that is why we're seeing a bit of a selloff. liz: bond market is closed today. freak out over the yield going up. charles: we'll see what happens tomorrow. some will say huge consolidation after a huge run. neil, take it away. neil: thank you, charles. we're watching a selloff. we're off the lows, still down a lot. a lot has to do with rising interest rates which normally is greeted as a good thing, it reflect as good economy. in fact a very, very strong, rapidly accelerating economy. the mixed blowing is that -- blg that the federal reserve will rain on the parade. bond market was around 3.25%, around seven-year highs. that maids it hard to trade and arbitrage against stocks and bonds. it gets a little mechanical here. suffice it to say in that environment stocks can be whipsawed. we have d.r. barton and david

johnson and fox business's deirdre bolton. obviously the big battle for investors is weighing an improving economy with higher interest rates that can clamp it down. what do you think? >> neil, in the studio, that 10-year yield we saw last week, highest point since 2011. that is even among the chatter here, what a lot of people are worried about. higher interest rates go, the higher all borrowing becomes. whether that is mortgages or car loans or any kind of loan, right? we all end up paying more. businesses the same. that is a damper. at the same time, that is pretty clear that the fed is also doing to continue to raise interest rates. interest rates overnight, you've been talking about and covering from china, that shanghai comp was the worst performance in a month. two punches to the gut. the dow pretty much at the low at the session. neil: you're right about that. dr, the shanghai falling roughly

7%, equivalent if we fell 1500 points overnight, it's a shock to the system. now people fear china can't get out of it is own way so maybe there is fear the rest of the world can't get out of its own way. what do you think? >> there is always concern when the rest of the world is not helping the u.s. markets pulling on the asker to help us continue this upward path, neil, and the big issue, china and all of their trading partners, when china is doing poorly, their trading partners suffer. we get a global slowdown. if that were to happen, that would be a big issue with the u.s., but it might take a couple of quarters for that to really catch up with us. so, i believe deirdre is right. the interest rate issue is one. i think that is really short-lived right now. neil: you know, david, if you were to karn out for every downdraft we've had, even a

multiday one you would have been richly burnt doing so. obviously that strategy doesn't worked a knaus yum here, but -- ad nauseum, what do you tell your investors seeing a lot of sectors of the s&p 500 taking it on the chin? >> i tell them to not do anything. i tell them that exactly what you just said. had they done such they would have gotten burned last week, last month, last quarter, last year and so forth and so on. the fact of the matter is three months ago the dow was 3,000 points lower than it is and the 10-year was 30 basis points less than it is. if these rising interest rates behind a strong economy are so awful i would like to know how the 10-year moved up 30 basis points and the dow moved 3,000 points? it doesn't make sense. we have a, you're going to have repricings that have to take place along the way but we right now with this selloff are exactly where we were one week

ago. i think that it's a major overreaction. in fact it is positive news that we have such a strong economy pushing the yield curve wider. neil: you know, deirdre, one of the things raised if you are in a raising rate environment do you stick with the groups and individual issues that have gotten you this far? technology comes to mind. technology of course had a rough september. it is so far not having a great october but there are those who embrace small cap stocks thinking ironically they're not impervious but to the effect of the higher interest rates that is the group "the wall street journal" and others played, to restrategize, not sell anything, but get your priorities right, in a rising rate environment they might surprise you. more strategies, what do you think? >> more strategies, it is worth every investor considering what he or she is doing in the portfolio adjusting for the higher rate environment. face it, that is where we're

going. a big focal point from the analyst community and trading community we'll get earnings from bigger banks towards end of this weeks wells fargo, citi, jpmorgan. and normally in a rising interest rate environment even those these are clearly not small caps stocks which you asked me about, normally banks, profit margins get thicker in a rising rate environment. normally a positive sign for these companies. i do think toward the end of the week we'll look a little bit brighter than where we stand here on the rainy monday, neil. neil: on rainy monday in the month of october, even though not the worst month for stocks it is one we remember scary developments in 1929, 1987. the leveraged buy yacht fiasco of ual that brought us the cash of 1989, 2008, i could go on and on. there is something in this month wouldn't take much to spook investors. is that justified?

>> i think that markets do have memories and people do remember things like all of those dates. we could keep stacking them up there, neil. september is usually worst month on average but october is where the big hits come along. neil: finish that. >> yeah, i all was going to say i don't think we can act on our heels because of that one historical issue. this pullback may have a little life left in it. then i think we have another good leg upcoming. neil: when you weigh the environment, david, do you look at trade? deirdre we're at major league impasse with the chinese. they claim they can fight this until hell freezes over, they didn't say that but they're in no rush to do acanda. no rush to pull a mexico and strike a quick deal with the united states, or so they say. what do you think? >> yeah, i don't think that they

are in the same position from a negotiating standpoint that mexico, canada, even the european union were. i think that this will play out differently. i think a lot of that has to do with us though, i think. our objective is slightly different. i think the president primarily wanted a sort of cosmetic victory around some other trade deals. we had the leverage. we modestly around the edges improved some of those trade agreements. i think with china there is broader objective at play. the intellectual property theft being one of the biggest. so i would not, i don't think any investor ought to be ignoring it but i don't believe we're at an impasse. i think both sides kind of said all along this is something that will be after the midterms and i expect it to be something we see more development, neil, in first quarter of 19. neil: we're looking third quarter earnings for corporate america. they're expected to be good, 20%

up tick, deirdre. down a little bit from prior quarters but sill off the charts. that is baked into the cake here. what do you think? >> it is baked into the cake. investors look in addition to profits, some respects how much companies are squeezing their workers and getting a bigger bottom line, what also are their competitive stats? what are their sales like, right? are they driving new business, getting new business? those are pretty big questions. one thing i want to mention quickly about china as a follow-up, pboc, peoples bank of china, neil, cut rates four times or basically lessened i should say the reserve requirements four times this year. they may be saying, trying to saying it is not worried about trade but what people's bank of china is doing trying to spur its own economy is telling a very different story. neil: you're absolutely right on that. they doth protest too much, but dr, talk about china, if it continues to swoon and in a bear

market, 20% or more from its highs, very atype call versus our markets, other markets in europe not quite as close bear market bad shape how do you play this out? do you recognize this is a united states-led rally and it stays that way or can we keep ignoring what ails china and some of these other markets, developing markets more to the point without risking, looking dangerous, that we're getting a little heady here? >> yeah. i think it would be getting just a bit ahead of ourselves to say it is time to start pulling back on investing here in the u.s. because i think we still have a lot of strength through the earnings you mentioned. things you can do here, even if china continues to drift down. now if they go hard down, neil, the story changes a bit. but i think there is still thinks to do here in the u.s. while that plays out overseas. one of the things you pointed

out this discrepancy with the small caps, that is a really good play, something we're strongly looking at right now, because of small caps already being down relative to the large caps, they're ready for a bounce-back. this interest rate environment doesn't affect them as much as you already said. neil: david, you offered timely and wise step back perspective where we are now, essentially back to where we were a week ago. a lot has happened in the interim. people forget that. they also forget even a 3.25 10-year note, eye-popping that looks to a lot of young people maybe owing to my age i can remember a much, much higher 10-year note, a much, much higher prime rate and where it was routine. my wife and i got our first home to pay that essentially per day. i'm exaggerating point but perspective is everything. >> two ankles i talk about this

with clients. comparisons to the late 70s and extremely high rates are not totally helpful, that we had a full generation go where we haven't been in that where we've been in the '80s, '90s, 2000s, 3.25 is very. where they think 10-year would be better that is what they really want, i have to say, are you sure? do you really think you want to be an equity investor in an economy so weak that it is 10-year yield is that far below the natural rate, 2%, 2 1/2? getting a 10-year rate to 3.25 should be embraced by investors. we doesn't want the artificiality in interest rate environment. you want oar begannic rate with growth in the economy. that will involve repricing and some volatility along the way.

