above 26-k. stuart: most unusual message. i have never seen anything quite like it before. yet this is the trump press den sift the dow is up 210 points. ashley: yes. stuart: now we're up 267 points. my time is up. you neil, it's a yours. neil: the united states, mexico trade agreement is on. canada can join if it wants to. the president hopes it will. what the mexicans conceded, wht we might have conceded to make it all happen. going through the details we'll do in just a second here as stuart indicated. markets like what they see. not that this will be vital to u.s. interests. don't want to minimize it. will it grease the skids for canada? the china, trade impediments in this country and in it president's way here and will it get others to come to the table. again, one of the things we are

hearing about this deal. it will lift wages, or the president hopes on both sides of the border in mexico and for american auto workers. more of those autos, for example, will have north american parts not shipped out overseas and or made overseas. that is deemed a big win for the president, in the push to make sure the deals are more friendly to the u.s. not at the expense in this case of the mexicans. remember this was cobbled together under the president leadership. the new president who takes office in december, kept fully briefed on this, likes what he sees. the read what was cobbleed together what made the deal come together so quickly, edward lawrence at the white house. reporter: this is five weeks in the making. what the president can show that the president can tout that the tariffs he imposed really made a difference n the agreement, we understand in addition to local parts, steel, aluminum will have to be named or gotten into the

process of a car from local steel and aluminum ours will be used in this. 75% of a car we understand would have to be made in north america or at least in mexico or the u.s. in order to fall under this agreement here. the president also radically changing the name of the agreement here. listen to what he said, what he talks about nafta. listen. >> they used to call it nafta. we'll call it the united states-mexico trade agreement. we'll get rid of the name nafta. has a bad connotation because the united states was hurt very badly by nafta for many years. now it is a really good deal for both countries and we look very much forward to it. reporter: this is something that i've been reporting on your show, that the president's strategy, the u.s. strategy from sources that i've been hearing, work out a deal with mexico, take it to canada, say if you want to sign on great, if you don't we can do a bilateral deal with the two of them. you heard the president saying they will start negotiations

with canada almost right away. now to your point about the amount of money that worker is going to make, the mexicans did come up to $16 an hour for a portion of the car. i don't have the exact percentage we're hearing. 40% of the car. i do have to confirm that that is what it was going into this. they could get 40% of the car making by workers making $16 an hour. the average assembly worker makes $6 an hour. it appears to be a bilateral deal that could be done or signed by the end of november. there is a 90- day period where congress has to be notified that period or that process is starting on friday. neil? neil: edward lawrence, thank you very, very much. you will hear a lot as edward outlined, notion of making more automobiles in north america. nafta, the original north american trade agreement under

president clinton would benefit this hemisphere, north america. there would be more cars made in this hemisphere, in north america and that it would come favoring us over europe. many people said including then candidate donald trump didn't work out that way. a lot of american workers were hurt. cheaper labor found home in places like mexico. be that as it may, many quibble with that notion, the idea that big automakers like gm and ford are advancing on this on the belief this will get them moving forward is a sign saying the knee-jerk reaction tends to be positive. let's getted read from market watcher deirdre bolton and scott shellady. we're told it will include better wages for mexican workers, better wages down the road for american workers, keeping a lot of north american production north american. the dirty little secret increasingly over the years was

not the case. will that be good enough going forward to impress skeptics of those who say the president is going too far? >> well, that is certainly a big peas of the puzzle, neil. that is the reason, cheaper labor, why so much car manufacturing had gone to mexico, basically mexican factories didn't have to pay workers as much and production costs were lower. with that equalibrium, i think that is clearly a positive. the one thing i have not yet heard about was the fact that the u.s. wanted this kind of sunset clause which is just the right to relook at any of these bilateral or trilateral, now seems like we're only talking about bilateral trade agreements every five years. that is something in the past both canada, mexico, really not wanted to be part of any agreement. i know, look, nafta is over, right? this is exactly what president trump talked about on the campaign trail. i don't want multiliteral.

i want bilateral. he thought it puts u.s. in better place to negotiate. they had a lot of pessimism that u.s., mexico, would find a agreement here it is. dow is up 250 points. we opened strong. nasdaq up to 8,000. we had a strong open but this is certainly giving a shot in the arm. seems as if investors really like what they're hearing. maybe this is becoming a predictable pattern, this idea of bilateral, instead of multilateral, neil. neil: whatever the details ultimately are, jack, a lot of trade sensitive stocks, boeing, caterpillar, united technologies, dupont, are those would have something to say and their future could be on the line depending on progress in trade. not that they're necessarily mexico dependent, they're certainly china dependent. i can only imagine they're jumping on the notion that a deal with china looks a little bit better. what do you make of that? >> yeah, i think that's what it

is. i think investors are looking really at china, given that trade deficit we have with mexico is about 63 billion, which really you ever dwarfed by the 4 or 500 billion-dollar deficit we have with china. we haven't really heard anything to suggest we made much progress. president trump himself in the recent telecast kind of downplayed any progress with china. so we'll have to see where that goes. my sense is a lot of these tariffs are just tactics, they're not just long-term policy so i do think eventually they will come around and be resolved quickly before it hurt hads our economy overall and i think investors share that view. neil: scott, do you share that view? >> just like a dog is not just for christmas, tariffs are not forever either. this is absolutely something to negotiate with. think about if this was, we were announcing a chinese deal today, what the market would have done with feeling you're getting what

happened in mexico? it's a good old-fashioned stare-down on the playground. just depend how much political goodwill capital, donald trump has versus all the other countries, europe, china how well their economies are doing while this is all taking place. that will be the end of it. it will be more than a day, less than forever, sooner things get done more market likes it. the longer it takes the worst the market will like it. neil: deirdre, we have a deal with mexico. we have construct of dole europeans. we never had that spelled out exactly what we're getting. we know things warmed up considerably, and the freeze before the european trade representative came and let's assume something is in the works there, this trade sort of put on the market, not that it was much of one is going away? >> i think what it's a showing is that the u.s. certainly has more leverage right now than it did even an hour ago right? i heard from one of our

