room should this intensify. market dropped the 900 points. david: i rather that. as long as we don't get into negative interest rates. that is place i don't want to be. i don't know about neil cavuto. neil: that is a good opinion to have. we're following latest developments on china interest rates. what is going on now has nothing to do with china interest rates but tensions in hong kong. this is the 8th busiest airport on the planet. it handles 72 million customers a year. right now there is growing fear, that it is not going to handle anything approaching that volume in the days, and weeks going forward. xi xinping is indicating he might, might step in here. now the bigger question is, he is talking about trade or hong kong or both? and then all the questions after jeffrey epstein's death leading to more questions than answers. we've got the latest. legally how this could stack up

in an ongoing investigation that now has its principle player dead. but first stocks in and out of session lows. though not as low as we were earlier on, on the first hint of trouble in hong kong, the 10th straight weekend involving the airport. susan li at the new york stock exchange. hey, susan. susan: neil with all the uncertainty we have investors running into safety. 10-year treasury testing a new three-year low. 166 basis points, that is below the borrowing rate from the u.s. federal reserve. industrial, energy, consumer cyclicals all those names being sold off. in rather what i would call you a thin volume summer trading day. some of the moves might be more exaggerated. mcdonald's, home depot, accounting for 1/3 of the dow's losses. the vix surging above 20. 20 is not out of the realm

possibilities. it is not panic levels. we have to look at volatility. goldman sachs getting all buzz on the trading floor. we started out with goldman putting out a note, chances of recession have now increased. there will be no u.s.-china trade deal before the 2020 election and 10% on $300 billion worth of goods will be going into effect on september the 1st. that is impacting sentiment. look what is happening on hong kong. traders are looking at this, given hong kong is financial center for the asia-pacific for the long time. gateway for investing for international investors. 8th busiest around the world. handles 1100 cargo and passenger flights. it was shut down in the mid-afternoon on monday. reopen on tuesday morning this is after thousands of protesters after the three days strike in the airport, basically shut down the entire terminal. take a look at these disturbing pictures as well. you know, for people that have

lived in hong kong, it is really disturbing, almost sad to look at 24 -- this with hong kong police firing tear gas into the subway station. there are reports that people lobbed petrol bombs at police. the hong kong airline, cathay pacific, lowest day in three days. there are reverberations not just politically but financially as well. neil: susan, you know the region as well. how is it possible thousands can occupy a airport? susan: not like they were not looking to shut down the transport hub. we got done with three days of a protest sit-in. the hong kong and government and police shall we say were surprisingly unprepared for this. given the activity we've seen in the hong kong terminal in weeks on ends, days leading into this,

i would say it is a little surprising. neil: thank you very much, susan li at the new york stock exchange. she had mentioned cathay pacific the big hong kong carrier, some of the duress it is feeling, it is actually urging customers to postpone non-essential travel. think about that a second. an air carrier saying if you don't have to fly, don't. s that warranted? is this fear and anxiety getting over the top? independent women's forum claudia rosette said these are biggest rebuke of beijing since tianamen square. that is scary in itself, huh? >> the problem is not the protesters. i watched them there at the airport. they were entirely peaceful. what they're asking for is freedom. that is what they're asking for, you would ask forfeit china was busy imposing its rules on you, me, or anybody. and, the question is, how does

this end? we're seeing what we're seeing right now, is actually incredible bravery on the part of the people of this marvelous city of hong kong. neil: so, when you talk about they want freedom, this is advanced a little bit beyond the extradition issue, right? where are we, now? >> sure. extradition was just extradition bill was just one more step in this -- china has been stripping away all the promised rights and freedoms that hong kong was supposed to have for 50 years after the british handover. it is only 22 years in. we've seen kidnapping of critics of beijing. we've seen the disqualification of legally elected democratic lawmakers. we've seen the stripping away of the promise they could actually elect their own chief executive. they can't. that is rigged by beijing. one of the big problems here there is no actual political dialogue. hong kong's people are asking for things they were promised

and they're getting absolutely unyielding blank from the chief executive who serves beijing, knot hong kong, and from beijing. you are seeing a free society running up against the world's most powerful tyranny. that is what we're hearing. that is what people are talking about at the airport. that is what this is about. neil: the chinese are pointing a finger at us for fomenting this protest movement. we put out a statement, that is from the administration, the u.s. continues to monitor developments in hong kong, urging all sides to refrain from violence but, it is the first official statement we've had to cool it, but i'm wondering if it is too little too late now? >> neil, the whole free world should be speaking up to support the demands the people of hong kong. these are reasonable demands this is what they were promised under a treaty between britain and china. china is violating that promise.

that's huge. to go under tyranny like china's is a terrible thing. we sympathize with people when they try to fight that. that is what we're seeing through, again this was a peaceful demonstration. they went to the airport. they put up posters. they were particularly angry today, although they were peaceful because a nurse who was helping, they have medical help at these demonstrations because the police have been using a very potent tear gas and rubber bullets and batons. a nurse shot in the eye with a rubber bullet. they were there to say they don't want hong kong police doing that. basically hong kong police have been put in the position by china, and the china hong kong government of being leading edge of china policy they have no actually mandate to negotiate some deal with what the people want, but they are simply being sent out there to stop these protests. that is why you keep getting

this violence. hong kong people have no other way to make their will felt in their own politics at this point than to turn out in the street. that is china's doing, not, people of hong kong. neil: claudia, be safe for yourself. independent women's forum policy fellow talking to us from hong kong directly. what would happen if china intervened in the protests and all bets are off? consensus view says they will not, being the economic juggernaut they are today will risk anything like they did 30 years ago in tianamen square? is that a given. gordon chang, former vice to vice president dick cheney, john hannah. this is the first time the administration spoke out what is happening in hong kong, to the degree it is urging both sides to provide some calm here. things are not calming down. what do we do?

>> i think, what claudia said, neil is right. that the united states is actually very late to this extraordinary series of events we've seen happening in hong kong over the last 10 weeks. and i just say in the context of what is also happening in russia, the free world needs to stand up and take notice. without giving people undue belief we'll somehow ride to the rescue, we need to be sending a very strong message to the chinese, both publicly, especially privately together with whatever posse we can organize in europe and in asia. the strongest economies in the world telling china there is only a political solution to this. that if we see anything approaching tianamen 2.0, it will be devastating for the west's relationship with china. for at least a decade to come

this china is economy demonstrating rael weaknesses and vulnerabilities right now. neil: gordon chang, when you you the coming collapse of china 2001, you said they will protect military power by all means and all costs s this at that breaking point where they have to decide do we want to remain an economic juggernaut or will we roll the dice? many figured 30 years ago, we rolled the dice, the world screamed but everything was okay, what do you think? >> it's a militant state, neil, even in good times. what we're seeing right now with xi xinping, i think that he is looking at this, he is worrying about the contagion effect. that the protesters in hong kong are going to inspire people on the mainland. one thing, neil, we talk about the deployment, the formal

deployment of the peoples armed police and peoples liberation army on hong kong soil but there is strong evidence suggesting that you have got mainland officers in hong kong already. the most recent is the video that has been circulating where you have a hong kong riot policeman, who is obviously cantonese speaker, he is from hong kong, speaking colloquial cantonese and he turns around to other riot policemen, starts speaking to them in mandarin and addresses them as comrade. that is not something a hong kong policeman would say to somebody from hong kong. i think warnings have to come right now, they have to get their people out of the hong kong police force. neil: if they're arguing hong kong officials are handling this, and we have faith they will, that is not what they're saying, that is prescription, gordon for a lot more trouble? >> it certainly is. neil, i'm in toronto because my in-laws are celebrating their

