picks up a lot of drunks. liz: they're getting sick in the back of cars. stuart: that would be a big deal liz: never get in the car again. stuart: uber earnings report, 4:00 this afternoon. watch fox business. neil it is yours. sorry,. connell: i was half paying attention. ii caught the end of that conversation. i was very curious about your uber riding habits. stuart: not mine. the general public. connell: good to see you, stuart. welcome everybody. what a circus. welcome to cavuto coast to coast. i'm connell mcsane -- mcshane in for neil today and tomorrow. there was a all the talk about the selloff, pulling back five 1/2, 6% from the highs. president trump speaking today for the first time since

robert mueller's press conference yesterday. this is a shot of the president walking out of the white house earlier. he took aim at the former special counsel that mueller should have never been chosen in the first place. we'll get into that. the debate is heating up whether the push for impeachment might derail any type of legislation this year in washington. a lot to talk about as always. blake burman starts us off at the white house. reporter: hi, there, connell. the complicated relationship between the president and mueller report. on one hand we got first real reaction or on camera reaction from president trump. he continued to heavily criticize robert mueller, is quote, unquote, never-trumper. he believes robert mueller was heavily conflicted because mueller, came over here to the oval office, interviewed for the fbi job. didn't get it. in the past life they had a dispute both sides went back and

forth with. president described mueller someone who was conflicted. but on the other hand the president held up the mueller report as kind of a see i told you so moment. there was no obstruction, no collusion as he sees it. but the president also used a parallel with bill clinton saying that bill clinton, when he went through his proceedings and president trump just went through his own proceedings with the mueller report, they ended in two very different ways. watch the president. the. >> there were no charges, none. if you look at, if you look at bill clinton, that very nice gentleman who has been so much on my side, as you know, his special prosecutor, it was guilty, guilty, guilty, guilty, guilty. so many guilties. when me there was no guilty. reporter: for the first time today president trump acknowledged that russia tried to make the president the

benefactor of its influence campaign in the 2016 election because at one point this morning he tweeted the following, the president writing, quote, and now russia has disappeared because i had nothing to do with russia helping me to get elected. the middle portion of that tweet right there. first time we really heard the president say that. when reporters asked him about that tweet, about 20, 30 minutes later, he backtracked. >> no, russia did not help me get elected? you know who got me elected? i got me elected it. russia didn't help me at all. reporter: president trump spoke for 17 minutes on the south lawn, connell, before we headed out giving commencement address at the air force a canned my. he tease what will a big announcement relating to the southern border, possibly tomorrow, possibly today. we are expecting at some point in the upcoming days. president wouldn't say exactly what it is about. he did say he will not be

shutting the southern border as part of that. connell: blake burman on the north line. the second question whether anything can get done in the environment blake described, hillary vaughn is on capitol hill for us today. what are you hearing, hillary? reporter: connell, the house will give it another go trying to pass a 19 billion-dollar disaster package basically with no lawmakers in town. house republicans already stopped that twice in its tracks out of protest. they could do the same again today when they take it up for a vote at 4:30 p.m. the failure of democratic controlled house to pass a disaster aid package approved by the republican controlled senate is really a snapshot how there is major dysfunction happening right now in a divided congress. today white house deputy press secretary hogan gidley says the president is ready to ignore his personal problems with house speaker pelosi in order to get to work and get things done.

>> he wants to. the american people deserve nothing less. i mean we have a porous border that is dangerous, with hundreds of thousands of people coming into this country illegally and you unlawfully. he wants to work with congress but they don't want to work with him. nancy pelosi and leadership putting a a stop to progress. reporter: pelosi saying yesterday at an event hosted by the commonwealth club of california, he still thinks the president wants to make a deal on infrastructure. she is optimistic something both parties can get behind. he wants the white house and congress to address things like climate change, income inequality, a clean government. those issues are important, really sidestep some of the bigger issues that congress needs to face, like immigration, tax reform and health care where republicans and democrats are still very far apart on how to tackle those issues. connell. connell: thanks. hillary vaughn on capitol hill for us. bring you up to date follow-up on blake's report.

president will being commencement speaker at the air force academy. president is arriving. you see air force one on the tarmac. we'll have more, specially if news is made out of the speech later on in the show. hillary brought up things getting done in a bipartisan way, given the backdrop of impeachment, all the rest, let's bring in our panel. "wall street journal" editorial board member bill mcgurn is here, gop fund-raiser noelle nikpour, along with democratic strategist jessica tarlov. welcome to all three. bill, was almost half a joke on twitter, people looking at nancy pelosi saying, yeah we can get a infrastructure bill, wait a second, are we talking about impeachment? do you think we can -- week number 10? >> i don't think we can. they punted on a few big issues. if the democrats would have been willing to compromise on border funding, they could have gotten a lot of their priorities trump was given to them.

what is left for infrastructure, i'm not sure it's a bad thing for the american peel, a lot of stuff president might compromise are just big spending bills that may not do a lot. democrats had trouble recently on budget resolution modestly increased defense spending, much more increased discretionary spending, a lot of democrats opposed it. they don't want another nickel going to defense. i don't think there is ground. i don't think they will give the president anything he can tout as achievement. connell: almost to the point we know what we know ahead of the 2020 race this far out? things could change in the economy, cyclical in nature as we all learned but in terms of legislation, if bill's right, this is it. this is where we stand. >> right. from a fund-raising point of view, from a national fund-raising point of you it is really sad because, it feels to me like this is business as usual. that it is politically if, in the best interests of the

democrats to kind of quiet, quiet the crowds by keeping the impeachment talk in the news. connell: even if they don't push it. >> it's a great way to raise funds, get something that is popular. a lot of democrats unite on the fact that they didn't like trump. they can raise money. connell: is there truth to that, jessica? >> there are definitely plenty of democrats don't like trump. connell: but on fund-raising. >> president said it would be great for impeachment because republican senate won't go through it. we'll go through exercise of airing dirty laundry. he will say, hey, i'm here. they want to obstruct. connell: what is the balance for democrats? go forward with hearings and not impeach? >> in ideal world we would be able to do our job. congressional oversight,

committees would work as they should. white house wouldn't flout subpoenas. we would get the information. we go forward. nancy pelosi is very clear about this we'll not open an impeachment hearing for the sake of doing it, knowing we can't get intended result, which is have an impeachment. connell: she doesn't want to do it politically. >> doesn't make sense for us politically. >> the problem she has now, she says she doesn't want to do it, she is afraid it will cost her moderate seats, 35 democrats in districts that trump won. she is afraid it will cost her her speakership. connell: she might be right. quick note, president trump is on the tarmac in colorado, as this picture is obvious. shaking hands before heading to the air force academy. >> the big problem. she doesn't want this. she has a lot of committee leaders don't want it. a lot of people are itching for it. jerry nadler would love to be the man that would impeach trump. connell: he won't push forward. >> they put themselves in a hard position. i think it hurts them as

mrs. pelosi calculates if they impeach. there is point now, talk about constitutional crisis, bill barr committing a crime before congress as mrs. pelosi does did coverups, they will say why didn't you impeach? it is like put up or shut up. connell: if that is the truth -- >> they're in a tough position. >> you're right. it is fund-raiser. states up for grabs, states in jeopardy, pennsylvania, state trump won switching from blue to red. you're right in the analysis, you're right they have to play to the moderates right there. >> you absolutely do. there are 30 five seats that you said were pups for us, new democrat coalition seats. those people don't have the appetite for impeachment. the issue is not what bill barr did. the issue is what the president did. >> it is all part of the same thing. this is corrupt regime. they accused bill barr. >> of lying. >> personal attorney. >> don't say they. plenty of republicans said that.

