they're also alleging sexual harassment by match groups chairman and ceo as well. stuart: they got screwed out of a bunch of money. there you go. what better reason than to sue. thank you very much, steve, thank you very much. >> thank you. stuart: neil cavuto back with yet another broadcast on the network. >> what? neil: all right, thank you my london school of economics oxford friend. stuart: see you later. neil: all right, buddy, you take care, we'll commiserate later. the dow up 88 point, 90 points here, if there's concern what's going on in turkey, things have dissipated a little bit. home depot might have been part of that turnaround, better-than-expected earnings and revenue, some see that as a sign that's going to propel activity here. should i stress despite the fact here that maybe it's not across the board, the fact of the matter is eight out of ten

companies reporting thus far have handily beaten the earnings estimates, beaten the revenue estimates. there you go, the read on all of this and the cross currents with republican pollster lee carter and charlie holiday and charlie gasparino. lee to you, things have stabilized in turkey without getting into the weeds here, the hope is we're over the worst, that's a bit premature. our strength is the strength, we are the default, money comes to us, what do you make of that? >> i think there is still concern and we're not sure exactly what is going to happen. by and large, though, i think americans aren't as concerned about this as, you know, the investment community very concerned. we've got to watch and see what's going to happen. the debt ratio, looking at this currency backed in u.s. dollars, and currencies are plummeting. it could have long-term impact, but also could be

self-contained. it could go two ways, it's short-term right now, we don't really know and i think we're going to have to see how this plays out in the coming weeks. neil: interesting, i don't know whether we get progress whether this turkish president releases this, but i don't know what would happen if he suddenly did. we do know right now that it's not improving the financial fortunes of turkish citizens and despite stability in the currency today, still cut in half in a little more than a month. what's going on? >> showing no signs of backing down, this is the normal with president trump, uses tariffs, economic punishments whether it's regarding the economy or not. let's be real turkey had problems long before the tariffs. neil: absolutely. and pastor brunson only became a catalyst within the last

couple of weeks. >> when the president says things aren't good with turkey right now, that does worry a lot of people. turkey is announcing a boycott on american products. neil: the electronics. >> they've tried to institute boycotts on israeli products, didn't see it through, so it's unclear how that will play out. you are right, the u.s. has the leverage here, the dollar is the strongest, most widely used currency in the world. if they decide not to be in our markets, that's not going to hurt badly. neil: charlie, just because we're the strongest economy around doesn't mean it's a birth right that we always will be, these flare-ups, and the president's response to them, more to the point about slapping tariffs or sanctions, which may be perfectly justified but it's a whole new weapon and to settle a lot of political disputes. >> i think there are three stories here, if you break it down, one story is the political story which i think

trump is doing a good job with. saying listen, have you one of our people, we want him back and i'm going to use a tariff if you're going to do something like that, if you're going to violate human rights. sounds like a pretty good thing, you got to be in favor of that. that's our power to squeeze them economically. the second thing is a concerning story which is about our banks. this is where it becomes interesting and of all people paul krugman wrote a great article over the weekend where he compared this to the asian crisis. >> whoa, did you say paul krugman wrote a great article? >> yes, i did. he compared this to the asian crisis and what they did in asia, how they got control. neil: started with the thailand currency, the baht, and there may be blowback on our banks, this is an issue for us

immediately if our banks are the lenders, hold positions that get affected by the turkey imploding. so and that's why it's not a good time to basically lower bank capital ratios as the republicans are pushing to do as a story that lydia moynihan, my producer wrote last week, this is not a good time. all the potential crises out there. then the third story, the canary in the coal mine, we saw greece a couple years ago, italy, other countries and this is the canary in the coal mine for ours to come. and, you know, i can tell you, people have been talking about u.s. debt crisis for a long time. never quite come. and one of the reasons it hasn't is we are the reserve currency. neil: in a way, it exasperates the trade tensions because it makes their currencies cheaper, so with a stronger dollar they have to pay back in more of their the yuan and more.

>> that makes our currencies more expensive plus it hurts us. neil: i think we had a ratings juggernaut going there, when you pointed out terms like ratios, that sealed the deal. thank you. >> i'm sorry to talk over your head. neil: god bless you! lee, here's what i want to know, and in all seriousness, raised a good point, but i've been through this play before, and as you said in 1997 with the asian financial crisis spared by the thailand currency collapse the year later, the russian ruble. in '94, the devaluation of the mexican peso, and it always goes beyond just that. and this is going beyond just, you know, this country, and i'm wondering where does it lead? >> you know, i think it's a really good question right now, where does it lead and how far is it going to go? i don't think we're going to say we're past it.

people are trying to say that right now. i don't think that's necessarily the case, what i'm concerned about is the area we're looking at, important country to the middle east. when you look at neighboring syria, looking a lot of our geopolitical areas right now. if you have a big crisis there, that could spill over into our relationships when you're looking at iran. neil: i wonder if we're stabbing ourselves here. one of the ideas, erdogan, the president of turkey is doing all this stuff, kick him out of nato. be careful what you wish for. >> there is a fear we're pushing turkey out of china and closer to russia. we're aware president erdogan had a phone call with putin, he could withdraw with nato, he could move away from the west. that would not be good militarily, millie, economically. >> he has so many economic problems. >> he does. >> we overestimate, they all have nuclear weapons, you can't play with them.

russia's economy is a one trick pony. who knows what their economy is. >> not a powerhouse. >> not a powerhouse. neil: like oil. >> and a matter of tourism. these are not powerhouse economic countries and hold leverage. question is are we doing the right leverage with them. i think we are on a human rights thing. i will say one thing, if you look at the one constant where there is a problem, it's debt. what's really interesting, if you look at the run-up to the financial crisis, take 2005, 2006, a lot of people or handful people talking about imminent demise of the u.s. economy. they didn't blame it on subprime mortgages but excess debt and other stuff. so usually there's a canary in the coal mine, it comes up, you might not have the exact right cause but there's a foretelling of something bad to come, i think the debt crisis. >> here's the question,

president trump setting himself up to be blamed because of the tariffs? i know that turkey had problems long before this, but this president does not love diplomacy, not shown he's willing to go to war but loves this middle of the road path, tariffs and sanctions. could the problem be solved better with diplomacy? neil: that's not the route he normally goes. >> the broad-based tariffs against our friends too, and here's the problem that president trump is going to have. if we don't have 3%+ growth -- neil: he's saying 5%. >> the deficit is going to go through the roof. neil: another two hours. [ laughter ] >> the president has filed a complaint against omarosa on this. >> a legal complaint. neil: on the breaching of confidentiality agreement. i'm not a lawyer, but i see gregg jarrett in the hall, i

haven't had a chance to ask him this. [ laughter ] >> i'm going to wonder, obviously, she is spilling the beans and there's tapes and everything else. is there a law against this sort of thing, if you sign a confidentiality agreement, and it is deemed that she has violated it, i'm told they could take the proceeds from her book sales. >> i believe that's the case. i also believe it's the case right now that omarosa's book is going to be one of the biggest gifts to the president that he's seen in a while, which i think is somewhat -- neil: i don't know about that. >> his reaction has been off the charts. neil: look what he called her. >> i know what he called her. >> he is helping her sell books. neil: that's what i think. >> the more i talk to folks about this and the more i'm talking to voters out there is when they hear this, they've been able to say that president trump is a racist. been able to make all of these claims and now the fact she's being undermined, people are saying, you know what? i don't think the claims are true. i think this could turn around and help me. neil: shelby, you don't?

