down 7%. that will do it for our time on "varney & company." hope stu feels better. neil, ticket away. neil: ashley, thank you very much. what is happening in the big apple with the heat wave. mayor de blasio told all buildings 100 feet or taller, not one degree below 78 degrees. that is how fearful they are exhausting this, really testing con-ed, the premier utility in the greater new york region. these triple-digit temperatures are extending way beyond new york. 2/3 of continental night will be under that. stock market is in and out, shows it has never been hotter. what happens now? iran hot and bothered over something else, that drone issue. they say it is not their drone. the u.s. is making things up. here we go.

let's get going. 195 million, close to 200 million under heat watches or warnings. it could get worse over the next 24 to 48 hours. jackie deangelis on who stands to be impacted. hey, jackie. reporter: neil this is the calm before the storm if you will. it is not quite sweltering out here in times square just yet. temperatures here, across the country, they are going to be at record highs. it is important that everybody is ready for this heat wave. 290 million americans are expected to see temperatures of at least 90 degrees this week. the humidity of course, remember makes it feel much hotter than that. temperatures in the northeast will be 10 to 15 degrees above average this week. at least two dozen states, they are currently under a heat alert. here in new york city the mayor's office issued a extreme heat emergency declaration. it is so severe, that the new york city triathlon actually can sell for the weekend.

that is the first time since it started in 2001. we caught up with some folks here, we asked them how they are preparing, how they are feeling about it. >> hopefully the power is still on so i could at least have ac, a portable ac unit i can count on. >> stocking up on water. not stocking up on too many things in general. mainly water, if you have too much stuff laying around the house it, will get hotter. >> just go with it. it is what it is. >> we live in it. so you get used to it. reporter: if you have air-conditioning, your urged to make sure it is running properly and demand is high, these broken on a weekend it is hard to get repairmen out. if you don't have air-conditioning, are close by, know location of a cool be center, very, very important. retail will be benefiting from foot traffic with people out and about at the malls trying to

stay school. utility and water companies will be put to the test for sure. they are saying demand is going to be high. they're making those preparations to make sure they can provide users with everything they need, neil. neil: you know that's a huge sacrifice to go to a mall to stay cool. that is faustian kind of a pact. jackie, thank you very much. dealing with the heat, and i don't like the heat. nation's power grid is under pressure as utilities trying to make sure they can handle it. i told you what mayor de blasio is doing in new york, urging residents to keep thermostats no lower than 78. we have have a peco power ceo. what do you advice your clients to do? you're basic rules apply, you don't want the system

overstressed? >> that's correct. we plan for this all year-round. our sister utilities planned year-round. we make significant capital investments to be ready for weekends like this, but good practices conserving energy where they can, turn thermostats up, keep shades down, keep their buildings cool. certainly at time like this, to look in on elderly relatives, friends, to make sure they're safe during this period of heat. neil: i know the new york case was a little different last week and power went out half in manhattan. a transformer blew or something ignited. so that was a different case. temperatures in the 80s then. this does put a strain and stress on the same system, doesn't it? >> it does, but again as i mentioned earlier, with peco part of the excelon companies, we represent 10 million customers across the country, chicago, washington, d.c., baltimore, philadelphia. we planned all year-round and

made significant capital investment for these periods of high temperatures. for weekend like this, we have 16,000 employees stand by on the ready both in emergency response, public outreach, customer care system to be ready to respond if we have problems. neil: the kind of thing that happened in new york last week a lot of folks are worried about happening this week, not only in new york, what trick terse that kind of talk? just a stressed system or we have compromised grid, both what do you think? >> anytime you can have a piece of equipment failure, what happened in new york last week was not typical. in fact con-ed is one of the most reliable utilities in the country, very well--run. they are investigating that, they will get to the bottom what occurred there. peco, excelon utilities all utilities across the country, you plan for this. if you look at the electric grid, it is extremely reliable. so i feel pretty confident we'll

be able to get through this weekend. neil: hang in there, michael. i know you will have a busy weekend. we're following developments halfway around the world including the middle east, everyone is hot and bothered nothing to do with the heat, everything to do with the back and forth whether a drone shot down by the united states was actually iranian drone. the iranians say it was not. we claim we have unequivocal proof it was. we have lieutenant colonel david hunt. iranians says it is not theirs. what do you know about this? what do you think of their response? >> yeah. iranians are full of crap. neil: okay. >> we've got too much technology, neil that identifies things that are coming near our ships 40 miles out, okay? so this, this drone got within 1000 yards of an amphibious ship carrying a couple thousand marines and some other gear. we did have a very elegant

thing. we didn't shoot a rocket at it. shot electromagnetic pulse, it dropped out of the sky. that is a great way of saying, do not do this. you don't get, look, ship captains don't want anything within a mile of them, let alone a thousand yards. it is an amphibious ship. not a destroyer. it was provocative act by the iranians of the they knew what they were doing. it was theirs. how do we know? we got the drone out of the ocean. that is the end of the story and it was a very good way of handling a potentially dangerous situation. neil: you know, we're getting reports that might go to the middle east, talk to the iranian foreign minister. the president is saying, all right, try, see what you get. rand paul was telling us he would do darnedest to avoid conflict. sometimes that is unavoidable. so where do you think this is

going? >> i don't think it's a good thing in a small area like the straits of hormuz. iran has 300 miles of coastline and for them, you know, we've been a while now, but it only month 1/2 ago, seven ships were blown up, probably by iran or terrorist organizations being paid by iran. we dropped a drone. these are incidents that get elevated. what happened yesterday is another example. i think that we're going to see more sanctions. there will be threats of military action i don't think are necessary. but iran is hurting as we know because all of the sanctions we put on them. their sales of oil dropped from 2 1/2 million barrels a day to under 200,000, the chinese being big users of it. this does not seem to be going any better. neil: colonel, we'll watch closely. thank you. colonel david hunt. meantime we want you to know what is going on in the white house, a special

commemoration of surviving astronauts, buzz aldrin, second man to walk on the moon and michael collins circling above the moon and family of neil armstrong will be at the special event. michael collins made a little news, we were talking to him, he kind of agrees the president's approach, go back to the moon is a bit redundant. if michael collins had his way he would go directly to mars. that is what the president has been saying. more after this. ♪♪ ♪♪

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neil: there will be a special commemorative event about the apollo 11 landing on the moon. buzz aldrin who was on the moon

will be feeted today. the formal walk on the moon was tomorrow. buzz aldrin will be on tomorrow to commemorate that special event on my weekend show on fox news. the dow is sprinting ahead. microsoft is big reason, record revenue, iron click nothing to do with software but its cloud business. the company in and out of all-time highs. the company only company right now, right now, worth over a trillion dollars when you add up all of its shares with the market price. market watch tech editor jeremy owens on that. you know, jeremy, i'm thinking of the time microsoft was not the cool kid on the block. it was apple, everyone but microsoft. now it is. i'm wondering what's driving it? >> fact it wasn't growing back

then when all the other tech companies were taking off. now it is taking off. it's a little bit later what you call a growth curve, right? that is why it looks so great. you see all the companies getting so much scrutiny and government spotlight on it because they got so big so fast. microsoft had the government spotlight on it 20 years ago. been there, done it. it doesn't look like it has issues others have, it is growing fast and others are slowing growth and microsoft is in a really good place right now. neil: when you think about it, obviously windows is ubiquitous, eight out of 10 computers via the operating system was routinely accepted worldwide. then obviously, processing documents, word, xcel, spreadsheet but they have gone way, way beyond that i'm wondering the whole cloud phenomenon others latch on to, even in ibm's latest earnings, a