55th wedding anniversary. they're getting together. he it is hong kong family. 14-year-old nephew said to me two days ago, gordon. this is civil war. i do not want to go back. that is what we're talking about, neil. this society is disintegrating. i don't think china will intervene, they realize if they did they're in there for years with hundreds of thousands of troops. but nonetheless, we have all got to be gravely concerned. the warnings from the u.s. need to reflect that graphty much more serious than the ones we're hearing right now from washington, john, if we need anymore impediments in trade talks if this is a big one? >> i think it's, it is a, huge, explosive device ready to blow up, whatever issues we've had now in trade. if china mishandles this, neil, if we do see something like

tianamen 2.0, i think it is going to be a dagger in the heart of our ability to right this relationship and get the kind of balance that the president has been struggling for in our economic relationship with china because, i think there will be just such an extraordinary amount of outrage. unless china demonstrate a degree of wisdom and foresighted diplomatic skill here to begin to de-escalate and to get into a real political dialogue on the very reasonable demands right now of the hong kong people, to preserve their civil liberties, which, which xi xinping and the chinese communist party so far have shown absolutely no ability to do, i'm afraid this could get much, much worse. neil: gentlemen, thank you very much, for that insight. just some headlines popping up these days, is cooler heads will prevail.

china knows that the whole world is watching. china won't be doing anything idiotic. i'm not talking about what is going on in hong kong today. those are some headlines from 30 years ago, right before tee -- tianamen square. we have a lot more after this. 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.

from the 5am wakers, to the 6am sleepers. everyone uses their phone differently and in different places. that's why xfinity mobile created a wireless network that auto connects you to millions of secure wifi hot spots. and the best lte everywhere else. xfinity mobile is a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy an eligible phone. click, call or visit a store today.

neil: you had to figure the conspiracy they're would be fast and furious. the justice department investigating the jeffrey epstein death. bryan llenas on all of this. hey, buddy, what's up? reporter: attorney general william barr spoke about jeffrey epstein's death at an event in new orleans. that the doj is looking into irregularities at the metropolitan corrections center

where epstein was awaiting his trial. >> i was appalled, indeed the whole department was, frankly, angry, to learn of the mcc's failure to adequately secure this prisoner. reporter: there are questions this morning about staffing at the mcc because fox news has learned epstein was not checked for several hours, leading up to his death. the union, however, representing the two guards on duty in the unit housing epstein tell fox news the guards were overworked. one had worked 80 hours that week. the union is blaming the federal bureau of prisons and the trump administration saying epstein's apparent suicide can be directly linked to all-time low staffing at mcc over the last three years. quote, we in cp l3 3 have been sounding the alarm for years about the hiring freezes, underfunding, how understaffed our facilities are nationwide, all because of the policies of

this administration. fox news has learned epstein was on suicide watch after reportedly found in his cell with bruising around his neck two weeks ago. he was taken off suicide watch. experts say it is unusual someone to stay on suicide walk for two weeks. it is intensive, constant monitoring for 24/7. fox news learned epstein was alone in his cell at the time of his death which is also unusual. an autopsy has been done by new york's chief medical examiner. she is awaiting more information before determining the official cause of death, something we're told is also not that unusual. these things sometimes take weeks. neil: thank you very much, bryan llenas. the question comes as brian pointed out whether others are involved here or what happens to others brought up in this case. former federal prosecutor on what happens when more information inevitably does come out, and how you proceed with all of this. katy, good to have you. what is next in this, do you

think? >> obviously the criminal cases against the other individuals who are implicated or may be implicated will continue. the death of jeffrey epstein does not necessarily stop any of that, but for the sake of all the alleged victims mr. epstein this prevents them from getting a lot of closure they may have been looking for. neil: so when you're looking to continue the case with those who also are charged with either working with him or benefiting from the same thing, how do you pursue that when the chief culprit is dead? >> quite frankly, the fact that mr. epstein is dead doesn't really change anything with the evidence of these cases. there is no practical reason that we would have heard from mr. epstein directly anyway. so, i don't believe that from a criminal perspective that the cases will be really impacted in any significant way. of course on the civil side, alleged victims can go after his

estate. that is obviously completely separate from all these other prosecutions but you're able to proceed with a prosecution of co-conspirators even if one of the conspirators is deceased. the government can prove elements they need without that person being alive. it doesn't change it from that perspective. neil: does it make it more difficult? >> i don't believe it makes it more difficult from prosecutorial perspective but trials are just as much as bringing justice to a perpetrator as bringing closure to alleged victims. from that perspective it is unfortunate that the bureau of prisons was not able to keep him alive. that is a significant responsibility they have to insure that -- neil: what do you think of all of that, katie? the oddity of it, you heard all the conspiracy theories been advanced but what do you think? >> sure. i think there is a need for a serious investigation here. you have a high-profile prisoner. if somebody wants to kill

themselves they're probably going to find away to do that but we don't know the cause of death here yet. there is lot of questions how he was able to do that, being so high-profile, being previously on suicide watch. manpower goes into these sort of things is significant, it cannot be prolonged indefinitely but there is a lot of questions and people will probably have to answer some hard questions why he was able to do this and how it even happened and who was involved? not to advance any conspiracy theories, but practically speaking how he was able to get the means to do this. why was nobody watching? what exactly led to this. there is certainly all the open questions out there. the bureau prisons has distinct responsibility to keep people alive, they really failed in that regard here. neil: just incredible. thank you so much, i appreciate it. >> thanks, neil. neil: verbal gaffs or just blunders. joe biden's are beginning to pile up, so much so that a

number of democrats are rethinking whether he is the guy. but they're also saying none of the others are the guy or gal either. just who is? after this. there's a company that's talked to even more real people than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand

over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room.

