liz: neil hennessey. hennessey funds. [closing bell rings ] liz: thank you very much. s&p, we're just one point higher from the flat line. very thin volume, running 25% below the one-month average. melissa: ultimate insider access. we're about to give you a rare look inside of huawei's head quarters in china. the company's founder says the u.s. ban will cost the tech giant $30 billion in revenue over the next two years. the dow losing steam in final moments of trading, closing fairly positive, 21 points. nasdaq and s&p 500, closing in positive territory for last three days. i'm melissa francis in new york. this is "after the bell." connell: i'm connell mcshane reporting live from shenzhen in china. huawei, no doubt about it, wants to tell its side of the story and we were granted a chance to visit the company's headquarters

which is just outside of shenzhen. we had a sit-down interview with a key executive. >> i would say that there is a huge misunderstanding about the type of company that huawei is. huawei is privately-owned company. there is no real connection to the state in china. we are part of that thriving private business. that is probably the fundamentally the biggest misunderstanding. connell: there is no connection between huawei and the chinese government, no direct connection. >> there is no direct connection. there is no ownership. connell: take it straight to today's panel, joined by adam lashinsky, "fortune" executive editor. fox business contributor. steve moore with us, economist at heritage, senior mick advisor to the trump campaign. good to see you from main mainland china this evening or early tuesday morning. adam, start with the huawei question. it was interesting for lack of a

better word to get this tour of the company's facilities today, but we certainly heard from the founder that huawei is hurting, right? we know that it is hurting. the question, i guess from a practical standpoint, can huawei survive this in your view? you know a lot about technology companies, this being a crackdown by the u.s. government is it. >> huawei can survive. the question is how bad it will be depending how strictly the u.s. enforces some of the sanctions that it already is enforcing. is huawei without certain component will be crippled but eventually they can get those component and they can sell them in china which is a very large market. but that is very different from what their plans had been only a few months ago. connell: they're certainly scaling back. it was obvious from founder had to say today that they are scaling back. i guess the question from the american perspective, whether or

not americans should be rooting for huawei's demise or survival? a lot of american companies, chip-makers, have a lot on the line here. is there rooting interest? >> i don't believe one minute from the ceo told you from huawei they're not being attached to the government. i mean i think they're attached at the hip. i think that more and more these chinese companies are acting in concert with the government and in ways that are hurting the american economy and hurting american security. so i think that this idea that they are somehow wholly separate from the government decisions in beijing i think is completely wrong. do i want that company to fail? no. but i do think that this puts more pressure on beijing to start making some of the concessions need to be made in the end will benefit both countries when we get a trade deal done. melissa: you know it, steve, i

want to pick up on that question right there, when we were talking about who owns huawei. adam, let me ask you, i'm looking at some of the other reports about who actually owns the company. they say they have never sold a share of the company. that it is owned solely by its employees which sounds a little communist in its the way they sort of explain that. they also have a law that requires technology companies to help assist with the country's intelligence gathering. that says a lot, right? >> now, melissa, you're getting to the heart of the matter. there is more nuance to than the way steve was describing it. what huawei says about its employees owning every share of the company, very well may be true but it is beside the point, right. >> exactly. >> the point is what you were getting at at the end what chinese companies are required to do by chinese law. that is the heart of the dispute

that we're having, what we need to work out if we're going to move forward. melissa: yeah. steve, what strikes me, i heard art laffer talking this morning about the tremendous distance china has come in opening things up and in terms of, just the economic advances and advances to the people. do you think that the lens through which we're looking at it today we're either being too judgmental, we kind of compare it to totally open economy, open system or maybe, have we been blinded by advances they made? you know what i'm saying? >> melissa are you asking me to contradict arthur laffer? melissa: no. >> arthur is my mentor. i love the guy. we're having a big party for him on wednesday when he wins the medal of freedom. melissa: yeah. >> look, i disagree with arthur just a little. there is no question from the late 1970s through, you know, up to five or six years ago what happen to china, one of the

