>> we want to say again they say they haven't decided what they'll do with secretary mnuchin with respect to whether he's going to saudi arabia. a lot to discuss now as david asman get started on the next show. "bulls & bears" starts right now. david: from wall street to washington and across the country we are talking about the topics that matter most to you in your money. "bulls & bears" is back. hi, everybody. i am david asman. join me on our panel on her first day of their very own common dagen mcdowell, gary b. smith committeeman grew president, former bomb economic adviser and john layfield, layfield report ceo. gary, robert and john are all fox contributors. another volatile day on wall

street. coming off of the markets worst week since march. kerry beat him i wanted to go to you first. it did seem at times it would gain traction but it didn't. >> the last couple days the market i think after the onslaught of last week is trying to find its footing. you often see this with the waterfall selloff. 1300 points in two days, something like that. i think it's trying to find its footing. i like the action right here. i think it's trying to legalize. >> i see a lot of slipping going on. dagen: interest rates and higher interest rates are the worry and the federal reserve trained to lie down unprecedented stimulus during the housing crash come in during the financial crisis. if anybody tells you they know how this is going to play out, they are lying. they don't know because nobody knows. look at interest rate factors

like homebuilders down 26% plus autos down 20%. one person said i remember when mortgage rates were 80%. $123 million home in connecticut sold for $300,000 back in the early 90s when mortgage rates a percent. >> not surprising. we've had nine hikes since the fourth quarter 2015, but now we have four in the next 12 months. rates are going one way. oil prices have been going one way. we have a protectionist environment especially with the tech tour biggest trading partner. terrorists are not the where the consumer in a consumer driven economy. doesn't feel good. let me just finish. with respect to gdp that were all touting the next coming, the 1.5% increase is exactly the 1.5% increase that we have in the federal deficit.

when you take out the big picture -- >> there's nothing to be happy about. >> we're in a choppy environment and that's where we are. >> i agree about your fear about your fears. at the same fears. i do think there was a trade war and with prices going higher. the one thing i disagree with you on is the fact of the sentiment in the market right now because it's a bonfire. in 2001 when gdp went down to 1% it's because the market had crashed. bush tax cuts coming in 2002 and gdp goes up to 320% in 2004. 3.5% in 2005. 3% for the entire year. the difference this time is you had tax cuts come before the bull market ended and that's more than mitigated other factors. david: robert is a smart guy. let's stipulate that. smart guys always seem to fixate on the negative because it

sounds so bright and sharp. these things to worry about, these things to worry about. but about. when about. but when they're about. when the right come and take a how smart he was but he didn't mention low unemployment rate. he didn't mention despite the fed raising with the inflation almost nonexistent. corporate earnings strong. hold on. i'm lucky not a great environment where amazon is crushing it. people are dropping netflix. retail department stores are coming back. >> if you don't jump and he's going to -- i'm in the market. >> i'm going to go quickly one by one. in 2000 consumer confidence the last time it was that tired then we had the.com bubble. you can't go by consumer confidence.

history does repeat itself. with respect to jobs, no question i'm glad there's jobs. the last 20 months we were 211,000 per month. today were 180,000. no disrespect. jobs, payroll. gary, let me finish. 11 is still greater than 180 and gdp is doing better. but the deficit literally has gone up 1.5% which is the same amount. you can't ignore that. david: degen, the point is we've never do situation in my lifetime in which we have more jobs than people looking for jobs. you can ignore something like that. dagen: no, and i am a worry wart by nature. i bite my nails to anybody who watches the mtv knows that. i do agree we can still move ahead in the stock market because of this incredible backdrop whether it's unemployment and job creation, consumer confidence. three straight quarters of 20

plus earnings growth in this country. even with all the trouble -- i worry about china. i worry about the fact we are in a fight with china now and that nation is sitting -- david: we are to talk about china. president made it very -- he did it again last night. played a soundbite. >> raising rates too fast because they think our economy is too good. i do watch it every time we announced you have to raise interest rates. i'm very unhappy with the federal reserve. >> then you had janet yellen say i don't think it's wise for the president to be going in public to make this public good would you think? >> the federal reserve is the south entity if you will. the president allowed to make remarks. it goes against historic precedent like everything trump

