points there. the money is pouring into treasury securities. that pushes the yield all the way down to 2.03%. ashley: somewhere in there. stuart: we are the only game in town. we pay you interest and we're dead safe. neil, it is yours. neil: stuart, thank you very much. it's a weird game we're seeing playing out with bonds soaring and stocks soaring. optimism that we'll see interest rates cuts sooner rather than later. not necessarily after the federal reserve meeting ends tomorrow but something happens in the july meeting. on optimism. china is willing and able to come to the table. president recounting that they do plan to meet the two presidents xi xinping at the osaka summit. one thing we learned, president is optimistic. maybe two camps can get a lot of details out of the way, meet before they meet.

it is spurring optimism a trade deal may be had. i think we might be getting ahead of ourselves here. but just that talk alone is lifting trade sensitive issues with boeing and caterpillar up. we have you covered with edward lawrence on capitol hill. blake burman at the white house. the read from edward lawrence where those china talks stand first. edward? reporter: the tweet from the president came as a surprise to everyone including the u.s. trade representative's office who is actually making the deal. the tweet said the president had a phone call with president xi xinping. he would meet at the g20 summit. that the two sides would be talking again. officials at the u.s. trade representative's office said they had no idea they would be getting together. larry kudlow confirms that the talks will proceed forward. trade advisor robert lighthizer says the the economy is strong.

even with tariffs impose, that they are bringing china to the table. he said we must hold china to account for stealing intellectual property or we won't have future for college graduates. >> none of this making sense unless you know china is stealing our intellectual property. i would say to the chinese students, if china steals our intellectual property you will not have jobs in the future. when asked by senators they need to get allies before going after china. lighthizer says he likes where we are now. he had meetings with japan to get china to follow through with international trading rule rules. he talked about the usmca. he talked with house speaker nancy pelosi's office. he is trying to get them to bring up ratification. lighthizer said his main challenge was finding someone to talk to who can actually say yes, those things will be enough. the house speaker appoint ad group of democrat that can speak

for the democratic side of this, any changes that need to be made. lighthizer says he is hopeful soon he can have progress with that group. now the canadian prime minister will be here on thursday. we have confirmed that the canadian prime minister will speak with house speaker nancy pelosi and sort of nudge her along to promote the ratification vote mere in congress at usmca to move it along. neil: is the president telegraphing a possible trade deal done in japan at the g20 summit? that is what some are anticipating? reporter: that is hopeful, hopeful message i think. at this point the u.s. trade representative's office was really confused when i showed them the tweet from the president. there hasn't been any communication between the two delegations, the two sides up to now. the president obviously indicating he made the phone call to president xi xinping. maybe that will spark this agreement coming back and forth. the u.s. trade representative said he will not accept anything less than what they already

agreed to. he is not going back to renegotiate. we'll see what china comes to the table with before the g20. neil: edward lawrence, thank you very, very much. remember a while back the administration looking at possibility of firing jerome powell, federal reserve chairman. apparently they moved on from that. we can't fire the guy, can we demote the guy, put him in some position that will force him out. blake burman that story got new steam today. sounds incredible, blake, what are we hearing about that? reporter: new steam. the white house explored the possibility of demoting the fed chair, jay powell. now at this hour via the president's top economic advisor larry kudlow, kudlow is saying that at this point quote, we not taking any actions to change his status, meaning of jay powell but of that report that the white house explored the possibility of demotion earlier this year, kudlow would not

necessarily deny that portion of it. listen here. >> that story is, i'm aware of it and reason i'm not going to comment it is a six-month-old story. >> [inaudible] >> allegedly, allegedly. >> [inaudible] >> i'm not going to confirm or deny anything. i will not comment. reporter: did it happen six months ago allegedly? he said he will not confirm or deny it. there are couple different issues. the idea of demotion, legally the president of the united states cannot demote the chairman of the federal reserve. of course there is also the issue of firing which is separate from demotion. now for a fed chair to be fired there has to be cause. the president not liking the chair of the federal reserve's interest rates policy is not cause for firing. when i asked larry kudlow if the white house sort of come to the

realization that, that they are stuck with jay powell at this point, kudlow said to me at one point, digging up my notes, quote, we're not taking any actions to change his status. so that from the white house and jay powell today. speaking of the white house, president will leave here later this afternoon to officially relaunch his election campaign. he is doing so by teeing up his signature issue, immigration. the president took to twitter to saying next week i.c.e. will begin process of removing millions of illegal aliens who illicitly found their way back to the united states. neil: curious back to the jay powell thing, demoted him to what? vice chairman, to chef, what? reporter: maybe to those who deal with the media. neil: oh. reporter: it's a good question but the bottom line, i got email from our friend judge napolitano, who said flat-out this cannot happen. i don't know if they were, you know, kudlow didn't go into

whether or not he was being demoted to a board member, the vice-chair, someone who would give advice, et cetera. that is a great point. it is something they cannot do. neil: cause would be either, mental capacity is questioned or you're doing something criminal? reporter: doing something illegal. you are flat-out incompetent with performance on the job. rates should be quarter percent lower that doesn't cut it. neil: blake, thank you very much. blake burman. markets are higher with all the crosscurrents, most notably on trade situation. optimism at least two sides are talking with the president of this country and president of china are talking, comparing notes, looking forward to meet with each other. there was earlier discussion that the chinese president wouldn't even show up at the g20 meeting. the president all but promised you're a show a no-show, get rer more tariffs. this is the situation going on

in orlando, florida, to see the president kick off his second term run. these crowds were building, 24 plus hours ago and they're all cramming into the arena, i think seats in excess of 25,000, but they expect potentially four times that number outside, those unlucky enough to get in. they will have jumbotron screens and the rest. so they can see and hear the president of the united states. florida of course, a crucial state that the president won. hopes to repeat that magic, hence the kickoff in the sunshine state. that will be later tonight. "washington examiner" senior editor kelly jane torrence, dan shaffer, market watcher extraordinaire former spokesman for jeb bush's 2016 campaign, matt norman. as a former jeb bush spokesman, it was in florida the candidate trump took out your guy, marco rubio, two favorite sons,

that was all she wrote on the way to the nomination. it's a bit more difficult path than the general election for president, given some state polls. he is holding his own in florida, is that right? >> absolutely. this is a must-win state. the last president elected without florida was calvin coolidge in 1924. he had a strong base going back into the republican primary, going back to 2016. one keynote he is doing rally in orlando, i-4 corridor, probably the swing part of this state where there has been influx of puerto ricans and many new voters into the state. he needs to win that area to make sure he wins the state and win the election. neil: kelly jane, very, very early, i always stress that, we go on what we have for the moment, for the moment we have the president in a heap of polling trouble in big states he won last time, took from the democratic electoral column to the republican column.

early though it is, he is in trouble in those states and given the economy and given the record low unemployment in those states that doesn't make sense, does it? >> voters are in a good mood, they want to see that continue but we're seeing voters are still dissatisfied. if i were the president i would try to reach out to new voters, you know, as matt said. he has to win some new voters to get in but what he is doing is actually reaching out to the base. i expect we'll see tonight the same sort of campaign rally that we saw throughout 2016. he is expected to make immigration one of the big issues again. it is certainly a winner with the base. will it bring in new voters? that is harder to say. neil: you know, dan the president was tweeting over the weekend, go ahead, you don't elect me, there will be a market crash. what do you think of that? >> it is quite unusual for a

president to say that. i think that he may be right. i also think that the economy is pretty weak right now. we need him to continue keeping the stock market alive. i think that there is a lot of validity to it. i'm surprised he would say that but the market has been in a growth spurt since the bottom of 2009. it's a very large expansion of the market but the economic numbers are not keeping up with it. president trump hopes to keep the numbers going to keep the market up. neil: matt, i can see to him pointing to all democratic candidates, to a man or woman they want to totally wipe out the tax cuts or scale them back dramatically. obviously wall street wouldn't read that favorably, that is what you would suppose but wall street grew very nicely under president bill clinton, came off recessionary lows, under barack obama. you could couch it to say, all right, it depend on the adjustment, right? >> i think you're right.

