department. as his pastor has say, he wore a badge of love and every time you were in his presence you could feel that love. that is what they all say. investigator turner was also fatally wounded. she passed away several weeks later. in her final days hundreds of members of the commune came to visit her in the hospital. they loved her. they spoke of the way she not only saved them from danger but changed their lives through her grace, her support, and her prayers. to investigator turner's mom katy and sister april and to sergeant carroway's wife allison and son terrence, brother daniel and sisters, your loved ones

died, it was a sad day but they're looking down on you now. they died as they lived. fighting to protect innocent people. we will always remember them. we will always profoundly be grateful to have with us two of these surviving florence officers who were shot that october evening. brian hart and travis scott. brian and travis, your continued service honors the legacy of your great friends. thank you for being with us. please stand. [applause] please stand.

thank you very. thank you for being here. the ambushes and attacks on our police must end and they must end right now. we believe that criminals who murder police officers should immediately with trial, get the death penalty but quickly. the trial should go fast. got to be fair but it has got to go fast. [cheers and applause] and that's happening. fair but fast. right? fair but fast. in the year before i took office the number of officers killed in ambushes rose to the highest level in nearly 30 years.

in the last two years, thankfully the number of officers killed in ambushes has decreased by more than 70%. i'm very proud to have sent to all of the police departments, all over the country, hundreds of millions and even billions of dollars worth of military equipment that wasn't being used. beautiful, wonderful, safe. great equipment. that wasn't being used. and other administrations didn't want to send it. some day you will explain that one to me. but it has been sent, it has been used, i had so many people tell me how happy they were and how many lives they saved. we'll never back down when it comes to protecting our police, ever. [applause]

ever. in my administration we strongly condemn hateful anti-police rhetoric. you're hearing it, you're hearing it. we don't understand it. we don't think it is even possible, that they can think or feel this way but there is some people out there that do. in recent years another dangerous trend has begun. a number of prosecutors in cities such as philadelphia and chicago, have decided not to prosecute many criminals who pose a severe threat to public safety and community well-being. every prosecutor takes an oath to uphold the law, not to advance a political agenda. [applause] last year in philadelphia robbers shot and gravely injured a deli owner.

he was a good man. he will never be the same. but he may serve his criminal, a sentence that is very short. in fact they're looking at about three years, if you can believe this. three years. dangerous criminals must be punished to the fullest extent of the law. that's the only language they understand. and those who file false police reports should face full, legal, consequences. [applause] [cheers and applause] every american child deserves to grow up in a community that's secure and safe from violence and free of fear. here with us today is the family of california police officer

ronil singh. i've got to know his family. they're an incredible family. they just left the oval office. we took pictures. and it is not an easy situation what they're going through. frankly they're going through hell. ronil came to this country legally in 2003 with a dream of earning the badge of an american police officer. that was always his dream. and that is exactly what ronil did. he devoted his life to defending the laws of our country. on christmas night he took a picture in front of the family christmas tree with his beautiful wife, their beloved son and sam, their loyal police dog. it is a picture that all of us saw. i remember it so vividly. i will never forget it. i didn't know i would get to

know the family and greet the family and, show the family the lincoln we room at the white house. i didn't know that. but it is an extraordinary family. i will never forget the picture. then corporal singh headed out on duty which he loved, to protect and to serve. you all know the story. because hours later he was gunned down and killed during a simple traffic stop. he was a vicious killer, this man that crossed into our country from the border just a little while before. a vicious killer. that could have been kept out with border security. with the wall. with whatever the hell it takes. [cheers and applause] could have been kept out.

but we're getting it there. we're building the wall. we're beefing up like you wouldn't believe. the military has come into action. people are trying to come into our country illegally because our country is doing well. they can't come in illegally. have to come in through the legal system. they have to come in through merit. they can't come in like this killer came in, just rode across the border, went through every sign he could go through. but the family is special. ronil was special. and today we're really grateful to be joined by corporate -- corporal singh's wife, anameka, and their precious 10-month-old son. where are they? they are here someplace.

stand up please. also here are his great parents and ronnie and vera, and his brother, where is reggie his brother? reggie, what a great family. [applause] reggie, come up here, will you please? come on up. this sun expected but this family, i'll tell you, you know, you get to know some people. come on up. they may let you up. i think so. [laughter]. i think reggie is, okay, come on up, reg. how about bringing the beautiful boy up? come on up. come on. mrs. singh, come up. come on up. you know what? how about mom and dad too, come on up. mom and dad and -- wife and baby. come on up. come. [applause] this is an incredible family.

that's great. got to see it, to understand what it is all about. hard to imagine what they have been through. hard to imagine. come on up, reg. you didn't know you would be doing this, reggie. sorry, reggie. [applause]

[inaudible conversations] >> i am the brother of corporal ronil singh. i would like to thank every single law enforcement officer over here. what you guys go through, i heard stories from my brother. this man over here, the singh family, supports him. whatever he is doing for the law enforcement, we support him. [cheers and applause] his team at the white house has reached out to us multiple times, multiple times. i don't think that has ever happened before ever. this man is is amazing. my family supports him. >> thank you. >> thank you. [applause] >> want to say something? you want to say something? so cute.

>> thank you very much, folks. please. take care of yourselves. [applause] she said, no, no, i don't want to speak. actually i do. i like that. i think it is great. >> this is something i didn't get to do at the office. i want to thank you personally, you're the only one that actual reached out gave condolence to the family. it means a lot to all of the law enforcement families here, for the sacrifice, my husband and his brothers in blue and sisters in blue have given. i want to thank you. we all, every family sitting out here wants justice for what happened to their loved one. that is what i want for my husband. [applause] >> thank you. thank you.

[inaudible] thank you very much, so beautiful. such a beautiful family and there will be justice. justice will happen. we have the people and we have the spirit. we have the mind-set which we are taking care of our law enforcement officers. and we're taking care of everybody but we cannot imagine your pain. just doing that, doing that, reggie, thank you very much. fathom what you've been through. but we pledge to you the unwaivering love and support and devotion of this entire nation. we have a great nation. it is getting better and better every day. it is getting stronger. we're not relying on outside

forces and outside countries that don't really care about us, other than to take advantage of our people and our system and our nation is strong again. and getting stronger every single minute. joining the singhs are more than 10 other family members and close friends along with 22 of his fellow officers. please stand, with you? please stand. 22 officers. thank you. [applause] so was he as great as they say? was. he was. i have a feeling you might say that. that is what i hear for everybody. thank you very much for being here. we appreciate it. you remind us all when our heroes fall our communities stand together as one that gets stronger. we'll always remember corporal singh as a hero, and a truly

great american. not one more american life should be lost because our lawmakers failed to secure our borders. tremendous problems occurs at the southern border, from drugs to the wrong people to being allowed to come in because of a corrupt and broken system that can be changed in 20 minutes. 20 minutes, if they want to change it. we have to do it the tough way. there is no reason for that. that is why we are calling on congress to fix our terrible immigration laws. stop catch-and-release. you catch them and you release them. that doesn't work too well with all these great officers i'm looking at. they never heard of a thing like that. to end deadly sanctuary cities. to stop the visa lottery program where they take lottery systems