that bill barr, not in congress, bill barr. >> we're talking about impeachment of the president. the president is corrupt and they want to have it both ways. they want to have. connell: jessica same argument. if you're saying it is not about bill barr. >> no, it is about the president. connell: even if its that is the case, about the president if you think he committed a high crime or misdemeanor. >> constitutional crisis, pelosi's words. >> 37 members of congress say the time has come. >> will pelosi keep them at bay. >> she will. >> a lot of presidential candidates are joining impeachment bandwagon too. a lot of pressure coming. they don't have -- >> joe biden, 20 points ahead of everyone is clearly with nancy pelosi on this saying that we need to do oversight. you need to essentially because the republican held senate you need to make case for impeachment to the american people, not to people in washington. >> two of these issues cannot go

on at the same time to get legislation passed and done. >> the dems pass legislation constantly. >> this is too much of distraction. connell: only takeaway we're not going to have infrastructure week. good to see you all. in the a moment, we had the president on the screen a moment ago set to address air force graduates. there he is on the tarmac in colorado. he is the commencement speaker there today. very interesting, how is disney taking on netflix? ceo of disney, bob iger, sitting down with an interview with our own deirdre bolton. we'll get to that after a quick break. we'll be right back. ncomplete jb from any one else. why accept it from your allergy pills? flonase sensimist relieves all your worst symptoms, including nasal congestion, which most pills don't. and all from a gentle mist you can barely feel. flonase sensimist.

connell: big week for disney. new disneyland "star wars" theme park is opening up tomorrow. deirdre bolton had a sit-down interview with the ceo of disney, bob iger. which was terrific. part of it on "varney & company." she joins us from out in california with a little bit more. hey, deirdre. reporter: connell, this time tomorrow there will be tons more people here. "star wars," galaxy's edge. this is on 14 acres. disney made a one billion dollar investment in this property. in the past, disney literally gotten very solid returns from

any invests it made in its park business. the years that cars land opened, for example, attendance was up 23% in that year alone. i. i am standing connell, in front of the millennium falcon. this is one of the rides i got to go on it yesterday. i got to be a pilot. that was good fun. we spoke with bob iger a lot about the parks business of course but we spoke about other topics including how the trade war with china will affect disney's business. we spoke about the future of media. the fact that technology is changing everything. with disney plus streaming business coming on line later this year. we spoke about that and the competition disney faces. this is part of the interview. what does keep you up at night? disney plus is going to launch by all imagination, it will be an amazing offering. what is the lag time between looking after the legacy business, let's call abc, espn,

disney channel as it stands now, and then disney plus, this premier streaming? do you think the legacy part of the business will be able to hand the baton to the streaming part without dropping it? >> that is a very good question. first of all i sleep well. >> okay. >> maybe because i run the walt disney company. we're here in the happiest place on earth. i should sleep well. i'm not a worrier. if i lose sleep over anything, i always care the most about our creativity. it is the heart of what the company is. i want everything to be perfect and everything to be great. when i think what is going on in our businesses, our world, disruption caused by technology is certainly a big issue. one i don't necessarily get anxious about, one i spend a lot of time i'm deeply focused on. i happen to believe, the kind of stories we tell, kind of products we have, pixar, marvel, "national geographic," disney, "star wars" to name a few, fx,

"avatar." we have products not necessarily what i call bulletproof or unvulnerable to change but are more likely to withstand the kind of disruption we're seeing than many other properties. so what we tried to do is build a company that is capable of adjusting, not just in terms of our culture and, the wherewithal, but is capable of adjusting in terms of the kind of product we have to new forms of monetizaton and new forms of delivery. with disney plus, espn plus, hulu are designed to do, not only grow as businesses unto themselves, but be there for us as major alternatives in terms of business models, should business disruption gets so acute, that the current business modeled ends up being less viable. >> a consumer says i don't want to pay disney twice, i'm paying super high cable bill, maybe i will not buy disney plus right

away? is that baked into your model? you said you don't expect disney plus to be profitable for five years? >> we priced disney plus to be very accessible. what we're putting on is incredibly popular product. disney animated movies, going back to snow white, star wars films, marvel films, i could go on and on, all the new things we're making. we wanted as many people across the world to be able to afford what they, what they love, which is all these properties. i actually don't believe that prices are going to be much of an issue for us. given what is available in the marketplace, alternatives for people who can't afford to spend another $7 a month, is it possible they will give something else up for it? sure. is it possible they will wait, to subscribe until they believe they can afford it? of course. we purposely kept the price down so it would be more affordable to more people. >> with disney plus i'm assuming net ads are the first metric you

will look at for the first 12 months. is there a metric you're personally looking at, this is why we did this, this is what i want to see? >> i think in terms of the metrics we will be most focus on initially you nailed it. it will be net ads or net subscribers. that is probably themost important metric for the foreseeable future. another metric will be how much people are watching individual programs or movies we put on. we're making original product including "star wars" product, including a the mandolorian. we don't have worries about it. we bought a technology platform called bamtech. it is delivering a great experience to the consumers. we have ample library product and originals. >> your fans are loyal. coming in against netflix and amazon. i think personally more interesting competition is apple. tim cook of apple says we want

to do family-friendly programing. i feel like that's disney's space. so how do you see that? apple i know is spending two billion on original programing. i think you're spending a billion 1/2 this year. >> we spend a lot more what we make every year. >> 71 billion on the fox entertainment network. >> look at every movie we make, so every movie we released this year, willing on a disney plus service. there has been a lot of money poured into those flips. talking about "captain marvel," "avengers: endgame," toyer to 4, "lion king", "maleficent" 2. they are all in my head. they will be on disney plus. there is competition we have had everything we've done for decades. we spend more time worrying about, we're focused on what we're making, how we're delivering to the consumer, less

about what the competition is doing. we can't about that? >> you don't feel like frenemy, you step out? >> that is my coffee break. my email break. so i can use my ipad. >> okay. connell, i also spoke with bob iger about where media will be five years from now. he talked about further consolidation. he did say he doesn't think disney will make future acquisition since they bought fox enentertainment for $71 billion. i asked him where the ad money is going to go. he feels like it will be pretty evenly dispersed between the properties that exist now. he reference the hulu. we all know if you have hulu, you want to watch something, if you have to watch a few more or less targeted ads for you first, before you consume that content,

connell. connell: good interview. the apple disney frenemie that was well done. >> very much the case. connell: good to see you. deirdre bolton out west. charlie gasparino is here in the studio as we continue with a lot of news on today's show. your news is on fannie and freddie. charlie's twitter followers know about it. >> that was a great interview. connell: yes it was that was fascinating things when you get bernie sanders and elizabeth warren rail about greedy ceos. yes, bob iger makes a lot of money. gets some of the biggest paychex in all of corporate america. he runs the huge company. he runs it pretty well. he returns so much value to shareholders who are not a bunch of fat cat rich guys in the hamptons. these are school teacher, pension funds, cops, firemen pension funds. he makes them. he deserves the money. connell: that is the whole debate. >> when you see the breadth of what this guy runs, you appreciate it. connell: abigail disney would

take note. there is the freddie mac stock heading up today. it is five cents. intraday percentage wise that -- >> fannie went the opposite direction for some reason, i don't know. here is what we do know what is going on in the trump administration. they obviously want to end the government control. they're both up. they're up on the notion of recapitalization. how are they going to recap this thing to get it out of government control? from what i understand, getting from sources to the economic advisors in the trump administration, they are discussing a stock offering. connell: okay. >> that will be probably the biggest stock offering ever. is it really an ipo? there are already outstanding shares. this is kind of a secondary. definitely a recap. a combination of a ipo and a secondary. the biggest i can find was petrobras in 2011 or 12 at 70 billion. this depending how much they capitalize this could easily dwarf that. twice as much. connell: combined?

