swift. thanks for joining us, as always. see you back here tomorrow. same time? melissa: absolutely. "bulls & bears" starts right now. david: hi, everybody. some breaking news. facebook mailing facility in menlo park, california, where the fbi and haz/mat teams are now responding to reports of possible sarin gas found in its mailroom. facebook says a package was quote, deemed suspicious and all staff was evacuated from four different buildings. we will have more on this ongoing investigation soon. up here first, the u.s. economy in record territory as it enters the longest stretch of economic expansion ever in history. that as investors cheer a temporary trade truce with china but as long as tensions remain between the two world powers, is our record economic expansion at

risk? this is "bulls & bears." i'm david asman. joining me, heather zumarraga, kristina partsinevelos, and jonathan hoenig. a measure of u.s. manufacturing activity grew at the slowest pace on trade worries so is our economic expansion at risk? what do you think? >> i don't think our economic expansion is at risk, unless we have a full-blown trade war. right now, after the g20, it doesn't look like we will have a full-blown trade war. i know we still need details on intellectual property theft, but the fact that we have at least paused tariffs in the short term is a good thing for the markets. that's why the markets were soaring today. >> economic expansion that's this long is always at risk of something ending it or nothing ending it. it doesn't go on forever, usually. i don't think this trade war ever was strong enough or big enough to derail an economy because -- partially because we basically got a stimulus plan in

the combination of tax cuts and increased spending in an already okay economy that made the economy even hotter, and that benefit is much bigger than what we have already seen in the trade negatives of this. now, could the tariff war blow up and include germany and other countries and go to much higher levels and cause a recession, definitely. but the current levels of tariffs that have been kicking around for about a year, although damaging to certain industries, are not enough to cause the -- >> this is not going away. the president even alluded to perhaps putting on new tariffs, not just even on china, on vietnam. i mean, there are reports he talked about tariffs on australia. look, whatever you think about the president, this is a cost, the cost to individual consumers, cost to businesses writ large. i think your point is spot on. when it comes down to everyone's individual portfolio, bull markets do not grow to the sky. given the fact it is so bullish, i think now's a great time not to jump out of the market but to pay down some of that consumer

debt. credit card debt has exploded during this expansion. while times are good, no matter what you think of the president, get your financial house in order. >> to add to that point, if you take tariffs out of the equation, look at some of the reports we are getting. the manufacturing report, the fed -- several fed banks, dallas and philly, warning, some warning signs. you also have the fact business confidence, there was a survey that came out not as high as we have seen. if you look at some of these other factors, maybe the question, how to answer your original question is the expansion may not -- may be growing at a decelerating rate because like you said, it's just been going on for so long. then you have this trade war. we don't even know the details of what's in there. we do not know if china will actually go ahead and buy agricultural -- david: it ended in an up day. we had triple digit gains but it was much higher, up at 290 at one point on the dow. but we have to remember, there are two phases to this economic recovery. there was the very slow, some

would say pathetically slow recovery, one of the worst recoveries we have ever had during the obama era because they raised taxes, increased regulations, got the government involved in all sorts of things, then there was the trump recovery from the recovery, which was an economic boom because he lowered tax rates and he dramatically lowered regulation. there were two different parts of this recovery, right? >> exactly. that's right. presidents don't control the economy but deregulation and tax cuts certainly help. i think some positive factors to look at aside from the manufacturing ism data we got is the fact that unemployment is still low. we have seven million job openings and wages are rising. those things have to be positive for some sort of expansion. i mean, i don't see a recession when we have full employment. david: more job openings than job seekers. that's extraordinary. >> there's no -- there's no arguing the fact this is a tremendous economy. i just think back to 10, 12 years ago when the economy was in terrible dire straits, of

course, in the midst of the global financial recession and all those consumer confidence numbers were at multi-year lows. of to be somewhat of a contrarian, i think, when it comes to the investor and i will borough borrow a line from warren buff etf. be greedy when others are fearful, be fearful when others are greedy. right now people are a little too greedy. >> if you look at constant tweets about the tariff war, it's the interest rate. the interest rate environment looks like recession is coming. investors don't think we will have robust growth for the next year or two. could you say that's because people aren't worried about the tariffs? i don't think that's what the drag is. we will have a global slowdown if bond investors are right that's what's going to happen. if they're wrong, rates will go back up and we will keep hitting record highs. david: finish your point. i want to switch gears. >> interest rates are just so low it may be forcing investors into stocks which can help at least continue the stock market expansion, because there's