and a country will put you into a lottery and then, deposit you into the united states. i don't think most countries are giving us their finest, do you agree? and that is what's happening. that is causing tremendous problems with crime and other things. and i have to tell you, border patrol, and i.c.e., and just law enforcement in general, the job they have done and the job they are doing is incredible. what they have to go through, bravery, i have gotten to no many, especially at the border what they have to go through and the danger is incredible and they do it. to them it is something they love to do. they feel they're doing it for their country. they love to do it and they do it well. to every mom, dad, brother, sister, spouse, child of brave fallen officers we honor today, america joins together and in

expressing our love, our gratitude, our grief, our firm resolve to be with you every single step of the way. we will never let you down. your loved ones were the finest and the greatest. they're all looking down, they're all looking down on their families. every time they put on the badge they knew they might not make it home. so did their families know that. each time they went on a shift, they knew it could be their very last. when that time came where they knew there was danger, when evil lurked, they did not run, they did not hide. they always ran forward. they answered the call. they gave their lives for all of us. the men and women of law enforcement devote their lives to protecting our children, securing our streets, and

keeping our communities safe. moms and dads can sleep soundly at night, kids can play with neighbors outside and grandparents can feel at peace in their homes because they know america's officers are the absolute best and they are always on the beat. the courage and sacrifice of our heroes is the reason our flag stands tall and bravely. our hearts beat with pride and our country remains one people, one family and one nation under god. [applause] today we thank you, we honor you, and we forever cherish the memory of our fallen men and women in blue.

you are very special people. there are nobody like you. nobody. god bless you. god bless our law enforcement. god bless the fallen and god bless the united states of america. thank you very much. thank you. thank you. [cheers and applause] neil: you have been watching the president of the united states addressing the peace officers memorial service in washington, d.c. this is his third such service. it es gut-wrenching moment. it doesn't get any easier no matter the president, including this one, who routinely meets with some of the families with the white house as he did with a couple of them who he brought up to the stage moments ago. we're told he will continue meeting with some of those

family members and friends as this service wraps up. do want to let you know what is going on a busy news day as well. the markets are up again. we've got the dow up about 109 points. a lot of that has to do with progress on the trade front. having nothing to do with china and having everything to do with auto tariffs that were ready to kick in to europe and japan. the ad pain mission is looking to delay them up to six months that was surprising development and telegraphed there could be progress on the trade front with china. treasury secretary of the united states is looking forward to a lot of work to do on the trade talks but they're going to happen nevertheless. we're also expecting in about 40 minutes, nancy pelosi and robert lighthizer, the trade ambassador, to discuss where things stand. they will meet at 1:00 p.m. eastern time to sort of lay out

the road map where things stand with china. blake burman, what he is hearing at the white house. hey, blake. reporter: neil, four main stories, four main headlines as it relates to tariffs and trade we can hit on here in a busy news day in washington first off over here at the white house. the president had a deadline of friday to decide what he would do with auto tariffs and whether or not they would specifically be imposed on the european union. what we're hearing from sources is, that that decision will not be outlined on friday. essentially it will be a punt from the president as the most likely scenario here what we're being told is, is there will be a 180-day window to sort of take this up in at some point down the line. maybe from here until mid-december and in any event many were looking to this friday deadline to see what the president would be doing with auto tariffs and the eu. now we're being led to believe, that will not be coming on friday. there will be a bit of a delay, one way you could look at it. let's go over to capitol hill

and china. because the treasury secretary steve mnuchin was testifying up on the hill today and he said that he will be headed to beijing at some point in the near future but the treasury secretary also did not give an exact date of when that might be. watch. >> i have no plans yet to go to china. we don't have a date set. would i expect that ambassador lighthizer and i who have been doing this together, we go together at the appropriate time. reporter: all right, let's stay up on capitol hill because this afternoon the u.s. trade representative robert lighthizer working with steve mnuchin on the china deal will speak with the top democrat at the house nancy pelosi. the subject we're being told will be the usmca the house, neil will eventually have its say on the trade deal between the united states, canada and mexico. we're also told of course that those two are likely to talk about china and where things stand there. that is headline number three.

speaking of robert lighthizer, across the street from me, headline number four over at the u.s. trade representative office lighthizer meeting with the top trade rep from canada, christa friedland. the topic of discussion there, steel and aluminum tariffs. of course canada wants those off as canada takes up in its open right the usmca deal. a lot going on here today, neil. neil: thank you very much. blake burman. let's get the read from all of this former dallas fed advisor, danielle dimartino booth, fox news's john layfield and "wall street journal" james freeman. i want to pass on reporting on fed futures contracts seem to be anticipating maybe because of the trade rift with china the federal reserve could be cutting rates and may be in sequence by the end of this year and are pricing pricing that in accordingly. what do you make of that? >> you know it was interesting because a few days ago, seems like a lifetime ago when the

market was down 600 points, the market actually started to price in the chance of three rate hikes in 2019. you know, neil, i can't tell you how big of a shift this is compared to where we were even let's say six months ago and the weak economic data that hit the wires this morning, we've seen industrial production decline in three of the last four-month. retail sales came out unexpectedly weak led by autos. in fact auto production declined by 2.6%. we know there is weakening that is going to actually increase the probabilities that those rate cuts will indeed be coming down the pipeline by the end of the year. the market thinks that the fed funds rate which is 2.5%, let's call it, the market is pricing for that to be at 2% by year-end that implies two rate cuts at least. neil: what do you think of that, james? that would not only be a 180 but a big switch in sentiment at the federal reserve? >> it seems a little from mature

to me. neil: absolutely. >> yes we got soft april data but still -- neil: that could change on a dime with one strong report. >> first quarter was pretty good, underlying weakness in the first quarter report too but overall you have certainly still a very healthy labor market. companies are looking to hire. we would like them to investing more. i think they would be when this trade, when the trade fight is resolved. but i think rate cutting probably a little early to think about that. neil: you know, john layfield it is interesting that the president we know closely monitors the markets and i'm wondering without making it about china on this by doing what he did with the european union and japan, namely delaying auto tariffs for at least another six month was he following markets? does he get concerned, wait a minute, i didn't anticipate this kind of response to tough talk on trade? or what's your view? >> well my view is the same. i think the president is very attached to the dow and the dow's progress and when it falls

he does something generally, either he will say there is more sanguine talks with china, some trade deal is imminent or you do something like we may take the tariffs off of canada and mexico for the steel and aluminum. we'll delay tariffs for cars in europe. you have car sales down. last thing you want to do now is hurt the economy but i do think this is all the president's right here trying to manipulate the dow. neil: danielle, if the federal reserve is called to the rescue to help lower things how much lower can they go? already the fed is on a wait-and-see policy here. would a protracted trade struggle change that. >> this is the catch 22, neil. we're talking about two rate cuts by the end of the year possibly, even with some of the data as strong as it is but the fed's only got 2.5 percentage points. that is half of what it typically has if the economy is headed into a slowdown in terms

