spreadsheets. stuart: did you? , did you? susan: yes. really, no, no. but i tried. my mother would have wanted me to spend more time. stuart: thanks, everybody for a great week. connell mcshane in for neil again. connell: great show. welcome to "cavuto: coast to coast," i'm connell mcshane filling in for neil. we're talking turkeys a stuart and the gang have been. you never know when the next financial crisis would pop up. here we go what would be a quiet august friday. financial turmoil in turkey has been hitting markets across the globe. president trump promising new tariffs against turkey in a adding to market anxiety that was already there. euro lowest point against the dollar in more than a year and if you look at the turkish lira which we've been watching all day today, it has been getting

killed. it was off the worst levels. record low. president of turkey vows his country will not lose an economic war. this all starts and ends with politics. blake burman live at white house. the president clearly not happy with turkey today. reporter: no, we had a pretty big announcement on tariffs, connell. this had nothing to do with china as you've been detailing. instead the president taking out his ire on turkey. the president writing the following, quote, i authorized a double offing tariffs on steel and aluminum with respect to turkey and their currency. the turkish lira slides rapidly downward against our very strong dollar. aluminum will be 20%. steel 50%. our relations with turkey are not good at this time. now the white house later clarifying this will not be an instantaneous move. a spokesperson saying the following, quote. as he stated, the president has authorized the preparation of

documents to raise tariffs on imports of steel and aluminum from turkey. section 232 tariffs imposed on imports from a particular country whose independent of negotiation on trade or any other matter that last part is important, connell. the white house is saying this is a stand-alone trade issue. as you know with turkey, there is another issue out there. that dealing with pastor andrew brunson who has been held in turkey on terror-related charges since 2016, which the white house, the united states federal government, pastor brunson, who is from north carolina himself, all deny. here was the state department spokeswoman heather nauert on that. >> have you made any progress of about the situation of pastor brunson? >> i would say we would define progress pastor brunson being home. >> so you say no?

>> progress is pastor brunson being brought home to the united states. reporter: connell it is unclear if the issue with pastor brunson has anything to do with this terrorist issue. you saw in the president's tweet. he said things are not going well with turkey right now but we also know very clearly, connell, that the president thinks tariffs are a winner and his team, and the president as wealthy that tariffs are a bargaining chip that bring people to the table. connell: a way to put pressure on, which i suppose they're doing today. blake, thank you. we hear the word contagion thrown around in markets on days like this, clearly european banks might be worried about exposure to turkey's debt, let's talk a little bit about how important all of this might be big picture. we're johned by moody's capital market chiefs economist john lonski, fbn deirdre bolton is here and layfield reports john layfield is here has a little sense instead of being in

our new york studio as usual is in bermuda. we should start with john lonski on economist side of thing to give us size and scope. sometimes we overdo it with stories like this and look back later and find we didn't do enough of it. how big of a deal is turkey? >> i can't help but think the markets are overdoing the situation with turkey, especially in europe. germany's dax is down nearly by 2% yet, i have to come across many stories telling me german banks have a great deal of exposure to turkish debt. turkish debt is very important in this case. connell: okay. >> turkey's foreign currency denominated debt, dollar and other currencies, more than 50% of turkey's gdp, according to the imf that is its big problem at this point in time. there is a lot of worry as the turkish currency sinks it becomes all the more difficult, costly for the turks to make

good on outstanding -- connell: big deal for turkey. how big of a deal for turkey or the united states. >> 10-year treasury, strong bid, gold dollar, rising, there is even u.s. isn't perfect, comparison point, cleanest dirty shirt in the closet. i hike to say. i think a little bit overdone. in the larger context not only if turkey is the only issue that could eventually rattle investors. we've been talking about a lot of back and forth with china. connell: 100% no i think it is one piece of the puzzle. i love what you said, look back, that was a moment to panic we didn't understand. connell: let me get john layfield on this. i will get back to john lonski as well. two johns here, i might have to go last names, layfield and

lonski. your take, deirdre brings up a interesting point. i was talking to someone about this morning, if the chinese trade situation didn't rattle us, certainly turkey won't -- >> i agree what john and deirdre said. the biggest exposure is not german banks but also the spanish banks. $80 billion loaned to turkish banks. france is second with 35 billion. the big the problem is not necessarily tariffs. it is sixth largest exporter of steel. it hurts economy. the big problem is lira is falling 40% this year. because oil is denominated in u.s. dollars. they import $38 billion. that is up 37% from 2016 to 2017. it will be up more than that because of the falling lira. they can't afford this right now. looks like turkey will be headed toward an imf bailout, by the way as the biggest funder of the

imf, u.s. will borrow money from china to bail out turkey because of the fallout from these tariffs. connell: how about that? john lonski, these things have a way of sneaking up on us than on sort crisis. i don't know if this will be the case. >> current account deficits and if they pay for the oil as the other john just stated. connell: right. >> one of the take waises from this is that perhaps, we ought to pull back our expectations as to where interest rates are going to peak in the united states. my goodness. we have a 10-year treasury yield can't spend any time above 3%. home sales are weakening, softening in the united states. we have the 10-year treasury, can't spend my time above 3%. we have the dollar strengthening. we have the problems overseas. connell: where do interest rates -- >> i think you find the federal funds rate will top off something well under 3%, maybe

around two and 5/8% later this year. >> what would that mean, layfield, if lonski would is right about that? what do you think about the implication of interest rates? >> i think john's right and he probably is. that is great for the economy. any president who came along whether mrs. clinton or mr. trump would face a rising rate environment which hurt economy. tax cuts mitigated that effect. this economy right now i think interest rates will be fine. the whole problem right now, the only black cloud really is not turkey, the trade war with the rest of the world. potential trade war. >> i want to talk about china a little more detail. lonski is chomping at the bit, deirdre. finish your thought. >> i agree with that. i think there is no denying the fact that we have gotten carried away with some forecasts of the interest rate front. we recently had a ceo of a global financial institution claim that the, what, 10-year treasury yield is headed to 5%. that is nonsensical.

that is way over the top. connell: a little much. so then before we get to china that is our next topic here i think layfield has it right. we hope, but think longer term would be china unless this situation spirals out of control and becomes bigger than it already is. >> 50 billion, 34, 36 put into place by either side and rest that is coming in the next two weeks, 16 billion-dollar balance from each side i think it is very absorbable, right? i feel like when it becomes, we heard president trump saying maybe we'll start putting tariffs on all imported goods which is about $500 billion. that is very different than -- connell: that is the days market gets thrown off when they have trouble interpreting what the president means by that. interesting kind of point about all this there are off-ramps all these countries have.