does. the nissan two key points. one, the fed is there for one reason and one reason only. it's not the decelerated economy is to fight inflation. i just said earlier we had no inflation, so why is the fed raising rates? number two is the whole concept and we talk about in the past is ludicrous. to think we can cobble together these really smart people and they can be like the "wizard of oz" pulling strings here in there. they miss the housing bubble, internet bubble tremendous 2008. dagen: when presidents in the past look at lbj and richard nixon put pressure on the fed chief, you know what we got? the 70s and there's a lot of bad things about the 70s other than the polyester suits. the more he takes aim at the fed publicly, the more jay powell is likely to do the exact opposite.

>> dagen coming you've got something you want to say about somebody who is really the spiritual guide of this program. go ahead. transfer we spirit here today and everyday. before we end this segment, we would be remiss if we did not mention our late friend rande butner. brenda posted the original "bulls & bears" which launched in the show would not exist without her. she gave "bulls & bears" life with her brains, her spirit, humor and heart. she's a huge reason the show is a lovely large loyal following. i had the great honor of hosting the show in 2016 after her illness made it impossible for her to fill that role. everyone hears the loves her and mrs. her everyday. i know you're going to continue to do the show proud. david: well, i hope so. dagen: he was on the show before it was called "bulls & bears." >> randa and i started in 1999.

i can say this. she loved that show. she would've loved this show in this format even more. she just would have been thrilled in the desk right now is a lot nicer. >> and she loved her. because you met your wife -- >> in the studio in 2003. very important and meredith and his life. >> we love you. we hope you can -- we hope we can do you justice. more "bulls & bears" coming out. liberty mutual accident forgiveness means they won't hike your rates over one mistake. see, liberty mutual doesn't hold grudges. for drivers with accident forgiveness liberty mutual won't raise their rates because of their first accident. ♪ liberty. liberty. liberty. liberty ♪

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>> you thought a lot of tears. we cannot continue to have china take $500 billion a year under the united states in the form of trade and other things. >> the president threatening to impose another swift round of tariffs on china if they don't negotiate a fair deal with the united states. this after the trump administration authority imposed three rounds of tariffs on chinese imports. the total is 250 billion prompting china to retaliate against u.s. it's clear they haven't been

playing fair with us. a lot of different things. is there any way other than tears to deal with them? >> quickly three answers. i want and make it clear. the work with canada and mexico is great. nafta to point out -- >> i look at the end result. that being said china -- i don't think terraces the appropriate policy. i also think her she was not as much with trade as it is that with intellectual property and theft. number three, the answer and i was in the president's export council is to go back into tpp. if you want to hammer china, have trading agreements of the 11 companies surrounding china. new zealand. new zealand from atlanta. >> there's a huge difference between mexico, canada and china. 30% of gdp in experts united states. 19% are to the united states for gdp. we can get away with pushing around mexico and canada. its four by 1% of gdp. >> we are pushing around --

market following has nothing to do with tariffs. absolutely zero. july, august and september exports for july, august and september. we are getting seven-year. terrorists are the ones putting pressure. he was in freefall before. >> why can we push china around? we are much more important to them than they are to us. >> this is a nuisance to china. the president has done a wonderful job with the economy. they have done a wonderful job. the terra part to me is not how you deal with china. instead of having a trade war with all of our partners to have to get them together at some point. that's the only possible way. how about a little reciprocity. how about if they put a company in our country. they have to store their data in our country. how about a little reciprocity instead of putting tariffs.