of ammunition with which to fight a recession. the trade war rhetoric simply increases the pressure on the fed but at the same time there is only so much the fed can do without going to that next step which is beginning to grow its balance sheet again via quantity kwan which is obviously something we know that the president has been saying needs to be done prior to the election to level the playing field. neil: 5% growth with quantitative easing is when the federal reserve is scooping up all the treasury note it can get its hands on to force down rates. >> didn't work last time, neil. neil: i wonder. i wonder, james, too, whether a move like that would panic the markets? what does the fed see that we don't? >> people might say generally positive consumers, generally healthy companies, what is it that has got people panicked? i would say that look, if this is true that we're not going to have those new auto tariffs, if this is true that maybe we're headed toward taking the steel

and aluminum tariffs off mexico and canada, this is, this is all good news. you get these trade fights resolved you don't need to worry about getting the fed to juice the economy. investors and consumers take care of that on their own. neil: real quickly, john layfield, my producers are killing me on this, as they should, do you get a sense every time there has been a china-u.s. trade dip in the markets where it looks like things are turning south and don't look promising but you've been richly rewarded for buying on that dip be maybe not right away, but i think it has happened seven times now over the course of a little more than a year since we've been dealing with this, is that still a good rule of thumb or is it a risky rule of thumb what do you think? >> i think it works until it doesn't. that is over simplification. neil: i like that. >> at some point the president will cry wolf one too many times and people will not buy it. we're getting more entrenched into the trade war with china. when the president starts talking about fed cuts, that

emboldens china even more. i think both sides overestimated their position. neil: final word on that. thank you all very much. we're following development in the middle east, having nothing to do with oil prices although they are whipsawing on news that the is urged to pull staff from iraq amid iran tensions, similarly issued a warning throughout the middle east, all u.s. embassies, be careful. we'll have more after this. termites.

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neil: all right. we're up a little bit in oil here. surprising it isn't up more amid the middle east tensions that have been highlighted with the president of the united states working through the state department to put awe u.s. personnel who are located in iraq on notice maybe they should leave. similar warnings from the state department to all embassies in the middle east on the same issue that they should be in on

high alert. all of this seems directed to iran. the president will meet with his secretary of state mike pompeo in a little bit oaf an hour from now. let's go to fox news national security analyst walid phares on all of this. something is percolating or building with iran. i don't know what, walid, but every day there is a new item. every day of reports of attacks on oil facilities or tankers and the rest. we're told by iran or those sympathetic to iran are doing its bidding. what do you think is going on? >> neil, let's take the viewers to the big picture to understand the equation of what's happening right now. so iran was moving missiles, a lot of missiles in the region. we put those dress i can sanctions and we told them you're not going to sell oil unless you come to negotiate for security arrangement. so they told our allies the u.a.e., saudi, probably kuwait, if we don't sell our oil, you're

not selling your own oil. you will not going to have the u.s. administration to balance this, market. so the first incident, very important, those four ships that were damaged, sabotaged, this is a message directed to the u.a.e. and saudi arabia. you cannot get your oil out of the gulf because we are there. we could damage you. then what the saudis have done was to put in place a network that goes from saudi fields all the way to the indian ocean bypassing hormuz. so what happened yesterday? iranian allies out of yemen threw missiles and drones on the installations, telling saudis and u.a.e. you cannot get your oil to the market as long as we cannot get our oil to the market. thereby we have situation where the u.s. would move one way or another. we have warnings coming to all the embassies we have in the region. neil: i wonder if it's a little too obvious, right? a risk of sounding like a fan of

the colombo, peter faulk series, iran is behind this, they would have to know given our increasing presence, military presence in the middle east, we're sending an armada there it would seem, we talked about, even though the president called it fake news, sending a lot of troops to the region, it would just seem to be idiotic for them to sort of tempt the tiger but what do you think of that? >> it would be actually in reality if they try anything bense against us or directly against our allies in serious fashion, we have enough firepower, iranians know we can wipe out their air force, navy, i don't want to talk about the electronic capacities. in terms of iran have nothing to do it, their allies houthis and drones said we did it, we bombarded, we attacked the saudi infrastructure i don't think reports about how many forces we'll send to the middle east are accurate. the president said we have the

capacity doing whatever we want, whatever it takes. if we do it from air, electronically we don't need troops on the ground. the u.s. will have to protect its own installations, infrastructure, namely the embassies, walid phares we'll see what happens. oil is up but on the year very soft. hovering around $60 a barrel. brent north sea crude popular with europeans is not budging. markets seem to think cooler heads will be prevailing on this. seeps mitigated by the china-u.s. trade tiff that leads maybe to a slowdown come june 1 tariffs on hundreds of billion of dollars to both countries kick in. they might be anticipating slack demand. whatever the case no real palpable reaction to oil and other places on this more after this.

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neil: all right. you know by now that the president has looked at the delaying tariffs that would kick in, namely for european union and japanese autos. this has really nothing to do with china but it was perceived as a positive development that would pave the way for constructive talks with china. but what's interesting here is that fear or maybe the suspicion that we'll see a slowdown as a result of our trade tiff with china has prompted a runup in the dow for this reason. there seems to be a suggestion that people are betting on the federal reserve reversing course and not only cutting interest rates this year, but maybe multiple times, looking at fed futures contracts, the market now is pricing in a 24% chance. 24% chance, of two rate cut and 6.8% chance of a third one. now the reason why i even venture this, that was not even in the equation and was

routinely dismissed little more than 48 hours ago. but now you have the sentiment building, not only will the federal reserve stand pat for the remainder of the year, forget about hiking rates, but would cut rates, not once, but possibly twice, possibly three times. it is a bit of a leap, but some of the things providing support for this market as a 10-year note which is a good proxy, a market proxy for rates going at 2.37%. this is the lowest they have been since early 2018. you might notice what is going on here. the gap between shorter and long-term rates has essentially flat-lined. which presage as slowdown. again, not always accurate. depends how long it lasts but i found that fascinating. that people are betting with their money that the federal reserve cuts rate later this year. we'll see. the president is expected to sign an order that paves the way

huawei out of anything to do with the united states, 5g push, technology push and urging u.s. allies to do the same. that latter will be a tough part. money map press's keith fitz-gerald, what that means. what do you think, keith? >> i think it's a smart move. huawei has got into the core of 5g networking business. i think is silver lining, that creates opportunities for erickson, intel, samsung, voids get filled with innovation. like getting ready to carry an umbrella if you know it will be raining. neil: it is one thing for the united states not to deal with huawei. i'm surprised, keith, degree which everyone else does, including a lot of our european allies who might look askance that some of the huawei employees might be spying on them but man, oh, man, they have a huge leap with 5g technology

and if you're not dealing with them you're behind the eight ball. what do you think of that? >> i think that is a carefully orchestrated game of distraction, neil. here's what that tells me. i think europe historically, talked about this many times, not gotten the innovation we do. i think if they have huawei out of the picture, they do not have the ability to compensate like we do. neil: all right. well-said. keith, thank you very, very much. we did get an update from huawei before i came down here to the studio. huawei put out a statement and apparently is putting this in contracts, with those who pick it up. we promise not to spy on you. they actually wrote that in. can you imagine that, will not spy? more after this.