>> that fannie and freddie, you will see offerings that could be in $100 billion. connell: how will they do it? same time or stagger it? >> great point. they don't know. they're discussing all of that. this is sort of interesting in this sense. fannie and freddie have been in government control, conservatorship since the financial crisis. how do you get it out? you have to build capital. one way they do that from what i understand retain the earnings which they haven't. send it back to the treasury department. one way to end that, recap it through ipo. there has been informal talks with the street on this, between treasury annual street firms. connell: okay. >> they are clearly talking about this capital, recapitalization, through massive public offering. timing on that is un-- i can't give you timing. connell: we don't have any idea then? >> how many years are left to this, to the trump administration. connell: right. >> if he doesn't get reelected. connell: want it done before the election is the bottom line? >> i think so.

but listen, we're talking, again, the biggest -- depends how much mark calabria, head of fhfa, housing czar wants to recap. i think on upper end. if he goes on the upper end could be 180 billion-dollar offering staggered. connell: yeah. >> here's the thing, if you own the stock i can't tell you how you're going to fair. some is dilutive. more shares, stock goes down. some of it is not. depends how they work it out. but the offering is being spoken about right now. that is a pretty big story. connell: saw stock movement on it. we let you know deal with the twitter trolls. >> i'm sure they will. connell: this and tesla, people get fired up. >> i don't know why of all the things to go nuts over. connell: quote fail. without fail. new fears that a trade deal could be upended. we're not talking about canada and mexico. the vice president is up in canada. catch us on "after the bell."

melissa joins me as we dive into the worstmont of stocks this year. earnings, including be beer. we'll be back here at 4:00 p.m. next on "cavuto: coast to coast" smart kid. indeed. are you in good hands? back then, we checked our zero times a day. times change. eyes haven't. that's why there's ocuvite. screen light... sunlight... longer hours... eyes today are stressed! but ocuvite has vital nutrients to help protect them. ocuvite. eye nutrition for today.

connell: some uncertainty today on a way forward on a trade deal but for once we're actually not talking about china. we're talking about canada and mexico. you see vice president mike pence meeting with canadian prime minister justin trudeau on the new nafta or usmca. kristina partsinevelos is covering it for us. road bumps or what is the latest here? >> the latest here, canada mexico said they wouldn't ratify any deal if there were any tariffs. the tariffs were lifted which is why the ball is rolling. why you have mike pence in canada in ottawa right now

discussing the situation with the prime minister of canada, prime minister trudeau. the ball is rolling through canada, passing through the house. moments ago actually you had both leaders speak to reporters. listen to their optimism. >> a win-win, win, for all three of our countries. the ratification process is another opportunity to work together to collaborate for the benefit of our citizens. >> i also want to thank you, mr. prime minister, for the progress that you're making here in ratification in canada and i want to assure you we're making energetic efforts to move approval through the congress of the united states. >> canada wants to rush to get this deal forward, the the house is off few weeks in june and they have their own national elections on october 15th. on the mexican front, we have news that the mexican government is pushing through to ratify the

deal. the president said it would be soon. the senate is closed in mexico right now. they're planning to open up special periods just to discuss the usmca. what could be the hold up? here in the united states, congress. house majority speaker nancy pelosi has issued concerns regarding the labor enforcement rules within this new trade deal. she has said that congressional members on both sides of the line, republicans and democrats are going to head to mexico next week to meet with officials to make sure that these new labor standards, the fact that some automakers are making at least $16 an hour, some other details, will be enforced. you need democrats to give the green light. there will be a 60-day voting period in congress. then we could have a deal. we know thus far mexico and canada said blatantly they will not reopen negotiations if congress cannot agree, or decide to add new parts to the usmca. so we have this ratification but

it is still needs to be done here in the united states. connell: i was struck by the vice president's choice of words there. we're making energetic efforts to get it through. >> this is not a big sell, energic efforts, what does that mean. connell: he knows there is a lot of work to do to the points you're making. >> exactly. connell: kristina partsinevelos with us. the president, president trump commenting on possible deals talking about china and also talking about iran earlier today. let's take a listen. >> china is becoming a very weakened nation. just as iran has become a weakened nation and iran wants to make a deal also. connell: fox news military analyst colonel david hunt whether or not we could see a deal with iran or maybe even with china but i did think it was interesting that he put the two together there. i don't know what it means from military perspective or national security perspective or maybe it tells us something that he mentions china and iran in the

same breath. can you make anything of that? >> the president said something. the most powerful man in the world. we have to pay attention. i think iran has certainly more trouble economically. it's a smaller economy. we squeezed them very, very hard. connell: put a lot of pressure is of the is it working? >> we're also talking very aggressively after four boats, four ships were hit in the straits of hormuz. we know two were hit out of yemen. connell: yep. >> soldiers are moving. so there is a lot of pressure on iran. china seems to be an economic issue, from that standpoint, security standpoint. we appreciate the government owns majority of businesses in china. the military and intelligence community own a lot of businesses in china. so this is, it is going to be who blings first. how much pain the american public can take. how much pain the government and the military in china can take. connell: let me ask you up with more question about china then we will talk about iran which to your point is seemingly the much

bigger issue militarywise, how much of a national security threat in your view is kind? you mentioned it is economic event or story but how much after national security concern is china right now? >> major. from a technology standpoint they have been ripping us off for 40 years. they and russia are very aggressive coming after us in technology and interfering. they're also putting, you know, man-made islands in the china sea without any interference. it's a very aggressive country. they have a long-term look versus ours which is normally short term. connell: yeah. >> china is a concern. we have to pay a great deal of attention to them. they're a huge trading partner as we know. connell: right. on iran, to put the two back together again, you mentioned there has been a lot of pressure put on the regime there from the trump administration. is all of that working? what's your take how this is, you know played out over the last few weeks? >> economically it is very hard

on iran. and it should be. militarily, we, we've been in a war for 18 years, global war on terror. soldiers in middle east and syria and iraq in combat and certainly afghanistan. we're reticent ficking out whether we want to go into a fourth country four times bigger than iraq militarily. but we certainly are moving ships and soldiers around and talking in a very rough manner about iran. connell: yep. >> i hope we're not really thinking, as you were 18 years ago as we were about iraq and afghanistan. we don't need that. we have so much pressure we can continue to put on them economically. combat is not something we should be considering with iran. connell: fair enough. thank you for your analysis of that. colonel hunt, good to see you. thanks for coming on today. in a moment, markets on track for the first down month we've had in 2019. pullback off the highs, 5% plus

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connell: we do have some new warning signs flashing this week in the markets. first of all stocks are on pace for the worst month as we wrap up this month of may since december last year. the warning signs are coming from the bond market and the inverted yield curve and headlines and recession fears going along with it. you get more money parking your money with the federal government for three months than 10 years which is not normal. kingsview asset management cio scott martin joins us right now. >> speaking of not normal. connell: i was talking real slow to see if you would say it, rather than forcing me to. >> i knew what was on your mind.