colleagues who was in the room saying that essentially if canada now wants to negotiate fairly, great, but president trump was overheard saying if not, well, they're just going to put tariffs on canadian cars. i think the fact that the u.s. and mexico have come together does definitely give us more leverage as far as canada goes, neil. neil: jack, we're learning the white house is going to submit this trade deal to, with mexico to congress on friday. now i guess they have a 90- day period to review and consider and ultimately approve sometime in november. it would obviously be after the midterms. but what do you make of that? >> yeah. i think that is part of the process. the president does have a lot of latitude on trade but ultimately if they do want to sign an agreements, they need congress to go along. i don't see any reason why congress would object to this bilateral agreement. i do agree with deirdre, i think

this does improve our chances of now signing a deal with canada. whether it is part of this trilateral deal or just a separate bilateral deal given types of trade it is a little different. it is more energy-related, less food. i think we could, we could see a deal with canada announced pretty quickly. neil: scott, the mood in london, they were sort of critical of this president when he came on board and sort of a bull in a china shop approach to this, but if it is working for him, they see these deals being cobbled together with the south koreans and mexicans in general, with european commission, is there, we better get on board mentality building here or what? >> you know that's interesting, if you look at the british media like a lot of media in the states you wouldn't get that media at all. there is always been a feeling we better get on board ever since he was elected. go to the every man, if i'm in a

elevator or in a cab, nine out of 10 brits tell you they wish they had somebody running their country like donald trump runs his country. forget about his odd behavior at times. the policies he is putting in place, they're jealous of. they wish somebody would do the same thing here. europeans economies are struggling, struggling against the u.s. doing so well now. it looks like the city on the signing hill right now and think want a piece of that. neil: yeah. money makes strange bedfellows. guys, thank you all very much. speaking of which we're hearing from the prime minister of canada. prime minister trudeau, of canada spoke with a outgoing mexican president pena nieto, he talked about reaching a accord for all three parties soon. this deal is between the united states and mexico, which would put the pressure on prime minister of canada to do something with the united states t was donald trump's way of saying, your move.

after this.

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>> thanks for having me on, neil. thank you for not mentioning the loser. yeah. i was wondering too, all this pomp and page entry, getting ready for the big event, is it tough? >> no, really it is what incoming elected president deserves and it's sparked a degree of enthusiasm that we've seldom seen. neil: that was 11 days before the inauguration of barack obama, the man who defeated john mccain for the presidency. yet they develop ad fast friendship, even in the senate, even as they were competing against one another. a lot of people are going back and going through tapes, myself included, his appearances on this show, so many other shows. he was not afraid to take on any and all in the media and have his way to address and any all questions. one thing i quickly discovered about the senator there were no limits what you could discuss. there were no, let's not goat

too this or into that, ever, ever. hillary vaughn in phoenix on the funeral plains being made for the senator. hillary? reporter: neil, flags flying half-staff at the capitol. democrats, republicans, americans, mourning the loss of a great american hero. john mccain will lie in state at the state capitol hundred wednesday where fellow arizonians get a chance to pay respects to the senator. followed by a ceremony at north phoenix baptist church. he will be transferred to the east coast where his colleagues and friends in the senate and in washington, d.c. will get a chance to pay their respects. he will lie in state on friday at the u.s., at the u.s. capitol. saturday he honored at at memorial service at washington national cathedral. finally laid to rest on sunday at u.s. naval academy. his service and sacrifice for this country began six decades ago at the naval academy.

that is where his final journey will end. the question will be who will fill mccain's seat in the short term. that decision is up to arizona governor doug ducey. he will appoint a republican to fill the seat in the short term. there will be a special election in 2020. voters decide who will finish out the remainder of mccain's term until 2022. neil: hillary vaughn, thank you. this decision, of what he made of mccain's passing. whether he follows up on a tweet >> so congratulations to the people of mexico. great job. thank you very much, everybody. [shouting questions] >> let's go. let's go! >> thank you.

neil: all right. sounds like a cacophony for good reason, they were trying to ask the president to say something about john mccain. he refused. he tweeted out his sympathies over the weekend. many made a big hullabaloo that the flags were half-staff and raised to full staff afterward. jan brewer, former governor of arizona, what do you think? >> well, arizona is weeping in great sorrow for senator mccain. as is the country and the world, and i think that we need to keep on the forefront, what this represents to our country, what a loss this has been to our country. senator mccain was a patriotic hero. somebody that had courage and strength and, the tribute that are being paid to him are well

earned. i don't think he really would have cared being the type of guy that i knew, but, you know, it is just, an enormous loss to our country. neil: so it doesn't bother you one way or the other, many in the media pounced, president should have put out a formal white house statement, he didn't, what do you think? >> well, i, i know that he put out a tweet. you know, which was, was nice. i don't know why he didn't do more or maybe add a few more consoling words to it, other than we know that there is a bad relationship between the president of the united states and senator mccain and, if that was his way of showing his respect, i guess that is what he is going to do. i'm not going to get into that mess. i think, you know, i know i'm hurting. i know the world is hurting. and i would like to just kind of

stay on a positive note. neil: well it is what it is, to your point, governor. it doesn't do much good going back and forth on all that but i do want to get your thought who replaces the senator? there is a thought that it could be someone, making after donald trump or someone like a john mccain. cindy mccain is mentioned to fill the seat in the interim? what do you think of the type of person the governor should be picking to replace the senator in the interim? >> well, i would hope he would find somebody of the same quality, which is probably impossible of senator mccain. it is going to be an awesome responsibility for governor ducey to determine which direction he wants to go. is he looking towards a placeholder to run for re-election or someone in there to make a mark and run for re-election? there is a lot of things to look into in regards to that. of course he is running, he is

running for election this tuesday in the primary here. so he has an election on board too. whomever elected or appoints will probably be looking upon with serious eyes how people will be supporting him. neil: now i guess -- >> difficult, hard. neil: people are saying, governor, as this should not be an interim that keeps this seat in republican control to 2020 but that it, it should be up for grabs this november. there are a lot of mechanics and byzantine rules in your state how that would happen, but what do you think of that? >> well, i think it is the right thing. this is what the law says. that is the way the people of arizona determined it should be done because of the untimely, time of his death, it was too late to run a special election. so whoever the governor appoints