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♪ neil: all right. busy week judging those two philosophies listening on the radios socialism versus capitalism. howard schultz dancing the line, starbucks founder who is entertaining a presidential run. what would make him do it or not hear it. charlie gasparino, what he is hearing. >> starbucks, certain things trigger things, just hold it for a few seconds. a few minutes. neil: fine. >> one of the sort of factors, i would say it is one of the

leading factors and i know you have mr. schultz's spokeswoman on after this, you can bounce it off of her, i'm betting this from people close to the campaign, one of the factors is joe biden and joe biden's potential success or failure. that is key, that is one of the main -- you never say it is only reason, she wail say this i guarranty it, one of the main reasons. if joe biden wins, wins as a moderate progressive that is pro-business, sort of along the lines what mr. schultz is, by the way, the chances of him running i'm told by people with direct knowledge of the matter are very low. if he loses and you have bernie or elizabeth warren, the socialists take over, by the way, they're at the top of the ticket right now. you have everybody else, you got her, biden and those two. if those two run the clanses of him running as independent for that lane, that progressive, pro-business, moderate lane is much higher from what i

understand. neil: that would be, if you wanted to wait to see if biden bottom the nominee you're in -- >> now here's the thing. if you want to know why he hasn't said anything lately, there are two reasons. he had back surgery. that has been out there. i've been told that by the same people. he is also watching the democratic primary. what i've been told, any decision he has, he makes will be, unless joe biden blew up tomorrow, you know what i'm saying, it is months away. it could even be i'm told, could even be next year. given what's going on, the crowded field, how it may take a long time to sort out -- neil: that could be the convention before you do that. [inaudible], that is too late to launch their party -- >> i'm told it could be several months. here is the other factor. suppose biden wins and he wins running away from his record? he adopts bernie sanders's progressive socialism or whatever you want to call it, socialism. you know, there is a chance he pets in then, a lot is depending

on biden. neil: stay here, i want you in the mix. erin mcpike joins us, howard schultz spokesperson. very good to see you. >> you too. neil: what do you make of what charlie is reporting? >> what he said is a big if, that is if joe bidens wins the nomination, and does so as a moderate. we have a long time to see how that plays out. look there will be a couple debates over the next few months, june 26th, june 27th, in miami the democrats debate on stage. we'll see how bernie sanders style of democratic socialism plays on that stage. right now he is a leading factor in this race. the reason you're having this very week because bernie sanders somehow become the mainstream of the democratic party at least for the activist left. those voters who vote in democratic primaries, iowa, new hampshire, south carolina, nevada, and others we'll see how the nomination fight plays out. we have some time. we'll look over the next couple month to see how these debates

go. >> erin, thank you for confirming my story first, but before i do, now that i have done that, now that i have done that, i got a smile out of her, aren't you a little bit surprised by joe biden's resiliency and discipline so far? as crazy as the activist left goes, i can tell you i speak with people in the biden camp all the type, the mainstream democratic voter, african-americans, blue-collar whites, hispanics they are not the crazy liberals that you see on twitter. that is going to put him in good stead in south carolina. he is leading in iowa. new hampshire, and he is not made any gaffs. isn't that, isn't that like surprising you? because if he, if he remain what is he is now, you don't have a lane to run in? >> well, charlie it's very early. it is just may. we just had the governor of montana get into the race just

this week. we've got a long way to go. so, you know, joe biden was the vice president of the united states. he has high name recognition. neil: erin, just ask you outright, if biden were the nominee, and certainly the most moderate, that is extreme to put it that way, but politically palpable guy who could win, is it your sense that howard schultz would cease and desist and not run as a third party candidate? >> if joe biden were to emerge as the nominee and not a bloodied nominee, still a more moderate democrat i think howard would probably think twice about it. >> thank you. neil: if he thinks twice about it, then that is the only candidate whom he would think twice about it, right? if it were bernie sanders all bets are off? almost any one of the others who as charlie pointed out has extreme views, might be more popular than given credit, certainly not resonating in the

polls? that could change, to your point, it is very, very early, but almost any other nominee you would think howard schultz would run? >> i would think, with a race as it is now, howard very well could still get into the race at the end of this year, early next year. we don't know yet. we have to see how, how this race plays out over the summer first, neil. that is the whole point. neil: i understand, if he waits until after, let's say joe biden were to somehow clinch the nomination, you're into the summer of 2020. that is fairly late time to make a third party go of it, right? >> he would have to -- >> january. >> he would have to be in the race first. he would have on in the race first. >> theory, neil, it is january or before that. neil: because if you wait until he, rumored in march of new hampshire -- >> biden, i mean their dream would be biden fizzles out in the fall and it looks like it is bernie or elizabeth warren. that is their dream. that is their dream but biden,

you know, he has shown some weird resiliency. weird because -- >> it is early. >> it is early. so far. neil: erin, if you were a betting woman, would you put the odds on howard schultz running for president of the united states? >> right now, right now i would. neil: okay. >> i would say no. neil: well i didn't ask you, did i? >> i'm putting it out there. neil: that makes my day. thank you very much. dow up 117 points. we'll have a lot more after this. the political fallout from money that could come as a result of that after this. we have allstate. and with claimrateguard they won't raise your rates just because of a claim. that's why you're my favorite... i know. are you in good hands? you wouldn't accept from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms including nasal congestion, which most pills don't.

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because when it's decision time... you need decision tech. only from fidelity. neil: all right. speaker nancy pelosi is about to meet with the white house trade representative robert lighthizer. she's been very big, of course, on enforcement, making sure whatever the chinese ultimately agree with, you know, they stick to that. but she's just as well talked about agreements we have in place that the house is yet to vote on with mexico and canada trade. this on the day we got word that the administration is pushing off for at least six months auto tariffs that were to go into effect for the european union and largely japan. we are going to be exploring all things trade with, among others, louisiana republican senator cassidy, a very big value investor, where he finds value in a market like this and how much of it is pegged to trade.

let's get the latest on the trade front with the dow up 111 points. edward, you are probably not surprised to hear a lot of the issues that would be directly affected by trade with china are the very ones that are jumping today. some optimism there. we will see how long it lasts. what's the latest? reporter: i can tell you actually the tariffs on autos do affect china in terms of auto parts. china's a very big supplier of auto parts into the united states so it would, in fact, hit china in that way, just on the auto parts section. today, treasury secretary mnuchin here on capitol hill testifying in front of the senate appropriations subcommittee. he also talked trade. today he says the conversations with the chinese will continue. he says that will happen in china at some point. when i asked him, though, about whether we could have a deal, he is confident for that deal, his tone was muted. listen. still confident for a china agreement? still confident? >> hopeful.