>> hold on a second. it is clear for certain companies companies in the united states "the wall street journal" that are hurting as a result of terrorists. >> it's not bringing manufacturing jobs back to this country because the way these ham-handed tariffs are designed by finnish goods imported from china, but the parts used to assemble good in the united states are. a quote in the article we are not bringing jobs back to america. we are bringing jobs to different countries in southeast asia. i said this from the beginning you are going to hurt people in this country and hurt the very manufacturing. >> push hold on a second. they understand that statement. i think it's anecdotal and here is why. terrace just went in. how can these companies are to feel the effects? >> they buy in advance at the exit haitian therefore they're pulling back a little bit.

dagen: they showed no signs of going anywhere. there is real inertia. >> just the opposite. but to what happened with ford. down over 25% terminating thousands of employees. >> you said that canada and mexico dealmaking on the basis of what they ended up with. what if we end up with something good. would not show the pressure we been exerting works? >> the answer is yes, but what is the damage we get done in the meantime is a little different when you're working with canada, mexico and the truth is we were hostile to each other. it's just rhetoric. >> you have been for some time. where is the off ramp for president xi. where is it for president trump? david: they are eventually going to go negotiate. they will be meeting together. maybe at that point they'll get

together and make a deal. >> here's what chaps my backside about this. it's anecdotal, but listen to the businesses they know better. if they are telling you this is hurting their business, you better pitcher listening your son on the words of judge judy. you've created a swampy or environment. >> right now china is playing chess and were playing golf. i don't even think it's the same game. they're worried about 25 years. >> you know what, that's another thing so and it total. i heard the same thing about japan back in the 70s and 80s. they're so smart, they think so many years ahead. give them a taste of mick donald's hamburger. >> there's another foreign story. secretary of state mike pompeo is en route right now to saudi arabia. he's going to be meeting with king salman s. questions continue to be raised about the role and the columnist of oral

critic jamal khashoggi. fox news benjamin hall is in turkey with the latest. benjamin. reporter: stunning news out of istanbul and that is that saudi arabia is considering the reports and they were involved in the murder of khashoggi. according to the report they may release to it happened during an interrogation in my and it happened and has been carried out by agents who are simply trying to repatriate khashoggi to saudi arabia. at this time it comes out, would break up in something that has become geopolitical storm. we wait for more information on that. as you say, secretary pompeo is in route, in a run essay to saudi arabia. he's due to arrive tomorrow.

after days and days of delay, finally allowed inside the consulate. about five hours. we don't yet know and expect a report from them, the turkey all along has said they knew exactly where inside the consulate khashoggi was killed in the attacks of his murder. saudi arabia has responded angrily to the threat of sanctions, particularly after president trump said he would consider severe punishment if they were found guilty. they reached a statement on sunday which said, quote, any action taken against the kingdom for the disappearance with the mad with harsher actions. that could have meant a significant price in oil prices to $100, $200 a barrel. saudi arabia has been releasing another treat out of d.c. saying the kingdom of saudi arabia extends its appreciation to include in the u.s. for

reframing the ongoing investigation. if this news comes out in means they are expecting a hand in it and will be involved. we will find out and let you know. david: a lot of questions. benjamin, thank you very much. coming here come elizabeth warren releases her dna test results. why this should send shivers down the spine is eight euros and investors here in the united states. more coming up. all money managers might seem the same, but some give their clients cookie cutter portfolios. fisher investments tailors portfolios to your goals and needs. some only call when they have something to sell. fisher calls regularly so you stay informed.

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david: senator elizabeth warren releasing her dna test that says she showed drawn evidence of at

least one native american in her family tree. president trump another republicans have mocked her in the past for this claim, but now she is fighting back hard at some say it the unofficial art of a war and presidential run should wall street be concerned? would you need? dagen: know because based on what we've seen in the last 24 hours there's no way she will love her even the democratic nomination and not not because of her atrocious financial policies. this is based on, give her credit for self identifying early on. claiming this back in the 80s, even earlier. you have to go back six to 10 generations to find a native american ancestor. that's about the 1700. this is the latest information i could find. she is potentially between 164th or 11,024th. on the high end of that, she is

.09% native american. your average european american is point when a percent. she is even less native american than a regular person. >> of us concerned about her family tree than i am about her economic policies. if dagen is wrong in this one becomes president, she will overturn the tax cuts. she's going to bring back regulation and force peers she signed on to burn medicine plan, that are it. >> i don't care she's the daughter sitting bull. and because she was. i could care less. the socialist movement has gained some traction and you can't discount this in the republican party. democrats discussed a right-wing movement which became a tea party, which sean boehner and paul ryan underestimated the value of the tea party. would have been next if it migrates, which is more towards the middle. the tea party didn't and they lost relevancy afterwards.

