stuart: my favorite spot of the whole morning, president trump involving individual guardsmen, guys in the bearskin hats, red tunicks, conversation, breaking protocol. liz: we need a lip reader. stuart: i love it. neil, it is yours. neil: thank you very much. you've been hearing what is happening at corner of wall and broad with stocks. what is happening with interest rates. we backed up. we started a at two year lows for the 10-year. now we're at 2.13%. think of this a little more than a few weeks ago, that was sitting north of 2 1/2%. when something like that generally means is that it is going to be cheaper to borrow. it means you will get less bang for the buck if you save. if you're in debt your ship has come in. if you want safe interest maybe it just left. any interest rate sensitive issues that were taking it on the chin earlier today, banks,

very early when we were at those kind of lows have reversed and clawed their way back. that is the generally the tug-of-war. interest rates hit crescendo for buying of stocks. we're following that. we're following the president's three-day uk state visit. this of course as tensions are mounting. we're going to be speaking to the u.s. ambassador of germany, ric grenell. he is coming up. much more to do with that i want to thank connell mcshane filling in ably in my absence. to edward lawrence in london on latest on the president's trip. how is it going, edward? reporter: the pretty tests have not materialized like they thought. tomorrow will be the bulk of the protests. a lot of people clogging streets. people heading some signs. very small protests here. right now the president is at the u.s. ambassador's house here. he is getting ready for a state banquet tonight.

after they had tea, afternoon tea with prince charles and camilla. this morning the president has had a full day since arriving to london. he already met the queen. he toured or inspected the guards here. he also talked or looked over the royal collection with the cream. some of the most striking moments there outside of buckingham palace where the president is talking with the guard. this is the english played social that represented each of the u.s. air force, each of the forces for the u.s. military. the president and first lady toured westminster abbey. they laid a wreath at the grave of the unknown warrior. the president wanted to tell the united kingdom, president stands with them as they break away from the european union. u.s. negotiators are negotiating with a committee to come up with a grade agreement with the united kingdom. they leave with brexit. announce this agreement. tomorrow the british prime minister will speak with

president donald trump. they will talk about trade, they will talk about security. huawei is one specific issue. the foreign minister, the foreign secretary jeremy hunt says the british will listen. >> well, we will make our decision on the british national interests. we listened carefully to allies, especially the united states. we would never do anything that compromised our ability to share intelligence with them. we take all the facts into account. we'll make the right decision for the u.k. reporter: the united kingdom is finalizing an agreement to allow huawei to build part of terrify g rollout. the u.s. is concerned about that they warned the british about that. the white house threatened if huawei is part of infrastructure system, the u.s. may not share all the intelligence it has for fear of spying. neil? neil: edward, thank you very, very much. president trump is under pressure, but his approval remains higher than european

counterparts. we have "washington examiner" bureau chief. theresa may is outgoing prime minister. we, we look to low teen support for angela merkel in germany. mid 20s for, you know, macron in france, and on and on. like the world has turned upside down since when the president first visited europe two years ago. >> you're right, neil. president trump is going there and perhaps by american standards his popularity over here is not particularly high, hovering around in the 40s generally, but he goes to a place where the leadership in various countries is much lower than he enjoys over here. in the latest european elections the conservatives, which is the ruling party in britain only one 9% of the vote. strangely enough, the most trump party in britain which is the brexit party, led by nigel

farage got 32, 33%. that is the biggest party in britain according to the european poll results. irony of course is that president trump is not very popular in britain even though the party most like him, the nationalist and populist party is the one that won. neil: you know, i was curious to look at nigel farage and how his party fared, i know boris johnson is the odds on favorite to ascend to the prime ministership but could there be a phenomena like nigel farage emerging? >> politics has been so broken and the traditional parties are in such disarray that i wouldn't want to rule anything out. i think it is very unlikely that would be the case. one of the things that boris johnson is doing is emphasizing the message of the conservative party that they are the party that can actually deliver brexit. he launched his, you know, campaign for the leadership of the conservative party.

he is saying that he will take britain out in october whether or not there's a deal. this is extremely important thing. one of the things that theresa may did as prime minister which completely hobbled britain to say that britain would not leave unless it had a deal. which gave the europeans essentially a veto. it meant that britain would only leave with european permission. if you adopt a much tougher stance which is what donald trump has been advocating and what people like boris johnson will do say they you have hundreds of millions of dollars with trade surplus with britain, you want that to continue. you have got 30 or 40 billion yours rose of commitments by to pay. if you don't want a deal, fine. those things fall by the wayside or at least you will suffer. if britain take as tougher stance on its negotiations, i think it will get a better deal. that is what the boris sons john

and some hard-line brexiteers in the conservative party are promising. neil: thank you very much. as you know a last-minute salvo last week where the president was putting 5% terrorists on billions of dollars worth, largely agricultural items as it turns out in the u.s. they reach you a lot faster than these other tariffs that we have with china because it is sort of direct to grocery stores here. hillary vaughn on where those now stand. hillary. reporter: neil, both china and mexico are really changing their tune after the president promised to tick up tariffs on both of the u.s.'s trading partners n a rare shift in strategy, china's vice commerce minister saying that they are willing to change their attitude towards negotiations with the u.s. saying yesterday, quote, we're willing to adopt a cooperative approach to find a solution. the secretary also says

negotiations are a process and they came they never backtracked on anything. outgoing white house chief economist kevin hassett last hour telling fox business that the president staying tough on tariffs has turned in results. >> he is very much a trade reformer but he understands that since we're starting out from asymmetric positions, we have to get people to the table with strong actions. mexico's coming. reporter: neil, mexico is here today. this morning mexico's foreign minister for north america is in d.c. saying hiking tariffs would be bad for both economies. he says the white house is not calculating how many times products from u.s. into mexico cross over the border multiple times. >> the reality is because the economics are so fully enat eninintegrated, car parts eight times either way, four times in one direction, 5% the will come

. on itself. effect for prices on couple sears will be much greater than five mers. reporter: mexico's delegation is here, the president said simply being here to talk is not enough. he will not take action on tariffs until they take action on the border. neil. neil: hillary, thank you very much. to explain the impact all of this, 5% to start on these goods and 5% in addition each week we still don't have some sort of move or progress on the part of mexicans to improve what is happening at the border. this is one of those rare moments where it is a trade tit-for-tat has nothing to do with trade, everything to do with addressing other grievances. not the first time that happened. we had similar incidents with president nixon. one with franklin roosevelt many years ago. in recent times this is certainly unprecedented. we'll look at that it goes five, five, five, for each week up to 25% in october, if we go that far. some say we could.