i wouldn't say i'm confident. reporter: the president has a lot of support on capitol hill from republicans and some democrats over this, hoping that standing up to china will work. >> they got to play by the rules like everybody else. we admitted, helped admit china to the wto. they wouldn't have gotten in without our support on december 11th, 2001. on december 12th, our chinese friends started cheating and no one stood up to them. reporter: as you mentioned, u.s. trade representative lighthizer now on capitol hill talking usmca with house speaker nancy pelosi. she could hold up the ratification in the house on usmca agreement. lighthizer is coming from a meeting with the canadian foreign minister where he's talking about that usmca agreement. the canadians say they won't ratify it as long as steel and aluminum tariffs are still in effect on china and on mexico there. enough republican lawmakers say that as long as those tariffs

are in place, steel and aluminum tariffs on canada and mexico, there may not be enough votes to ratify from the republican side the usmca. the trade representative is working on that right now today, to try and get that passed. mexico does say that they will ratify but the canadians, possibly not. back to you. neil: edward lawrence, thank you very, very much. let's go to louisiana republican senator bill cassidy. he was with the president in louisiana yesterday for the president's big speech. you support him, senator, on this trade approach with china. lot of folks are getting nervous, what's going to happen on june 1 when a lot of these tariffs on both sides of the planet kick in. are you worried? >> of course you would rather it not happen but i'm more worried what will happen if we do not strike a deal with china. because china has shown they are willing to break every rule in order to denude our economy of jobs, of intellectual property, of prosperity and transfer it to china. so our economy is as strong as it's been in decades. theirs is showing softness.

now is the time to be firm. neil: do you think the president was looking at the markets and responding to the markets, mr. lighthizer arriving at the capitol to meet with speaker nancy pelosi, by the way. but do you think he was concerned, that is the president, with the market dropoff and this was his way that is the auto tariff thing, delaying it for the europeans and the japanese auto parts by extension, i guess, with china, because of that? >> i think the president is trying to avoid inertia from setting into the system. as long as there's a little bit of uncertainty, a reward of firmness, a reward of firmness, then nobody settles into a pattern where you can't budge them from. now, ideally you don't have to go to tariffs but with china it appears as if you do. i think the president's just trying to negotiate the best deal he can get for the american people. neil: he has not decided on whether to include the remaining $300 billion of tariffs on goods

from china. you think he's holding that in his back pocket depending on what china does or proposes in the next week or two? >> absolutely. the president, i was flying with him to louisiana yesterday, he said more than once we have a deal, 95% there, and then we go to china, to beijing, just to finish up and all of a sudden, five things we agreed on have been crossed off. little things like intellectual property protection and everybody laughs. so until we know we have a firm commitment from the chinese, the president needs something in his back pocket and he needs to convey a willingness to use it. i think he would use it. neil: know what's interesting to me, you are so close to this, you know these issues inside and out. most americans do not know that when tariffs are implemented, they pay them, not governments. do you owe your constituents a

possible bracing moment where you tell them look, we don't make much progress here come june 1, lot of the goods you get at walmart or target are going to go up a lot, maybe not the full 25%, maybe some of those entities will absorb some of it, but certainly can't be all of it. are they ready for that? >> there's a complexity there. the chinese currency is weakening. they will actually tend to lower the prices somewhat but that said, there has to be a discussion with the american people, but what was not held over the last eight years or eight years before the trump administration is that china is taking our jobs. they are arbitraging regulation. sure, we appeal to the world trade organization but it takes so long to resolve, in the meantime they have taken our jobs. neil: the president says this happened under democrat and republican presidents alike. is that a fair criticism? >> i will accept that. but the point is the conversation has to be held that if we do not do something now, we can expect that to happen and a regime in china which is

hostile to our values will eclipse ours. that's the discussion that also has to be had, when americans hear that i think they are ready for confrontation now. neil: all right. we shall see. senator, thank you for taking the time. >> thank you. neil: all right. we already heard from walmart's president who was telling us over the weekend on this show, my weekend show, i should say, on fox news, that look, these tariffs take effect, we are going to have a palpable effect. we heard many a ceo warning about just the same, today in an otherwise glowing earnings report that surprised a lot of people, how long does that last if something like this kicks in. former hostess greg rayburn on that saying tariffs may be a necessary evil in getting another deal but it's like playing with a grenade, isn't it? >> i don't know if i would go that far. good to be on with you again. you know, i think people focus on tariffs, sometimes it's like here's a shiny thing so i'm a little distracted by all the tariff noise, and they forget

what just came out in some of the comments from your prior guests, that the real trick here is the level playing field in terms of our intellectual property, and their theft of that, and their practices in that regard. that's really hard in this negotiation because they won't even admit they do it. so it's not surprising that -- neil: oh, no, no, i agree with you. i think there are perfectly valid reasons to address the fact the chinese cheat and have lied and distorted this process to their advantage for many decades. in fact, they still treat it like a third world country in the eyes of the world trade organization. i guess i'm just looking at economic impact of these tariffs. a lot depends on how long they last, but let's say that we don't have a deal by the end of the year, as some have feared. then what? because then whatever the righteousness of the cause, then you have to worry about the real effect on the u.s. economy, or

do you? do you worry? >> i don't particularly worry about that. i think as you pointed out from my perspective, the tariffs are part of the pain involved in negotiation. i don't know any successful changes in negotiations where you really achieve something that you can get without pain. so that pain will be absorbed by consumers, that pain can be absorbed in part by -- neil: a lot of them don't know it, greg. i agree with you, but a lot of them don't know it. i cannot tell you how many say good thing we're sticking it to china, farmers who have been dealing with this for the better part of 15 months now are saying hello, and there's some frustration there. there has been patient support for the president through this even from democrats, to your point, said that you know, the president should remain tough with china. but should they be braced for the fact that unless they can find american versions of the goods they were getting from china or, you know, that these

full increases won't be passed along, should people be bracing them for that distinct possibility? because a lot of them don't know it. >> yeah, no, i think that you have to be black and white and honest about what the impact's going to be. i think you also have to really consider what you can get out of this negotiation and what's achievable. reagan talked about in the nuclear disarmament he talked about trust but verify. getting that is going to be extraordinarily difficult with china. what have we got so far? we have gotten progress. they have attempted to sort of buy their way out of this problem by committing to a trillion dollars over the next -- in purchases over the next six years, to level out the deficit. that's great. i guess, though, at the end of the day, the imbalance in the playing field in terms of intellectual property and the losses and impacts on our economy from that will dwarf whatever the impact of tariffs is. it will still be painful, but

there's hardly a comparison. neil: we shall see. thank you, my friend, very much, for stopping by. >> good to see you. neil: quick peek at the corner of wall and broad. the dow up 117 points, adding to yesterday's gains which now make up more than half what was lost on monday. we should also point out that while a lot of the technical underpinnings of this market were really getting spanked around here, we should point out that 56% of the s&p 500 stocks are now trading above their 200 day average. a lot of people follow that, because when markets were sinking as they were, there's a worry that what cascades with a few issues, couple dozen issues, i remember on monday, has since dissipated to the point that now the reverse is true. it's a technical thing, a lot of people look at, but it is worth noting. right now, stocks that were looked to be in danger, more than half of those have since gotten above that average which is something technicians who read tea leaves love to follow.