connell: you know, one of the things i saw that was interesting this morning is we've had this conversation now for a while. i think we probably had it back last time two month ago when this happened. "axios" wrote up a piece, every time it happens, 2006, i believe 2000, all experts, people come on and say, this is, this time is different. it is not a big deal. then a year later, year-and-a-half later, sure enough you have a recession. is this time different? >> well, i was actually going to say something similar, i was trying to change on the fly. this time it is the same, connell, but the same for different reasons, let me put it that way in the sense that there is a risk appetite drawing up outside as you mentioned three month where there is more concern overgrowth, over inflation. here is another thing similar to what happened before, yields are dropping everywhere my friend. it is not just the u.s. you look at australia, look at germany, emerging markets, yields are

falling all over the globe. it is concerning in the u.s. but globally how risk-off this appetite is turning into outside of three months. connell: i have a headline that plays into our conversation, i ask you to ask because it is about rates. richard clarida, federal reserve vice chairman, no need for rate cuts unless the economy weakens more from here. we have seen stocks come back a bit. we're up 70 on the dow. what do you make of that and are we headed for a rate cut or maybe we stand pat for a while? >> i think we're going to stand pat for a little while, maybe six months but i tell you the markets, the fed funds futures markets which ends up being a good predictor of fed moves is the opposite. it says the fed needs to cut several times by the end of 2020. we have data guys an gals in our shop. we look and economic data. the data, 200,000 jobs added per month, wage growth is

accelerating, gdp over 3%, maybe not as high in the second quarter here, still gdp positive doesn't necessitate a rate cut until later this year. connell: weakening from here based on out look that changed on the trade war front or something else? >> yeah. i think that obviously influences rates as well. because we've seen the trade talks cool off, certainly even with usmsca you guys are talking about coming to the table now, that has been delayed. we've seen that push rates down too. which makes concerns about future growth prospects. connell: good to see you as always, scott. this time is different or maybe not. i think what you said. >> same ol' same ol', between you and me. see ya. connell: uber is expected to report a one billion dollar loss. there is one thing that may make this company profitable eventually. we'll explore that one thing when we come back.

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♪ connell: all right. welcome back. we are digging into the business of innovation all day long here on the fox business network and as we do so walmart is pushing a.i., artificial intelligence. "fbn:am" co-host lauren simonetti joins us with more on

that. lauren. >> good afternoon, connell, i got to tour the artificial intelligence factory if you will at a walmart in new york. connell, it looks like a regular store. you wouldn't know the difference until you looked up and saw thousands of sensors and cameras. watch. >> this is a 50,000 square foot store, a working walmart as you can see. we're using this space to build, explore, discover, what we can do with artificial intelligence in retail. >> when customers notice they're on tape, there are cameras everywhere, do they get intimidated? >> they're really curious. that is the most common reaction curiosity what we're doing with the store. in this instance we have banana table. a number of tables are pointed up to the ceiling at the banana table. it can identify black areas, for example on the table and sends alerts to our exist systems to send associates to restock.

>> all the cameras are watching you, watching shelves. walmart was very specific to say they are mindful the way they are doing this. they also can afford to do it. they have half a trillion dollars in annual revenues. so the concern is, as they study a.i. and innovation and how to scale it to change, to perhaps walmart stores, can other brick and mortars, smaller retailers who don't have the power, that money, that revenue do the same? there is one report out that says about 7,000 stores might close this year. so, you can't do it at walmart's doing, how do you compete. connell: you say they're watching us. are they picking up, actual identities, ages of shoppers? >> no, no. more watching of shelves. they have sensors hooked up. i actually compared one pound of meat and two pounds of meat. the camera knows the difference between that amount of detail. connell: knows what to sell. >> if you put it in the wrong spot, it alerts a worker to put

it in right part of the shelf or restock that shelf. connell: interesting use of technology. >> making the experience better. connell: trying to. lauren simonetti with us today. speaking of technology, uber is expected to report a loss this afternoon after the bell, over a billion dollars, as we hear from the ride-hailing company with its results, first time since the ipo. now, one thing that uber is pushing, especially as it moves into the future, the whole idea of a robo-taxi. could that be eventually what helps it to make money? digital trends editor-in-chief jeremy kaplan is here as well as susan li who has been covering uber for us. good to see you both. jeremy, they are not making any money, they pay drivers, but once we have self-driving ubers, we have a very profitable company. what do you say to that? >> that is a very long term gamble. yet uber is spending lots and lots of money. 30% of r&d funds go to

self-driving vehicles. we haven't heard anything about this division since april when they announced a a billion dollar investment. before the ipo, a billion dollar commitment to support this fund. >> we'll hear about uber elevates in washington, d.c. on june 11th. after the bell, this was priced in. this was in the ipo filing, they tripled losses to 1.1 billion. revenue should come in 3 billion or so. it is about margins, negative margins. when did that become an investing trend you buy into a company that is spending more than they're actually making? i think uber has a lot to prove especially with guidance going forward. we know lyft said this year, 2019 will be peak losses for them. what about uber? connell: every now and again company does something like that, the old amazon days, they used to spend like crazy. >> different. amazon was growing 3,000% going into the ipo. uber has revenue growth slowing. connell: the self-driving idea is interesting.

to your point where this goes on timing, mit did a study, threw a little cold water on it. everybody assumes the costs would go down a lot. mit study said they go down, but not much. cost between $1.58 to 6.01 per mile. that was higher than what most people think which is 40 cents. >> concept we're stripping out the driver. the driver is a big cost savings. that is not that big of a cost savings. cars, gas, fuel, all over overhead. >> initial estimates it's a cash burn about the self-driving unit. $250 million a quarter. not even talking about the whole year. if we're looking at cash burn of a billion dollars for uber -- connell: susan, that is not real quick the path to profitability from analysts you're speak to, what is? >> that and uber eats. let's not forget that 20 billion-dollar business alone. they deliver $10 billion of food every year. it is about monetizing right now.

it is about capping losses, generating profits in the future. uber is much bigger, bigger footprint, more diversified than lyft. connell: we have to run. you like uber at this point? >> they're losing a billion dollars this quarter? connell: yeah. >> like it the path to success is possibly self-driving cars which would take years if not decades. >> bikes, everything else. >> i'm not an investor here but i'm a little scared. connell: susan we'll see you after the bell. democrats pushing answers for the mueller probe and whether that is getting in the way of legislation. a look what can get done and cannot get done after this. arni, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions.

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connell: welcome back. good to have you with us today. i'm connell mcshane filling in for neil. we have seen a bit of a bounce in stocks after that news we brought you a few minutes ago from the fed vice chairman, saying the economy is in a good place for the time being but the fed's ready if things change to adjust policy. in other words, if there's an economic downturn, don't worry about it. we're here for you and we will cut rates is essentially what he was saying. again, nothing imminent but those comments from the fed vice chairman definitely helping stocks, that went from flat to up maybe 70 points on the dow, higher by 66 now. more to come on that. we will dig into it further in a few minutes. meanwhile, lot of uncertainty out there of the

political kind. trade, impeachment, you name it, could be leading to a summer of uncertainty for investors. president trump addressing calls for his impeachment before he headed out to colorado earlier in the day. here he is. >> to me it's a dirty word, the word impeach. it's a dirty, filthy, disgusting word and it has nothing to do with me. there was no high crime and there was no misdemeanor. how do you impeach based on that. connell: all right. a question for chad pergram, who joins us now on where all of this stands in the house. it was interesting, yesterday we saw nancy pelosi and it seemed like it's the last thing she wanted to talk about, to some extent. she gave a lot of caveats. where do things stand now? is she really getting pushed on this impeachment thing or what? reporter: considering what the math is in the house of representatives. there are 432 members, three vacancies and guess what, 44 members including the republican justin amash from michigan are for that. that works out to 9.8% of the