>> dagen said we don't have to worry about senator warren. >> bernie sanders is no threat. >> but we have to fear is the mentality and john is onto something. that mentality is this. it is a new people, low masses out there. advocate your personal responsibility. i'm very smart. i went to harvard. give me your money. i will make decisions for you because you obviously don't know what you're doing. that's why they want to raise taxes. that's why they want to single payer health care. solely in their power. dagen: corey booker, -- of all sign-on to medicare for all. >> a bumper sticker. >> was just talk facts. this didn't have anything to do with whether of a single payer.

>> that's what i'm telling you. >> the question was whether that have to do with wall street -- wall street. we have a midterm that will actually be more impactful to wall street, who's running financial services than it is who's running in 2020. with respect to her think what john was saying, the far left for the far right movements, neither of them are good. i don't think at the end of the day that anyone paid we are going to a single-payer system tomorrow. on the flipside, i'm a centerleft guy. let me finish. i believe health care is a right and that's a great debate for democrats to have against republicans. whether we're talking about socialist or far right wing conspiracy, we have to get back to the senate. >> called on the second. why do we have to get back to the center? >> that's her most of the country wants to be. the most pragmatic solution where we don't have to have a fight over every trivial thing for this one when thousands. you may not like my answer.

>> hold on a second. that's not my issue. i could care less about that as john said about the whole daughter of sitting bull. my point is, though, the left wants the more centralized power and centralize decision-making as opposed to the right. i'm all for individual liberty. that's what i think a lot of the right is about. dagen: i think it's a big deal she traded on her ethnicity by changing it. i watched that video store audience didn't have to and she was spiking the football doing a dance about i'm a native american. the whole thing opens the door for people to make even more fun of this woman. >> i think president trump made over a million dollars because that is what she was dancing today. dagen: if we are self

identifying, >> dagen, can anyone finish? i think you may owe a million dollars. >> of 100% texan, by the way. david: meanwhile, voting big businesses to help fight the city's homeless problem. the proposal pitting two new age executives against one another and you might be surprised to hear who isn't supporting the idea. that's next. a once-in-five hundred year storm

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favor of a new law that would tax big companies to pay to help the homeless. in the other corner, jack dorsey who doesn't think that's exactly the best way to do it. so we have marc benioff tweeting homelessness is all about responsibility, which is why we are supporting proxy, that's what the bill is called. in the response jack dorsey roback i don't believe this proxy or racquets proxy is the best way to do it. so then he challenged him over twitter. show me examples of the donations that you've made in what you've done to help salmon cisco improve the homeless problem. this is a distraction. a new mayor in place. not in favor of proxy, which would especially tax these large companies, mostly tech and they would have to pay half of a

percent of their gross earnings over $50 million a year. $300 million each year to build more housing, mental health treatment to help those that are homeless which is what they are currently spending per year. but also cisco, nancy pelosi and this will be voted on. it's interesting how two different tech titans have different ways to think about this helping those that need help. >> it is indeed peered susan, thank you very much. the mayor of sample cisco whose a progressive democrat says, and i think she's right, homeless spending has increased radically with no discernible improvement in conditions. the more the government spends doesn't change anything. >> sports programs for at-risk kids all over the world. six months ago working with the worst poverty in the world.