nowhere else to go for yield or income with the ten-year around 2%. david: as part of the trade deal we were talking about, huawei's front and center. president trump kind of reversing course on huawei today, delaying restrictions and allowing u.s. companies to resume sales with the world's largest telecom equipment maker but many are still concerned about the threat the company poses. listen. >> i will continue to work with my colleagues and the administration to make sure that we are clear-eyed about the threat that huawei poses to the united states and to make it a priority to protect american businesses and our national security. david: so can the administration make the case to both democrats and republicans for its new huawei strategy? >> i'm amazed at marco rubio. what sound editing to get that. i mean, the president has all but admitted this is in effect a bargaining chip. i think it's frustrating because you have consumers who perhaps want to buy some of these products, businesses as well, and there's a lot of confusion whether or not this is actually

a security threat or not. i would like to see some proof if it is. david: we had, by the way, all of our intelligence chiefs, i think about a dozen of them, in front of congress, none of them felt comfortable having huawei, any part of our telecommunications system. that's a little bit of proof, no? >> it seems it's off the table for the near term. again, this is a bargaining chip. it could be on the table just as quickly as it was off. it seems like two weeks ago, the president said, seemed to imply this was a huge security threat for the country. >> i'm confused on why he flipped so easily. i would think you of all people would say here's the government, this is an excellent example of the government intervening saying we cannot do business with a company even though it is a company that's from china, intervening and on top of it, it's still on the entity list, u.s. entity list, so they can restrict sales of these products. i do believe it's more of a political play which there is the government role again. you are using a business as a political chip for your trade negotiation and you are trying

to cater right now to wisconsin, for example, pennsylvania, which trump only won by very small margin. let's cater to the farmers, guarantee them agricultural buys and then maybe they will vote for me. >> that's why i think this might be all about freedom and privacy and not necessarily about trade. this is just me speculating that perhaps that's why president trump and the administration separated the issue when he was dealing with the u.s. and china trade relations and negotiations, that if this is a national security threat, and about freedom and privacy, let's separate that. >> but then why get huawei involved in the first place? if you are that concerned about privacy, then you have to not give huawei up like that so easily. doesn't this make the united states or the president look weak or he's in a rush to get some type of deal? >> i think we will get some clarity and the president needs to make a statement on why he backtracked because just a week ago, we were urging our key allies in germany and britain

not to do business with huawei. germany and britain have both secured contracts with huawei and we threatened, we said don't do business with them. david: maybe the president was listening to jonathan all along. >> if it's a security threat, let's have a stephenson moment and say this is where the missiles are that guard cuba. david: we had that with the intel chiefs. go ahead, jonas. >> first of all, government globally, is a security threat. any government can be a security threat if they're not trustworthy government, is my point. as far as this company, they were just stealing a copy of the robot from t-mobile. it was basically a japanese robot anyway. doesn't seem like that big of an evidence story. they can do it, and it is a threat but so is any government intervening in its own companies' businesses to access other countries' telecommunications equipment.

david: everything is political these days. coming up, protests over hong kong's new extradition bill becoming violent with thousands swarming the legislature there. we will bring you the latest. first, tensions rises as iran violates a key limit on nuclear deal levels of enriched uranium. who tehran blames for the move and how world powers are reacting to the violation, next. brad, i've got an idea for a song. nationwide has this app. you can pay your bills, even start an auto claim. so what i was thinking... let me guess. ♪ start a claim right from your app. ♪ have you been looking in my notes? ♪

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david: iran is now admitting it has exceeded a key limitation on how much nuclear fuel is can possess under the terms of the 2015 nuclear deal. a limit which was intended to prevent tehran from developing nuclear weapons. iran's breach marks their first acknowledged violation of the deal which after all, the u.s. congress never ratified and which president trump ended. the white house releasing this statement in part. maximum pressure on the iranian regime will continue until its leaders alter their course of action. the regime must end its nuclear ambitions and its malign behavior. let's bring in american islamic forum for democracy president. thanks for coming in.