>> i don't see anybody on the stage right now that can take on president trump one-on-one. i'm not so sure his opponent has even declared yet. tough watch guys like bloomberg, hillary clinton, michelle obama, a whole ralph of potential -- neil: where was bannon coming from for that interview? surface of venus? the former confidante of president of the united states said there is no one of that democratic field who can take on the president of the united states, save recruiting michelle obama. he is not the first to say that of course. others are hinting that the field has fallen apart of its own weight. each one brings issues as my next guest put it, their own clay feet to address.

fox news contributor liz peek on what's happening here. you know, we always see this early on where they are doing sorting out. even in a crowded field like this, liz, maybe an outside person, maybe a michelle obama, what do you think? >> michelle obama is an interesting idea, she is now certified the most popular woman in the world. a number of polls came out in december saying that, again just recently. she displaced angelina jolie, no one is talking about angelina jolie running for president. neil: hillary clinton a winner of that? >> she has been -- neil: most admired woman in the world. >> for 17 years, as you can imagine. michelle obama has taken her place. people do like michelle obama. her book was wildly successful. she emerged from the white house years with average of about 66% approval rating. barbara bush had 81%. so it is not unusual for the first lady to do pretty well. but, i think what this really says is, people are looking at

this raft of candidates and they can't find someone who doesn't have a glaring flaw. that is a real problem. joe biden, honestly think if he is the nominee, will be another bob dole run. it was his turn but turns out really nobody is really excited about bob dole. neil: he has made, look, we all make mistakes. >> his gaffs are horrendous though. neil: they are constant. maybe because we are aware there is a gaffe we're more tuned to the next one, that is all people are focusing on, which is why a lot of democratic money guys are saying that this is a problem? >> i think they see it over and over again. it isn't just the gaffs but whole demeanor during the debates where he is so reticent. he was so worried i think at the would tumble over his words and not get it read right. neil: stay safe. >> face it, it is age. he looks like somebody very scared he will make a goof. neil: he is 76.

the president is 72. so, you know, they're both not spring chickens. >> no, but you know, let's face it, donald trump maybe because he doesn't drink, i hate to think that, is incredibly energetic. he is really a force. i don't think you see that with joe biden. but again, so let's say it is not joe biden, who is next? bernie sanders is a one-trick pony. he talked about the same thing for five years and his polling is crashing, people are like, really not going to be bernie. neil: he has a lot of financial backers online. >> it will not be bernie sanders. i don't think so. the polling shows that the more he talks, the more he sort of begins to fade. elizabeth warren has an idea a minute, she is so harsh and hectoring does she want nanny scold for president? i don't think so. neil: why do you put kamala harris in the less nanny scold camp? >> harris was involved in law

enforcement some years. in today's world that makes you suspect. she puts black people in jail. everybody needs the black vote, among democrat, that is huge portion of primary voters in south caroline. 2/3 are black. blacks are not keen on kamala harris, because presumably of her association with mass incarceration. tulsi gabbard called her out on that during the last round of debates. it was a body blow for kamala harris. she has been dishing it out to joe biden, his involvement with the crime bill. his involvement with busing. neil: her numbers have slid a little bit. elizabeth warren has risen. this is momentum kind of thing, regardless what you said about elizabeth warren. she has a lot of momentum. >> she does, she has an idea every 30 minutes. honestly bewildering almost impossible to keep up. but i think at the end of the day, her idea about taking over

the u.s. economy and remolding it and very profound ways, reducing -- she has called herself a capitalist. i don't know a single industry she doesn't want to topple. it is extremely hard to make the case that she admirers capitalism. neil: if the market goes through hiccups and doesn't quickly reverse, what do you make of that. >> she would love nothing more than seeing a recession. she doesn't want to miss that. her heyday, big claim to fame after she took on the banks after financial crisis. that is how america got to know elizabeth warren. neil: foresaw a lot about it. >> i'm not sure she foresaw bit. like everyone, she knew shaky lending was going on. she was involved in creating the consumer financial protection bureau, other people think were protective. they admire her for that. she would love to get back to a

place where that rules the day. neil: she always ruined the curve for the class. she had a plan for everything. you did the same thing. liz peek. we are down 208 points. we shaved 80 points as soon as liz started speaking. great riches will find you when liberty mutual

customizes your car insurance, so you only pay for what you need. wow. thanks, zoltar. how can i ever repay you? maybe you could free zoltar? thanks, lady. taxi! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ neil: took at 10-year treasury down 1.66%. it is not negative like what is going on in germany or

switzerland. not 100 year mortgage popular in denmark. i kid you not. these market forces are in place. fbn jackie deangelis on what this could mean? hey, jackie. >> there is so much talk of negative interest rates of late. 1.66, that is staggering, i thought there would be stabilization here, we would continue to slide. could our rates go negative as we have in other countries? what would it mean? simply put, it means banks pay you to borrow money. if you save, the money that is in the bank, you will pay the banks to hold on to your cash instead of other way around? times central banks run out of options to stimulate the economy. they're worried about deflation. they are worried people hoard their cash out of fear. that would further weaken the economy? while happening elsewhere in europe and japan, has the u.s. ever actually done this? would be pretty shocking if it did.

it would stimulate the economy, business was have incentive to borrow and spend. individuals might be likely to get a mortgage if the bank was paying them to do it f it were to stimulate the economy and stocks went up, presumably if you look at 401(k), accounts would rise. savers are out of luck. he they are penalized if rates were to happen. we're not there but we're close. neil: we're close. think of it, a buck 66, we're at zero. thank you very, very much, jackie. meantime we want to get the read on this. what this could portend. in other words, if something like that came here what would be ramifications? fellows who are very smart following this, we know something about cycles in the economy, markets, et cetera, i'm talking about greg valliere, jared levy. it seems crazy, but on negative interest rates, are the reality for some of the largest european industrial powers?

>> monetary policy and on steroids. we're spending like no tomorrow. the consumer in good shape. labor market is red hot. 2% growth, no prize, but it is an easy bar to clear. neil: jared, one thing comes up, not good if you're a saver, if you want to leverage some things, like a lot of businesses do, potential homeowners do, refinancing debt they have, it could be a weird advantage, right? >> yeah. you can easily think about the devastating effects if you're, if you're a little more old school or baby boomer used to putting your money into a cd. you think about it, right. neil: do you have a problem with baby boomers, young man? >> i have a zero problem with baby boomers by the way. if you were the guy -- neil: i'm kidding. i'm kidding. >> [laughter] think if you're the guy who is paying tens of thousands of dollars a year in mortgage interest, right? you go ahead as a family,

refinance that. all of sudden that several tens of thousands of dollars goes to near zero. now you have got money to throw at an investment. as we've seen happen, happening across the world, pensions, everything. they're not putting stuff into treasurys. they're required to right now. that is were the hiccup is. we're investing, putting into stocks, buying real estate. which by the way i think in my mind will fill a big gap, continue to fill a gap in people's portfolios as real estate investment, multifamily housing, things of that nature. neil: jared is too young to remember this, if you think about it, we're now reassigning to as sign inflation, not ward it off. that is weird. >> i do talks to groups, inflation is a problem. they're assuming it is too high but as we all know it is too low. let's make a cynical comment. i tend to be cynical freakily. if there is will to come, we'll

spend more money on a wall, spend more money on infrastructure. mark my words, neil, if we need it, trump will start talking about another tax cut next year. neil: interesting you should say that. one flip side of potentially negative interest rates, we can carry our debt. it is not a green light for piling on more debt but does alleviate the near term pressure, right? >> absolutely. go ahead. >> no, i was saying it is a bandaid though. you got, if you start thinking deeper into this, right, you can't, that enables consumers continue to borrow, right, nurses them along, but the other product i mentioned, housing all-time highs right now. we're talking deflation, deflation. the average person is really struggling right now just to meet their basic living necessity, right? could be granted offset by mortgages. a lot of properties are owned by big banks, big hedge funds.