in turkey's case, they could take the exit ramp by releasing pastor blake was talking about, maybe that calms down markets and everybody else. with china, you look at the american pastor held a couple years, i'm not sure what the off-ramp is for the chinese. maybe they hold out longer, i don't know. >> they will hold out maybe a little longer than we anticipate. that is partly because they know midterm elections coming up. closer those elections come up, perhaps more the trump administration might quiet down as far as imposing tariffs that could prove to be very disruptive, first financial markets and eventually to the economy. >> talk also about the products, right, the chinese put tariffs on strategically chosen to bother president trump's voters. there is 20 billion-dollar exports, our important once. they are choosing -- connell: i want to make one other point on the reuters story i think kind of interesting on the chinese, there may be some sort of cracks emerging in the

leadership in china there may be some, john layfield, back and forth in the economist party where some inside the party, according to reuters at least, are unhappy with xi xinping's leadership although he is still firmly in power there. the implication, john layfield, would be hey, maybe the u.s. is winning this trade war after all and they have more to loose than us which we heard before but what do you think is actually happening? >> i think exactly what you're say something happening. mr. xi has a real problem here. when the u.s. sent over their delegation to try to work out the trade deal, the chinese papers were saying don't deal with the usa bully. he is under political pressure even though he is the for every chairman, one belt road, china 2025 passed. he is in real bind. chinese economy was hurting before the tariffs. this has not come at a good time for him. connell, the best point is where is their off-ramp? how can they get rid of the trade war? connell: what is it for china,

john? how do the chinese save face as they say in the situation? does the president give them a way to do that, claim victory on his own? is that how it would end, is what you're saying? >> the president brags about his negotiating skills. he has been good. he wants to give them a victory, giving a victory, we'll pull off the trade tariffs. we'll have u.s. companies come there, not to store data in servers in china and 100% ownership. what china did with basf, 10 billion-dollar plant they put into china. that is precedent for this. for german company. china can do this, that save face and win-win. connell: appreciate it, you guys. two big stories, turkey is the story of the day. china the story of the time. president trump blasting what he described as bad leadership in chicago. violence rocking that city. would a change at the top in chicago change the problem that they're having out there? we'll discuss that and more coming up.

the dow down 176. we'll be back on "cavuto: coast to coast" in a moment. two, down and back up.

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probably, i guess you have to take it from the leadership. this is from bad leadership. there is no reason in a million years something like that should be happening in chicago. connell: let's go to the former cleveland police union president steve loomis joins us whether change of that leadership would fix the problems. steve, that has been the question come up when people, the president and others say this is rahm emanuel, the mayor of chicago's fault, the recent shootings and murders that we've been reporting on in chicago even from this past weekend. the numbers are crazy. do you agree with that assessment but i guess more importantly is what would happen if there was a change in leadership in chicago, what would be different? >> i agree the mayor deserves a lion's share and the black community, naacp. there is no advancement for colored people in chicago in these neighborhoods. the law-abiding god-fearing citizens are living in fear.

the aclu, civil liberties are crushed in the neighborhoods. nobody can walk to the store without fear of being shot or robbed. mayor emanuel, actually campaigned on hiring 1000 additional police officers in the city of chicago. they're so understaffed right now as we are here in cleveland, most of the metropolitan cities in this country. it is a terrible situation and, the police officers are swimming in quicksand, especially in chicago. connell: that is the thing about the police officers. i seen a number of assessments that say, you know, ever since i guess laquan mcdonald story and other stories come up, there is this antipolice sentiment that has been building in the city. i suppose it exists in others as well. how much of a factor is that in chicago, that the community doesn't seem to trust the police, vice versa, maybe is true, it leads to a situation it is us against them as opposed we're all in it together? >> i don't think that is the reality. i think that is the reality of

certain groups, black lives matter, these ministers, self-appointed community leaders, sharpton, jesse jackson, they all make a lot of money creating that division. the media, not you guys, so much, the media does not report being -- accurately. this last shooting in chicago, we had bodycam video of the young man making a decision to pull a gun on police officers, and he got shot. that is the first bullet, look at black lives matter chicago website that is the first thing they're touting that the police officers shot a guy pointing a gun at them. that is a false narrative. it is absolutely not the mainstream thinking of the law-abiding citizens of these neighborhoods. i know that first-hand, i'm out in the street out there with our goals here in cleveland. they want to see more police officers. by the way, in that particular shooting those police officers were out there on foot because the law-abiding citizens go to

these community meetings, they're not asking why are we doing things the way we're doing. they're asking where the heck are you? we want to see more police officers in the street. 1000 short of what they're supposed to have in chicago. 150 short of the judge here in cleveland. it can be solved, but you have to have the political -- connell: will. >> you have to be able to pull the trigger on that. connell: i was, just because of your own expertise in cleveland, you mentioned being out there. one of the things that stood out to me, i happen to be assigned to cover the protests, potential protests otherwise at the convention a few years back in the city of cleveland. it ended up being relative basis a fairly calm week. there were a few protests that sarcked up that the police had to deal with. what struck me about the city, police commissioner, maybe still the police commissioner was hand

on dealing with everybody. he didn't sit back in some office there directing, he was there in the middle of it. i saw on a few occasions he personally was able to diffuse the situation that otherwise could have gotten out of control. i'm not saying situations are comparable. maybe they are not. apples to oranges, but something happening in cleveland in terms of chicago just the way the city is policed? >> police chiefs in general want that. they do the best they can do with resources they're given by the politicians. these bodycam as have been great for law enforcement across the country, because the chiefs, they're pushing those bodycam as out there to prevent the violence, prevent black lives matter and these other groups, these divisional groups that cause so much hatred, when there shouldn't be. connell: yeah. >> they push those things out there right away, day one, right after this thing, to keep people calm and give them cause for pause. connell: when they first came out in the law enforcement

community some were not as supportive of bodycam as. you are saying it worked out as your point? >> yes. my friend in the aclu are starting to pull back away from the bodycams we do what they are. we do help to help citizens than any politicians ever will. a rookie a year on the job does more to help citizens that need news the cities. those bodycam eras are tremendous asset. they show that time and time again. folks in community leadership, civil leadership needs to step up. where is obama? this is home turf? where is sharpton? where is jesse jackson? where are all these big power self-appointed community leaders of the african-american community, where are they. connell: is there a role of the federal government, we talked about our friend janna caldwell

suggesting something president can do. local leaders be maybe the federal government needs to get involved itself in chicago? >> the federal government has great resources. atf, the dea, the fbi, you know. it is good to work with those folks. but that is a local post -- government issue. i'm not a big fan of the fed coming in and taking things over. they could certainly help. even throwing money at certain social programs. you will not be able to arrest your way out of problems going on in chicago and these other cities. connell: yep. >> it will take multitude of approaches. prison reform. connell: that is what the president was talking about. >> letting these guys out. letting them out. connell: obviously not just one answer on something like this. >> sure. connell: go ahead, last point, real quick? >> i'm sorry, sir. i'm sorry to interrupt you. connell: that's fine. >> you have to start at the top. you have to have solid leadership that recognizes the

problems for what they are and you have to have the willing insist to put the boots on the street for the police departments to get these things solved. chicago has 17% solve rate for multitude of homicide that they have. they are swimming in quicksand. that is not because they don't have great detectives in homicide units. they don't have the resources they need to handle the volume going on. that is the on here in cleveland and elsewhere in the country. connell: steve, thanks for bringing your expertise in this, steve loomis from cleveland. >> thanks, sir. connell: as we get back to the tariff war we started on today, signs it may be heating up but china made a move this week that was interesting, could prove that our economy has the upper hand in the back and forth with the chinese. we'll get into that. also have the cypress semiconductor founder, t.j. rodgers, special guest tonight on maria bartiromo's wall street, 8:00 p.m. here on the fox business network a little preview. here he is weighing in on trade

from china. >> the average american gets a better deal buying good from china. having said that, they are setting conditions for making and exporting things to us that are unfair and unreasonable. for example, if you have a technology and you want to sell it to china, you have to make it in china and you have to give your ip to the factory that makes it. okay, you have to give up your technology in order to sell the to china. that's unreasonable, unfair, and we're pushing back on that hard. ♪ 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,