lot what they're doing on the cloud is getting attention, are we overstressing that? are we overhyping that? what do you think? >> no, i don't think so. we really need to know when the cloud boom will kind of plateau. neil: right, right. >> apple iphone was no longer growing sales, okay we know where mobile is going to be. we still don't know how big cloud is going to be. cloud is still growing at a pretty ridiculous clip. when does that end is a huge question in tech investing right now. the way microsoft continues to grow. people freaked out a little bit, azure, their cloud product only grew 64% last quarter. 64%! that is still insane, oh, but it is under 70, right? we're still growing a ridiculous amount for cloud. we don't know where the plateau is. we continue to look for that. neil: with azure, a vast database, microsoft almost owns that arena, doesn't it? >> well i mean amazon web

services has a few things to say. neil: right, right. >> microsoft has the better cloud software. amazon has the larger clough computing which is just computing in the cloud which is infrastructure, basically while microsoft has all these cloud software. microsoft has that together. amazon is trying to catch up in cloud software. microsoft is trying to catch up with amazon in cloud computing. neil: we'll watch it closely. jeremy, stay cool where you are. in san francisco where it is always pleasant. >> we're fine. y'all stay cool out there. neil: rub it? boeing shares are higher, higher after taking a 5 billion-dollar charge over a lot of problems related to its 737 max. kristina partsinevelos following that and a lot more. reporter: neil, you're right. a huge hit, $5 billion in the second quarter, but look at the stock price. it is climbing higher. they would have have production

costs of up to $1.7 billion. boeing is confident they will get the 737 max jet in the air by the fourth quarter. that is sign of confidence. why you have a tangible number, almost five billion dollar after-tax charge. could it be too optimistic? because regulators still need to approve the flight control software changes. you saw, we've been talking about this for quite some time. there are two deadly crashes, 346 people died. overall at this point in time, there are still 371, 737 max jets have been grounded around the globe. so this five billion dollars we're talking about is a good sign of faith when boeing dealing with a lot of other airlines because so many have been grounded. the money will be passed on to airlines the next few years, as well we're seeing cost of discount. they don't include legal fees from settlements. a lot of families filed lawsuit

for negligence against boeing. that still has to go. earlier this week boeing announced they would give $50 million to family members of vick tis. last but not least the transportation secretary said this week regulators have no timeline for returning the max to the skies and won't act until the plane is safe. neil, the earnings are next wednesday. neil: wow. anticipation around that. great job, kristina. thank you very much, kristina partsinevelos. meantime we're still focused on the heat. you know how new yorkers are about heat and complaining about it. 2/3 of country is in that predictment. we're following heated exchanges. see what i did with the heat then in on capitol hill congress is petting rattled, rat lending a lot of folks we might not have a debt deal in the time they want. a lot of back and forth on that. after this.

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neil: technically not today, treasury department say by the end of the month, early september we could technically run out of dough. that might be the treasury secretary's way scaring democrats and republicans actually to cobble together a deal. if that was the goal so far not so good but the former speaker john boehner an former democratic congressman joe crowley are indeed worried about the debt. they were telling me this yesterday. >> budget deficit is a serious concern of mine. it was when i was speaker of the house. it has grown exponentially since i left. it will become, mark my words, it will become the biggest issue of the day. >> both sides will have to show political courage in this process. whatever that path may be. neil: you know who is on top of this long before it became cool to talk about it? ross perot is one. sadly we lost him last week. the other is my next guest,

former u.s. comptroller, general under clintons bush 43 david stockman. he has been pounding this, in a good way, being relentless about it, being how important it is. david, always great to see you. >> always a pleasure, neil. neil: what amazing our eyes glaze over, it is 22 trillion, okay, 23 trillion. but interest rates are low. we owe money to ourselves, no big deal. chill. what do you think? >> talk about one of the purposes of the debt ceiling limit was supposed to be. it came in 1917. among other things it was supposed to try to help control spending and control debt. let's talk about a couple of statistics. in 1917 the federal government was less than 5% of the economy. now it is over 20% and growing. in 1917 the debt was about 9% of

the economy. and now it is 106% and growing. so the bottom line is, it has failed. both democrats and republicans are responsible for it. they will cut a deal, the debt ceiling because they really don't have a choice to do otherwise. what we ought to be talking about, is raising it one more time, and then repealing it, replacing it, with a debt as percentage the economy limit, with real enforcement mechanisms. because we need a credit card limit. it is clear that washington is out of touch and out of control. while it is very hot temperaturewise here, there is always a lot of hot air but there is not much action that happens. neil: you know what is interesting? every time washington tries to come up with an enforcement mechanism, i think of, gramm-rudman, all these other methods to police spending, put a cap on it, they always find a way to get around that. so i'm wondering do we pay too much attention to setting a debt

ceiling level, whether pegged to a over all number or whether it is pegged to percentage of gdp? because they won't listen? they won't do it? >> here is what i'm suggesting, if we go debt-to-gdp, that really matters. not all debt is bad. sometimes you take on debt for investment or in an armed conflict but we shouldn't be adding debt when we're at peace, not at war. what we need to do is recognize we want to grow the economy. that is what the gdp is. that is what the denominator is. at the same point in time we have to force 70% of spending growing faster than the economy, so-called mandatory spending, on the table. that will encourage pro-growth, force spending out of control under the table. what are the enforcement mechanisms? the enforcement mechanisms automatic things happen if you violate that, in certain circumstances people should not be able to stand for

re-election. look, these people are spending out kids money. neil: third rail there, young man. >> let me tell you, my friend, you know, if you look back at the preamble to the constitution of the united states, that will lay out what the federal government is supposed to be doing. a significant majority of what the federal government is doing today has nothing to do with that. in addition, if you look at the preamble, it says posterity. we're supposed to be looking out for future generations. we're mortgaging their future at record rates when they will face a lot tougher competition and increasing interconnected and independent world that irresponsible, unethical, immoral. debt ceiling doesn't work. we're the only major industrialized nation that has one. we need to go to something that will and by the way we need to make it constitutional. a constitutional debt-to-gdp limit. fortunately 28 of 34 states have already recognized the need for that. there is an effort to get to the 34 which will force a state-led

constitutional convention. maybe we can reclaim fiscal sanity. neil: appreciate the fact that americans are very intelligent. they're open to hearing this, neatly laid out. you did that. ross perot did that. don't dismiss how much wisdom in the american people. explain to them, they will galvanize and put the pressure on. >> neil, you may recall that in 2012 i did a 10,000-mile, 27-state national fiscal responsibility bus tour. neil: remember it well. >> on that, we got 77 to 97% agreement from representative groups of voters in swing districts and swing state in the north and south for budget controls, social security, medicare, medicaid, health care, tax, defense, government organizations operations and political reforms. 77 to 97%. there are a lot smarter than the politicians realize. we need leadership. we need action. we need results. neil: yeah. you need someone as late great

ross perot said, to risk losing an election to make a statement. we'll see. it is always good having you, my friend. >> my pleasure. neil: thank you for reminding us importance of this. he was on this when virtually no one was. we're awaiting a while house event. michael collins is talking about the whole push going back to the moon. doesn't think it's a great idea. >> i think the current plan, has been well-thought out but i just disagree with it. i think we ought to shoot directly for planet mars.