we'll see. we'll get the read from two market watchers, what it will mean with this month. we ended up a lousy may so are we looking at a june swoon, what do you think? >> great, neil. june swoon is noise sound bite, real catchy but has no real application for building a prudent portfolio. neil: how about june zoom? is that more appropriate? >> that is very catchy too. reality is, nobody can predict short term movement. we know throughout history that the next 100% movement in the market is up but the next 20% of the movement upper or down no one can tell you anything like accuracy. so what an investor has to do ignore which is really tough to do, ignore the short term volatility and focus out on long term on their retirement. so own equities and diversify. as they keep going down, if they

do go down, buy more as they're cheap, you will benefit when they come back up. neil: if you look at it, this is a unique situation with mexico. we already have a trade deal with mexico and canadians and this will disrupt that. it will complicate for u.s. companies, that shifted some operations, i believe gopro was one of them, places like guadalajara. they have to rethink that, or maybe wonder what other grenade will drop. what do you think? >> yeah, absolutely. we're kind of scratching our heads on this. we know short term stocks will take it on the chin. they will feel a lot of pressure but we also, i have a lot of latino client and we're all scratching our heads trying to figure out what's the endgame as far as the trade war with mexico is concerned? because they're concerned, they have a lot of things going on there and, we just don't get it at this point. so we're wondering is there something else behind it or are we seeing the beginnings of a

trade war that will escalate and hurt us all? neil: maybe the president has no intention to the deliver the tariffs to the degree he says this would on this, mark. that makes me wonder if this is serving any other purpose or am i missing something? >> well i'm a big believer, i'm sorry, i'm a big believer in markets and yeah. the more free markets are better for consumers, the better for innovation and technology. tariffs don't really do much good for anybody but look, the reality companies are extremely fast adjusting their capital, their structure, their inventory. not only trade wars but real world wars. if you look even global world wars, the markets always have taken that into consideration and then prospered sometimes even during the war. so all the knowable, unpredictable information about the tariff is already priced into the price today. it will only be unknowable stuff

in the future that changes it. neil: looking at our own markets, they don't know whether to push forward or drop back. we see that with stocks. we see it in bonds today. got as low as 2.07% on 10-year note. we're around 2.12 now, regardless in and out of record low rates over the last two years so play this out. if it is a tug-of-war over the prospect for trade, whether it is with china, whether with mexico, how do you, as an investor deal with that? >> i want you to think. if you're, let's say we're at 2.13%, there is an opportunity for mom-and-pop investors to refinance right now. so there is a silver lining where they can go to refinance their homes. that's one silver lining to it. but there is a challenge on the yield part where, you know the 10-year yield seems to be the only game in town. i mean what are you going to do? are you going into russia bonds or third world country bonds?

a little bit of difficult for the near term. neil: i want to thank you both very, very much. we're on this half full glass view of the world, amazon is starting same day delivery service for a lot of its prime members, one day at the most. so if you're in a rush you just want to buy something before you're afraid that your portfolio will blow up, amazon is offering that. after this. i'm working to keep the fire going for another 150 years. ♪

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neil: no sooner we got wind that the justice department going after google, amazon was caught up in the fray, the fact that the government would be very busy policing these guys. deirdre bolton at new york stock exchange. reporter: neil, this is a whole attack or target on the back of big tech and we're seeing the shares trade lower as a result of it. i want to start with facebook. this is a developing story, we're just learning along with our colleagues at "the wall street journal," the ftc, the federal trade commission is looking into facebook, looking into whether or not it exercised monopolistic powers with some of its digital footprint. if you're looking at facebook's stock i'm looking down around 4%

today, down around 11 1/2% over the last 52 weeks. we've been speaking about this, neil, one professor at nyu, professor scott goll way, he is calling for two years for big tech to be broken up. he thought the call would come from europe. they have all of the downside, none of the upside. now we're beginning to hear rumblings on this side of the water through the ftc or the department of justice, it is affecting the way some of these companies trade. to your point about alphabet google, if you look at that stock, it is down around 5 1/2% today. that is the department of justice, according to our sources preparing an investigation to determine whether or not the company broke antitrust laws and it is sprawling online businesses. so similar theme, if you like between facebook and google or alphabet google. this idea of antitrust. amazon is a little bit of a different story. we can show you that stock moving lower as well. that is an ftc probe.

there was a consumer watchdog looking at 1000 products listed on allison's site, saying of those 1000 products, 46% list price of that group, more than half had high every list prices than what products were sold at 90 days prior. so essentially the claim that they are looking into it, the complaint they are looking into is that amazon is falsely advertising or falsify posting higher prices than necessary. of course amazon resulted, says this is false. we're completely in line with all kinds of regulations. that being said, all three separate probes are putting pressure on tech stocks. it is affecting the nasdaq. take a look, we've been in and out of bear market territory for the nasdaq. neil. neil: deirdre, thank you very much. fallout from charlie gasparino is hearing. >> no one should be surprised

about this if you watch fox business. i've been reporting from the beginning of the year that tech was coming under pressure. neil: from both parties. >> from both parties. i also reported that the doj was mounting sort of a preliminary investigation into this which did affect the stocks. about a month ago i ran into makan delrahim the guy running the antitrust department. i asked him point-blank, we're hearing that you're looking at big tech. listen what he had to say. are you monitoring size of tech? people talk about it is too big, that something you guys actively monitor? >> of course. and of course in any markets we look at, but it is not so much the size of them. we're not business of saying you should be a certain size or not, as long as you're not engaging in anti-competitive conduct that harms the marketplace. is that something we are looking but you know, we are not ignorant to the fact at that google, facebook, amazon, other

companies out there are big, have a huge impact on the american consumer's lives. >> we've been reporting consistently this is on their agenda. we should point out that the latest story in the journal didn't really advance it that far other than they may launch an investigation into google's anti-competitive stuff or behavior. i note that the stocks are falling from this stuff. neil: although they recovered. >> they recovered. remember one thing, you have to prove i think in these antitrust cases, you have to get a lawyer to really nail this down, they're engaging in behavior that is leading to higher prices. the conundrum for anybody. something that i've spoken with a lot of people in doj about this, all these services are essentially free in a way, right? google, facebook, you know, amazon, take them out of it, but, amazon is not raising

prices. so the behavior doesn't fit classically within the sherman and clayton acts which talk about monopolies and how they affect pricing for consumers. neil: maybe this is about more than that, political? >> it is then not an antitrust case. that is the problem. remember when you're betting against these -- neil: european actions, particularly google are on antitrust ground. >> yeah, yeah. neil: do we, that is the united states want to be in the boat with the europeans going after the same american concerns? >> i think, there is a political aspect here, obviously a legal aspect. the political aspect, populists in both parties, republicans, the trumpkins, republicans on the right that support trump and -- neil: they hate it when they're called trumpkins. >> trump people, trump supporters, elizabeth warren, the warrennites, what do they call them? go for it.