blends to both sides of his strategy. he certainly needs to tout the economy. the economy is a lifeline for republicans. if it dips because of trade or just a natural recession that is a problem for him going into 2020. but on other side of this coin he has to create an enemy when it comes to democrats. he won in 2016 because hillary clinton was more unpopular than him. for him to eke out those 6 to 8 points he needs to get a victory he needs to make the democrat unpalatable, not just obviously his base who will be with him anyway, people in the suburbs and exurbs who went against him in 2018 and might be leaning against him now, depending how the economy shakes out. neil: kelly, when you look at math, electoral math, that is how we elect our presidents, 270 votes, if the president were to lose a couple states he won, like pennsylvania, you know, michigan, et cetera, he would have to make up for them somewhere.

can he do that? where would he likely pick up that support that maybe isn't showing itself now? >> i'm a little skeptical that he can but you know, his team certainly thinks that he can. they're looking at a lot of places where, you know, he didn't do as well in 2016. they're looking at some surprising places. even up in the northeast they think they can do well. of course they're looking at, places like nevada, places where he did very close too, they're trying to make sure he gets those victories. but as one of our previous guests said, i wonder though, looking at these specific states, they're not looking at what those states want. now just sending someone out there, putting a lot of time in, we know that hillary didn't do such a good job showing up in michigan, wisconsin, pennsylvania, that hurt her. just showing up is not going to be enough. he really needs to find some issue that will bring in new voters. i think he is going to again make immigration the central

issue. that is going to help him a little bit. i think democrats with most of them saying that borders aren't moral, that will certainly hurt them. but i'm not hearing him talk about anything that is going to bring in these new voters in these states that went for hillary clinton in 2016. i'm just not seeing it. you can send as many pollsters and consultants out that you want, if you're not speaking to the people with something that really resonates with them, it doesn't matter. neil: does it pound the table to keep pounding the markets, dan? >> well that is an interesting thought. you know, when the fed used to do it was called jawboning. now we have the president doing it. i think it is helpful, i really do. people's 401(k)s and savings have gone up tremendously since trump was elected president. there is no question about it. the problem i see with headwinds, with his tweet this morning meeting with the president of china, i just don't think china is going to make a

deal. i still, i have said this many times with you, i think they're going to wait the elections out with trump. and tariffs are going to be a big problem for the economy. i think chinese know that. that is a big issue. neil: you're right, all of the above. guys, thank you very, very much. we were saying polls are fleeting snapshots. once snapped they're shot. we have new numbers coming in of the, show some of these polls in these same states, for example, like michigan and a couple of others including wisconsin, what had been 12 to 15 point lieds by for example joe biden are down to high single digits. that is reminder things change. they're changing. we'll have more after this. is where people first gathered to form the stock exchangeee,

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neil: pentagon announcing more u.s. troops going to be going to the middle east. this as the tensions with iran are escalating here. iran indicating it is all but broken off from that 2015 nuclear deal. it seems that it will be well back in order to get nuclearized in short order. fox news correspondent tray angst with all the latest.

reporter: patrick shanahan released a statement saying 1000 more troops ordered to the middle east. these troops will be part of the u.s. presence here that includes a carrier strike group, fighter jets and b-52 bombers. defense officials tell us that they are support troops for fighter squadrons currently deploying, patriot aircraft batteries and engineers. this comes amid heightened tensions in the region after attacks on western linked oil infrastructure. last week two oil tankers were targeted with limpet mines near the persian gulf. the military released a new photos after iranian gown boat allegedly involved in the attack. the gunboat approach ad japanese oil tanker and removed unexploded bomb from the tanker. the pictures were taken from a helicopter. the general in iran said blaming iran for the attacks is a

conspiracy. speaking in tehran, the iranian president hassan rouhani said his country will not go to war with any nation. neil? neil: trey, thank you very, very much. oil prices are climbing on all the crosscurrents. escalation with iran getting us close to a war. sometimes people telegraph that about things to come. undersecretary of defense under bush 43 peter brookes. you've been argued that because it rattles markets it doesn't mean it will come to war in this case in the middle east, erupting violence between ourselves and the iranians. what makes you say that? >> look, tensions are high but i don't see we're necessarily heading for a crisis that will lead to conflict. iran is trying to get themselves out of the economic hammerlock we've put them in. they're really in a lot of pain. neil, look, you're talking about inflation at 40%, unemployment at 15%. the real, iranian currency, is

down 60%. iran is exporting as little oil, as little as since the 1980s. half of the government income comes from energy. so they're in a hurt. so what they're trying to do, is, they're trying to appeal to the europeans not let them get out of this nuclear agreement which it looks like they're talking about doing. we're not there yet. they're talking about 10 days until they exceed their stockpiles of low enriched uranium. they're talking about potentially other issues. i think the fact of the matter is we're not necessarily at the point of war or conflict. tensions are high. they're likely to stay that way as iran tries to get out of this economic hammerlock we've put them in. neil: many of them too, those countries in europe and elsewhere, they still question a lot of the intelligence that we have that seems to point to iran unequivocally as being behind these tanker attacks.

what do you make of that? >> well, look, i mean, it is, since they don't have the information perhaps we've not been able to share it with them. we know what is out in the public sphere. we don't know what our folks know behind closed doors and intelligence, intelligence circles. perhaps that information hasn't gotten out there yet. there is possibilities of being skeptical. i'm not skeptical. who else would have done this? if you want to go conspiritorial, you could say somebody is trying to push us towards war with iran. iranians did not target an mile-per-hour warship. they have not targets american troops yet. we haven't had that sort of thing. yeah, people are going to be skeptical regardless. but the fact of the matter is, i don't know who else would be involved in doing this, would have motivations to do so. neil: real quickly, i wonder if iran is behind a lot of this and that audacious, someone has their back or they feel someone has their back, what do you think? >> if i understand your

question, neil, the fact that iran is a major power in that part of the world. they have significant influence in places like lebanon and syria in iraq, obviously, obviously in yemen. so they are -- neil: talking about russia, china, what do you think? >> russia-iranian relations are strained. china has to look at the relationship with the united states or relationship with iran, same thing with russia. there are, nobody is, i would say has their back completely. that certainly includes russia and china. neil: thank you, my friend. very good catching up on this region. peter brookes. boeing shares, see what is going on? looked like they were smacked out of any orders airbus was bragging about a 100 jet deal. all of sudden out of nowhere come some big deals that boeing has. 200 jets ordered, these are the 737 max jets. that could be just for starters. reason enough for the stock to be advancing today. it is not alone.