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♪ neil: i'm still having trouble with 50 year thing. i remember watching neil armstrong and buzz aldrin on the moon. i remember all the stories, michael collins circling above, the command module pilot then. i had a chance to catch up with michael collins on the whole issue going back to the moon. he like the president, not a big fan of the idea. there is, you know, an attempt to sort of restart the whole space program with using the moon as a launching pad, i always thought it just seemed odd having done that, achieved that, that we're going back to that. i guess the strategy, maybe that is launching point for bigger, broader missions, what do you think of all that? >> i think it is

well-researched. my friend neil armstrong, who i think was a far more competent engineer than i, thought in discussing mars he thought there were changes of missing knowledge along the way. i think the current plan, has been well-thought out but i just disagree with it. i think we ought to shoot directly for planet mars. i used to joke when i came back from apollo 11, that i had been sent to the wrong planet. that nasa should be renamed the national aeronautics and mars administration. 20 some years ago i wrote a book, a whole boring book on mission to mars. i have always been a believer in mars. i would, i would choose a direct, i would call it jfk mars direct express is what i would call it. neil: what he left out there, what he wrote in his book he would like to be that man to go there, no matter the age.

michael collins, american hero at the white house right now along with buzz aldrin, family of neil armstrong with us. sky walking author tom jones. good to have you. >> hi, neil. neil: what do you make of what collins was saying here? he appreciates the thought and strategy behind going back to the moon, certainly a lot of countries are doing that, everyone from china to luxembourg but, just skip the middleman, satellite, go right to mars. what do you think? >> there are two answers, thematic and practical. a lot of companies are partners with us on the space station who vent been to the moon, they would like their people, scientific to go on to the moon. they're very interested in getting access to the moon. we can lead that partnership. on the practical side, mike collins identified the problem, we don't know the technologies that we need to get to mars. the most critical being, how to

get big landers with people on them down to the surface safely. that technology hasn't been invented yet. if we wait to go to mars until that stuff comes along, meantime the chinese are all over the moon, our economic and military rival, we look like we're second best, that is an unaffordable option i think. neil: so it is not as childish my immediate impression, been there, done that, why should we try to compete with guys we did something 50 years ago, you say that is the point? >> we're not doing what we did 50 years ago. the plan before us would be to go there sustainably, use resources on moon to make rocket fuel, refill tanks of landers. neil: what resources? >> water at the lunars polls. at the polls there is million tons of water ice. you break that down into oxygen and hydrogen. you lower cost of space using fuels already there, instead of launching them at great expense

up from earth. neil: i have interviewed a lot astronauts, present and former, a lot of viewers who say we know you love the space program, unmanned vehicles can do fine. we landed a ton of them on surface of mars as other countries. we've taken unmanned vehicles to the outer reaches of the solar system and beyond. that is something we don't need a human being to do when we have done it already with all of these vehicles. what do you say to that? >> well there is a role for both robots and humans. you send robots where conditions are too hostile for humans to do any exploration like pluto or into the clouds of jupiter, for example. there are places we can't get answers to important questions, like is there life on mars without sending a human astro biologist and geologist to get to the bottom of that question. the rote bottoms don't have the intelligence to do that. they won't for the foreseeable future. they will be good partners for

us but they can't answer those fundamental questions. on the moon, for example, there are places on poles where humans can't go in the shadow of dark craters. that is where robots go. but you need humans to periodically, maintain the rocket fuel plants. neil: tom, if you don't go, we already volunteered charlie gasparino here to go. so we'll keep you posted on that. but always good having you. thank you very much. >> my pleasure. neil: tom jones, former astronaut, sky walking author. that pow-wow, very impressive one at that, still going on at the white house featuring two surviving members of apollo 11, buzz aldrin, second man to walk on the moon, by the way my special guest tomorrow on our weekend show, "cavuto live." michael collins said regardless we should keep our eyes on the sky, whether men doing it or other vehicle. the fact of the matter we're born for this. quoting john kennedy, because he

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neil: back to more terrestrial concerns. edward lawrence following all of these latest machinations from the white house. edward? reporter: seems a little out of this world talking about it there, following upon your pun. the chinese confirming there was a second phone call between the u.s. and chinese trade delegations. on that phone call u.s. trade representative robert lighthizer, treasury secretary steve mnuchin also chinese vice premier liu he and newest member of commerce ministry. he holds a stronger view that the chinese must hold its ground. on the two call the sides talked about implementation of the consensus between two heads of

states at osaka. they said the next step is to exchange views. what came out at the osaka from donald trump and president xi xinping, that china would buy more agricultural products and u.s. would allow companies to sell products to huawei. they were in the process of sales to the chinese phone manufacturer. the chinese want huawei off the list, blacklist all together. now the president donald trump has opened up the possibility of huawei being involved in a trade deal. the chinese have not started making those purchases of agriculture. instead the chinese have made agreements this week with the russians to import more soybeans from russia to china. the california lieutenant governor says, that wine exports to china fell 25% from january to now compared to the same time frame last year. she adds that the demand has been absorbed by agreements that china has with chile and australia. seems though, neil, the chinese

are starting to dig in, starting replace demand of u.s. products with other products where they have agreements. back to you. neil: i'm getting a sense, edward, you're far close to this than i will ever be, nothing will happen soon, that is a given? >> that is a given. nothing will happen soon. both sides are dug in. the u.s. will not take huawei off the entity list. they will not remove it. because of national security concerns, chinese are hardening the tone they have to take it off the list before they do anything, concessions back in the trade deal. before they by agriculture from us. the two are seemingly at a stalemate. neil: great reporting, my friend. edward lawrence with developments at white house, in the building. surviving crew members of apollo 11, buzz aldrin, michael collins, neil armstrong's family there as well. when the cameras are out of

there, they normally feed all of that back. the president is commenting on an enormous event we recognize as a nation, 50th anniversary of walking on the room. he touched on debt ceiling, iran, a number of other subjects. we're there right after this. we're the slowskys.

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adjust your comfort with your sleep number setting. so, can it help us fall asleep faster? yes, by gently warming your feet. but can it help keep me asleep? absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. will it help me keep up with him? yup. so, i'll wake up ready for anything? oh, we've got your back. so, you can really promise better sleep? not promise. prove. and now, save up to $600 on select sleep number 360 smart beds. only for a limited time. neil: forget about losing subscribers is netflix looking for a way out and is eddie murphy the way out? the famous comic is reporting a massive stand up after reporting a massive miss in the subscribers. more people focus on that earnings, revenue, any of that stuff. to, is it -- i'm sorry. >> there you go.

neil: andrew friedman and our own charlie gasparino. great to have you both here. >> thank you. >> communications analyst. >> get the title right? >> hegi communications. neil: that works. is mine more accurate than this. >> i'm the communication sector head. neil: you're saying he is more correct? >> a little bit more correct. that's all right. neil: let me ask you, eddie murphy, it's a draw, what do you think? >> i think netflix is at the point in their life cycle, growth curve, contents, they need big hits, need stranger things to drive engagement. 65% penetrated in u.s. over 50% penetrated in developed markets internationally. they need to stop focusing on one, twos, eddie murphy will draw a crowd or popular content to drive subscriber growth especially with loss of disney and other popular titles.

neil: will that draw subscribers, oh, you have eddie murphy? >> no, i don't. content is content. i personally think content is king, we all heard that, why disney is in such a strong position going forward but at the end of the day any companies comes up to limitations of market. it is the law of economics and reality. neil: they spend a ton. >> they spend 13, $14 billion a year in content. a lot of the content is, would not have performed well if it was released released in the trl theatrical sense. they're spending 100 million, 200 million. struck 100 million-dollar deal with "seinfeld" for that. neil: the obamas. >> the obamas. the question is -- neil: soon charlie gasparino on business. >> what is the half-life of that content? neil: charlie's or -- >> we can say very short. to that point, they're borrowing 10-year paper, billions of dollars. >> that is where i get worried about the model is, the balance sheet. neil: you were talking about this years ago.

