. we appreciate that. coming up signs maybe china is backing down a bit on trade? we'll talk about the trade war with the chinese and why china dropped u.s. crude oil off the

list for tariffs. that is coming up after this break on "cavuto: coast to coast". where the similarity stops . if you're on park street in reno, nevada, the high winds of the washoe zephyr could damage your siding. and that's very different than living on park ave in sheboygan, wisconsin, where ice dams could cause water damage. but no matter what park you live on, one of 10,000 local allstate agents knows yours. now that you know the truth, are you in good hands? you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase sensimist relieves all your worst symptoms, including nasal congestion, which most pills don't.

and all from a gentle mist you can barely feel. flonase sensimist.

>> welcome back to "cavuto: coast to coast," i'm nicole petallides live on the floor of the new york stock exchange. looking at rite aid down more than 10% today after the merger is scrapped with privately-held albertsons. the ceo believed in merits of the combination with the two companies but heard views expressed by stockholders. they're committed to moving forward with their own strategic plan as a stand-alone. shareholders were fighting this plan. complaining that insiders would get payouts that also didn't meet their needs. they took a look overall, big picture at this group, these drugs overall.

don't forget it was on july 9th president trump tweeted against the group, pfizer, others should be ashamed they raised drug prices for no reason. pfizer pulled back. look how the group is faring from one month ago. cvs and walgreens are higher. rate aid down about 7 1/2% during that time. back to you, connell. connell: nicole, good to see is. nicole petallides at new york stock exchange. to charlie gasparino with a story he has been way ahead of. tribune calling off the $3.9 billion media merger with sinclair. you have been ahead of it. >> when nicole was speaking there was tape of networks from trump, did you notice trump with his hands? i have to get this off my chest. he looks like, doctor. connell: here we go. >> third base coaches used to give the signs? connell: indicator. hit-and-run. >> he is telling the maga crowd, i love you. connell: nothing we could do about this, ralph.

what were you saying about sinclair. >> we've been reporting for weeks this thing is on its deathbed. today as we reported last night was the do-or-die time for tribune. as we indicated. i couldn't say for sure last night. all indications they were getting out and they're out. the interesting thing is they sued. what they sued since care, what tribune sued sin care over the rumor for week there was some sort of breakup fee, and maybe sinclair would sue tribune for getting out, forcing them to pay a breakup fee. connell: right. >> something over money. this is about money. if you read the lawsuit, i read parts of it, tribune is saying you cost us money because you were incompetent. you didn't know how to navigate the deal through the doj and fcc. through a doj and fcc of the trump administration was incredibly favorable for this deal to go through if you abided

by a few things, namely the divestitures that the fcc sinclair would have to do. connell: right. >> they would have to sell those stations, two dozen of them in order to get the tribune ones. sell two dozen stations to legitimate buyers. what the fcc obviously said in criticizing the divestiture plan which put the nail in the coffin of the deal for all intents and purposes that divestiture sold to third parties somehow connected with sinclair. connell: okay. >> it wasn't quite a straight sale. i tell you i will read through this more. it is fascinating that if you take tribune at its word, it is one side of story, sinclair obviously denies this stuff, if you take them at their word, they're saying a media company that is conservative, a darling of donald trump, did not have the sort of intellectual capacity to sell the deal through a very friendly

regulatory apparatus that -- that is the basic. if you read it, i mean -- connell: this is done, right? what would happen next with either one of these companies? there are other deals on the table? >> yeah. listen, will tribune buy some of disney's assets they have to divest in merger with us? they're getting fox local stations. >> right. >> they will have to divest some of that. does tribune buy that?? does sinclair buy that? if you take tribune at the word you wonder why who would get in bed with sinclair to do a deal because they really like they dropped the ball in this thing in so many ways, trump administration of all players, donald trump tweets favorably about sinclair. they're the local version of fox news's opinion shows, okay, not the news shows, the opinion shows. connell: i know what you mean. >> this is pretty fascinating

and you wonder if sip claire will be able to -- sinclair will be able to do a deal now? money trumps everything. do people want to get in bed with them. obviously we called sinclair for comment of the they have their side of the story. i'm telling you tribune's side and what some people in the media business are saying. connell: say that later on when we get back with you. you know what with have coming up next while we wrap with you, more on the space force. >> maybe they should beam donald up. if they beam donald up -- connell: there is movement in this building. >> he could be president of the universe. connell: there is movement in this building, building right now -- >> to beam me up. connell: exactly. >> ralph is yelling at me. connell: the draft is in place. there goes gasparino. the idea to make space force real. the vice president made a speech at the pentagon. blake burman was there. we have the whole thing covered when we come back.

♪

♪ connell: all right. we talk about the space force now. vice president mike pence laying out the administration's plan for the space force. blake burman has the whole thing covered. he is at the pentagon today. new digs for blake. this was interesting. take us through it. reporter: this was the vice president coming over here to the pentagon a little while ago, essentially to lay out the trump admin operation's vision, connell, on a possible sixth branch of the military which would be called the space force they want to get up and running this surrounds the what if involving satellites. for me and you every day purposes, satellites they control gpss, when you need to go to the grocery storm, need to get home, whatever, satellites up in space help us but more importantly for our troops out on the ground in battlefields. those satellites guide missiles. it is protecting those satellites up in space, essentially what this all

revolves around. the vice president though did name north korea and iran as adversaries but also most especially russia and china. >> as their actions made clear, our adversaries have transformed space in a war-fighting domain already and the united states will not shrink from this challenge. reporter: important to note the air force already has a space command. it is roughly 30,000 members, make up about 10% of the air force. so it's a pretty sizable number. the defense secretary james mattis argued against this new idea last year in a letter to congress but today he champion ad new service. >> it is becoming a contested war fighting domain and we have got to adapt with that reality. it is on par with the air, land, sea, space, cyber domains. reporter: president trump wrote