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neil: this is a rally built on lower interest rates for the 10-year note, about 21-month low interest rates. that is what we're seeing. and optimism about a china trade deal. it is lifting the likes of boeing and caterpillar, both of those up close to 3%. lifting a lot of semiconductors reich, etfs. largely again on optimism of a trade deal with china which would benefit that sector, disproportionally compared to others. meanwhile the federal reserve starting a two-day meeting would wrap up tomorrow. split views whether they cut interest rates. certainly laying groundwork for one next month. market watcher, mark luschini on

all of that. mark, what do you think? >> neil, the market said are is about 20% chance of a rate cut tomorrow but basically 100% chance for july. the setup will be what follows tomorrow's meeting, not necessarily a rate cut but what accompanies it with the press conference jay powell will confer with the media. in addition the dot plot which accompanies the release. shows what other forecasts likely to be the monetary policy action over the next 12 to 24 months. neil: you mentioned that 12 to 24 months. one scenario has two to three more rate hikes, rate cuts, i'm sorry, by the end of this year. i can't imagine it, but what do you think? >> it is hard to believe. we just got a report this morning from the federal reserve that shows gdp is operating at about a 2% level at this juncture. last friday, the new york fed similar, forecast 1 1/2% gdp

growth. they are showing numbers that are at or slightly below trend, it doesn't seem sufficient to warrant three rate cuts the next six fed meetings. it suggests that market participants are rendered vulnerable to a federal reserve cuts rates, not as many as three times. neil: i wonder if we get a china trade deal, part of this big rally, a big chunk is built on optimism of a trade deal, given the fact the president spoken to the chinese counterpart, seems to lay the groundwork for something in japan at the osaka summit, the g 20 summit. wouldn't that take a need for a rate cut off the table if they decided to score a deal at their table? >> neil, i completely agree. i think the fed thought if the economy need ad rate cut now, it would cut now, it wouldn't wait to satisfy the market as anticipation of one in july. neil: right. >> secondly i think more likely than not, the fed will at least wait through the g20 meeting, as

you just mentioned. if a deal is struck or at least some agreement around a path toward a deal is laid out, what we'll see equity prices continue to advance i think will reignite animal spirits in the business community, not just here in the united states but around the world which ought to be good for improving economic conditions domestically and internationally. neil: we'll see what happens, mark. the markets might get ahead of themselves, to think that through. be careful what you wish for, if you get it, it will send a different message. mark, always good chatting. meantime he is considered the modern day bond king in the private sector at least. no one owns more bonds than say the united states government. he is a billionaire. jeffrey gundlach will be my special guest. what he sees from interest rates with a guy uncannily prescient on all these developments.

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neil: progress at the border the president says. not just our border with mexico. mexico's southern border with guatemala, a country pivotal trying to ease the migrant crisis we've got. guatemala might see itself in a safe third agreement. in other words alternative for migrants for those who try to cross the border to be there and awaiting adjudication there, than the united states. mexico also in that potential role. william la jeunesse near the guatemala, mexico border. hey, william. reporter: this is game-changer. guatemala is considering a safe third country agreement. that requires hondurans and salvadorans coming north to the united states, to file for the asylum claim in guatemala. if they go to the united states,

the u.s. can legally deny them. that is the same thing president trump wants from mexico. what, they haven't agreed to it yet. that is the whole 45 days we'll reassess. i wanted to show what you mexico is doing. so they are stopping right here a public bus. this is an immigration agent right here. over on the side, federal police, national guard here. they are literally stopping every bus, every truck, every taxi, that comes through this checkpoint, trust me, there are many of them, coming north from the guatemalan border. if there is my grant there without papers, taking them off, putting them in another vehicle next to me, deporting them. that is what mexico is doing. it is considered a pretty big deal. 6,000 national guard assigned to the area in southern mexico. they're not all on the border, neil. you heard of a concept fence in depth? it means you put some guys on the border on the river, that will act as deterrent. you put them at checkpoints, bus stations, at rail yards, truck stops, anywhere migrants go to

pick up ride, they put them there. that will have a large effect on the migration situation, reducing those already in the pipeline. hopefully stopping those, at least reducing numbers showing up at u.s. border in california, texas and arizona. not everyone is happy with the situation. human rights groups say mexico is punishing people that are fleeing violence and political oppression. they need a safe place. they're being denied that. the mexican commission for refugees, we were there earlier this morning, who said they want to stay here or go north but many are afraid to go home. >> then i got deported to el salvador. back in el salvador, i can't do nothing. i cannot even leave there. the gangs are tough. there is no job. there is no money. the economy is on the floors. reporter: if to underscore the president is serious about this yesterday, he actually made good on a promise from the state

department cutting aid to central america, to honduras, guatemala and el salvador. talking about $530 million being cut off from them. they are getting some money, going forward, will be conditioned on their ability and willingness to stop their migrants from coming to the u.s., neil? neil: you see it in action, playbook behind you. william la jeunesse, thank you very much. the administration is threatening mass deportations of millions of illegals already in this country. how that would pan out and happen, former i.c.e. senior attorney. john, how likely is that? >> neil, i don't think it is very likely the president is going to be able to deport over a million people with final orders of removal in short course. simply stated, there is over a million people in the country with final orders who don't want to leave. so what the president would have to do to execute this plan is detain and forcefully remove over a million people. that is simply not going to happen for variety of reasons including a complete lack of bed

space getting anywhere close to a million beds to deport people. neil: but this is moving target as you reminded me over the years, john, how many are here in this country illegally. could be upwards of 12 million, 16 million, 20 million, let's say vast overwhelmingly majority want to be here. to start picking through that, to start, you know, trying to push that, that is herculean task? >> it absolutely is. while there may be political will right now to do that within this administration, they will certainly need resources to do it. from what i can see these agreements that the president has negotiated with mexico and guatemala may free up lots of bed space to go after perhaps the worst of the worst, people with really violent records, who have orders of removal. but some of the details i've seen too, the president want to go after people who recently entered, not appeared for court and have orders for removal. the problem with that, these people have disappeared into the

country, whether by fear, ignorance or they don't want to be caught, finding those people, deporting them en masse is going to be nearly impossible. neil: john, thank you. apologize for breaking news. we want to pass along some news on iran and pressure we're building on what they say is unequivocal proof that they were behind these latest tanker attacks. secretary of state mike pompeo says the u.s. will maintain a pressure campaign on iran. he is not spelling what would be that pressure. we'll see. the pressure on facebook, to do an b face, change its ways, break itself up, that is not coming from a politician but an early investor in facebook after this. liberty mutual customizes your car insurance, so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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neil: mark zuckerberg of facebook is promising a new crip cocurrency that will protect your privacy, protect your money. what could possibly go wrong? roger mcnamee, zuck author. he made quite a few waves, in his best-seller zucked, waking up to the facebook catastrophe. probably alienated a lot of his friends but laid it out surgeally in this riveting book. thank you, roger.

thanks for coming. >> neil, it's a pleasure to be here. neil: you were were an early investor, early confidante, an early supporter, but then the wheels came off and early on in your book you talk about the need for facebook to have a comeuppance. write very quickly, it was terrible for america, needed to change or be changed. what i have tried to do about it, my hope a narrative of my own conversation and experience will help others understand the threat that you said provided compelling evidence and experience to show that it does need to be reined in. why did you say that? >> so, neil, when i first wrote this book it was because i had seen issues going on relative to public health, essentially addiction issues for kids and for adults. issues for democracy around the world, in india, in brazil, the united kingdom all around the world. saw issues in privacy for

people's ability to make choices without fear and issues in competition. it was really all stemming from the business model of facebook which the harvard professor sue. ebov, calls surveillance capitalism. the calls collection of massive data, conversion of data into data voodoo dolls of etch and everyone of us, to essentially use that and control the choices available to us and steer us towards outcomes favorable to them. in my mind this is not something happened because people at facebook are bad. this happened because, that there were no rules in the frontier of data economy. smart peep grabbed, why not thinking about the consequences. when i saw that i felt it important to reach out to mark and cheryl and i did. neil: those initial conversations didn't go swimmingly. >> no.