>> the balance sheet. tell us about the balance sheet. >> look, it is interesting this conference calls, right? management is saying they're managing their balance sheet and capital structure. they're saying that their debt to capital ratio is really low. that's true. neil: it's a lost debt. >> it's a lot of debt, but equity value is grossly inflated. it is completely overvalued. if you think what the company should be trading at -- neil: talking about the stock. >> yes. neil: the stock many would argue is an realistically priced. >> that the inherent leverage is here. >> do they have off-balance sheet obligations? i keep hearing that. >> they do. neil: what does that mean? >> it means, so when they sign a shonda rhimes deal or big content deal, they can't necessarily, they don't understand how to value that in the short term. so it stays off-balance sheet. nothing super scary. >> that is all enronnesque though. >> yeah -- neil: disney compared themselves to amazon, building up

infrastructure. >> amazon and netflix are completely different. amazon is diversified model. they have profit streams like netflix is one-trick pony. neil: they have a lot of trick. >> you can't create subscribers out of thin air. >> their balance sheet are different. they have negative cash flow. did amazon have negative cash flow early on? >> yeah, they did. >> okay. >> most companies -- neil: that is comparison everyone raises, if you liked amazon in the early days when it was building you will love this. >> yeah. amazon, everyone points to amazon as the bold case for netflix. neil: but netflix isn't building a structure as much a lot of stuff to for people to watch. it is very different than amazon building you know a infrastructure that would support all of this. >> amazon is leveraged? >> i don't know that. >> i don't think so. >> they have been, amazon can make a lot of money if they want to.

>> right. anytime, turn on the switch. >> problem with netflix they have off-balance sheet long term obligations. this company, you you 2011, 2012 like a ferrari. reed hastings is genius. they got the company moving quickly. today they don't have the luxury. they have committed to content. neil: are they raising prices? >> they are trying to. it is tough. the bull case from here, that unit adoption where it is, that we will continue to raise prices aggressively. our work suggests, once you get over $10 a share, $10 a month for streaming service, when price sensitivity, consumer kicked. this quarter we -- >> i can't figure it out. i can't find anything. >> there is paradox of choice. presented with too many choices you default what is common, why "friends," "the office".

>> like "cavuto." neil: right. i'm a simple man, i look at it, simply the whole process of cutting the cord, i want to save money, this, this. now all of these non-cord-cutters are costing you more. >> yeah. neil: than the old cord. >> absolutely. neil: netflix is the latest example but if you keep these services, hulu, netflix, amazon, you're spending more than you did with cable or satellite, right? >> absolutely. neil: so is that macro development something that all tease guys should worry about? >> i definitely think it is. netflix was, continues, continues to be, has 90 plus percent market share. neil: is that right? >> yes, in subscribers. a lot of viewership. going forward you have disney plus launching. neil: some of those their programing wandered away. >> absolutely. first time seeing big hit pieces of content come off the platform go to a competing service.

they had content losses not magnitude of "friends," "the office," disney series. they think 20% of consumers would cancel netflix subscription if they lose content. neil: what are they most married to? >> friend friends is a big -- deal. is that in the air code, this stock goes to $100. neil: "the office" brilliant. >> love "the office." >> what did you like about "friends"? what do you have against jennifer aniston? come on. neil: "the office" is perfect. >> i watch an hour of jennifer aniston any day of the week. neil: this is a family show. netflix is a trend-setters, like buying entertainment mutual fund. so the argument was all of these guys, i'm, kind of simply, maybe stupidly lumping in google and facebook and all this. just you know, sure invests. maybe the dynamics changed for

the whole group? >> yeah. we've seen the fangs start to underperform the last year. we're very late cycle. hedge eye macro team does a phenomenal job. appears global growth is slowing. neil: where do you and your company sit? >> i'm looking thematic look, who will win. neil: communications, we are talking about what? >> communication and telecom. >> cb and viacom merges who will buy them? >> will not comment. >> are you over the wall? >> i can't comment. >> why can't you comment on that? >> i can't comment. neil: i admire that. >> like, we got to be very compliant. neil: a lot of these guys capitalists to their stock to your earlier point with netflix, i'm wondering the capital and the stock was also the big issue for banks and meltdown where

they lost it. >> yep. neil: is there any possibility that these are knows bleed levels for -- >> absolutely, for netflix especially. look, they missed the quarter in a big way. we had data that the entire time throughout the quarter telling us growth was slowing massively. they would miss the quart or miss the guide. they missed quarter. they guided above. to your point they will access capital again. >> suppose fed starts raising rates, they're not would that be a problem? >> that would be problem but the bigger problem they're highly levered fundamentals come down, they miss estimates, god forbid they missed q3 numbers and go to high yield markets. neil: all bets are off. >> watching "friends" tonight because jennifer anniston is in it. neil: you're an idiot. thank you very much. always good my friend. take you to the white house, president meeting with surviving astronauts of

>> i'm unhappy with the fact that a congresswoman can say anti-semitic things. i'm unhappy with the fact that a congresswoman, in this case a different congresswoman, can call our country and our people garbage. that's what i'm unhappy with. those people in north carolina, that stadium was packed. it was a record crowd. and i could have sold it ten times, as you know. those are incredible people. those are incredible patriots. but i'm unhappy when a congresswoman goes and says i'm going to be the president's nightmare, she's going to be the president's nightmare. she's lucky to be where she is. let me tell you. and the things that she has said are a disgrace to our country. thank you very much, everybody. reporter: is there an update on the rocky case?

>> sweden's a great country. they're friends of mine, the leadership, and we are going to be calling, we'll be talking to them. we've already started. many, many members of the african-american community have called me, friends of mine, and said could you help. i personally don't know him but i can tell you he has tremendous support from the africa chld african-american community in this country. when i say african-american i mean everybody in this country because we're all one. i have been called by so many people asking me to help. actually, the one who knew about it was our first lady, right? she was telling me, can you help. you want to give a little statement on that? >> i'll be working with state department and we hope to get him home soon. >> we're going to see.