>> i think he's helping her sell books. he should probably lay off the twitter and the dog comment. neil: she's going to say awful stuff about you and all that stuff, but you're the president of the united states. >> they can point out, listen, six months ago she said i was the greatest thing since sliced bread, now i'm horrible. neil: like i had to send out mass e-mails on you, but they reflect my opinion. >> they reflect her opinion, too. listen, i've tried to sell books. they're hard. getting the president to disparage you, especially the way he's doing, which are disgusting, sells books, okay? i'm good at that. selling her books. second thing, i'm not a lawyer now but i've spoken with lawyers about this, he's on legally dubious ground enforcing that confidentiality to a federal employee. you know, if you're a federal

employee. neil: to lee's point and i understand where you're coming from, the book sell is a bigger issue here. it doesn't look good, in a way it draws attention to the flaws in the administration which is probably one thing the president doesn't want to have when he disparages her in personal terms. he did guide her career in bringing her to the white house, you can't all of a sudden say just the opposite. >> he can. this is the thing. convention at wisdom does not apply to this president, when you look at the way voters respond to him, it's not the way we typically see things. >> really? he's getting low approval ratings. >> and he's winning. he's approval ratings are going up. >> we have the midterm elections going up. neil: this year? >> yeah, you can believe that? there's one thing every republican pollster talks about white suburban women saying this guy does not have the

temperament to be president and taking it out. neil: weren't they worried about that in 2016. >> he lost the popular vote. >> this is something that could boost turnout among african-americans and would hurt republicans. >> the last thing you want to do is be p-ing off. neil: hey! . >> i said p-ing off. i should have said pissing. the last thing you want to do is alienate the republican base which polls are showing are not showing up. look at the ohio election. neil: by the way, you talk about alienating people, really? >> you got to see my twitter page. i'm loved. [ laughter ] >> guys, thank you all very, very much. what is it with scott walker and wisconsin, one of the four states having a special primary. this is where democrats hope the fourth time could be the charm, when he was elected in 2010 and overwhelming push not to make him the next governor

of that state. next year imposes, have a special election in 2012, gets re-elected in 2014. now they're trying to stop him, and they think that's the charge. will it? after this.

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. neil: all right, what does a non-disclosure agreement mean? it means you can't disclose anything is. that's what the lawyers say, and after omarosa's release of a lot of material at the white house was not to be disclosed. they had something disclosed today. we are looking at suing him. blake burman with the latest on all that. reporter: it is the lawyers from the president's campaign in 2016. really the campaign itself, that is now pulling omarosa or going to try to and her team into a courtroom in new york. this is a statement that the president's campaign just put out just minutes ago saying and i, quote -- now, the latest allegation from omarosa comes from a tape she gave to cbs, a recording of a conversation with members of the president's campaign in

which they discuss the possibility of tape existing with the president, then a private citizen, using the "n" word, the recording reveals how members of the campaign were strategizing how to spin it with spokesperson katrina pierson saying the president is embarrassed for using the racial slur. couple of important notes here, first off, cbs news could not verify the tape's authenticity and no evidence that a separate tape actually exists with president trump using the racial slur. katrina pierson, within the last few minutes here, neil, put out a statement and it ends with the following saying and i quote -- so that is from katrina pierson moments ago. as for omarosa herself on cbs news this morning, she continued to defend the practice of recording

conversations. >> yes, i'm the kind of person who covers her own back, in trump world, everyone lies, everyone says one thing one day and change their story the next day. i wanted to have this type of documentation so that in the event i found myself in this position where as you said they're questioning my credibility saying they never discussed the "n" word tape, never heard the accusations, the president never heard the accusations when, in fact, this tape proves they discussed it at high levels of the trump campaign. i've been in politics for 20 years, everybody lies in politics. i worked in the clinton administration during the monica lewinsky scandal where he first said he never had relations with her and we found out that was a lie. i learned very early on in politics that this is a cut throat world and you have to be tough. 20 years in politics, and i've learned lessons. number one, you have to look out for yourself. and two, things change, relationships change. reporter: the president continued to go after omarosa this morning and did so on

twitter. this was his tweet. 12:21 at the white house, we will hear from sarah sanders at some point in the 2:00 hour. neil: all righty, blake, thank you very much. always end with the powerful stuff. i appreciate that. let's go to real clear politics co-found co-founder tom blevins, where is this going? the tit-for-tat, we can argue it's presidential, the president is angry, omarosa angry at him, she records him to make sure just in case, she'll have proof but saw the same of michael cohen, personal lawyer recording personal

conversations, this is before he was president. what is it? >> this is a lot of fire and fury signifying nothing, really. again. and i've said this before in your program, neil, we're watching the same movie over and over again, if you don't like trump, you don't like this, if you're a trump supporter, doesn't bother you and if you're in the middle. this makes independents, they don't like to see the president mud wrestling with former employees and other folks, movie stars and folks on twitter calling them names and insults. neil: but you heard him getting elected president of the united states. he was doing a lot of the similar stuff, not exactly like this. week or two right before the election. >> no, and that's the thing, anybody who is expecting trump to turn the other cheek or rise to the occasion or be the bigger person, it never happens, this is who he's been for 20 years in terms of he's always going to punch back and now that he's got this massive twitter following, always going to go out on twitter and punch back at folks, even when people

think he's punching down and punching below and shouldn't be doing it. that's how he is, that's how he got elected and running his administration. if you think it's going to change, you are in a dream world. neil: it's interesting, i was at an event the other night with a very big crowd of mixed politics and stuff, and one couple stuck in my mind and i've seen this play out a number of times, they were not big fans of the president or his personal style, the tweeting, et cetera, but had a son who recently graduated from college and his job prospects couldn't be brighter. like shooting fish in a barrel all the offers he had the environment we'vene and financial publications have echoed that this is the best year for college graduates going back to may. we've seen in a long, long time, so they kind of collectively said i like what's happening, i like what's happening to the economy and deal with this other stuff.

do you think that will be at play, the controversies around this president and his style not withstanding in the november election. >> well, sure, look, it's an ongoing thing, and again, we'll probably have 15 controversies before election they that will mirror this one and something republicans have been grappling with. it's interesting because barack obama was popular personally than his policies particularly with independents. trump is the opposite. trump is not popular with independents and republicans tolerate him because they like his policies and see the progress made on the economy, regulations, judges, all that stuff. so republicans are willing to grin and bear it, if you will because they like his policies. independents, it will come down to where they fall on this, and trump, by and large, his policies outweigh his unpopularity as far as his personal style right now. >> you are probably right.