succinctly, space force all the way. connell, there is a long way for this to go for there to become a sixth branch of the military down the line, that needs congressional approval, that needs congressional funding. administration says there are steps they can put in now to further the process day long, they will i can in the first request for the 2019 budget next year. they hope to get this up and running by 2020. congress will have big say. connell: you were talking about 30,000 members already of the space command within the air force, right? reporter: right. connell: this would be a lot bigger. do we know how much or -- reporter: the vice president said they will not be starting from scratch. they already have a pretty big outfit as it relates to satellites, launching them, protecting them, developing them, et cetera. it is within the air force right now. as you know the air force does a lot of other things as well. what they're trying to do here is put this focus essentially

put it all under one umbrella, anything dealing with space would be dealt with by folks of the space force. connell: completely separate branch. blake, thanks. blake burman at the pentagon. when we talk about space we always talk about private companies taking the lead in developing space in one way, shape or form, whether elon musk, or somebody else that is the way the conversation is going. today is the focus on u.s. governments role as blake was reporting getting ahead of the likes of china and russia in space. we have former astronaut clay ton anderson with us. changes for coming on. we appreciate it. for someone that knows a lot about the space, what do you think of the militarization of space that is being talked about? >> hard for me to comment until i hear all the details with respect to what the definition of space force is, but if you go

back in the '80s, when we brought air force personnel on to the johnson space center to help them learn how to actually launch and control space shuttle missions they had designed to fly out of vandenberg air force base there is a precedent for that sort of thing as you already mentioned. until i know the implementation details its difficult. connell: let me ask but the past, you may and others may not understand what is fully going on, as blake was saying in his report there is a lot of satellite work involved with the military, whether guiding troops on the ground or moving through the air. is there coordination between folks of your branch, say, nasa, and what people were doing in the military in the past? if so, how much coordination? >> no, not at that time. the folks came to nasa johnson were mostly involved in the human spaceflight aspect. but the payload compliment were

top secret satellites in space. liaisons between the two that did kind of work. connell: where do the satellites go, go pretty far, top secret satellites go pretty far out into space from technological point of view and how hard are they to target? that is the worry or fear, if you're chinese, russians, going after one of our satellites, how is that done? >> right. the space station is about 250 miles above the either. geosynchronous satellites where a lot of satellites live is 33 miles up. -- 33,000 miles up. my understanding there is capability in the world to shoot down some of those satellites. i'm not sure exactly how that works but i guess china has tried that successfully. so to me it is something we ought to look at that how we do that again is the how, the implementation. connell: we're told by the vice president today both china and russia are investing what

they call hypersonic missiles. i believe i'm getting that right. i know i'm getting right what the vice president said how fast these moves, supposedly five miles per second. boggles the mind that something would move that fast. that is the kind of technology they're dealing with. we don't know enough yet until they unveil everything they're talking about, from what you heard so far is it worth it to go to a whole new branch of the military to do this or working within the existing structure within your view? >> my view always has been i don't want to add bureaucracy to our already huge government. if this idea brings more bureaucracy i would have to look at it very, very carefully but i think there is probably a way to bring it with less so we'll just have to see. another alternative we can use part of this development, if we're flying with russian cosmonauts, and find a way flying with chinese tyco naughts

the idea of working in space. that is would i would be investigating. connell: good point. clayton thanks for coming on. >> my pleasure. thanks for having me. connell: next hour, miciio o okaku will be with us. what it ends up being, in congress gets involved, do they consider it. it unveiled by the president. michio kaku next hour. nah. not gonna happen. that's it. i'm calling kohler about their walk-in bath.

my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call and ask about saving $500 on your walk-in bath, or visit kohlerwalkinbath.com for more info.

♪ >> real story here is not that this case isn't going to fizzle. it is going to blow up on them. the real question is, we talked about before, there is a lot more to what they did that nobody knows about yet. a lot more to the obstruction of justice, to the collusion, to the fake dossier. >> i know a lot. >> bringing steele back in after he was completely discredited. >> feed it to mueller. >> and mueller will have a lot to answer for. i said a long time ago, the investigation here has to be on the investigators. connell: okay.

rudy giuliani was on with sean hannity on the fox news channel saying that the investigation conducted by robert mueller is going to backfire on robert mueller. so the president's lawyers are pushing for kind of a speedy end to all this but should we really be expecting this to be dragged out? that is what markets are looking at. one of the reasons we talk about it. we have former prosecutor and criminal defense attorney david bruno in new york with us and "washington examiner" white house reporter gabby mangiallo. gabby, talk about the politics and side of all of this, rudy giuliani, seems obvious there is spin or public relations in all this wanting people to think that robert mueller is doing something he shouldn't be doing, whatever the case may be, what have you made of what you have seen here just this week from giuliani, sekulow and company, what they're trying to do? >> this is an interesting

strategy. here you have the president's outside attorneys claiming this investigation is more corrupt than watergate but they haven't really provided any examples to back that up. i mean we know that the president and rudy giuliani references this weird golf dispute happened between mueller and president trump back in the early 2000s. beyond that they haven't given any evidence as to why this investigation would be more corrupt, would have issues or conflicts of interests at hand and i think they're using this sort of as a tool to prepare themselves for the possibility that if president trump does decline to sit down for presidential interview, mueller and his team will obviously subpoena him to testify before a grand jury and any conflicts of interest could be used against mueller. how. >> how this ends up anything what has been said, giuliani or

sekulow, they don't want to president to talk about obstruction of justice or being asked about it. that seems what it comes down to. >> this negotiation about the statement itself has been eight months. this is the second counter offer going back and forth with mueller. the attorneys are telling the president, no, you should not speak. it is the president that is saying i want to. connell: they're worried about a perjury trap. >> they're worried about anything they don't know. this mueller investigation is so large. look at the manafort indictment itself. connell: right. >> that goes back 15 years ago. has nothing to do with collusion, right? so what about the president's financial dealings? who knows. that is why they want to limit the scope. they want to control the interview. their advice is, don't even do it to begin with. connell: as you said, up to the president, he always said he would be willing to sit for interview. what he does, is interesting, gabby. we'll see what he does at some point. the decision will have to be made. also a decision might have to be made by robert mueller, right,