i don't think rent rates will come down. if there is any inflation it is there. and i don't know how we solve that part of the problem. neil: the markets and volatility, greg valliere, could be a blessing, and curse to donald trump, as could low if not negative interest rates, how does it play up politically? >> the curse could be if beijing tries to crush the inner recollection in hong kong. that would be a really bad story. the blessing i could say, i think we're close, getting ratification of the new nafta with mexico and canada. canada is huge trading power with ours, with us. if we get the trade deal done that will alleviate the negative impact from the china trade war. neil: thank you, fellow baby boomer. jared, great insight. we'll see what happens. we're down 273 points. it's a weird world which we live. where rates are getting so low, where about you are in debt, your ship has come in. if you're trying to save, you're

in deep, ship. more after this. or the latest. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

neil: it is not just going after illegals. now technically, legal immigrants. here with green cards. fox business's edward lawrence on the administration's push, to establish order and discipline to this. critics are say anything but. what is the latest? reporter: clarifying rules that congress already outlined the way this is being presented. the head of the u.s. citizenship immigration services announced if anyone who is applying to become a u.s. citizen has used public housing or medicaid or public assistance like food stamps in any way, that is a black mark against their bid to become a u.s. citizen. talking about people with green cards or trying to get legal status. this is some 400,000 people. the director of the citizenship and immigration services ken cuccinelli announced the new rule will go into effect in

october. he says it will have a financial impact. >> the benefit to taxpayers is a long-term benefit of seeking to insure that our immigration system is bringing people to join us as american citizens, as legal permanent residents first, who can stand on their own two feet. who will not be reliant on the welfare system. reporter: the rule exempts pregnant women or children under the age of 21 years old. it exempts certain military members and their families. in the language, it says it will not set up merit-based system. it purities the burden on the person becoming a u.s. system, to prove they did not use public assistance and will not use public assistance in the near future. this wait of public assistance here will be added to the fact that they look at household income, they look at health, as well as education in an application to become a u.s. citizen. neil? neil: thank you, my friend. very, very much.

meantime elizabeth warren is proposing taxes to stop begin violence. there is a method to it. but will it work? after this.

neil: all right. the media stocks in play, cbs viacom, whether something happens anytime soon anyone's guess but one guy who would know is charlie gasparino. what is going on? >> it is happening. i think it will happen after the closing bell today, maybe tomorrow morning. sometimes it bleeds into the next day because you got done with it really late today, dot the is, cross the ts. management structure, bob bakish ceo, guaranteed. joe ianniello from cbs. he will be reporting to bob bakish. it is not as much -- they want

to keep him at the company because he does a good job, like other unit heads he will be reporting to bakish, even though cbs will be biggest unit. neil: what is the hangup? >> normal deal stuff. we think it happens overnight. i have been through, through t-mobile, sprint looks like to about to happen a little thing happened here, you have to go through the whole thing again, lawyers look over everything else, barring them finding some slush fund inside of cbs, which causes, like some sort of a huge problem, this thing is getting done either after the bell today, my guess, or, before the opening bell tomorrow. and it will be pretty big. shari redstone will have achieved what she has been trying for years to achieve. that is merging two companies together. putting the, remember, what happened was, they were together for years, when sumner had, when sumner redstone was putting together the media empire. he broke them apart in 2006, because different media

landscape. they were both bigger companies at the time. neil: yeah. >> they were both major players with, major market caps in media business. so you can sort of, you can extract some capital to make both grow, you know, in that environment. since then, as we know, media has become consolidated. costs have changed. you need to achieve economies of scale. put ideas put them together. resisted by cbs who thought viacom was second rate outfit. les moonves resisted. this we were first to report in march, was clear les was not getting contract extended. fox business beat "the wall street journal" easily on every major aspect of the story, this thing was happening. bob bakish would be the ceo. shari redstone would be, she would get some role in this, will be interesting, vice-chair woman. bakish gets the ceo role because he is very close with shari, everything you say about viacom

as a product he has done a very good job since taking over. neil: that helps. >> taking over for dauman in 2016. people have been reporting to him. we'll see "after the bell," early tomorrow, barring something weird, you know, this thing is coming down the pike. neil: yeah. >> the other thing -- neil: jeffrey epstein stuff. >> i will write a full piece on this on foxbusiness.com. i had several conversations with jeffrey epstein in march. the reason why i did, the stories were starting to heat up, there was an aspect to the story i knew about. his involvement with a hedge fund at bear stearns that blew up. and there was a lot of talk that he was, the reason why he got a lenient sentencing for the child sex stuff because he was a key witness in that case. i went back and i knew a lot of people involved in that case. two guys that were charged, ralph giaffi, fund manager, and matthew tinen was acquitted.

i knew epstein wasn't. i talked to epstein's lawyers. neil: this is long before the arrest. >> this is march,-april. and in the course of my reporting, i talked to epstein. now the conversation was on background. i'm using it now for two reasons, telling you about this, he is dead obviously. there is a public service here in this sense that to hear how he rationalized the situation in his own words i think gives us an insight into him. as mystery of him grows, i think that is going to help trying to figure out what happened. now i didn't have extensive conversations. every time i got hill on the phone, i felt he wanted to get off the phone but i did have him explain what he, what he viewed he did. i had him explain what he does for a living. i had him explain -- neil: how did he become a billionaire? >> you know, that is a whole other story but two things, and i'll tell you, he is not quite a billionaire but he still

famously rich, enormously rich. it was interesting how he blamed most of his problems, the new legal problems on the plaintiff bar. he said they were the one, they are the ones bringing this back to life. in march, if you remember, that is when the stuff started reaching a fever pitch. acosta was coming, labor secretary acosta who provided over the first kate, cut sweetheart deal alleged with him, he was under pressure. this was good time to talk to him. he basically said this was the plaintiffs bar going wild. i asked him, jeffrey, how do i describe what you did? you know said, basically, charlie, you know, i received erotic massages. and he said i'm not a pedophile. and then i said -- neil: would he ever acknowledge these were underage girls? >> presumably you didn't they were under age, right? i said it like that. he said yeah. he said, charlie, this is interesting, shows you the way he can rationalize stuff, not

that much difficult than what happened with bob kraft except they came to my house, bob kraft, the patriots owner, who just so you know was not involved in underage women. he was charged with soliciting prostitution at a massage parlor essentially. neil: no under age women. >> there was no under age women with bob kraft. he said there is not that much different from bob kraft. neil: he minimized it to me. >> what bob kraft did i don't find that outrage just, but what jeffrey did was outrage just. how he rationalized it, this guy is not dealing with a full deck. we had other conversations. it will be in the piece on foxbusiness.com. neil: so much, that fear goes to the grave. >> we might get some more. neil: charlie gasparino, thank you very much. the dow down 271 points.