we've had a very good relationship with sweden. he's being held, as you know, in sweden. we've had a very good relationship in sweden. that's pretty much it. thank you all very much. thank you very much. hopefully we're in good shape with the debt ceiling. i can't imagine anybody ever even thinking of using the debt ceiling as a negotiating wedge. when i first came into office, i asked about the debt ceiling and i understand debt ceilings and i certainly understand the highest rated credit ever in history and a debt ceiling and i said i remember to senator schumer and nancy pelosi, would anybody ever use that to negotiate with. they said absolutely not, that's a sacred element of our country. they can't use the debt ceiling to negotiate. and don't forget, president obama, during his eight years, he created -- he doubled the debt. you take every president, every

president prior to president obama, he then took it and doubled the debt, over $10 trillion. $10 trillion with a "t," not a "b." not a million, not a billion. president obama put $10 trillion, he doubled the debt. it was 10, it went to 20, went to even above 20. some of it is attributed to him. so when they start talking about using the debt ceiling as a wedge to negotiate or things that they want, they have told me very strongly they would never use that. that's a very very sacred thing in our country, debt ceiling. we can never play with it. so i would have to assume we're in great shape. just remember also, the previous administration doubled the debt in our country. you take all of the presidents that came before, double the debt. pretty big statement. certainly it's a big statement to be talking about for that

party to be talking about using the debt ceiling and i don't think they are. it's been mentioned but i don't think they are. i don't think anybody would want to play that card. reporter: -- looks like he's going to be the prime minister. what do you think of him? >> i like him. i like boris johnson. i spoke to him yesterday. i think he's going to do a great job. i think we're going to have a great relationship. i think they've done a very poor job with brexit. i think the previous prime minister has done a very bad job with brexit. what can i say? it's a disaster and it shouldn't be that way. i think boris will straighten it out. i like boris johnson, i always have. he's a different kind of a guy but they say i'm a different kind of a guy, too. we get along well. i think we'll have a very good relationship. thank you. reporter: [ inaudible ]. >> yeah. there is ongoing tension between japan and korea. in fact, the president of korea asked me if i could get involved. i said how many things do i have to get involved in? i'm involved with north korea on

helping, i'm involved with so many different things. we just did a trade deal, great trade deal with south korea, but he tells me that they have a lot of friction going on now with respect to trade, primarily with respect to trade, and japan has some things south korea wants and it asked me to get involved. so maybe if they would both want me to, it's like a full-time job getting involved between japan and south korea, but i like both leaders. i like president moon and you know how i feel about prime minister abe. he's a very special guy also. so if they need me, i'm there. hopefully they can work it out but they do have tension, there's no question about it. trade tension. thank you. thank you, everybody. >> thank you very much. neil: all right. this was an event meant to honor the surviving apollo 11

astronauts. in the room, buzz aldrin, who walked on the moon with the late neil armstrong. neil armstrong's family in attendance in the oval office. michael connell has been a critic of the president but on this day we xhet racommerorate h anniversary of the moon landing. i do want to update you on something the president said that i want to make sure we get our facts right. the president saying about the $10 trillion in added debt, about 9.5 under the obama administration. at this point in his presidency, donald trump is running ahead of that by about $350 billion. big difference, of course, barack obama came into office in the middle of a meltdown, i'm not playing politics here, but the numbers are and at the rate

we're going, this president if he were to serve full two terms, would exceed that debt level and then some. so he bemoaned the fact the debt piled up under the administration of barack obama, it did indeed, but it's piling up at an even faster rate and pace under this president. that's not to cast aspersions. blake burman following all of these developments at the white house. blake? reporter: just to jump off of that for a moment, keep in mind it was the office of management and budget which is an arm of the white house that said this week that the 2019 deficit, the 2019 trump administration deficit, is expected to be $1 trillion. should this president of course get eight years in office, as you just mentioned, as far as the eye can see it would be trillion dollar deficit after trillion dollar deficit after trillion dollar deficit and so on until the end of the presidency, at least as it stands right now. speaking of right now, democrats and republicans are trying to figure out a budget deal that would be paired with a deal to

raise the debt limit. remember, it was the treasury secretary steve mnuchin who sounded the alarm in recent days saying this needs to be dealt with before congress leaves for its summer recess, by the beginning of august. here's what i can tell you in speaking with sources across washington, d.c. today on this matter. nancy pelosi earlier this week had said that she wanted a debt ceiling agreement by today, by friday, so that they could potentially put it on the floor of the house of representatives next week so that they could just sort of wrap all this up and move on before the recess. my sources are telling me that most likely ain't happening today. that they are moving in the right direction essentially, but there is still some work to be done on that front so it appears as if that the debt ceiling budget deal still has some room to run, still has some work to go. as you heard the president say there, he is criticizing using the debt ceiling as a negotiating tool, but as you know, for years and years on end

dating back, if you were to sit there and take a look at democrats and republicans, all across washington, d.c., who have used the debt ceiling as a negotiating tool, you could go guilty, guilty, guilty, guilty for both parties all across the line for many, many years on end. one other thing of note that i thought was interesting. the president noting that the first lady melania trump has gotten involved with the asap rocky case, prominent musical figure who is now in detention in sweden. this caught the eye not only of the president but also the first lady and the state department. neil? neil: real quickly on the debt stuff, i'm glad you mentioned debt slash budget. this president has used it as sort of his predecessors have to get their way, it's just the nature of the beast, and both parties play this game, but to say that he didn't, that's a misstatement. reporter: everyone would say

that the debt ceiling should not be weaponized and we have heard the treasury secretary, even mitch mcconnell speaking to maria the other day saying, trying to sort of tamp down any fears that the debt ceiling will be touched. everyone agrees, do not weaponize the debt ceiling. democrats and republicans weaponize the debt ceiling to try to get something on either end. it's just one of those things that happens. but at the end of the day, it's something that they eventually agree on. the question in this case is, are they going to get a deal that would push the debt ceiling potentially two years down the road and most importantly politically, past the 2020 election, or are they going to have to do something in the interim and deal with it in most likely october, november of this year. neil: all right. blake, great job. thank you very much. blake burman at the white house. again, sometimes you can blur the lines of the debt ceiling and not coming to a budget accord and all of that, but again, that kind of thing does threaten if you don't raise it or push it back or do something to avoid, you have a government shutdown and then of course you

have to worry in that event how far you push it and what do you risk, what bills do you pay or not pay if you're hitting that level. but this president has been embroiled in that just as almost every president before him. i do want to stipulate here, without playing politics when it comes to this issue, they all play politics, including donald trump. let's get the read on all this. moody's capital market chief economist john lonski, fox news anchor brett larson and mary, i want your take on where this debt ceiling goes. the market isn't panicking because they think they will come to some sort of agreement. we play fast and loose with this stuff. >> we sure do. i think the markets remember in 2011 how it came so close to the brink and the result of that was deleterious. you had the s&p downgrade that came even after they reached a deal. they finally came to an agreement and still s&p downgraded the credit rating of the united states. neil: it was a circus. that's how they described it. >> exactly.

that hurts the long-term credit of the american institutions so trying to convince investors that, you know, that's okay and we'll be able to surmount that this time, there's that memory for sure, but at the same time, how do you price that? how are you supposed to trade around that? there's nerves absolutely, but i think it's hard for the market to get ahead of that and really try to anticipate anything and it's like i'll deal with it when it comes here. neil: think about it tomorrow kind of deal. we always get this thing settled but we are always punting. >> the funny thing about it, of course, as the other guy said, the markets don't really care. they're not concerned at all. the ten-year treasury yield is just above 2%, we're looking for the fed to be cutting rates fairly soon. neil: 4%, 5%? >> that's what we're waiting for. that's when washington will be forced to take action, when we reach that point where foreign investors have had their fill of u.s. treasury securities, don't want to buy any more and that has the effect of pushing benchmark interest rates, mortgage yields, corporate bond

yields and everything else higher and higher and higher, and washington will be forced to bite the bullet. neil: you know what's interesting, the back-and-forth on this, forgetting the fact, i think it's always risky in washington, blame the other party for problems like that when you are compounding it yourself. neither party, to mary's point, ever gets a handle on this. >> well, it wasn't -- it was the republicans who pushed through the tax breaks that have led to a large chunk of more additional debt and then, you know, they are crying foul over say funding the 9/11 victims compensation fund and saying, rand paul saying that's going to cost too much money. wish he had that concern when he signed off on the tax breaks. neil: to be fair to rand paul, we had him yesterday, he did have a provision in that that was in the original tax cut to pay for them. be that as it may, it does echo a point you raised that they do play fast and loose with this. >> they do. they do. we see a lot of, you know, large tech companies that are the big money makers, the big companies