how to handle all of this? if the president's lawyers are saying listen, if you think, you -- here is an item you may have thought that there was a law or rule that was broken, say that the president obstructed justice, maybe the mueller team thinks that, the lawyers will say you can't ask him about that. what will mueller do, with subpoena power at some point? he will have to make that call, right? >> obviously the biggest question in part of this. what is interesting we have so much insight what the president is thinking because his lawyers are constantly out there talking about strategy, talking about the types of questions that would be off the table, things that involve president firing of james comey and things he told james comey about michael flynn but we don't know how mueller's team is reacting to all of this. we have no window into what federal investigators are looking at to ask the president b. whether or in the they plan to agree to some of the terms laid out by president's legal team. it reached a point that the

president has these conditions but we have no idea what robert mueller plans to ask him about, we have been throughout the whole thing with mueller, indictment with the russians. we had no idea up until he was about to announce them. one place in your town, gabby, washington, we're not getting leaks out, which is kind of interesting and hard to do, david, but if you're advising, and i heard lawyers say all the time if i were advising the president do not do the interview, is there a reason to sit down with robert mueller if you're president trump at this point? >> sure. for pr purposes. connell: what about legal reasons? >> we have presidential election, midterms. he wants to be liked by the country. he wants to be approved. that is the conflicting interest that the president has with what his lawyers are saying. connell: can he help himself politically? but there is a big legal risk there? >> absolutely no. there are great legal arguments he has with executive privilege, even the fifth amendment. it's a dangerous area. sounds like he wants to move

forward. he wants to do this. ultimately -- connell: getting into some of those arguments. let me ask but the legalities of all this. >> sure. connell: the subpoena could come in. the president or his lawyers saying president will not testify. robert mueller subpoenas him. the president argues -- >> they would file a motion to quash in the district court. actually just happened with andrew miller, associate of roger stone. there has to be a legal basis. in the andrew miller case they said mueller was outside the scope of his authority. in the president's case he would argue executive privilege, fifth amendment. the d.c. court would have to make decision. it is appealable issue. could go up to the united states supreme court. connell: unless like president clinton did agree to the testimony. >> if it goes legal way it takes time. i think it would come after the midterms. i don't think mueller wants to affect or influence -- connell: david is our legal

analyst, there may be some political gain for the president. you think so or no? >> i think that his base is so riled up right now, actually buys into this message this is witch-hunt, they would actually be more supportive of him refusing to sit down with bob mueller, going through the process of being subpoenaed, bring it to the supreme court. connell: that is interesting. we've got to go, david, thank you. gabby as well. we'll move on, get back to markets. what we're just talking about, the midterms, and whether the market gains that we have up on the screen here can give the gop a midterm bum. that is coming up in just a moment. ...

♪ you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia.

at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. connell: welcome back, everybody to cavuto coast to coast as we move into our number two it's good to be with you this week i'm connell mcshane filling in for neil and we've talked a lot about when we get into political s this blue wave, the red wave but what about the green wave? there's a lot of talk out there the media about republicans being in trouble in november, there are some numbers that would back that up, the president though has been out there talking about a red wave that is coming. one thing we see and we see it on the screens just about every day is the stock market surging, employment rising, unemployment going down and the wall street journal economist survey seeing economic growth hitting 3% for the year in 2018 so who to believe what to think what's

most important we have from pricewaterhousecoopers mitch rochelle with us, we have senior reporter mary child and from real clear politics national political reporter kaitlyn burns so welcome to all of you. kaitlyn let me start with you because one of the things i brought up we were talking to somebody last hour about this is that the economy is strong and the market i'll tell you it's kind of flat but the market obviously has been doing fine and standing up to just about everything, but when i see republicans either out in person or watching them on tv i don't see them talking about it as much as you just would think. do you think it's an interesting political phenomenon? >> it's such a fascinating dynamic and i've talked to lots of republican campaigns, they are talking about kind of cultural issues, or social issues or really digging in against the opposition against the democrats and it's really interesting because the economy is good and there is reason for people to feel good about their situation, but at the same time they know that sometimes that that doesn't draw voters out.

it's getting riled up about something but it's not clear that you just show up to just say thank you. connell: maybe especially in a mid-term but you do have a good argument to make it's pretty simple. >> yeah, i think that's a really good point and i wonder also if there's concern where because there are some things people like to point to like consumers are pretty stretched there's a couple thins out there people find so we won'ter if you place too much on it this early and then what will you say? connell: are you seeing signs of people talking to either market tops or cyclical changes in the economy is that what you're referring to? >> sort of exactly and i feel like a lot of the uncertainty relating to tariffs and trade wars and the turmoil politically and that actually weighs on the market everyone is like once we clear this hurdle. connell: i was going to say that to you mitch we're almost waiting on a daily basis for these tariffs to hammer us and we have times when the dow under performs or whatever the case may be you could say that's because of tariffs but listen when we started talking about

this the president talked about all these tariffs and some of them went into place, chinese retaliated and we're still hanging in there when it comes to the economy and the market. >> so china and tariffs related three things i view as potential potholes and continued road to recovery, interest rates, infliction and a strong u.s. dollar. the strong u.s. dollar could hurt corporate profits we may see that in the third and fourth quarter. inflation then the tariffs could be inflationary, could cause the fed to want to raise rates more, whose the big buyer of our $800 billion worth of treasury is that going to be auctioned over the next couple quarters? china. so these are all inter-related and if we see interest rates go up and inflation. connell: but the funny part is none of that really affects or should affect mid-terms so you could still make an argument that's more of a 2020 issue. >> but i'd go to mary's point which is if you talk the market on the way up you own it on the way down. connell: that's what everybody says. >> all the time. but everybody did say that.