we'll focusing on that a lot more, why it is down so much after this. 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. ♪ corey is living with metastatic breast cancer, which is breast cancer that has spread to other parts of her body. she's also taking ibrance with an aromatase inhibitor, which is for postmenopausal women or for men with hr+ / her2- metastatic breast cancer

as the first hormonal based therapy. ibrance plus letrozole was significantly more effective at delaying disease progression versus letrozole. patients taking ibrance can develop low white blood cell counts, which may cause serious infections that can lead to death. before taking ibrance, tell your doctor if you have fever, chills, or other signs of infection, liver or kidney problems, are pregnant, breastfeeding, or plan to become pregnant. common side effects include low red blood cell and low platelet counts, infections, tiredness, nausea, sore mouth, abnormalities in liver blood tests, diarrhea, hair thinning or loss, vomiting, rash, and loss of appetite. corey calls it her new normal because a lot has changed, but a lot hasn't. ask your doctor about ibrance. the #1 prescribed fda-approved oral combination treatment for hr+/her2- mbc. can the past help you write the future? oral combination treatment

can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company

neil: you know the hong kong airport is still largely shut down. this is the eighth busiest airport on the planet. it handles more than 72 million passengers a year and they have urged a lot of customers, you don't have to fly, don't. this is usually a bad signal here. non-essential travel. meanwhile, fears of a trade war that could spark a recession. what that could mean for the president's re-election effort. and could be that joe biden's front-runner status is at risk.

neil: all right. the trade talks were looking dicey already, then we have the ongoing and apparently worsening and getting ever hotter hong kong protests. after their tenth straight weekend, this one involving one of the world's busiest airports, all but shutting them down. in fact, formally shut down, with tens of thousands able to storm the airport and just hit every gate, hit every main terminal, every main luggage area and that's it. one of the world's busiest economies ground to a halt. cfra chief investment strategist sam stovall is here, and connell mcshane. connell, you were in that neck of the woods a few weeks ago. would you have predicted then that this would get to where it is now? >> no. i don't think so. especially after the extradition bill was tabled at the time. even because we were there at the very beginning of the protest. that in and of itself was a surprise to many people. lot of people thought the government in hong kong and you know, the government in china

would push that extradition bill through. it would pass -- neil: are they still fighting over that? >> no, it's morphed into far more than that. it's carried on a lot longer than people thought. i thought they moved to the airport, from the protesters' point of view, made a lot of strategic sense, i guess, for lack of a better term, because when the protests were taking place downtown in hong kong, they were somewhat isolated in that if you were going around to other parts of the city or on the other side of the harbor, you wouldn't have that much trouble getting around. if you wanted to go about your business and not really pay attention to the protest, you probably could do that depending on where it was taking place. whereas at the airport, everybody, it's a very busy airport, everybody coming in and out now sees it and now the ball i guess is in china's court to see how they respond and if they -- the indication is that they might get even more aggressive. of course, that's the risk everybody is looking at. neil: you know, first time i heard president trump talking about hong kong or at least

saying, you know, essentially cooler heads will prevail, both sides will work all of this out, but it's very clear the chinese view of this is that america is instigating this. i guess i'm asking the political fallout, not only for the administration but on these trade talks. if they are blaming us for this, then they're not quick to come to the table to solve anything else, right? >> that's true. but what's going on in hong kong is kind of true to the character of our country, right? i think one of the most powerful images that came out of that airport were the group that was singing les miserables, can you hear the people sing. that sent goosebumps up my spine to hear that. i think a lot of americans can resonate with those feelings, with the impulse to be free and to be heard, and so i think that in terms of the trade talks, the president has done i think a good job with selling, you know, not just the country as a whole but particular states in the electorate that taking on china

is a noble goal, it's something that has not been tried by previous administrations but he's going to be the one to do it, so i think the president can kind of continue to make that case while supporting the democratic, you know, norms that we espouse in our country abroad. neil: i just worry, if you are hanging your hat on how violent and thuggish the chinese are, at the very least, you're not going to get a trade deal any time soon. >> no. it doesn't seem like you are going to get a trade deal because the president is really holding out. he wants to make sure he gets as good a trade deal as he can. the chinese are saying gee, maybe we will just hold out for the presidential election in 2020. neil: who needs it more? >> well, we import only one-quarter of what we export to china. so i would tend to say that china needs us more than we need them. neil: looking at the market reaction on the fallout, i'm beginning to think that maybe, especially with the farm damage, that -- >> sure, well, i think it has more to do with what kind of

ramifications there could be for a global recession. bull markets don't die of old age, they die of fright. what they are most afraid of is recession. if you have the two largest economies going at it with each other in terms of currency war, trade war, et cetera, then the feeling is maybe this is the 1930s all over again. >> depending how much things escalate, even if china does, and they probably do, all the numbers indicate they do quote, unquote, need it more than we do, doesn't mean they need it or will have to get it before the election in 2020. i just don't know that there's any motivation or incentive on either side, absent what's happening in hong kong right now, to cut some sort of deal before 2020. neil: you could do pretty much anything you want. >> of course, the threat to that would be the people rising up and people said that from the beginning, if the economy goes south, the people rise up against xi jinping but it doesn't seem like we are anywhere close to that. again, in terms of incentives

before 2020 to cut a deal, does president trump really have the incentive to do that? i'm not sure that he does politically. economically, if he's pressed by the markets, he might. but politically, not necessarily because where are the democrats? we talked about this before. where are the democrats going to attack him from? from the left on trade, to be even tougher than he is. he doesn't want to open himself up to looking soft. china doesn't necessarily have the incentive either. they would probably cut a deal with someone they feel they can cut a better deal with, joe biden or somebody else. neil: one of the other things the president's advanced is cutting a deal very close to the election. you don't waste it now. what do you think? >> look, i think that, you know, that's sort of part of the president's gamesmanship here. he's the negotiator in chief. neil: you really think that? you think there's a strategy there or is it just crazy? >> i think he wants to extract the most amount that he can under the circumstances. i thought it was really interesting with senator rick scott, who made this proposal we

would give tax cuts as relief for the trade wars that are going on. neil: we are paying the tariffs and now they get a tax cut back on the tariffs? >> here's what i think happens politically. the president has made the case over the year, he's fundamentally reshaped the way the country is starting to think about free trade. he's kind of put out there into the universe that free trade only works if everybody plays by the rules and there are people who don't play by the rules and you know, are we -- neil: he's right about that. but we are paying for that. >> sure. but in the short term, when you have, you know, farmers in key states and you have, you know, constituents in key states in the electricorate who have believed in this, if they were to get some relief on this, i think they could see it as the president fighting for them, standing in their corner against big bad china. neil: what's going on there is a good backdrop for him to say i told you they were bullies. >> remember, joe biden is soft on china. that's a great juxtaposition. neil: what do you mean?