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>> i'm nicole petallides. welcome back to "cavuto: coast to coast" on a market day we're ceiling selling across the board. we saw it in europe. it is happening right here at home. s&p 500 down half of 1%. concerns about the turkish economy and the lira which has been dropping against the dollar and also at the same time

selling intensified after president trump tweeted that he would double tariffs on turkish steel and aluminum. we're seeing selling happening here across the board. and major averages are now on pace to snap the recent winning streaks weekly. as we see this we are seeing financials under pressure, worried about exposure to turkey. that going on into the eurozone. these are all three dow components, all weighing on the dow jones industrial average, which is right now down 170 points. it had been down 2.45. treasury, three week low, 2.88% as everyone flocks to the safety of the treasury yield. the russell, which is safety sort of play is here in the u.s. not as exposed to terrorists and it is just more insulated overall in the currency issues. you see that is up a quarter of a percent. it is up 23% over last 52 weeks. talk about the flight to safety, one area is utilities here in the u.s. they pay a dividend.

this group you find the up arrows today. thank you to charlie brady senior editor for good stuff. back to you. connell: makes food sense to look at utilities but smaller defensive companies, they buck the trend when trade is the big headline. thank you, nicole. with turkey in the news there is this question what is the global impact of the tour moyle of turkey is having -- turmoil from turkey is having. scott shellady with us on the show. we think we see how serious it is for their country. we see what is happening with their currency. what is the effect of on the rest of europe and the rest of the world and how big of a deal is this? >> we talk about "brexit" all the time with england leaving the european union. turkey flirted with becoming a european union member.

their debt to debt-to-gdp is one of the largest in the world over 50%. look at the european banking sector today. it got smoked. that is the real reason you saw the european boerses off and rolled into the u.s. with trump's comments made it a little bit worse. it is kind of a big deal. turkey is not really that big of a deal but at this time of year we can get surprise wrong footed in the markets in august because nobody is around. that is a large part of what is happening as well. remember this country flirted being with europe. that is one of the things i don't like and number two the european banks are very exposed. connell: they are to some exextent but percentagewise what they're exposed to in other countries is small, right? the turkish economy is small, right? i am wrestling with these two things. you look back on issue like this you would have thought it started with currencies in the '90s in asia than it was.

and other examples of currency of not such a large country turns into something really bigger than it really is. these things feed on each other. that is where where we get the word contagion. >> i've been this 31 years. it is not a black juan but one of the stories catches folks wrong-footed. don't have people normally at desk you normally would, there are a lot of holidays in august in here and european union. we have china devalued a couple augusts ago, couple years ago, it does happen this time of year. you have to take a step back, and as far as the the scale goes it is not that big of a deal. it us one of the things you catch wrong footed at wrong time of year and can be a bigger play than it normally would. connell: let me get before you go, scott, the big trade between united states and china which is a big deal we saw the headline

related to your area of expertise the oil markets. >> yeah. connell: china with these new tariffs and back and forth continues with the u.s., but funny oil was not on the new list. some started reading into that saying you know what if the chinese are not imposing tariffs on crude oil, maybe that is a sign their economy can't withstand much more and the u.s. has the upper hand. what did you take away from that? >> you got that right. here's the deal. we have exported more oil to china this year than we have in 22 years, right? so we've gone from oil dependency to oil inpendency to oil dominance. at the same time they're going more and more oil dependency as they grow and their market gets bigger. they're going the opposite direction the u.s. is when it comes to oil, how much we rely upon it, number one and number two, they're taking more and more oil on a yearly basis. the moats they have taken in 22 years. that is absolutely the reason why they can't afford to put anything on that. >> very interesting. they import 70% of their oil.

all of sudden that was not on the list. scott, we have to run. have a great weekend. scott shellady out of london. tesla, we've been talking about it all week. the board looking for more answers on the elon musk financial plan private. so gasparino coming in on that and thoughts on musk himself. charlie is next and we'll talk some more tesla. ♪ em up or slide 'em down. so let's see. for most of you, it's lower a1c. but only a few of you are thinking about your heart. fact is, even though it helps to manage a1c, type 2 diabetes still increases your risk of a fatal heart attack or stroke. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit for adults who have type 2 diabetes and heart disease,

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connell: tesla, the board there meeting with advisors this week to explore elon musk's idea of taking tesla private. we had hillary vaughn reporting the story an joins us with what is new. hey, hillary. reporter: connell, tesla's board reportedly wants his ceo to give up his seat at the table. reports say that the board is meeting with financial advisors next week to weigh their options and asked musk to recuse himself from the process. remember elon musk tweeted this

week confidentially the essentially the move to go private was all but a done deal, just a formal signoff from shareholders needed but looks like the board needs a little more convincing. there is a lot of questions about where musk is getting the funding for all of this and hold up, they could pump the brakes on going private. there are reports allegedly the ceo is in talks with the investment arm of the saudi arabian government to fund nearly $70 billion byeout, but no word from the ceo himself on if this is his mystery buyer. they did buy a two billion dollar stake in the company, but not only are musks tweets raising eyebrows at the sec, depending where the money is coming from, there could be more heads turning. if any non-u.s. actor is musk's buyer. the treasury committee on foreign investment in the u.s. would need to sign off on it too. if they think the buyout causes national security concerns they may send to it president's desk and ask him to decide if the

deal can move forward the all this matters because muck said he wants to convince investors now to stick with the company if he is able to pull off going private. but they may have to work through a lot of red tape to get there. connell? connell: would be very, i guess interesting if it made it all way to president trump's desk. hillary, thank you. hillary vaughn in los angeles. charlie gasparino is here with us in new york on elon musk. and hillary is talking about the possibility of recusals, maybe more than that how do you think it all ends up? >> it is a mess. i've been talking to traders and investment bankers on this. no one has seen in recent history about a lbo, which essentially what this would be leveraged buyout, probably unless the saudis write him a huge check, which probably will not happen, of this size, which would be the largest ever by the way come down like this. remember what happened, the story leaked in the ft around 12/18 about the saudi fund.

it was leaked, sources. was not a company announcement. within 15 minutes he puts out the tweet wants to take it private, funding secured. and, then there is, then there is sort of a scramble among reporters and everybody else to figure out who was funding it. connell: what was going own. >> nobody knows. later on there is a press release from the company which lays out his plans. that is raising red flags all over wall street. i haven't met a single person who believes he has funding secured. that doesn't mean he doesn't. here is what i would say, connell, i've been talking to a lot of bankers, a lot of lawyers on this, harvey pitt is good guy to turn to on this. connell: right. >> the sec, securities & exchange commission was established great stock market crash of 29 in the 1930s, when they passed various securities laws, first, that created the sec. i think joe kennedy was the first sec chairman, president john f. kennedy's father. it was passed for a simple

reasons so little guys didn't get screwed by the big guys. that the big guys had to do basic stuff right. they don't blow smoke to the entire market to mislead people. connell: what are you saying? >> my point is this. if the sec, we need an sec to make sure ceos don't go on twitter say whatever comes to mind and move stocks. connell: yeah. >> if the sec, if elon musk down have funding secured, i mean in vernacular definition of funding like -- connell: not only have it now, had it then. >> had it, right. if he didn't have it then and they let him get away with making that statement without some sort of enforcement action, then the sec should not exist. this is basic, fundamental disclosure and securities law. the securities acts of '33 and '34 were established to make sure small investors got disclosure and accurate. connell: you think he may not survive this?