four states having primaries of all types. wisconsin interests me the most for this reason. i think this is the fourth shot democrats have to unseat a governor who is like frankenstein. they try to get rid of him and they can't. going back to his election in 2010. the next year he moves to hit hard on unions. they call a recall election, he wins that and gets re-elected in 2014. now they think they'll have a potential candidate to take him on in 2018 and finish it. what do you think? >> i agree, scott walker is the great white whale for democrats and nationally has been a target but always seems to pull it out. republican party is strong in wisconsin because they've been doing hand-to-hand combat for the better part of ten years, republicans know how to turn them out. democrats have a strong operation in wisconsin, so we'll see. democrats are probably going to elect tony evers, state school

superintendent. he's the only one in the ballot elected statewide. and we'll see. i would not count scott walker out no matter what the polls say. he has name id, a ton of money, and the democrats, all of them are against the foxconn deal, and walker is for it. the economy is a big, big issue in wisconsin, and scott walker is going to be able to take credit for that, and see if that pulls him through one more time. neil: we shall see, tom, always fun having you, appreciate it. >> thanks, neil. neil: remember the subprime mess where you could give a mortgage to anyone with a pulse and people would back it up and collateralize it and then of course we went kablooey, guess what's back in the subprime loan business. after this. i don't know why i didn't get screened a long time ago.

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at least 20 people killed, many, many missing, buildings, cars and trucks under that bridge when all of this just went crashing down. we hope to get more updates on that as they try to dig through all the cement and rubble to get to people who still might be trapped. we'll again follow this when we get more word what's going on. the president is meeting with the secretary of state mike pompeo in just a few moments regarding the turmoil in turkey and specifically what the u.s. does in response. we've been waiting for among other things the release of that captured pastor andrew brunson but whether that would be solved by just his release, we might have progressed too far. former bush 43 deputy assistant defense secretary peter brookes on all of this. let's say they release the pastor. there are a number of other issues that are roiling turkey long before the dustup over his capture, right? >> yeah, absolutely. neil, first of all, i think

we're concerned about the fact turkey is playing footsie with russia. buying air-defense systems and there's concern about transferring our most advanced f-35 fighters to turkey because it could be an advantage to russia to understand these tremendous aircraft. there's also tensions between us and the turks over syria. longstanding concerns but especially over the kurds. remember the kurds have the ypg, which the syrian kurds have been fighting isis to help us and others to rid syria of them, but the turks look at kurds as a problem inside of turkey. there is a pkk group that operates in turkey and there is information that exists that the pkk and turkey are related. the steel and aluminum tariffs went on before the situation came to this point but recently the administration raised those

tariffs probably because of the decrease in the value of the lira which dropped about 40% since the beginning of the year. neil: even with the 5 or 6% today, it's cut in half over that period of time. having said that, i'm wondering what could turn this around. reason why i ask, forget what you think about president erdogan and turkey itself, it does have reverberating effects, a number of european countries, italy, china affected as well, because of their exposure to this. certainly the administration must recognize whatever personal feelings toward the erdogan government. this could hit us, right? >> well, the release of this pastor and some others, it's not just the pastor, others as well, would be a good step in the right direction. you know, negotiations are going on, i understand the national security adviser john bolton met with the turkish ambassador in washington

yesterday. you mentioned pompeo and the president are talking. i think the turks have to take the first step here. yeah, we don't want turkey to become an economic problem that could have global reverberations, but there are issues here and talks and negotiations on whole host of matters is important. remember, this is a nato ally of ours, we have bases in turkey. running operations against isis and syria out of turkey for quite some time. the second largest military and nato after the united states very, very important countries strategically located between the u.s. and europe. you have two very strong personalities in washington and in ankara, there are challenges ahead. neil: some are saying to hell with having a country like nato or leader in nato, kick them out. what do you say? >> that's not a good idea, i don't think, and hope we can get the issues addressed because they are an important

part. look at their location geographically, neil, this is very, very important. they were part of the cuban missile crisis because we put missiles that are aimed at the soviet union. neil: very good. >> i trade in a history book. i read it in an e-book. no, very important. remember the financial plans that were meant to keep turkey from moving and becoming a communist statement there's been a lot of time and effort put into that. so yeah, there are troubles and there are troubles in any relationship and i think we have to work at patching those up because if you look at turkey, it's very, very important country to the united states, and i hope we can move past the issues. neil: real quickly, your talk on the president. he and erdogan had a nice relationship. admired erdogan's toughness, some say it made him virtually a dictator, i don't know what the true story is there, it does show, the president who has kind words can turn you on

as well and rightfully so but also slapped sanctions on the russian government in his push to provocative ways. i'm wondering the signals he's sending on this front? >> i think he's saying we can get along but looking out for american interests. he's happy to get along with the leaders and both strong leaders. authoritarian. putin and erdogan in turkey but saying we can have a relationship but not going to allow you to eclipse american interests. that's why the president is acting and his administration is as well. neil: peter brookes, way too young to remember about -- >> i read about it, neil. in a very, very dusty history book. neil: that is true. that solved that particular crisis at the time. peter brookes. in the meantime, is home depot a home run for all retailer and a home run for consumers and a home run for this economy?

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. neil: all right, the reason why they were called subprime, they weren't prime and qualifications to get a loan, a mortgage, they were dicey and ultimately, you remember the housing meltdown. guess what's coming back and taking a peek? gerri willis with the details. >> hey, mr. cavuto, here we go again, that's what people are asking and here's what's going on. a company called lend up global and fair square financial, two companies exclusively targeting poor credit risk customers, they have mailed out roughly 35 million credit card offers during the first half of the year, says the "wall street journal" quoting a company called computa scan, and the cards carry interest rate of 20%, significantly higher than

14%, products aimed at poor credit contingent, personal loans with high rates of interest and not like the big banks have completely thrown in the towel on subprime. at the seven big large u.s. banks rose 3% in the first half of year. however, that is down from a 13% increase in the year earlier. that according to autonomous research. why? well, as we know lending to poor credit risks can result in rising loan losses ands that people like greg mcbride at bank rate financial concerned. he told me this, this morning. he said --

interestingly some of these fin tech companies are working hand in hand with big bank executives, oregon group formery of citigroup funding fair square, we'll have to see how this works out, but i have to tell you it feels eerily familiar mr. cavuto. neil: yeah, someone starts packaging these puppies, run, don't hide. >> thank you, mr. cavuto. neil: keith fitz-gerald, chief investment strategy. keith what's going on here? i want to talk about retail but want to get your thoughts on subprime loans coming back, you know the whole drill and the exposure and the potential problems, what do you think? >> i think this is extremely dangerous because it comes at a time where everybody is focused on a different narrative, neil, and i have always been concerned that it is the velocity of money, not who's got it that is the telltale

here. i think gerri is spot-on to be concerned about that. neil: what made the irony of subprime loans, very few went bad, i think it was one out of 12 that had problems but for those who packaged them and exposure to large once, it was the end of the end. that's what worries me when wall street gets crafty, repackages them, sells them separately, then you invite problems. we're not there yet but you wonder, you know? >> well, and the risks get more and more concentrated. this is not readily apparent, and wall street doesn't want to you know how concentrated that money actually is, it would scare the begeez us out of consumers. neil: the likes of macy's, nordstrom, walmart and a host of others. good kickoff with home depot, people saying this is a good