how should we respond to this? >> i think we need to continue the steady hand of continuing sanctions and now europe is going to finally allow their sanctions to kick back or snap back, and ultimately the world should realize that we were being held to blackmail, that ultimately the terror in yemen, in syria, the attack of ships, the sanctions -- the attempt by them to increase the oil prices, et cetera, were all simply belligerent acts that prove that they were a terror regime and i think today, if they really weren't about terrorism, they wouldn't exceed the 300 kilogram limit and it really shows that the entire nuclear deal was simply a lie as prime minister netanyahu said today. >> it's jonathan hoenig. thanks for being with us. iran has been at war with this country going back the 1979. you mentioned obama's iran deal. we can even think about the salmon rushdie debacle. is the president's attitude

towards north korea, another nuclear threat, devil's advocate, is that emboldening iran? is iran looking at our appeasement of north korea and think maybe it wouldn't hurt us to hang on and get that nuclear weapon, that will give us power with the u.s.? >> i think you're right in that appeasements elsewhere will have an impact on the way they view the trump administration but i would not think what's happening with north korea is appeasement. simply having a meeting, continuing maximum pressure on north korea, is not going to be interpreted as appeasement by simply a meeting. i think the president would welcome a meeting with the leadership of iran. we have actually imposed sanctions on the supreme leader and others which were not done before, so i think they are feeling as much pressure as they can and they are seeing the trump administration consistent in that policy with other countries around the world. >> kristina partsinevelos here. i'm curious, could this be used as more of a bargaining chip and exaggerated on iran's behalf because we don't know how much

they are stockpiling or the quantity of it? i know you can mix the quality as well. could they potentially be lying, seizing on this opportunity to scare everyone else? >> well, that's a great point because if they want -- you know, i think one of the best questions is why are they doing this. why are they showing their cards that it was a lie? i think it's because they want to drive europe to try to change president trump's approach, so they are trying to make europe more weak-kneed and i don't think that's going to work. already it's showing it's not going to work. in the end it's going to backfire and actually embolden the west to put more pressure on them and actually push them more into isolation. >> they didn't really violate anything since we left the agreement, right? this was sort of what they weren't supposed to do if we had an agreement, which we got rid of. is that true, are we going to be moving to a new deal like trump did with the nafta redo which was an improvement? or is that not even on the table

right now? >> i think many aspects of the deal have shown that we did not have the ability to do the inspections that we needed to, and ultimately now they are proving that they were able to ramp up their production even though they claimed to not have the centrifuges and other things they needed to do it quick lu but they are doing it pretty darned quickly. i think ultimately we will have to reboot it. if they come to the table and if they care about their people and don't want to bring war, ultimately i think that's what's going to happen over the next few months. >> obviously the u.s. does not want to engage in a conflict or war as well. if you broaden it out, what is the end game here? is it that the u.s. demand they stop funding terrorist groups? >> i think the end game is a secure region in which they don't threaten our allies, they don't threaten israel and saudi arabia, and we do not allow them to achieve nuclear armamentation. i think ultimately that's going to have to be a new deal completely and it's going to have to be the end of them driving the houthis, driving

assad and others into the region, attacks from our assets in iraq as they have done and also against ships. there are many parameters we can use as measures that we have achieved some pushback, if you will, or ability to contain them, but the end game is containment and the people of iran have focus. it's in their interest for the regime even to begin to come to the table because their economy is tanking and the people are speaking. contrary to the op-ed that ran in the "new york times" today which might as well have been written by the irgc, the people of iran are not with the regime. the people of iran are against them and the regime is cornered as a minority, not a majority as the "new york times" wants you to believe. david: quickly, when will we see some action? we saw the protests at the beginning of the obama administration which the obama administration did nothing to help support. are we likely to see that again, particularly as we rachet up the economic sanctions? >> absolutely. we are seeing it. we are just not hearing about it

as much as we should but it is on the streets in many of the cities sort of smoeld smolderin this. we are actually feeding the regime and allowing them to suppress the demonstrations which now have not been able to be done. that's why actually now they are getting a new life in the last six months they have never had before. they aren't screaming death to america. david: good to see you, zuhdi. thank you for coming in. meanwhile, a suspicious package at a facebook mail facility in california. haz/mat crew reportedly is on the scene. what is going on in menlo park? the latest coming up after this. my experience with usaa has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else?