>> he said funding secure. if he does not have funding, the sec if it wants to have any relevance in the world, i'm telling you, this is worse than missing the made bernie madoff scandal, a lot of people lost money. you could make the case it was hidden even though it was not. how they screwed that up keystone companies. this is fundamental. he says x. if it is not true, something has to come down off this guy. now the other thing if he said x, he didn't have it, the board lets him get away with it, if they don't hold the board accountable, there is no need for corporate governance at the board level. connell: incentive for the board, not that it would be right, to let elon musk get away with anything, no one can imagine without elon musk? >> i'm sorry, you have got to follow the laws. of course the whole basis of security laws created to establish the

securities & exchange commission and whole notion of corporate governance is to hold corporate chiefs accountable to do the basic things right like telling the truth. i'm not saying he is not telling the truth if he didn't have funding secure ad the sec doesn't bring a charge against him they establishing a insane precedent, they are establishing a precedent they're unnecessary. they should just start over and create another agency. they are, if the board lets him get away with it, there is no need for boards. connell: it will be interesting to see this whole thing. it was crazy watching this. we didn't know what is going on. markets, what do you make of turkey and everything else we're watching? >> the markets are on edge because donald trump is doing something totally absurd for a guy that deregulated, cut taxes basically got economy moving in right direction -- connell: talking about trade? >> to go into this trade, this trade fiasco, not in a way that was concerted and dealing with really bad players like china.

connell: this is big-time politics. what i'm saying that the markets are on edge because of trump's trade -- >> think about how stupid what he said once. what he said tariffs are the greatest. to come out of any -- you might want to say tariffs a necessary evil -- connell: trying to use them as weapon here. >> think about that the president of the united states making that boneheaded of a comment, tariffs are the greatest. that is, there is no other rational to say that is stupidity. connell: in that case he was talking about overall trade war with china. >> terrorists are not the greatest. connell: i'm not arguing that they are. i'm not sitting here, i was going to say we could find someone, the guy we had on the other day, he would take the other side. >> he wouldn't say the greatest, they're a necessary evil to achieve a goal. i'm telling you when you have the president of the united states making boneheaded economic comments like that,

markets will be on edge with stuff like this. connell: is making progress with any of it? with the chinese, we talked with scott shellady a couple minutes ago, oil is not on the list. there are signs that in the come think of the party not everybody is getting along with xi xinping. >> the way to go after china, isolate them even more. take the trading partners. we have a common goal. let's hurt the bad guy. connell: that would be tpp which we backed out of. >> it was ridiculous. it was absurd. connell: we're down 180. we'll keep on top of the markets. thank you, charlie. we'll be back to talk about more of this. we've been in a range for a while now. big on the space force. we're trying to get gasparino -- >> space force. that is what he meant. connell: shut his mic. >> he was watching "spacebawls"

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military for 25, i never heard of anyone say at anytime we need a separate branch of the u.s. military. connell: so that's makes this a money story. astronaut scott kelly on with adam shapiro last night. one of many who have been out there raising concerns about the cost of the president's idea of a space force. former state department senior advisor to bush 43, christian whiton is on, president trump as well, is on this. and some other issues. interesting, christian, that is the idea, you get away whether we need this or not, we talked about it yesterday you could definitely make the argument we do need to protect our assets especially the satellites up in space. some say have a space corps like we have the marine corps inside the navy? what is your take. >> the air force isn't taking this very seriously. the case is being made, the

vice president is making argument for a space force yesterday. the air force is focus the on fighter pilots, the one thing they want to do. the chief of staff of air force is usually a fighter pilot. second to that, bomber pilots. space elements, nuclear missiles, defending satellites, that falls fairly far down the list which makes sense to create a separate force, defending our assets which incidentally would be knocked out very early in a conflict with china, you about also missile defenses which would be ought to be in space. connell: would it be bureaucratic, another layer of government on top of government? could people at least say that enough is enough here? >> i could see the argument, it need not be that duplicative of bureaucracy. there are things you can do to minimize that, the same way you have separate navy and marine corps but they report to the secretary of navy, which trains up the services. perhaps you don't need a

secretary of the air force, the space force and air force report to a single secretary of the air force and space force. you can take steps. it doesn't need to be additional buildings and huge numbers of people. connell: we'll see what happens with congress who will have to make the decision on president's proposal. i want to use your expertise on turkey. it has become the big story of the day. certainly markets. down on the stock market. currency market is paying close attention to turkish lira getting hammered. euro down against the dollar. it's a big market story for us. what should happen to turkey? obviously the president is not happy. this american pastor they have been holding a couple years is not set free. that is pretty much behind all of this. there are other complications as well. this is not like it came out of nowhere, it has been building for some time but what do you think regarding turkey? >> turkey will feel a lot of pain. they should back down. they're seeing a lot of genius with donald trump.

contrary to what previous guest said, donald trump is using tariffs to good effect and purpose. it is 4% of what we import and comprises 10% of their production they send to us. those numbers are dropping. what the market is reacting to, a big change in the way turkey is treated by the united states. they have been murdering their secular democracy, erdogan, strong man who runs country. we used kid gloves. they're a nato ally, we don't want to push them toward extremism. that they are going any. donald trump is creating a reckoning for them and they are hurt. connell: they are pointing toward more extreme situation, more authoritarian rule from erdogan. what happens to him? is he on his way out? what happens to erdogan? >> erdogan is remarkably resilient and he has strong public support. that is a problem. he successfully really

undermined secular institutions in turkey and essentially the free press. this is the fires i am he is stumbling economically. you hope the middle class away from cosmopolitan istanbul may lose interest in him that he would be in trouble but he is surprisingly resilient. connell: thank you, christian whiton. thanks for coming on. a issue for markets. we know it is issue for turkey. they are in bad shape economically. how does it affect the rest of us here in europe or united states. welcome back and talk about that as we continue on "cavuto: coast to coast." we'll be right back. [ loesch ] this is superbeets and i swear by it.

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[ male announcer ] superbeets from humann. order your superbeets today. call... or visit... >> and here we go with hour number two of "cavuto coast to coast." i'm connell mcshane once again filling in for neil as we continue to sink in the stock market today. there are concerns about turkey. turkey has become the story of the day. the financial health there and the nation's growing rift with the united states over a number of different things that we'll be talking about. there's the president on twitter saying that he authorized doubling steel and aluminum tariffs against turkey. turkey's trade ministry, though, now just firing back in the last few minutes saying that extra tariffs are against world trade organization rules. so there you have it, that's where we are. we'll try to put it in some context, as i said earlier, give it some size and scope as we continue with market watchers

gabe hoffman, gary b. smith, christina, weekly standards deputy managing editor or kelly jane torrance. so, kelly, let me start with you on this. size and scope is important when you get a story like this and, you know, this is political at its core. turkey has been holding this american pastor for the last couple of years. we thought maybe there was a deal getting close where this person would be let go. that did not happen. so turkey still has a chance to get out of this in some ways. the i questions the idea is whether -- i guess the idea is whether they will take that chance. what's your read? >> this is an interesting story because it's where something political turns economic. one of the reasons the turkish lira has been spiraling downward is because people are worried about what the united states is going to do because they haven't reached a deal. now, of course, they thought they had reachedded a deal, you know? israel released a turkish woman who was accused of funding hamas, and that was supposed to be the deal. they release her, turkey

releases pastor burnson, and i have to say i don't think turkey is wanting to make a deal. just last night the turkish prime minister erdogan met with the chief of staff for iran's hassan rouhani, and he stated, erdogan stated he is going to do everything he can to help iran. and they still plan to buy iranian oil. now, of course, u.s. sanctions just kick canned in, more in november. so i think turkey is trying to send a message here that, you know what? we're going against you, united states, we're not going to make a deal. connell: and president trump's trying to send a message of his own with these new tariffs, christina. and to kelly's point, it becomes a economic story even if it started as a political one. and then we wonder kind of what the fallout will be from this. we've seen this before in other situations where currency stories -- and that's really what today is, right, christina -- becomes something more than they appear to be on the surface. >> yes, it is a currency story.