that is called being an equity investor. neil: well-put, david i would turn it around on you, if you asked same question to a young couple buying a home, they might say well, that 2% i'll kind of take it. we'll see what happens. >> you shouldn't buy a home if 3.25 versus 2.75 makes a difference. neil: may knock them out of the ballpark for a mortgage. much appreciated, guys, thank you very much. something more immediate concern to those living along the florida gulf coast, a new storm coming, michael could get up to category 3. adam klotz with what we're looking at here. adam, it looks like it is getting bigger and bigger. >> it is happening real quick, neil. just this morning it was a tropical storm now up to a hurricane off the coast of cuba. that will strengthen a couple more next couple days.

warnings and advisories are coming out. everything in the yellow orangish color is hurricane watch, stretching from pensacola to the florida big bend. an area where this eventually making landfall. the timing running over the warm water continues to strengthen. from category 1 to category 2. does this bring it up to a major category 3 storm as it sits off the coast? that early wednesday morning 8 a.m., you're getting winds 120 miles-an-hour before making landfall on wednesday. still early where this will specifically go, where specifically it will make landfall. here are a number of models. others taking it up to pensacola and others saying closer to apalachicola. all along the florida gulf coast is an area to pay attention to. remember, tuesday night, really running into wednesday morning. wednesday during the day. here is the wind field this is another model as it runs it

closer. that really defined line in the red will be really strong winds. that is bringing that there wednesday morning. not just a wind-maker. category 3 will be a big storm as far as wind goes. this is a faster moving storm. so you don't get florence where you get 40 or 50 inches of rain. rain will be issue. here is the rainfall rate. looking specifically where this makes landfall. maybe getting up to six to eight inches. it will continue to run its way across portions of georgia. this will be large storm, wicker moving storm than last storm late wednesday night into early thursday morning. neil: he is sitting on the nation's highest court, brett kavanaugh, and he is already ready to take on some cases but of course it gets the ceremonial sort of stamp of approval at the white house with his ceremonial swearing-in at the white house. more after this.

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are democrats. the main base of the democrats have shifted so far left that we'll end up being venezuela. this country would end up being venezuela. i think a lot of democrats are going to be voting republican on november 6th. neil: and the president arguing before his trip to orlando that the whole brett kavanaugh hearings and how they were handled on part of democrats will resonate with voters across the country and will gap vannize more republicans to hank on perspective districts maybe gain in the senate. president sees nothing that will lead the house to switch or for that matter of senate to stay the way they are now. if anything the numbers in the senate could get bigger. on ceremonial night we see brett kavanaugh he has already been officially sworn in by chief justice roberts. what happens in the whole battle back and forth and translates on the anger meter.

"real clear politics" founder tom bevan. not that tom ever gets angry, i have never seen it but he keeps track of it. what do you make of the president saying that? democrats say the reverse that the whole situation will benefit them, get out the woman vote what do you think? >> well, look i think the president has a bit of wishful thinking on his part. what the kavanaugh hearings have done really polarize the country even further. democrats were already at an 11 on the outrage meter heading into the kavanaugh hearings. and maybe that's gone to a 12 now. but republicans really have seen a shot of energy and outraged engaged their voters. we're seeing that in the generic ballot and senate numbers and some house races but the question, does the anger last, dissipate. now that republicans won he is on the court, does that anger dissipate over the next four 1/2

weeks. we'll wait and see. looks what transpired in the last 10 days or two weeks helped republicans more than democrats. neil: if that is true, i never doubt you, the question to what degree, right? if you argue that republicans who heretofore were liking the economy, liking what was going on, didn't share some. anger in the midterm normally gets people out, is it enough to stop a house take over in the house? they will lose seats but not lose 23? >> what is interesting, the house map and senate map are so divergent. house a lot of districts at play where suburbs where trump doesn't poll well, college educated women. those folks have been driven away from republicans by what happened. in the senate, what we're seeing a lot of states, fundamentals are coming back into play. heavily republican states.

heidi heitkamp in north dakota collapse basically. down now almost double digits in "real clear politics" average. marsha blackburn benefited last couple polls. the raise really to watch is indiana. joe donnelly, he voted against kavanaugh. he is in a state trump won by 20 points. he is slightly ahead in the polls, about 2 1/2 points. they have the first debate tonight. i'm sure mike braun the republican candidate will bring this issue up. neil: what is kind of weird about this, you could have a situation where republicans gain in the senate, there is distinct possibility they pick up a couple seats and still lose a lot in the house, maybe control of the house, i'm not quite in that latter camp yet but what do you make of that? it certainly has been done before but would make things even weirder? >> yeah, i mean it's rare but it does happen. it has happened three times in midterm elections since 1934. the most recent 1982. ronald reagan lost 27 seats in the house and picked up seats?

the gnat. we could look at similar scenario. the way the senate map has shaken out this year, it is terrible for democrats, right? they have got 23, 30 seats they're defending in heavily republican territory. so we'll have to wait and see but certainly could be one of those situations where republicans lose seats in the house but pick up seats in the senate. neil: i was hearing on one of the networks, excuse me, i don't remember, tom, but they talked about watch the last 48 hours. now they were applying last presidential election went from a narrow race to a blowout for ronald reagan over jimmy carter. and similarly in '84 when things really blew out. ronald reagan was in a comfortable lead over walter mondale but it started building exponentially after that. we saw something similar with barack obama over john mccain where he had a lead. with the meltdown, whatever in the perception things were going bad to worse it built. i don't know if there is a

common pattern for a midterm but i'm wondering whether you subscribe to that? whatever we say now it is those last 48 hours that could impact everything? >> i'm a little bit more skeptical of that, just because there are less swing voters around to be swayed. most people are locked in, based on party identification. you're on the red team or blue team. you pretty much decided at least most people have. there is small slice of independents in some close race cost make a difference. it is about turning out base and enthusiasm. what republicans have seen, their voters are rising to match democratic enthusiasm. the question over the course of the next month does that stay, does the intensity level stay that high? or does it fall, dissipate over time? we'll have to wait and see. neil: tom, always good having you on. thank you, my friend, tom bevan. a lot of people love her music but wonder why all of a sudden taylor swift inserted

herself in this campaign. she is a hero for doing so in the eyes of many because she is endorsing democrats and really making that push in tennessee. she is seen of sort of being brave. not kanye west if memory serves me right. his comments in favor of the president, well he is a nutcase. we don't know whether applies to either. we just found it interesting after this.