>> meaning -- neil: that's your opinion. >> he's someone who has stated that -- neil: i'm soft on china? he goes to the wto. you can criticize him -- >> no, he doesn't consider china to be the geopolitical threat. neil: you are calling him sleepy joe. >> i think that will be a great foil. >> really, what he's trying to do with china is to push the fed. trying to get the fed to go much further than they did -- neil: how much further can they combo go? >> technically they can go to zero. they can pump up the tire until it explodes. neil: all these lower rates across the globe, that's not exactly spurring activity. >> it certainly hasn't, but i think his hope is that it will here in the u.s. my worry is to use the analogy that he's drilling a hole in the bottom of the boat to let the rain water out and what's going to happen later on. >> go back to hong kong, go back to hong kong for one second. you know, it could come into play in all this, because one of

the things, one of the things the president, they have not done well in terms of building a coalition, if you will, against china when it comes to trade, is that he hasn't built that coalition. that's what tpp was supposed to be and instead, what we have really done, some of this has been undone but in the meantime, you know, threatening or imposing tariffs on many of our allies when you could have argued if you were going to line everybody up against china, you would have had some sort of coalition of all of us versus them. in hong kong, if the peoples liberation army as some have speculated ends up in the streets of hong kong, i heard you bring up tiananmen square earlier and we have an incident like that or a scene on television like that, that could do a lot -- neil: what if the chinese soldiers are there now? these aren't hong kong soldiers. >> right. there's a lot of reporting but if it's out in the open, tanks are in the streets, whatever it ends up being, that's something that could galvanize in terms of trade the whole world against china in a way we haven't been able to do effectively. that could have an impact on the trade negotiations. neil: i think china is thinking they get away like they did in

1989. i know it was a different environment. >> it is a different environment. it's a different environment because we don't have social media, we don't have the power of these new media, you know, channeling this message to a broader audience. i think that the optics here that can be seen in an instant -- neil: you think china cares about optics? >> they care about it. i think enough of the people in the global community care about it to the point where more -- neil: cared about it 30 years ago. >> don't people look at china differently, in terms of the way -- economically? back then, the thinking was we have to do everything we can to get along, they are a power that's rising. if we treat them like they're part of the global community, to your earlier point, bring them into the wto, all the rest, they will be more like us. so many people that thought that way then have changed their way. maybe the reaction this time would be different. i don't know. neil: we will take a quick break here. we are getting more details at exactly what allowed jeffrey epstein to take his life in a

jail cell. but more to the point, what happens now in his case that has so many bold-faced names attached to it. after this. we all feel, we all love, we all cry. it's part of being human. sonoma county declared a homeless emergency in 2018. you have to know the individuals you're serving to understand their needs. working with ibm watson we can bring together data spread across dozens of departments. that gives us a fuller view of the people we serve. dear tech, dear tech, we need to look after everyone in our community. and we want to help our fellow human beings. ♪ ♪ hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens.

and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪

get to the bottom of what happened and there will be accountability, but let me assure you that this case will continue on against anyone who was complicit with epstein. any co-conspirators should not rest easy. the victims deserve justice and they will get it. neil: all right. but we all know right now that jeffrey epstein is dead, took his own life. how that is even possible in the metropolitan jail where the same issue came up little more than a

few weeks ago is unfathomable but now you have the attorney general of the united states looking into the matter, promising that justice longer term will be served. former federal prosecutor fred tici with us now. our panel is back as well. fred, what does the attorney general mean by that? obviously he wants to get to the bottom of how it's possible this guy took his life, but he also wants to make sure that the victims are heard and their stories are told and accomplices and those involved meet justice. how likely is any of that? >> well, i think it's all very likely, neil. with respect to what happened, there will be an investigation, there will be a determination. i suspect that what they are going to find out is that this is like a lot of airplane accidents or things like that, it was a series of mistakes that ultimately led to this guy being able to take his own life, putting aside the conspiracy theories that are running rampant on the internet. neil: what is the procedure on that? he would have been on a death

watch or suicide watch for a couple of weeks, then, and then it was dropped? do we know -- >> from what i understand, he was on a suicide watch. he was not in general population. he was in what they call restricted housing unit which inmates call the hole, and he had been put back in the restricted housing unit because apparently they had come to the conclusion he was no longer suicidal, he was being seen by an interventional psychologist, he was being watched. i mean, discretion is the better part of valor so i don't understand why, given how high of a profile this guy is, he wasn't being watched more carefully. except when i hear stories about how they are understaffed, overpopulated, so like i said, it's a bunch of different things that ultimately could have led to his being able to take his own life or whatever. neil: you can understand how conspiracy theories start. >> of course, but the guy has, you know, to your point, whether he comes off suicide watch, he was supposedly off it for 11 days, i think, which seems odd

to me but i'm not an expert in all of this. but the biggest mistake it seems from what i was reading earlier, he had another guy in the cell with him and that guy was transferred out. two guys in the cell, and there is supposed to be, that's like by rule. one gets transferred out so does someone have to be put in immediately, is there a rule where it's 24 hours or something like that? neil: no one in the cell. >> no one in the cell. there was supposed to be by rule, from what i read. i don't know what fred knows about it. neil: fred, do you know? >> having dealt with the bureau of prisons for years and having people in the witness protection program who were in prison, i can tell you there's a lot of rules but the first rule is keeping people safe. so to the extent he was in restricted housing unit, usually in rhu, the hole, it's one person in the room because you are in there because you are worried about the guy's safety. so the answer to your question is you don't just -- the bop would not just take someone out of general population and throw him in with epstein just so the guy would have a roomie. >> right.

but i thought the whole point was if he did try to harm himself there would be someone there that would see it. >> well, right. there would be -- but that's the whole point. the guards are supposed to be watching him every 30 minutes. actually, to rely on the inmates to make sure somebody doesn't kill himself, talk about letting the inmates run the asylum. neil: we can argue back to it shouldn't have happened, you can say the same about jack ruby, should not have had access to kill oswald in 1963, i get that. but it's weird. >> it is weird. i could make some comment about how he's the first guy to unite democrats and republicans in awhile. neil: you're right about that. i was noticing on saturday when we were talking, republicans and democrats were joined. >> also, the question being what happened the last time. did he attempt to take his life or was he a victim of internal abuse and therefore, that's possibly why they took off the

suicide watch, because they were still trying to decide whether -- what had happened to him earlier. neil: alex, the president cited the clintons in this, said they were responsible for it. >> look, i think this case -- >> i'm not going there. >> there are so many sensational elements, it has all the makings of a conspiracy. i think the bigger argument i would have made is whether this was -- whether this was a conspiracy or whether this was government incompetence, it doesn't matter. neil: the guy's dead. >> certainly in terms of the investigation, it matters. but my point being is that when we put government in charge of things, whether this man was allowed through his status to obtain special treatment and allow himself to kill himself, or it was negligence on behalf of the government, we are talking right now about a group of democratic presidential contenders who want to shift more of the responsibility to government in key and fundamental parts of our life, and i think that bears, you know, it bears consideration

that they want to have government control these different parts of our lives and they couldn't keep the most, you know, the most notorious prisoner in the system alive. neil: that's a bit of a stretch. >> i don't think so. they want to shift a third of the nation's economy to government control. >> the other issue is not really a controversial question about whether the president shouldn't have said it. he shouldn't have said it. that's a yes or no, like, he's president of the united states. it's an unfounded conspiracy theory with literally no proof behind it. of course he shouldn't have said it but he did. that's what he does. neil: final thoughts? fred? [ speaking simultaneously ] you are arguing that it might take a little longer, right? >> well, it can move forward in two ways, civilly and criminally. civilly, what you will see now is this guy had a big estate, how big it was, all the sharks

will come in the water. is it a humpback whale or dolphin when they start the feeding frenzy, finding assets for these victims. that's how we compensate victims in this country. the criminal case has got a lot of problems, particularly with respect to whether or not if they don't convict him, whether they can forfeit his assets. that's a whole other issue. neil: a two-pronged attack here. all right, fred, keep at it. a lot more coming up, including elon musk throwing his support behind a 2020 candidate that might surprise you, after this. patients that i see that complain about dry mouth,

they feel like they have to drink a lot of water. medications seem to be the number one cause for dry mouth. dry mouth can cause increased cavities, bad breath, oral irritation. i like to recommend biotene. biotene has a full array of products that replenishes the moisture in your mouth. biotene definitely works. it makes patients so much happier.