we saw this in greece, it affected markets back in 2015, same thing when there was a depreciation of the chinese currency. right now what's happening in turkey is a bigger story. you havered or wan that's not taking -- you have erdogan that's not taking any steps to improve the economy. he has a hold on the central bank in europe -- in turkey. they're not increasing interest rates. in may he was in london and actually said if you increase interest rates, that's going to create more inflation. so he's not trying to improve his economy. this is before any type of political tension between the united states and turkey. how does this affect the markets? one, you have thin trading right now. it's friday, so that's creating a lot of movement. but you do have exposure. certain banks in italy, france, spain having the hardest, most exposure to turkey, and that's being reflected in the financial sector right now. but the european central bank told the financial times that right now they're not viewing it as critical just yet. connell: yeah. and i don't think, gary, by the

numbers they should, right? as pointed out, there are european banks that are exposed to all this, we understand that. but in terms of just looking at the size, say, of turkey's economy versus, certainly, our own but even some of these economies in europe, it shouldn't be on the surface a big deal. sometimes that doesn't matter, but what do you think about what we're seeing today, gary? >> totally agree. i think if the market -- if you are of the premise that the market selloff is because of the crisis, if you will, in turkey, this is definitely a buying opportunity. connell: yeah. >> should trump be playing this card? i guess there's many different ways about diplomacy. you've got to forget their imports of aluminum are small to us as a percentage but they're pretty big with turkey. i didn't realize turkey's the ninth largest exporter of steel. so is trump playing the right card? i don't know. it's a strong card though, and we've seen with other countries, you know, like iraq, iran when

we've used economic sanctions, you know, the countries all say, oh, you know, we're going to be tough, we're going to last, but they really don't. connell: tariffs as a weapon as opposed to just straight-up sanctions. >> i meant tariffs, yes. connell: new developments on that front, gabe. just a quick thought on turkey before i switch gears to news coming in on nafta. how important do you see this in terms of global markets? >> well, sure. turkey is a relatively small country, and a lot of these issues have been known for some time. tariffs can be and probably will be a temporary negotiating tool. finish the real question for u.s. investors is the extent of the currency move has been greater than expected given these issues. what does that tell us. the u.s. short-term interest rates are the global standard for risk-free rates around world. in my view, the greater than expected currency fluctuation tells us that the global markets are betting that u.s. short-term rates will rise are more than

expected. connell: okay, that's interesting, because we started to get into that discussion last hour. john lonski thought they wouldn't go up as much, so maybe we'll come back to that in a second. i do have to switch to nafta because we've had edward lawrence outside the u.s. trade representative's office in d.c. monitoring these discussions. edward joins us now. we've heard there's some progress being made, maybe the u.s. and mexico and canada, maybe we're getting close to some sort of a new nafta deal. what have you picked up out there today? >> reporter: exactly. very close, in fact. this was an unscheduled meeting by the mexican delegation. it lasted 90 minutes, was only supposed to be a short review session for what they went over this week. this is the only place you're going to see an interview with the mexican economy minister, and he says they are very close to a deal on nafta but would not say exactly what deals are outstanding. >> making a lot of advancements and coming back next week. so we keep on working. >> how close are you on autos? >> as i told you, basically, we

are simultaneously moving a lot of items. nothing's close until everything is close, but there are items in every element that will -- [inaudible] >> reporter: and as you heard there, he is coming back next week to continue these negotiations. again, more unscheduled meetings. but because this is going so well, he's coming back. they said on a scale from 1-10, broader is he believes that the negotiations are are -- word is he believes the negotiations are at an 8 or 9, but they could be there for a little bit. the sunset clause was not addressed, that is a very big issue for the u.s. we would like to see this nafta deal sunset or end after five years. the mexicans would like to see a reassessment of the numbers after five years. all of this as the japanese delegation currently, as we speak, having their second meeting with the u.s. trade representative's office this week. they are inside trying to work out their own fair trade deal here. basically, the president's tactics of bringing, using these tariffs to bring countries to the table, it does seem to be

working. countries are coming. they are talking about it. this coming in as china announced that global car sales in china are down 4% across the board. in fact, american companies faring just a little bit worse than that. ford actually off 32% in july from this time last year. of so again, some of the tariffs may be playing in that. also ford is a company that hasn't had a new model in a few years. connell? connell: edward, thanks. edward lawrence in d.c. weal use edward's last point to talk about whether or not the president's idea of using tariffs to get countries to come to the table, whether it be china, mexico or anybody else -- we're negotiating with just about everybody. gabeness is -- gabe, is that fair that that is working even if you don't agree with the idea that tariffs should be used? is there something to be said for the idea that it is working this time or you don't see it that way? >> absolutely. tariffs are a good negotiating

tool. past administrations didn't use it, and donald trump is for the benefit of america. in particular with the mexican situation, because the leftist president takes office december 1st. both parties are uniquely incentivized to get a deal done before then. doing a deal with the present administration will be much easier than the upcoming one. connell: we have three other panelists. does anybody want to take the other side of that argument, or do i need to get jonathan hoenig on the phone? >> i'll take it on a little bit -- [laughter] i'm from canada originally, so i -- >> so am i! connell: very happy with that, so is she. go ahead. >> nafta has been working, and it's brought tons of prosperity to north america. tariffs in some cases work, they're working with china. that's not why mexico and canada are at the table, they're worried and well they should be. america should be worried. of this is a great agreement that -- and, again, we're talking about economics, politics turning into economics. connell: right. >> what if they come up with a

great teal and then president trump decides, well, you haven't gotten mexico to pay for the wall in this deal, i'm a tearing it up. you don't know what's going to happen. connell: we've had this discussion a bunch of times, and i can see where the distinction should be made, but the president doesn't always seem to make it. yeah, china's a bad actor, we kind of all understand that, but is canada? not necessarily -- >> i don't know if canada, aluminum and steel coming out of canada are a security threat, but this is a discussion we've had before that the united states, yes, has an opportunity to go after china. i don't think it's good to push youral i lies away -- your allies away. we're statussing this conversation, utah with mexico -- u.s. with mexico, and canada hasn't been at table for the last three weeks. and some of the products pass back and through the border more than eight times. so it is important to keep them on the table as well. connell: they might be getting close though with mexico, right, gary? if they are, if that's true -- you never know, politicians coming out of those meetings are going to be diplomatic in the