connell: everybody did say that to the president when he was touting the stock market like be careful mr. president but he still talking about those things , but candidates out on the stump or even the president 's rallies he's reluctant for some i don't know if reluctant is the right word just that there's a different point of emphasis and it might be working i don't know. >> well a mid-term is always a referendum on the party in power so even if you do have as republicans they are arguing they want to sell the tax bill and sell the economy they also know that just the dynamics of a mid-term are such that you have to get people riled up to show up for something so that's what they are battling and we're also battling the idea there's so much democratic enthusiasm on the other side seeing that effect especially in some of the house races in talking about the mid-terms we do have to differentiate between the senate and the house. connell: 100%. >> trends are looking that way so when we're talking about this blue wave or any kind of wave, it could be probably in the house. connell: whatever color. well it's funny to hear the president talk about a red wave

and nobody really expects what you would define as a red wave but he kind of defines things his own way and may say if we hold on to power that's red enough for me. >> and i think the market waves that certainly trying to differentiate between what the noise says and what they think actually will happen. connell: would there be a negative event for the markets would it be a democratic take over, of both houses? >> i think the market is sort of expecting that. connell: do you think the senate >> i'm not sure but i feel like if you have this kind of grid lock we're sort of accustomed to that and it might be over for some having passed a lot of what they think would be market positive already then i think it would be this might actually be welcome. connell: we'll expand a little bit on this but debate about what role the president should have in the mid-terms and where he should play that role maybe some districts play for him better than others, henry olson joins our conversation now and listen to this. you never heard this before, kaitlyn. henry's argument is that the president should be more vocal on twitter.

i never heard anybody say that. the people in the president's family who would like to cut back on twitter but you think he should go at it even more. go ahead. >> well i think he should use twitter the way fdr used radio back when fdr was elected the print media was republican and hated him and he got over them by going directly to the people. he should use twitter but perhaps use a little bit differently. connell: i'm only joking but that is actually an interesting argument to make the twitter fireside chat, but as kaitlyn said, the enthusiasm gap seems to be an issue for republicans are you and the president kind of close with that type of communications? i can't imagine him using it any different than he already does by the way. >> look the enthusiasm gap is more among the democrats who cross parties to vote for him, what i call the obama/trump voter than it is among the base republican. the base republican may be un enthusiastic but they will show up out of party loyalty. the party switcher needs to guest invested in this race and

that's what trump can be really effective at. they trust trump and they need to transfer that loyalty over to the party and if that happens could you very well see the republicans outperform expectations. connell: that is a good point. there's a long way to go between now and november, we could have a number of economic events, number of political events but mitch i've seen those types of people that henry is talking about and the president personal ly appeals to those types of voters, i guess swing voters, or the old reagan democrats or whatever you want to call them he personally appeals to them very well. the question is will some of these other candidates in these other races locally appeal to then as much as the president? a lot of those voters by the way agree with him on trade as an example. >> and look at all of the folks who voted for obama and trump. people feel like the candidates speaking to them about an issue important to them i think they respond to them and twitter is a great vehicle to speak directly to them. it's right on your phone. connell: trust me we know. anybody here not, kaitlyn definitely does, not have

twitter alerts of the president? >> not on vacation. connell: you turn it off on vacation? so it is interesting about how you use this vehicle to communicate because he's done it differently than anybody else has and i just can't see him changing his ways. he is who he is. >> he won't change his ways and i've been trying to talk to different campaigns and trying to assess the ways in which they think that trump will either be a benefit or a liability and it always depends on location location location. it really is going to depend on where these districts are, where these states are, most -- connell: give us an example of where he might not be such a big help? >> so he's not going to be a help in the swing districts that hillary clinton won of course but are represented by republicans now and also these tight districts that are purple are swinging remember in the ohio 12 race that we're talking about earlier this week there were 70 other districts that are less republican than that district. those are going to be closer. now, you're going to see candidates in north dakota and

indiana, missouri in the senate races really en deering themselves to the president wanting him to come and other places he's tightening the races more than they should be and could be. connell: do you agree with that henry where the president helps versus where he hurts? >> basically what i'd just say is some of those tight races tighter than ohio have a lot of rural voters like kathy mcmorris rogers out in rural in politico can, washington. my view is that the democrats and the people who are former republicans who hate the president they are going to show up anyway so if the president goes into a district like that he can't rile them up any more but maybe he can excite the rural obama trump voters to cast a vote they wouldn't otherwise cast. otherwise i would basically agree with kaitlyn. connell: as a final point, i think it was interesting mary we saw this and talked about it a little bit when it came out the wall street journalist economist survey did put a round number uncomic growth saying we could have a yearly growth rate of 3% i believe which is something certainly the president rightly

has the right to brag about and say listen we've got the 3% annual growth. the question now is sustainability. we had this argument earlier some people are in the camp wherein about a year it's going to start to fade for various reasons tax cuts fade away for example. to me that's the biggest political question not for 2018 but for 2020 is when that fade starts to happen. >> i think it's a great question and funny because all the years since the recession, basically every person you talk to since then, with some exceptions, has been like well i think the next recession is probably 18-24 months in the future and its been rolling so it'll be interesting to see. certainly there are things you can point to each time but having this prediction it's very hard to pin down. i think there's a lot of anxiety with housing and consumers being stretched but it really remains to be seen. connell: it's like we could talk until we're blue in the face about all these different issues but nobody can predict that timing and it's like the first president bush, the timing in 92 was maybe not a little different he would have been re-elected and same thing could happen this

time when that turn happens thanks to all of you appreciate it. now, i'm told mitch is in the green room which has a lot of people excited around here because everybody is talking about this space force and so is he, he's coming up as we continue on cavuto coast to coast, space force day we'll be back in just a few minutes. what might seem like a small cough

can be a big bad problem for your grandchildren. babies too young to be vaccinated against whooping cough are the most at risk for severe illness. help prevent this! talk to your doctor or pharmacist today about getting vaccinated against whooping cough. where we're changing withs? contemporary make-overs.ay then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at lq.com. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience.

are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call and ask about saving $500 on your walk-in bath, or visit kohlerwalkinbath.com for more info.

streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. 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: trade is day two of the nafta talks they're underway as the u.s. and mexico are trying to hammer out some kind of a deal and edward lawrence has been covering this throughout and he joins us from d.c. what's the latest today, edward? >> well connell the talks have ended for today. the mexican trade minister says they lasted over two hours, with very constructive talks, according to that mexican economic minister. and you heard that he's a constructively engaged on this. they're working on three big issues. the first of which the rules of origin. the u.s. would like to see 75% of a car built in the north american block in order to fall under nafta. also the amount of a car to be built by labor that makes $16 an hour, plus the sunset clause. that's a big one for mexico.

the u.s. wants nafta to sunset in five years, the mexicans would like to see it continue on now the u.s. agriculture negotiator says they are very close to a deal with the mexicans on nafta i'm told from trade sources then that deal would be taken to the canadians that ask them if they wanted to sign on or be left out in the cold so this administration also in a growing trade war with china. now, over the last or overnight of the last 12 hours or so, the chinese announced $16 billion worth of u.s. goods that will be tariffed at the range of 5% to 25% and quite frankly that range because the chinese are trying to minimize the impact on their citizens, 5% on the items they use the most, their economy already sliding. this is a very busy afternoon here at the u.s. trade representative's office. later on this afternoon, the juxtapose a niece delegation will be here to start trade negotiations to try and work out a fair trade deal with them. japan has been paying the steel and aluminum tariffs since they

went into effect. connell? connell: we'll look for your report on that edward thanks on the trade details these days and who knew you could get so fired up when talking about trade? i don't know if they do behind closed doors in the meetings edward was describing but sometimes when you talk about it on television you do. i'm told we're getting a lot of reaction to an interview we did yesterday. i'm not sure if that's actually true or just a bunch of our producers in the control room speaking to each other but it was a doosey between two self- described conservatives. our old friend jonathan honig on the other. >> i love jonathan we agree on most issues. >> he's basically saying hey, we need these higher taxes. >> we're going to have to raise income taxes jonathan. income taxes are better. >> no economist agrees with this, no into

november if those two have voted that way in the past. well let's bring in a louisiana republican common mike johnson to talk trade i'm sure congressman in a much more subdued fashion than those two yesterday, but it kind of brings up a serious issue that boy this president has quite, has had quite an effect on your party when it comes to this issue. it's kind of flipped the conventional wisdom and turned some people around when it comes to trade. do you feel it's cause to divide though? >> there's a healthy debate, i think, going on within the republican conference, and members of congress and now in the country at large. i'm in my district right now

we're in the middle of the august work period and i'm around talking to small business owners in various industries. i have a lot of agriculture in my district in northwest louisiana as well as businesses in virtually every industry. right now, i saw a poll publish ed just on fox news last night that 71% of small business owners support the president's strong stand against china because they know they are in unfair trade practices offender and you have to do this with a school palate some point not necessarily a sledge hummer but most people support holding a strong hand. connell: on that point do you find that some people even maybe a large number that voted for the president last time around support these policies even if it's not in their self-interest to do so? >> well, i think a lot of people do because i think they trust the president and his approach on it. we're cautiously optimistic of course we have to be concerned about unintended consequences through out the economy but at least with china, we know that there's such a huge disparity

and how they handle these things and in the past they've engaged in out right media propaganda to dissuade chinese citizens from buying american products. they're not above doing those types of things. connell: i notice you're steer ing it back to china because a lot of people do agree that china is a bad actor but as you know the president has gone after more than just china whether it be the canadians sometimes the europeans and trying to cut a deal with those countries when it comes to trade , we have the report on nafta as well so there's a lot more than just china on this. where are you philosophically? i assume if you've been a republican you at least were a big advocate of free-trade. have you changed? how do you look at the issue now >> i've always been an advocate of free-trade. i understand what the president is saying when he says we believe in free-trade but also fair trade. the question is the devils in the detail is how do you ensure that? i do think we have to have a very different approach with our allies in western europe, with canada and mexico our neighbors

nearby. connell: so the tariffs against the, that doesn't make sense, the tariffs against the european s know going after china with tariffs, yes. >> i think that's about right that's where i fall and a lot of the members of the republican conference do as well. we trust the president and trust the strategy but we're hoping that we can really focus on the ones who are the bad actors and that's where most the small business owners are. connell: totally understand the question is whether it's the right method the tariffs. is there any other way to do it other than just tit for tat tariffs. is there any other suggestion you even have for the president? >> well one of the purposes of the world trade organization is ineffective as they may be sometimes, there are mechanisms in place to deal with that and it's not just a talking point, we say let's just deal with it. i think you got to be very careful about how you address this. we want america to be treated fairly. i think america first is the right priority and it makes sense for us. connell: a lot of people say that final point you think it's a plus or negative trade for the

president and the republicans in the mid-term elections what are you sensing from people you talk to? >> i think it's a plus. i'm very confident about our prospects in november. the economy is going well it's because of our pro-growth, pro- business policies we've got to continue that. the democrats would reverse it and that's the motivation the american people need to go. connell: well many agree with the president on the trade issue , maybe not taxes but common thank you. congressman mike johnson. republican out of louisiana in a moment here in new york city, very interesting story with uber and lyft and these other services the cities dealt them a massive blow in terms of the way they do business and we'll have the details on that, and what it means for the taxi and everything else and how you get around town coming right back. fact is, there are over ninety-six hundred roads named 'park' in the u.s. it's america's most popular street name. but no matter what park you live on, one of 10,000 local allstate agents knows yours. now that you know the truth, are you in good hands?