will, will fulfill the remainder of senator mccain's seat which is another two years. and then he would be up for election, whomever. neil: end of story. it is not something that would force an election, for example, in november? >> no. no. neil: okay. >> no. neil: governor, thank you very, very much. very difficult time for you. i know how close you were to the senator, how highly he spoke of you. thank you very much for taking the time. >> i love him and i will miss him. neil: governor, thank you very, very much. jan brewer of arizona. as the governor was speaking we're getting a few more details coming out about this deal cobbled together on the part of ourselves and the mexicans, a trade agreement. that has been sort of a reworked nafta. in fact a u.s.-mexican trade agreement that canadian prime minister justin trudeau just addressed with his mexican counterpart enrique pepena nieto, that the leaders

discussed on going negotiation with the north american free trade agreement and commitment to reach a successful conclusion for all three parties. there is just one problem. for now it is just two parties. and it's prime minister trudeau who is the odd man out. more after this.

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>> "cavuto: coast to coast." i'm nicole petallides live on floor of new york stock exchange. we have new highs for s&p, nasdaq, russell, all at record highs, and dow jones industrial average not at a high, still holding on to stellar gains up over one full percentage point, gaining 270 points. why the optimism on wall street? well today's news, you just heard neil cavuto speaking about it, this is about the u.s.-mexico trade agreement underway. it is a reworked nafta. president trump said i will be speaking with prime minister trudeau to incorporate canada. we're taking a look at tesla. tesla has been beaten down after

the august 7 elon musk said he secured funding to go private. the stock was at $179 -- $379 that day. it is 316 now. as of friday he abandoned the plan to take it private. so we're seeing a sell off today. left analysts and investors questioning a lot about the company, about elon musk, who will take the helm. some people are still very positive on tesla. such as baird. they have 411 price target. jpmorgan on the other hand has 195-dollar target. they are focused on cars but batterier and focused in china and may look at chinese-backed banks for that. back to you. neil: nicole, before i get to the next guest, i want to show you the scene in front of the white house. a hullabaloo with the flag over

the white house at full staff. flags remain half-staff up to five days, sometimes longer. specifically up for a member of congress, two days is enough. then they can return it to full staff. nevertheless a lot of people are reading into this the fact that this was inspired by the president who did not issue a white house statement. in facted one one honoring john mccain in his life and his contributions. i should stress the president did extend a tweet offering his sympathies and prayers for the mccain family. but others said he has been very reluctant to go much beyond that. that of course the brouhaha the president didn't want jock mccain at funeral. nor will the president be at funeral. the fact barack obama and george bush, jr., are going to be speaking at that funeral, again, just fueled this tension that

existed in life between the two men and now in death. we'll keep you posted on that. also keeping you posted on progress on trade. a big win for the president, we are told that could translate into an agreement not only very shortly, formally with the mexicans, set ising stage for one with the canadians. fallout for all of this which the market seemed to like in and out of session highs, with managing editor katie freitas. what do you think how the markets are responding? they think it removed big impediment, big uncertain think and they love it. don't need details. what do you think. >> there has been a cloud of uncertainty, neil seems like for a while, what is going to happen with nafta. there was so much we didn't know. there was so much tension between the president and mexico and canada. to see something substantial coming out of this, i'm not surprised to see markets reacting extremely postively to seeing definitive news, kind of

funny press conference with him on speaker phone in the oval office, nice to know things are moving toward a conclusion. neil: i think for a few milliseconds will have attention shifted off last week's developments with some of the president's former top officials. a lot of people are using the "i" word, impeachment. that is getting ahead of themselves. there is another i word that comes up, republicans fear investigations, that if democrats take the house, there could be up to 100 of them. "axios" reported on just a few possibilities over the president's tax returns. dealings with russia. james comey firing. u.s. attorney. family ban. u.s. separation policy. this could be just, non-stop drama. >> even jared kushner comes up in this. the list, seemingly endless. i do think republicans should be prepared for worst case scenarios. it would not be smart on their part not to be but at the same

time just seems like congress's new favorite thing is these endless, year-long investigations and every single committee. it never end. i would be concerned that if democrats do take back control of the house in the midterms, that that is going to become the never-ending story. how can this white house function if they have a democratic house that is doing, neil, as we said, could be how many difficult investigations on five million different things? will trump be able to accomplish his agenda if that is happening. neil: they wouldn't be impeachment proceedings. they could come back and say, well, we never talked impeachment. we're just looking at investigations. how will this all go down? >> well i think if they do end upbringing impeachment in any sort of serious fashion that would be a huge blow to democrats. i don't think that would play out well for anyone involved. but of course it really depends on the midterms f republicans maintain control of the house, they won't have to worry about all the investigations.

if democrats do take over, then we are in for a wild ride. i'm sure some very aggressive tweeting from all sides. neil: from all sides. they all take it up. always good talking to you, thank you very much, my friend. >> thanks. neil: well the president says, go ahead and even start the impeachment process. the markets will become unhinged. i want you to hear from ronald reagan's budget director who says the only thing unhinge haded is the president and his policies. that will undo these markets. he is next. as moms, we send our kids out into the world, full of hope. and we don't want something like meningitis b getting in their way. meningococcal group b disease, or meningitis b, is real. bexsero is a vaccine to help prevent meningitis b in 10-25 year olds. even if meningitis b is uncommon, that's not a chance we're willing to take. meningitis b is different from the meningitis most teens were probably vaccinated against when younger. we're getting the word out against meningitis b.