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david: investigators are now looking into the possibility

that the nerve agent sarin was sent to a facebook mailing facility in menlo park, california. sarin is one of the most toxic nerve agents known to man. 26 times more deadly than cyanide. menlo park fire district saying no employees are showing any signs or symptoms according the a facebook statement, authorities evacuated four buildings and all but one have been cleared. for more on what we can expect, let's turn to retired nypd lieutenant darren porcher. how do you secure a facility like this after a possible sarin attack? >> it's very difficult. when i worked in the nypd right after 9/11, we had an exorbitantly high number of these potential attacks. we had a lot of letter bombs that were mailed out with powder, powdery substance, to that effect. what we did, we had a team we referred to as the hammer team, part of the emergency service unit, and what they did was they set up a perimeter. we had inner and outer perimeters. that's pretty much the same

thing that's happened here at facebook. also, facebook is probably going to take the teachable moments from what happened at cnn not too long ago when we had bombs mailed in. you will have ain ean inner andr perimeter. the chief concern is cross-contamination and the strauks evacuation of personnel accordingly. this is becoming more prevalent. this appears to be the new normal moving forward. >> thank you for being with us and for your service. i wanted to ask you about target. i remember back when environmentalists targeted, for example, some or even in the aftermath of 9/11, politicians were targeted. should other media companies like facebook, they are the target of not only scorn from regulators and members of the public. should they all be on guard now? i know the investigation is ongoing but something like what's happened with facebook could potentially happen with them as well? >> this is becoming a new normal. i give you the contrasting comparison with terrorism.

after 9/11, the seismic shift for terrorism here in the united states became the new normal. that being said, with social media companies, they are experiencing the same thing, be it terrorism or people -- technically this is an act of domestic terrorism. but this is now becoming the new normal. therefore, they need to formulate themselves with the advent of technology and protection of their employees so these things won't happen and people don't get hurt. >> we should preface this could be a false positive as well, right? we are still waiting to see. we don't know if anybody has been hurt. but you brought up cnn and made that comparison, the bombs that were sent there. given your experience, how often does it happen where you have all the copycats? here we are talking about it on national tv, the bombs, we saw several cases of was it real, was it fake, so could this potentially start to spiral into something even bigger and we never know if it's really sarin in there? >> it could potentially spiral into copycats. but one of the things that facebook and any other media

agency should do is take a page out of what fed ex does. fed ex takes a scan, they x-ray every package that comes into their facility. in addition to that, whenever you have incoming packages, they should always be viewed at an off-site location. >> don't they do that? they are a huge company. they have money. >> i'm not saying they do or don't do it. i'm just giving you the natural order of business in the detection process. this should be an off-site location. cnn didn't have an off-site location and it came in to cnn. we go back to you have an off-site location and you want to x-ray every package that comes in. that is going to help you in fortifying the provisions from this stuff coming in. >> wonder if we have one. david: go ahead, heather. >> you know, facebook spokesperson said that they closed three or four of their buildings, four of their buildings, but three have been reopened since then and that no one in the mail facility right

now, thank goodness, has been exposed or they don't think they have been exposed to this deadly sarin gas. now, as a lieutenant in your past experiences, what are potentially some of the symptoms you would be looking for and do you think it was a good idea for facebook to all of a sudden reopen these three out of four buildings when we don't have the conclusion yet? >> well, i bring you back to what happened in japan years ago in the subway. that's when we had this particular toxic substance that was used. many people were killed as a result. that goes back to the teachable moments and how you address these types of substances. facebook is not going to be the person that makes the all systems go sign. it's going to come from the fire department, the department of environmental protection and the police department. that triangulation of those three organizations is going to tell if we are going to let these people come back into the building or not. david: lieutenant, great to see you. thank you very much for this. as you mentioned, we still don't know exactly what happened so stay tuned to fox business.

we will keep bringing you updates on the situation in california. meanwhile, hundreds of thousands of protesters in hong kong, some now resorting to violence to make their message heard. we break it all down for you next. fact is, every insurance company hopes you drive safely. but allstate helps you. with drivewise. feedback that helps you drive safer. and that can lower your cost now that you know the truth... are you in good hands?

david: president trump speaking just moments ago after signing the taxpayer first act. we are awaiting his comments. but we already have details of what he talked about and there

is a lot going on today, from what happened with the market to what's happening in our talks with china to what's happening in hong kong, which of course, affects china's dealings with not only the united states but also with its own situation. let's listen to what the president said. >> they know what they're doing. they know what they're playing with. i think they're playing with fire so no message to them whatsoever. reporter: any reaction to the protests in hong kong today? >> in hong kong? i hope it gets solved as does president xi of china. we had a great talk, great discussion, talking about doing something and we've talked about it briefly but it's very sad. rarely seen protests like that. it's very sad to see. reporter: will you be delaying [ inaudible ]? >> what? reporter: will you be delaying