those are driving a lot of the agenda. they hate the power of big tech. still you know -- neil: be careful what you wish for though. >> what is the antitrust case? again, i will tell you this, follow fox business you would not be surprised. we've been reporting this consistently half a year. i tell you, makan delrahim, i ran into him at the milken conference -- neil: when he saw you, was he trying to go the other way? >> yes. i have this little hook. we have the perfect desk at milken. everybody literally comes by and we rope them in. neil: you would be my worst nightmare. great conference -- >> there is charlie gasparino. run -- you can't run the other way. there is walls and stuff. neil: all right. >> we set this up perfectly. neil: you have been known to walk through walls. >> to get a story. delrahim said it, that was in may. that is not just google by the way. all of them. neil: when news breaks, charlie fixes it. thank you, my friend. we have a lot more coming up. look at the president now in

europe. it wasn't two years ago when he first went over there, everyone was snickering at him. those people snickering at him, these people are rich to look at these hats and leaving that aside -- >> looks like trump hair. neil: that is not necessary. they're not snickering anymore. his poll ratings are higher than european leaders. we're on with ric grenell. >> i love ric. 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. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

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as you know by now the president is featured star right now in the united kingdom. trade tensions are going on. like some same leaders are realizing, wait a minute, the guy we were snickering at a little more than two years ago he first visited us coming as president of the united states is doing just fine. ambassador to germany ric grenell is with us. ambassador, good to have you

here. >> always great to be here, neil. neil: we have a second delay, i will interrupt my interruptions unless it is so outlandish i feel like i can capitalize it. having said that, where angela merkel and her party, losing key people left and right, all of sudden, depending on the region, high single digit teens if she is lucky, similar problems for outgoing theresa may in britain, emmanuel macron, has half the poll numbers the president does what happened? >> look. we have very exciting economy. the talk of europe right now how do i get a part of u.s. economy? i hear from business leaders all over germany, all over europe, who constantly say what can i do to be part of the economy and gee, i wish our economy was like

this. the fact our growth is 3.2%, there is talk of trying to get it higher if we try to get it higher like 4% where some people are talking about, we'll need to get europe also to increase. we need partners in europe to grow their economy, so our economy begins to expand just as much. but i think it is very clear that as you say, a lot of european leaders are looking what is happening in deregulation, corporate tax cuts. they're saying how do i get to be a part of what is going on in the u.s.? i consistently see, ceo's who say to me, i need to buy a company in the united states, help me? where should i go? it is an exciting time to be an ambassador here because of our u.s. economy. neil: well they might want to do business with us, but they don't like the way the president is conducting business and telling countries like the one you are right now, being told, with whom they should do business, like huawei comes to mind. how is that going down?

we are trying to make it clear, they spy on people, they spy on us, you shouldn't do business with them. we're not going going going to s with them. president held out possibility that huawei could feature into a huawei deal. how is that being received in germany? >> look i think it is twofold. one, i'm confident that the german business community, the german government, the german people, they all know the risks associated when you have a platform that has holes in it, or that has access to it from a government that clearly spies and clearly steals ip. what we have to be able to do is articulate to have a rules based system. i'm confident that the germans understand that. i hear over and over they

understand the risks. ultimately it will be okay. they certainly knows, the german government knows our warnings. we're clear we will not share intel at the same levels if there is a chinese level or a platform that we think is less secure. so we made that perfectly clear. i think our european allies want to help. the second part, neil, that is a challenge to european telecommunications companies. i've been talking to quite a few, hear inn lies the challenge. maybe we should look at 5g. maybe we should partner with u.s. companies to figure this out so there is a pure european-american solution and not look for a china solution. neil: ambassador, you know diplomat niceties the kind of stuff you do, whether you like a visiting leader coming to your country or not, i'm wondering your thoughts on battle back and forth between the mayor of london who thinks it is a

disgrace that the president is even in england right now, this sentiment not to let him speak before parliament as other presidents have in the past including ronald reagan, barack obama, i believe george bush. so how do you deal with that? and i always thought, you're president of the united states, you're president of the united states, whatever you think of that president, he represent the american people. so you're being rude to the american people, aren't you? >> well, let's look at something else here. it is 75th anniversary of d-day. neil: right. >> the fact that our troops really fought side by side. i think the larger issue here is, we are friends, we are allies. we can have disagreements. one of the things that i tell germans for instance, who are not paying their 2%, the uk is. we're grateful. the germans have a very large economy and are not paying the wales commitment of 2% towards

nato. when we're very tough trying to get them to meet the 2%, i tell them, look, we're not asking russia or china to build up their military. we're asking the germans, our partners, our friends, people that we like to serve side by side with. so i think that is the larger point here, especially as we are coming up on the 75th anniversary, to remember our history and how tied we are. the sacrifices that we made. i think that should answer all those questions. neil: i will just leave with you this one. everyone should pay their due, saying germans should build up the military conjures up images of the past, should we go slow on that advice, what do you think? >> well look, the germans had the largest military in the '90s. that is one of the answers that i say. i would also point to the fact that the french, british, polish have all said that we would like to see the germans, the largest economy in europe, pay their fair share. they're a member of nato.

the wales commitment pledge something you sign up for. you say what your capabilities are. these are natoabilitys that countries sign up for. the reality we want the germans have a shared defense capability. they agreed to do it and we're just going to hold them to it. i will add one more thing, this has been a long-standing policy and president trump, president obama, president bush, have all had the same policy but if you look at the facts since 2016, we've had $41 billion increased in nato commitments. that is $41 billion going to fight the bad guys. and so this is a huge victory for president trump, if you look at the commitments made up to 2020, there is $100 billion in commitments. think about that. $100 billion in increased defense spending because of president trump. i would say we've had the same policies but the way that

president trump is going about it, is working. neil: all right. ambassador, i knew you when. very good chatting. ric grenell our u.s. ambassador to germany. by the way we're getting more details on the items from mexico that are going to be affected by these tariffs. all i can say, if you've been eating healthy, this is going to hurt you. me, not so much. but tomatoes, strawberries, raspberries, pecans, watermelons, lettuce, a variety of other greens something, stuff that goes into something called salads. not being hit, prime rib, new york sirloin, sausages, any other variety. just saying. more after this. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

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follow jeff flock, who has a feel for farmers, what they are going through, he has never given up on the story. they have had their troubles compounded what is going on with mexico. jeff flock with more from the cme. here we go again. >> and with god, not just trump but god they're fighting too. we're in the ag pits. this is corn options over here. you look around, maybe there is hogs over there. we watch all of these pits along with chris robinson, author of the robinson review which a lot of traders, grain traders watch. hey, chris, walk with me around, people don't often get to see the ag pits. that is all agriculture. this is soybeans, here's the deal. headline now today, as bad as trade stuff has been, this weather situation, we've got pictures of flooded fields, this is kicking farmers harder than anything else. >> yeah, absolutely. in the last three weeks we had a very large rally. corn, wheat, beans rallied a

dollar a bushel. it has been weather-driven event. reporter: here is the deal, neil. they can't get a crop in the ground. corn. there is a deadline. if you don't get it planted, by the way this is soybean options. soybeans over here. which is worse, weather or tears rifts right now? >> right now, weather is trumping the tariffs. that's what you're looking at right now. in the next three weeks it will all be settled. reporter: here is my question. people criticize the president for the tariffs but, the tariffs tend to drive prices down. this weather thing is driving prices up because of the fear that there won't be enough supply? >> absolutely. especially in corn. this is the lowest planting progress we've had. longer we grow, we don't get the crop in, less production we have. the market is reflecting that. right now that is what is driving prices. tariffs are in the back seat. reporter: big, big crop report coming at 4:00 is that our time

or eastern time? >> four eastern. reporter: 4:00 eastern, neil, a big crop report. we're talking about corn, we're clear with our viewers, most of them are sophisticated. we're talking about the corn we eat, peel off the thing, have at the barbecues, we're talking the corn that is a commodity, just to be clear on that. sometimes people get confused about that. fyi. neil: thank you, my friend. always appreciate it, jeff flock in the middle of all the action. i'm sure there was action earlier. that is the epicenter what is happening in the agricultural pits, where they're in the pits. we have one week until the 5% tariff on mexican goods take effect. i think you know by now it will lift 5% virtually every week or two of that, by october first, 25% on tariffs, largely agricultural items which the mexicans account far more than half what we get.