government can't run a one car parade. you don't need to tax these as mrs. all your going to do is run a business. robin had in new york city. private enterprise to do this. i've seen it all over the world this works. >> we started the war on poverty during the johnson administration back in the middle 60s. the poverty rate in 1968, 50 years ago despite the trillions we spent fighting the war on poverty is exactly the same as it is now. is there any more proof that more government money doesn't have any impact? everyone here would agree that there's some kind of means testing we saw the poverty rate dropped that's fine. probably a fair tax. >> and then there's the other question about businesses, whether they will just stay there and agree to be taxed it a lot or money if they're going to

leave. >> i am someone who's for public-private partnerships on infrastructure. as the fastest grower and multiplier of gdp are the best way to get things approved. it also helps social projects. that being said if the mayor is not for a comments is to override the mayor when he or she is saying this is not what is best for community. i like the idea the private sector wants to make a change and make a difference and it's hard to see how the private sector can engage with that without the mayor on their side. they're in a bit of a quagmire. >> part of this entrenched idea having lived there for a very long 11 months where they embrace homelessness. and it's gotten out of control now and they waited too long to do something about it. i was dodging needles almost 20 years ago. again, in terms of the concentration of technology

companies in the bay area, plenty of money there. the city's budget went up almost a billion dollars last year. >> their priorities are crazy, too. they banned straws, classic straws they hand out syringes. >> look what you've done with inner-city education. it's horrible, horrific current government cannot run these programs effectively. better to have these companies run by a private institution. >> what is dorsey denver homelessness? he's done the same thing that bill gates and henry ford in every other entrepreneur is done. he's created jobs. he's created wealth. those jobs create other jobs. the whole reason you have something like food trucks around is because you have large companies here in new york city and san francisco. those who trucks create other jobs and that's what they do. they create a positive work environment. dagen: you wind up like detroit.

>> the only thing i can say is that something has been one of the most philanthropic guys in the country. i don't think we should discount his voice completely. sounds to me they have done pretty good. >> to be fair we disagree with what he says about whether government should step in or not. >> amazon fighting back on the head tax in seattle. >> they finally had to pull it back a little bit. but one republican stronghold in the golden gate about to slip over to democrat or are the pollsters wrong again? we explain when "bulls & bears" continues. i'm ken jacobus, i'm the owner of good start packaging. we distribute environmentally-friendly packaging for restaurants. and we've grown substantially. so i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy.

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david: the 2018 midterms just 22 days away. republicans are clinging to his feet that is traditionally red on election night. hillary von has the latest from huntington beach, california. hillary. >> hey, david. democrats think that three seats in orange county will be able to add to their tally of 23 seats total that they need to take over the house majority in november. democrats think they can use

trumps economic policy to convince voters to turn out and turn orange county blue by talking taxes and tariffs. the 45th district is a midterm battleground in tech is a big industry here has been hit hard from washington trade fight with beijing. democrat katie porter is challenging mimi walters and porter tells me voters are very upset about high taxes and save the gop tax plan is to blame. >> they are very concerned about the trump tax plan and the fact that they are cumbersome and supporting trumps tax plan even though it's going to go out californians to pay more than their fair share of taxes. >> congresswoman mimi walters say voters may be set up with higher taxes in the state but that's not because of washington. it's because the democrats in the state capital. >> she's wrong because more people have more money in

paychecks. we have an economy that is doing great. they need to lower taxes is what the answer is. >> voters head to the polls in 22 days and real clear politics has this 8% of voters still hasn't made up their minds yet. >> hillary, stay with us. we want to bring in a conversation. do you think you can take this over? >> there's about 45 seats that have the possibility of being flipped from red to blue. the dems think we have a 55% chance to win 25 plus of those. it's going to be tight. the last week and a half with kavanaugh come a little more for the republican side. now the kavanaugh is behind us it feels like a little more going to the democratic side with respect to the house. with respect to the senate it seems trump has had a benefit with these rallies he's been doing.