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stop the trade war. former reagan budget david stockman. what do you think of in. >> this is pr stunt. mexican workers raised to $16 an hour. spend lobbyists time and consultants time, exactly 45% of the content of a 5,000-pound with 30,000 parts was made in mexico or the united states. and whether, over $16 an hour and whether 75% was made in mexico or the united states. neil: that is the idea behind this, right? we have more north american control. >> this isn't going to be, this isn't maga. this will not do a lot for american economy or workers. in fact nafta was never a problem. the whole thing is a phony issue. the big problem with trump he has a deficit totally out of control, 10 years into a recovery, slamming up against -- neil: you're not talking about

trade deficit. talking about the budget deficit? >> talking about the budget deficit. slamming up against the fed it finally deciding to have real interest rates and shrink the enormous balance sheets. neil: what do you think of the jawboning the federal reserves. >> doing right thing. he is a low interest man. how can you have negative interest rates real terms below zero 10 years running? that is what we have. fuel for massive speculation on wall street. this is the greatest fake ball in history. neil: making a lost people rich. the president argues you go after them and let's say after pushing investigations going to talk impeachment the market will improceed. what do you think of that in. >> i think that's right. it will implode anyway. we're heading for the biggest bloodbath in politics during next two years you've ever seen. most of washington wants to run the guy out of town. this thing is getting worse. think will -- neil: in town they have been making money hand over fist,

most americans investors? >> speculators have been making money hand over fist. if you want to stay in a market at these extreme peak levels. neil: average americans, you could say, in their funds and 401(k)s they're looking hey, i don't care who is doing it, i don't like it. >> that is what they said the year 2000. neil: to be fair, you've been saying for some time. what will be the magic point? >> neil, these cycles, last seven, eight, nine years, they're not based on fundamentals, real economic prosperity growth, free market efficiency and production. this is fed-fueled, central bank-fueled and they're at the end of the road. neil: are you surprised this fed-fueled rally continues even with the fed raising rates? >> no, i'm not surprised because they're just beginning to do what's going to crunch, and that is drain cash out of wall street as they -- neil: but it is not happening. >> it is beginning to happen. neil: when? tell me exactly when so i can

get out? >> i don't know exactly when the peak will be achieved. but when you have a fed that is going to be draining the bond market by 600 billion a year, you have a treasury trying to borrow 1.2 trillion or more, you're asking for a collision that is going to rock the whole system. this isn't stable this is pure speculation. this is the chart monkeys trying to peg or tag as they did today, 26,000 on the dow, 8,000 on the nasdaq. neil: even at these levels, i know technicians can be all over the map, even based on trailing earnings this is not extremely rich market right now. given the lower taxes, you know, cheaper still. in other words it is nothing like the boom you alluded to? >> they're absolutely like the boom i referred to. the market today at 2hundred, 2900 -- neil: s&p 500. >> s&p 500, is trading 25 times trailing earnings when you adjust for the one-time tax

increase. okay. neil: but we have to keep numbers to numbers. you could say it is around 18 right now. it is a little above the historical average? >> no, it isn't -- neil: you can't e x-out tax increase. >> it is 24 even without the tax. neil: that is just wrong. >> no, trailing for 12 months june 30th, $123 s&p share. neil: you're, we argue this, you're saying it is still a rich market. we've got to be careful. what would happen? what would be the trigger event? >> it is hard to say but i think democrats winning the house which increasingly likely. neil: really? >> you will have 21 standing select committees holding investigations on everything related to trump from now -- neil: you could argue that keeps everything locked in place, right? >> no, it doesn't. because you have a fiscal situation that section exploding. how are they going to make agreements to raise the debt ceiling? they will have to borrow

3 trillion more between now and the next presidential election. neil: they always find a way. i don't like the way they find it. you and i talked about this republicans democrats always find a way. you argue we're running out of magic tricks, right? >> we're running out of runway or rationality. you can't be borrowing this much money when central banks of the world made a pivot to qt to, tights, finally shrinking balance sheets of after 20 years of egregious expansion. you can't just think none of this will -- >> where is the most profound bubble to you? >> i think the most profound bubble is the nasdaq at 8,000, okay? remember, people said last time in the year 2000 when the nasdaq 100 was at 47, i remember it well, march 27, 2000, don't worry we're 13% above fifth day moving averages. 13 days later down to 3200. neil: that was rally bullet on companies that didn't have

earnings. you could make the argument now a lot more technology names that dominate nasdaq have a much better financial footing than their counterparts did the last bull market? >> i don't know. russell 2000 set a record today. 1/3 of the russell companies don't have any earnings. neil: what are you invested in. >> staying out of the bond market. stay out of the stock market. keep your powder dry. build up cash. neil: what is powder dry? putting money under a mattress? >> put it in two-year treasurys. one year treasurys. 90 day bills. neil: you wouldn't to out much further. >> you wouldn't. you wouldn't. this is a hot house market. this is -- neil: whose fault is it? you're not just blaming president trump. you're blaming everybody. >> blaming what we've been doing. this market is up 75% since earns i'm not talking about the bottom, peak mid 2007. 75%. take inflation out. 55%. real gain on s&p 500. now let's compare that to median

real family income. up 1% in 11 years. let's compare that to industrial production. 11 years 3% not a year. 3% total for 11 years. let's compare it to the amount of labor being used in the american company, hours, real physical hours up 5%. neil: these upticks you've seen in all of the above, albeit slow and light are not encouraging? >> no. they're only slight upticks from a dip we had in 2016 is and 2017 when we had a kind of a mini recession in the world because of commodity prices collapsing and trade and industrial production. now we have a world looking at china which is a house of cards, europe, which is sputtering again. the united states, 10 years into recovery. nine months from the longest one in history. neil: we're leader of the world. >> this is crazy is. this is utterly crazy. neil: all right. put you down iffy how this thing is all going. david stockman, always a pleasure. i like you to hear all points of view on this sort of thing, whether you're a bull, hear each

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♪ neil: you know, funny, had a chance to talk to a lot of guests talking about their memories of john mccain.