i don't know, they haven't talked to me in a long, long time. here is the issue, i spent three months privately trying to convince my friends this is what happened with tylenol, when the guy put poison in bottles in chicago back in 1982. neil: right. >> where you're supposed to leap to the defense of the people that use your product. you're not supposed to be asked to do that. you're supposed to recognize we're all human beings, we make mistakes. the best way to put a mistake behind you is go out of your way to fix it. i spent three months pleading with them. when they didn't, i was faced with a choice. what i realized i knew things that the country needed to know. and that the country needed to have an opportunity to make its own choice about whether what was going on was okay or not okay. so i spent the last couple of years, essentially stimulating that conversation and you know, what i would say is, that you know, i think at facebook they still would like to have the ability to operate without anybody having any control over them. neil: well they opened

themselves up to that possibility, right? >> yeah. neil: you say the surveillance, everything they use was sort of like a modern day, truman show. they have a lot on us. >> yeah. neil: they have crypt toe currency, they say our money will be safe, you are concerned about bad guys in the past who took advantage of that structure, like the russians and others, of even those who were pushing brexit, i used that example, that they could be taken advantage of. do you still think that is the case here? >> here is the issue. mark talked about two things. not just the cryptocurrency but about end to end encryption of all messages on facebook. that sounds like maybe that would be good for consumers. the problem here is the real benefit goes to facebook because is absolves them of responsibility for what is going on inside of the platform. so a bad person can do a harmful message, they can do disinformation or conspiracy or

hate speech. neil: you know that about him, you talk about later in the speech, from his time at harvard mark zuckerberg showed a persistent indifference to authority rules and users of his products. it sounds to me like he hasn't changed? >> neil, shame on me for having not known that story when i first met him. i didn't meet mark until 2006. it was two years into the company. and that history from harvard is something that i only became aware of much later. i do fault myself. i'm a professional analyst. i could have known that but he was a really appealing character. you have met a ton of silicon valley people and they're not like everybody else but in many ways the ways that they're different are really cool and mark had this idealism, this desire to connect the world that was in his early days also buffered by serious protections of privacy and authentication of identity. neil: you know him far better than i, i'm not trying to second guess you, roger, it is a

excellent book, i want to posit that, i think he thought, i'm not saying the ends justify the means but this vast network of data and everything else, yeah, a couple could exploit it like the russians, et cetera but that the good would triumph over those who would try to do evil. what went wrong? >> i think that's right, neil. i think, when you get to global scale, when you get to 2 billion people, to me the russians are a tiny piece of this. i'm much more worried about the harmful -- neil: by the way, on that sorry to jump on you, they did influence the election, if not for facebook, donald trump wouldn't have won? >> i have absolutely no idea, no ability to prove it. let's not relitigate 2016. let's focus -- neil: you did raise it, but not say it out right. >> i can't prove it. i don't know one way or the other. they influenced brexit. they clearly attempted to interfere in the u.s. election. they clearly, there was

interference in india. there was interference in brazil. so this isn't a u.s. problem. this is a global issue. we have a breakout of measles because of the anti-vax movement. flat that's right is mostly going on youtube. there is a lot of harmful content a lot of hate speech, extremist stuff. isis uses the platforms intensely. when you use encrypt shun, things like cryptocurrency you're essentially giving the bad guys extra power. when you know who people really are, neil, they have to be themselves, have to be authentic, it is a lot harder to do harm. that is when the law can really protect you. when everything -- neil: given its past track record, maybe intentionally or not, they shouldn't be doing something with a cryptocurrency period? >> i don't think so. or put this way, i think we should have a real covers about it first. neil: how about breaking them

up? that is another idea. you seemed to endorse that. looked at google, some others, this would be a card-carrying case to pursue? >> so, neil, the great history of antitrust in tech is if you want to increase competition, make new tech waves happen, antitrust played a huge role in promoting growth in the tech sector. that takes care of the competition piece. what it doesn't take care of is the public health piece, the democracy piece and privacy pieces. you need to there go after the data economy. you need to go after surveillance and address that. that is way bigger than facebook. that covers google and a piece of amazon and piece of microsoft. neil: silicon valley, you have this enormous network of connections and wealth built on knowing what you speak. you clearly do. i'm just wondering, i mean we look at this push now to stop all of these tech giants up and that they have suffered arrogance fate.

you say the same with myspace, digital compact with other names in past, that they will in the humble themselves maybe we have to do that. is that the right cure? >> neil, i frame it a little differently than that. to me breaking them is not the entire answer. neil: don't ignore them? don't ignore them? >> the critical thing here they are stifling innovation. they are stifling entrepreneurship. they are stifling small business. everybody has to play by their rules. they enforce rules very arbitrarily. neil: what about market forces? >> they're too big for that now. they are the market. the key thing, in every democracy they have the biggest voice. yet there is no control system. there is no, there is no way to moderate them. the market is just broken in one area. we can fix it, neil. i'm a pro-capitalist guy. i want to bring capitalism back to the tech industry. neil: fascinating that you could have been a media guy like me. you found where the big money

was and big success. ba at yale, mba at dartmouth tuck school of business a great book a great read. >> neil, if you need a partner, call me up. neil: exactly. you don't want to take that cut, young man. roger, thank you very much. he does make you think, about what is happening here, what sun folding before us. stick around. you're watching fox business. ew feedback that helps you drive safer. and that can lower your cost now that you know the truth... are you in good hands? at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity.

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neil: all right. confident that interest rates will be lower, confidence in a trade deal. they're really not compatible. interest rates would presumably be lowered if we don't get a trade deal. if we do, it's a given -- you know what i'm getting at. bottom line, we are looking at ten-year note interest rates close to two-year lows right now. gerri willis following it all from the new york stock exchange. hey, gerri. gerri: hey, neil, that's right. we have a big rally in stocks going on, the dow up 346 points, after the president's tweet that he expects to get together with president xi of china next week, as soon as next week. this is music to the ears of traders. you are seeing the charles brady trade sensitive stock index soar led by micron technologies, up 7%. there's a back beat in this room here on the floor of the new york stock exchange that there is some skepticism, let me put it this way. one of the traders said today how many tweets have we seen about china. so they are a little on edge.

i want you to see and meet tim anderson, who has been here for a long time. you have a lot of experience. what do you make of this tweet? >> i really don't think anybody should be surprised president trump is going to have a positive trade tweet related to china on the day that he's kicking off his 2020 election campaign with a huge rally in florida. gerri: you make a good point there. i understand what you mean. tomorrow, another big day, federal reserve could make a move with interest rates. what are you expecting? >> it could. the probability is about 25% that they will cut rates tomorrow. i frankly would be surprised to see them cut. it's much more likely they will just set the stage so to speak for a rate cut in july. the fed has a history of preparing markets for what they're going to do one meeting in advance, and that's where i think we are right now. gerri: thanks for that. got to tell you, everybody will be watching the fed meeting notes to see what the fed says about the economy, give us a clue where they're headed next, if they will cut rates in july.