>> according to match lap on "mornings with maria" last week he said there's going to be 60 races in the house decided by 1% or two percentage .2 percentage point to not take an historic in recent history. it's going to be a nail biter all night. >> question for hillary. i heard the same sort of bullishness from the democrats the last go around and they ended up getting crushed. i know that you have the democratic person on that little sound bite. of course it's going to be all blue. what is your sense in reality. do you think they're overstating their case or do you think it's really going to be close? >> they are putting money where their mouth is. they've poured over $600 billion into three different house seats here. back when the primaries were happening i talked to the national democrats and they told me the 13 to what they think will happen across the country. the other point i'll make on kavanaugh, congresswoman mimi walters does she seem democrat voters come through their doors

at headquarters and said they want to get on board with her because what they saw happening during the hearings. >> john, it's incredible. you think of this area of california. you've got miramar, navy seals training place in coronado. camp pendleton, et cetera. it's hard to think of such a strong military base going democratic. >> history is against republicans here. 35 to 38 times since the civil war. the president's party has lost seats in the house. the problem right now in america's we are looking for the tallest leprechaun. you pick republicans you don't want? i don't like either party and most americans don't. most will probably vote with their pocketbook and that could mitigate history. >> i just want to comment on the military. he's been against the lunacy. it is 22 military veterans that are running as democrats.

i've met all 22. and if they do well, that will be the biggest difference. what's interesting is most of those are against policy. >> which you have a president who's spending so much money. it's hard to imagine people voting for someone who takes their money away. >> sometimes a big personality doesn't take out the vote in midterm elections. 40% decline in midterm elections during his eight years in office. >> the thing that strikes me in the democrats have mastered this art. they are the masters of marketing. they are the masters of selling apple pie. how could the people think the tax cut against the tax cuts. >> the republicans --

>> let's be clear. because the tax deductions you can no longer take, the mortgage deduction you can no longer take. blue states especially, new york and california, the tax reduction has not been a net positive. >> you think they would rather not have the tax cuts in california? >> if they could get back their state deductions in state taxes lowered, local. >> of blue progressive leaders of sticking it to them all day long every day. >> if it's 100% democrat. every district. >> republicans also have a great message, but every time you bring in the democrat they say socialism venezuela doesn't work. that resonates. it's very easy that resonates. david: last word to john. coming up, seers once the world's biggest retailer and

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president trump: it's very, very sad what happened. when you look at that whole filing they did last night. it's very sad.

sears roebuck was a big deal so it's very sad to see. david: they announced plans to close another 200 plants in kmart insulations. it fell behind big box rivals like walmart, home depot and amazon. is this new evidence of a retail i.c.e. age? we have a producer here whose first house was a sears prefab house. they had everything. >> i grew up wishing for christmas on a sears roebuck catalog. you did have more retail stores

close in the 2008 financial crisis. they didn't evolve. >> there was one word and john is at the crux of it. hubris. you had eddie lambert come in who was a hedge fund manager. i know retail like the back of my hand. when i worked for ibm i consulted with retailers. retailing is a very difficult business. to think you can come in, eddie lambert no retail background and financially move things around. they needed to get a smart, expert retailer that knew the company and knew the merchandise, and they didn't. they bought kmart. they could have been as successful as a tj maxx or a

walmart and target. but they dropped the ball. it wasn't because retail was dying, it's because of the huh brings of eddie lambert, i place it squarely on him. >> i'm not going to debate gary. but i think brick and mortar businesses are difficult to be successful. unless you are a distributor for amazon, it's tough the compete. david: walmart is competing. >> even walmart has to change every day to compete with walmart. >> they evened a retail brokerage firm. this is a death decade in the making. eddie lampert, yes.

david: he's a brilliant guy, but that's probably what a lot of private equity guys make. they can also run retail. >> just to take a step back, when these hedge fund guys split into retail, they were trying to make all their money with sale leasebacks with the real estate and it didn't work. that's what happened to toys are us. david: what happened to the real estate? >> i think it will be tough. >> they will be able to get a vibrant store in there, not a dying store headed for the tar pits. >> their mode is a distribution centers. now you will have your goods, not in one day, it will happen in four or five hours.

>> it's sad that the sears brand is dead. david: thank you for watching this edition of "bulls and bears." evening edit starts right now. president trump: this is brutal. just wiped out the foundations, everything gone. we saw some areas that were hard to believe, actually, actually hard to believe. but in georgia, alabama, north carolina and south carolina went through a lot two weeks ago, and they got a little bit of the remnants on this one on top of it. but i want to thank fema. first responders for the law enforcement that's been so