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the more likely you'll succeed. the most inspiring minds. the most compelling stories. download audible. and listen for a change. >> all right, taylor swift is weighing in on politics. she is putting her money where her mouth is and asking folks in the state of tennessee to back democrats in the key house race and the senate. that is fine. i generally don't have a problem with entertainers, goes against the grain particularly with conservatives they should do the acting thing, singing thing and leave politics to itself. it's a free country.

a heroic response she is getting in the media. this is the first time i don't follow her closely, she has done something like this. touche, fine. when kanye west was being attacked for supporting donald trump, whatever they thought about that, he quit social media following the back last, over said support that is not very fair, not very balanced. i always say since we have three 24 hour news networks, three 24 hour business networks, we can get it all this, not all one way but that is kind of a one-way response. to "washington free beacon" liz harrington. what do you think of that? >> i think that is funny how that happens. you support a duly-elected president, get ridiculed, you get a backlash against the thought police who thinks everybody has to think the same in hollywood and has to conform. funny, with taylor swift, we're waiting for taylor swift to come out to tell us her political

opinions. i don't think anyone waiting for this except people on the far left who want everyone to think the same in hollywood. who want everyone to conform to this. she came out, that is fine. she will be lauded in the media for it because they all think the same too but you don't see the same fairness for someone that comes out with an original thought like kanye west and goes against the grain. neil: my staff always kids me covering the story they know how unhip i am right off the top but i do remember not that many years ago kanye west was beyond a real rock star, he was a rock star in the media. people thought he was hip and cool. his association with donald trump dinged that. anymore than taylor swift and her fondness for democrats that is the risk you take as an entertainer when you take sides. i find the media treatment of those who do on the right is far more punishing than those who do on the left. >> exactly and everyone in the

media loves kanye west when he went after george w. bush for katrina. everyone loved him for that. when he changes his mind about some politicians like donald trump, you know, all hell breaks loose in hollywood. it is just unfortunate, we reached a point in our current ture where everything is politicized everyone has to have opinion. it turns a lot of people off. i thought taylor swift is a very good marketer. i kind of surprised she would make a decision to alienate half her fan base. more power to her. she says whoo she believes. i think it turn as lot of voters off as well because they don't all think the same and certainly are turned off by hollywood lecturing us how to vote. neil: i found it interesting, because i guess part of the motivation for this a lot of people were pressuring taylor swift, we noticed that you don't go railing against blah, blah, when you're on stage or whatever. that you're pretty quiet when it comes to your political views.

that crescendo was building, hence her move to do this. i don't know if that is true. i told you i'm the most unhip person here but i wouldn't be surprised if there is a push to make sure that entertainers of any sort, be they singers or actors, actresses, what have you, state where they stand right up front. and see where the chips fall. what do you think? >> yeah. i think the left never stops. they want everyone to come out ton to their side because they want everyone to think the same. it is true. taylor swift, you had people on the left for a long time saying, why hasn't she weighed in on this? she finally has. i guess you have to give into the pressure of everyone constantly saying you have to come out because they tell her you have millions and millions of followers, millions and millions of fans and they want her to, you know influence elections. and so she made the choice. that is perfectly fine. it is just i know it will turn

off a lot of her fans that don't think the same way of the we should keep in mind. she endorsed a very moderate democrat who said he would have voted for brett kavanaugh. neil: that's true. >> kind of bipartisan a little bit. neil: do we know, are there any adele updates, because adele and i are like this? she hasn't told me about anything where she stand. she was at one benefit concert indirectly helping hillary clinton but generally as excuse politics or do you know whether adele will weigh into this, because that will ruin ply day, i don't care who she goes for? >> i have no idea, it wouldn't be surprising if they lean to the left. most of them certainly do. neil: i will think twice with that beautiful voice, liz, thank you very, very, much. to liz's point they are free to state their case. who they like, who they don't like. they're likeries of humanity, we all have our points of view and biases, fry to exercise them.

but if adele compromises that beautiful voice dipping into the weeds of right or left-wing politics. i might not buy your next album, just saying. more after this. touch shows how we really feel. but does psoriasis ever get in the way? embrace the chance of 100% clear skin with taltz, the first and only treatment of its kind offering people with moderate to severe psoriasis a chance at 100% clear skin.

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network of doctors and hospitals. and see if a humana medicare advantage plan is the right plan for you. pick up the phone, and call the number on your screen. the call is free. and licensed humana sales agents are standing by. so call now. neil: all right. by the way still not heard from adele on her political preference but she's going to get back to me. i placed the call. she is not ignoring me. i want to go to jeff flock who never ignores me. he is on the beat of interest rates, on all tote sales and the rest. jeff, if i'm distracted i'm looking at my phone for adele but go ahead. what are you saying, bud? reporter: yeah, i heard you say you will not buy the new album, but that doesn't mean you won't listen to it on line for free. that's my thought. neil: that's fine. reporter: talking about free money for cars. zero percent financing, was never really free because

somebody had to subsidize that. that was automakers. now they're not so inclined to do that. take a look at numbers, at one point in 2016, around the height of auto sales we were at almost 10% of all loans 0%. now we are closer to 3%. that's because, well, it is going to cost a whole lot more to subsidize those cars and, the automakers are already suffering on the bottom line a little bit. you know the stock, if you look at the stock of the detroit three, for example, all of them had had a terrible year. this has been a great year for the market, not year-to-date for fca, ford and gm. they're all down here to date, some of them significantly. gm got as high as 45 this past year. now at 34. we compiled a list, neil, if you still want 0% financing. look at vehicles being offered. sadly, they hay may not be most

popular dealers. chevy dealer, equinox, gmc terrain, buick on core, chevy trax. a couple of different jeeps. and not most popular jeeps. most of the zero percent deals are 36 month loans that is not tremendously popular now, because if you spool it out to five years, six years, you can get a seven-year loan now. the payments come way down, regardless of the interest rates. so, free money. i guess it never really was free. neil: never really was. jeff, thank you, very, very much. jeff flock fallout on higher interest rates, automakers. housing is feeling that. tesla, what charlie is learning about plans to refinance there, talking about charlie gasparino. sir. >> we're talking about tesla a lot and the stock imploding and the attempts between elon musk and sec, but it is fascinating

the other big three, so-called profitable automakers are all in water in terms of their stock. gm posted a loss last year. largely tax issues. it was a paper loss but with tariffs, none of these companies are doing well. the market is taking it out on them. tesla is whole another story. tesla is fighting a battle when they will become profitable. they're fighting a battle of corporate governance whether elon musk is up to the job as ceo, they are also fighting a balance sheet battle. they essentially have billion dollars of debt, particularly if the stock doesn't move much from where it is now, they will pay a billion dollars, more than a billion, a billion one next six months in cash. they don't have a lot of cash on their balance sheet. because of that what we do understand, bankers from major firms they are coming up with ideas, i'm not saying tesla is asking for it yet, not saying tesla is pressing the panic button but bankers themselves

smell the need for refinancing and they're coming up with all sorts of ideas how to refinance that debt and how to like properly value tesla. tesla right now is operating at a loss. elon musk says it will be positive. it will be profitable in third or maybe the fourth quarter. still operating at a loss, if you look at the books and its market capitalization is higher than gm's as of friday. neil: tesla's market cap is higher than gm? >> yes. i believe, gm has 50 billion-dollar market cap. someone should check the math on this, tesla has like a 52 billion-dollar market cap. neil: the macro picture jeff raised for us, rising interest rates are generally not good for auto guys and not good for housing guys. i am wondering whether we over react to the rising rate thing, whether markets, latest examples of that, do we overreact or is