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state department with a lot of saber rattling there. reporter: good morning. the state department has ordered the departure of all nonessential workers in iraq. that's coming out this morning. a senior state department official says this threat stream is real, that iran is directly linked and it would be an act of negligence not to move those workers out. though the senior official does say it does not mean the united states is moving towards conflict with iran. secretary of state mike pompeo canceled a trip to germany last week, went instead to iraq, and he continued to highlight the threat of iran in a meeting yesterday in russia. >> we fundamentally do not seek a war with iran. we are looking for the regime to simply stop conducting assassination campaigns throughout europe. reporter: the trump administration has expanded its military presence in the region. the secretary of defense presented a plan that would send 120,000 troops to the region if

iran attacked americans or accelerated its nuclear program towards a weapon. the iranian government claims that the united states is trying to raise tension in the region. [ speaking a foreign language ] reporter: the ayatollah says there won't be a war, neither the u.s. nor iran are seeking a war. yesterday a british general says there's been no increased threat from iran or syria and iraq. a u.s. command spokesperson says the general's command runs counter to the u.s. assessment and said in a statement quote, the u.s. led coalition is now at a high level of alert as we continue to closely monitor credible and possibly imminent threats to the u.s. forces in iraq. the uk defense ministry has just issued a statement saying it has long been concerned about iran's destabilizing activity in the

region. neil? neil: rich, thank you very much. let's go to stephen yates, former deputy national security adviser to dick cheney. very good to have you. where is this going? certainly it got a lot more heated over just the last 24 hours. >> it definitely got more heated, but it's also part of a very, very long drama and it's important not to forget that it's the islamic republic of iran that's been at a slow murmur and at times hot war with us at different opportunities. they are the ones driving the tension. they are the ones driving the destabilization. the recent action against shipping vessels and now this reported threat against our forces in iraq leads to the prudent step to pull civilians back but really, fundamentally we are dealing with the nature of a rotten regime that is destabilizing force to the region, exports terror and now potentially nuclear weapons. neil: you have no doubt they

were, the iranians were those sympathetic to iran were behind the attacks on oil facilities in saudi arabia, united arab emirates ships, a norwegian tanker was targeted as well, there's no doubt about that? >> well, there's no such thing as perfect information, but in my line of work, when there's information that comes from the united arab emirates about this kind of activity, it tends to be more reliable than the average info so i think that it's reasonable to look at what are the groups and which nation do they come from that's doing most of the destabilization, export of terror and all that. it comes back to the islamic republic of iran. neil: if i'm iran and i'm doing this stuff in the face of this huge u.s. armada that's coming my way, why would i tempt the tiger? >> well, a lot of times when we have these long-term adversaries, we're not necessarily dealing with rationality that we would bring to the table. really, every president since carter has had some kind of

negotiation with the islamic republic and so it could be from their point of view that they are led to believe by past presidents that if they engage in a little provocative behavior and pull back a little bit, we get drawn into another deal scenario. we have seen this with north korea and also with iran. the trump administration is trying to undo some of these things that's inherited from i think the acclimated behaviors. it's very risky and it's difficult. neil: we will watch closely. thanks for taking the time. >> thank you. neil: all right. we should also let you know there's been no real tangible effect on oil prices. they are up a little bit but other than that, maybe offset by the weakness that could happen to the global economy if the two biggest economies go into a trade war. maybe that's weighing on the markets. we shall see. meanwhile, abigail disney is on capitol hill today. remember when she was bemoaning bob iger's pay as way out of whack. she's saying now that's got to

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neil: all right. welcome back. abigail disney is testifying before congress today over ceo pay. she made a big deal over bob iger's pay all these many years, saying it's out of whack with reality. she extended that to other companies. deirdre bolton has been following all of this. what do we know? deirdre: this topic of income inequality is really heating up and the granddaughter, as we saw on the screen, of roy disney is at the heart of this argument. she is testifying. we saw her there on capitol hill reiterating one of her key talking points. she says there is a point where there's just too much money around the top of the system for a class of people, i'm sorry this is so radical, have too much money. she says the pay gap between the company's top executives at disney, the median worker, is completely out of whack and of course, she feels her place, her grandfather and great uncle

founded of course the disney entertainment company. she says she likes the ceo bob iger, that he's a good man, but she just says the level of executive pay has a corrosive effect on society. last month she made even more extreme comments to other news organizations saying jesus christ himself isn't worth 500 times median worker's pay. disney ceo bob iger receiving a compensation, here are the numbers, his package is worth about $65.5 million, that was last year, and by comparison, disney's median employee, who is a full-time hourly worker, received just over $46,000 a year. that's where you get this ratio of roughly 1400-1. but for context, i wanted to point this out, iger's pay is in line with a lot of ceos who earn more than 1,000 times their typical employee. take a look at this screen. we put together this data from my logic iq, an aggregator of public company information.

all of this is public. all of these companies have to file proxy statements with the s.e.c. here's a few companies and you will recognize their names. it's starbucks, coca-cola, david zaslav discovery media, art peck, the gap. disney defending its pay practices, here's part of its public statement on the matter. disney has made historic investments into expanding the earnings potential and upward mobility of workers, implementing a starting salary of $15 at disneyland, double the federal minimum wage. disney of course also stating that 90% of iger's comp is based on financial performance. he has had a long and successful tenure so far at disney and in fact, he has personally seen tho $133 so the company says that obviously benefits also benefit thousands of employees who hold the stock as well.

so this issue of have and have-nots, i know it's a big focal point for the network this week as we look at socialism and capitalism but what's clear is as far as disney are concerned, they are paying the right man for the job and paying him for a job well done. neil: you think about it, a good deal of his compensation is in stock. so the stock does well, he does well. deirdre: if it doesn't do well, if he misses target he doesn't make that. neil: obviously it's enriched abigail disney as well, that stock performance, but is there a sense here the disney board is getting nervous about this, that look, if we have, you know, the founder's granddaughter complaining about it, we got to do something about it? deirdre: she's definitely using her position and she's not alone. she's part of this nonprofit group, that's who's testifying today on capitol hill, so she's clearly not alone in her messaging. from all reach-out i have done towards disney, no, they're not. bob iger's comp is in line with many of his peers, even i would say the top 15 to 20 of the s&p