now are, you know, stocking cash overseas so that they can keep it safe from all the whatever is happening over here, changes to tax law or increased national debt or just, you know, waiting around for congress to raise the debt ceiling. neil: know what's interesting, we did under, you know, the years of bill clinton and the internet boom certainly helped and the market boom, to john's point earlier prior to this certainly helped there, but i don't know if you can grow your way out of all this debt at these levels, but you can certainly reverse what has been the deficit trend now, trillion dollars plus. what do you think? >> i think that would absolutely be a very powerful thing. if there is a movement in that direction, i think that would assuage a lot of the concerns. you've had all this rhetoric changing around what is modern monetary theory, does this matter, actually, if we have a deficit. at what point does it start to matter. there's this conversation that makes a lot of people real nervous so you actually backed away from that and focused on reducing spending or reducing the debt and just kind of

rebalancing. i do feel like there would be kind of, it would take a lot of the heat off. neil: yeah. another idea that's bandied about, why not drop this whole debt ceiling thing and don't go through this kabuki theater, maybe make it, you know, debt to gdp or whatever, percentage, or don't do it at all. what do you think? >> one of the problems with that is it may again tell the rest of the world you don't really care about the debt ceiling and that could have adverse implications for the u.s. dollar exchange rate and it also could create -- neil: aren't we the only major power that has something like that? >> but we are the major power. we are the world's most powerful economy. let's not forget. the u.s. dollar is still the world's vehicle currency. we want to keep it that way. the u.s. treasury bond market is still the benchmark credit market for the rest of the world. we want to keep it that way. if the dollar falls out of favor, if foreign investors begin to price securities off of something other than u.s. treasury bond market, then we got to become nervous.

that might be the forerunner of a potential downgrade for u.s. credit. neil: we had that even before, once it was done, right? >> i'm curious, i feel like it's not necessarily clear to me that the debt ceiling is necessarily the thing keeping all that in check, right. i think your point about the treasury market being the most liquid, the deepest, i think our laws being enforceable is probably a big part of that. >> i want to add one thing. looking forward, we have a huge headache trying to control government spending. that's a simple aging of the u.s. population. my goodness. i'm already there. 65 and older, 1.75 million new americans turning -- going over the age of 65 in that particular age category. meanwhile, the working age population, 16 to 64 years of age, that's growing by about 350,000. neil: mary is happy to pay for us. >> i got you. >> we'll be working for a long time. neil: this is not a problem in the eyes of many.

>> it's certainly not weighing heavy on the minds of millenials concerned about the debt ceiling or any of that stuff. i think we're raised in this i'll think about it at some point, we don't have to worry about it now. neil: guys, thank you very much. i apologize, we are truncated with those remarks out of the white house. you did see buzz aldrin and michael collins there saying this is not what we signed up for, this back-and-forth. it is what it is. meantime, we've got this heat wave gripping much of the country right now. new york's mayor has said, he's advising all new yorkers, they are putting out an edict set your thermostat no lower than 78 degrees. that's hot in and of itself. there are a lot of people who say that will at least avoid all these utilities from going kablooey and they don't want that. we are keeping on top of that. also keeping on top of liz warren talking about the heat, she's turning it up on wall street. we did the heat thing. all on basic cable. more after this.

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neil: what if we went back? what if we really reenergized ourselves, did the jfk thing and made it a mission to land a man on mars before this decade is out? that's probably a little soon. maybe the next decade. let's get the read from microsystems co-founder scott mcnealy, all things technology. i want to go into this, the more terrestrial concerns like china, but i'm wondering if that's what would give this big technological boom beyond what we have already seen, if space was a center goal again.

what do you think? >> i think there are so many different areas of technology that need to be invested in. i think space would be maybe a little bit too narrow. i think the most important thing we can do is reduce regulations, you know, enable the private sector, enable -- i mean, it's interesting that the private sector is driving space very aggressively right now. so i'm not sure, i'm not a big government guy. i'm not into the government solving problems. it just sort of grates at me to think we want to put them in charge. neil: but if they were these private enterprises, we were somehow able to coordinate all of that, get this national sense of urgency that we've let this slip by where all these other countries all the way from china to luxembourg are exploring space when we sort of reduced ourselves to hitching rides to get astronauts into space, and that is something we should not let others dominate.

what do you think? >> i'm not -- i'm just not sure i want to live on the moon and i'm not sure that mining on the moon is going to really change our lifestyle. i think we have so many other terrestrial issues today that we ought to be focused on those and the government ought to spend less time on redistribution to buy votes and all of the weird things they seem to be voting on in congress lately. i think we need to get back to getting the private sector at work, getting everybody a job, making sure our schools are teaching stuff that's useful and move forward from that perspective. then i think in a few years we might have a lot of investors who have cash and i know there's some good investments in things like leo labs, which is managing and watching all of the pace debris, you've got elon musk doing spacex and lots of other companies that are driving that. if we give the capital markets that money, they will find good reasons for doing investment in

all things aerospace and space technology. neil: you know, whether we ever get back into space, i do know in the meantime, there are a lot of companies leaving china. i'm wondering what you make of that now, whether we get a deal or not, if the die has already been cast with so many companies shifting production out of that region, some nearby places like vietnam and thailand, whathave you, but clearly hedging their bets. what do you make of that trend? >> well, you know, china's an enigma. it's the biggest market but it's quite closed. i don't think we have fair trade agreements across the board with china when you look at how well we protect intellectual property here versus how well they protect it there. if you look at their blocking internet service companies here from competing in china, if you want to go to china, you have to do a joint venture and nobody believes that the tariffs and

trade equity is there in what would be called a fair environment. china is not a tiny little economy anymore. they're the second largest, i believe, gdp, and growing like crazy. i think it's time for a fair deal. there's got to be -- there's going to be a lot of fighting and screaming and kicking to get them there, i believe. neil: what if we never get one? >> get one? neil: a deal. >> a fair deal? neil: yeah. >> you know, we haven't had fair deals with most countries around the world because we have been quite benevolent there. i think at this point, i think the leadership is saying why don't we make it a little more fair at this point and everybody ought to earn their way. neil: do you get a sense right now that so much of the market is obviously looking forward to a deal, if it were to come to pass, i guess even if they don't get a deal, the federal reserve will have everyone's back by lowering interest rates so we're

in a kind of can't lose situation here, i always get nervous when i hear can't lose. what do you think? >> yeah, you know, i was listening to the conversation just now about the debt and does it matter. well, of course it does. quantitative easing is fundamentally growing -- it's allowing the deficit and it's growing the money supply which reduces the value of the dollar and a devalued dollar is a tax on every income and asset in u.s. dollars, and it's basically quite a regressive tax on all americans, when we go out and print money and run a deficit. it is absolutely -- and politicians love, even donald trump loves a devaluing of the dollar because it makes the ability to go buy votes and to pump up the economy in a fairly dangerous way while taxing people without having to vote on it or say yes, i approve of a tax. nobody thinks of a deficit as a

tax, but it is. neil: it is indeed. scott, very good seeing you. try to stay cool, of course, where you are that's not a huge issue right now. but thank you, my friend. good seeing you. >> thank you, neil. take care, bud. neil: number one toys "r" us was thought to be dead. they're back. jardiance asks: while managing your type 2 diabetes- why think about your heart? because with my type 2 diabetes, i'm more likely to have a fatal heart attack or stroke. lower a1c helps, but type 2 diabetes still increases my risk of a fatal cardiovascular event. because type 2 diabetes is more than a1c. wow-these are great answers! and that's why there's jardiance- the first type 2 diabetes pill that offers a lifesaving cardiovascular benefit for adults