that might start tell you, 80% of our strawberry crop, 80% of auto mate toes. chamber executive vice president kneel bradley says the tariffs are borne by you, not mexican government or otherwise. good to have you back. people forget that whether tariffs placed on china, placed in this taif on mexico, they're placed on consumers, in this case american consumers who will have to pay a lot more for these goods. >> that's exactly right, neil. thanks for having me back. i had a similar reaction over the weekend, looking at a salad, i was looking at all the iningredients come from mexico, charging me five or 25% more for my salad over the weekend will solve the southern border problem. that is one of the things we're really concerned about here. we have a real problem at the border, but raising taxes to be paid for by you, me, everyone listening to you today isn't going to do a thing to solve that problem.

neil: i could see the wisdom of using a tough trade stance with a country equally gouging us, you could make the case with china but this is a different beast here. not unprecedented one. using this power, other presidents pounced on to get what they wanted, roosevelt dealing with concessions from a number of countries all the way up to richard nixon. so it is not totally without precedent but it is a dangerous precedent, right? >> well, it's a precedent we haven't had for quite some time. tariffs and trade measures have been used literally for the past four decades only to address other tariff and trade-related problems here. so you know, one of the things we're looking at, the u.s. chamber of commerce the unprecedented nature of use of this legal authority the president is invoking. we're looking what our options are on behalf of businesses and consumers whether this is something that the president legally ought to be able to do.

neil: i'm wondering, it is like a chill developing between your members and the white house. it started off very strong. i'm wondering if this will fade, whether you're worried it could put the kibosh on that? >> it is not a chill, right? like with any president, there are things we agree with, things we don't agree with. we work hand-in-glove with the administration. neil: you guys didn't waste a nanosecond, i'm not saying that is totally justified, we used to not hear that kind of stuff? >> this is unprecedented in terms of the idea of 5%s or 25% across the board tariffs, right? this is one thing we ought to pay attention to in the sense, this is unlike the prior tariff actions over the past couple years. this is across the board. this hits everything from a to z, avocados to zinc. neil: you're right. neil bradley because i make a good point that doesn't give you the right to make a better point

closing out interview. good luck to you. neil bradley the chamber of commerce. in the middle of a battle here, they're receiving incoming fire from the white house. more after this. small business insurance? huh-uh. maybe that's a song. yeah, maybe. (peyton) did you know nationwide is america's #1 provider of pet insurance, farms, and ranches? now that's a song. yeah, maybe. oh, that's gold right there. did you know that nationwide has an interactive retirement planner? (music stops) are we there yet? ♪ (nationwide jingle) i'm workin♪ to make each day a little sweeter. to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪ to make each journey more elegant. ♪

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neil: i know happel has a lot of big events.

this kicked off any moment. expected to lay out the company's plans for the rest of the year but in so doing, giving the strongest hints, not hints, now stated policy, that itunes goes bye-bye. that has been around since what, early 2,000s. tech analyst ray wang is here. ray, what are we expect here? what happens to itunes? does it go away or morph into something else? >> hey, neil. i think the idea is gets broken into three parts, apple tv, apple music, the part people use to download and manage the music. part of the reason streaming services like spotify, others come into play there is a view that apple itunes, haven't really invested in the product as much as they had in the past. it has been falling away on the wayside in a lot of ways. neil: what is in its place? >> what's in its place? it will be the way you get movies and downloads coming through apple tv, apple tv plus.

way you get in terms of music the way apple music is set up, more important, how you sync the iphone. that software will be there, what i talk to some of the developers with apple. it is spread out into three pieces. neil: got it. now as far as a software upgrade, what are we to learn from that? >> the so the big thing ios 13 is coming out. ios 13 has couple cool features. other cool thing is coming out this thing called marzapan, which is project name, run apple apps and ios apps. mac and iphone, if you have both don't always work well. they are improving that. that is a big feature. the other piece around the ios 13 improves better messages, better health kits, other things they are using a lot of emphasis on the health kit we're told.

neil: how is apple preparing for latest phone? they already sent a signal, not ready for big 5g review? what are you hearing. >> they talk about between what the 5g strategy may be in 2020. there isn't much what is happening in the phone per se but there is a lot of work again going on in terms of making it easier for developers to oust ar kit. having augmented kit. also making a lot easier for developers to be able to build on apple tv plus services and other areas that are popping in. neil: ray, by the way, i apologize for mispronouncing your last name, it is wang, you can call v. cavuti. >> that's all right. neil: amazon, google stuff, pile-on, more in the case of google, antitrust folks will be

looking at that in the justice department, it might extend to amazon, might extend to other big players, what are you hearing? >> so there is a lot of interest going on because the tech giants have kind of faltered in the marketplace, people feel trust, privacy, security is not being taken care of. in google's case, the fact around search. they're the dominant search vendor. we're talking billions of dollars, $135 billion of search and ads, digital ads coming in the space. there is only one big competitor, facebook at the moment. amazon is creeping up in the space. people want to know are there practices in place, make it uncompetitive or practices make it easier for advertisers or creates a competitive market? on amazon case, it's a little different, it is the ftc, not the doj going after that. ftc are trying to figure out are there things amazon is doing to make it non-competitive. on u.s. versus china we need big

players because china has baidu, alibaba, tencent, we have googles, facebooks, microsofts, if we don't have that, we don't stay competitive. if you go the same route for europe, makes it hard for companies to get large. you don't get scale and efficiency, economies. it is up to the regulators to find a balance between those two. we have a good balance but hard to jump in. neil: ray wang, constellation research. out of mountain view. we have an update on president's trip to london. he is busy with his travis. there for the 75th anniversary of north man did i later on in france. i wanted more from my copd medicine...