great economic miracles of all time as they moved away from communism to more free enterprise, free market system. what worries me, where i differ a little bit in laffer, the last six or seven years they moved back in the wrong direction. day after day with respect to our security, building up the military or cybersecurity issues or the hacking into our computer systems or i would argue they have moved more towards central planning and state ownership. i agree entirely what you all were just saying. it is not a question who owns the company. it is who is directing its operations and that relationship between government and the company. melissa: all right. we'll leave it there, guys. both of you good stuff. connell's full interview with andrew williamson will air later this hour. you don't want to miss that i'm on the edge of my seat. that's for sure. connell. connell: interesting, melissa, we get into some issues about the government's role and application of intelligence laws in that interview.

that is later in the hour. meantime major retailers in the u.s. testifying to the u.s. trade rep today on the impact of potential tariff increases. let's get to hillary vaughn, live at the international trade commission with the latest on that story. hillary. reporter: hey, connell, we talked to several retailers from apparel to shoe manufacturers who tell us they have already put in their shipment for back to school and holiday season of the kenneth cole ceo told me their orders are already on the boat headed from china here to the u.s. if there is surprise tariff when they arrive they will be forced to eat that cost because they have already negotiated prices with stores and distributors. >> no one is writing us a check for these tariffs. china is not writing as you check for these tariffs. we will absorb the tariffs or deal with the tariffs. basically i see it as a tax on american consumers. reporter: we also talked with

the toy association who represents companies like hasbro and mattel. they say tariffs would be devastating to their industry continue to struggle since toys "r" us closed last year. we talked with the american apparel and footwear association that represents big brand retailers from bloomingdale's, to macy's, they say the tariffs could wipe out small companies, mid-priced companies if they don't pass on the price to consumers because they are not big enough to absorb it. >> parents can certainly expect to see more expensive toys this holiday shopping season. >> it is an extinction event. makes sure companies will not be in business or passing prices along. reporter: we did talk to some people here today who actually are supportive of the tariffs, manufacturers looking to bring business back here to the u.s., for clothing to be made here in the u.s. they tell us they believe these tariffs would help level the playing field to be more competitive with china. >> i've been in the textile

business 40 years. i've seen china go into the wto. i've seen their blatant, illegal practices. i'm here today to support the administration's 301 tariffs against chinese textile imports because it starts a somewhat level playing field. it hopefully shift some manufacturing back into the western hemisphere. reporter: the companies we talked to talked about moving operations to vietnam. none of them said they would move operations back to the u.s. connell. connell: we heard some of that here. good reporting. hillary vaughn live in d.c. melissa. melissa: boeing executives saying sorry today. let's go to jackie deangelis on the floor of the new york stock exchange. go ahead, jackie. there was a lot there. reporter: good afternoon, melissa. a lot of news coming out of the paris airshow. boeing's dennis muilenburg said

he criticized the company for inconsistent communication not only with regulators but also with the customers. he said that was unacceptable. meantime the faa could be begin to file a new boeing 737 software to correct the problem in as early as a week. the boeing commercial airlines ceo, he said this bit all. >> we are very sorry. the loss of lives as a result of the tragic accidents of both ethiopia 302 and lion air 610. our thoughts and prayers are with loved ones who lost their lives. reporter: emotional sentiment. a new call by "wall street journal" and nbc news, 25% of u.s. flyers would think twice before they get on a 737 melissa. back to you. melissa: i would too, jackie,

thank you. congresswoman alexandria ocasio-cortez slamming ceo jeff bezos for paying his workers quote, starvation wages. now the e-commerce giant is fighting back with a war of words could mean for efforts to crack down on big tech. we'll talk to dan henninger of "the wall street journal." that is coming up. weighing action against iran. why secretary of state mike pompeo says the u.s. is considering a full range of options against the country. we're live in china as well. connell? connell: we have much more coming up here, melissa, as we continue here, live from shenzhen in china. years ago it was a small fishing village but now it is dubbed the silicon valley of china, home to some of the country's largest technology companies really at the center of this trade war with the united states. so as we continue, much more from huawei and much more on the dispute that the people of china fear could have long-term effects. more live from china, coming up