connell: well, certainly we've been talking about the unrest in venezuela and now venezuela sending more than a million people over the border looking for help. the u.s. ambassador to the u.n. nikki haley visiting colombia

where camps are being setup to help those refugees and rich ed son, fox news correspondent is there, hey, rich. reporter: good afternoon, connell about a million are living here in colombia there are many more throughout south america they're escaping the political and economic crisis that's ongoing in their country that's showing really no sign of quitting there. the u.s. ambassador to the united nations nikki haley toward relief efforts in a border town there, it's right across the bridge from venezuela , tens of thousands of venezuelans cross into columbia at that point every day. many stay in colombia, they move on, but still, there are plenty of them who come, they eat, they get their medicine, clean water, and then they return to venezuela. many have told us they just want to work. it's an opportunity unavailable to many of them in their home country. >> like i told you, there is a big crisis. we have shortage of food and

medicine. children are dying because of the shortage of medicine. the senior citizens are dying because of the shortage of medicine. we can't find food. everything is over priced and that is why the majority are fleeing the situation. reporter: in an exclusive television interview with us the u.s. ambassador nikki haley said that other countries need to step up within the region they need to step up and pressure the regime and also provide more aid >> there's a lot to do so what we're trying to do here is raise voices for people who can and if they do that they get killed we can do that and go and raise their voices but we need people to hear and countries to hear. reporter: ambassador hayley says it is time formaturo to go so despite an attempt on his life this past weekend there are little signs he's not going to hold on to power there he's still maintaining power there a number of folks we spoke to said they heard the crackdown in

venezuela had gotten even worse after that attempt on his life this weekend. connell: what a situation in venezuela, rich edson on the ground in colombia. thank you, rich meantime another story we've been talking about here for the last i guess three days now involves elon musk and tesla the newest report in the wall street journal a little bit earlier on a goldman sachs note saying elon musk may need to raise more cash in order to take tesla private. hillary vaughn is on it with the latest from the news room in la. reporter: hi, connell. well regulators are reportedly looking into whether or not tesla ceo elon musk was telling the truth in his tweet that claimed he had already nailed down funding to help him move forward with what could be the largest-ever corporate buyout, taking tesla private. the wall street journal reports that the sec probe is coming from its san francisco office and could come under an enforcement investigation if musk tweets were misleading investors. a government official i spoke to familiar with sec regulations

tells me that companies don't need to disclose to shareholders that they are thinking about going private or are in negotiations. they are only required to disclose once the decision has been reached. tesla's board released a statement to follow-up on the tweets saying they politico very been in the loop about the ideas since last week and they're taking appropriate steps to move forward but there could be some hiccups down the road for the electric car company. goldman sachs saying the ceo may need to raise some cash even if he is able to hold on to investors goldman analysts writing "we know that incremental equity could be needed to help finance a management buyout but musk claims that funding has already been lined up for his pursuit of going private depending on where the money is coming from though, regulators could have questions. the government official i spoke to familiar with sec regulations tells me it is very common for public companies to get shareholder approval to go private but wait a year or more

until regulators approve it that could put any company in limbo and this official tells me according to sec rules as long as a deal is waiting for reg you late ors to sign off the company would stay on the exchanges and have to allow trading until they get the go ahead. connell? connell: interesting okay hillary thanks, hillary vaughn on the tesla story from los angeles now back in new york for a moment the city new york city just voted to cap uber and other ridesharing services this is a story getting a lot of attention locally but soon it might get along around the country as the new york city council voted to freeze all vehicle licenses for one year. adam shapiro is here with us in the studio. i say that adam because i guess we're wondering if other cities follow. adam: the question is with chicago big cities that have congestion issues would they follow? uber is not so concerned that would happen. i spoke to an uber spokesperson, but the city council unintended consequences they may have actually made the situation worse and i'll give you the numbers but first let me let you

hear or show you what uber said about this plan to freeze for one year the new vehicles they will bring in. the cities 12-month pause on new vehicle licenses will threaten one of the few reliable transportation options will doing nothing to fix the subways or ease congestion that's from uber. now, what uber is talking about here is a lot of congestion in new york city. 60% nearly 60% of uber's rides are outside of manhattan and the big congestion is manhattan so what uber is talking about is they provide a service for people who can't get to the subway or the buses and their concern is you'll limit the ability of new yorkers who live in the bronx or queens. connell: from the new york- centric point of view it is a really interesting story because most people know there's five boroughs to new york city. everybody thinks manhattan when they hear new york city but getting a cab would we say they limit the number of cabs. hailing one of those cabs in manhattan is easy enough. getting them outside of

manhattan can be tough. adam: and here is where the city council may have shot themselves in the foot. so they are limiting new vehicles of roughly 121,000 vehicles in new york city licensed to bring us around, 80,000 are rideshare dispatch. that's 41,000 which are what we call delivery of the black town cars, those cars are eligible to be rideshare cars so uber is now recruiting those people who those drivers to see if they will take their car which is already licensed to fill the gap that might exist but the other thing the minimum wage increase which uber supported by the way, didn't apply to those 41,000 vehicles in the drivers of those vehicles so now if uber can recruit them they are going to get a higher wage. connell: think about the timing of this especially for uber as they are thinking about going public and then if another city jumps on this, then you start to really ask some questions about growth if you're uber and a lot is political obviously because of the unions involved and representing the taxicab drivers so other cities could get involved here and then is uber's

growth limited? adam: that is a big question and there was a big push from the taxicab portion of this. remember the fleet owners in new york city we talk about the taxicab medallion to drive a yellow cab. well those used to sell for a million dollars and they're now $200,000, six cab drivers committed suicide but the vast majority of those are owned by a handful of fleet owners so what the city council is trying to do is raise wages and uber supported that. the other thing they are trying to do is cut down on congestion but the majority of rideshare rides are outside of the congested portions of the city and where they may have shot themselves in the foot is that you can now go to those 41,000 other vehicles and say please become rideshare and you can be even greater than what had already been rideshare vehicles. the other thing by the way the limousine, i should just say the people's republic. the taxi and limousine commission has the ability to increase over the cap the number of vehicles for rideshare if it

determines people in outer burr rows. connell: and their business has been threatened last year big time thank you, adam. we'll continue to follow that. in other cities today we're following the space force story seemed to be all the talk after the vice president's speech its been unveiled at least the proposal and the physicists is here to talk about that. he's coming up next this should be great. metastatic breast cancer is relentless,