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neil: all right. the president already has had a very busy day in london. he's going to pick it up with meeting the queen, the royal family, a parade of course will be the big focus, tomorrow the one-on-one with theresa may, of course. i guess her bags are packed already, all but out there. but the only question is who's going to succeed her. that's a separate issue. we do know of mass protests being planned. it was an issue i will raise with my next two guests, ashley webster and dow jones news wire chief, glenn hall. the issue was with these protests, protesters can do whatever they want. that's fine. but when you don't allow a president to speak at parliament

or you don't, you know, say it's a bad idea he's coming at all in the case of the london mayor, whatever their grievances are, i understand they are longstanding, he is the president. >> exactly right. it's called diplomacy, something britain was once well known for. neil: the one thing you criticize this guy lacks, you are exhibiting. >> that's right. i don't think it's showing any real global leadership when you behave in that way. neil: these are your people. >> used to be my people. i'm a proud american citizen now. i think it's pathetic. i don't think u.s. presidents being treated like this, they are fine, they can say whatever they want but it's very disrespectful. they are forgetting this is associated with the 75th anniversary of d-day. americans fought alongside and died alongside british troops trying to free europe from this horrible leader in germany, yet that goes out the window. it's very disrespectful.

neil: that's a very good point. we forget the backdrop of this entire trip. >> ultimately, not to be allowed to speak to parliament is an absolute disgrace. >> it's one thing to have public protests. interaction needs to remain at a lively. neil: you would think. stepping back from it all, theresa may is going to be gone. they don't know who, obviously a populist figure will take her place, whether it's boris johnson, nigel farage has been mentioned, maybe. but europe seems to be going the way of trump and populism. i don't want to make a general statement because the europeans are all over the map. but that is an interesting development. >> it is. europe has a lot of problems. i don't want to pick on your country of heritage, neil cavuto, let me preface it with that. [ speaking simultaneously ]

their finances are out of control. their gdp is off the charts. the eu doesn't know what to do with them. we have governmental implosion going on in germany. that's a mess. overall, the numbers for the eurozone as a whole are barely crawling on. they haven't been able to get any traction at all. don't forget what's going on between the u.s. and china does have a big impact on the confidence of europe because they are like we could be next. >> there is that economic challenge that creates the environment for populism to grow. when you are disaffected, unhappy, you have no certainty about your job or finances, then you start to look for other alternatives. i think we have seen that across the globe. neil: i just wonder, the pressure or the coverage in the press has always been britain will regret the day it decided to vote out of that club. it's been three years. i always said europe is more worried about britain doing that.

>> definitely. neil: i'm wondering if we are getting the skinny right. >> you are absolutely right. they do not want the uk to crash out, so to speak. they want to maintain some sort of deal going forward. neil: is there fear others will follow? >> correct. they are very nervous. you have a very antsy brussels group in there in italy and populists candidates are doing very well in the eu because what does brussels do other than tell you what to do, bunch of unelected bureaucrats who run the show and the disharmony and the feelings of anger are growing, no doubt. the uk getting out of the eu, there's nothing wrong with that. we have been told the sky's going to fall -- neil: what's the fear, you can't trade with any other european countries? >> you just have to rewrite all of the rules. that's the complicating part. when you have all of your companies trying to figure out how to deal with the flow of goods across those borders and the potential delays --

neil: but right now england on paper is the strongest economy in europe. >> ironically, even despite all the predictions during this time of uncertainty -- neil: what about leaving with no deal, what's the punishment? >> if boris johnson comes in, there's a good chance he will say october 31st, the latest deadline, we're out. we will be fine. neil: what does that mean for brits who want to go to italy, to visit france, is it that bad? >> it could mean lines, border control crossings and things like that. >> also, people keep forgetting england was only ever one foot in. they still have the palace. neil: that's right. >> they don't have -- neil: the italians, you would have to agree, the most beautiful -- >> every time i go there, the lira. >> you think we all speak with our hands? >> yes. neil: you're right. making his last appearance,

ashley webster. thank you guys very, very much. we are also following developments right now, the president's proposed tariffs on mexico set to begin about a week from now. they rachet up about 5% every week, every two weeks, until october when they go up to 25%. the hope is you don't even get there. the former u.s. ambassador to mexico and president bush 43, antonio garza with all of that. good to have you. >> likewise. good to be here. neil: are we going to get to that point? are you predicting that it gets that bad that these tariffs, even at 5%, kick in? >> well, i certainly hope not. at this time last week, we felt the usmca was in a pretty good path towards passage. here in mexico they had approved the labor reforms that were a necessary precedent to usmca and that also submitted the agreement to their senate, and

in canada it appeared to be going along a pretty good track as well. it was a bit of a shot out of the blue, if you will, to tie these tariffs to immigration. i think at this point, what we ought to be focusing on in the united states, canada and mexico is bringing this agreement to ground. we have a very competitive platform here in north america, and open trade wars or trade fronts with china, the eu, japan, and i think it's really time to bring this one to ground. the truth is, ultimately, any tariffs are going to be borne ultimately by consumers or the adverse impact that would have on the mexican economy. i think allowing them to do less in terms of immigration and creating some political pressures on the president here in mexico to reciprocate in terms of tariffs. i would like to see it brought to ground. i'm not as optimistic as others in thinking it can be done, you know, later this year. but certainly i think if we can

get past this week and there can be good communication and some constructive dialogue about addressing the immigration challenges that we know exist on our border, but are being basically driven by central america, we can get -- find some common ground on that, i'm hopeful we won't go too far down the road of these essentially punitive tariffs related to immigration. neil: well, we are using in the case now this enemy act of 1917 that has allowed a lot of presidents to do similar outside the normal trade punishments and justification. president roosevelt used it to declare a bank holiday in the midst of the depression. president nixon set tariffs on foreign imports over suspicious reasons. president reagan set sanctions against nicaragua. fortunately, it's been few and far between that we have seen this. i'm just worried whether this opens up a can of worms, maybe

for perfectly justifiable reasons and frustrations, what's happening at the border is borne by mexico in large part but this is fighting with a nuclear weapon, it seems to me. >> i think you are absolutely right. tariffs are blunt tools even in the context of trade negotiations, they are, you know, they are going to that option that you suggest. when talking about immigration, it just is a different set of circumstances. i think what's necessary in this context is diplomacy. we also have to recognize that the flows of people are not out of mexico to the united states. mexico has done i think an increasingly effective job in enforcement and deportation of central americans coming through mexico. you might have seen that the numbers month on month have increased every month in the

last three or four months, i think. i think there's 13,000, 14,000 this month and on track to be higher in june. so there's an effort there. ultimately, this is something that we can't outsource our border crisis. we have to work closely with our mexican neighbor and we have to look at what we are doing in central america to create an environment that is more stable so that people won't feel the need to leave central america. but i think this is a very blunt tool to be used in this context and ultimately, i don't think it's the right one. neil: all right. ambassador, thank you for taking the time. we appreciate it. in light of the latest shooting in virginia last week, people are saying we have to get a handle on this. there is an area of bipartisan support that essentially says if you have a pass, if you look dangerous, you shouldn't own a gun. in fact, many gun owners feel that way. so do those who want to limit