mine his sense of humor. a lot remember his character could sake zingers and zing back. she had the opportunity to be with the family a number of times before the good senator's passing. >> thanks for having me. neil: how are they doing then? dealing with the inevitable. like something you said, you know it is coming. down make it any less painful when it comes. i don't think it really matters in the moment when it does come. cindy mccain has been extraordinary, has been by his side, every minute of every day. she has been his caregiver and his advocate, his protector. this giant of a man and she has been just extraordinarily. so it is a tribute to the family. he wanted the opportunity to see people he loved and say good-bye and talk to them. he was very cognizant when i was

there. like everybody with terminal illness, you have good days and bad days. he was cognizant of what was going on in washington. he was frustrated not being able to be in the arena to make us better t was a privilege of my life to have handful of opportunities to be out there with them and share those moments with somebody i really loved. neil: now you mentioned cindy mccain. she mentioned as interim replacement for her husband, any thoughts on that what we get from this process? >> it is still too raw, neil. i can't think about it. and i imagine the family can't think about it at the moment. there will be plenty of time for politics on this i know governor ducey spent time with cindy and joinings, the decision he has to make. i have confidence with doug ducey to do the right thing. neil: when both talked to each other, irony in his passing the

very day years later his good friend of all people, ted kennedy, passed same exact illness. i wonder what happened to those days, where it was not necessarily my way or the highway where we could both share the highway? >> it was incredible, one of the significant pieces legislation i worked on when i was in the white house, the mccain-kennedy immigration reform bill. got to work closely with both of them. i think chuck schumer is doing a terrific thing introducing a resolution to rename the senate building. when i think of john mccain, i think of do something impossibly big. you would hope to see mitch mcconnell and chuck schumer, pelosi and ryan, maybe we do something, everything that we think possible to get done in immigration in john's legacy. he was not afraid of taking on i belive possible things. even if you fell short you made progress. so that is the i don't know mccain that i knew, i admired, i loved. you would hope in washington,

they would take this opportunity to set aside some of the differences and really accomplish something. neil: now, i think you spoke elegantly about that, fran, the times i come to washington, you know the city far better than i, i always think it is like professional wrestling. they come at each other, i see democrats and republicans slapping each other on the back, before the microphone, he is an awful human being, on and on they go. it is like silly theatrics at their core, they are decent human, share stories of kids and grandkids. what is wrong with that? ronald reagan built a presidency on it. jfk was pretty good at it. what happened? >> and mccain, he was not just a mentor to people like me, right? i can remember traveling with mccain to munich security conference and he would take new members of the house and senate republican and democrat with him because he wanted to spark their passion for national security issues that he cared so deeply b

he wanted them to get to know one another, travel together, have meals together. would take about his early political life. would share stories with them. he believed that is the way you built that sense of comradery. you could disagree without being disagreeable. only if you help each other you can get something done. that where you worry about being lost. i share your sense. i hope john's life inspires young members of the house and senate, to step up to try to fill that -- neil: we all have great stories, i remember one time my son was 10 i believe at the time and we were going to white house christmas party. barack obama was president at the time. earlier that day we did all the shows out of washington. we interviewed john mccain. jeremy, how do you like it here? i really like it a lot. i will see the president tonight. he is the guy who beat you. without missing a beat, i see you have the sense of humor of your father. but he would have a way of just

making fun of himself. >> right. neil: we do too little of that. do too little of it. >> no, he would land a line and get this half smile, waiting to make sure he had gotten it in. neil: he would do a zinger, do you ever want to go into politics. jeremy said, maybe. he said, think long and hard about that do you think people are less inclined to look at that kind of future give the attitude today? >> i do think people are less inclined although i have a soon to be 17-year-old son. neil: wow. >> who shares a birthday, shares a birthday with john mccain. neil: wow. >> inspired to say. this is the republican party, this isn't the politics that i admired in john mccain. neil: very true. >> i i want to go in to change . neil: someone will do that. fran, thanks for taking time. you're under commitment to other people. fran townsend, former homeland security advisor. much, much more after this. when you rent from national...

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welcome back everybody, we are sprinting along in the market. a lot of growing optimism that the u.s. and mexico scored a trade agreement deal. i stress they're calling it the united states mexico trade agreement. the u.s. wants to do with -- do away with nafta. canada was part of that deal but not this one.

the canadians are eager to talk. there's a lot we don't know about the deal but blake berman has been looking into it. what have you found out. >> i just got out of a meeting with the top trade representative to the president. he walked myself and a few others through some the details. let me give you two specific things that stand out between this trade deal length. on its face it is 16 years long, pretty good timeframe, however six years into it there is a point in which both sides can sit down and go through a revealed process. at that time of both sides want too, they could extend it from then another 16 years out. one of the big question surrounding the deal is whether or not there would be a sunset clause in all of this. it appears, if nothing else, the united states and mexico have sort of built in this timeline that says both sides

can sit down, see where they are at, and at that point take it from there as to how much further they want this thing to go on. here's a quote that the ambassador gave us. so that every now and then we will have an opportunity to sit down and work through problems. as you just hit on, canada, this is just one deal, they made it clear they would like to bring canada on whether it is a separate bilateral trade deal or a three-way deal. earlier today they levied this threat against canada. watch here. >> we will start negotiating with canada relatively soon. they want to negotiate very badly. one way or another we have a deal one way or another.

a deal on tariffs is a much easier way to go but perhaps other would be that are for canada. >> light hauser says they hope to send up a letter to congress by the end of this week, within the next handful of days to spell out exactly what they have agreed upon with mexico, and also they will put in that letter that they are hopeful that canada will join. i asked the u.s. trade representative, is there a timeframe that if canada isn't onboard you just ended and go forward with mexico and that is that. he wouldn't put a date on that's what remains an open question how long they plan to negotiate. the senior meetings start today. the administration is framing it as they have been speaking with the canadians over the past year, but no doubt about it the more intense talks will start today.