the census? >> we're looking at that. we think the census, obviously if you do all of this work and nobody can believe this but they spend billions of dollars on the census and you're not allowed to ask, you knock on doors and houses, check houses, you go through all this detail and you're not allowed to ask whether or not somebody is a citizen so you can ask other things, you can ask whether or not somebody's a citizen? so we are trying to do that. we are looking at that. reporter: why do you think it's so important that that question be asked? >> i think it's very important to find out if somebody's a citizen as opposed to an illegal. i think there's a big difference to me between being a citizen of the united states and being an illegal, and you know, the democrats want to treat the illegals with health care and with other things better than they treat the citizens of our country. if you look at a coal miner that has black lung disease, are you talking about people that get

treated better than the coal miner. these people got sick working for the united states and we treat the people that just walked in better. you look at what they're doing in california, how they're treating people. they don't treat their people as well as they treat illegal immigrants. so at what point does it stop? it's crazy what they're doing. it's crazy. and it's mean. and it's very unfair to our citizens. and we're going to stop it but we may need an election to stop it and maybe to get back the house. reporter: mr. president, when will the round of trade talks with china begin? >> it's already begun. it's already begun. they're speaking very much on the phone but they're also meeting. yeah. it's essentially already begun. it actually began before our meeting. reporter: lighthizer. >> it has to be better for us than for them because they had such a big advantage for so many years. in other words, you can't make a 50/50 deal when somebody else has been absolutely -- i have been talking about this for

years. china, we had a surplus meaning they did on us, of $507 billion. it's been hundreds of billions of dollars a year for many, many years. so obviously, you can't make a 50/50 deal. it has to be a deal that is somewhat to our advantage. if we're not going to do that, we are taking in a fortune from tariffs. unfortunately, we are hurting china by doing that because many of their companies are leaving and going to a non-tariff state so they don't have to pay the tariffs. the other misconception about china, i think you read an article today in the "wall street journal" about it, lot of people aren't paying for those tariffs in that case, certainly. china is paying for them and those companies are paying for them. china devalued their currency very substantially and they also put a lot of money into their economy. they are pouring money, state money but it's money, and they are pouring money into their economy to take care of the tariffs. some people, you don't have increased inflation, but i'll tell you what is happening.

our treasury is taking in billions and billions of dollars of money that normally would be for china. so we'll see what happens. we hope that we can make a deal but it's got to be a fair deal. we had a deal as far as i was concerned, then at the last moment, china decided they didn't like that deal. and they changed it. that's all right. then i said you're going to pay 25% tariffs on $250 billion. reporter: did president xi say he would move on some of those issues? >> i didn't expect him to move. if he doesn't move, that's okay, too. i'm very happy either way. but i think we have a good chance of making a deal. i think they want to make a deal because they are losing many companies that are leaving because of the tariffs, because they don't want to pay the tariffs. so they are losing many companies. they are moving to vietnam and by the way, some are moving back to the united states, where they belong. reporter: [ inaudible ]. >> now they are because i think the president is doing a great job. he put 16,000 people in this

weekend but they're, you know, getting to the border and doing a great job. we have 6,000 people at the border with guatemala. i mean, it's been way down. it's cut way down. you will start to see the numbers over the next -- reporter: [ inaudible ]. >> well, that's true. sure. no, no, that's true. but they're doing a good job. right now they're doing a good job. we're very happy with the job they're doing. it was because of tariffs that they're doing it but the point is they're doing a very good job. he's very smart to do it. that's a tiny fraction, sounds like a lot of soldiers but that's a fraction of what tariffs would cost mexico. i very much appreciate it. he's doing a great job for mexico. because the mexican people were very upset with all of these tens of thousands of people, hundreds of thousands of people walking through mexico, and the people of mexico are just as happy as i am with what they're doing.

