i think that would make sense considering the government is behind all the student loans. >> educating kids is important, i think. >> some basics here. david: i'm with john, give it to congress. that does it for "bulls and bears." liz: we've have got you covered on iran shooting down a u.s. drone and a clear message it's ready for war. the president said iran made a very big mistake. we have senator mitch mcconnell saying calm down. the white house is engaged in quote measured responses. what the u.s. response could be. we have top experts on what's going on inside iran. we are going to tell you what stopped the market and the oil pits from going hayway. the -- haywire.

the dominican republic calling it fake news, the controversy of at least 11 people dead and dozens getting seriously ill after visiting the dominican republic. we dig into what's going on and what the fbi is doing by the. calls are growing in congress that the u.s. put mutt out a travel advisory safety warning right now for americans heading there. also tonight. a former top u.s. prosecutor weighing in on brand-new fbi emails revealing an unusually strange and cozy relationship between the "new york times" and the fbi during the trump-russia probe. critics are saying this is way out of the line for the "new york times" and what it did. it's a level of familiarity between these two organizations that few on the outside knew before. it included sharing information about trump team activity with

the fbi with no indication a story was coming on that. the fbi emails show a lot about what the "times" was doing and much more. i'm elizabeth macdonald. "the evening edit" starts right now. let's get to edward lawrence in washington with the latest. reporter: president trump calling a meeting of his cabinet as well as congressional leaders to talk about response to iran shooting down a drone in the middle east. president trump: i have a feeling -- i may be wrong, and i may be right -- but i'm right a do the -- i have a feeling it was a mistake made by somebody who shouldn't have been doing what they did.

i find it hard to believe it was intentional if you want to know the truth. could it have been someone loose and stupid that did it. reporter: the pentagon releasing video of the missile that shot count navy drone. the incident increased tensions around the world. all this is happening as the canadian prime minister justin trudeau was meeting with the president to push for ratification of the usmca. the president said he wanted to meet with nancy pelosi address her questions. he believes workers are protected in this and it's good for the middle class. he says he wants to tell her to ratify and put this up for a vote. >> we had a frank and positive conversation about the path forward to creating a better opportunities for citizens and workers on both sides our border. i fully respect the

conversations and discussions going on in the ratification process. it's offered to shall helpful in re-responding or allaying certain fears. reporter: canada had the second reading of their bill for ratification. but their house went on vacation. the ambassador from canada to the united states said the prime minister would call a special session to ratify this agreement if the u.s. congress takes up ratification of usmca in july. mexico has already ratified this agreement. the prime minister says he believes this agreement is good as wrins and they are -- as written and they are reluctant to go back and renegotiate. liz: the markets pulled back after president trump raised a threat of a strike in iran. the president said iran made a

big mistake in downing the drone. and he said you will find out what the' reaction would be. can the trump administration respond without talking to congress? the president already said he doesn't want war. how should the u.s. respond here? >> good to be with you, liz. if you go back, we have been there before. in april of 1988 we had an american warship that was struck by an iranian mine. the reagan administration made a decision four days later to start an operation called preying man is. they went after' military assets, frigates and oil platforms. there was no war that came from that. liz: they did retaliate with

strikes on marine bases right? >> that was prior to that. you bring up a good point. it's been 40 years we have been enduring these belligerent attacks on our assets. you go back to the beruit bombings, 234. even the iraq operations, iran was responsible for 24% of the death and maiming of our soldiers in the theater of operation. we have to take action against iran because if we don't, we just embolden them. liz: iran warned for months if it is blocked from shipping its oil from the strait of hormuz, others might face consequences. we lost a drone, that's different from suffering an attack that killed or injured military personnel.

senator lindsey graham suggests that. >> i think what you want to do is attack the capability that enables iran to conduct these attacks. you want to attack their capability that allows them to go out and lay mines. you want to attack the capability of attack our surface-to-air systems that took down our drone. this was in international waters. we have to let them understand those times of actions will not be allowed. liz: nancy pelosi said that, too. international waters. we had half a dozen strikes on tankers. there is no confirmation that iran is behind the missile strike in iraq.