let's get the read right now from capital founder and ceo and our susan lee. susan a couple months back had talked to the prime minister of canada before all of this hit the fan. what you think he does now. >> that's a good point. i just heard blake berman and his conversations with light heiser and the sunset clause was a big sticking point. this seems like it does include a sunset clause, it expires after six years when you renegotiate and he said mexico and canada were adamant again. i find it very surprising that the trade minister who issued the statement said that canada has to be part of this rework and it needs candidate

signature. she's in europe right now but i can imagine canada is eager to get into the negotiations - looking at the dow 30 as they sprinted ahead and jump over 26000, all the trade sensitive issues, including caterpillar, boeing, by extension 3m, intel, they're all jumping on the belief that this removes uncertainty. we sought to get through the hurdles of canada and china and were not to get that far or get that bad. >> they know the u.s. is in the driver's seat. the 21 trillion-dollar economy is not going to lose a trade war. we are finally flexing our economic muscle and we are winning for these other countries have come to the

table. we are 20 times larger than mexico and ten times larger than canada. were not going to lose this, markets are starting to realize that and i think president trump has done a great job negotiating this. mexico exports about $68 billion surplus to us. that 7% of their economy. they had to come to the table. canada is not going to let the still go without them. they will come to the table. they won't sit back and say we have to protect their dairy farmers so we won't deal with the united states for they will come to the table too. when that happens the markets will go higher. >> what little we do know about the deal is that it will call for higher wages in mexico. the devils in those details, but if it does lead to an improved economy in mexico, that honestly could solve a lot of our border problems and crossings because the better things are down there, the less people want to flee. >> it could, the market seem to realit rally on relief that the negotiation could've gone worse. but how sad, since when do

republicans want to manage the trade that occurs between individuals mark since when do republicans want to control the wages in different countries and say you can have this much american and north american content. that's not the republican way. people have been trading longer before they were countries and borders. trade improves a spread we don't need governments to manage us but i don't like the direction republicans are going. >> host: the president would counter to that, they have been managing it and other countries have been managing and rigging it and we threatened it back and got them to the table. >> i like that he said china negotiations are asking for too much and there's no follow-up discussions being talked about at this point. i would say the markets are liking what they hear. drop 254 points, as in the probably will see another record close. american businesses are doing

really well this year. they're making a lot of money. neil: they are making a lot of money. general investors are as well. whatever you think of the trade accord or what looks like the beginning of one, do you ever worry they're getting ahead, or that this is getting a little frothy. >> no, were at 17 times earnings, i don't think it's getting heady. the biggest concern is probably to go back to what the feds going to do. the trade part is still out there, china is the big thing ever but he try to figure out. guess what. we are twice as large as china. china has a lot more to lose than we do and everybody is seeing that what president trump's been doing, it's worked with mexico and canada and the eu and will ultimately work with china. at the end of the day were all going to be better off. the world will be better off, the growth of the economy globally will be better off and at the end of the day president trump look very good in this whole thing.

>> the president mention last week, if they're trying to pursue him for impeachment, you can kiss this bull market, these huge rallies goodbye. you agree with that? >> i think that's overstated. i think we look too much toward presidents one way or the other part of the u.s. economy is great because of the businesses within it. it's not because of president, although all agree trump has had some good policies. the trade policies haven't been good ones. the reality is were a rich nation because our tariffs lol have the most valuable companies in the world because we sell our goods around the world. mcdonald has the second most number of restaurants in china, starbucks has more will have 7000 outlets in china soon i will have the biggest market for apple outside the u.s. why on earth would we get into a trade war with countries that import so much of what we produce. >> because they're stealing.

>> we will see how it all settles. thank you all very much. the president will be meeting with the president of kenya. that might be an opportunity to respond to what's happening on trade but he has ignored repeated questions about his statements or lack thereof of the passing of arizona senator john mccain. he did tweet about it but nothing beyond that, including re- raising the flag from the white house from half staff to full staff. some say the president missed an opportunity to be bigger than life. more after this area

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vietnam as a prisoner of war, beaten regularly for the better part of five and half years. not many wome men or women know that experience but my next guy does. for seven years he was held as a pow in the prisons of north vietnam. the awards and honors for bravery go from silver star to two oh awards for the legion of merit. i could go on to the air metal, purple heart, two of them, distinguished flying cross, on and on and on. he like the good senator, doesn't talk about that or brag about that. i'm honored to have gerald with us, i retired u.s. navy captain. thank you for taking the time to be here. >> you're welcome. >> . neil: you had a close bond with the senator and were remembering what duty and sacrifice was like from a divided washington. i'm just wondering your thoughts on this day.

>> it's a silver day for me certainly. john and i were very close with several different guys and i'm very honored to be here to share some time with him. he used to joke that you guys had a lot in common. he would always remind me i was near the to my class and he just loved the point it out. not bad to a guy who made it this close to the white house. did he often kid you about that? he kidded about a lot of things. >> captain, when we look, he was very big on american defense and very concerned about the fact that we were letting our military slip and

focus on threats abroad slip. what were the more fearsome threats? >> we had gotten several years, we have gone for a period of seven years without much difficulty and this has given us the opportunity to look again at all the things we have to be proud of just as john would do that as well.

>> you pay attention, i'm obligated to mention cows in the news now, the white house, there hasn't been a proclamation on the senators of the president. to tweet the sympathies to the mccain family but he hasn't done much more than that. your thoughts? >> the mccain family is so strong in so many ways there's no way it can be denigrated with any legitimate at all. we are proud to be associated with the senator and while we have this precious time.

it's a pretty rough time we were told for a lot of people, i knew you were briefly cellmates for a while, but he survived on humor and trying to be upbeat which is hard to do. how did you do that, how did he do that. it sustained us in many ways, we had good things to look forward to in that was one thing. we had an opportunity to talk to him about the things that sustained us and inspired us

such as the one thing that i brought with me today, the poem in victor which i would like to share briefly. it was a short poem entitled in victor's. it means victory. out of the night that covers me, black as a pit from pole to pole, i think what ever may be for my incomparable poll. in the circumstance, my head is blood he but i'm dowd and the final sentences it matters not how strait the gate, how

charged with punishments the scroll, i am the master of the fate of my fate and the captain of my soul. if you just about that one little poem, it meant so much to us because it was packed with the things that we were holding up for and trying to be conscious of that poem. neil: you control your fate and your future and you can remain on concord. >> that's right, exactly. we can remain unconquered, we remain upbeat, and it was

certainly comforting to have that poem to lean back on. neil: i can understand you had it more than memorize. thank you very much. we appreciate it. >> i'm happy to honor him in any way that we can do. neil: thank you. we will have more after this.