sign of things to come. who whoopy i aye. >> people buy homes on credit, they are feeding a credit machine. so home depot is great is the reflecting economic strength, reflects confidence, all things people talk about and reflects the use of debt. that is a problem. the rest of the retail world, 7, 8, 9% a year. if you can go 40 or 50% with companies that change the game, you have to weigh those options. don't get out of sorts with that one. neil: the kids at home depot, it's a different beast i understand, people spending the tax dough, is that the time of year you would see this sort thing going after the quarter, what? >> consistently, this is the time of year when you start to see it because we had a delayed spring which means people put

off the big ticket items. home depot has done a fabulous job getting people to spend more money online and faster as they push to compete with amazon. amazon is coming after him, only a matter of time before they get a wake-up call. i'll take it, i love the earnings, love the fact they knocked the leather off the ball but cannot shake the canary in the back of my head talking about subprime, about debt and changing retail like this. neil: we have had a lot of guests referring to the canary in the coal mine. i'm wondering if it's the same canary. that's a separate issue. >> that's a big one. neil: keith, thank you very much. keith fitz-gerald. we have a former bush council of economic advisers chairman worrying about something he's not blaming on this president, not blaming on prior president, he's just worried about for all the talk about the economy and the markets, you know, piling up a lot of debt. a lot. after this. when my hot water heater failed, she was pregnant,

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yeah, i got some financialbody guidance a while ago. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you. . neil: all right, you know, we have a lot of debt, and already it is impacting our economic growth because if you have to pay that debt, obviously, money going to that, that could have been going to a myriad of other uses robbing the economy of a pickup, and now of course the congressional budget office saying it is going to do that,

but again they're lucy goosey what the overall impact will be, there is no way to quantify this. the former chairman of the president bush's council of economic advisers, ed lazear. what they are saying is affecting the fed. >> i saw you this morning, i hope you're getting overtime pay for the second show. neil: i'm not even getting paid. that's a separate issue, boy, am i on it. it's interesting that this debt is growing and growing exponentially, doesn't take a lot when it go grows a trillion a year, we're dodging a bullet, your argument is not for long, right? >> that's right. if you look at either the congressional budget office's numbers or office of management and budget, the white house's numbers, everybody knows we're in trouble, not right now but a couple of decades out. when i say a couple of decades,

those numbers start to hurt us even in the short run because they put pressure on other parts of the budget, but let's talk about the long run for a moment. if you use these numbers and say where are we going to be in 20 years or so? we're talking about deficit rates of upwards of 8 to 10%. you are can't do that for a very long period of time. we've seen other countries try to do it, we saw greece try to do it. italy try to do it, and even if they act responsibly after the fact, they have this enormous debt service to deal with and that puts huge pressure on budgets and huge pressure on interest rates and on the ability to invest. so that's going to be a big problem for us in the long run. neil: you know, we're talking federal debt and state by state, i live in new jersey where right now they're trying to deal with public workers'

pensions and getting a small fraction of that money into 401(k)-type plans or defined contribution or benefit plans and greeted with a holy uproar so good luck with that. grandfathering it in, we can't do it. learned that with paul ryan when he wanted to shave the growth, the growth of medicare spending, throwing granny off a cliff. where is the will, where is the way to fix this? >> well, i'd say two things, first of all in terms of the state budgets, one of the things that we know is there's pretty strong substitution between the federal government spending and the state budget spending. so have a couple of colleagues at hoover who a few years back did a study and found for every dollar that the federal government transferred to the states, the states essentially substituted and used that money for their purposes. so it's not very easy to get control of this thing.

at the federal level and also at the state level, i think that we're going to need some kind of legislation that puts a control on spending growth. not a balanced budget amendment. the balanced budget doesn't do it, because you can have a balanced budget and be spending 50% of gdp or have a balanced budget and spend at 20% of gdp. neil: and by the way, i'm glad you mentioned that, but a balanced budget is the balanced budget for that given year. it doesn't erase the fact that you accumulated year after year after year of budget deficits which become our debt. i'm glad you specified that. go ahead. absolutely. and the other thing, of course, that it means is that if you're balancing the budget with very high expenditures, it means that you are taxing at a very high rate. we know high taxes have adverse consequences for growth in terms of capital expenditure and labor market activity. the amount that people are willing to work. all of those things are in the long run, not a good thing, now

you know, the fortunate situation that we have right now is the economy is pretty strong. we had a strong gdp number. the market is forecasting 3 to 3.5% growth for next year, that looks good. the labor market is strong. still growing jobs at a recovery pace, 100,000 above what is necessary to keep up with the population. all good things we can build on. the problem is, as you pointed out earlier, neil, it takes will to get things under control so you don't face the problems other countries have faced in the long run, that means dealing with it through legislation. i come back to that. what we need do is cap the growth, not the level but cap the growth in expenditures so we don't get these things out of control and have a crisis down the road. neil: good luck on that, my friend. both parties have to hold hands and jump off the cliff together and don't seem to show any zeal

for that. >> absolutely, i agree. neil: ed lazear, always good having you, thank you very much. >> thank you, neil. take care. neil: maybe they addressed this and other issues expected one hour from now at the white house briefing, also taking action against omarosa and violating what the white house says was an ironclad disclosure agreement. what you can't just start talking about things that were going on at the white house when you were at the white house. legally we don't know where this is going, but politically it's a grenade. more after this. 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. ... omen with hr+, her2- mbc, approved, with hormonal therapy, as an everyday treatment

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neil: all right, a lot of the pressure easing on turkey and turkey in general. it's not that all of the problems have been solved but the market there is not free falling the currency not free falling, though down north of 6% today the fact of the matter is it is still down 40 plus percent so it moved up in that interim but again, net-net it lost about half that is the currency and a little more than a month, but offsetting that of course very very good news, for home depot, which could be telegraphing some good news for earnings in the retail front with all of that nicole petallides at the new york stock exchange, hey, nicole nicole: hey, neil so we're taking a look at home depot and when you and i spoke earlier this morning, you were double duty at mornings with maria, we saw home depot to the upside, because it did beat the street and we did see it moving higher

though now, its pulled back some we're seeing a little bit of profit-taking but all 10 sectors are higher and keeping a keen eye on turkey as you noted we are seeing there's the earnings that are front and center in fact when we take a look 92% of the companies have reported thus far the s&p 500, 79% beatings on earnings per share and the year-over-year growth is following wall street in fact it's 24.8% versus that estimate which is just over 20%, 20.5 so we are seeing that it has been good news overall. we've a lot of numbers and coming out this week including many retailers, macy's, jc penney, wal-mart but big ones, it's three dow components, 15 s&p 500 companies and the trader s are focusing on earnings and pertaining tortelier a they're saying it's stopping us from breaking out on the top side instead of breaking out through the ceiling in fact they're not seeing it as some big risk to materialize.