>> it's sad that we have allies that for whatever reason they don't understand iran is the number one state sponsor of islamic terrorism. the quds force, hezbollah. and islamic jihad. if we dismiss or show our reticence in confronting iran, then we see their expansion into yemen and iraq and syria and lebanon. liz: we had a top u.s. official testifying that hezbollah is broke it's literally asking for money from iranians in grocery stores via piggy banks. we know iran is in a deep recession. the economy is shrinking. inflation is double digits. the majority of its youth are unemployed. but here is what's working in the u.s. favor.

the u.s. boom in oil. should the democrats be supporting that? the u.s. pumping out a record 21 million plus barrels a day. should the democrats be behind that? >> they should, but you have representative alexandria ocasio-cortez who wants to stop our oil and natural gas industry that has aloud us to be energy independent and we are a net he can porter now. that's the way to leverage your economic power against iran. we are not sending them billions of dollars like the obama administration did. and we have to put the squeeze on the capabilities we have seen them do in the last couple weeks. liz: the s & p 500 breaking record. the markets did pretty well today. gerri willis is at the big board. >> it was a great day in the

markets. the s & p 500 up 27 points. the dow also finishing at record levels. the nasdaq up 64. the leading sector was energy. that meant it was a great day to launch a new stock, slack coming to market today. it's a cloud software company in what was the email space. their shares went up nearly 50 percent. up at the nasdaq it was grocery outlets, they are extreme scoirnt in the grocery store space. their shares were up 30%. we'll reconvene tomorrow and see if we can keep up the pace. liz: get ready fort trump white

house. they will celebrate the longest record of expansion in u.s. history. can the president capitalize on that in 2020? later in the show, the dominican republic says it's fake news about 11 americans now dead under questionable circumstances after vacationing in the dominican republic. dozens more getting really sick. what you need to know about this and what the fbi might be doing about it. that story next. all money managers might seem the same, but some give their clients cookie cutter portfolios. fisher investments tailors portfolios to your goals and needs. some only call when they have something to sell. fisher calls regularly so you stay informed.

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>> there seems to be no end in sight over u.s. and china. apple reportedly considering using big chunks of its iphone production out of china. maybe nearly a third of its production capacity to go elsewhere in asia. connell mcshane is in beijing. reporter: we spent a lot of time check in with company executives and government officials. but today we went to the people

of china. and here is some of what we found in terms of their expectations for the g-20 meeting. >> are you optimistic? do you think there will be an agreement between the countries? do you think it's important to have an agreement with the united states? >> because the united states is the number one largest for the economy. and china is number two. if they are fighting each other, we'll be damaged global trading. reporter: he says he works in the import-export business. people like that are starting to see the impact of the trade war in their lives and work. but people on the streets childa are telling us they are more worried about the future. a number of students still love to come and study in the united states, but they are worried if the tensions they remain high if

they will be able to get a visa. what we didn't hear was much anti-american sentiment. if anything, the people in beijing expressed admiration for america and apple products. apple has been in the news with regards to china a lot. and sales have been falling in china. the company says tariffs are hurting and it's considering moving some of its production outside china, its manufacturing. but the people we spoke to say they like the products. what they don't like in the case of apple is the price. so when you talk to someone using a huawei phone, it's not necessarily because some kind of national sentiment or something like that, it's usually because they are getting a better deal. a fascinating look inside chain today all week long. hope you enjoyed it. liz: next month will mark the

longest period of economic expansion in the u.s. history. how will the president cap tallize on it for 2020? will it last? and how can the democrats seriously undercut that? 's your take on all that. >> every second term president runs on his record. in his opening gambit yesterday he talked about his record. but he has to be careful about reliving the past too much and instead sort of put on the table with's going to do in the future in is a lot to be done. he's got an unfinished trade agenda as we just heard from beijing. he has an unfinished immigration problem specifically related to the dreamers. he did make an effort with the dreamers. the democrats blocked him a lot. but he has to elevate that and

show he wants to solve it. >> trump is campaigning as an outsider. i hear what you are saying. some of this orlando rally sounded like a retread. he knows what appeals to the rally-goers. people take that out of context. he was appealing to the audience there. but here's the thing. d.c., which i covered for 35 years. it's like jumping into a pool of life hair dryers. what the president has gotten done so far is pretty great. if you hate him or love him either way you can't deny what he accomplished. >> i think he's running on his record and has a lot to show for that. particularly the unemployment rate being on historic lows. however, you have to look at what people are going to be thinking about when they go to the polls.

remember he didn't win the popular vote. so he didn't win in a landslide against hillary. a lot of people were not excited about hillary. so if there is a better candidate, the opposition is also going to be riled up. >> but they are walter mondale democrats. >> a lot of people don't like him personally. that will generate a lot of -- they will have to live with the results. but that will generate a lot of get out the vote for democrats. for example, healthcare. i'm not blaming him, but he should put something on the table that excites people about healthcare. liz: he's signed an executive order to help pricing. >> that's a big step. but somehow get all those people who are self-employed who are not protected the way those of us are who work for big corporations.