there legitimate concern this could lead, still get higher, higher? >> it could. i think it's a legitimate concern. i don't think without massive raging inflation, you predict armageddon, five handle on 10-year. neil: last time we looked at 10-year note, bond market is closed for columbus day but go ahead. >> automakers have another thing, tariffs, cost more to produce a car because donald trump is engaged, because president trump is engaged in a tariff war. that hurts the automakers bottom line. they are factoring that into the stock price. neil: chinese intranssy against. who blings on that one by the way? -- blinks. >> there will be a compromise. the math of rewrite will be marginal. it is nothing great. people saying greatest thing in the world. they gave a little, we gave a little around the edges and you know the president doesn't call

it nafta anymore. that is the only difference what went on with canada and mexico. china's a whole other story -- neil: well the white house begs to differ. >> they beg to differ about everything. although he is winning the overlay. i'm starting to like -- neil: all of sudden -- >> i'm not a never trump but sometimes. neil: sometimes trump. i think, a lot of his people and president himself when you say one thing critical they go bat, you know what. in the scheme of things, we have three 20 tour hour business channel, three 24 hour news channels it is not all monolithic. i watch some channels where they don't do that. >> i saw the guy from cnn acosta, he asked him a question about kavanaugh during one of his press conferences, it wasn't really a question, he basically said because you're a deviant, sexual deviant yourself, how can

you nominate brett kavanaugh? it was like almost that -- neil: i don't remember that. >> i'm paraphrasing obviously. it was almost that stark and that contentious and just so over the top. i was like, wow -- neil: my view, much like the stars who have a political bias, i don't care your bias, you're absolutely free to have it, take the risk with your fan base for those who might be ticked off by it, but i believe in the coverage of the president, if you see something bad by all means get it out there. and if you see something good, get it out there. we have time to do both. i never understand -- >> i'm pretty tough on people, particularly interviewing them, but isn't there a less contentious in your face way to answer the question that he did? jim acosta. i'm sure he is a good reporter and does -- i've seen him. he is very talented broadcaster but i don't understand why you got to like be that overly contentious with somebody?

i mean there is a way of doing it where you ask the tough question but you're not, mike wallace, grew up watching hill. he wasn't that -- he didn't call you names as he was throwing out the question. neil: you can be a aggressive, hard-hitting i don't watch him enough to know one way or other. >> right. neil: there is always a risk here as a risk, you don't want to be too in bed with somebody. >> that's true. that's true. neil: you want to be fair and i believe -- >> we try to do it. neil: we try to do both. you will tick off people who will say one critical thing you read, whatever you're never-trumper or you're horrible or say all sorts of jokes about me. that hurts me deeply -- >> i've been called a meatball by some of the trump kins. neil: that is me. everyone has to calm down here. where you deny people balance and agenda on the right or the left you're ill-serving them. >> i've been covering tesla. one minute people think on tesla i'm the mouthpiece of the guys

short. next thing i'm hearing from the shorts, oh, do you own shares? one guy said, one semilegitimate analyst at, just basically raised question, if you own shares in this thing it is really dead. like i own shares of companies i cover. neil: why should it be surprising someone at cnn said something positive about the president or agenda, why should it be surprising if someone watches fox business or news says something critical about him? we live in such an environment it becomes like professional wrestling. >> i saw during the financial crisis i saw people attacking me as pumping up the banks. one idiotic writer at "vanity fair," brian bureau, blamed me for and other people taking out bear stearns. it was that dumb of a piece. neil: you did in fact take out. >> i did not. they took themselves out. i just chronicled it all the way down. neil: you remember, we used to

call you mr. melt-down. >> really? neil: i did. charlie and i are joking, pontificating as president arrives in orlando. just be fair and balanced. i do three hours a day, news channel and business channel. charlie is on a gazillion hours. we have all these news networks and business networks it is not monolithic. you don't have to be a never-trumper or always trump per. you know what that is, and adele i'm still waiting. i don't see the phone ringing. we'll have more after this. (vo hand) can we talk?

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we're all under one roof now. congratulations. thank you. how many kids? my two. his three. along with two dogs and jake, our new parrot. that is quite the family. quite a lot of colleges to pay for though. a lot of colleges. you get any financial advice?

yeah, but i'm pretty sure it's the same plan they sold me before. well your situation's totally changed now. right, right. how 'bout a plan that works for 5 kids, 2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now and as your needs change from td ameritrade investment management. neil: the president has arrived in orlando, florida, for a law convention, a law -- i think a law and order convention is what trying to call it here for law enforcement personnel, what have you. also on the plane with him was deputy attorney general rod rosenstein. we're told the two did speak on the plane. when asked about it later on the, how that conversation went the president had one word answer, great. he is shaking hands with those who been waiting to see him in orlando right now. of course a couple of very, very crucial battles going on there for the governorship and

separately for the senate. this on the same day we'll have the ceremonial swearing-in of brett kavanaugh. he is already an associate chief justice, associate justice i should say on the supreme court. it would be ceremonial tonight. not ceremonial going on, very real talks involving mike pompeo and state department and his counterpart in north korea. even in china he is already said that, secretary of state, that the talks with kim jong-un have been productive. they're trying to set the stage for an event that, new meeting or second meeting between kim jong-un and the president. former assistant secretary of state under president bush 43, robert charles. secretary, what do you make of what's at stake for these ongoing north korea talks? i mean they have talked about sites that they could make available to american inspectors and others to see, that they have been denuclearized whatever that means but beyond that we don't know, what do you think?

>> a couple of quick observations. not surprising that today secretary pompeo got a little bit of a frosty reaction in china. he raised issues that are important and nevertheless a little bit contentious. one is fair trade. one is respect. the united states respect for taiwan and one is human rights inside of china. the china fees are probably also a little bit edgy because he had a great meeting sunday with kim jong-un in north korea and what they agreed, at least we know, part of what they agreed they would let inspectors come into their nuclear site, the key nuclear site. a this stage of the game the other observation i will make this is a long process and we all have to keep a long view. they should be working on a framework agreement right now. they should look at a ticktock of action items. this will take time. very circumspect -- neil: second meeting until some of those issues are resolved? >> my sense, behind closed doors at the sort of below the ministerial level these issues are being resolved. so far be it from me whether to

say a meeting at the presidential level should happen again. it should be dependent quite obviously on a couple things. north korea coming forward. south korea being ready to work hand-in-glove with us on the same issues. and china standing firm on the sanctions. neil: secretary, always a pleasure. thank you very, very much. see on the left of your screen the president departing the airport heading out to a law enforcement convention. he is very popular among the law enforcement community. he is expected to echo that with a big difference for this particular powwow. he has deputy attorney general rod rosenstein with him. more after this.

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i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do. neil: all right. the president has arrived in orlando, florida and will address the lawn was the community and that the crowd that loves him dearly and probably is relieved that brett cannot is sitting on the united states supreme court but there is some money at the white house tomorrow but he's already an associate justice but for the cameras in the event tonight at the white house but stocks are loving all of this. they do have a funny way of showing it. we have hit this defining point in the markets between loving the improving economy but not the highest interest rate cycle with it.