reporter: [ inaudible ]. >> well, i don't know what they're saying about members of congress. i know that the border patrol is not happy with the democrats in congress. i will say the republicans do want border security. the democrats want open borders. open borders means tremendous crime. if you look, there was a report that came out where approximately 600 people in the last caravan were serious criminals. i don't want them in our country. so the border patrol are patriots, they're great people, they love our country. they know what's coming in. know who knows it better than anybody? hispanics. hispanics love what i'm doing. because number one, they don't want to lose their job. they don't want to take a pay cut. and very importantly, most of them, they don't want to -- they understand it. the people who understand the border the best are hispanics. they understand it better than anybody. they don't want to have to

suffer crime and they don't want to take a pay cut, they don't want to lose their job. that's why my poll numbers went way up with hispanics, because they really understand the border the best of anybody. okay. reporter: [ inaudible ]. >> we are going to have a great fourth of july in washington, d.c. it will be like no other. it will be special. i hope a lot of people come. it's going to be about this country and it's a salute to america. i'm going to be here, i'm going to say a few words and we're going to have planes going overhead, the best fighter jets in the world and other planes, too, and we're going to have some tanks stationed outside. got to be pretty careful with the tanks because the roads have a tendency not to like to carry heavy tanks so we have to put them in certain areas but we have the brand new sherman tanks and we have the brand new abram tanks and we have some incredible equipment, military equipment on display, brand new, and we're very proud of it. you know, we're making a lot of new tanks right now.

we're building a lot of new tanks. in lima, ohio, our great tank factory there. the people wanted to close down until i got elected and i stopped it from being closed down. now it's a very productive facility and it's the greatest tank in the world. reporter: [ inaudible ]. >> i think so. i think i've reached most americans. most americans want no crime, most americans want a strong military, they want good education, they want good health care. if you look at pre-existing conditions, the republicans are going to save pre-existing conditions, the democrats won't be able to do it. what the democrats plan is is going to destroy the country and it's going to be horrible health care. horrible health care. and everybody's taxes are going to go to 95%. by the way, that's not enough. the taxes, if they ever did what they want to do, your taxes go to 95% and that isn't nearly enough. thank you very much, everybody.

reporter: [ inaudible ]. >> well, they're looking for democracy and i think most people want democracy. unfortunately, some governments don't want democracy but that's what it's all about. it's all about democracy. there's never been anything better. i think we're the best example of it right here in the united states. thank you. david: the president speaking at the white house moments ago talking about border issues, ir iran, the china trade deal, but beginning and ending with these protests in hong kong that were really historic today. today on the 20th anniversary of the announcement that china would be now in control again of hong kong but have a 50-year hiatus during which they would not interfere, they sort of violated that and people of hong kong doesn't like that violation and they are out in the streets today. not only out in the streets but

they actually went to the legislature in hong kong. we have video we can show. they banged on the windows, then broke the windows, then went into the legislature itself. where will this all end? let's bring in the heritage foundation's dean cheng to talk more about this. dean, will the protests do anything to protect democracy in hong kong? >> well, the problem is that on the one hand, what we are seeing is the people of hong kong are very unhappy with the government which had been trying to push through an extradition treaty which would allow people to be extradited to china, but by breaking into the legislative -- into the legislature, they are also creating the real possibility of a crackdown backed by beijing, who would use this as an excuse to prevent mob rule. >> jonas ferris here. that's what i was going to ask you. it seems like a lot of these

countries that are questionable democracie democracies, like russia, there are a lot of protests building steam. what can they do in china? they can't have this win because people in china might start protesting and trying to get somewhere with that and they wouldn't allow that. they almost have to crack down. their hands are sort of tied. what's the avenue besides a hard crackdown by china even in this independent region? >> well, what we saw with the umbrella movement a couple of years ago was actually a pretty smart effort by the authorities to really starve the protests of attention. they didn't crack down, they basically left them alone and after several days, the media packed up and went home. after a couple more days, a lot of the protesters packed up and went home. at some point, when there were really just a few, relatively few people remaining is when the police then came in, cleared them out without using force, but since then, a lot of the organizers have found that their

passports have been revoked, they can't get permission to leave the country. so it is possible to do a sort of velvet glove relative hands-off approach but once you have action like taking over the legislature, that's when i think the authorities feel they have to act. >> these protests have turned violent and obviously, the protesters want to scrap the extradition bill but dean, how likely do you think that's going to happen? what are the odds of that? >> well, carrie lam, the head of hong kong, has withdrawn or tabled the extradition treaty. the problem is that she has only tabled it, she has not fully withdrawn it. so the people who are protesting are saying you know, you guys might come back in the dead of night a week, a year from now, and try and reintroduce this. this is i think part of the frustration that you're seeing among especially the younger people who are the ones who are

doing the takeovers and breaking into the buildings. david: i have never seen frustration like it, and it is justified, we should emphasize. we had to cut it short because of the president there. we thank you very much for being here. thanks very much. please come back. remember last week when 2020 democrats endorsed free health care for illegal immigrants? now the democrat party's chair saying the immigrants will pay those costs. come again? his explanation is next. i can't tell you who i am or what i witnessed, but i can tell you liberty mutual customized my car insurance so i only pay for what i need. oh no, no, no, no, no, no, no... only pay for what you need. liberty. liberty. liberty. liberty. ♪