i think he can offer a little bit more forward looking. and he didn't do that the other night. he'll between now and next year. liz: how can the democrats run at undercutting the economy. >> now we are seeing the pushback. it's not all about the economy. there are values. of course, we have player scan value ofs. but how can they campaign against a good economy. >> they will run on the inequality thing. it's the most of insidious use of policy, and it's out there. but it's very effective. it's used all over latin america. it's a very socialist message. somehow they are trying to put out the message this is about fairness which of course it isn't. income inequality is not about fairness. but they will use that. and i think that's probably their greatest edge. liz: i think that's overstating it. the government cannot step in

and raise everybody's income without taking more in taxes. it's like a conclusion is where the mind comes to rest. if they do that, they will lose and lose big. >> i totally agree about it being a dishonest argument but i don't agree it's so weak. liz: it's weak. >> i hope you are right. liz: i am because i have the stats. what they don't includes all the government help. we got go, go ahead, quickly. >> it, not the gap between the rich and poor it's the level of standard of living. as poor people have a better standard of living, that's what matters, not the gaps. liz: the number of americans who died under mysterious

circumstances has risen again. the dominican republic says it's fake news. the political fallout over the showdown with iran. we break down that fight. we'll get a scorecard how to track it. that's coming up. stay here. y pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪

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liz: the fbi and congress taking action investigating the deaths of at least nine americans who died in the dominican republic after staying in hotels. jeff paul is in santo domingo. reporter: the woman who died, died after she returned home after vacationing in the dominican republic. when we spoke with a spokesperson.

all that's happening at the fbi is taking samples from a mini bar at one of the resorts where a tourist died. the state department says their colleagues are helping the dominican authorities with toxicology tests. the tests by local test inspectors show negative results when check the pool and food and other areas. but it doesn't seem to be sitting too well with some tourists. business owners say it feels like fewer people are vacationing here. >> i have a hundred and some employees here and they are worried. they wonder what my opinion is. my opinion is what i just told you. of course, we have to find out what happened to the cases that are a little bit iffy. reporter: the this dominican

house rep says he's traveling to the dominican republic on july 1. one other congressman has formally written to the fbi and the state department and asking them to be faster with updating the story and to reassess the travel advisory currently in place. liz: let's get topnotch reaction from our all-star panel. dr. jeannette michau. >> i have a few suspicions. i think about methanol alcohol boy poisoning if there was contaminated ask alcohol. i think about pesticide or cyanide or carbon monoxide.

but two people died of the exact same thing. pulmonary edema. they had trouble breathing. what usually causes it. it could be toxins, trauma, viruses, bacterial, it could be something they ingested or inhaled. it could be tainted alcohol. we need the toxicology reports. liz: the fbi seems to be looking at the mini bars. danny, merks thol alcohol is endemic. when you ingest fake alcohol, your body metabolizes it as formaldehyde. could knot that be responsible for all -- could that be responsible for all these

deaths? >> it could. and it could be cleaning products. one thing that concerns me. this all you can eat. you pay one price and you get alcohol and food and whatever. there is a tendency to try and cut prices. i work in one country where 90% of the alcohol in that country is counterfeit. it tells me this is something that need to be examined. also the fbi will be looking at record. where did you order the alcohol from? it's not just looking at the items, it's looking at the record of where they made their purchases and do a lot of interviews and going backward from that. liz: that's a great point danny just made. how do you have treat this? this could be bootleg fake alcohol made in somebody's backyard. >> it's very difficult. that's why we need

investigations. that's why there is fear to travel to that country. liz: what do you do if you ingest this? >> you want to seek help right away. your life can be saved. seek medical care right away. it could save your life. liz: danny, congress has to step in here, don't you think? >> no. liz: i don't think the american people understand what's going on in the region. >> they are not an investigative or criminal agency. this is for professional investigators to solve this case it's solvable. liz: coming up, the senate put the kibosh on the trump administration's plan to sell billions of dollars of arms to saudi arabia.