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neil: all right. we are in a trade war with mexico. that, you know.

you know in another few days, 5% tariffs are going to kick in on hundreds of billions of dollars worth of goods from that country, about $300 billion worth of goods so if you eat healthy, virtually everything that goes into your salad from tomatoes, if you like a little strawberry in there, raspberries, nuts and all, they are all impacted by this. but if you don't eat salad, let's say like the host talking to me right now, it's not an issue. i'm telling you, the judge is here. i want to get into what's going on here. this is a weird battle because we are going after mexicans for not doing enough at the border by using the lever of trade. it's not entirely without precedent, but it is a slippery area as other presidents have found out. just on the legality of that and how far the president can push this, judge joins me right now. our senior judicial analyst, liberty file host, andrew napolitano. how far can he go with this? >> well, the president's tariff

power is broad, but it -- meaning congress can't say well, the tariffs should be 10% and not 5% or 2.5%, not 5%. but it was given to him for the purpose of addressing trade imbalance. it was not given to him for the purpose of addressing other foreign policy, in this case, domestic policy reasons. he wants to stem the tide of people lawfully, lawfully knocking on the door at the border. the united states has signed treaties which require that when someone seeks asylum, you make a preliminary investigation at your border as to whether or not they are entitled to asylum. the president can't change that. neil: the president saying it's out of control. >> it may very well be out of control. he has other means to address that. he can bring more people down there or bring more judges down there but using the tariff power to address this issue i think is rife for judicial intervention. question, did the congress contemplate that the president

of the united states would use tariff power for a reason totally unrelated to a trade imbalance. answer, no. is that enough to stop it? it will depend on the attitude of the judge before whom it goes. it's certainly a case worth making. who would make the case? probably someone like ford motor or somebody who imports a tremendous amount of goods, in this case, parts for automobiles from mexico. huge farming interests. people who love avocados will find them suddenly out of reach. neil: i always do my homework because you can make someone look like a fool easily and nicely but president reagan sanctioned nicaragua with trade restrictions and all that, that had nothing to do with anything but that it was meddling in other country's affairs. >> it's one thing for the president to say your goods can't come into our country like they are doing with huawei

because you are going to materially affect our national security. it's another thing for him to say we're going to charge more money because we don't like your immigration policies. there's just a disconnect. neil: in other words, trade actions have to be in response to trade actions. >> correct. neil: okay. so when president nixon used 10% tariffs on foreign imports and targeted only those countries that were not cooperating or going our way at the united nations, he was overreaching but -- >> in my opinion. neil: he was never slapped down. >> correct. a, the courts are reluctant to regulate an area of behavior that's given exclusively to the president. neil: even if you oversteps that, again, maybe for perfectly valid reasons? >> you can make an argument this is a peaceful way for him to address the situation that is potentially violent, too many people trying to come over the

border. that's a pro-donald trump argument. neil: their argument was to that effect we tried everything else and these guys aren't listening. maybe they will listen to -- >> the pro-constitution argument would be congress raises taxes, a tariff is a sales tax, we all know that, and the president can't use it for a non-economic purpose. neil: even though we pay that tariff. >> of course. the avocados are going to cost more than i'm going to pay for it. not the mexicans. neil: that's why i'm not eating salad. >> is that the only reason? neil: all right, all right, all right. look at the time. andrew napolitano, we just throw this stuff at him, he handles it flawlessly. breaking news. you name it. he's the best. more after this. the dow down 21 points. in the middle of this, we had very, very low interest rates. the ten-year, that has been in and out of record lows at least over the past couple of years. at the very least, if you're worried about building your portfolio, you can refinance the

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neil: all right. before i get into what's happening with alphabet right now, and potentially amazon, i should pass along that chipotle is saying mexican tariffs could boost their costs by about $15 million. just getting stuff out of mexico, that will be looking at 5% up to 25% tariffs. skyworks exclusions, kansas southern, package food folks, pilgrim pride, crown holdings, auto and auto related component stocks are all down and being buffeted by these concerns that this is going to escalate. we will keep a very close eye on that. chipotle down 2.5% on these developments. meantime, alphabet and amazon, a separate concern of their own. it all concerns a crackdown by the united states government.

kristina partsinevelos has more. reporter: looks like the white house is cracking down on big tech but let's start first with facebook. the fact that facebook, there's a new report that the ftc, federal trade commission, is or has the ability to open an investigation into facebook, not over the privacy concerns that we talked about in the past but more so over whether facebook is stifling competition. right now on your screen, you see this huge drop in facebook's price. that just becomes within the last hour or so when the news broke that the ftc could look into this company and like you mentioned, you've got google and amazon in the mix as well. there are more reports over the weekend from the "wall street journal" and "the washington post" talking about the fact that the ftc and doj can start looking into these big technology companies, more specifically the department of justice has the opportunity to investigate google and if we are talking about google, more specifically on the search engine as well as its advertising model. if you are talking about how

much does google control of the market share, the search engine market share, according to net market share.com, it operates 75% of the market, which is why these regulators want to crack down. you look at the pace of how several of these big tech companies have been growing, and it's difficult to follow through and see are they acting in a monopolistic way, stifling competition. there you have alphabet stock right there and we are talking about the entire sector as a whole is being hit at the moment, weighing heavily on the nasdaq. you have facebook, amazon, netflix, even microsoft, all of them down but of course, big hitters like facebook as well as alphabet that are hit the most. these come as previous accusations amazon restricting third party sellers from selling items more cheaply. amazon has previously said it's not a monopoly in retailing. i reached out to them and they told me they were not going to comment on this. i'm still waiting for a response from google as well as facebook. i would like to preface as a

whole that this is just an opportunity to open an investigation. it could be nothing at the moment but it means right now that regulators are scrutinizing these big companies and it could be seen as a major warning sign and definitely something politicians will be interested in since both the right and the left have weighed in on how big technology has control over the market. back to you. neil: to your point, it's certainly weighing on the stocks. thank you very, very much. meanwhile, apple is kicking off a big event today, to sort of preview what they plan to do for the rest of the year. not exactly, but we do know itunes which has been around since 2001 is closing up shop. it's not going away technically. susan li on the latest announcements from the company. susan: it's been 18 years. we are expecting itunes to be split up into three, apple tv, podcasts and of course, apple music that you already have on your phone. now we have tim cook taking to the stage just about half an hour ago, talking about the apple watch, untethering it from

an actual iphone so you don't need an iphone to run your watch in the future. but tim cook of course started off as this worldwide developers conference in this pivot to services, particularly entertainment. take a listen. >> when you sit down to watch tv, you want to see the shows that you love. so we are introducing multi-user support for tv os. now everyone in the home gets their own up next list plus personalized recommendations for new shows and movies to enjoy. susan: multi-user support. that's kind of in the vein of netflix where you get more than one person being able to use the account and of course, the worldwide developers conference pretty much going to echo what apple has said over the past two years that they are shifting more to a services business instead of just selling iphones. we know that iphone sales are slowing and they want to grow

their services and that includes entertainment as well. right now they generate about $38 billion from last year from services. they want to double that in 2022, just around $50 billion. so not only are we going to see the end of itunes split up into three, you also have, as you heard, some new features for the apple watch as well and this is interesting, i don't know if you find it interesting, i do, because anyone that's an apple aficionado loves streamlining, loves the look and feel of the product but they are going to offer dark mode on your iphone and ipad which basically causes less eyestrain and you can use the devices longer. neil: i think that is an excellent idea. that is long overdue. susan li, thank you very, very much. all right. battle over socialism within the democratic party, it was front and center this past weekend. after this. >> if we want to beat donald trump, socialism is not the answer.