back to you. neil: nicole thank you very very much now, turkish president has already called for a boycott of u.s.-made electronics that would even include iphones and also the high-tech devices not having a big effect here, because in the scheme of things, it's sort of like a rounding number on a rounding number but having said that it's a sign that if you're waiting for the release of this, that triggered a lot of these tariff responses on the part of the president of the united states, don't hold your breast so fox news contributor, liz peek, own super star connell mc shane and senior financial advisor, and anyone could jump in and out however you want so michelle, home depot, for the retail could save the day. the markets and the fact that ironically what ales turkey is bringing people to us as analyte to save the day. >> absolutely i think turkey in the grand scheme of thing only

represents 1% of the world gdp so it's small and if anything, neil i think it's an opportunity for investors to capture the downturns because not only are we seeing strong fundamentals here but we did see that surprise in the positive where the euros are amid gdp numbers better-than-expected for germany >> and overseas financial crisis in general and this is what this is already or turns into have many times been buying opportunities for u.s. assets a lot of comparisons have been made charlie talked about it last hour, at the article and a lot of others have compared this to the asian financial crisis in 1997 and 98. neil: before you were born. a big deal. connell: a big deal. so it was a disaster for emerging markets and their stock markets which went down like 60% but the s&p 500 in the united states which initially takes a hit when something like that happened that hit was short lived and it came right back and turned out to be a buying opportunity. so that's what history shows us time and time again when these types of overseas crisis come up

>> but it is a reminder that over the last decade we've seen a $40 trillion increase in emerging markets debt that is a lot of numbers, and the reason is because we have such low interest rates, not only in the united states but in most of the developed world's that basically investors went searching for yield, so there is this sort of issue out there of all these debts which basically are not in every case in strong hands, argentina obviously is a problem place, south africa has raised concerns, but turkey's economy is not in great shape and i think all of this geopolitical fight with trump and everything in a way is benefiting because he has someone to blame. the truth is, he is to blame. neil: wow. yeah. well all these problems are there 16-20% inflation is there, effectively milk and bread prices are doubling every week. >> it's pretty crazy but to piggyback off your point what makes you feel better about emerging markets is simply because when you look at the larger economies like china and

india they have a lot lower percentage in foreign gdp so that makes me a little bit more less concerned and actually more bullish on emerging markets in general. connell: it could be there but emerging markets. >> it's the dollar-denominated debt that's the concern for sure and not china. neil: well there are signs that china is hiccupping a little here are you worried? >> well they've had a lot of private companies go bankrupt recently and they have a real tension in china right now between trying to fight a trade war and get credit out into the market rollback the efforts to bring down debt which is where they were six months or a year ago. now, that is probably the biggest thing that's happened to china because of the trade war is that they're sort of trying to refigure what they're doing in credit markets because they've had issues with bad debt connell: a lot goes back to timing with the chinese like when we see what is perceived to be bad news out of china and some of the news hasn't been great, the growth rate is still

there, but they're losing some steam in their number of retail sales was one place to look, fixed investment was another place to look that you could say well, china's not growing as much as it was but just so we talk about kind of wheeling his way into the next day almost by shear ego, the chinese have much , they have much more available to them to string this trade war out. neil: well what worries me to your point though is a trade war in the middle of this doesn't help matters any. i raised this with california republican congressman darrel issa and this is what he had to say about it. responding tit for tat and tariffs on top of tariffs to somehow stabilize a world trading environment that might be more in your favor. it sounds like you're just playing with grenades here. >> you know, there's no question at all that there's both risk & reward. one of the challenges in any peace talks is you've got to give the other side a pathway to a win on their side. a pathway to something where

they can say this is fair. neil: well, that may be the hope , but i don't see it happening. >> well i think that is why sort of far afield. that's why i think the nafta negotiations and we're very close to signing a deal with mexico and probably canada. it's so critical. neil: it's very different breed in the case of they're not in part of this. >> well they haven't been involved in the talks because the issues have been local mexican wages and also local content for automobiles and things that really doesn't concern canada that much. i think look, trudeau needs this deal to be donald so does the new mexican president, and so does trump. he needs to show there's a point to all of this. neil: its been quite a few months right? >> december he takes office but at this point he's kind of driving the agenda. neil: certainly. michelle is it your sense that again, by the good numbers that we have and the wind at our back , all that stuff, that we will remain a haven for

investors worldwide through this type of crisis because look at turkey and these other problems and chin a and say it's a good place to be. >> i think short-term. neil: what's short-term? short-term to me is dinner. connell: exactly. >> short-term can mean anything , right? markets could go down in five seconds but i really think that yeah, short-term we do look like a safe haven and we do have extremely strong fundamentals, but i would not discount the foreign markets and i really think that this recent volatility overseas is providing opportunity, and let's talk trade, right? i think you're going to see more trade deals happen and particularly china. i mean, they're in trouble. i think ultimately they are going to come to the table. connell: i think congressman iss a is making an interesting point if i'm reading what he told you this morning correctly is he's essentially talking about off ramps which we talked about with the turkey situation, it seems rather simple short-term at least in really this past that everybody has been talking about but we don't talk about it a lot with the

chinese and we have to remember and remind ourselves that this isn't or shouldn't be a zero-sum game when it comes to trade. we buy a ton of stuff from china and there is some sort of an off ramp we've got to give them at some point and what is it? i don't know what it is we're talking about beating them that we can stand this longer than they can and that may all be true but at the end of the day how do we come up with a deal? we've got to give them something they can claim the victory the congressman is talking about. >> the problem with china is it's not also about trade. it's also about their presence in the south china sea about the stealing of intact lull capital. there are really pretty serious issues we're confronting with china. cyberattacks, at various institutions et cetera. we don't have those with turkey. turkey is an easy solution in my view get rid of the pastor and you're home free, you know the markets love that. neil: is that right? you think if he's released everything goes away? >> oh, i think so. neil: really? >> our officials met with them just a couple of three or four days ago, and that was clearly

on the table and they pointed out the united states after all had dropped charges against those thugs, the turkish military guys who beat up demonstrators, we had made gestures but it seems like turkey just doesn't want to to back down. neil: guys thank you all very very much. there are four primaries going on across the midwest, primarily wisconsin, vermont, connecticut and minnesota. wisconsin is the home of harley-davidson and the boycott the president said to go ahead and the government said i don't think that's what he meant, anyway, it's all up for grabs. we're on it after this.