neil: this is the best news andrew yang has ever heard. the guy is running for president of the united states, just got the backing of elon musk as an ideal presidential candidate. you know, that came out of the blue. i don't know whether it moves the needle but what do you think? >> yeah, it's certainly interesting to hear elon musk

come out so early already and say he supports andrew yang, who according to the polls, hasn't been necessarily one of the top contenders so far. but what's really interesting about andrew yang is something that axios has reported on a lot, he really does have a following and the people who do follow him, follow him passionately. he certainly has a basis of people which now includes elon musk who really sports some of his more progressive ideas and willingness to change his mind and find solutions to problems. neil: you know, i think he was the first out the gate with this give every american $500 or $1,000, then others quickly followed. >> it just seems as if it's playing leapfrog in terms of the democratic contenders that if one makes a suggestion that isn't at least pushed back at them, they tend to embrace that as well, because they want to differentiate themselves on other things but not create a wedge to be compared versus the other candidates.

>> this whole universal basic income thing kind of scoffed at and throwing out by a lot of people when it comes out but not in a community that looks at artificial intelligence. that's what elon musk kind of lives in that world. so when people think about that and talk about it and say the robots are coming to take over and they are, to some extent, but that have the most aggressive predictions out there about how many jobs are really at risk, those are the people that have actually had those conversations already about hey, listen, what else can we do but we have to give people a stipend or money. in the general population where people haven't really thought about it yet, it's like that's stupid, it will never work. in that community, that's why it kind of makes sense. i don't know if it martters but it makes sense why elon musk has his endorsement. neil: wasn't his premise and others who espouse this, it lessens the likelihood you will need indirect help from the government, if it goes directly to you, you use it as you wish, it lessens the load on uncle

sam? >> exactly. that's the idea behind it. it really is, it becomes more relevant as we go into this age of automation and as a.i. becomes more part of your day-to-day life. as jobs we would typically see as jobs for middle income america start disappearing and as automation takes over those jobs, the idea is that everyone needs to have some kind of universal basic income and as you said, by putting a program in place like andrew yang has suggested, that may actually help the government not have to help americans out who aren't able to have jobs or who are in poverty and again, these are the ideas that are coming out now as we move into this new era of automation and technology. neil: you would buy it, right? >> look, stylistically this is not a surprise to me. it's not a surprise to me that elon musk chose the one guy on the stage who can't wear a tie and is from silicon valley. but importantly, even though i might not agree with him -- neil: gasparino is like that here.

>> got to wear a tie. got to wear a tie. neil: we will take a quick break. in the meantime, this trade spat that now has some worried about forget low interest rates, what about a recession, what about a pretty bad one. after this. managingaudrey's on it.s? eating right? on it! staying active? on it. audrey thinks she's doing all she can to manage her type 2 diabetes and heart disease but is her treatment doing enough to lower her heart risk? [sfx: crash of football players colliding off-camera.] maybe not. jardiance is the number 1 prescribed pill in its class. jardiance can reduce the risk of cardiovascular death for adults who also have known heart disease. that means jardiance can help save your life from a heart attack or stroke. plus, jardiance lowers a1c

and it could help you lose some weight. jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. ketoacidosis is a serious side effect that may be fatal. a rare, but life-threatening bacterial infection... ...in the skin of the perineum could occur. stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection,... ...ketoacidosis, or an allergic reaction. do not take jardiance if you are on dialysis or have severe kidney problems. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. lower a1c and lower risk of a fatal heart attack? on it with jardiance. ask your doctor about jardiance. the type 2 diabetes pill that's on it. learn more at jardiance.com

when crabe stronger...strong, with new nicorette coated ice mint. layered with flavor... it's the first and only coated nicotine lozenge. for an amazing taste... ...that outlasts your craving. new nicorette ice mint.

neil: all right. we've got fears that we might never see a trade deal and that's one of the issues that is weighing on stocks. 28 of the dow 30 components are down. the ones that are really down are the ones with ample exposure

to china and that neck of the woods. the former republican house majority leader, eric cantor, with us now. eric, always good to see you. >> great to be here. neil: all of a sudden, markets are worried about a trade deal that might never materialize. are you? >> listen, i think for some time now, you know, people that i speak to that are running these multinational companies have been very jittery about where this trade situation's going to go. i think you have this sort of juxtaposition where on the one hand, from a political issue, it is a winner. i think you see both democrats and republicans in washington seeing how they can get even more to the extreme on this issue, and then the business community again that i spend my time with now, they are the ones saying hey, wait a minute, washington, these things have consequences. i do think you are beginning to see after now, you know, talks have not produced anything, people are realizing hey, there may be a big downside to this.

neil: the president likes to say billions of tariffs are coming in. the truth of the matter is we as consumers pay them, americans, distributors, will absorb what they can but there's a limit to that. what do you think of that whole argument? >> see, i think number one, i think you go back to fundamentally is the trade deficit the thing we ought to be focused on because we all know there's another side to the ledger here. there's foreign direct investment, there's capital inflows that allow us to, as an economy, to go and purchase the things that we do abroad. but i think you also have to look at if the argument is that somehow with the lower value in the yuan that tariffs really make no difference, that the american consumer will pay the same, i think that does also then bring you back to the point of contract that the retailers here have with the chinese manufacturers. so it may not be that they are necessarily benefiting from a lower yuan value and then i think what we are going to see is come september 1, when these

tariffs go into effect, then all the christmas season merchandise starts hitting the shelves in the fall, that's when i think we may begin to see the effects on the consumer. neil: the latest consumer goods that are cited, those are the ones that would be more immediate. but the president's argument is china is going to rue the day they challenge us on this. some trying to make lemonade out of the financial lemons of this, senator rick scott among those, why not take some of that tariff dough, give tax cuts to the american people. what do you think? >> you can sit here and think we are going to go in and necessarily have a win/win on all sides because yes, bilaterally with china, if all things were equal elsewhere, you could see where if the yuan went down in value, we don't really disproportionately export that much to china, we import more, it could benefit us. but remember, there's a world going on around us, so as the dollar gets stronger, we become

less competitive in terms of our exports and we know, this is why the president is all tweeting about a strong dollar being detrimental to our export industry, that could ultimately cau cost us economic growth and jobs as well. it's not like you can look at one instance, you know, bilateral situation with china, without taking into consideration the ripple effect on our economy. neil: this is more political, congressman, but interested to hear your thoughts on the latest rift between anthony scaramucci and the president, on the heels, little more than a few weeks after paul ryan made the mistake of criticizing the president in a book to come out. is the president losing some friends he needs, or are these friends he doesn't need? >> listen, i don't think the president has had any diminution in support in the base that is out there that helped elect him. i don't see that at all.