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of the aisle thought president trump went around them, using executive authority to approve the arms sales. there was one vote that was particularly interesting. 7 republican senator voted with all democrats. susan collins, lindsey graham, mike lee of utah. jerry moran, lisa murkowski, rand tall and todd young. dianne feinstein had this statement as to why this was wrong and they wanted to block the arms sales. quote i cannot sell arms to a nation that murdered a journalist indiscriminately, kills civilians in yemen and tortures women's rights advocates. those responsible must be held accountable. the house of representatives has

not yet moved a similar resolution. we are told they would do that at some point, then the senate and the house would be in alignment. but there is not a veto proof margin. they would not be able to override president trump. he vetoed two pieces of legislation already. the senate majority leader mitch mcconnell says the resolution to block the arms sales has unintended consequences. he says when you are dealing with saudi arabia, it's not black and white. liz: we have former vice president joe biden saying president trump upped the odds of a confrontation with iran by walk away. let's bring in u.s. army retired

lieutenant colonel daniel davis. >> i think it's time to sunset that 2001aumf. it's long since past its utility. if there is any situation that warrants the use of military force. i applaud them doing their jobs. >> trump could use -- i'm not saying he'll or speculating here. he could use the 9/11 era law to go after iran without going to congress. is that the idea? >> that's what many in the administration are saying. i don't believe there is a shred of justification. that was specifically about people who had something to do with 9/11. liz: you are hearing word from the administration that al qaeda is working with iran. i understand what you are saying. you are making a good point there. your reaction to senator tim

kaine, rand paul and others sending a letter saying they are concerned about the chances of a military conflict with iran. >> i think the concerns are valid. the maximum pressure campaign is supposed to be designed to get a positive outcome for the united states. but the way we are doing it, it puts so much pressure it doesn't give us a chance to have a good outcome and makes it more probable iran will continue to do these things because there is no offramp and diplomatic chance for them to do the thing they are doing. >> iran has been an issue and it's been brutalizing its own people itment the world's top executioner of teenagers. assaults on women from the regime are noted by human rights watch and amnesty international. iran has been a problem for decade. it's been financing terror around the world. what else do you do?

>> who would ever defend anything iran does? they have done all kind of horrible things like you pointed out. but they have been successfully deterred for 40 years. if we use military force and it spawns a war, that would be so bad for our own interests, our own security, it would take a bad situation and make it worse. our objective should be to keep war off the table so american interests continue to be able to prosper. li colonel, thank you for -- liz: colonel, thank you for coming in. two suspect under arrest in connection with the seizure of a billion dollars worth of cocaine in south philly. authorities are saying this is a fire engine red flag to congress that drug cartel are breaking in not just to the south, but big time through ports in the north. that story coming up. judicial watch uncovering fbi

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liz: we have shock new numbers on the crush of illegal immigrants at the border. families from 52 different countries illegally trying to cross and 100,000 illegals did sneak in and got away. reporter: the border patrol chief testifying that migrants from 52 different countries illegally crossed the southern border into the u.s. she described her agency as overwhelmed on a daily basis by the growing wave of migrants. in the last two weeks 4,700 people from african nations were apprehended in the del rio sector alone. she testified her agency had to move 40% to 60% of manpower away from the border to process and

care for 435,000 families and children who traveled across the border as the spike in migration continues. the biggest problem is handling large groups of 100 people arriving at once. some of the big groups are decoyed for smugglers, trying to attract the attention of border patrol agents. this comes as the white house called on congress and mexico to step up efforts to stem the tide of meyer gracious and tackle the human crisis. liz: 7 shipping containers. 33,000 pound of cocaine. a billion dollars worth in street value and a million dollars worth of meth found in suitcases in a washington state park near the canadian border. authorities say this is a clear

sign drug cartels are break into the north and not just the south. >> that's true. but the southern border is in a crisis in the collapse of our ability to stop 144,000 illegal crossing this month alone. but you are correct. i don't think our security on the northern border is anything to brag about either. >> switch gears, different stories. we have upstate new york administrative clerks standing up saying we are not going to follow this new york state law. they are saying we are not going to give illegal immigrants drivers licenses. what's your take on that. >> they are following federal law, it makes it harder to hire an illegal immigrants. it's illegal for them to get to work in this country it's illegal for them to get here in

the first place. why we are rewarding illegal behavior is beyond me. i am convinced they are devoted to an open borders policy. they deny it but everything they are advocating is making a mockery of the sovereignty of our nation's border. the american people have to decide whether they want a country or a vast international territory between canada and mexico because we can't enforce our borders and immigration laws, that's what we have become. liz: you are from the state of california, right? >> yes. liz: there is a push to give out driver's licenses or i.d. ads. what's your take on that? >> it's ridiculous. it rewarded illegal immigrants that are here thumbing their noses at our nation's immigration laws.