500 so i think that as far as disney is concerned is where it stands. neil: all right. thank you very, very much. we should point out here, deirdre touched on this, the shareholder return during bob iger's tenure has been about 600%. the return on the s&p for the same period, about 140%. not that that justifies eye-popping paychecks but again, it is mostly in stock and your performance is based on improving the fortune of that stock and shareholders. is it the big deal it is. obviously the argument abigail disney is raising is it should be considered, no matter how you get it, it's just out of whack. jackie deangelis on why this kind of thing gets people rethinking capitalism and its merits and whether it's getting a bad rap in the process. reporter: good afternoon. that's exactly right. yesterday we talked about the pitfalls of socialism. today we are really doing the same thing for capitalism. there are a group of people who are going to poke holes in the

system and say it's an engine to create wealth, surely, but sometimes when you put business interests first, there are places where it can go wrong. so deirdre's example was a great one for a lead-in but let's talk about some others. lets l's look at big tech like amazon, facebook, google. there are those who argue they just have too much power within society. elizabeth warren, not a socialist, but she's saying those companies should be broken up. the president hasn't said that, but he does acknowledge that there are some problems with these companies in terms of how much power they wield, for sure. facebook of course has been probed about privacy issues as well. there's a huge responsibility when it comes to being such a powerful company. then you've got google that's been attacked in the past for anticompetitive practices, amazon criticized for not paying enough taxes last year on billions and billions of dollars in revenue, federal taxes, i'm talking about. so the question right now is in situations like these, do you try to throw the whole system out and overhaul it, or do you

look and sit back and say let's try to tweak it a little bit. listen to what mark cuban had to say on our air. very interesting about this. >> the question is how do you solve income inequality. the country, the constitution, i don't think anybody truly believes switching to socialism is going to bridge that gap. but i do think it's a conversation that we need to have, because income inequality leads to social disruption and the biggest risk to this country and the biggest risk to all businesses are, you know, is violence and that's what we want to solve. the question is how do we do it. reporter: certainly pitfalls in the system when it comes to what we're dealing with in this country. and this is a debate and a conversation we have been having all week. we are going to have a town hall about it tomorrow, 2:00 p.m. hosted by charles payne and really dig into some of these issues in more depth. back to you. neil: i had no idea charles was a socialist. who knew. it's going to be wild. look forward to that.

thank you very much. just kidding there. just kidding. i do want to get a read on this and other issues, famous investor, value investor, sees value when others don't and made a fortune doing that, and he joins us right now. foster, this view about pay inequality and the gap between the very rich and the very poor, the bob igers and the working mice at the mouse kingdom, is so wide that something's got to be done, what do you make of that? >> i think it's a very, very bad argument because i'm an example of the american dream. i came out of the army with $800 accumulated leave pay and now god has blessed me financially. why do you want to take that away because think of the things i have been able to do for others, and income inequality is a manifestation of the american dream. income inequality is not the problem. the problem is getting the lower income levels higher pay.

how does it help if bill gates got slashed in half? they have less taxes to pay for the safety net that allows our system to take care of illegal immigrant who gets hit by a bus on the street, take him to the hospital, gets the best care. if you look at all the wonderful things in america it's because of the wealth we've created. why would we want to be like cuba where everybody makes $35 an hour, if you have a successful restaurant and you're not allowed to start a second one, so we should stop using this term income inequality as a problem. income inequality is a manifestation of the american dream and we ought to applaud it, not disparage it. neil: do you think some take advantage of that, though? you talk about those giving back to charity. i know you certainly have. and most of the big names millionaires and billionaires we know of have done just that. but it's disproportionate, when you talk about the many others who have not. i always think you could be

moralistic about this all you want but the rich are the rich are the rich. we found a way to address this in the past by saying don't give them big salaries, maybe tie their performance to let's say the stock. we did that. their stocks ran up and away we go. they are damned if they do, damned if they don't. but the problem persists or the way it's viewed as a problem, that there is this gap. should we ignore the gap or do you urge other, you know, rich folks to give more to prove that they're doing good things? >> well, you look at any college campus, i think it's not too hard to show these young college kids, walk around the campus, see the name of the dormitories or the science labs, the library, they all came from wealthy contributors. 2017 alone, $413 billion of charitable contributions. what do wealthy people do with their money? you can only eat so many steaks and have so many glasses of orange juice every day.

so the excitement of being able to become successful is that you can be a blessing to others and be a contributor to your society -- neil: what about they pay more in taxes? that idea comes a lot. even warren buffett said i pay more in tax because largely he pays at the capital gains rate than my secretary. should taxes be higher on guys like you? >> well, if you tax me, then you are going to create a larger government which takes away freedom. think of right now, i can take a hundred dollar bill and go to any doctor i want and pay him but under a bernie sanders or socialized program, or government controlled program, he gets the hundred dollars and he decides how you and i get our health care and how we pick our doctors. so i think the whole notion of we ought to be keeping taxes as low as possible and this is kind of a bizarre comment i'll make, but someone like bill gates, he ought to have his taxes limited a certain amount because the money he would have left over would create more businesses and

creativity of successful people would be manifested itself in more products, more ideas and we ought to try to limit the taxation on successful people. i know that's not going to sell very well. it makes sense in some perspective. neil: all right. you've got bernie sanders on line 1. i will let you get that right now. always good seeing you. thank you very, very much. >> thanks for having me. it's always a delight to be with you, neil. thanks for what you do to spread the good word about america and its values. neil: foster friess. big value investor, made a lot of money that way. this back and forth, you could peg what happened to the very, very rich around the '70s when inflation was hyperventilating. they had these set raises and it's not the sole source of this widening chasm but everyone had set rate increases that by and large, because inflation had run amok, we are going to pay everyone seven or eight or nine

or even 10% pay hike. nou h you know how that goes. 10% is $10,000 if you are a $100,000 earner. do that year in and year out, we had hyperbolic inflation and the gap widened significantly. it's not the only reason but it's among the reasons why pure math, nothing sinister, produced this gap. wall street rally obviously added to that. after this. it's either the assurance of a 165-point certification proces. or it isn't. it's either testing an array of advanced safety systems. or it isn't. it's either the peace of mind of a standard 5-year unlimited mileage warranty. or it isn't. for those who never settle, it's either mercedes-benz certified pre-owned.

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to cash out or trade in. enjoy a better way to sell or trade in your car with truecar. neil: all right. microsoft stock is up despite, it's up about two bucks, but it's up despite a warning to users about a monster computer bug. they are calling it a monster computer bug. cybersecurity expert lisa garva on that. why is this one getting the attention it is? >> great to see you today. it's getting the attention it is because this is especially vulnerable. microsoft has released this information, it impacts microsoft operating systems, windows systems that run windows, these kind of machines, and it's usually affecting older

systems. you can look up online and see exactly which version. but the problem is it's easily exploitable meaning you don't need a password, you don't really need to do much to connect. you just pass the right code over the internet and you can get in. neil: what's vulnerable in that environment? >> everything is vulnerable in that environment. it really harkens back to about two years ago when the wannacry rans ransomware infected about 200,000 systems across 150 countries. it basically shut down different hospitals, it shut down nissan, shut down fed ex, and really microsoft is saying this could happen again. it's especially important because machines that are running older versions of windows are probably not being updated or patched as frequently as they should be. they might not have the right firewalls running. we can see this really having a dangerous impact moving forward. neil: will there be a dangerous impact? >> most likely. it's hard, microsoft was in a tricky position because ethically they did the right thing, they let consumers and businesses know this

vulnerability exists, we are releasing the patch. take that update and release it across your system. but at the same time, they are letting malicious actors know as well, hey, this vulnerability exists and it's pretty easy to get through. neil: you know i actually understood that. you helped me understand a complicated thing. thank you very much. again, it's not affecting microsoft stock. that had been hammered early in the week with this exposure to what's going on abroad. putting it in perspective, year to date, not too shabby. meanwhile, you probably have been hearing a little bit about this, you have probably been seeing it around your neighborhood, your family. i love kids but i immediately start thinking who's going to pay into my social security. after this.