>> a lot to keep in mind as we head into the earnings season. let's start with the perspective it were down three straight days in a row but a few percentage points off record highs. markets are up on the year and don't forget that and at levels that a lot of fund managers would be happy with in long-term averages. as we head to the earnings season for the third quarter receipt outside the gains and losses technology might be the sector to watch. let's check in on financials. great places to invest the last few weeks when interest rates go up and it's half of the ten year yield in seven years and consumer loans are pegged to those yields in mortgage rates have been the highest in seven years and auto loans and more money for banks who benefited from arising rate environment. bitter battle for the supreme court and kavanaugh combination not impacting targets at least on the bottom line but i do want to point out the fear gauge. volatility.

yes, highest since june but backwardation but let me claim what that means. it signals investors are more worried about today and tomorrow than they are a few weeks or a few months out. that's a little bit concerning. look ahead to the christmas season and holiday shopping because we're expected a robust spending season with $1.1 trillion excited to be doled out. that's up from last year and as you know consumer spending drives the corners of the us economy both ongoing trade war with china, big retailers, walmart and the like source their goods from china and warned of higher prices for the consumer. it may not be 10% in tariffs but the company is preparing its customers for higher prices to come if the trade war continues. neil, does that impact sales at some point? neil: and does he have to say it's a possibility but were doing it for the country et cetera et cetera? a lot of people don't know about it. >> as a consumer, it drives the economy so if it impact them and

how much they spend he would think on the bottom line the gdp result will show up at some point. neil: it always does. thank you very much. in the meantime, we've been following the volunteer and want to get to foreign market felons including the presidents meeting or mike pompeo's meeting in china with the north korean leader but i did want to address the other departments that susan just raise. john a trump advise - the president has argued in the end it's the economy that went out over everyone's fears. do you suspect that? >> i do. it was going back in the early '90s by the clinton team. economy is stupid. but we have to recognize that the economy is tied to so many other things in a global economy so we do have national security and other things that play into that which is why i thank you will see what mike pompeo is doing and secretary pompeo with the chinese. we need them on north korea but

also need them to stop the malicious activities from an economic point. neil: getting tough with them, it will be tough fighting for consumers. it's interesting to point out with the shanghai composite falling 3.7% that would be the equivalent of our dow falling 1400 points in a single session. the market well up 20% from the highest but ours anything but. how long can i continue? >> let's hope not too long. there's a myth that somehow the us is winning if china is losing and if markets are going down. what a dangerous point of view. of not forget that nike, second largest market is china. mcdonald's second largest market is the chinese consumer. tarbox has 3400 stores in china and on the way to 7,000. apple sells one fifth of its iphones in china. if we go to war and we seek to weaken china we will be weakening the most dynamic

companies in the world and that is american companies. neil: when you see all of that, how do you think going forward this works out? i always look at the north korean situation in china trade situation is joined at the hip - one design approval of the other improves, what do you think? connect to a certain extent that's true but i do know the chinese have recently and i say in recent years recognize that north korea situation was untenable and they were willing to help with despite our trade disagreement. i also think from a long-term same point is not going to be the us when, china loses. we are in a strong position right now and china is in a weak position which is in what the president is trying to capitalize on. we both want a china and us when in their reciprocal trade. neil: do you think in the end i know we can talk about markets they go there a way but in a

bull market, global market, everyone is going along that but ours has been the distinct leader, not exclusively but better than developing or merging markets and better than most european markets, italy in particular right now which is been crushing it lately. wondering whether that telegraphs trouble on the road. that we could be missing. >> i don't think so. markets are generally wise but what it does remind us is that the us was already winning on the trade front. the reason it was already winning is that other than hong kong and singapore are the most open country in the world to the world plenty. what that means is there are companies are most exposed to market signals around the world and they are stronger. it means the workers who comprise us economy get the most in return for their paycheck. if we move against this us will no longer be the global stock market leader in countries that

basically put up barriers to capitalist market signals invariably go in the wrong direction. neil: thank you, both. we'll keep an eye on the president and the law-enforcement speech and what it makes it stand out is who he is with right now. rod rosenstein, deputy attorney general is on the plane. we learned data talk and the president later said in his work, great. we don't know more beyond that but he is there and at this forum. the president attorney general is not the deputy rod rosenstein is. read into that what you will. speaking of florida, it's a bull's-eye for the latest hurricane threat and could be a doozy. still earlier to tell. but the weather chief meteorologist has been monitoring what they call michael very closely. sir. >> yes, hello. in fact, i got cart off deal there back michael has been two or three weeks making and this

is after florence. you can see this pattern revving up again for the endgame in the western caribbean. very often hurricane season go into the development and a lot of the october you know how i like the situation and point to another a lot of leftovers for their big hurricanes in the gulf of mexico and around the southeast lookout in december very cold as certainly linked to that. getting back to this. it's in fact the opposite of lawrence and that the overall pattern in the western sphere while it approached the carolinas was beginning. this is going the opposite way. you saw a bunch of typhoons in the southwest pacific and rosa and now sergio in the eastern pacific and in the pulse of the moment is coming to the atlantic basin. we expect this to develop to a major hurricane over the weekend and sending e-mails out and look out for the gulf coast.

they probably did this only been sensitive but this'll be the strongest hurricane to that part of florida since 1995. not only the intensity there but it is going to run rapidly northeastward through the coastal carolinas and dump a lot of rain in a quick fashion on areas that would devastate by florence and so will not see two or 3 feet of rain but could see six-12 inches of rain through soccer liner, north carolina and coastal areas and the storm will move off the mid-atlantic coast and head northeast out to see but it's a classic late-season developer and watching what happened that the shearing those over top of the weekend is coming off and coming right into the gulf of mexico and in an ideal setup though it will develop rapidly and become a major hurricane between pensacola a little wednesday or monday night. neil: to that end governor scott has already requested the president declare the pre- level emergency for the state of

florida and do you think that's fine? >> absolutely. had me on a couple of times where we had going on and it may be a little overdone but this is the real deal. member, lawrence even though it begins at the court remained a big, powerful hurricane with winds spreading out. this will be a fist of fury but will be much more intense winds at the center as it approaches the florida coast. the oval all pattern is it is october and wilma came up out of there in october and go back to 1950 hurricane king came out of there and the general area in we saw opal in 95 and the pattern similar to that you focus on the florida coast and that florida panhandle will deal with major hit through the coastal carolinas. by the way, we spoke to the east this pattern we saw gordon and

alberto how warm it was in a set pattern and had this happen before and we analyzes but guess what, when this was off all of this comes fullbore and it will turn around. were expecting a cold stormy winter for much of the united states. this is a dividing line for the storm over here. neil: joseph, thank you. an eye on it which, we will. in the meantime, waiting for the president of the united states and his remarks to the chief of police with the convention going on in orlando, florida. rod rosenstein will be with him. deputy attorney general will not. of course that alone raises eyebrows. questions back and forth as to whether the president and mr. rosenstein chatted with one another but were told they did but we don't know what came of it. we know the president described the conversation as great a little more to this