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♪ connell: back here live in shenzhen. we're focused certainly on huawei. we'll have more of the interview later in the hour. we thought it useful to understand the city a little bit. they call it the silicon valley of china. this tech hub is finding itself right in the middle of the trade war. this sprawl city of 12 1/2 million people was a tiny fishing village 40 years ago. now it is home to some of china's largest technology companies. tencent, zte, and huawei are all headquartered here. it is known as the silicon valley in china. perhaps as more than any city in the world, shenzhen is at the center of the trade war with the united states. >> not only trade war but technology wars. it profoundly affects our generation. connell: how profound the impact will be seems to depend more than anything what happens to huawei. the united states government has been cracking down on the tech

giant, blacklisting a company it seize as a national security risk. here in shenzhen huawei is the city's largest employer, which is top of mind when we spoke with the vice mayor. how has the trade war impacted shenzhen and are you concerned at all about the future. >> shenzhen is a major exporting city in china 2018. our international trade volume stood at actually over 430 billion u.s. dollars. therefore shenzhen will inevitably phase negative impacts brought about by trade frictions. among the 250 billion u.s. dollars worth of goods, that is the u.s. is going to slap tariff, extra tariffs on about 20 billion u.s. dollars of worth of goods that are from shenzhen. however these impacts are generally under control from

january to may, we saw an increase in the international trade volume of shenzhen, especially the export of shenzhen rose by 4.8%, a growth rate 1.5% higher than from january to april. connell: one of the keys it seems to me about the future for this city is what will happen to huawei since it has been targeted by the united states government. the most recent statistics that i saw from 2016 said that huawei itself accounted for 7% of the shenzhen's gdp. so the question becomes, what happens to shenzhen as a city if huawei doesn't survive? >> huawei is an important business in shenzhen. as the governments of shenzhen which is home to the headquarters of huawei, we pay much attention to the issues surrounding huawei. the current problems have caused

certain degree of impacts to huawei but we believe that the company will overcome these impacts. we strongly oppose the extreme political crackdown on huawei by the u.s. government without any concrete evidence. connell: our special coverage will continue from here in shenzhen on "after the bell." so don't go away. much more is coming. we're taking you behind the corporate headquarters, behind the scenes at headquarters of huawei. one of the executives shared his side of the ongoing trade war from there, the dispute with the united states. there is lot more of that coming up later in the hour. melissa. melissa: looking forward to that. setting the stage for 2020. the president trump trailing democratic competition in a new matchup poll. why critics say trade tensions could hurt the president in the white house race. dan henninger from "the wall street journal." he is up next. ♪

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melissa: a warning sign for 2020 perhaps? president trump trailing five democratic candidates in head-to-head matchups. this is according to the latest "fox news poll." the president is preparing to kick off his re-election campaign tomorrow in orlando. here now is dan henninger from "the wall street journal" he is also a fox news contributor. so what do you make of this poll? i mean it would, one thing to be trailing joe biden. it is another thing when they have him trailing somebody like kamala harris who doesn't seem to have a lot of support out there in general versus the other democrats? >> well, it is early days but i think one thing to keep in mind about polls like this is, it is a sort of a snapshot of the general electorate from left to right and we know that democrats are massively opposed to donald trump. there are a lot of them in a poll like this. republicans tend to support him. so those numbers i think are being determined by a couple of

groups. independents in the center and mainly by women, melissa. in other polls trump is trailing joe biden by 20 point among women voters. they're the ones who in midterm elections put a lot of democrats, allowed a lot of democrat to defeat incumbent republicans. so i think trump has a lot of work to do with women if he is going to start moving those numbers, especially against joe biden. the question is, he will have this big rally tomorrow night in orlando. no question about it. i think the trump base is absolutely rock solid behind him. but he has to move the numbers up marginally higher than that among other groups. the main group appears to be women. melissa: what could he realistically do on that front you see him doing? one thing to say what another politician to fix this, among things he normally does, one thing he could bring out of the box this could influence more