everybody is a little circumspect about this tweet from the president. back to you. neil: thank you, gerri. gerri willis. obviously this could be tied with his big florida kickoff tonight. we are also just hearing from the president that his acting secretary of defense will get not much further than that, acting, that secretary shanahan, the acting secretary, decided not to go forward with his confirmation process. the president commending him for a great job, he's a good patriot, but he's not going to be the next defense secretary of the united states. we don't know who will be. meantime, to orlando with the developments there as the president gets ready to kick off his quest for a second term. kristina partsinevelos in orlando with more. hey, kristina. reporter: everybody here too is getting ready. a lot of people are excited, chanting four more years for president trump. we know this is a very important state given it's a swing state. just take a look at the numbers from 2016. we know the president narrowly won versus hillary clinton by

1.2%. three other states, two key states, the president barely beat by 1%. that really hasn't fazed this crowd. a lot of people are dressed up in full gear talking about the economy, talking about immigration. they don't seem to be too fazed right now by the early polls that we're seeing. we take a look at the fox poll, we can see that biden right now is winning by about ten points. we've got sanders by nine points. elizabeth warren, by two points. i like to preface we know the elections are in november 2020, 17 months away, so a lot could change. especially we are talking about florida. we know the president has a lot of support here. you've got senator rick scott, governor ron desantis. we know after the president speaks behind me at the amway center, he will be heading to miami. a major fund-raiser tomorrow evening. but here right now, you've got a lot of people that are excited and want to go inside before the storms hit. the president should be speaking about 8:00 p.m. eastern time.

back to you. neil: thank you very, very much. we are getting a little more detail on the acting secretary of defense patrick shanahan taking himself out of the running for the defense secretary of the united states, the confirmation process. the president just tweeting that i thank patrick for his outstanding service and we'll be naming secretary of the army, mark edford to be the new acting secretary of defense. i know mark and have no doubt he will do a fantastic job. the assumption is whoever the acting secretary is, he will pursue through the confirmation process the job on a permanent basis. that was the supposition with patrick shanahan and of course we know that's no longer the case. meantime we are focusing the president in orlando trumpeting the economy, the wind at his back and maybe possibly a trade deal with china. the fallout from all of this with real clear politics cofounder tom bevin, democratic strategist david bernstein and

kat, your take on the president choosing florida not by accident, as sort of the kickoff point for term two. >> right. some of these polls that have come out, they look pretty bad, right. the one that stuck out to me was half of texas saying they either definitely wouldn't or probably wouldn't vote for president trump. however, at the same time, it is still so, so early. it's way too early for anyone to be saying this is how it's going to be. i mean, choosing or trying to decide who the president's going to be right now is like a high school kid predicting who their prom date will be at the beginning of the year because the only thing more volatile and turbulent than a high school love affair is politics. neil: fortunately, my mother said yes. had to be back by ten. you know what's interesting, when i look at this, the top tier democrats beat the president right now, and i totally agree with kat, you mentioned this before, these polls aren't worth the paper they're printed on but it is interesting in the face of the strong economic recovery, record

low unemployment rates, nationally, for almost every key demographic, that he's even in such a position. snapshot or no. >> i think one of the things to take into account is the president has historically underpolled. we saw this all through the first campaign, you know, we saw this and i think we continue to see that now. i do not think the polling, not to get all wonky, is important, because we pay attention to how these things are constructed. they are not constructed to take into account a lot of the people who are most supportive of trump. neil: but when you have a 10 or 12 point gap in some of these states, does that apply here or no? >> what, for trump? neil: yeah. >> i mean, look, i think first of all, national polls, throw them out. general election national polls. you want to focus on something, focus on the states that matter. even in those states, trump is a very polarizing figure. fires up his base, fires up democrats, you've got the slice of independents who maybe don't like his style but aren't so -- they do kind of like his

policies and where the economy is, bit comes down to a binary choice. we don't know that choice yet. it's who the democrats nominate. that is going to be the defining factor of, you know, when voters go in and decide to pull the lever, do i want to stick with trump or, you know, for whatever reason, do i want to move over and throw things back to a democrat. we just, it's so early now. the polls to really pay attention to are the ones in the democratic nominating race because that race is fully under way. the first debates in miami are next week. we are getting a clear picture of who the democrats are favoring. neil: normally the economy is the backdrop for every race, right. if it's less so here, and there are other factors coming into play, what do you think? >> right. i think that no matter who's in office or take away everything else, if the economy starts doing poorly, that's going to negatively affect that person. at the same time, though, trump in particular is someone who has a really fervent core of supporters who support him not just because the economy is doing well but because they really, really stand by the way

he feels about other issues, particularly immigration, and especially when compared to democrats who seem to be moving further and further left with some of them even saying they would go so far as to abolish i.c.e. and so on and so forth. for a certain segment of the population it doesn't matter, but it does matter on a larger scale as it would with anyone. neil: one of the arguments that favor joe biden is he is the one who could combine what's necessary for the victory on a wide enough margin. that's the read today. but others are leading the president in these hypothetical matchups. is it joe biden's nomination to lose? >> look, i think certainly the polls at the moment would suggest that, but we know what the polls said about hillary clinton. i think there is always a risk when you go with the kind of establishment institutional figure, there's a deeply compelling argument for and against democrats should nominate joe biden or someone like mayor pete who is totally new. lots of people come down on both sides. the thing you have to look at is remember, in 2016, hillary clinton was entirely defined already to the american public

before that election. there was not a lot of room for her to redefine herself. >> she tried. >> these candidates, including joe biden, are not actually hugely defined to the american public. that's going to be a big thing to watch. hypothetical poll against trump, you are basically saying do you like trump or not. as this election unfolds, trump will have a huge opportunity to define these people or are they going to be able to do it first. that's the real question over the next 17 months. neil: that was a tweet from the president. >> the problem with joe biden is that he has a long record and a lot of positions, many of which he's having to shift on and change on and a lot of that stuff is going to get relitigated. the other problem with biden is that he's running a campaign that is fundamentally backward-looking. he's looking at the folks who voted for obama in 2008 or 2012 or both in some of the midwestern rust belt states and saying i want to take you back to the good old days of obama. the reason they voted for trump, switch over, voted for trump is the good old days weren't so good for those folks. i'm not sure that's necessarily a compelling message for the folks that matter in the states

that matter. neil: the trade situation, you could have a good economy but if you are facing high tariffs and this thing isn't resolved, certainly by election time, if it's not resolved, people will be paying those tariffs. >> yeah. i think that's the biggest risk of all for trump is an economic catastrophe or anything like that, which obviously we don't hope for, but it would be a serious problem. [ speaking simultaneously ] neil: what do you think? >> some democrats absolutely do hope for a bad economy because they would want anything to get trump out of office. that's all that matters to them whatsoever. that's absolutely, someone said so. that's absolutely a fact. i don't think you do, though. don't worry. i'm not attacking you personally. i think the economy will have a lot to do with it. we also have to wait and see. it's so early. why are we all so nuts that we need to talk about this so early? neil: you get graphics packages. >> for the graphics team. i understand. >> can i add quickly, in addition to the economy being a top issue, health care is a top issue. it was a top issue in 2018. so far, trump could say he's

lowered prescription drug prices and that's not nothing, but every one of these democrats is out there proposing some alternative to the current health care system, whether single payer, medicare for all. neil: the president is bucking his own party by pushing it. they're nervous. we don't have anything ready. >> we have seen that before. >> he sort of featured something over the weekend, teased this idea he will have some health care plan rollout. we have to see what it is. neil: beautiful. guys, thank you very, very much. this anomaly on wall street continues right now. you have stocks up on the prospect of a deal, interest rates down, that if we don't get a deal, federal reserve will have essentially the president's back. you can't have both. one or the other has to give. more after this.