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"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. neil: google could be in trouble. stock is standing losses that it might have exposed private data to hundreds of thousands of users. this would have happened back between 2015 and march 2018 so it's been a wild but google

opted not to share this news with anybody for fear according to the wall street journal of inviting regulatory scrutiny. this has come to pass regardless and development sense but again fears of repercussions and a pretty wide screen data breach that affected hundreds of thousands of users. will keep you posted on the follow-up. the stock has been taking it on the chin. technology chin and had stocks are not going to help matter any. ted cruz in texas and was seen to be a prohibitive favored that it was deemed to be republican but as cumbersome and can tell you that's not such a given these days. connell. reporter: that's right we came here. we wanted to get a firsthand look at the enthusiasm. we are here at the baroque rally that will begin at a local college. the gym is filled up with young people spoke to many of them and they are excited about their

candidate. i spoke to senator ted cruz one-on-one at the campaign headquarters in houston a little earlier today and he told me in his view something changed about this close race in the last couple of weeks. with the fight over but cannot in washington. take a listen. >> box has a lien our state are you more likely to win this race then you were a couple weeks ago before the cannot process yet? >> oh, sure. we would win before and now we will win now. in texas there are, conservatives and liberals. this election is all about turnout. if we turn out, since conservatives we will win. i think this cavanagh battle has energized a lot of conservatives and woke them up to just how extreme and crazy the left is. reporter: cruz is right. he does have the advantage numbers wife. democrats here in texas although the maquettes will tell you some of that is changing in their favor especially with the enthusiasm this time around. it was interesting that they

pointed to the cabin up process has energized the report's who he said had become complacent in the early days of the race. o'rourke has arrived at the committee college speaking to the students in the next few minutes. will report back later on that today. interesting race. by the way, this is just the start of our midterms. later on this week will be in tennessee following the closer they are between former govern governor. neil. neil: you had taylor swift weighing in on that. any chance you get a one-on-one with her? reporter: my producer has been put on notice that if she's unable to book the occlusive dealers at interview, she is fired. we'll see if we can work that out later. neil: it could be interesting. could be impactful programming. thank you, my friend. as you might imagine, both parties are trying to use the

whole controversy over the cavanagh confirmation to rally their respective basis and it could work. it could help democrats and it is helping publicans in the senate races, or so we are told. often times that can be wrong but how is that possible? we have two guests and we begin with you, carrie. did you ever imagine when this whole thing started that a supreme court pick could weigh and influence a midterm election? >> well, we saw the vacancy on the supreme court was a big factor in donald trump election. the fact that he ran on filling justice scalia feet with someone who liked school yet would be a constitutional conservative and will follow the text and law of the constitution. it had a huge impact. americans want to see this on the corporate this drove people to vote for president trumpet your people will feel an impact

in these elections, as well. i'm happy for my perspective that it was a win for americans to see that the smear campaigns were not endorsed and hopefully that will help and encourage that behavior in the future because that's a simple way to do our confirmation process. neil: we can talk about that all day but here and i wanted to get a split read. will it help rebellions in the senate races and how can you have it going to different ways? >> because of the different electorates. i have to say, neil, it's far too early to make a judgment on how that will play out because were so weeks away from election day. if you think about the 2016 presidential election, think about how many swings in terms of energy there were in october of 2,016 and i think we will see the same thing again. ted cruz might be wrong because now that we have a five-four

majority conservative on the sabine court republican voters were energized for a couple of weeks as the process was ongoing but may become complacent again and this begins to fallout of the headlights. democrats have been galvanized since basically president trump was president-elect trump. i know that in north dakota right now the polls have kevin and heidi but after the interview he gave the new york times you might see the numbers get closer. neil: you are quite right. four weeks is an eternity in politics but carrie, on the september issue when this move on the part of democrats out of new york and others are saying there may be impeachable grounds or not letting it fly and i am sure if you are chuck schumer hearing that they want to move on and the focus be something

else. this could hurt you. what do you think? >> it's another example of the democrats using this process to come out of the closet as being credibly extreme on anything. people were put off by their attacks on due process and the fundamental american visible of innocent until proven guilty. there's a lot of people who are questioning is this the party that represents me very well. if they decide to align themselves with let's impeach him and try to as a senator geraldo said this weekend let's put the asterisk next to his name. that will get that issue alive and people going that is not the right direction and i don't want to go that far and most americans would like to say hey we had our fbi investigation and a chance to look at this. watch along the lines of what susan collins said, you can be for women here while being for due process rights, as well and moving forward. neil: the votes that were etched

in stone regardless but aaron, if i could switch gears on what you make of the rod was assigned with donald trump today in orlando and the fact that he traveled with him on air force one, obviously, the guide will not get fired. without wishing mr. rosenstein ill, after the midterms is he gone? or does he stay on and maybe have a more prominent role? could he get the president attorney general job? >> i highly doubt he would get that promotion and you are probably right that the likely scenario is that he will be gone after election day and i do think that president trump, right or wrong, thinks he has the wind at his back and got good advice not to fire rosenstein before election day so there is no saturday night massacre headline come through because that would work against trump and the republicans going into the midterm. neil: ladies, thank you both very much.

quick peek at the corner wall and the president is getting ready to speak at the chief of police convention going on in orlando, florida. the dow is down 148 and a quarter points. in between the worst of the day and the rest of the day but this has to do with concern about interest rates which generally would be a good thing since the higher interest rates are because of in a permanent economy but the battle back and forth is they don't know how high they will go. right now at about three and a quarter on a ten year note and mortgages are pegged out and auto loans are pegged it out and no one knows how high is high enough we've heard from the federal reserve that were a long way from neutral which means we got on the way to go and if you buy the consensus argument will see one more hike this year and three next year and you build a corresponding pressure in the general market that nothing to do with the federal reserve does you've gotten across the board back up into industries. the end of which is simply cannot get full appreciation.

people are selling first and trying to ask questions later. good thing the market is close to this could be bad if it were open.

neil: we are awaiting president trump who is speaking in orlando, florida at the chief police cupboards. to use the speech as an opportunity of not only to rally support post the kavanaugh denomination in a brutal but the way he was treated along the way and how that could drum up votes. what do you think? >> that's a good strategy. basically it's been the first big fight the republic of the pad in dc in a while where they have one in the senate. mitch mcconnell is largely avoided the price on immigration worried about the shutdown and avoided bites for the law and

now they have had it. this is a reflection and midterm election so these are the redmeat things that get the crowd going. it's already shown in the polls of our. neil: what do you make a broad rosenstein and the president on air force one leaving there with him at this event? >> it's an interesting choice that seems to be a public signal for the president. he is secure in his job. it's been an interesting story ever since we heard he's was being fired or had resigned and it turned out that maybe that was reported to anxiously before it was confirmed. this is showing he backs them and even as much as this morning people were thinking he would be gone by the election but now will have to see. neil: the consensus seems to be building after the election who will be gone this might be a four-week friendship and don't let the door hit you on the way out, what you think about? reporter: the president stresses personal relationships and getting to know people.