women? >> one issue in the fox poll, fascinating results, that is immigration. there is about 70% support for dreamers, people, kids who were brought here, not on their own and about 70% support for the border agents. in other words, the american public agrees with trump on the border but they also want something done for the dreamers. that would seem to be the basis for a compromise on that issue. i think if he did something for these people, like the dreamers, a little bit more pro-immigrant than the white house hard-liners are allowing him to do, then he would gain with groups like the women who cannot warm up to him. >> made that offer before. that is something he would get behind, in spite of the fact are pushing him in the other direction. that is good advice. i hope he is looking. alexandria ocasio-cortez taking on jeff bezos and amazon. listen to this. >> if his being a billionaire is predicated paying people starvation wages, stripping them

of their ability to access health care -- >> you think that is why he is a billionaire that he pays his workers starvation wages? >> i think that is a part of the equation. >> irony listening to that, wait a second, didn't amazon raise their wages to $15 an hour at minimum. now she is calling the fight for 15, one of her big things that is starvation wages? what do you make of this? >> hardly. this is the congresswoman from queens who managed to defeat amazon's willingness to bring more than 20,000 jobs into her district. you know what is fascinating to me about her, melissa, she defeated joe crowley, a long-time serving democrat there, but kind of lost touch with his constituents, went national. she seems to gone national from day one. what is alexandria ocasio-cortez doing for the constituents of queens and bronx? her base is mainly white hipster voters, professionals, not

immigrants, not minorities living in her district. you have got to wonder eventually at some point along the way, primary challenges will emerge to challenge her because she seems to have no interest whatsoever in the people of her own district. totally national politician. melissa: i know but the bad news behind that is, then she could run for senate. she has built herself such a, national following, then also like this cult following, that it seems like even though a lot of people do say she couldn't win her district again, maybe she jumps to something bigger. because she has a really good way of manipulating the message, getting all the buzz going. she hasn't died down any in all this time, what do you think? >> she hasn't died down at all. the problem she has to start making more sense than she has been lately. the idea that amazon is serving starvation, paying starvation wages to employees is such bunk. there has to be a limit at some

point she can get away with. melissa: we'll see. we'll see. dan henninger, brilliant as always. thanks. hong kong uprising. millions of people in the streets to fight extradition law, allowing residents to be sent for main -- to main mainland china for trial despite efforts to suspend the bill. what they told us about the protests just across the border. connell. connell: we'll continue with two sides of the trade dispute. huawei as we have been reporting today from china, it wants to tell its side of the story. we'll take you inside of the huawei headquarter where we spoke to a key executive about security threats, spy allegations, the relationship his company has with the chinese government. more from china coming up next. >> i don't know but -- i always use huawei phones.

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melissa: breaking news right now, police responding to a reported shooting in toronto at the raptors championship parade. officials say two victims have serious but not life-threatening injuries and two people are now in custody. those are early reports. fans were told to stay calm and politicians, including prime minister justin trudeau all stayed in place on stage. we'll continue to monitor the situation and bring you any

breaking headlines as we get them. connell? connell: wow what a story out of toronto. back here in china we're taking you today inside of huawei. in fact i did sit down with andrew williamson, huawei vice president. just by inviting us in it was obvious the company wanted to get out a specific message. i decided to start the interview by asking him quite simply -- here. >> why are you here? connell: yeah. >> well, we've always been open and transparent about inviting journalists like yourself being journalists, news organizations to come visit huawei. there is lots of misunderstanding, lots of misinformation out there about what we do. so it is always great and welcome to huawei when news organizations come to talk to us face-to-face. connell: pick one, i know you're in touch with, you travel a lot. you're back from an event in mexico city. pick one misunderstanding, if you had to say here is something