way they answer questions. but if they're inching closer to a deal, i guess the president's logic would be, quote-unquote, put a win on the table, start with that. maybe we didn't even need to redo nafta, but we are where we are. you put a, quote-unquote, win on the a table and moven on from there. what do you think of that strategy and what it means for markets, gary? >> 100%. i'm glad you asked me that question. we were talking about nafta, i think if they announce any deal before trading opens on monday, i think any losses today are reversed on the good news. connell: we can all forget about turkey for a while, right? if that's the case. >> you won't be talking about turkey another two days. i think it's good news. it would be a win for trump, for sure. connell: it's interesting, gabe, what's your take on which story is the bigger story? turkey becomes the story for today, right? that's what we were talking about before we took a break to talk to edward, and you were trying to make the point maybe in the all comes back to interest rates. whereas trade, especially with

china, is the bigger story overall. so it's funny to see the markets selling off as much as they are. again, not necessarily just in the stock market, other markets but even the stock market. the dow's down 180 whereas you could argue it held up pretty well when the trade headlines come out especially recently, although early in this trade dispute we did see pullback. what do you make of that dynamic, babe? >> well, tariffs are simply a different form of taxation. rather than relying on income taxes, that's just simply a tax on foreign-produced consumption. and the headline numbers are not all what they're cracked up to be. there are a lot of exemptions, and just because a tariff is announced doesn't mean it'll stay around forever. i believe what the international ethics markets -- which are the most liquid in the world -- are potentially saying about the future direction of u.s. interest rates in particular the fact that the fed current funds rate is negative in real terms below inflation and inflation is

growing, the fed is behind the curve, and rates will ultimately go higher than -- connell: which slows, so it makes the economic slowdown come sooner? is that gabe's argument, basically? finish that thought, gabe, real quick, and then -- >> yes. and it causes capital from foreign places which are risky like turkey to flow more quickly into safe assets like the u.s. connell: okay. did i hear an agree with that, gary? >> no, that was me. connell: yeah. i always get you guys confused, kristina and gary. [laughter] >> my voice. connell: this is the last point, but you were saying i agree. why? >> i was saying i agree with the fact that interest rates need to climb higher. but i would say emerging markets could be a buying opportunity giving this lagging s&p 500 for quite some time. connell: let's see what happens on monday. maybe gary's right, we'll forget about turkey on the map. thanks, guys, have a great weekend, all four of you. now, next up, believe it or not, kanye west. i don't know if anybody saw this last night, but he was on tv, and as he's done a few times

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♪ ♪ >> everyone around me tried to pick my candidate for me and then told me every time i said i liked trump that i couldn't say it out loud or my career would be over, i'd get kicked out the black community. it took me a year and a half to have the confidence to stand up and put on the hat no matter what the consequences were. connell: all right. so kanye west on last night defending his support of president trump, he was on jimmy kimmel's show. and, you know, a booming economy which you talk about here every day, lower black unemployment which the president talks about a lot, steady economic growth, and kanye west is a pan of president trump. -- is a fan of president trump. and now is no longer afraid to say it. let's bring in tv host deneen be borelli and ben kiss el to talk about this. -- ben kiss el. there are some broader questions that we can talk about but,

deneen, your thoughts on what kanye had to say last night. >> well, i say to kanye west, welcome to my world of being intimidated, harassed and bullied by the liberal mob that is intolerant and despises independent thought. i've been doing this for a number of years, colin are, so let me tell you years ago there weren't that many black conservatives that were vocal or open with their views. now there are more and more people coming forward talking about where they stand politically. but with kanye west, he has a lot of juice, he has a lot of followers, and he is the liberals', the democrats', the progressives' -- whatever they call themselves today, he is their worst nightmare because they don't want that message resonating to black voters. connell: liberal, he says, can't bully me. ben, your thoughts on -- or what did you take away from what kanye had to say. >> yeah, there's a lot to unpack here. i think i can't, obviously, speak for kanye west, but i can speak as someone who voted for

barack obama twice. i think there was a lot of regret about his presidency, a very fragile legacy. the only thing that he really got done was obamacare which has since been dismantled. the democrats lost a thousand see9s across the -- seats across the country -- connell: you think that's what led to this. >> i think 2016 was a referendum on barack obama, and that's why when trump was like what do you have to lose, it resonated with some folks because they were disappointed with what happened with barack obama. and, of course; we also have to remember hillary clinton, super predators, the criminal justice bill that she passed -- didn't pass herself, obviously, but advocated for in 1994 devastated the african-american community. so it's a very complex thing. connell: it is interesting because kanye west wouldn't be noted as a conservative even when he's talking about politics. years ago he was very critical of president bush at the time and said -- and jimmy kim asked askedmel -- kim el asked him about this.

what i said earlier, deneen, i thought it brings up bigger questions kind of long term is that when we get into the midterms and the re-election campaign in 2020, are there more people of the mindset of a kanye west who would be coming around to, maybe were inclined to support the president, were afraid to talk about it, or the opposite? is the president maybe losing some people in the middle as suburban voters have been brought up where they're going to the other side? is and, again, that'll be with the sciences, but which of those two do you think is more likely, deneen? >> yeah, i say look at the data. look at unemployment, record low unemployment among black voters. the rollback in taxes and regulations where anyone, no matter who you support politically, if you are a beneficiary of a bonus, of higher wages, of a job, people are taking notice. and don't forget democrats want to kill the tax cuts if they take control of the house. so we need to keep that in mind

with the policies that are helping all americans -- >> if people voted their pocketbooks. go ahead, ben. >> at some point the middle class taxes, they will go up. when it comes to donald trump, let's also not forget he is very divisive. this is the anniversary of charlottesville and, this is, of course, a president who said there's good people on both sides. he also just recently picked up his attacks on nfl players kneeling during the anthem to protest police brutality. so i understand the frustration. connell: do people vote their pocketbook. i mean, deneen's arguing that some people may acknowledge that and still vote because their life situation is better, their unemployment rate has improved, their economic situation, they would be ignoring some of these issues that ben has brought up or judging them not to be as important? >> i'm sorry, was that to me? connell: yeah. i'm just saying you'd have to ignore some issues.

ben has brought up stories out there that are legitimate stories for the president, you'd have to ignore some of those issues if you were going to focus on economics. to me, that's going to be the question, do people do that. >> yeah. the thing is the last election, the presidential election was about jobs and the economy. of president trump is delivering. he is delivering for the forgotten men and women. look at manufacturing, look at wages are going up. more jobs in our country than there are people to fill them. so he is winning on his policies, and americans are taking note. and identity politics from the left does not provide jobs and does not put food on americans' tables. connell: real quick, ben. >> the republican party also plays identity politics, and to that point, we need to have a path to citizenship for undocumented workers. connell: different summit, but we always get into those. ben got it in at the end. it was interesting to see what kanye west had to say last night and his logic from getting to

where he is from where he was. tesla, we've been talking about the board meeting next week and discussing this elon musk craziness with the tweets that started the other day. will there be changes at the carmaker? and the nfl, the preseason kicked off last night, and the national anthem protests are back, and the president is back to weighing in on them. all of that coming up. ry make-o. 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. 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 were just down over 200, a little less than that right now as we have been talking about turkey throughout the program and all the instability there. so now friday night over there, friday afternoon here. adam shapiro's up in our newsroom here in new york. i know they want to return to the negotiating table now, that's the latest, but it's a lot for the markets to digest on a friday. >> and you have the president tweeting about, you know, steel and aluminum tariffs against turkish metals. but it did set off an alarm because turkey is in trouble as