folks he doesn't know he can draw opinions on and it can be hard to fight against that. he said today he did not know him before and got to know him better. if they can strike up a personal relationship where the president believes unlike them he could last in the job for months or years. who knows? it is washington dc and people get fired everyday. neil: right about that. jeff sessions was not so lucky. he likely would be got. right? >> i don't think they have ever bothered or become friends. senator sessions now attorney general sessions is a different personality and style and president trump they are basically polar opposites as far as personality goes. i don't see him sticking around especially since his own colleagues in the senate have already been saying as much themselves. neil: for the president in his midterms and in terms of tomorrow you've always committed a strong economy and lately the strong markets but now he has the added populace ringel talking about the treatment of the men now sitting on the spring court. how much does that galvanize and get out the republican vote. i know you touched on it but

it's still galvanizing that will be a vote in the senate race. not so much the district by district congressional and house races but word democrats are favored but - >> congressman can use to their advantage because a couple things from change sense trump entered the scene. whole groups of democrats have activated who never were politically active in opposition to trumpet republicans have seen folks that ever came to the rallies or at the republican events and a lot of folks who were civilians are now involved so republicans can bet that needle by getting votes to the conservatives in the trump people to come out and a lot of places like in virginia where they are worried they will be able to bullhead but that is a difficult thing and the fight over the nomination hit that perfectly. republican, conservative, neoconservative trump people they all want kavanaugh. >> one thing i have seen and

i'll defer to your expertise is uniting between the trump thing loyalists and the republican party what i call the old republican party that seem to be joined at the hip with this treatment and anger over judge kavanaugh and that it would work to republicans advantage. i'm not saying bygones are bygones but they see the bigger battle ahead and joining forces. >> that is completely correct. i'm not seeing a closer bond on any issue basically so far as they said in this. this town got torn apart and so angry and so heated and republicans who do not like trump got heated and came out completely. you had the lion lindsey graham hollering and working and they are so different politically you never would've expected that senator lindsey graham would be a conservative hero for

defending president trump nominee to the supreme court. it's crazy town. neil: you are right about that or that president bush would be in the role of arm twist the senators to vote for kavanaugh even though he knew it was helping his friend but also helping the president of the united states who we were told he was not a fan. good point, good seeing you, chris. >> thank you. neil: we will take a quick commercial here but the bond market is closed today at the stock market is open today. a lot of people without getting wonky, awfully that for another channel without lot of letters on it but when one is closed it can limit the activity in another but when we last left the tenure it was around three and a quarter% less party and highest event in seven years and likely headed higher. you were seen at in training abroad and inflation is a real problem everywhere. i say a real problem in that the nice, cap because reflects an improving economy. with the market is trying to grapple with is how much of an improvement are we talking about

and how high the rates have to go to address that. if before any of the strong data we get out you have the chairman of the federal servicing were long way from neutral. before any of that, hitting rate hikes are coming in three more next year might not get a separate what are we talking about? after this. i'm ray and i quit smoking with chantix. i tried to quit smoking for years on my own. i couldn't do it. i needed help.

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remember, the time to prepare is before you go on medicare! don't wait. get started today. call unitedhealthcare and ask for your free decision guide. learn more about aarp medicare supplement plan options and rates to fit your needs. oh, and happy birthday... or retirement... in advance. neil: you are looking at florida governor rick scott for a person in florida about to introduce the president of the united states and the president comes up, we will go there. you might recall an hour ago the florida governor as president to declare a pre- limbo state of emergency with hurricane michael barely his way toward the florida gulf coast. right now is a category two

storm, i believe, could be up to a category three but the governor taking no chances and asking for that designation early so he can get help immediately and recommend people clear a path. i don't know what his potentials are beyond that or what he's instructed koreans to do but this on the same day he is in orlando. on that and the timing of this with judge kavanaugh now justice kavanaugh, associate justice kavanaugh, ceremonial swearing-in at the white house tonight we will find blake berman. reporter: this is a speech the president is set to give any more before police chiefs meeting in orlando, florida for a convention there. afterwards president trump will get back aboard air force one, come back here to the white house for a ceremonial swearing-in for the new a supreme court justice, brett kavanaugh. that is set to take place at 7:00 o'clock later this evening, largely symbolic considering that kavanaugh had officially been sworn in over the weekend by the chief justice, john roberts. there are already called up on capitol hill from democrats to impeach the newest supreme court

justice but that is a very, very unlikely scenario considering one democrats would have to take back the house into, even if that were to happen, two thirds of the senate would have to go along with that process. president trump before leaving florida is asked about the democrats newest calls and he likened what brett kavanaugh had went through as going through a hoax. watch your. president trump: now they're thinking about impeaching a brilliant jurist, a man who did nothing wrong, a man who was caught up in a hoax that was set up by the democrats using the democrat lawyers and now they want to impeach him. i've heard this from many people and i think it's an insult to the american public. i thank you will see a lot of things happen on november 6 that would not have happened before. reporter: barely interesting thing before we thought air force one land and put up because after the present came

off the plane to the deputy attorney general rod rosenstein were told those two met aboard air force one, spoke together for about 30 minutes or so before the president left for florida. he spoke on the south lawn and those comments that you just saw there. he was asked if he has any plans to get rid of the deputy attorney general and said, as of now, he does not. neil. neil: blake, thank you. as of now. that's an interesting argument. can you impeach judge already sitting on the supreme court and let's ask mercedes. you are a brilliant leader and i'm wondering - >> thank you, neil. neil: can you deal that and what the basis? >> certainly, perjury. there are a lot of democrats saying that judge kavanaugh perjured himself during the time he just bowed under oath. therefore there are these issues about his drinking and whether he was drinking and whether there's any legitimacy to these

issues of perjury. then what will happen in the mechanics of it if the democrats when house which is being reported that it is likely and articles of impeachment begin their silicates are this entire investigation regarding justice kavanaugh from the beginning. it's already been report that there's been freedom of information act that has been sent to the fbi seeking the information and documents and investigative notes. now that the investigation is over this at length to it so they can get that information but can start this investigation starting january, right after if they win the house, of course. once it goes beyond house goes to the senate and is therefore said it exact right. you need a super majority. even in the past where there have been impeachments at the house they been acquitted . neil: i believe the president will come up soon. i don't care about the politics but you are saying and impeachable offense because you perjured yourself misstating how much of a drinker you were in

high school, you've got to be kidding me? >> i tell you - i'm a defense attorney neil and my clients are looking at this would've been accused of wrongdoing and they are adamant they are innocent and they are scratching their heads, too. this is something that a lot of individuals that are facing allegations look concerned. presumption of innocence is necessary for the help without. neil: seems like a whole new market mercedes, thank you. president in orlando, florida. were showing you that he did come and you can see with governor rick scott of florida with rod rosenstein and deputy attorney general. this is a lot worse than committee, the grand president. president trump: great to be with you. i want to thank the chief for the wonderful introduction into the lifetime of distinguished service and a special friend of mine. i'm thrilled to be here in the

great state of florida with the incredible many women of law enforcement. on behalf of all americans i want to express our eternal gratitude for what you do every single day to protect our families and defend our streets and take down criminals. what you do is keep america safe and nobody does it better than you. thank you very much. [applause] i also want to thank your amazing families because you know about them you cannot do it. they are here and they are indeed interested people. so, thank you to the families. i appreciate it very much. [applause] we are thrilled to be joined today by a true friend of law-enforcement, governor rick scott.