but i'm relentless too. mbc doesn't take a day off, and neither will i. and i treat my mbc with new everyday verzenio- the only one of its kind that can be taken every day. in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- mbc, approved, with hormonal therapy, as an everyday treatment for a relentless disease. verzenio + an ai is proven to help women have significantly more time without disease progression, and more than half of women saw their tumors shrink vs an ai. diarrhea is common, may be severe, and may cause dehydration or infection. before taking verzenio, tell your doctor if you have fever, chills, or other signs of infection. verzenio may cause low white blood cell counts, which may cause serious infection that can lead to death. serious liver problems can occur. symptoms may include tiredness, loss of appetite, stomach pain, and bleeding or bruising more easily than normal. blood clots that can lead to death have also occurred. talk to your doctor right away if you notice pain or swelling

in your arms or legs, shortness of breath, chest pain or rapid breathing or heart rate. tell your doctor if you are pregnant, breastfeeding, or plan to become pregnant. common side effects include nausea, infections, low red and white blood cells and platelets, decreased appetite, headache, abdominal pain, tiredness, vomiting, and hair thinning or loss. i'm relentless. and my doctor and i choose to treat my mbc with verzenio. be relentless. ask your doctor about everyday verzenio.

>> under president trump's leadership we will meet it head on to defend our nation and to build a peaceful future, here on earth and in space. america will always seek peace in space as on the earth but history proves that peace only comes through strength and in the realm of the united states the united states space force will be that strength in the years ahead. >> [applause] connell: so that was vice

president mike pence earlier today, talking about this idea of a space force, that would tackle security threats in space how likely though is this program to come to fruition and how quickly can we see results and what would it all look like we're happy to have the theoretical physicist and the author of the book called the future of humanity, here in the studio with us. if i was ever going to write a book you'd have to be a genius to write one called the future of the humanity and know that you're not overreaching. we've been looking forward to talking to you about this because everybody either doesn't know what the goal is here, doesn't know what to expect, but i'm sure you have some idea. what do you think about what the president wants to do with this space force? >> well it's full steam ahead with lightning speed he's pulling in all stops. by 2020 he wants to setup the space force the first branch of the military since 1947. now without asking congress, he can already setup the u.s. space command. he can start to purchase

satellites, setup a command center, all without congressional approval. connell: a lot is already in place through the air force there is a space command in place so they are already doing some of this and they want to expand it big time. what are the pros and cons of it in your view? >> the pros are well look let's not be naive. the chinese and the russians are doing it too. just a few years ago the chinese freaked out the pentagon when one of the missiles buzzed right by one of our satellites showing that they could easily knockout our communication system if they felt like and the russians did the same then recently a few years ago and the russians are boasting about hypersonic weapon s the chinese just tested a few weeks ago and so people are saying well look let's not be naive about this. they have weapons. that's what president trump is saying. connell: what does it actually look like what are they actually talking about it's not star wars movie guys up there with guns fighting in space. what are they actually talking about from a technological and

scientific point of view? >> if you are a nuclear war fighter you realize that we have an achilles heel and that is that we control over half, well over half the satellites in orbit. they're sitting ducks to a preemptive strike. connell: somebody wants to hit them with a missile. >> that's right one atomic bomb over kansas would be sufficient to knockout half of our communication satellites blinding us knocking out power stations throughout the united states with the electromagnetic pulse. it would be a mess if that happened. connell: can you defend against something like that? >> well there are two ways of doing it look at the way ronald regan handled the russians. on one hand he built up the military and on the other hand he pursued very slide negotiations with gorbachev. now the art and space treaty of 1967 is out of date. it's in the dinosaur era where we had satellites going around the earth and it says nothing about advanced killer satellites

, nothing about the electromagnetic pulse. connell: that's a political argument but it works in some science into it. we need to update our treaties. >> that's right in other words the rules of the game even if you are a cop on the block you have to have rules of the game to make sure that the other side doesn't test horrible weapons because no one is going to deploy a weapon unless they test it and that could be regulated by treaties. connell: it is interesting. do you think it'll happen? do you think this is the right way to do it does it make sense to you? >> well look i think the trump adminitration has staked their reputation on this. it's hell or high water they are going to get the space force setup by around 2020. the question is how will it be done, will it scare the russians the russians have already said that they are going to match our space force weapon for weapon and they of course can do that even though they have a much smaller economy than back in the cold war. connell: when you say weapon for weapon are you just talking about missiles talking about firing from the ground through

space? >> different kinds of weapons . the russians said they have lasers which can shoot down satellites from the ground so they don't even have to be in outer space. connell: we don't have that? >> well we have it too but it's not operational. it's very difficult to control these high powered lasers as they go through the atmosphere where they lose a good fraction of their energy, but the point is these super powers are beating their chests saying that we have the capability of matching the united states, if they deploy laser weapons we have laser weapons too. connell: so far out literally, but you're concerned it sounds like about an actual space war breaking out. >> well as the president said, space is a new frontier, the economy, this tv broadcast is impossible because of satellites going around the earth, gps, weather satellite, the internet, telecommunications you name it. connell: we rely on it a lot and the price says was talking about this today the military relies on it a lot how the groups got

around. a lot comes from space. >> that's right. connell: thank you so much nice to meet you and thank you for coming in today appreciate you explaining it to us earthlings a little bit. thanks a lot. i wanted to make a quick programming note here tonight on making money with charles payne. the latest on this space force the former astronaut scott kelly is coming on making money so you want to see that exclusive interview in the 6:00 eastern time hour scott kelly. now, a update for you on the california wildfires the state officials still working to contain that largest wildfire. the largest one in california history that we've been reporting on this week and there's concern now that the smoke is reeking havoc on the air quality out there, there's more on that coming up, just a moment. urning onto the street when you barely clip a passing car. minor accident - no big deal, right? wrong. your insurance company is gonna raise your rate after the other car got a scratch so small you coulda fixed it with a pen. maybe you should take that pen and use it

to sign up with a different insurance company. for drivers with accident forgiveness liberty mutual won't raise their rates because of their first accident. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty ♪ 4 out of 5 people who have a stroke, their first symptom... is a stroke. 80 percent of all strokes and heart disease? preventable. and 149 dollars is all it takes to get screened and help take control of your health. we're life line screening... and if you're over 50... call this number, to schedule an appointment... for five painless screenings that go beyond regular check-ups. we use ultrasound technology to literally look inside your arteries... for plaque which builds up as you age- and increases your risk for stroke and cardiovascular disease. and by getting them through this package, you're saving over 50%. so call today and consider these numbers: for just $149 you'll receive five screenings

that could reveal what your body isn't telling you. i'm gonna tell you that was the best $150 i ever spent in my life. life line screening. the power of prevention. call now to learn more.