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illegal immigrants but democrat national committee chairman tom perez made his case on fox news sunday that the free health care would not be a handout. look. >> it's an interest program so you have to pay into it. as you know, immigrants, including undocumented immigrants, pay billions of dollars in taxes and that's the reality. democrats believe that you should be able to buy into a health insurance system. that's not a handout. >> president obama didn't say that. >> we're in a different era. david: mr. perez is claiming since many illegal immigrants pay taxes, the free health care would all be paid for. do you buy that? >> government provided health care, that's not an insurance program. just the same way as the obama marketplace is not a real marketplace. it's confusing government power with really economic power. look, immigrants are not the problem. immigrants work, they produce, they do pay taxes. the problem are these entitlement programs, these big government programs that drive up the cost for everyone. once again, we should be

focusing on getting rid of entitlements because they are destructive regardless of whether it's illegals or anyone else getting the benefits. >> the number perez is referring to, there's a number that came up saying undocumented immigrants actually paid $11.7 billion. however, this institution could be seen as left. you have illegal immigrants that some of them, not all, are paying on their w2 or payroll taxes should they be getting a paycheck. we can debate all we want but we don't know the number, right? david: neither does mr. perez. go ahead. >> that's exactly the point. employers, if you are an illegal undocumented worker, you are not paying payroll tax but if you are using the temporary visa program, which is a loophole, 75% of illegal immigrants are getting a social security number through that but it's abuse of the system. it's only supposed to be a temporary visa.

>> i don't want to give a whole tax lecture but perez was describing how european health care is paid for with value-added taxes and across the board taxes. in america, we don't have the system to tax poor people to pay for health care. in fact, to increase obamacare which i guess what is they are talking about, if you recall, they added a high capital gains tax increase if you are over a very high threshold of several hundred thousands of dollars and medicaid, .9% tax. those are all to tax high net worth people. medicaid is already taxed in that way because it doesn't cap out like social security. there is no tax structure to pay for these benefits or a plan for it to make people under $100,000 to pay for this new health care plan. social security payroll taxes go for your social security benefits, not for health care. that would totally change the tax code to offer these benefits to ten million plus people. >> can you do my taxes?

david: this is another lure, if you promise the illegal immigrants everything free, health care, free this, sanctuary cities, et cetera, more will come? >> i agree with you and look, the immigrants that came to this country at the turn of the 20th century, there wasn't a minimum wage or government health care. there wasn't even government provided schooling. they made it by themselves, they pulled themselves by their bootstraps. david: five seconds. >> really quickly, jonathan, to your point, andrew yang is suggesting value added tax. that's what he was saying, right? >> the only one that made any sense about this stuff. david: taylor swift, meanwhile, let's get serious, calling music manager scooter braun a bully over the purchase of her music. we will tell you more about their battle that has everyone in hollywood up at arms right after this.

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held. swift said quote i learned about scooter braun's purchase of my masters as it was announced to the world. all i could think of was the incessant, manipulative bullying i have received at his hands for years. >> how big a financial asset these royalties are. i purchased some song royalties in the past, they are almost like steady bonds that will pay year after year after year. this is going to be big bucks and taylor won't be getting a piece of it. >> taylor successfully had apple change their royalty policy.

so she carries some weight. based on her tumblr post saying they shouldn't be taking advantage people so early in their career. you get an agent and they take 10% of your salary for x amount of years. >> i don't feel sorry for her at all. >> i will say, i kind of feel bad for taylor swift. musicians get taken advantage of before they are stars. they sign deals where they don't own their music anymore. it can't be as bad as michael jackson owning your music portfolio. but there is too much power in the hand still even with the internet.

>> she shouldn't have signed the contract. david: there are a lot of people that aren't half as rich as she is or a quarter or a hundred who might be affected by this. liz: stocks touching record high after president trump completes a whirlwind 100 hours and puts an historic deal with china closer in reach. the president making history meeting with the leader of north korea in north korea. the crisis at the border. the protests at hong kong. all this as 2020 democrats are completely flailing. the democrats risk losing the white house because they have veered way far left and abandoned the centrist strategy that won