about huawei that the people in the united states generally speaking are getting wrong, what is it? >> i would say that there is a huge misunderstanding about the type of company that huawei is. huawei is a privately owned company. more than that it has very kind of unique ownership structure in which all the employees have ownership of the company, okay? it is kind of a company held in trust for the benefit of the employees. there is no real connection to the state, in china. we are part of that, thriving, you know, private business sector. i think that is probably the fundamentally the biggest misunderstanding. connell: that there is no connection between huawei and the chinese government, no direct connection. >> there is no silent connection, no ownership, no percentage of share holding that is part of the chinese state. connell: now the questions that have been brought up when accusations have been made against the company, mostly now

from the u.s. government have centered around things that might happen in the future. of course there has been back and forth between you and other companies about intellectual property. a lot of that is litigated in the courts, talked about, what have you. most current questions seem to be about things that could happen, that huawei could be used to facilitate spying. what do you say to people who look at chinese law, for example, the national intelligence law of set of september, they read through it, it says, it requires organizations and citizens to quote support, assist cooperate with the state intelligence work? people read that and they say, well if the chinese government came and asked for data from you by law you would have to provide it, what do you say? >> okay, i think there are several issues around this. first of all, the premier of china made it very clear this law does not apply to chinese equipment manufacturers. so that is the most important first issue. connell: who does it apply to? it applies to other companies? >> it applies to companies that

hold and cure curate and manage data in china. that law does not apply beyond chinese borders. for equipment manufacturers like huawei does not count at all that. is made very clear by the chinese government. secondly my colleague andy purdy, explained many times that in american media, huawei doesn't touch the data. it is managed by telecom partners. no way we can ma manipulate or touch data. when huawei has to fix and maintain a network, there are very strict rules how we do that. everything we do is logged. connell: can you explain it to me a little bit? i want to understand best of my ability the technology. say in the future, a lot is about rollout of 5g. 5g is implemented in the country and huawei will update that technology, is rolling out an

update. as part of that update wouldn't there be access to the data, if that data was asked for you would have in house? >> no, essentially we are producing physical hardware products we supply to customers. we would work with the customer to buildout the network. so this isn't even a hypothetical. it is something that is happening right now. we are in many countries. we operate in over 170 countries around the world. many of those countries are deploying their 5g networks and we work closely with those partners to buildout the hardware but at all times the telecom partners, customers are completely in charge of all of the data. nobody is trusted to touch any data at all. connell: no need, i want to be clear, i want to move on to other things, no need for you, but could you? >> no. we couldn't do it without the permission of the toll come company. connell: could you do it without the company -- is it technically possible. >> to my knowledge it is not

technically possible. connell: not technically possible. more as coverage from china continues with a look how huawei is responding to president trump's crackdown on the tech giant. much more from this interview next. don't go away. ♪ limu's right. liberty mutual can save you money by customizing your car insurance, so you only pay for what you need. oh... yeah, i've been a customer for years. huh... only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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melissa: breaking news. new video coming in after police responded to a shooting in toronto after the raptors championship victory parade. two people are injured. prime minister justin trudeau attended the event. he was told to stay on stage, stay in place. we'll continue to monitor the situation and bring you any breaking headlines. you can see that video there on the side trying to make out what happened. connell. ♪ connell: meantime, melissa we continue here from shenzhen in china. we have more from my interview with the huawei vice president andrew williamson and how the company is responding to the pressure from the white house. take a listen. no matter what the situation is if the u.s. government is cracking down on huawei, it is essentially blacklisted the company, there is obviously impact from that. so as long as this export ban stays in place, is there a real threat to huawei's survival as a

company? >> so, like all companies you know, we have business continuity plans in place. so far the company is still thriving. we're still recruiting at previous rates. we're still growing. we hope to have you know, double-digit sales growth this year. but, yeah, of course we have lots of plan bs in place. i suppose one of the big things in the moment we live in very unstable, uncertain policy environment and so we're working very hard to come up with lots of different contingency plans. connell: one of them surrounds operating systems, right? so you're rolling out or working on your own operating system since your phones that you introduce won't be able to have the google android system. maybe that changes at some point, if that doesn't, your own operating system will be ready to roll out when? what is the timetable?