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neil: all right, you know the drill if it's tuesday it must be primaries going on somewhere in the country that has been sort of like here now for almost this entire year, some big ones including in minnesota, wisconsin, vermont, connecticut, and let's get the read on that because in wisconsin, the goal is to unseat a very unpopular governor at least with the liberal union base, scott walker there, texas reporter how this is all shaping up what do you think? reporter: well i think that like you said wisconsin is going to be the real race to watch tonight, so basically, wisconsin

is going to be kind of like for president trump and we're looking at that with. >> governor: more scott walker. he's been on, he's been radioactive really since he won in 2010 and there's a bunch of democratic candidates vying for that seat, and really, you know, republicans should be killing it in the state right now. the unemployment rate is under 4 %, there's a lot of jobs they're bringing in and yes, we're seeing politics be really radioactive. neil: you know, this sets the stage for whose going to oppose him in november, right? and the guy whose most likely to win is the guy whose leading at least in polls eight or nine points but democrats really really want this win, and that scott walker is sort of the poster child for everything they dislike about republicans, right >> exactly. they've been trying to kind of kick him out for three years.

neil: it's the fourth time right >> yeah, so its been a long time coming and they haven't been able to do so and really, what we've seen before is people don't really like scott walker and yet, they haven't been motivated to come out like before in these races, except this year it's really different democrats whereas before they weren't really motivated by a candidate like hillary clinton, will be motivated to come out a lot because of their hatred for this president and on the right there's a lot of republicans that will be coming out for president trump and for scott walker but right now we're see ing this motivation from democrats in these special elections and off-year elections democratic turnout, has been pretty remarkable and that's something that a lot of republicans and sources i talk to who are trying to help republicans ahead of november are really worried about. neil: you know, i'm wondering how this whole harley-davidson is sorting out of course a big employer in the state and the president is very angry they want to ship a lot of the jobs overseas. the governor is in between

because he would like to support the president but he doesn't want to urge a boycott of one of the states biggest employers, so how is that factoring out? >> well, the president's tweet on sunday about boycotting harley-davidson puts him in a really sticky situation both governor scott walker and nickel son whose running against, he's one of the republican contenders running for the seat that democratic senator tammy baldwin has, they both came out yesterday and said that they don't support a boycott of harley-davidson even though they have been supporting the president's tariffs so far, so the timing of that really ahead of tonight's mid-term races in wisconsin really put them in an awkward situation and it could have a huge impact on what they're seeing because wisconsin harley-davidson is obviously a massive company and a lot of people own harleys scott walker is one of them so it put them in a precarious place. neil: knowing that you'd come i was looking forward to asking

this question, insight i get from a number of people that say neil don't believe the polls they say it's close they say that republicans might risk being overwhelmed by a blue wave but those are the same polls that said hillary clinton was un beatable in 2016, and that it's under counting those who are enthusiastic about the changes they seen in the economy maybe president trump himself, and that republicans will do more than just okay. what do you think of that? >> well, i totally agree with you the polls are definitely saying that democrats look like there could be not even sure about a blue wave maybe a blue ripple come november, but i think that it's hard to know. after 2016 i for sure am not one making a gamble or prediction on what will happen. it really all comes down to energy and this is something that we can look at now and the one thing that we can say for sure is that democrats have been outperforming in these off year elections in these special elections and that's something

where the energy if republicans can much that energy and their excitement to get off their butt s and go to the polls, we'll prove to be to happen, then maybe in november it will be more of an even match, but if democrats can continue being as energized as they have been, then it does look like they could really take more than the 24 house seats needed and perhaps have a blue wave. neil: yeah, you know the one thing that you have to count on is that you can't count on necessarily the strong economy. we've had one in 2014 a mid-term election that of course it was tough going for democrats at a time you would think the environment favored them with a good economy, with a good market and it would jazz these people to come out i think in a mid-term please correct me if i'm wrong, is that angry voters make a point of getting to the polls, satisfied voters not so much. >> exactly and that's something that we'll definitely see

something like in wisconsin even tonight will really kind of show ahead of november. it's anger that motivates them and a lot of times in these mid-term elections we see the vulnerable party actually be the one to overperform and do better because there's a lot of anger toward the president or people in power at that moment so it is looking like democrats kind of have the upper hand here. neil: i know what anger can do a lot of italian relatives they can be very motivated with anger >> i'm italian as well. neil: thank you very very much very good read on things, in washington d.c. all right, meanwhile, the back and forth over tariffs and whose affected positively, negatively, adam shapiro had a look earlier on about one that was positively impacted. now, one just the opposite. hey, adam. adam: hey, neil that's right there are winners and losers this morning we met them the winners now we're at a plant this is mid-continent nail the

largest producer of steel nails and fasteners in the united states. they make this stuff here. they are right now the losers because of the tariffs. as the plants operating manager explained to me they have to pay more for the steel with which they make these nails, but their competitors who make nails overseas don't pay a tariff when the finished product is brought in. it puts them at a disadvantage. they've laid off 150 people and they pes renot sure they keep the lights on they lost 70% of their business since the tariffs began. here is what mr. pratt told me. >> our raw materials under the section 232 hour raw materials are now subject to 25% tariff. we're unable to pass that increase in cost on to our customers because our primary competition is import products from overseas that it's not subject to 232 tariffs, finished goods are not subject to 232 tariffs. adam: so mid-continent now has

applied for an exemption but that still is potentially weeks or months out from the tariffs and now go 54 miles down the road to new madrid, missouri and we were there this morning at the magnitude 7 aluminum plant. now this factory shut down two years ago, a different company went bankrupt. it was emerging out of bankruptcy they were hiring people back in february but the tariffs meant they could now not only compete but make more money on the aluminum they're making and they ramped up production 375 people hired as you can see in the video. they're pouring aluminum and the first shipment went out of that plant in two years just three weeks ago. neil back to you. neil: very good reporting today, thank you adam very much. adam shapiro, all right meantime , picture this a toxic red algae threatening florida businesses and it could get worse. jeff flock is there. ndistinguis) that was awful. why are you so good at this? had a coach in high school.

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neil: well, on paper it sounded like a good ideal of the movies you want to see for a set fee every month movie pass suddenly though having some problems canceling and then uncanceling some user's accounts i don't understand thank goodness christina partsinevelos she has the latest. >> hi, neil it's true if you tried to cancel the account you may actually find out that you've been opted into the new plant. this is a big story because movie pass has over 3 million subscribers across the united states and some have been unhappy with the service including neil, your executive producer who tried to cancel his account. he's one of it seems like dozens and dozens online who received an e-mail from moviepass. listen to this and this is just the last e-mail what you're see ing on your screen is an error message for those who tried to opt out on their phone they're not able to quit the subscription service and then they also received an e-mail and the e-mail says please note if you had previously requested cancellation prior to opting in your opt-in to the new plan will

take priority and your account will not be canceled so imagine people are trying to cancel their thes they send an e-mail even two weeks ago and they're not able to get out. there's been a lot of problems with moviepass over the last little while. you've had system outages, financial troubles, the company has tried to take out an or had to take out an emergency loan this is reflected in the stock price you can see right now look at that immense drop this could be a buying opportunity but based off of a lot of analysts are saying get out while you still can. the company is operated by helio s and they had some situations too where they said we're going to increase the price to 14.95 per month subscribers hated that and they dropped it back down to 9.95 now you have a limit of three movies per month and if you want to see a new form you can only see it within the first two weeks after that. so for all of those viewers who are angry or want to learn more i know, neil tomorrow morning, you are going to be interviewing