house. they are nowhere near having the votes to do that. now, each time congress comes back to session, they have been out for the memorial day recess now, those numbers seem to go up a bit. you can imagine that that might be a little bit of a dramatic shift after the remarks from robert mueller yesterday but nancy pelosi is trying to keep her powder dry. she knows that this will completely sidetrack the agenda. that's why she's leaving everything on the table. if you listen to the comments from jerry nadler, chair of the house judiciary committee yesterday, he wouldn't even commit to having a subpoena for robert mueller to bring him in. there's been a lot of democrats, nadler included, who want to try to square what mueller said in his report and also the memo bill barr, the attorney general, wrote. remember, they still have to vote and determine at least among democrats what sort of contempt they want to hold barr in. they moved that through the judiciary committee and they have now decided do they want to pursue criminal charges against him, sue him or inherent contempt where the house of

representatives decides that on its own or enforces that on its own. that's still not come to the floor. connell: this was brought up from "wall street journal" guest earlier. some democrats feel they are in a position after what mueller said yesterday, the tone of his comments, they are damned if they do, damned if they don't because if they, as some of them say they do, take the mueller comments as kind of an impeachment referral, they used that language yesterday, then you have to say why aren't you impeaching, then? you are only not doing it because of political reasons, because you don't want any backlash. you wonder if there's some thought in the democratic caucus they wish mueller had said nothing at all. reporter: there is probably some of that. pelosi is pretty clear. she wants to have an iron-clad case if she were to bring it to the floor and also be able to get a conviction in the senate. that takes 67 votes. again, they have only had two trials in the senate for impeached presidents, president clinton and andrew johnson in the 19th century, and they failed to convict in both instances. so pelosi is unwilling because she is all about the numbers and

what the votes are. to address the comments of the president just a few moments ago, he said well, there was no high crime or misdemeanor committed. impeachment has always been a political question. if you go back to the thinking behind this, when the founders were putting this together, alexander hamilton said it has to deal with an unfitness for office. there might be a lot of democrats who would be willing to go for that, but when you look at only 44 members and only one republican, you would have to have a lot more folks jump on board here. they are nowhere near doing that. but here's the problem for the democrats. it's the perception, the perception that they might be talking about this and they are going to be talking about this all summer. they have to raise the debt ceiling, they have to fund the government and even that talk is put on the back burner when it's compared with impeachment and investigation talk. connell: boy, it will be an interesting summer. always good to see you, chad. one of the things people are asking is whether or not congress and the investigations chad is referring to can find something robert mueller was

unable to find. former deputy assistant attorney general tom dupree joins us now. what do you think? >> i think it is a tough order to say that the congressional investigators would uncover evidence that bob mueller's team failed to find. the fact is, bob mueller's team, love him or hate him, these were the varsity, committed, experienc experienced, aggressive prosecutors. they knew where to look for evidence. they obviously had very extensive access to witnesses, to documents that congressional investigators wouldn't have. so to think that these congressional investigators are going to turn over some stone and find all sorts of smoking gun evidence that bob mueller and his team missed, i think is very unlikely. connell: chad pergram made a couple good points. one, we are nowhere near this in terms of support in the congress. he said the number is 44, would need to be way higher before even having this discussion. but the other point is that this is a political rather than legal process, as you know. so you could make the argument, you could see democrats have already done this, that hey, basically their take-away, some

of them that are supporting impeachment as robert mueller said yesterday he would have indicted the president had he not been a sitting president and they can take that argument, say now it's up to us. that is something that they could say, right? what do you make of that? >> yeah, look, they could say that. i think frankly, that mueller's comments yesterday, lot of people saw it as beneficial to the democrats. from my perspective, it really put them in the box because i think it put the spotlight on the democrats in the house of representatives to basically say do you have the courage of your convictions. you professed to think the president committed these offenses. if that's honestly what you believe, how could you not vote for impeachment. connell: that's what bill brought up earlier. if you really think this, you better impeach. if not, you're like well, we didn't really mean it. that is kind of a tough political spot, right? >> it sure is. for nancy pelosi, can you imagine how it would reflect on her and her leadership if she pushed forward with impeachment and then couldn't even get a majority of the democrats to support it. the president would claim that was further vindication, the democrats would seem like they

were playing political games, harassing the president. if they go down the impeachment road i think it's fraught with peril. connell: careful what you wish for. good to see you, tom dupree. now, to senators tregarding the impeachment push. let's watch. >> i believe if it was left up to speaker pelosi, she would trust her instincts and know that the american people are getting fed up with basically revisiting the same facts and trying to draw a different conclusion. she may be forced because of the pressure from the presidential candidates and from members of her caucus to move forward. >> it would go if they succeed to the senate, it would go right to you. then what? >> again, that would be up to the house but i actually agree with your earlier speaker that i think nancy pelosi has been navigating this appropriately. she's saying hey, let's get more information, let's only look at this on a methodical basis. i think that process ought to

continue. connell: the idea it would stall out in the senate seems to be kind of the conventional wisdom at this point. let's bring in from "the washington examiner," a commentary writer on how all this is getting in the way of any kind of legislation push. what do you think of that? the idea this will take up, to chad pergram's earlier point, a lot of the summer, so the idea of getting something done seems far-fetched. >> yeah. obviously it's very difficult for the senate to move forward with passing anything. this idea about impeaching president trump is not getting the public backing that many democrats think it is. in a monmouth poll from this month, 56% of americans oppose impeaching president trump. that's a slight uptick from march when it was 54%. you know, pelosi was saying there's not a solid case for impeaching trump. if you are looking at the senate, you know, it's been a relatively dead first half of

2019. the main things they voted on were robocalls and disaster aid. connell: both are important, especially the disaster aid, but i was about to say, many of us want to get rid of those silly robocalls. >> who doesn't. that's like a bipartisan move. if we are looking at the future here, in the summer, the most they could probably come together on is continuing resolutions, possibly reauthorizing some of these aid packages like to farmers throughout this trump trade war and obviously looking at things like expanding our apparatus in national security. connell: what's the real appetite for this? people you are talking to, i understand the activist base of the democratic party, i'm sure that's why we saw the comments from people running for president. it seems to me the only democratic senators that maybe would want to move forward on this are some of those that are running for president. you heard the tone of mark warner, for example, talking to neil a few minutes ago. just seems like it's the last thing they want to talk about. they know this came back to bite the republicans in 1999.

>> there's a giant political risk in terms of moving forward on impeachment. democrats right now obviously don't have a solid case for impeaching trump and you can make a strong case that impeaching trump would only divide the country even further and put most of the blame on democrat -- connell: and maybe help him, right? it helped bill clinton. >> absolutely. it helped bill clinton politically speaking and it would obviously put democrats' chances of trying to get more gains in the senate or expanding their lead in the house or even getting the presidency in 2020 and they simply can't risk that. connell: they know that. those voters that will decide it, you know, presumably the moderate voters in pennsylvania and the suburbs say that's not why you're here, that's not the push, right? >> right. the thing is, there's an open window in 18 months to remove trump from office that doesn't require congressional intervention. i think a lot of voters would prefer to go down that route instead. connell: interesting to see how this plays out, especially after mueller from yesterday. good to see you. thanks for coming on. why some investors,

meantime, are betting on a bounce in the market. a bounce back. we will talk about that after we come back. we are now up 57 after the comments from earlier. we'll be right back.