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republicans are worried about the sheer number of

investigations. there could be upwards of a hundred of them if they take the house and cover subjects such as the firing of james comey and the number of attorneys have been fired, his proposed gender band for the military, the president dealings, travel ban, family separation, i could go on and on. republicans here and th democrats would go on and on if they controlled things. philip wegman on whether their fears are justified. what you think. >> when republicans had control of both the senate and the house and he didn't like it, he really won't like it if democrats take control for the really excited to put him through that meatgrinder and see what they can find as far as ethical and legal lapses go. from what we've seen so far, there's a lot of material there. democrats are excited for the

moment there won't be a lot republicans can do to protect this president. do voters draw a distinction between impeachment hearings and investigations? i would think going after one hearing or another might fuel an argument that some of the leaders fear they are going for blood and will look at bill clinton. what you think. >> i think there has been some caution. the reason democratic leadership is not so eager to embrace the impeachment talk is because people remember how awful it was last time around. this is the kind of activity that tears a country apart. they haven't been able to pick a lane. voters were promised there would be russian collusion. then maybe they could settle

for obstruction of justice. now, if democrats want to impeach the president over this campaign-finance, that will be a much more difficult sell. if your democrats, you definitely go forward with the investigations because so long as republicans hold the senate, it's definitely a messaging exercise plain and simple. >> i'm wondering how much of a difference days like this make, the big run-up in the market, progress on trade and potential agreement with the mexican, the kind of thing that's really been the wind at the present back and might continue today. is there any way to handicap that and how it sorts out for november? the presidents always been saying, middle of a great economy, republicans are not gonna be in trouble, just the opposite. >> right, i think with happening as we are seeing historical forces that are counteracted by economic forces. what i mean by that is a starkly the party in power,

they always have an uphill road to keeping the majority. we saw that when republicans gain 64 seats in 2010 and even before that when democrats gain control of the chamber in 2006. there to ensure a things happening in republican favor. one is that there's an economy that is booming at 40% gdp and the other thing that isn't getting enough focus is the republicans, when it comes to fundraising, they are making money hand over fist. i think a blue wave is coming but it doesn't necessarily mean it will be a tsunami and a lot can change between now and november. neil: in other words they might pick up a good deal of seats in the house and not necessarily enough to control it. we will watch it closely. philip wegman, good seeing you again. we are getting another tweet from the president can concerning the governor of arizona, he will have a prominent role in selecting a successor for john mccain.

he said in this tweet the governor is doing a great job to show support tomorrow by voting for him in the primary saying he strong on crime, the border, second amendment, loves the border and our vet, he has my full and complete endorsement. there's also this, tesla shares are dropping and talk that elon musk is willing to stay public. whether it's too little, too late and whether it gets the hounds off you know what, anyone's guess. i have a feeling they would have an idea where this is going. >> chief marketing officer is with us now. what you think. >> it's been a wild ride for those who have invested in tesla, and certainly th the late announcement made a lot of people question why now he was saying we are going to stay public, but one thing

that is for sure is that he has the support of his board of directors and investors and i'm think he hopes to show that income the water for the production numbers. >> is there notion that he couldn't find because that doesn't encourage us or as it may be a reflection on the pennies fortune in his running it. it's the speculation causing the stock to struggle. the question raised was the price to rich for investors and how badly has this hurt the credibility as he runs this massive companies.

>> i still can't imagine the company without him so i don't know if it would've been a visionary role or whatever but he is the vision of the company. >> yes, no one wants to see tesla exist without elon musk at least as the visionary head of it and i don't think that will happen without him having full control of the company. in the visionary only role you don't see that. it's important for the board of directors to say we have confident in him, he's our guy and it will build more momentum, his numbers in october everyone's waiting for to see how it can deliver on the production numbers. >> could you see the start getting beaten down enough that someone kick the tires and tries to buy it? >> it's really interesting,

one of the things that seems to be interesting is all the interest that elon got after he made that august tweet. all these car manufacturers stepped up and said were interested, were in and so there is, risk is probably too strong of a word, but it's probably not out of the realm of probability that he would get approached if the stock cannot continue with the upper momentum it had before he made this revelation. >> it's always good seeing you. thank you for taking the time. neil: there's been a lot of back-and-forth about whether the president has said or done enough about the passing of senator john mccain. people even jumped on the fact that the flag is back up full staff outside the white house. what would ronald reagan do? we will talk to a former top advisor after this.

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neil: i want to see a tale of two flights, it's hard to make out outside the capital where the flag remains at half staff and the white house where it returned to full staff and a lot of people are giving president trump some harsh words but technically apply can be at half staff on the day and noted american death and the next day. after that it can return to full staff but now we are hearing from mitch mcconnell and chuck schumer that they want to continue to keep the flag at half staff through this week. that is normally the policy that is in place through a funeral. it concludes this week with his ultimate burial at a navy academy.

a former reagan press secretary mark weinberg, technically they are doing what you do, but a lot of people are noting you didn't issue a white house proclamation, you issued a tweet extending your condolences but nothing more. what you think. >> i don't think much of it. it's about as ungracious as you can get. a president could have easily issued a proclamation to have the flag lowered for longer and he should have. there's a tweet, there's a story that there was a very gracious statement drafted for the president to send out and he vetoed it and instead issued. [inaudible] it seems to me who would leak such a story to make the president look bad.