i was re-elected --

neil: now the funerals after the virginia beach shooting that claimed 13 lives including the shooter. a republican lawmaker in pennsylvania making a bipartisan push for a new type of gun control law, just trying to make sure that people who are deemed dangerous can't get their hands on one in the first place. seems to make common sense and an overwhelming majority of democrats and republicans seem to agree with the approach. in fact, more than a dozen states have enacted such sort of urgent legislation to try to make sure that guns are not in the hands of people who could be a threat to themselves, these so-called red flag laws. pennsylvania state representative todd stephens hin behind that joins me on the phone. thank you for joining us. what kind of support are you getting for this? >> well, it's a mix.

look, there's tremendous support, it breaks down more regionally. southeastern pennsylvania, there's pretty strong support for this. as we moved further away from southeastern pennsylvania toward western person nnsylvania, ther more skepticism. i have more work to do. but a growing coalition of folks think this is the right approach. neil: explain how the red flag law would work or a version of it, i guess, that if you are deemed to be a threat, you shouldn't be able to get a gun. i'm being very simplistic here. could you explain how it works? how someone is deemed to be a threat? >> absolutely. law enforcement or a loved one could go to a judge and ask for a hearing. a full due process hearing. and at the hearing, a judge could make the determination to temporarily suspend someone's firearms rights for up to a year, no longer than that, and at the conclusion of that time period, whatever time period that judge determines, those

firearm rights would be restored and the individual would have their firearms returned to them and could go ahead and purchase new firearms and everything else like that thereafter. neil: now, the issue would obviously depend on you are a big state and you represent, you know, an area of the state that's one thing. there are hunters and those who aren't big on hunting in this vast state that is pennsylvania. but one thing i have noticed is that even the number of gun advocates have said they don't want their reputation or the urgency of having a gun or the importance of having a gun compromised by someone who would do harm to people with that gun. so how is this battle for their support going to go? >> well, i think look, one of the people who suggested this to me was a life member of the nra. you know, amongst a lot of gun

owners, they are tired of seeing the carnage and they don't want folks who are in crisis or out to harm other people having guns either. so this is just one tool in the toolbox. a mechanism to get in front of a judge for a full hearing. one thing i have heard is how much due process is built in here and how are we going to make sure that we are protecting people's constitutional rights. so this bill has a tremendous amount of due process. the aclu has touted the due process protections that are included within the bill. as a result, i think more and more people as they learn and understand all the protections for gun owners, that are in the bill, are coming on board. neil: now, some fear about this, it could be a couple splitting up and one spouse will say he or she, is crazy, shouldn't give them a gun, and all of a sudden it gets abused. are there provisions built into

this to avoid that sort of thing? in other words, could someone point a finger at someone and say all right, until further notice, make it very difficult for this person to get their hands on a gun, because that could lead to rampant abuse, right? >> there's no question. that's an issue that's been raised. couple of things. the due process in the bill allows for a full hearing. that includes cross examining witnesses, presenting your own evidence, presenting your own witnesses. my bill even provides you with an attorney, if you can't afford one. but most importantly, to address those concerns that you just raised, are two provisions i added to the bill at the request of gun advocacy groups. one is, it's a crime for someone to seek one of these orders and lie in order to obtain one. so it's a crime to lie in order to obtain one of these protection orders but also, there is civil liability if you seek one of these in bad faith. i heard some concerns that even if it were a crime, if the

police or law enforcement didn't bring the charges, you would have no remedy there. lsht all right, fine, we will add a civil liability provision so you can go ahead and bring your own lawsuit if need be, if someone seeks one of these against you in bad faith. we have built in a number of protections to ensure that we would deter anyone from abusing this process or using this process improperly. neil: it's one of those rare issues in which a surprising number of republicans and democrats agree. we will be following this very closely. thank you for taking the time. >> thanks for your interest. i appreciate it. neil: all right. more after this, including the latest on what the mexicans are doing. remember, they have to send a trade team to the u.s. within hours after the president's proposed crackdown and proposed tariffs on mexican goods. what came of that? after this. eated a brand new way for you to sell your car. whether it's a year old or a few years old, we want to buy your car.

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let me be clear. if we want to beat donald trump and achieve big progressive goals, socialism is not the answer. i was re-elect ed -- medicare fr all may sound good but it's actually not good policy, nor is it good politics. i'm telling you. [ audience members booing ]

neil: well, that is one way to stand out against the rest of your party. just have a more moderate position when it comes to medicare for all. not a good idea, you hear one candidate say. when it comes to just big government, maybe not advisable when it comes to fears it could lead to socialism. former obama economic council chair austan goolsbee on this. we talk about the democratic party, where the heart and passions lie. with those respective crowds, i think one in chicago, one in california, it rides with the passionate base that doesn't like more moderated positions. what do you think? >> i don't know. you know i'm an economics professor, not a socialist, not admired at all by the bernie folks. the bernie folks were in high representation there at that

convention so, you know, if any candidate got up and said socialism's not the answer, you would imagine those folks are going to boo him. neil: i think you're right. >> it seemed like here's a very minor candidate in the last poll i saw, hickenlooper was literally at 0% so -- neil: delaney is not doing much better. but i want to get back -- >> he was trying to troll the audience. neil: maybe so. i'm wondering if those are not crazy positions to raise concerns about the cost of medicare for all or socialism -- >> take the medicare for all. if you did it the bernie sanders way, it's very expensive. there are other ways to do it that the congressional budget office says actually save money compared to where they are now, if you offer a public option, for example. hickenlooper was saying something far more inflammatory.

he seemed to be saying when he gave this speech, we can't afford to cover everybody so we should forget it. i don't think america agrees with that. when put as the less costly, more reasonable version of medicare for all has about 75% support of the american people, including the majority of republicans. so i think this one, it was a fun sound bite but i don't know that that necessarily represents the whole party. neil: well, clearly not. i would agree with that. while we are speaking here, we are getting some flashes from st. louis fed president who i guess is talking in chicago, not far from you, he's saying a downward policy rate adjustment may be warranted soon. tariff pricing and trade is likely to chill global investment, slow global growth and that would be presumably the catalyst for cutting rates now. what do you think of that?