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her new plan would do three major things. it would block private equity firms from selling a company's real estate, then leasing it back to them for the first two years after they purchase a company. it would also block companies from taking, monitoring or transaction fees out of the company that they buy and it would also hold private equity firms responsible for the debt they incur. >> my plan says you got to stop doing that. if you want to buy up businesses, that's great, but you can't buy them up just to crash them and sell them for parts. reporter: the idea isn't going well with industry experts. the american investment council ceo drew maloney issuing this statement in response. quote, private equity is an engine for american growth and innovation, especially in senator warren's home state of massachusetts. extreme political plans only hurt workers, investment and our economy and neil, senator warren is teaming up with congresswoman ocasio-cortez, issuing a letter

to sun capital, the private equity firm, over how they have handled the discount retailer shopco. in this letter, they accuse sun capital of essentially looting shopco, driving it into bankruptcy, then also reneging on a promise they made to workers to offer them a severance package. neil: thank you, hillary. it's still early in this political season. meanwhile, at the corner of wall and broad, the dow is up about 80 points. microsoft, a big contributor there, hitting new highs as their cloud revenue continues to impress investors and users. gerri willis on that and much more. gerri: that's right, nice day down here so far. the world's only trillion dollar company, microsoft, soaring to new highs today, and wall street believes mr. softy can go higher. citigroup raising target prices on the stock to $147. all that optimism stemming from a blowout second quarter

earnings release beating on the top and bottom lines. the company reporting record revenue, growing at 39% in a very crowded field. meanwhile, fast food [ inaudible ] buying pioneer foods to boost its presence in fast-growing africa. pioneer based in south africa makes cereals, juices and other food staples. pioneer shares surged 29% on the news. pepsi down 1.3%. meanwhile, ab inbev agreeing to sell for $11 billion. shares higher as you can see. and finally, maybe the heat wave has folks worrying about their ac and snapping up generators. i haven't bought one yet. are you buying one? neil: i'm getting concerned with the heat thing in general. if i'm not careful here, i could lose faith. gerri: drink water.

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neil: all right. we have some dangerously high temperatures, in fact, triple digit temperatures that are already or will soon be gripping about half the country, two-thirds at least in the 90s. to nyu langone health doctor.

it's interesting, i was looking at the breakdown of this. it is so widespread now that fully two-thirds of americans are going to be impacted, many of them vulnerable to the very kind of issues you raised with me in the past that could really compromise their health. what do they do? >> that's right. so first of all, i just want to make sure everyone understands this is not just about feeling sticky and uncomfortable. this is a real health hazard, particularly for as you said certain vulnerable populations. we are talking about the elderly, young children, anyone with a chronic medical condition, but especially those with asthma or heart conditions. they're more susceptible developing not just heat exhaustion but heat stroke which is a potentially fatal condition. what should we all be doing? you want to stay out of the hot, humid temperatures. stay indoors whenever possible with the ac going, stay in the shade, if you have to be outdoors. avoid strenuous exercise. i'm always a big believer in exercising but not outdoors on a

day like today. and you want to stay hydrated. you definitely want to be drinking fluid, water or fluids that have a lot of electrolytes because when you sweat you lose sodium and potassium. you want to really keep up with that and take care of your loved ones who may be elderly, might not have access to air conditioning. make sure that they're okay. neil: you know, doctor, there are a number of states and cities that are taking precautions to open up public centers that have air conditioning and the like, but the message seems to be if you're outdoors, try to avoid that, but if the power goes out, then all bets are off. what do you do? >> well, first of all, you should know to learn to recognize the symptoms of heat stroke because if you see anyone who is undergoing those symptoms you want to call 911. that would be a rapid heart rate, rapid breathing, if you see someone who is having nausea, vomiting, they complain of muscle cramps, anyone who is showing an altered mental status. that means confusion or even just irritability although we all get a little irritable in

these temperatures but some changes like that should prompt you to get immediate medical condition, and while you're waiting for that to arrive, anything you can do to cool off the person, move them into the shade if you can't get them into an air conditioned room, a cold towel, even just cold water or a hose on this person could potentially save their life. neil: well said. doctor, thank you very, very much. very wise words to live by and for those in good health and compromised health, do be aware. half a century now after man landed on the moon, the guy now is setting his sights on mars.

can't see what it is yet.re? what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice. this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these. that is sharp. the all-new chevy blazer. speaks for itself. i don't know who they got to design this but give them a cookie and a star. you know what i'm talking about when your little grandchild starts talking to you. something i couldn't hear for a long time. (wiley) it's funny how something like just a hearing loss can have an effect on a relationship. (melissa) somebody would ask her something and she would just walk right past them. (deborah) i just could not hear. (avo) these are real people who are now living life to the fullest.

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spacecraft. [ inaudible ] with significant maneuvering capabilities. that's a great disappointment to me. neil: all right. buzz aldrin, who will be my special guest tomorrow, by the way, talking about this on the formal anniversary of his and neil armstrong's walk on the moon 50 years later, saying that you know, this pursuit of the moon and everything else, we've got constellations, everything else, set sights on mars, whathave you, but big goals remain and he wants to see it. robert, good to have you. there is this idea of i guess a competing thought here that the moon is the launching point to get to mars. i hope i have that right. buzz aldrin, saying why should it be? there are other things you can do there, absolutely, but do you need that as a launching point? what do you think? >> no, we certainly don't need the moon as a launching point to

mars, and you know, equivalent of apollo for us today is not to return to the moon in five years, it's to get to mars by the end of the next decade. i think we can do it. now, to even get to the moon by 2024 which is the goal that trump has set, we need to have a purpose-driven program instead of a vendor-driven program. right now, nasa is choosing the most expensive way to go to the moon they can think of. they say they have to build a moon orbitting space station before they can go to the moon. they are saying they need a mars orbitting space station before they can go to mars which is beyond satire. what they are basically saying to trump is you can't do your program until we do our program. he's got to put his foot down on that. but beyond that, he needs to take advantage of the new capabilities that are enabled by the entrepreneurial space revolution which is what i talk about a lot in my book "the case for space." we have this revolution in space flight going on. we have space launch vehicles that are mostly reusable that cost one-fifth of what they used to cost.