the lira keeps falling. let's take a look at what's happening to banks, specifically u.s. banks, because there is a selloff. even though u.s. bank exposure directly to turkey and to the lira seems to be minimal, the bank of international set elements puts exposure at roughly $18 billion. the financial systems or entities that really do have some concern over this would be found in europe, the spanish banks, france and italy. in fact, according to the cross-borderer settlement, i mean, spain has roughly $81 billion exposure. france, $35 billion and italy $18 billion. but we are watching u.s. stocks, financial stocks sell off because there is what some analysts would tell you is a little bit of fear about where is this all going to lead. and that c-word that we don't talk about since the financial collapse of 2008 and the european banking crisis in both italy and in greece, but the word of contagion, the exposure of those spanish, french and italian banks and what exposure there might be to other financial institutions if the,

what is it, if the chickens come home to roost regarding turkey. keep in mind, this is an economy less than a trillion dollars. it's not as if turkey is one of the powerhouses out there, but it's troubling to investors, and you see it reflected today, connell. connell: no, you're right. we've been trying to keep it in perspective. adam shapiro. now, we have a new update on tesla for you, hillary vaughn learning that tesla's board is planning to meet with advisers next week to talk about taking the company private. and hillary is reporting that, you know, at least one source -- and be careful with this a little bit, but it's one source of hers saying that the board was not presently aware of any funding that elon musk might have to take the company private when he tweeted about that. so, hmm. let's bring gene munster in on this, the noted tech analyst. we don't -- that's been the question, gene. what do you think of all this? have you ever seen anything like this where this funding secured comment from mr. musk has become

all the rage the last few days? if he didn't have it, he could be in trouble, but what's your impression of what's unfolded at tesla? >> definitely never seen anything in the 20-plus years of being an analyst. this is unprecedented just in terms of yet another bizarre turn in the tesla story. i want to be clear before we really dive into this, i'm a believer in this story. i think people should identify themselves as believers or -- connell: you mean you believe he has the funding secured. you take him at his word. >> i do take him at his word. and i've talked to people close who have worked close with elon, and they reassure me that they've never caught him in a lie or stretching the truth. now, maybe this is some anomaly to that, but i feel that there is some confidence that we should take in that, that in fact, the board was aware of what was going on and, in fact, that he had conversations with potential funders. this idea of secure funding, that language, it may sound very direct, it does imply that all

the funding is taken care of. but legally it doesn't mean that everything, every last t is crossed and i is dotted. and so i think that's an important distinction as you think about the legal risk. i think this conversation, though, gets us off the more important topic which is, you know, how is tesla as a company doing. but that's another topic. connell: well, give us your thought real quick. i want to ask you about the markets overall a little bit, but gives your thought on -- give us your thought on tesla. >> it should be a private company, but that aside, the june quarter really where the pieces were falling into place for this company. and that's obviously a pivotal moment. and i think that they would not be going private if they didn't feel comfortable that they were in a good position to generate cash, and i think that's an important point that gets missed here. connell: no, that is interesting. so you are a believer in more ways than one in tesla's story. not just in the story that elon musk is telling. i want to ask you about stocks

more broadly. we've been talking about turkey, obviously, throughout the show today. if you look at technology, nasdaq's now up a eight out of nine days, second straight week of gains. the amazons and the apples of the world, all-time highs just about every day of the week. so views on technology then as a sector investment wise right nowen given everything else that's going on in the world. >> more broadly, it continues to be a great investment opportunity, and the reason is that tech is going to grab over the next five and ten years market share from other industries. we look back at what's happened over the last decade, tech has grown as it's gained market share from things like the advertising world and google. you could say amazon's gained from traditional retailers. but in the future there are some even bigger pools that investors can go after whether it's augmented reality, artificial intelligence, autonomous cars. so we're big believers in tech. i do want to point out we think the leaders, the fang, we think there's going to be a break-up of that and the outperformance

is going to come from apple and google and amazon. connell: right. and not necessarily -- so facebook gets hit by all this, is your point? >> yeah, facebook and netflix. connell: yeah. and just a different -- or and that's basically because of all the pressure they've been under, facebook especially with the privacy concerns is a big concern for you. negative on both those stocks? >> yeah, that's part of it. facebook, i think i'm old, i'm 47 years old, so i'm not the prime instagram user, but i don't feel like the world is a better place because of facebook, and i think some of the recent changes that facebook has made in terms of trying to build community, i think, is a direct acknowledgment about that. so that, and i think that the user growth numbers are starting to plateau off as they add these new privacy tools. so that's why we feel. and, last, facebook doesn't have a big, open-ended growth opportunity like going after health care or autonomous cars, and so that's why we're not as optimistic. connell: gene, thank you for the

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and i can't help but think that the nfl's played a role in that in the way they handled it at first, being late to the game, and then bringing it back when not as many people were talking about it. what's your take? >> first of all, i would say the run was sprung by one of our clients, the starting center for the giants -- [laughter] i was there -- connell: well played. >> i would say there's really two key issues here. the first is these two sides fundamentally can't agree on what they're disagreeing on. and by that i mean one side says the issue's about patriotism, the other says it's about social justice reform and economic equality the. last year a huge part of the country said what these players are doing isn't right, but in the absence of a firm rule, you can't technically say a what they were doing was wrong. and so in may the owners voted in a new rule which required those players that were standing on the sideline to stand and show respect. that last part is where the problem is, loose language, ambiguity, a lack of specificity creates a subjective standard

for adherence. and no rule or law or regulation can be subject to subjective interpretation, it has to be objective. and so no what we're seeing is the temporary suspension of its implementation. connell: well, you do sound like a lawyer. >> i am. connell: no, i figured. do you represent anyone who's involved in actually exercising their right to protest, any individual player that protests? >> i would say, yes, in the sense that every player is impacted by this because this is in every locker room. it's an issue -- connell: i agree. but -- [inaudible conversations] do you represent a client that actually takes part in the process? >> no. all of our clients have opted, per their right, all of our clients have opted to stand -- connell: it's interesting, because you're right, everybody is impacted. it's a financial story at the end of it, right? for the league. >> right. connell: i mean, the league's -- we'll see how much of an impact it has overall, but it's already had an impact financially on this league, the perception of it and what does that do to your

clients, do you think, to their financial well-being long term? >> well, i mean, we're talking about a $14 billion a year league. the nfl's an industry in its own right. but to your point, if we want to dial in on the dollars and cents, last year, last november, malcolm jenkins of the philadelphia eagles led the players' coalition which was broadly advocating for social justice reform, economic equality, a variety of measures. and he really brought the nfl to the table, to his credit, and they agreed to an $89 million financial commitment over a seven-year term. he didn't have the nfl? a submission hold -- in a submission hold, and they agreed to support it. within that you also saw guys like chris long who donated all 17 game checks, and, of course, j.j. watt using his platform for positivity with hurricane reform. so there are a variety of examples of players using their platform for positivity and speaking out and not just

protesting, but generating progress, right? i always say there's a difference in movement and progress. and those are certainly examples of the latter. connell: i hear you. doug, thank you. we'll come back to the topic, obviously. for better or worse, it's not going away, which is part of the point. >> that's true. connell: doug, thanks a lot. to california now with a news alert and these fires, boy, look at this. the wildfires not only threatening the northern part of the state, this holy fire, southern california, that continues to grow. it's nearly 10,000 acres now. jonathan hunt is out there for fox news and joins us now from lake elsinore. what's the latest, jonathan? >> reporter: well,com, those figures that you mentioned have doubled overnight. the cleveland national forest is the lead agency in fighting this. they are now putting the acreage scorched at nearly 20,000. that's about 30 square miles which is, just to put that in some perspective, that's about half the land area of