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understand is a record at a presidential, for a single home. these are done quite regularly. obama did them. you go to a single house. it was like 180 people there, all maxed out. yes, they were greeted by protesters outside and when you were walking in, people were screaming at him saying no more big corporate money, they were showing signs of the green new deal. neil: he takes that money. >> he has no problem. i'm sure bernie sanders was behind a little bit of that. the others running against him for the democratic nomination. what was fascinating was this. he raised a ton of money. republicans and democrats were there. john caspetini, al dimato, former senator, plenty of democrats, they were all there. it does say something -- neil: they are there to give him money? >> yeah. yeah. people maxed out, from what i understand. again, lots of signs. 180 donors. i will say this. i'm not saying joe biden's going to win.

if he does win, he matches up against and that's what all these folks know, they're not stupid, he matches up against trump tremendously in those battleground states and he's going to have the money to take it home and they think he's got -- he's the one guy that can go toe-to-toe with trump on the insults and everything else. notice how biden is not attacking trump -- has been attacking trump personally, not his democratic opponents. right? at this event he barely mentioned trump. he mentioned just some of his ideas. he said listen, people, i just want you to know, we will have to do something for the middle class in this country which is falling behind. that's what he said. not saying it's true but that's what he said. the people in this room will be fine. what he's telling corporate donors in corporate america, we are not going to redistribute wealth massively. neil: he has talked about hiking the upper income. >> yeah, but he's not talking about the massive redistribution -- neil: like a wealth tax? >> any of the crazy stuff

sanders or warren -- neil: this crowd is gravitating to him. of course, there was a time, not this exact crowd, the money crowd was gravitating to jeb bush four years ago. >> yes. neil: then you know, great start in iowa, new hampshire for donald trump and things changed. so obviously that could change. >> could change. the other thing i will say is this. jeb never really matched up well with trump or even hillary in those battleground states. right? remember, he didn't have like this middle working class appeal. biden does have that. you got to give him that. it's no doubt that's where he's made his career. you know, he counters trump on a lot of that. also, i will tell you, i keep hearing, i get these twitter messages o he's old. he's not that much older than trump. neil: he's 76. >> trump is 73. looks like he's in good shape. listen, i'm not saying he's going to get through.

getting through this is going to be like hell. this is the gauntlet. bernie sanders, warren, everybody is going to be attacking him as these debates. it's going to be very difficult but if he does get through it, you know, if there's nobody that matches up better than trump in those states and those states will probably pick the winner and remember, donald trump won those states by a combined something like, i don't know, 80,000 votes. neil: 72,000 votes. >> i mean, it's not -- you can see joe biden presidency if he gets through. again, big if. i will say this. the money guys are behind him. he talked about strengthening the middle class. he barely mentioned trump. also he wants to devote a lot of money to cancer research and also made the point about repairing our relationships with allies and it was a vague, kind of a backhanded attack on the tariffs, i think. trump has picked fights not just with china, bad actor, but with mexico and canada, who are our friends, and others. neil: but if it works and he gets what he wants. >> has he gotten what he wants? neil: i don't know. >> i'm just telling you what he

said. listen, chanos, a guy i've known for years, i barely know joe biden. neil: i'm just a country reporter. very good. >> i just came back from the country, by the way. neil: i'm so happy. >> beautiful. it was like, you know, i love not being bothered by people. i'm mobbed everywhere i go generally except for this place where it was just me. neil: you have anger issues here. >> what's that? neil: you have anger issues. >> i heard i burnt bridges and i can't go on certain shows. neil: really? what are you doing here? >> i don't know. i haven't burned your bridge yet? neil: all right. charlie gasparino, he's back. we got a lot going on. the acting defense secretary, patrick shanahan, that's where it stops, acting, because he's going to leave. this was rumored for awhile. maybe the suddenness of the

timing is in question, but the fact is, he is not going to be the next defense secretary of the united states. more after this.

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one of the purposes of my visit today was to make sure that we were coordinated. the responsibility for diplomacy, achieving the strategic outcomes president trump has set forth falls on all of us but the state department has the first oar in the water on that but we can't do that without making sure that we have the capability to respond if iran makes a bad decision. if it makes a decision to go after an american or an american interest. neil: all right. what is he saying there, the secretary of state laying out possible moves we might make as iran ups the ante in the middle east and we up the ante in response. we have already committed 1,000 additional troops to the region. former deputy national security adviser to dick cheney, on if a full scale regional conflict is avoidable at this point. what do you think? >> i think it's avoidable but of course, the driving factor in

all of this really for the last 40 years has been iran. whether it's been indirectly through proxy wars from the time of the hostages to the present, they have been in a cold war or a hot war indirectly with us. this is part of that same piece. i think it's responsible for the secretary of state and the president and secretary of defense to be moving materiel into the region. we have allies directly under threat, whether it be israel or others in the region and the secretary is correct that if you have those forces in the area, perhaps it increases your diplomatic position for negotiations, but i don't think it really serves anyone's interest to be advocating attack or war. at the same time, the president of the united states can't be seen as weak and unreliable as an ally if iran keeps picking off commercial vessels as it's been doing recently. neil: it's been avoiding contact with us directly, our vessels, our tankers. maybe that would just be the luck of the draw. but all bets are off if it does, right? >> no, we don't have a choice, if we have direct american

casualties but really, if there's a direct hit on an allied force, any kind of significant casualty rate among allies, our hand really is forced. we have to honor our alliances. it's part of our collective self-defense that we are able to keep the world safer. that really puts us in a bind. no one can really question the president is hot for another regime change target that he campaigned against that, not what he seeks, but we can't allow iran to willy-nilly keep plucking away targets and disrupting markets. neil: you touched on it, we are always sucked into things we don't want to be sucked into, whether it's this president who has steadfastly said we got knee-deep and spent trillions on wars that shouldn't have been, you know, his predecessor, barack obama said the police state days are over. george bush before 9/11 was echoing the same sentiment. but invariably they are all sucked in. >> it can happen.

history has a way of driving beyond the narrative of the beltway or the best-laid plans of any campaign. i will never forget being part of the advisory team for bush-cheney in 2000. lots of great ideas and 9/11 literally changed everything. that happens over and over. there's no question on that front. at the same time, the best inoculation against that is being ready and i think that we do have a fairly strong secretary of state trying to marshal diplomacy in the region roughly in the right direction. it's just hard. neil: you're right. good chatting. thank you. >> thank you. neil: the president plans to meet with china's xi jinping at the g20 so that meeting is on. they had a nice phone call as well. could the u.s. be targeting china drone maker dji in the process? connell mcshane is in china with an exclusive look behind the scenes there. connell? reporter: the department of homeland security recently put a memo out warning that drones that are made here in china potentially could be collecting data and sending it back to mainland china. now, when you think about the drone business, the company at the forefront is dji.