neil: all right. i don't think it's a matter of we don't know nothing about birthing babies but apparently we're not interested in having them, because the birthrate last year hit the lowest it's been in 32 years. it got me thinking, because this always goes back to me, that's going to be fewer people still paying into a lot of these entitlement and social programs that used to depend on a lot more paying in than people getting stuff out. remember, it wasn't that long ago when franklin roosevelt came

up with social security as we know it today, there were 60 or 70 people paying in for every retiree getting something out. now it's darned close to 1-1. now we quit having kids, i'm going to have to pay them -- it's scary. let's get the read from the democracy for american chairman charles chamberlain, ted harvey and axios reporter katelyn owens. if this isn't a wakeup call for looking at entitlements, i don't know what is. what do you think of the fallout from this? >> you know, i've got to disagree with you. i think this one will kind of blow right by as everything else has done. medicare and social security spending is through the roof, it's been that way for awhile -- neil: i don't care for young people like you. you're not getting anything. i just want to make sure none of this will impact me. go ahead. >> hey, i don't know how much time you have, neil, before you qualify for these programs

but -- neil: tomorrow. >> but time is running out. we have known this for awhile. we've known the math is not working very well and we will have to do something to address spending, or else, yeah, medicare benefits, social security payments, these are all at risk in the future and we have not, we're not really focusing here in washington on how to square this circle. neil: by the way, not just here, everywhere, right? the aging chinese population, one thing that comes through is this is the phenomena worldwide. young people today just not having kids. is it a huge concern or do we get through this? i remember in the '80s when they were concerned before we got reports that in the '80s we were producing babies again but it goes in waves, i understand that. your thoughts? >> i think the problem is we have a crisis of political will. we always have the money to be able to find to give subsidies to oil and gas companies or tax

breaks, tax cuts to the uber-rich or if we want to play policeman around the world, we figure out how to fund that. the bottom line is we have made a promise to our seniors that we paid in all of us, i'm paying in, you're paying in right now, to this system so that we can have social security be there for us when we need it, when we're older. it's about delivering on those promises. so the problem here is really a political will of republicans in congress that are always where can i make my next cut to social safety net instead of delivering on our american promise. neil: you don't have to worry about that. no one is making any cuts anywhere. ted, one thing i am curious about is whether we're going to step back, both parties, realize that this math is not sustainable, but i can remember quite well when there was an effort just to control the growth in medicare. it was the equivalent of throwing granny off a cliff. where's the political will to do something?

>> well, there is no political will. i think we have seen that over the last two decades whether it's republicans or democrats in charge of congress, there is no political will. everybody wants to give away free stuff and despite what the political talking points were from charles, the tax cuts were a huge boon for the revenue coming in. we have more revenue than we have ever had come in, but we also have the greatest deficit that we have ever had. that's because of failed congress for the last 20, 30 years. this is a serious issue that the americans are demanding we have, we solve this issue, and hopefully having a non-politician as the president, we can focus on that and solve these problems. neil: i'm looking at even republicans are getting concerned that this president is going to sign on to a two-year budget of any sort. they're getting nervous that he's not going to do it. they figure if he's not going to do it, we shouldn't be pushing

it. democrats in the middle of the 2020 race, they're certainly not going to haggle about it. we pass the baton again. >> that sounds about right to me. you know, i think the disclaimer with this president is we never know where he's going to land on big decisions like this. he tends to kind of adopt a few different positions before settling on one. we just don't know. but yeah, i completely agree. i think that neither party wants to do some kind of big spending cuts heading into 2020. spending cuts typically are not popular with the electorate, especially if we are talking about cuts to seniors' benefits. while the math might not be working out, that doesn't mean people want to see these cuts. so i think that passing the baton is probably exactly what's going to happen -- neil: something blows up. i do know the candidates are running now and it's not as if they are getting any better leads from republicans. we are watching robert lighthizer leaving the capitol right now after his meeting with nancy pelosi on a trade deal here, where things stand.

but back to what i was getting at here, this will on the part of congress to address issues even in the democratic party, all the candidates are competing over a green new deal, makes perfect sense to a lot of them but they haven't found a way to pay for it. you can make the same argument about republicans and their priorities. but no one seems to think the american people have the stomach to look at the math. i think americans are smarter than we think. if you just explain to them, they will say geez, you know. what do you think? >> well, so do i. i think the american people are smart enough to see that all we need is a real vision for how we are going to deal with it. we have several candidates on the democratic side that do. when they talk about things like a wealth tax, it will actually fund this, or having people pay their fair share. when i say people, in this case i might agree with mitt romney, i'm talking about corporations that get away with often not paying their full taxes. google pays nothing. why should -- neil: would that be -- forget

about that. we are talking about funding multi-trillion dollar plans. i'm talking about dealing with the debt that we have and the structures and entitlement that stand to lose money and soon. why doesn't anyone want to, if that's your goal, to do it via taxes, to do it for that rather than more spending? >> well, i think the bottom line is that these kind of programs exactly deliver on funding social security, funding our promise, funding medicare and medicaid and make it possible. if you look at a bold proposal like medicare for all, you are talking about a system that will make it so that it allows the government to negotiate prices, lower the cost curve and actually make it possible to deliver. that's more money in people's pockets, that's also more money to be able to pay and keep people -- neil: there are a lot of people -- [ speaking simultaneously ] neil: ted harvey, it doesn't sound like much progress will be made on this front. let's hope that caitlin stays young and productive to pay for

it so i don't see much else getting done. >> definitely not. not when you hear the rhetoric that you just heard that medicaid for all is a good program that's going to cost $3 trillion per year at the highest level. those kind of things are not sustainable. our current system is not sustainable. it's like the engineer in the movie "titanic" this ship is going to sink, i assure you it's a mathematical certainty. if we continue to go on the spending levels we are right now, there's nothing we are going to be able to do to solve it. it will sink. neil: both parties have to quit talking about it. continued good health, young lady. again, i appreciate it. meanwhile, the markets are suddenly pricing in rate cuts. rate cuts. this year. what happened? after this. termites.

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and financing is available for qualified purchasers. no matter how high the wall will be built. no matter how many drones you have, no matter how am edge cents you put at border they will keep coming. the situation we have on the border today is horrible, it is unimaginable, that it can be sustained. and my solution will stop the problem. neil: that is senator lindsey graham laying out a plan he says will provide the security we need at the border and address all the waves of migrants who are trying to get

in right now it is gotten to be such a distraction, dealing with kids, families everybody else, he says he has the fix. we'll talk to former homeland security secretary jeh johnson who worked with barack obama whether this makes sense. that is at 4:00 p.m. now is charles payne. charles: i heard you were making social suit payments, neil. neil: i'm there now. i don't like the math on no kids. charles: it is serious issue. we'll discuss that as well. good afternoon, i'm charles payne. this is "making money." market with a sharp reversal planning to delay imposing auto tariffs as negotiations continue. that is good news for investors especially after seeing weak economic data particularly from china and also the united states. what do you make of the market whipsaws, should investors be riding or selling these