the ceo at 7:30 a.m. eastern time on fox business because you're filling in for maria on mornings are maria. it's going to be an interesting interview because you'll have to ask all these important questions what's going on with this company. neil: do i have to ask that or just say like how are you doing? >> [laughter] you do better than that neil and you know it. neil: thank you christina very very much. >> thank you. neil: charlie gasparino is here, taking a look at twitter and charming conservatives trying to i guess? charlie: they're not doing this for reasons we should point out. jack doors it is a silicon valley liberal, some of my best friends are liberals. neil: i find that hard to believe. charlie: anyway i'm sure he's a nice guy but what we have over the last couple of months and i'm getting this from multiple sources is that twitter is reaching out to both conservative media types as well as republican lawmakers various

republican lawmakers and others and making themselves available to conservatives. if you notice the ceo, jack dors ey, recently did an interview with shawn hannity, our very own so they are launch ing a concerted effort from what i've been told, from what my sources are telling fox business network to sort of repair a somewhat bad reputational damage they have with conservatives and what is that damage? not only is silicon valley predisposed to the left side of the ledger in terms of politics but also that certain conservatives get booted off while certain liberals don't. there's this notion of shadow banning which i don't quite understand all of the nuances there but that whole thing happened more to conservatives than to the left, and that, what twitter is worried about is that will affect their user growth and if you notice twitter lost

some significant users in the last monthly tally. neil: is is that a surprise? charlie: in their quarterly earnings it caused the stock to go down significantly. the last thing they need is to basically take out a significant portion of their users because they get paid advertising rates based on users that's their whole model is based on user growth and conservatives make up a significant part of twitter's users. remember, one of the reasons why social media is so attractive is because conservatives believe that they are kicked out or kept out of most mainstream media that cnn doesn't represent their views or is actually openly hostile to them, same with msnbc same with the major networks, so conservatives make a good use of twitter and social media platforms to get their ideas out for twitter it's problemmed if you have those same conservative s and we're not talking about, just so you know

i don't consider alex jones a conservative to be honest with you. it's one thing to ban him but another thing to shadow ban certain right of center -- neil: are any left-leaping groups offended by this? charlie: it's interesting that you say that because after i reported some of this yesterday, this, you saw the twitter pickup from left wing groups that media matters for example, picked up the story so this is pretty serious. you could get a backlash from them, but i think twitter what twitter is trying to say and i know just from the conversations that executives there are having is like listen we all have opinions but our platform is agnostic and we just want to get that word out and they're doing this largely through conservative politicians, doing it to conservative media types, and hopefully that will filter on to everybody else. we should point out that one of the most frequent users of twitter is a republican, the

president of the united states. neil: i know him! charlie: did you see what he said this morning? neil: yes i did. charlie: not good stuff. neil: well you know it's a pressure-filled job. charlie: i know. neil: charlie gasparino thank you very very much. he's the best. all right meanwhile toxic algae bloom in florida hurting businesses sickening people and wildlife. jeff flock is literally in the middle of it all in fort myers, florida with more. hi, jeff. reporter: well neil we spoiled your breakfast and now i'm here to spoil your lunch it is an amazing thing and we've got a drone. our team from new york is up and maybe go ahead and fly it, frank this entire canal that you see and of course you know southwest florida has canals up the ears and many of them are clouded with what you see as a green algae and maybe i can show you in an effort to really show you

how disgusting this stuff is and if you could smell this incredible, but if i scoop this out, that is what this water looks like. it's not just on the surface it goes down deep. this is a green algae fed by the experts believe agriculture run off and look at all of the scum on "the rocks" here as the tide goes down it reveals all of this stuff. the lake releases water and when they do that all of the agricultural fertilizer feeds into this and creates this and it's not just the green stuff, neil. look at this. man, that is thick. if that was in your backyard you might be reasonably concerned about your property values and this is the half of it. literally the half of it and this is the green tide. there is also a red tide that is

out, along the coast. that is putting toxic stuff into the air and that's causing people to not be able to breathe properly, the beaches are empty, you know it's a mess down here and as i said from the air perhaps you see, it's not every place, but the places where it is, it's a mess. mr. cavuto? neil: those are drones i'm hearing, not mosquitoes certainly, right? >> well that would be the next plague to hit us, right. yeah that's a drone right there. go ahead and fly it up there, boys take it up. there you go. the bees. neil: incredible. >> electronic bees. neil: incredible. jeff? try to stay well always good see ing you my friend, thank you. >> thank you. thanks. neil: jeff flock. all right, from that to

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neil: omarosa with a tape and multiple tapes we're told of donald trump on the heels of michael cohen similarly taping conversations with donald trump what do you think of all of that >> i mean it sounds like he did some of this recording in a classified or secure setting in a skip as we say you're never supposed to say any type of device in one of those type of rooms. any time we walk in for any type of briefing we have to check our stuff at the door so that's a problem in and of itself and the fact that you'd just record the people you work for, i mean i just find that trouble some. neil: and apparently so does the white house, now saying that oma rosa violated a non- disclosure agreement saying she can't do that now legally where they take it from here i have no idea but i bet wall street editorial member writer fox news contributor lisa booth

as well. >> hi, neil. neil: lisa, legally can they go after her? >> well i guess they're trying to. i'm certainly not a lawyer here but from a pr perspective i think they hit the nail on the head with her op-ed basically saying that omarosa's book will be forgotten but her behavior won't so she might hurt herself the most here because what does she do after this point? i don't think that her book is even doing that well from what i've read and also where does she go from here from the professional standpoint in the sense you look at the way she's conducting herself in some of this she's clearly not making any friends. neil: did you read what the president said about her though? >> i would not necessarily advise him to call her that, neil. that probably was not the best thing to say. neil: i've heard worse. >> but if that is the strategy to try to go after her credibility which i don't think is that hard to do because you even have the media questioning her credibility as well.

neil: bill what do you think? >> i agree who would hire a person like this whose on record as taping her boss and so forth and to do it in the idea when i was in the white house that anyone would bring in a recording device, we are to check our blackberry at the door and to record the chief of staff in a situation room is just astounding. neil: i know protocol but michael cohen did the same thing >> the situation room is a little different as the first thing said it's a classified area. neil: but why would you do it? >> well maybe because you wanted to write a book but then again i agree with all of the dismissals of omarosa's person but the president picked her and the real scandal is not that she got fired, but she was hired. neil: but the way she prefaced it by saying well i knew and see ing what's going on around me , i'm paraphrasing here, i might want to have a taped record of this. >> well i think that she is out

for omarosa, which is why she did this in the first place. neil: but where is the loyalty here in this white house? >> well again i think it goes back to bill's point that president trump should have never hired her in the first place. neil: but it's a complicated character. >> well yeah and i would probably say the same about them i don't think there's been necessarily the best judgment in some of the individuals the president has surrounded himself with and i think general kelly has made a lot of positive changes, chief of staff and those decision-making is probably a little bit different now but originally i think president trump didn't necessarily surround himself with the best. neil: i understand that and i'm not here to disparage anyone but i am wondering you mentioned from your white house experience where you had to bring your phones in but i thought in the situation room which is a little bit different than being in the front hallway that a long terms or something would go off. >> i was surprised they don't have the capacity to know that you're violating the policy and so forth which is interesting.