it wasn't mentioned, companies weren't mentioned specifically in the memo, but this is the world's largest drone company that many until recently didn't even know it was chinese. its headquartered here and dji took us on a tour of the showroom and demonstrated some of its latest and greatest all while emphasizing that your data is not their business. with over 14,000 employees, dji says its purpose really is pretty simple, just trying to innovate as quickly as possible. >> we really consider ourselves a global company. we feel that our technology and its applications is relevant everywhere and it's really our mission to work as broadly as we can to really realize the potential of this technology for everywhere that we can. it's just an area where we have seen a tremendous amount of growth. since we got [ inaudible ] i think we have seen roughly about a 500% increase in adoption and frankly, a lot of the way this starts is that someone will own a drone privately and then he

will also be, say, a part-time firefighter and then bring it to his workplace and hey, guys, this has been incredibly useful tool for us. it's having a real impact. today, we have had something like over 240 lives saved specifically with drones. >> the drone business, you think about drones for personal use or maybe for shooting video but the dji officials we spoke to say search and rescue, that's really a growing part of their business. back to you. neil: connell mcshane, in china right now. you might be noticing the markets are having heavy advance on optimism that trade talks will ensue. one sect orthat's benefiting is the semiconductor or chip arena. if you just look at the instant beneficiaries, they include the vector high tech etf semiconductor fund with components like micron technologies and nvidia, all up smartly anywhere from 4% to 6%. this is an industry that was thought to be under duress, especially given broadcom saying

its exposure to huawei had stunted business there, was going to make take about consist 2 billion worth of hits from that and the whole industry followed. less so today. let's get the read from paul dietrich on where we go from there. paul, i don't know which is the more realistic view of what's actually going on. the selloff we had in this arena a little more than 24 hours ago or the comeback now. what do you think? >> i think the comeback may have some legs. yesterday i talked to one of our trade negotiators here in washington, d.c. and he said the outline of a compromise has pretty much been put into place for president trump and president xi at the summit meeting later next week and that compromise is the chinese will agree to the tough enforcement provisions that they backed away from a month ago and that we

would back away from a blanket ban on huawei products as well as other tariffs which were to remain in place after the agreement was signed. and that that compromise would allow both trump and xi to save face and to come to some sort of agreement. but truth is that we can't really develop a first class 5g system in the united states without huawei. they own five of the key patents that make 5g work. most telecom analysts will tell you they use a lot of our chips and that's why the chips are doing well today, the chip stocks. but most people think that a lot of the products that they sell, you know, anybody can look at them and see that there's no way that china can be spying or, you know, pieces of metal that have nothing going back to china.

however, i'm told that there will be a provision within the trade agreement that will allow the united states on a product by product basis to determine and ban any products that it thinks that huawei could use to spy on the united states or affect the security of the telecom system. neil: you know what's interesting, maybe it wasn't just, you know, happenstance remark when the president said huawei could, in fact, be part of these negotiations. that did change the tone and tenor of the so-called talks or what was going on behind the scenes because to your point, i can think of nothing else that might have gotten the chinese to the table but if you want to kalt call it a concession. >> evidently this compromise has been in the works for a few weeks. there you have it. neil: you were on it. you were on it. thank you very much. good seeing you again.

it is a crucial concession on our part to keep the deal going. that's obviously triggered this talk maybe a deal could be had, maybe not as soon as the g20 summit in osaka in less than a couple weeks, but soon. the president meanwhile is threatening to deport millions of illegals here. can he do that? after this. at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪

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neil: argentina is not ruling out a cyberattack for that massive power outage. jackie deangelis with the details. reporter: good afternoon. restorations are now 100% in argentina according to the energy ministry. this after that massive blackout over the weekend, an unprecedented power failure that hit tens of millions of people.

argentina's energy secretary said that nothing has been ruled out as a possible cause but a cyberattack isn't being considered at this time. authorities also saying the investigations to get to the root of the problem could take about two weeks to conclude. the incident does raise some major questions about the stability of south america's power grid. reportedly in a state of disrepair, needing reinvestment and rebuilding. the background on that is that president macree of argentina who came into power in 2015 promised to address some of these issues. he's being heavily criticized for the incident over the weekend. remember, argentina also battling an economic crisis of its own, inflation, currency devaluation as well as policy changes to promote austerity, they have caused volatility in that country. the irony here is that he tweeted this month about changes, saying quote, from darkness to exporting energy, end quote. so his critics, they are jumping all over this ahead of the elections in october. neil: jackie, thank you very

much. to her point, this also affected the likes of uruguay, chile and brazil. it was on and on. meantime, there's a report out on bloomberg that the white house was seriously exploring the possibility of demoting federal reserve chairman jerome powell. in other words, they quickly came to the conclusion we can't fire the guy, can we just move him to other jobs. cook was considered. no, it wasn't. anyway, it never came to be but that begs an issue i wanted to raise with the judge andrew napolitano. can they do that? >> they can only do it for cause, which would mean behavior akin to criminal or the utter failure to do his job. neil: not disliking the guy. >> correct. i'll tell you what is not cause, failure to comply with presidential wishes on interest rates. that is definitely not cause. he's been confirmed by the senate. the president can't just manipulate him around the way he may want to be. i think the president regrets appointing chairman powell. neil: clearly. >> yeah. that's kind of obvious from what

he said. i think he prefers somebody who shares his views about, may i, artificially low interest rates. but that's not what he has in jay powell. he has somebody who is an independent thinker and quite frankly, he's stuck with him. neil: normally what they hope to do, sort of make life so uncomfortable, the president, i may have well lost his support, i may as well resign but he doesn't have to. >> no, he doesn't have to. can they maneuver him around and make somebody else the chair and push him down, no. neil: let me switch gears on this deportation plan the president has. there is no plan. we just know he wants to deport we are told millions. when i heard that i thought surely we got this wrong. those are some of the things that are being advanced. is that even possible? >> if he is talking about people who have been adjudicated as deportable and disappeared, he can deport them. they have exhausted their due process rights so they have no right to a trial, no right to be here. they can be picked up off the

street, it will be very harmful to their families because some are hard-working people even though they are here illegally and have spouses and children, they can be picked up and deported immediately, if they have been adjudicated deportable. if they have not been, then they can be picked up off the street and incarcerated until they have those hearings. i think the president is talking about people who have already been adjudicated deportable, in which case he's absolutely within his right to do it. now, it's never been done. neil: a million people or more? >> i don't know what those numbers are. a million seems awfully large and unmanageable for the government to do. but there are clearly several hundred thousand who have been adjudicated deportable, never showed up for a deportation. neil: right. i guess it's over a two or three-month window, we got 170,000 we were deporting but this would be certainly unwieldy because you are combining a lot of things at the same time. >> yes. i think the president intentionally wants to make a

big show of this in order to demonstrate the steadfastness with which he's going to pursue this immigration problem. but if he limits it to the people who have been adjudicated deportable he's within his rights to do so. neil: i would like to switch gears a tad more. the president is commending the mexicans for what they are doing on their southern border and reminding folks, those who doubted using tariffs, you know, on a non-trade issue, look at the results i'm getting. a lot of people have seized on that, saying all right, it's open season on using tariffs to get what you want as president, and you know, some republicans have reminded the president a democratic president comes in, wants to force climate change issues, can use the same hammer to get countries to do their bidding. what do you think of that? >> i'm sorry to say the answer to that is probably yes. the president's novel use of extraordinary presidential power, not only he's gotten away with it but gotten away with it in a good sense from his

respect, will probably be used by his successors. can i tell you, i think congress has given presidents too much power under the constitution. they do it in times when the president's of the same party as congress and they trust the person, then somebody else comes in and they mistrust them. so where it goes -- neil: but then the precedent is made that this president did it to extract concessions. >> correct. there's really nobody that can challenge this in court. who is going to challenge it? the mexican government? they agreed. so there's no end to this unless congress enacts legislation, probably over a presidential veto, to restrain presidential power or to limit tariffs just to economic issues. neil: all right. >> on the other hand, the president would say hey, i accomplished a good thing and i should be praised for it. neil: look at the end. >> there you go. neil: thank you, judge, very, very much. all right. we have a lot more coming up, including some potential bearish signs here. but again, if you are a

contrarian, those bearish signs might actually be good for the market to continue doing what it's doing. something called a contrarian theory in investing, that if everyone is worried about something, it's actually a bullish signal. it gets confusing, but this is my world. the judge's world is the legal stuff. this is my nerdy world. you are invited back in after this. the latest innovation from xfinity