connell: the war of words with china is continuing. in fact, the chinese official used some rather harsh language,

accusing the united states of quote, economic terrorism. edward lawrence all over this as usual, joins us with the latest on trade. edward? reporter: this is a good news/bad news scenario with this. the good news is for farmers and on the trade front, china confirms they will continue to buy american soybeans. there have been purchases each month this year and the chinese commerce ministry is expecting deliveries of soybeans in july and august. the purchases are not to pre-trade dispute levels but still, they are buying soybeans. the bad news, looks like the tariff dispute may be here for awhile even though president donald trump remains optimistic. >> the tariffs are having a devastating effect on china. people are fleeing the country with their companies. these companies are leaving for vietnam, other parts of asia, and they are even coming to the united states because then there's no tariff. i think we're doing very well with china. we'll see what maphappens. i can tell you china very much wants to make a deal.

reporter: a spokesman for the chinese ministry of commerce saying today that the u.s. is trying to bully china into a trade deal, adding that the tariffs ultimately hurt the american consumer and the spokesman going on to say that china will never give in and the needs needs to show sincerity for china's core concerns. one of those concerns is china should not be forced to change its laws. the chinese are basically asking the trump administration to trust them that they will enforce protecting intellectual property. u.s. trade representative robert lighthizer has said he wants everything in writing in an enforceable trade agreement. he says the chinese pulled back about all the concessions they made during trying to make a deal with the u.s. connell: your sense just talking to sources on the chinese side, they are really digging in at this point? reporter: that's what m hearing. they are really digging in. the actions behind this, you know, their president, president xi jinping, recently made a trip to the rare earth mineral producer signaling a little bit, sort of hinting they may pull back on some of those.

i see a lot of digging in on this. looks like a prolonged war. connell: edward lawrence in washington for us. meantime, the federal reserve vice chairman richard clarida making comments earlier today, seemed to help stocks a bit. saying the fed would only consider rate cuts if the growth outlook darkens. will we see rate cuts this year? market watchers join us. joe, to you first on this. my read was basically hey, we're here if you need us. that was kind of what he was saying. will we need them? >> i think we might. as long as we have this uncertainty about tariffs, you are going to have a reduction in capital spending and that's going to have an impact on gdp. the second thing that happens is what happens with the increased costs. tariffs are simply a tax, so consumers and companies are going to be paying more for these products starting on this weekend. how does that get translated into the economy. it's reduced earnings or higher

costs to consumers. one of those two things must happen. when you go from 10% to 25% on hundreds of billions of dollars in goods. again, the fed might need to act. yes. connell: we have seen some of this in the bond market already. some of the concern, i mean, about this, with the inverted yield curve which i guess seems to -- everybody has been talking about whether it signals that recession is coming. at the very least it seems to signal that maybe a fed rate cut is needed or is coming because of what's happening or going to happen in the economy. what's your read on things? >> well, i was saying last summer that the fed shouldn't be raising rates any further. the last two rate hikes they did, they shouldn't have done. i'm certainly for the fact they should be cutting rates here. i personally don't think they will this year. i think they will give it a full year. it takes about six months for a rate hike to work its way through the economy. i think they will start looking at things this summer going into the fall, so perhaps in the early part of 2020, they will look to cut rates. i don't see it happening this year.

connell: give me a quick take -- sorry to interrupt -- what joe brought up about the tariffs, tough to pass along the 25%, maybe we even get more after that. >> i will say this. i don't think we reach a deal with china. i think it's because of china. i purposely think -- i think they have purposely driven these trade talks out longer than they needed to and will try to hang on to the 2020 elections and hope president trump loses. that's where i think this is going. i think the tariffs go into effect. whether they raise prices or not, that's an interesting point. look, no one's talking about this. the chinese already subsidize a lot of what they do over there. who's to say they don't decide to subsidize the prices to drop those prices down so in effect, you get a transfer from the chinese government to the u.s. government of wealth? those tariffs could be absorbed by the chinese because the government could simply subsidize pricing down to make them competitive. in addition, you will have substitution effects over here, you will have a lot of things that happen. so i don't see the inflation being there that people are worried about. we haven't seen it with the tariffs that have already been implemented. we have 2% cpi numbers that just

came out over the last 12 months, cpi at 2%. that's a low inflation number. connell: let's talk about that for a second. joe, i'm going to go back to you. it brings up this argument hal is making, some would say well, okay, 10%, but doing this at 25% is a little bit tougher both on our end and on the chinese side of things. how do you see this, because if hal's right and not necessarily about the tariff part of it but about the idea we're not going to get a deal any time soon with china, this could play out for a long time. it's important to see how businesses will handle it. how do you think they will? >> i think they are going to eat a lot of the cost. just to be clear, this is a bilateral conversation. if we haven't resolved this by early next year, the escalation will be much greater. it's not going to stop at this 25%. the chinese are going to retaliate. they are going to retaliate with u.s. companies. that's why apple is being hit so hard. this is not a one-sided debate. tariffs aren't the end point.

it's the starting point. which is why this is so dangerous. it's the unintended consequences and this very large party on the other side, what they decide to do, even a hint of what they might do with rare earth minerals could create all kinds of trouble -- connell: that's a reason why this is so complicated. that could hurt them, too. >> of course. this is a no-win. nobody is winning in this debate. connell: i get that part. >> exactly right. connell: we have to run for now. obviously we will come back to this. hal, good to see you as well as joe. we have a new warning on iran to talk about as we continue. it comes from the highest ranking u.s. military officer. that's next. patients that i see that complain about dry mouth, they feel like they have to drink a lot of water. medications seem to be the number one cause for dry mouth. dry mouth can cause increased cavities, bad breath, oral irritation.

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connell: president trump and his comments earlier in the day said iran has been weakened and also wants a deal, wants to make a deal, is what he said.

this comes after the chairman of the joint chiefs of staff, general joseph dunford, revealed what had sparked some of the new worries about iran. >> saw something that looked more like a campaign than individual threat, and it was the geographic span and the perception that that activity would try to be synchronized in time that caused us to look at that threat differently than 40 years, by the way, of malign activity by the iranians. so malign activity and threat to our forces by iranians were not new but a more widespread almost campaign-like perspective for the iranians was what we were dealing with. connell: former deputy assistant secretary of defense under george h.w. bush joins us now. i find that that's an interesting kind of way of -- we always knew, this has been building up over the last few weeks, there was something we didn't know and there still is about what's happening with iran, but the way the chairman phrased it there, that it's more of a campaign than we have seen

in the past, what do you think he means exactly? >> i think chairman dunford is referring to perhaps a change in iranian strategy. certainly they saw a change in their tactics, techniques and procedures. so what the u.s. mill titary wa to do is make sure they assess how they deter iran. that's why you have seen the changed military response. connell: we don't know the exact movements, we know some of it. we have seen some of the buildup and know some of what we are reacting to as a country but if you don't know the exact tactics, what type of strategic goals, end game, is iran looking at, you think, that maybe they weren't in the past? i know it's speculative. >> it's hard to get in the head space of the ayatollah but what's clear is iran is responding to the maximum pressure the trump administration is applying. of course, united states pulled out of the jcpoa, the agreement that was put in place during the obama administration, so what the united states has to continue to do is ensure that

iran responds in a fashion that leads to the negotiating table and doesn't allow them to act out with malign activities that general dunford referenced. connell: okay. so the line here of course between where things kind of take a turn to the violent side and the military option becomes a real option is what? what do you have to be careful of here? >> well, miscalculation would be the first. most experts point to that. we have to demonstrate to the iranians that they don't want to take any action because u.s. response will be so overwhelming, it will work against or interest. connell: do you think -- what do you think the probability is this turns into a military conflict? is it very low? >> i couldn't put a number to it but i think the clear communication that we have seen since this intelligence has come out, the increased u.s. military presence all lead to a clear messaging not allowing iran to miscalculate. of course, the objective here is