i will tell you that rick has been incredible when it comes to law-enforcement and anytime you need funds from the federal government he is on the phone, mr. president we need more funds. what is it for this time, rick? for law-enforcement. i say, you got him. speaking of that - you got them. [applause] you got them. when law-enforcement wants and they always and they are reasonable and what you do is so incredible. rick is commendable as governor and he's your biggest fan. thank you very much. also, another one of your big plans i will tell you that his attorney general pam bondy who is with us today. thank you, pam. thank you very much wherever you may be. she's in this big room someplace. thank you. credible woman. [applause]

thank you to rod rosenstein for being here but he flew down together. the press wants to know what to we talk about. [laughter] but we had a very good talk, i will say. that became a very big story actually. [laughter] we had a good talk. as hurricane michael nears landfall we are working with state and local officials in florida to take all necessary precautions and we urge all residents to be prepared and to heed local officials and i told rick scott that we are ready for you. we have already briefed fema and fema is getting prepared and looks like a big one, can you believe it? it looks like another big one. we have handled them all. that includes the one that just left us in florida, it never ends. we are all prepared and hopefully it will not be as bad as it is looking. it looked a couple days ago like

it would not be much and now it's looking like it could be a big one. we are prepared, good luck. today i also want to extend my very special thanks to orlando chief john and the entire orlando police department for hosting us in this great city. where is john. [applause] you, john did great city. thank you very much. cut back i also want to thank the board of iac p and congratulations to your incoming president, chief paul. [applause] i have a lot of respect for the chief and i know the chief and i'm means i have to be here, next year, is that right?

looking like that, right? it's okay. are you guys anything i can do, i will do. very importantly - [applause] i want to recognize our thoughts and partners from around the world who have traveled here to share their experience and to strengthen the final cooperation that we all practice together and we have great, great cooperation all over the world and we deeply value your friendship and partnership. we thank you very much for being here. thank you. [applause] this year we probably celebrate the 125th anniversary of the international association of chiefs of police, regroup. today i stand before you as president of the united states to tell you that my administration will always honor and cherish in support the many women in blue and we are proud to do it.

[cheering and applause] working together we have achieved extraordinary progress in the fight against violent crime. we understand that reducing crime begins with respecting law-enforcement. for too many years we watched politicians escalate political attacks on our courageous police officers and i have never seen a more than over the last three years. disgraceful. politicians who spread this dangerous anti- police sentiment make life easier for criminals and more dangerous for law-abiding citizens. [applause] they also make it more dangerous for police and it must stop and

must stop now. [applause] before i took office, less than two years ago, our nation was experiencing a historic surge in violent crime. in 2,015, to the 2016 additional 128 violent crimes were committed nationwide compared to the two previous years and that they tremendous number of additional crime. over the same. we witnessed the steepest two year consecutive increase in murders and nearly half a century. we are turning that tight around very rapidly, as you all know in this room. we are taking back our streets from druglords, gangs and crim crimes. we are being tough and being smart. by the end of this year murders in major cities are estimated to drop by close to 10% from their

levels in 2016. i have director, attorney general office to immediately go to the great city of chicago to help straighten out the terrible shooting wave, we will straighten out and we will straighten out fast. no reason for what is going on there. [applause] i have told them to work with local authorities to try to change the terrible deal the city of chicago entered into with aclu which ties want grossman's hands and to strongly consider stop and frisk. it works and it was meant for problems like chicago. it was meant for it. stop and frisk.

rudy giuliani when he was mayor of new york city had a strong program of stop and frisk and went from an unacceptably dangerous city to one of the safest cities in the country and the safest big city in the country. it works. you got to be properly applied but stop and frisk works. the crime spree is a terrible blight on that city and we will do everything possible to get it done. i know the law enforcement people in chicago and i know how good they are. they could solve the problem if they were simply allowed to do their job and do their job properly and that's what they want to do. chicago we will start working with you as of today. [applause] in the fiscal year 2018 my administration brought charges against more federal firearm

defendants and more violent criminals than ever before in history of our country. and to help former inmates become law-abiding and productive members of society we are also working on a prison reform bill, very big and comprehensive. the best thing that could happen and i think we've already done we have record numbers of jobs right now in the united states. ever been a time where more people are working in our country than right now cut back and our unlimited numbers are in every category at record lows. they are record lows. african-american best in history, asian american best in history, hispanic american best in history. we are doing incredibly well as an economy and that is a great thing when you talk about people

coming out of prison unable to get a job and totally unable to get a job. it's a hopeless situation and now they're getting jobs. to a certain extent and a large extent because we are doing so well and employers are forced to take people that they may would not have done and some of those employers call me and get back to me and they say mr. president, it's amazing how good these people are. not all of them, not all of anybody or any categories will be great but tremendous response in these people have been given a second or in some cases a third shot at it. the economy being so great and the jobs picture pizza strong people are getting an opportunity and doing any kind of a job so i want to thank everyone in law-enforcement. i know it is a great thing. [applause] in particular i have to thank

the iapc working with us on this effort. endorsing important prison reform legislation all over the country. we're doing federal legislation, all over the country but you folks have been fantastic. every single day of my administration we will stand for law, order and justice. just two days ago, the senate confirmed a supremely qualified nominee who will be a faithful defender of the rule of law. [cheers and applause] and will defend the united states constitution, the newest supreme court justice, brett kavanaugh. [cheers and applause] i will tell you, when i decided on brett, i mean we have

tremendous talent in our legal system but i decided on brett, i said he's flawless. he is a flawless person. the best student, the best scholar, the great intellect, incredible record over many years, yet he is a young man. brett, congratulations this will be a piece of cake getting you confirmed. this will be so easy. it should go quickly, nicely. don't even worry. he was so thankful. he said, mr. president, this is the greatest honor of my life, united states supreme court, the greatest of my life. so i haven't heard say that again to me but i think he still believes it. he is a great person. false charges, false accusations. horrible statements that were totally untrue that he knew nothing about. frankly terms he probably never

heard in his life, he was this, he was that, he never heard of these terms. it it was a disgraceful situation brought about by people that are evil. he toughed it out and which toughed it out together. i have to thank the republican senators that fought so hard for this, it was not easy. it was great to be involved in this situation. a lot of would have said, let's give it up, go a different direction. we don't give up. you don't give up. just don't do it. [applause] he is going to be a great supreme court justice. watch, a great one. he will be a great one. we will perform the swearing-in tonight at 7:00 p.m. at the white house. that is a very exciting. so i leave here and i go home and i swear in a man who will be a truly great united states

supreme court justice. that is going to be my honor. thank you. [applause] and i'm going to tell him about the respond feign just applause. before i -- spontaneous applause. you knew way was about to say before i completed it. that is, all over the country i'm doing rallies and people are loving that man and loving that choice. so i think we're all going to be very happy. in order to keep every american safe we are also making officer safety a top priority. [applause] in 2016 a officer was assaulted in america on an average of every nine minutes. is this even believable? last week seven officers were

shot in florence, south carolina, a incredible state. one was killed. numerous were really badly injured. our hearts break for the family of fallen officer terrence karroway. we pray for his loved ones and for the officers who are still recovering. when a police officer is assaulted or killed it is a wound inflicted upon our entire nation. [applause] it is. and i have to say this, i don't think you understand one thing, how much our country loves you and the job you do. you don't hear it from them. you don't hear it from them. [applause] they don't tell you the real feelings. [cheers and applause]