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neil: all right. republicans are saying to go slow on this but the president is still vowing a new health care plan in the coming months, whether they go along with him or not, thinks it's crucial for their party's prospects in the next election. in fact, they are holding hearings on this very issue. fox business's hillary vaughn in washington with more on that. hey, hillary. reporter: well, the president says that health care will be a key part of his campaign, but in the meantime, congress is getting to work. they are looking at a piecemeal approach to address some problems that patients have with the health care system today. lower health care costs act right now that's being reviewed by a senate subcommittee does address some issues, including rising prescription drug costs, surprise medical billing, it would make patient care and doctor meetups online more accessible and also address the issue of vaccines but some senators say the government really should not have to fix

this problem. they say the free market, if it was operating as it is supposed to, should be fixing these problems. >> we shouldn't need 14 proposals from one side of the aisle, 16 from this side, to be fixing what's 18% of our gdp. if it was any other part of our gdp, competition and transparency would have gotten rid of the whole mess. reporter: lawmakers say this bill is the best way to avoid launching into a medicare for all health care system, but witnesses on the panel today had some disagreement about that. some say forcing hospitals to accept medicare prices is in effect medicare for all. >> anything on medicare rates i think is a mistake. secondly, there's no difference between that and medicare for all, which was just described earlier, which we have real concerns about. >> if you think medicare's too low, and that's completely fine with me, then it doesn't mean you can't use medicare, at least

in concept. you could say medicare, heck, medicare times two. medicare times three. whatever number you think is appropriate. reporter: the committee chairman senator lamar alexander says he hopes the senate can actually vote on this proposal in july. neil? neil: thank you very much, hillary vaughn. in the meantime, what do you think of this, is it a trend indicator. the new bank of america merrill lynch survey says investor bearishness is at its highest since the financial crisis. normally you have a large cash position, you are getting ready for something, usually building up a defense so you are not exactly bullish. well, there's a contrarian view on that, that that could be a bullish sign. that not everyone is gung-ho on this market. let's get the read from hal lambert who is helping finance the big campaign going on today. it is interesting, if you buy the contrarian view, which so many people are piling up so much cash, so worried about something, that's a good thing.

what do you think? >> oh, absolutely. that's very much always a good thing. you know, we have had a wall of worry for about ten years now in the market. so this isn't actually new. people have been defensive ever since the collapse of 2008 where they had the economic problems back then. people have been nervous. they have been nervous, a lot of people don't trust the stock market still. i still think we've got a ways to go here because of the contrarian view. neil: they also look at this survey on global growth expectations have deteriorated, collapsed is the way the report worded it. so there's a lot of concern that whatever we're doing, the rest of the world isn't doing it, and that could be a problem. >> well, the united states certainly is the strongest economy globally. as far as big developed world market economy, the united states is where everybody needs to be. that's where the money has been flowing. you have been seeing it come in in our treasury market, in our stock market, because simply, we are the best place to invest right now. i think that's another reason

why you are seeing the markets continue to go higher, even though you've got this nervousness out there by investors and in fact, i have had investors that have reduced positions. some of them did it last year as the markets rallied. some have done it this year. so it's happening, it definitely is happening, but money continues to flow into the equity markets here in the united states. look, president trump launching his campaign today officially, and i would say this is probably the best economic prosperity we have ever seen in the history of the country for a re-elect launch of a presidential campaign. we are in a very strong position. i know there's things out there that people are looking at, there's some weakness happening globally, there's some slowdown here but i think chairman powell is probably going to be on top of this and cut rates, so that's another reason the markets feel comfortable. neil: i know you are organizing this big event tonight for the president. he's going to crow about the economy. he should. if it were the opposite, everyone would be pointing fingers at him so i get that. but are you surprised as the guy that's raising money and trying to help him out that he isn't getting more of a tip of the hat from voters? it's still early, these polls are still way early, i keep

stressing that, but you would think in this environment, in what he's doing, he would be up 10 or more points. what do you think? >> well, i know that's the case with the polling but it certainly doesn't show out here. this is an amazing -- we are out here in orlando, we are outside right now. it's been pouring down rain. no one has left. there are thousands of people here. it's basically like a rock concert. it's like a festival. i have never seen anything like this as far as a political campaign. it's really unbelievable. i know there will be coverage at other times tonight but it's pretty amazing out here. i think there's a lot of enthusiasm in the market. i think there's a lot of enthusiasm for voters. they may not be showing it up in the polling right now but you know, right now, president trump is in a very strong position with his re-elect. neil: if i can tap your financial skill set here, it is a little weird, stocks advancing but interest rates collapsing. and maybe stocks advancing on the prospect for a china deal, but if we get one, that obviously minimizes the need for the federal reserve to come in and cut rates, yet interest

rates are dropping. so which is right? >> well, i think that's money flows coming into our treasury market from overseas. i think that's a big part of this. you are at negative interest rates in a lot of the world. so we are still the best place, if you want -- if you want interest -- if you want to earn interest and you want safety, united states treasury is where people are going. i think that's a big part of why rates are dropping. then you've got powell, i think he's going to probably wait and see if we get a china deal, and i don't know that he's going to cut right now, but i think we will see if we get one. i'm still one of those guys, i said this before to you, i don't think we are going to get one right away and we may not get one before 2020. we will see what happens there and if that affects the market negatively. right now, everybody is back on with risk. neil: indeed they are. thank you. stay dry, or try to. former ted cruz national finance chair helping out the president in that regard. in this capacity right now. this interest rate situation is kind of interesting here. the expectations are with the federal reserve wrapping up this two-day meeting tomorrow, it

might not move on rates now but it will almost assuredly move next month. i don't think that is a given, especially if in that interim we do get a trade deal. again, the expectations are that certainly this is not an environment we have to worry about inflation. so you can have bonds going up as a conservative flight to quality, even as stocks are going up in a not so conservative flight to quality. that and the latest on boeing. it got some big plane orders today. who said that its business was drying up? after this. in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together. ♪ ♪ heannouncer: more details incoming involving

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neil: i buy this rally? billionaire investor jeffrey gundlach believes recession is coming around the corner. he see as slowdown, a significant one that will wallop stocks. my guest tomorrow on "coast to coast." here is charles payne. charles: i'm charles payne this is "making money." the initial part of today's move, a sign central banks around the world will print money. stocks went into overdrive on news president trump will have extended meeting with china's president xi at the g20 summit. he said trade talks will resume before the meeting, giving hope in the face, really this will be more than just a face to mace meeting of pleasantries. plus the president says i.c.e. will begin removing millions of illegal aliens next week who came into our country illegally. this as aoc says the u.s. is running concentration camps on our southern border and