i always assumed that they had some way to detect it if you weren't there but i mean a classified setting is a very -- neil: like in all the james bond movies there is a device. >> well when you travel with the president again you open with this idea of the secure location. the staff secretary has a hotel room and he has these blue tarps all over and i used to do a lot of adjustments to speeches under this blue tarp and it's designed to keep people from, it's just a very very serious thing and if you can't guarantee the security of a skif, what can you guarantee? >> well they should probably look at making changes to that you'd think. >> i would think there will be changes now. it is striking to me that i think president trump has picked some enormously talented people, like larry kudlow, john bolton, mike pompeo even scott pruitt for what he did. i think he's some extraordinary picks but he's also had a lot of

people that couldn't put in a year. neil: like the guy said get this out there. do you think the fact that the presidentpair aged jeff sessions whether the guy deserves it or not and the former secretary of state and does so, so publicly even mitch mcconnell and all justified frustration i'm not saying they say well you're not going to be loyal to me mr. president, when i get the opportunity, i'm going to return the favor. >> well i think it would impact even just the hiring process in the sense that you might have some really talented smart individuals that would be hesitant to potentially go into this administration looking at those examples that to bill's point because i criticized some of people he surrounded himself with, he also surrounded himself with a lot of great people. neil: absolutely. >> but i think this is an exercise in evidence that it is important who you surround yourself with. neil: but a lot of those people,

talking about the president here are you really going to be surprised if and when given the opportunity they don't return the favor? >> well i think this situation is a little different from a pr perspective it is advantageous for the white house to go out and look at the way she mistreated the white house even with her wedding photos and things of that nature so it is add vantage us i think, for the white house to get out there and to discredit her and her credibility which i don't think is that hard to do because she didn't have much to begin with. neil: they got to do something now, right? >> i agree with the larger point the president has made some pretend us picks but i don't know of the management book that says you trash your employees like jeff sessions in public because that's going to get the best out of them and also look a lot of people are bidding their time in the white house and then when they're free of the white house they are free to write whatever they want in our case she seems to have a non -disclosure agreement. neil: did you have something like that? >> no i didn't have anything and a lot of criticism in the

bush administration but my colleagues were fairly loyal to each other and to the president. there was some exceptions there's always someone in there, so i do agree with you. neil: but you're not wired that way. but some people are. >> yeah, but look you pay a big price for it. the president can fight back now and could have had this but the information whether it's true or not is now out there and they have to deal with it. it's a tough, you know again, he hired her. the scandal is not she got fired the scandal is that she ever had an important job in the white house. >> real quick, i also think president trump clearly came from a different world entering into politics than most politicians so it's not necessarily standard operating procedure on campaign, maybe it will be moving forward. neil: very good point. it's very common. >> but business coming from the media world this world of celebrity i think is completely different scenario and that was the lens in which she was looking from so i don't necessarily blame him from making sign an nda. neil: could you say that a

little louder so i can record it >> [laughter] neil: guys thank you very very much. all right, home depot might save the day with these markets when all is said and done the frustration over taped conversations and over turkey and all of that. how that could happen and what it means, 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.

neil: all right we still got another roughly two hours of trading to go but it's looking like key component home depot could save the day as it came in with far better-than-expected earnings and revenues, could that signal a consumer resurgence here? just when people were fearing maybe the consumers tapped out might be a sort of a unique situation, might not be, own america.com ceo greg rand, on what he sees going on what do you think greg? >> i think that it's more optimism the housing market and home depot thrive when people feel like they can afford to paint the second floor of their house or buy a new fridge and so i see it i don't sense anything in all of our interactions out there with home buyers, sellers, investors and it makes sense that folks that are living at homes if they feel good about their job situation they feel good about the money in the bank that's starting to accumulate that they would do things to make their lifestyle a little nicer by improving their house. neil: is it an indictment on

what's going on with housing now because they can't or won't buy a new home they're fixing up the one they are already in? >> i don't think so i think that's totally wrong actually. people that are concerned that the affordability of the housing market is a sign of something bad in the housing market are missing the point. like you wouldn't say that the stock market you wouldn't say in the next segment the markets are up so affordability in the stock market is down, right? the housing market is thin on inventory, there's not enough for sale for the demands and so the inventory gets real light. prices are going up people are staying put, people are also buying and it doesn't have, there's to seize upon the idea that people might be staying quick if they can't afford the next house there isn't enough inventory it's kind of like looking for some needle of negativity in this heystack of positive it going on out there. the connection is housing hot, home improvement is hot a lot of retail, the right kind of retail is hot, travel is hot because people are feeling good they could afford to do more things.

neil: i'm wondering though, greg , what housing is or home depot notwithstanding is looking like right now and you talk about a tight supply and a lot of people don't want to leave their home to give up their home or they feel like if they wait they can get more for their homes. what's really happening? >> there's a lot of competition for homes and people that can move up are. neil i don't see the evidence in the field of people that are feeling trapped. maybe they bid on a house they can't get the house. i remember back we talked back in the 2000s when things got hot they got too hot last time and i understand people might have concern now, that if it drives up too far but i actually feel pretty good for this reason. when the markets behaving normal ly, and it gets the demand outstrip supply the prices get driven up as a result of that until the buyer starts saying like enough is enough i'm not going to keep paying escalated prices, and so when you see a crest in prices what you're going to see before that is home sales dropping because the demand finally says i'm not

going any further. that's a market swinging into something a little bit more even which i think is what we need the prices have been a little bit too hot for a little bit too long. i don't see anything like the housing crisis because the mortgage component is not in place so i'm looking forward to seeing home sales continue to slide a little bit compared to last year meaning the number of houses that sell and then the sellers will be more reasonable on their prices you'll see home prices level off, and that's kind of a supply and demand equation in a healthy market. neil: so real quickly on housing for the remainder of this year, still stable? >> stable, i think you'll see home prices go up at a rate that is less than last year and you'll see people's hair go on fire because they will say oh, no home prices are plummeting because they went up less than they did last december so this is healthy right now and good. neil: okay, and no one's hair is on fire. thank you very very much, good seeing you again, greg. all right, the white house

briefing is coming up soon. obviously they're going to be addressing this omarosa stuff and whether they can go after her on a legal basis for violat ing a non-disclosure agreement it's in the eye of the beholder depending on which lawyer you're beholding after this.

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♪ >> up about 137 points. awaiting white house briefing. trish regan taking us through that.

home depot is driving better-than-expected earnings. eight out of 10 companies handily beating estimates out there. the pace of that earnings growth year-over-year is five percentage points higher than folks thought it would be. hey, trish. trish: not too shabby at all, neil. dow is up 130 points, triple digits as investors focus on our strong economy right here, right now. news we're very close to striking a trade deal with mexico. how about that? just a short while from now we'll expect to hear from the white oust on trade, on the economy and a whole lot more. i'm trish regan. welcome, everyone, to "the intelligence report." ♪ trish: also breaking today, china's economy showing signs of cooling as the country gears up for all-out trade war with the united states. i have said it many