>> unfortunately i don't really have any information to share on that issue. as i say it is part of a larger contingency plan. connell: this year? >> i really don't know. connell: the other big issue, maybe the biggest issue at least from analysts we speak to what is happening from chips and semiconductors. what is happening on this campus today? are people working to develop huawei's own chips? >> so i think there is lots of information in the latest annual report but of course we are always working on new innovations. we're one of the biggest investors in research and development in the world. according to the eu, we're the fifth biggest company in the world in terms of research and development. there are many spheres of research and technological areas that we're pushing forward on, in terms of development. we do make our own chips, so there are chips that are put into our higher end and smartphones. but you know, that is very much part of the global supply chain.

i think it is. it is a misnomer to think there is independence of companies globally. all these products we use every day like our smartphones, our laptops, our pads, part of a much wider global supply chain. components from many different countries around the world. the elements we produce are only a small part of the supply chain. connell: from a person watching from the united states they might say, this doesn't affect me at all. huawei, i read about it, hear about it, they don't have a huge footprint in the united states. you're saying there could be impact of what the u.s. government is doing on americans? what is that impact? what does it look like? >> the impact huawei is actually a big consumer of american technology products. so we are, our procurement budget in the u.s. alone is $11 billion a year.

stopping wall way to interact with technology partners, building relationships for a couple decades which means they're export sales that can't be picked up by other companies. that estimate is 56 billion. that 5billion includes 74,000 jobs. that might be in the technology sectors. a fall in export sales in the usa will have multiplier effects on the u.s. company. connell: if all of that is true, president trump looks at it, i'm willing to sacrifice those near term losses for american companies because he believes this effort against huawei is for the greater good, then what? what happens to huawei? >> bell, you know, huawei will invest its research and development funds and its activities in those countries where it is more welcome. restricting competition in any

market ultimately as you means that the customers suffer. connell: right. >> so the usa in constraining competition, in several markets, if it goes down that road is a strategy that will backfire on consumers. consumer prices will rise. connell: my question is what if the united states government and president of the united states is willing to make that sacrifice? many articles are written about zte, when similar ban was in place, if that ban wasn't lifted zte would have been put out of business. isn't the same true for huawei? >> the situation with huawei is very different because it is not so dependent on those kind of, on those kind of, those issues, okay, in terms of the market presence, market presence in the usa was much bigger. our international operations are much more expansive than zte. so a very different kind of

play. in terms of sacrifice, if the u.s. is willing to make, it is something that is not being copied or picked up by other countries around the world. so clearly the uk, germany, the european union, have looked at the costs against these other types of issues and have decided they want to keep working with huawei. connell: final thing on 5g rollout, we talked about it a little bit, what is happening to the timetable of the global rollout of 5g technology, because of i guess the dispute between huawei and the united states government or crackdown on huawei by the united states government? what is the actual impact been on 5g's rollout globally? >> so far there seems to be little impact in terms of rollout. so lots of countries around the world are testing their 5g networks. there is a national network that is live now in korea. i believe in switzerland as well. the uk. so many countries are developing

their networks will really see the, the full global development in 2020. we'll start going live. a lot depends on hand-sets and other devices in terms of their 5g capability. we're pushing ahead, working with many partners around the world. connell: not in the united states though? >> not in the united states. connell: so is the united states, has the united states fallen behind? >> to my knowledge it hasn't fallen behind but i think the risk is, if there is a complete constraint in many markets on 5g, from chinese equipment manufacturers, then there are estimates that this will lead to a lag in the rollout of 5g between 18 months and two years. so there is a real risk all the benefits we expect to gain, all the economic advantages of 5g will be delayed the more companies and competition is restricted around the world.

connell: we'll have much more from china as we continue. the latest on escalating tensions from hong kong. we were covering protests before coming here to china over the controversial extradition bill. i spoke to one of the government officials here, asked him about the protests there. his response, melissa is coming up next. melissa: looking forward to that. breaking news on iran. new photos that u.s. says it has proof that the iran is behind the attack on the gulf of oman. new details next. hi, i'm joan lunden with a place for mom,