connell: now to chicago at least 70 people wounded 11 killed this past weekend in the city as the violence there continues. we do have fox news political analyst with us, and i know that you've in california right now but spent some time recently back in chicago. what did you take away from being in the city? >> well thank you for having me yes i covered the protest for fox news channel last thursday, it was an anti-violence march and what i noticed from interviewing some of the people there as you can see on your

screen right now, a lot of pep are just simply fed up with ram emmanuel's action. he's been mayor since 2011 and failed to keep the people safe in fact murders doubled under his watch and he constantly mentions this reduction in violence and murders, but it's not simply a real reduction because usually if somebody is going to mention a reduction it's going to be well since i took office i reduced it beyond what it was when i started. it doubled and he's talking about a reduction from when it started which leads chicagoans still worse off then they were before ram emmanuel took office, so people are completely and totally fed up with his inaction they believe that he's prioritized a legal aliens or undocumented people over the citizens in chicago especially the african americans there and this is his time to exit stage right. connell: i've heard a lot of people -- >> or stage left. connell: i've heard a lot of people make similar arguments about mayor emmanuel. what i'm wondering is what would they like to see done

specifically that this mayor is not doing and what maybe some other politicians in that office could do. what could be done to change, this story has been going on for years right? >> you know what's interesting. its gotten worse, but what's particularly interesting and i ended up interviewing state representative by the name of le shawn ford. i've known him for many years he's come on our network since that interview on a number of occasions now, but he is calling for president trump to step in which is something i've been doing for a while. since then we begin to build, him and i begin to build a coalition of leaders across the city of chicago who are willing to work with president trump as you know during the 2016 election he often mentioned how bad things were in chicago and in addition to him mentioning how bad things were in chicago as a candidate he continued that and said if chicago doesn't fix -- connell: so what do you want him to do? >> well first i wrote an op-ed released on fox news.com which i encourage everyone to read. i said that he should direct

attorney general jeff sessions and fbi director to come up with a comprehensive plan for the violence in addition to funding programs that would prevent at risk youth that would be helpful to those folks before they follow a pattern of constant violence and in addition to that we certainly need law enforcement i think to a high degree ram emmanuel to handcuff law enforcement officers throughout the city of chicago after the lequanfl macdonald tape came out which he withheld so he could win re-election the last time around so there's a number of things that could be done we talk about education -- connell: what's different by the way or what, you spent you're in la now spend a lot of time in new york been around all the big cities what's different about chicago? why do we come back to chicago again on this issue so much? >> you know what? i was born and raised in chicago i lived in poverty in chicago growing up my mom was addicted to crack cocaine i lived in the worst neighborhoods there were, lights and gas, water was off at

the same time when i lived in chicago as a youth. i've seen the distress that many people feel and one of the major differences of the education system is a fail in the education system. no fathers in the home, live births are crazy high unemployment in the black community and in addition to that back in the 90s there was a guy by the name of phillip jackson the ceo of the chicago housing authorities and they used to have towers with cages on them and he wanted to get rid of them because they reminded him of prison. they tore down the projects and spread to people in these areas who were high concentrations of crime and people throughout the city so putting them in these middle class areas which i think was a good idea but it ended up not being as great of an idea because then, it became the violence that were in concentrated areas spread across the city which provides the imagery that we see on a weekly basis in the city of chicago. connell: i know it's your hometown so thank you for coming

on talking about it with us. now, in a moment, we'll be back with more news and i do want to point out coming up next hour on the intelligence report former assistant to secretary of defense giving his take on the white house push for a department of the space force something we just tacked about anyway we'll be right back. i get it all the time. "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle.

and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. . . .

>> bank rate does a lot of studies. 25% of women, they are living under their roof. see the numbers right here. avoid going to the doctor at some point, even though they need medical attention. connell: men don't know what things cost, how much money in the house? >> unclear. this next number speaks to that issue. 47% of women who paid a medical bill in the last 12 months, say it was more expensive than they expected versus 35% of men. what does that mean. that mean make more anyone any. men more in touch with health care costs? does that mean men didn't go to the doctor last year. connell: could be a combination, right of all of those things? >> 57% of women and 51% of men are either very or somewhat

worried that they might not have affordable health care insurance. my big question, connell, why is this? why are women so worried? financial people would say, gerri women are scared of money, worried about it all the time. not everybody is simply worrying over their cash. connell: why issues like health care? >> we spend a lot of the health care dollars. this isn't just claptrap. this is from institutes of health published a survey on this. women spend over their lifetime $361,000 on health care. 100,000-dollars more than men. connell: live longer. >> live longer. have babies. beat you into submission. connell: what a list. beat you into submission. that is great. >> we worry, because we are the spenders in health care, right? connell: no, those are good

points. i have to toss to trish. she will take your side. >> my little boy says, you guys may be delicate flowers but i'm a delicate brick. connell: i don't know. trish: everybody is fragile, more of the story. breaking, everyone, president trump taking national security to a whole new level as he vows to create a sixth branch of the military, space force. we must taken taken peace through strength in space. this is part of protecting our economies from potential bad actors like russia and china. coming up, nasa's top chief why we do need a space force right now. i'm trish regan. welcome, everyone, to "the intelligence report. ♪ the breaking today, everyone, president trump putting russia on notice.