to bring the iranians to the negotiating table. they have resisted that to date. now we have to demonstrate to them there's really no other route for them to take. connell: fair enough. good to see you. thanks for coming on. shifting gears a bit to the severe weather that just continues to be an issue for the midwestern part of the country. historic flooding swamping arkansas, it's actually turned deadly there. matt finn has been covering it and joins us on the ground in fort smith. matt? reporter: this neighborhood is one of many that was hit hard by the flooding. the city estimates up to 1,000 homes have been affected or flooded. these images speak for themselves. this property we are standing on, the homeowners tell us the birdhouse out there is about 12 feet tall and that is now almost entirely under water. of course, a backyard inground pool does not stand a chance. all around you can see homes in this neighborhood taking on a lot of water. unfortunately, this water could sit here for days. we have seen people that are right now going back and forth from their house to dry land on

canoes. the good news is this river is receding but that means all this water is headed south towards the capital. the national guard tells fox business and fox news its rescue crews have moved to jefferson coun county, that's an area of concern. it did rain hard on and off all day yesterday. that's not welcome. the army corps of engineers tells us that new precipitation did cause water levels to increase. we talked to a man in this neighborhood who says he helped move his parents out of the house in about eight to ten hours. >> crazy. i really don't know how to describe it. if you look at the water over here, the closest it's ever gotten is to the flower beds before. this is catastrophic. you look across the cove and see all the houses submerged, i feel awful for these people. reporter: the national weather service says there are record flood levels up and down the arkansas river. here in the van buren and fort smith area, 40 feet, nearly double the flood stage.

the farmlands and agricultural community taking a big hit here as well. one farmer we talked to estimates a million dollar loss. another farmer says total crop loss. there are a few levees that are weakened or compromised up and down the arkansas river. the army corps of engineers this afternoon tells fox business they are holding up but as you can see with all this water, evacuation plans must be in place. connell: what a tough situation for so many people, residents. to your point, the farmers. we have talked so much about that business being hit so hard, whether it's tariffs and in this case, the weather. thank you, matt finn in arkansas for us. as we await the president, remember, he's the commencement speaker in colorado at the air force academy today. we show you some live pictures of that event. that speech is coming up soon. we'll be right back. let me ask you something.

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of the new york stock exchange, where stocks are off their highs. the dow currently up 10, the s&p up 1 and the nasdaq up 6. highly successful startup coming to an ipo, having a hard time keeping up with customers. case in point, amazon, the online shopping service, is setting up hq2 in nashville, tennessee with serendipity labs. it is widely reported the company is seeking to arrange $2.75 billion in financing which is not unusual for an ipo but will remind people if this company is not making money, it will remind people it lost $264 million in the first quarter and lost more money than it brought in in sales last year. meanwhile, fed ex, shares are a little lower today as it said it

plans to expand delivery from six days a week to seven days a week. that won't be inexpensive. they will also bring to customers' doorsteps packages they currently drop at usps, the post office. this is all about our online shopping addiction, as we buy more and more goods online instead of in stores. clearly this company feeling the heat from amazon and walmart, who are building out warehouse networks to serve customers. remember, amazon recently offering workers $10,000 and three months' worth of pay to start up their own delivery services mu services. lots of competition even though there's lots more packages to be delivered. connell: we want it now. that's how we roll these days. all right. let's get back to disneyland. the new disneyland star wars galaxy's edge theme park opens up to the public tomorrow. pretty cool shot there. deirdre bolton joins us live with a sneak peek. reporter: yeah, this place is

going to be hopping tomorrow. in fact, all tickets are sold out from what we understand. i think you can still, if you really want to be here, book a night, a few nights at the hotel, disney hotel, you will get complimentary passes or the ability to come into this part of the park. we talked about this, 14 acre galaxy's edge, $1 billion investment that disney has put into it. when i sat down with the ceo, bob iger, we talked about just how enthusiastic, how disney fans are, they live and breathe this stuff. i asked him what they meant when they were building this part of the park in regards to attention to detail. here's what he told me. "star wars" fans are so intense, so dedicated, did you have to put more focus on the detail for this part of the park than others? >> well, our imagineers care about details in anything that they do. it was part of the legacy that was walt disney, who loved

details, too. he really did believe in sweating the small stuff. our imagineers do that. reporter: so even when i was in the millenium falcon which is obviously behind me, i got to be in that as part of the ride, i got to be a pilot, was sitting on one of the co-pilot posts there. they have everything you see in the movie, feel like you're on a live movie set, even got my team up to warp speed. don't want to brag. connell: you look pretty comfy there. not bad. i'm sure the kids are jealous. reporter: i'm pushing buttons. oh, yeah, they certainly are. this is huge business for disney, as you well know. if you look at by revenues, measure by that one metric, this is the most important part of the disney empire and as we know, when cars land was added to the park you had attendance up 23% in that year alone. we are enjoying ourselves but for disney this is a very

significant part of the business. connell: give us an idea of how the economy is going out there as well. thank you. great interview. reporter: thank you. connell: so great, we want to spend our next few minutes talking about another comment bob iger made to deirdre. this specifically was about china and how he can deal as a company with the trade tensions between the u.s. and china. here he is again. >> so far, we have seen nothing. if you are asking me whether long term, i have some concerns about what might happen with trade, sure. i'm not losing sleep over it but sure, it's something that as i look ahead and think about the things that i should be worried about or at least focused on, that would be one of them. connell: mike murphy joins us now. i would think it is, you are ceo of a big company like bob iger is, but even a small company, we talk about uncertainty but it's tough to gauge this one. lot of opinions out there on how long china's a risk, if it's forever or for a few months or whatever it might be. >> for sure. happy to be here. yesterday i was in california with a friend who runs a medium to large sized business out there. he said he's already feeling the

effects on minerals that he gets for his business, on metals and different types of minerals that come over from china. the cost is going through the roof, as he puts it, and he can't pass that on to consumers here in the united states. so short term, it's going to have an impact. i think the bigger picture, though, is long term, if we focus on dealing within the united states, what does that do to china? does that box china out or could that actually help fuel more growth in other industries here in the u.s.? i don't have the answer yet but it's an interesting question. connell: you started thinking about it. maybe you weren't a few months ago, this whole idea of everybody thought at some point, it's a win/win, you know, way over a billion people and we have companies that want to sell to them, they are going to sell to us and we will learn to co-exist in different systems but now it does seem like more people are having different thoughts about what happens if we go separate directions. there's two separate ecosystems. that's a real possibility, especially for technology. >> for sure. i think it is. just remember one thing.