>> it's no secret the two of them didn't get along and everyone remembers the president's infamous comments that he wasn't a hero, he preferred heroes want captured and this is a man that got multiple. [inaudible] but it just doesn't look presidential. >> trump is found of saying i can be presidential if i want. my answer is please do. he delights in doing the opposite and dignity of the office and rising to the occasion don't resonate much in this oval office b5 but it bugs you that he used the flag to make a point. >> he used the flag he claims he loves to insult a war hero and that's just wrong. >> so not enough for you to see it at half staff for dana half. >> it should be a half staff until senator mccain is laid to rest. >> if the president is saying

i didn't know that, he does now. he could have easily issued an order in the past three, four, five hours if this staff served him poorly by not having a proclamation ready, he could have ordered one and righted this but he didn't. >> he had picked up a little bit, it could be the economy or the markets or both, but this was. i think his core is strong as can be but there's a lesson in the whole michael cohen thing which is if a person needs a fixer, maybe the not a good candidate for president. >> but it doesn't mean they're beatable. >> anybody's impeachable, that's up to congress.

years later when he was in office, you ran contrary investigation. some of it was too late, the president addressed that to the nation that it was on him and his responsibility there are some inconsistency, he had clearly lied on a number of issues, but your thoughts on how he should handle the. >> you should level with the american people. i'm not even sure he knows what's true and what isn't. assuming he does, he should

sit down in level with the american people. the problem is, the truth will not serve him well. the facts are not on his side. i don't think he will help himself if he doesn't come clean. one of the things i hear people say, they say we didn't elect a saint but we like what's happening to the results of what's going on in the economy, we can put up with this, we knew what we got. some people need to take a chill pill. >> i understand that but the two are not mutually exclusive. you could have good successful policies and be an honorable person. there helping the market and the economy. it's an office that should be exemplary. it is an illegal, they haven't

found a felony yet, is that what we really want or do we want a president that behaves in a way that we say that should be the way a president behaves. the sheer absence of illegality should not be a factor. the media covers the stories that matter, you can't blame the press. neil: ronald reagan thought the press was a little too fixated on the brand contra. >> at the point they were a little too fixated on it. >> mark weinberg, thank you. it was good seeing you. it's a very strong market were up about 260 points, over 26000. i think were 600 points from an all-time high. s&p is there, nasdaq is there, what is going on, after this year, i am sorry about that.

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just a few moments ago president trump was meeting with the kenyan president and his wife. you might recall the president of kenya out had met with

barack obama in nairobi to visit the land where his father was born and to talk about the bond that he feels with that country. that president is now meeting with the president's successor, donald trump. timing is everything. right now we are up 262 points. we have an economy that seems to be firing on all cylinders and this is something the president keeps telling us is because we have a trader or what looked like a trade deal with mexico, the canadians get involved and the chinese take notice and keep this thing going for this is why you see a lot of companies sharing the wealth and the benefit of the rich in the economy, they're all lower tax rate other

companies have been following suit. dan, what is driving this? >> there is nothing that works better for ordinary people than free market tackle is on. entrepreneurship, that's what drives wages, not government mandates are regulations for the fact that were getting lower tax rates at a little bit of deregulation, that's helping the economy grow faster and that's the path we should follow. >> on the same day were learning the broad outlines of the deal with mexico, 15, maybe 16 equivalent dollars. >> i have very mixed feelings about this nafta deal. we basically had two choices, trump was going to pull the

plug on the entire deal or we were going to get modifications that in my mind made nafta not as attractive if those are the two choices, i would rather take the modifications because it still means the core of nafta would still be in place. we still have some tees to be crossed and eyes to be dotted in the canadians need to be brought in, but compared to completely get rid rid of nafta, this is good news. neil: my gut tells me that anything that's different may be better than what we have, but it isn't ripping off an agreement from scratch and starting new. if you hated the nafta deal, maybe you're not too psyched about that, if you liked the nafta deal you're enthused by that but clearly the markets, for now, there's uncertainty that were going into a full trade war is off the table. what you think about that. >> markets like certainty and they definitely prefer a modified nafta, even if it's weekend, they prefer that

compared to eliminating nafta. we make an important point. nafta, at least as it existed in 1700 pages. it's a free trade agreement should just be one statement. there's no tariffs on your goods and we have note tariffs on our goods. obviously this is not libertarian nirvana, but considering where we thought trump might go with completely ripping up nafta, i guess we have to be pleased be five the president, i want to catch up with you on this, is a big issue last week when he sat down to talk about all these investigations and the possible switch and control of the house that would get democrats going. more investigations that will go ahead, you could hurt this whole rally. stocks would crash pad what you think of that. >> i'm much more worried about a fed created problems for financial markets but i think that would cause a real

corruption. i think markets have already priced in the fact that democrats will take the house and there will be nothing but investigations. neil: so the markets have given up on the notion that republicans hang on to that. >> i think of the senate with democrat than the markets might react adversely, but i think if you look at the political betting market, i think most everybody with real money at stake, i think they've already figured democrats will control at least one house of congress next year. >> so what happens if democrats just miss in the house and they don't. >> then i wouldn't be surprised if you saw a positive surprise on financial markets. assuming that investors would expect additional tax cuts and deregulation and maybe some much-needed spending restraint because as we've talked about before, if republicans don't begin to work on spending they will lose their tax cuts

sooner or later. neil: what you think of the overall temperament of the markets and enthusiasm. , will it stay in place? >> we could be having this conversation back it in 2007 when the market looked very strong and most people missed it. for all i know i said everything was going great, tomorrow the stock market would collapse and i would look like an idiot. i try to minimize those opportunities to make myself look foolish. i think, at the end of the day, in the long run it is all about free-market capitalism which is what gives us more prosperity. yes there will be ups and downs and speed bumps all along the way, but good policy is the recipe for prosperity.

neil: it's all about the fundamentals. i would never play such as a back if you made such a bold move, but i think my staff would. dan, thank you very much. we have a lot more coming up. the dow is about 257-point up. stick around, you are watching foxbusiness. . . . i get it all the time.

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neil: and rally goes on. we're going to look back at that president's response to all of this, could be back to the days of jimmy carter.

he will be my special guest had tomorrow on this special show we look at power going for causes that might or might not be popular. whether markets up or down, jimmy carter exclusive guest on fox, only with us. connell mcshane through the next hour. >> good to see you, neil. breaking right now we have a rally underway on wall street connell: we have a look what the deal might mean. i'm connell mcshane for trish regan. we welcome you to "the intelligence report." a lot of other stories we're following as well. the president meeting with the president of kenya at this very moment at the white house. we're on top of that we're told two leaders are