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i come face-to-face with a lot of behinds. so i know there's a big need for new gas-x maximum strength. it relieves pressure, bloating and discomfort fast. so no one needs to know you've got gas. gas-x. but allstate helps you. with drivewise. feedback that helps you drive safer. and that can lower your cost now that you know the truth... are you in good hands? melissa: breaking news, the u.s. just releasing new photos of the attacks on two tankers in the gulf of oman last thursday, claiming the pictures are proof that iran is behind the attacks. joining us is john hannah, former national security adviser to vice president dick cheney. i don't know if you have had a chance to see these yet. but what in your mind would

provide proof and we have them on the screen right here. it shows the iranians, if i can describe it, right up next to these ships. what in your mind would provide proof? >> clearly, if we determine that these are mines that the iranian sailors who took that unexploded ordnance off that ship, were very comfortable removing that mine, it seems clearly that had been an iranian mine, obviously people will do forensic evidence of the blast in those ships now that they are in port off the coast of the uae, and there are going to be mine fragments and all kinds of evidence that i think will trace this back to iran and confirm for us what a lot of us already know, that iran was responsible. this is the way the iranians roll, through terrorism, sabotage and blackmail, including nuclear blackmail as we saw today. melissa: you feel confident about that? because there are folks especially on the other side of

the aisle who have raised questions as to whether or not iran is really behind this. >> yeah. i feel absolutely confident that the iranians are the only ones with a motivation and the skill set and the history. this is not just going back over the last month, where they conducted at least half a dozen operations against american interests. this is really 40 years of history of the islamic republic. this is the way they do things. these are the only means they have to fight back against a devastating economic pressure that the united states is inflicting on them. the only way they have to raise pain and pressure on the united states is through these dark arts of terror, sabotage and blackmail. melissa: let me ask you what they achieve with specifically this, because say the u.s. responds and they start, you know, escorting tankers through the region. is the idea that they are causing pain to other countries to try and get them to not, you

know, want to be on the side of america, or is the idea they are trying to provoke america into some sort of misstep? >> i certainly don't think the iranians want to have a conventional war, force on force fight with the united states military. that is a suicide mission for them. they are comfortable in the gray zone between peace and war, showing that they can inflict a price, get leverage, get our allies to pressure us to back off of these economic sanctions, show that they can trigger a price spike in the price of oil, destabilize international energy markets. melissa: it wasn't -- >> very small -- melissa: i kind of go back to if they are trying to get leverage and create pressure, how are they doing that with this kind of an action, because prices didn't go up that much. do you think that those who are attacked are really going to say let's just cave and give in to them and sort of back off in terms of pressure?

>> never underestimate the fecklessness of some of our european and asian allies when they come under economic pressure to want to try to appease an adversary. i think the united states has got to hold strong. this is the only card the iranians have to play. we have got to show them it's a complete dead end and that the only way they are ever going to get any economic relief is by returning to the negotiating table the way the president has repeatedly offered and trying to work out some kind of better deal with us. melissa: come back soon. wish we had more time. good insight. we appreciate it. thank you. connell? connell: finally, this hour, just across the border from where we are, the protests in hong kong have been making global headlines, pretty much everywhere. but here, there's been no mention, we can see, of the chinese media about the protests. here's what the vice mayor told me about hong kong. >> we are confident in the hong kong government that it is capable of maintaining the prosperity and stability as well

as social order of the region. our cooperation with hong kong is ongoing as usual. melissa: great job, connell. great reporting. all right. "bulls & bears" starts right now. david: stocks continuing their climb back slowly towards record highs today, but president trump is out with a stark warning to investors. hi, everybody. this is "bulls ai& bears." i'm david asman. joining, jonathan hoenig, liz peek, gary kaltbaum and zachary carabell. president trump tweeting out the trump economy is setting records and has a long way up to go. however, if anybody but me takes over in 2020, i know the competition very well, there will be a market crash the likes of which has not been seen before. keep america great. so, gang, is he right? will markets crash if cr