in the state of california they are automatically registering people to receive driver's licenses. they are supposed to make a distinction between legal and illegal immigrants but they are not. don't let that happen to the rest of the country. liz: we dig into brand-new fbi emails showing an unusually cozy relationship between the fbi and the "new york times" during the trump-russia investigation. all money managers might seem the same, but some give their clients cookie cutter portfolios. fisher investments tailors portfolios to your goals and needs. some only call when they have something to sell. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions

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brand-new never before seen fbi e-mails that were obtained by judicial watch reveal an unusually cozy relationship between the fbi and the "the new york times" during the trump-russia probe. let's go right at it with former federal prosecutor. i want your reaction. i'm going to read you this e-mail. it came from a "the new york times" report tore a top fbi public affairs official. that gentleman's name michael. schmitt's e-mail said mike, wanted to swag you on something. three of my colleagues are working on a story about the russian investigation. they're told that the russian

ambassador set up a meeting with curkushner. here's the thing, judicial watch says there's no independence occasion in the e-mails that the report i was working on a story. it was sharing information with the fbi. your take on this. >> it's really symptomatic of a bigger problem that comes back to comey, mccabe, strzok and page. there was an fbi culture in place at the leadership level -- i don't mean at the agent level, at the top levels where they were cozy with the press. where they were focusing more on how they would look and appear in front of the media than doing their actual job focusing on the corruption probes in our country's history. >> other fbi e-mails indicate that the times, the "the new york times" was giving the fbi a head's up, advanced notice about its stories. look at this.

april 10th, 2017 e-mail, this again comes from judicial watch, the e-mails were between fbi officials peter strzok, lisa page and other fbi officials. the subject line read, quote, "the new york times" last shot. the e-mail said the editing the near completion, we have one last shot to hear what the end result is. do you have time for a listening session. this seems to indicate, jim, that the "the new york times" was reading the content of their story to the fbi. this is an unusual cozy relationship. critics are saying jim, the "the new york times" is way out of line here. >> cozy is the right word. i have to tell you, i'm not sure i have a lot of wrath towards the times here. the media is going to take what they get. >> they're giving the story to the fbi before print. >> they're not doing it for free. they're getting something out of the relationship. and if you look at how comey had

a special employee who was designed to leak sensitive information to the "the new york times," if you look at mccabe's use of the press, lisa page, peter strzok, they're trying to benefit from it. >> i hate interrupting you. i've been doing this for 35 years i've been a journalist. i've never heard of a listening session where reporters read the content to an sergeant oi ore bureau you're supposed to be covering. they're supposed to be covering the fbi. not supposed to be aiding and abetting it. you don't read the con tept of f your story to the fbi before print. that feels way out of line and the "the new york times" should be called out on this. they're totally wrong if this is true. we have tried to reach out to if "the new yorthe "the new york t" haven't heard back. go ahead. >> it's coming from our backgrounds. you're focusing on the journalism part. i'm jaded and writing it off as typical behavior by them.

but to take a premier law enforcement agency and have people at the top that are determined to write kiz and tell books and go on "the view" and provide deep thoughts on their twitter accounts. that was a culture that was problematic at the exact wrong time when it comes to sensitive investigations in the united states. >> you heard this? i've heard this from fbi officials around the country that the d.c. bureau was a law unto itself, it set its own policy and followed its own rules inside the d.c. bureau. your take on that, jim. >> i lost you. >> should i repeat the question? >> sure, please. >> is the d.c. fbi bureau a law unto itself? i've heard that personally. >> i don't think it's the entire d.c. setting. there's a lot of employees in d.c. that set aside their politics that are professional law enforcement types. so i think it's a subset. i wouldn't say it's an entire culture in d.c. and it's a subset that's hopefully been cleaned out by the exposure over

the last few years. >> good to see you. we did reach out to the times for comment. we'll let you know if they respond. that was a jam-packed show. thank you so much for watching. "lou dobbs" is next right here on the fox business network. have a good evening. ♪ lou: good evening, everybody. what happens next. that's the question all around the world tonight after the iranian islamic revolutionary guard used a russian made surface to air mistoll shoot down a u.s. navy rq4a global hawk drone. when asked about what the u.s. response will be, president trump replied simply, quote, you'll find out. and a day after the mexican senate approved the usmca trade deal the president is talking trade today with canadian prime minister