going back to the old way, to the unfair trade agreements or trade deals that we had, that i think is completely off the table with president trump. let's keep it there. if there's going to be trade, it's going to need to be fair trade. if it doesn't happen, i think there's a huge, we run venture capital funds so we see technology companies on a daily basis. there's a lot of great technology here in the u.s. it would be ideal for everybody involved to be clear, a good trade deal between the u.s. and china. connell: would you invest in a chinese technology company now at all? that had business here? or you completely avoid those type of companies? >> i wouldn't. and the reason is we try to map out a solid risk/reward outlook for our investors. we need to make good returns for our investors. right now, it's really hard for me to say i have any sort of edge on when or if this trade deal will come through. connell: what about a u.s. company that relies on china for

soc some of its business or components in its parts, how much of a factor would that be as you consider an investment? >> interesting. we invested in the early stage in a company that makes shoes, it's a hot deal now, a billion four valuation. they just opened a retail store in china in the last two months. the story is still to be determined there. but the answer is yes. if they are going to sell into china, i'm fine for that. but the main business being headquartered in the united states i think is the most important part because you don't know what kind of pushback the chinese government could have on u.s. businesses. connell: sorry i didn't catch exactly what that company does. what do they do? >> they started out making wool sneakers. now they make sustainable sneakers. it's one of the i will call it, we like to talk about the winners, it's one of the hot investment -- connell: a consumer company. >> i guess i'm asking because if it was a technology company, would that change your thought

about it? >> no, i don't think so. because we have a lot of tech businesses based here in the u.s. that do sell into china. right now we're not seeing that as a problem. but i think everybody, the people running these businesses for the most part are sitting back saying what can happen to us, what type of tariffs could come in, what type of pushback could come from the chinese government. there's a lot of, as i said, uncertainty, whereas locally in the u.s., you have a better picture of how things are going on. ultimately, i think it will get resolved but if -- china does have a huge market so if you can tell whether it's a tech business or consumer business, because there's always some sort of tech involved, if you can get the chinese market and chinese consumer, that's a win for your business. there's a lot of people over there looking to buy our products. connell: interesting. you are in the camp of it will get resolved eventually, not the hey, we're going two separate directions camp. >> i was solidly in the we will get resolved camp but i'm

starting to accept the fact that maybe it doesn't. trying to figure out what that looks like. one way or the other it's going to be okay. connell: it's a real honest conversation because people just don't know. it's very interesting. >> anyone who tells you they have it figured out, have them come see me. connell: exactly. good to see you, mike. thank you. mike murphy. we will continue on that topic because that is really interesting and kind of the secret to all this thing about what's exactly going on with china. is it just a simple trade dispute or is it a lot more than that. meantime, something that has been somewhat lost in all this talk of impeachment that we were talking about earlier, president trump saying he's got a major border announcement. that's coming. more on that when we come back.

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there was no high crime and there was no misdemeanor. so how do you impeach based on that? and it came out that there was nothing to do with russia. the whole thing is a scam. it's a giant presidential harassment. connell: that was earlier today before the president left the white house. a number of 2020 democrats have been piling on the last two days on the impeachment calls. should they be focusing more on the economy and what would be the better political play, what does it mean for the market.

charlie gasparino is here, a former prosecutor is here and -- >> they seem really mad. connell: you're not doing any voices today. where do you think this is all going, anywhere? >> i think it's going to impeachment. connell: really? >> i don't think he will be removed from office but -- connell: you just see pergram's report earlier? they only have 40 something votes for it. nowhere close at the moment. >> they will get it. here's the thing. chris ruddy, a good friend of mine from news max, is plugged into both sides. he's very close with trump. he said it's almost inevitable, he told me this when the democrats took the house, it's almost inevitable because every member of the base wants an impeachment hearing. connell: but every member of the leadership doesn't. interesting to see who wins that tug of war. >> the tail wagging the dog. >> you and i had this discussion with neil probably a year ago. connell: he doesn't remember what he had yesterday. >> that's another story. what we were talking about is the danger here for trump has

always been his weakness within the republican caucus. it's not talked about almost ever but there is a faction within the republican caucus of republican senators who would not be sad -- >> justin amash. >> i can tell you there's a faction, not big, but those numbers could change. connell: you might be right. i just feel like they would need more than what they have now to jump ship. what do you think? >> well, actually, if i were the president, i would be hoping that democrats went for impeachment. if you look at what happened with bill clinton, his favorability rating went up 10% while republicans were negative 12%. this is especially true considering i agree with everyone who said there's no way it would get through, it would never, ever get through in the senate and it might not even get through in the house and it would just turn the president into looking like more of a sympathetic figure as it has in the past. if i were him, i would just say for lack of better words, come at me, bro.

>> you know, i will say this. it's going to annoy so many of our viewers. connell: that's unlike you. >> bill clinton was more popular than donald trump. connell: on a prersonal level, you mean. >> on a prersonal level. the economy is about half as good as it was when they were trying to -- connell: but it is good. >> it is, but half as good. i'm just saying, to say the economy and everything else -- >> i can see the hate mail now. >> we were in the middle of an internet boom, clinton was relatively personally popular, and you know, we have a decent economy now, don't get me wrong and i support a lot of the president's economics policies but it's not that. it's 3% growth, not 6%. connell: whoa, whoa. literally everybody at once. calm down. >> people don't like donald trump. most people don't. >> there's another difference as well. the foundation of the clinton impeachment was the president

trying to cover up an affair with an intern. the foundational factual basis here would be a lot different than that. connell: what would it be? what's the best argument? >> the obstruction stuff was substantive. connell: but the -- i understand the pushback is that there was no underlying crime. >> i have always said what kept -- >> there were underlying crimes. >> what kept clinton up at night was the investigation going on here and what was going on at the u.s. attorney's office. that's the wild card. if something comes out of that in the next i don't know how many months, and there's a movement towards impeachment, that's where that faction of republican senators who aren't that crazy about having donald trump to begin with, that's what he has to watch out for. >> an impeachment effort could really fire up some of the people who are in the base, some of the people who agree with the president when he calls it presidential harassment and they see this investigation as just a political, having a political aim. >> i think kat's right about

that. there are people out there who say the president's policies, you know, on the economy, they like. they may not like some of the personal stuff. they may not like the tweeting or whatever it is, whatever their objection is, but at the same time, they look at this and say you know what, what he did here is not worthy of impeachment and i'm not going to stand for this if they are quote unquote, out to get him. there might be a backlash. >> a poll came out recently that said a majority of americans don't like donald trump but they say they are better off under donald trump. a lot of people like the policies even though they might not necessarily like the man. >> listen, if the democrats obviously, if ocasio-cortez or ilhan omar, some of the crazy radicals run the show, particularly on impeachment, it will make donald trump -- connell: how do they run the show, charlie? >> depends on how they do this. one other thing i will tell you. his approval ratings given the economy should be better right now. no doubt about that. connell: i understand that. the argument from the campaign, the media coverage hasn't been, and even if that's true, that's not changing.

so getting his approval ratings where they need to be which is probably above 50 to win is still a challenge. >> that's where i think that point and your point actually come together which is pelosi doesn't want this thing to move too fast. connell: she doesn't want it to move at all, i think. >> i will say this. if it gets to the point where the judiciary in the house are actually voting on articles, it's going to get through the house. they will vote to impeach. connell: it would need her stamp of approval. >> she won't stop that. i don't think so. that's the conventional wisdom among people. she can't stop the train. >> i think the point, chad pergram was right about this earlier, it's not going that fast right now. i'm just telling you, there's not that much real leadership support. you only have 44 votes. that's not a lot. >> it will never get through the senate anyway. it's all political, truly. >> it is, but that's what impeachment is. impeachment is a purely political thing. listen, mueller just said it. he said here's my legal

analysis. now let the politics play. connell: got to run. thank you very much. after a quick break here, we will come back, talk about stocks well off the highs today. there was kind of short-lived optimism over the possible rate cuts from the clarida speech. we'll talk about it.

pier.

connell: couple quick things till we come up to the top of the hour. president trump is about to make remarks at the air force

academy. he is commencement speaker between the air force academy. they rotate between the president, vice president. join us on "after the bell" at 4:00 p.m. we have a lot going on including results from uber. time for maybing a little money. here is charles payne. charles: thanks, connell. good afternoon, everyone, i'm charles payne and this is "making money." investor are kicking the tires on stocks especially retailers in absence of a major headlines. this follow as rebound from yesterday's close from a massive drubbing could have been much worse if it wasn't for nancy pelosi. you heard me right. she saved us from total collapse twice yesterday. i will give you a hint one of the reasons why, it has to do with the i word. president trump calling mueller a never-trumper, proclaiming his