and you know, with falcon heavy, which is operational now, and the dragon capsule which is almost operational now, okay, we could easily make it to the moon by 2024 and that would reestablish nasa as a can-do organization. by 2024, spacex will have their starship reusable heavy lift vehicle and that will available mars by the end of the decade. we have to embrace these goals and embrace the free market that will enable these goals. neil: you know, the late great astronaut on this show many, many times, the commander of apollo 17, he admired and this is before it got to the degree that jeff bezos and elon musk have gotten with their private space ventures, he admired all that but he said you need a bigger entity enwrapping all of that, that we as a people, maybe government is too trite, have to commit ourselves to what we committed under john f. kennedy. what do you think of that? >> well, i agree with that,

actually. i think we need nasa but we have to first of all give nasa clear direction, moon by 2024, mars by 2030 and not to engage in diversionary projects like lunar orbitting space stations and mars orbitting space stations we don't need and we also simultaneously have to free nasa's human space flight program to be purpose-driven and not vendor-driven, to actually spend money to do things, not do things in order to spend money. for example, right now, falcon heavies are available that cost $150 million a launch but nasa has baselined for their moon program a launch vehicle which isn't even flying yet and which will cost $1.5 billion to launch, ten times as much. and they're baselining a capsule which weighs 26 tons, so heavy that even the fls can't get it into lunar orbit with enough fuel to come home instead of dragon which only weighs tendons and which not only fls but even falcon heavy could get into

lunar orbit -- neil: they all kind of compete with each other, right? we have to sort of accept common standards but in some of the more private enterprises, they are territorial, right? >> yeah, they are, but see, a free market requires not just free competing suppliers but free customers, free to choose. nasa needs to be free to choose the cheapest and most effective launch vehicles in spacecraft. they're not right now. they are being compelled by politicians by senator shelby saying you must use the sls because it's being developed in my district. as i said, this is talked about in my book "the case for space" but if we can take advantage of this entrepreneurial space revolution which has caused a reduction in the cost of space launch by a factor of five in the past ten years and is promising another reduction in the cost by a factor of three within another five years, all these things are going to be possible. we need determined leadership and we need to take advantage of the free market and yes, we can

duplicate the achievements of apollo, we can show that we are still the kinds of people we used to be, okay, and but not only that, have cost effective human space flight program. humans on the moon and mars to stay. neil: all right. we will watch it closely. very good having you. i appreciate it. >> my pleasure. neil: in the meantime, you know, there's a little story that goes around maybe on this, the 50th anniversary about john kennedy saying in a speech to land a man on the moon before the decade was out, and a couple of people asked him which decade are you talking about. of course he was saying the 1960s, a few years prior to our landing on the moon. he never got to see that. but do we need big visions like that where people actually say you're crazy to even be entertain them? buzz aldrin says yeah, we do. after this.

neil: have you been following this deep space thing? it's a threat supposedly from abroad that criminals could take advantage of it by impersonating ceos stealing from companies, all of a sudden to get an image of yourself at a certain age, it gets kind of deep, but suffice to say bad guys can take advantage of that and now a lot of people are advocating just don't use this technology here. easier said than done. our panel is back with us. one of the things, by the way, john lonski, mary childs, brett larson. a lot of people are saying first of all, what goes on here, how do you take advantage of this? what's going on? >> it's kind of horrifying, what's going on. what they're basically doing is they've taken talks and speeches these ceos have given which is

their actual voice, they plugged it in with some artificial intelligence and kind of made it into, for lack of a better term, they have made it into a siri that you can basically have it say whatever you want in the voice of this other person, and they haven't -- neil: is it that accurate that it would fool you to think this is my ceo talking? >> it has fooled people over the phone. granted, when you are talking about a phone call, the quality doesn't necessarily have to be better. i would imagine in a situation of a phone call if it was someone saying this is urgent, i have been kidnapped or whatever the story that it is that they set up, you might let it slide a little bit that the quality wasn't great, it sounded like he was far away or she was far away, but it's horrifying. the deepfake videos we have seen where they have former president obama saying something or mark zuckerberg saying something, those, you can kind of look at and say wait a minute, these guys clearly didn't say this stuff. but imagine getting a phone call

from someone who is literally the voice -- neil: but that looks real. >> if you glance, you might do a double take. i'm sure we have all gotten the phishing e-mails that use every psychological trick in the book to get you to respond to it. i have gotten the instant message from friends who say, hey, my wallet's stolen, you need to wire me some money. like your wallet's stolen, you are sitting right across from me, why are you messaging me on facebook. but in this instance, this is a very terrifying use of deepfake technology. neil: i touched on it because i joined together part of the same thing, the face app issue, and there, there's another thing if you're not careful, all of a sudden what? >> right. this face app that everyone is downloading just makes a picture of you where you look more old. like that's literally the utility and yet it gives access of all of your photographs, your content, your face -- neil: so you download that app -- >> i would not, but yes. neil: right, but you're giving

it access to all your photos. >> exactly. this company is based in russia. we don't really know what they're going to do with all of this content. they don't say, obviously, why would they. but functionally, if you kind of add things up and you give your paranoid self some leeway here, you could suddenly appear in a video saying things that you don't support like you just gave them access -- neil: this is like a shutterfly kind of deal, these are my pictures, you want to make an album out of it? now there are more nefarious elements involved. >> definitely. i had a weird experience two weeks ago. i got port hacked, where they hack the port on your phone. i think they were looking for bitcoin. i don't have any bitcoin. i don't have any money. it ruins your two factor authentic atio authentication. everything you set up at your backup security, you get locked out of everything. neil: that's why john doesn't even own a computer. >> you know, here's what's troubling about this. this is really costly for society. here we have a new type of

criminal activity that we have to be on the lookout for all the time. neil: it's a cool idea, you can do an older version of yourself. >> as you are alluding to, it makes me not trust high technology. do i really need this? what type of trouble might this get me into at some point in the future? neil: toys "r" us is coming back, a couple stores. i guess it's not dead yet. what do you guys think? >> listen, i wish they would bring back the times square store. that place was amazing. there was a ferris wheel. they had a giant section of legos. you could build the empire state building. these are important things for the children in our life. i would point that out. i think toys "r" us is a side effect of amazon. i don't think kids now, kids these days, don't have the joy

of like running through the aisles of a toy store with all the fun stuff to play with. >> that's something that -- sorry, one person bidding on toys "r" us last year was saying, a toy maker, says it's so critically important to have that ability to test toys in the aisle, so these new stores will allow that. but they are making it much more difficult for the suppliers, the toy providers, it's much more speculati speculative. they put these toys out, the kids test them but they can return it. it's not like they bought the imagery in the store. neil: where do kids go today to get toys or sample them? walmart, i guess? >> target. they can look at what amazon has to offer. getting back to toys "r" us, the real story we are overlooking, why did it go under? it went under not because the business model, the business was weak. it went under because it had way too much debt. it turned out that maybe cash flows weren't as great as -- neil: bad leveraged buyout. >> that's what happened. what elizabeth warren is talking about is basically what happened

to toys "r" us. neil: but there was a lot of venture capital that went into that to begin with. they paid rich dividends and you can't police the business model. >> nowadays with this latest run-up in leveraged loan activity, i come across these names, these businesses i never heard of, they are borrowing one, two, $3 billion in leveraged loan market. you wonder what's going to happen when the economy sours. neil: you've got to get up on this technology thing here. >> start with an iphone. work your way up. neil: all right. guys, thank you all very, very much. lot of breaking news. dow up 66 points right now. the temperature is about 200 degrees. what is it on the surface of the moon? close. after this. ♪ all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route.

obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually. test test

neil: coming to america so much more, eddie murphy could be start in netflix.

joe piscopo an alum. charles payne. to you. charles: neil, thank you very much. good afternoon, i'm charles payne. this is "making money." we're back in the green. big names helping the stock market. the breadth also helping with driven by corporate profits as first week of earnings season in the book. i will tell you how-to book and invest profits, not the same as earnings. i will teach you that. the fed, he joins most investors hoping for rate cut. i say the commander will be thrilled by the new thinking by powell and company. it was 50 years ago tomorrow. apollo 11 astronauts made the first visit to the moon. we remember the historic moment. that and so m