washington, d.c. scorched by these tires. and -- fires. and you can see the smoke billowing on the hillsides behind me here. now, we've been here for a couple of hours, and i can tell you a lot of that was actually on fire. it was creeping further and further down towards the residential street we're we're standing in. but then the firefighters brought in a veritable fleet of fixed-wing aircraft. we watched as they dropped fire retardant, water, round after round after round. and for the moment in this part of this fire at least, they seem to have got a handle on it. there's another one of these aircraft just coming overhead right now. you can see. as i said, they've got a fleet of these things, and they've really made a huge difference in fighting these fires. they've also been dropping some of the retardant on the roofs of these residential homes here to try to make sure that they are protected if the flames actually get closer. all of this started, connell, by a man called forrest clark, 51

years old. he was arrested, he is being charged with deliberately starting this fire. he was actually caught on camera just after the fire had begun berating firefighters, accusing them of stealing money from his cabin in the woods. he was due in court yesterday, actually refused to leave his cell. obviously, ultimately, he is going to be in court. he will be charged with deliberately starting this fire, and if convicted, connell, he could face life in prison. connell? connell: wow. amazing, remarkable the damage one person can do. jonathan hunt, thank you from california. while jonathan was speaking, the markets continue to slip. looks like we're testing the lows now with all this turkey news, down 237, almost 238 on the dow. we'll be right back. to booking . with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip.

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♪ ♪ connell: so story of the day really is issues with the global economy, but a new report shows strength in the domestic economy revealing nearly two dozen more cities set to have median home prices that top the million dollar mark over the next year. the real estate expert, katrina campens, joins us to talk about this. you know, it's interesting, when we talk -- good to see you, katrina -- about million dollar homes and you say new york, san

francisco, l.a., whatever. there's a suburb of asheville, north carolina, on list, and there's a city, smaller area in the florida gulf coast on the list. so that kind of stood out to you. what does that say about our economy overall, do you think, to see these numbers? >> well, this is currently 197 cities in the united states that have a value of a million dollars or more. and 33 of them were bestowed that ohioan within the last year -- that honor within the last year, and 23 are actually going to be added to the list within the next 12 months. so most of these, as you mentioned, are affluent suburbs of financial or tech areas. but home values are increasing in these areas because there's very little supply and there's, obviously, a greater amount of demand -- sorry, go ahead? connell: any worrying signs? obviously, everything that happened last time around still in our mind. do you see some areas that are way overheating or what's your take? >> well, i think as a whole,

obviously, affordability is a huge eshoo. and values, prices are actually supposed to slow down within the next 12 months with the luxury market. however, these areas in particular are slated to continue to see growth. and so i think it's a question of supply and demand. obviously, not everybody lives in these areas, in these tech and financial hubs, can afford these homes. connell: right. >> so i think affordability is an issue because wage growth is not growing at the same degree prices are. the economy is doing e extremely well, but i think at some point these prices cannot continue to rise -- connell: one area, by the way, just because i was just there, i was doing an oil story in west texas in the permian basin last week, i couldn't believe it. homes were selling like this, way above the ask, and they've got to bring people in from all over because, to your point, they can't afford to live where they work. and i wonder if that'll be a challenge in other industries. it probably already is, right?

you can't afford to live where you work. you just don't make enough. >> it's a huge issue. and dallas, you know, is extremely expensive. there isn't enough supply. people can't find homes. and another aspect many all of this is that the empty nesters are competing against the younger generation who's trying to buy a home. so the empty nesters are trying to downsize, the millennials are finally able to afford a down payment or their parents have loaned them, but affordability is definitely a huge issue through and through. and i think, ultimately, something has to slow down. connell: we're talking about global economic jitters today, and this is a sign of anything but in our housing market. katrina, thank you very much for coming on. >> thank you for having me. connell: economic jitters in the, you know, the big board, we're feeling it in stocks. down almost 250 on the dow, 242 to the downside on a friday. turkey is the story, and we have the latest developments when we come back. if you're turning 65, you're probably learning

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connell: back here, session lows in the stock market in the united states on a friday afternoon. we've been following turkey throughout the day. i am moring president trump to return to the negotiating table. you remember the president's tweet earlier more tariffs for turkey. "barron's" publisher jack otter is here with us in studio. what is your take how big of a deal the turkey story is today? that seems to be what everybody is thing their arms around and

size and scope of this? >> sure. the markets think it's a fairly big deal. the u.s. market thinks it is down more than half a percent. european markets down more, asian markets down more. part of it is uncertainty. we don't know for sure. i can't give you a certain answer, we know for instance, certain european banks have a lot of exposure over there. their stocks are down 5%. look into history at the asian flu and other crises, seemingly small things can have a ripple effect across the global economy. connell: back when those things happened, they actually happened, you didn't think it was a big deal. sometimes it is too late then. >> there was a murder in serbia almost 100 years ago -- connell: i know. the point we're not saying the case here but that is always the way. a lot of the times is the way. >> why would i recommend to be a little bit gentle dealing with situations that will it inevitably have unforeseen consequences. they may be horrible or might

not be that bad and a year from now we forgotten all about it. connell: like at economies and size and scope what is on the table, trade war, spat, whatever you want to call with china is a bigger story. >> far bigger. connell: we're able to with stand that on day-to-day basis, this kind of rattles us a little bit. >> partly because nobody thinks the u.s. and chinese economy will collapse today, tomorrow, in 10 years whereas the turkish economy could collapse. if it did -- connell: the other would be to say it is not the biggest economy in the world. >> remember greece, for instance. we gotten past that now. you never know. some big european bank might have derivative exposure causes it to go down. which causes insurance accounts in iowa -- connell: that is true. it is summer. b, it is friday. almost 2:00 eastern time on a friday. two hours to go on the u.s. markets. europe has been closed for a while. that kind of plays with it. >> a lot of u.s. traders are in the hamptons.

you have less liquidity there. a smaller bump can cause a bigger problem. connell: when we come back next week. we'll watch this over the weekend you wonder what could take this out of the news? if there is resolution, political resolution, would seem to me from turkey's point of view, take the u.s. pastor, give i am back. i doubt they do it. >> i doubt they will. that will help. whatever happens to the pastor, turkey has serious economic problems. they need to raise interest rates. they need to drop the value of the lira even more, sell overseas. connell: quickly, 10 seconds emerging markets in general you were telling me you kind of like? >> i've been pounding the table on emerging markets for a while. they are one. cheapest asset classes as you see. don't put your life savings into it, dollar-cost averaging your way in will pay off. connell: timingwise could be a time to get in. they're all hammered. jack, thanks for coming in

today. markets rattled about i this. thanks for joining us on "cavuto: coast to coast." i'm connell mcshane filling in for neil. now time for trish regan for the next hour. trish: connell, thank you very much. we're sitting near the lows of the session on the dow, happening as president trump puts turkey on notice and doubles tariffs on steel and aluminum imports from our nato ally. a little good news, u.s. trade advisors are very close to striking a deal with mexico on automobiles. i'm trish regan. welcome, everyone, to "the intelligence report." ♪ trish: economic turmoil in turkey as the turkish lira tumbles to new lows fears that they can't pay the foreign debt. to mack maters worse, president hitting turkey with higher tariffs. he says relations between the two countries are not good. we have