>> you know, i wouldn't be surprised if donald trump carries out the incredibly ill-founded and bad idea of launching four or five separate trade wars simultaneously. the economy will start doing worse. it will start pushing us to the brink of recession and if we start getting close to recession, i wouldn't be surprised to see the fed start cutting rates. now, i don't actually think that president trump is going to do that. i think this is, i hope, one of these bluster things where he makes a lot of threats but at the end of the day doesn't actually carry them out. neil: we will watch closely. austan, thank you very much. austan goolsbee. i want to pursue the same issue with congressman from texas. congressman, what do you make of

that? this sentiment is building within the fed that the next move may be a cut in rates because of the prospect of a trade war that could slow the global economy down. does that worry you? >> clearly, the economy, anyone who has been in office for more than just a few years, the economy is always top of mind. it's doing very well right now. i do see it's not just the issue of trade but there are other areas where the economy is under attack from the other side. it concerns me clearly from the democrats' perspective, if they can hurt the economy, they can make a better case for running against the incumbent president so there's that out there as well. on the other hand, then you've got donald trump saying i'm going to put americans first, i'm going to put this country first and i'm going to use the tools that are available to me and so one of those tools is the emergency declaration to build a barrier on the southern border. i was down in mcallen, texas the

other week. it is critically needed. neil: would you use this as a lever, as a weapon to get your way on that? believe me, i understand the president's frustration, likely yours as well, that that border situation seems to be even more chaotic but it's using trade as a lever to get what you want, is that the way to go? >> well, i think it's one of the tools that he has in his toolbox and he has -- neil: shouldn't the toolbox be for the appropriate tools necessary? >> the problem is that the other side won't come to the table. i mean, this is not a new phenomenon. this is not a new problem. i don't know how many times i went down to the southern border during president obama's term in office and the same things were going on. it's a lot worse last week than i have ever seen it. our customs and border patrol are on the point of being overwhelmed. the coyotes, the traffickers are using their -- using our laws against us, and they are using

it to literally throw people at the southern border because they know our ability to deal with that is marginal. now, the president has said you know what, that's going to stop. if mexico can and should be helping us, then it should. i can't argue with that. what i saw last week is truly frightening. i can't even articulate how bad it is at that central processing facility in mcallen, texas. again, worse than i have ever seen it. our customs and border patrol are at the point of literally being burned out because of having to deal with this constant onslaught of people coming in, men, women and children coming in every single day. they pick up 300, they've got space for 15 in the hhs facilities. it's just not working. so the president is saying i know how to make this stop. and he has exercised that. i think that is credit to him for taking a bold move and

didn't he tell us during the campaign mexico's going to pay for it? okay. maybe this is -- neil: maybe that's the way, to your point. be careful what we wish for. congressman, thank you very, very much. good having you on. we are just getting word the u.s. justice department is considering now an apple probe, on top of already going after google, alphabet, again, looking at antitrust and related concerns and a broader review of the technology companies. here we go. the stock has doubled its losses. it was down just about under a buck before, now down about $2.09 a share. more after this. 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.

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neil: all right. now something is up. we are showing i a ten-year note at 2.10%. it had been a lower lower this morning, around 2.07% but now add the fuel to the lower interest rate fire. st. louis fed president, speaking of chicago, saying that trade is likely to chill global investment, slow global growth, quoting here, a downward policy rate adjustment may be warranted soon. now, whether that is a typical view of the voting members of the federal open market committee, that can cut a variety of ways here. it can be an indication there's a slowdown going on and the fed is worried about it, but it could be a big opportunity for those who want to buy a home or refinance the one they're already in. the national association of home builders ceo jerry howard on

these developments. jerry, lower rates are one thing but an environment that is a slowdown, warranting those rates, well, that's another thing. how do you feel about all this? >> well, you're right, neil. trade is a big issue for us. the current tariffs on china, for example, add about $1200 to the cost of a house. neil: is that right? >> yes, sir. neil: what's adding to it? >> well, of the items that are covered by those tariffs, no fewer than 500 of them are used in the daily construction of a home. so it's anything from nails to brackets to shelving materials. it covers the whole gamut. but $1200 to the cost of a house from that, then if you're going to add tariffs on mexican goods, we get a lot of our brick, a lot of our concrete, from mexico so that could add to it, too. the only thing that's keeping us going has been the easement on interest rates. with what you're talking about now, you are looking at

mortgages potentially under 4%. neil: indeed. right now they are, 2.99%. that could or couldn't hold depending on the second. does that offset some of this other stuff? i have always viewed interest rates as a giver and a taker. they get low enough, they certainly slow the selloff in the stock market because they provide a floor to that normally, not all the time. but for housing, too, it could provide an opportunity where people hear my gosh, i've got a mortgage under 4%, i'm going to leap now. what do you think? >> oh, i think it definitely has helped. we started to see a softening in the marketplace back last fall and early in the winter when the fed was being more aggressive with interest rates, as they have eased up we have seen the markets stabilize and it's pretty positive right now. neil: i noticed you and i chatted about before. i see a lot of for sale signs not coming down.

these are going through all sorts of neighbors, upper, middle, what have you, they're sticking around a while. so, what's going on? >> well, right now you have got a problem there is basically a housing supply shortage, particularly the first-time homebuyer level and if people can't get into their first home, there is not going to be as much of a movement for the move-up market. it is a trickle up theory in this instance. there are a lot of houses on the market right now, but believe it or not, overall, we have a supply shortage. neil: that is interesting on super, super high-end in manhattan where i am, penthouses are begging, taking down of 100 million-dollar price, not across the board but it hasn't in recent memory. i have to harken back to the melt down to see pristine penthouses just sitting on the market. it could be an anomaly but what

generally does that mean? >> well, if prices are coming down, clearly it means that the listing was too high to begin with. neil: right. >> right now we're not seeing a a devaluation in home, in homes right now at all nationwide. we're seeing pretty much stabilization. we're actually seeing good, solid increases in home values. neil: all right. we'll watch it closely. jerry howard, the national association of homebuilders. interesting read from jerry as you just heard. thank you, sir. these rates giveth and taketh. they're based on slowdown or trade war concerns lifting the price of a home, you hope lower rates offset that, which at 3.99, you would think maybe for a fixed mortgage, that is not a bad idea. i assume that is a 30-year fixed mortgage. we'll follow this a lot more, 4:00 p.m. eastern time on "your world." charles payne, i want to thank you very much for your hard work in my absence that is an

interesting very meant, charles, if that holds. market giveth and taketh away, rates go down, stuff you want to buy has gotten cheaper, that could be a way out of market crisis. charles: neil, it could. we were reminded, the biggest achilles' heel, has been real estate and residential investments down the tubes all year long. i need the spark. neil: i'm glad your 100 million-dollar penthouse is sitting on market. >> everybody needs to find a way to have a getaway. neil: i hear you. charles: thanks a lot, neil. i'm charles payne, this is "making money." most indices are guy rating. we're in a tight trading range. there is positive news on the trade front. china and mexico show willingness to come to the table to avoid future tariffs. we'll get reaction from famed economist