in the business community, frankly, if that's what anthony's talking about, the business leaders that i spoke to are very happy with the consequences and the results of the trump policy. neil: all this other stuff is noise? they are worried about the trade stuff, right? >> they are worried about the trade stuff for sure but in terms of the tax policy, the regulatory policy of this administration, it has been huge turnaround from the prior years under the obama regulation where you really did have an adversary in washington. i think as you look towards the 2020 election, though, i think most people understand that the key is going to be the professional suburban vote that turned out against my party, against the republicans, in 2018. neil: talking about conservatives and moderates alike. >> that's what we have to focus on to make sure we prevail in 2020. neil: is the president lucky, it seems all the potential challengers are just being dismissed. >> listen, the democratic field right now is so far afield in terms of where the mainstream independent voter's head is,

they are sitting here going so far left from an economic standpoint and they're not addressing where i think the american people resist the democrats mostly which is on cultural issues. the democratic party is not going to be successful and it will then inure to the republicans if they continue to be out there so far left economically and socially. they just can't do that. neil: but on racial issues and this other stuff, and what the president said on the trade thing and everything else, he is kind of putting republicans up against the wall, too. he's popular with them, more popular than any recent republican president, but are you worried about the longer term message for republicans and what your party stands for? >> listen, i have always believed that in politics, it's about addition and our party, my party, has to do a lot better in terms of seeking diverse support among women voters, especially, and among minority voters, and

so i remain concerned when you look at the numbers in the house of representatives and the small amount of women representation in our ranks. that's why i do as much as i can to try and help and make sure that we have a much broader message to appeal to that independent voter which is the key, because the president's done a great job in locking down the base. they're not going anywhere. we got to make sure that when the election time comes, there's a real choice about the direction of the country and i think right now, it will be a choice election, it will very much be about, you know, successful economy, capitalism -- neil: will it be about the markets? if they suddenly go into -- >> that will add a complicating wrinkle, for sure, but so far -- neil: they have been going his way for the most part. >> for the most part. for the most part. neil: you think that matters to the average american? >> i think absolutely that pocketbook issues have always mattered ever since i have been in politics. neil: he, by citing the federal reserve for hiking interest rates, does that get that

message out of his hands he can say it's their fault? >> i'm not so sure. i don't think it's a clear-cut issue. i think that if the markets, if the economy, equities markets are one thing. there's this wealth factor effect. but it is about wages and we look to see where wages are right now, they are continuing to go up. even in the minority communities, they are continuing to go up. i think -- neil: more so than in white communities. >> that's been the president's, i think, to his benefit, able to go out there and begin to form these coalitions in the minority communities and the women electorate to say hey, listen, my politics are really benefiting you, so all this noise out there that you are hearing in the press, ignore that. let's focus on the issues. it's easier said than done. but i think that is the root of the argument when it comes time to voters making a choice. neil: my producer is probably screaming at me right now, but the business guys you talk to, there's concern about negative interest rates, it's happening abroad and all, do we have to worry about that? is that something for which we have had no preparation?

we talk about low interest rates. what if they go the other way? >> i just think again, in my conversations with leaders in the boardroom of america's large companies as well as with investors, who are out there in the markets looking to deploy capital, the ability to access money right now is really strong. and it's just unfathomable to me that in the u.s., we actually are going to head in this direction but it seems like people are beginning to actually raise the point where you know what, we may be following europe given now the global nature of the economy. so this all sort of goes into this mix i think of your original point about the trade issue. the more we create tension on the trade front, the more the federal reserve is going to be noting that and going to try and bolster the u.s. economy so we can maintain our -- neil: scary if it doesn't work, right? >> that is for sure. we are in uncharted territory.

i'm not sure we ever had a situation with negative interest rates in our country but it would be a new one and a difficult environment to see growth continue. neil: we will watch it very closely. always good seeing you, eric cantor. former house majority leader. so much more. we have a lot more coming up including a mississippi plant that's holding a jobs fair after an i.c.e. raid. they are getting a lot of interested takers. after this. - did you know that americans that bought gold in 2005

quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. - [narrator] today, the u.s. money reserve announces the immediate release of u.s. government-issued solid gold coins for the incredible price on your screen. these gold american eagles are official gold coins of the united states and are being sold for the price on your screen.

- pick up the phone and call america's gold authority, u.s. money reserve. with nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients worldwide, u.s. money reserve is one of the most dependable gold distributors in america. - [narrator] today the u.s. money reserve is releasing official gold american eagle coins at cost for the incredible price on your screen. these government-issued gold coins are official u.s. legal tender made from solid gold mined here in america and fully backed by the united states government for their gold weight, purity, and content. do not delay, call now to purchase your gold american eagles for the amazing price on your screen. gold is now on sale at prices unseen in years and this year could be one of the greatest gold-buying opportunities of all time!

call now while vault inventory remains. as one of the largest u.s. gold coin distributors in the country, the u.s. money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute, call now to purchase your american eagle coins at cost for the amazing price on your screen. neil: we're at session lows. john bolton saying we were expecting a chinese delegation in september, presumably on these trade talks, but the chinese haven't said yes or no. i thought that was a foregone conclusion that they were coming here for talks. maybe not. it seemed they had a little selling pressure here. we will watch it. a jobs fair is being held today after i.c.e. raids in mississippi were leaving a lot of the plants understaffed. rick leventhal has more. hey, rick.

reporter: hey, neil. a steady stream of people showing up at the building behind me. we are told 150 applicants in the first three hours of this job fair with about 30 minutes left to go. they have not said how many people they are looking to hire but the folks we spoke with said they are definitely ready to go to work. koch just one of several chicken processing companies to get raided by i.c.e. agents last week with 680 workers detained for possible immigration violations and of course, there's been a lot of criticism of the raids, much of it focused on the separation of children from parents who work at these chicken plants. i.c.e. released a very strongly worded statement yesterday to try and clear up what it said were rumors and false information, saying every child who had two parents arrested last week had at least one parent released within 24 hours due to humanitarian reasons. we also expedited the processing of adults who identified they had a child in need of care. more than 300 were released by dawn the next day and i.c.e. says we are the only law enforcement agency that does such things to persons arrested by a federal law enforcement

agency. the reality is adults with children are arrested across america every day but you don't hear about it unless it involves i.c.e. agents. some of those released have ankle monitors and court dates. the rest are being detained in three separate facilities waiting on bond hearings and deportation proceedings, as koch and the other companies are looking to fill those slots that were lost when those illegal workers were detained. neil? neil: thank you very, very much. toyota is expanding, having nothing to do with this particular issue. for those in that locale, it could be the best news yet. grady trimble is live in princeton, indiana with the details. reporter: a lot of jobs to fill here. we are right in the thick of it. this is where the cars are made. right now they are attaching the seat belts on to this one. they crank out a car here once every 56 seconds. it's a quick process as it moves through the assembly line. it's 70 football fields, the size of this facility.

i want to bring in one of the people who moved here to start a new job. why did you decide to kind of pick up your life and come to this area? >> i worked for a toyota supplier before i came here and i was exposed to toyota's business practices. i knew this was a place i would be challenged professionally and have a great career growth. reporter: toyota is going to need a lot more people like bethney because they have a lot of jobs to fill at this plant in particular. 400. so that's what they are pushing for, trying to fill those jobs. the president has said we want cars built in the united states and so that's what they are doing here. neil: grady, thank you very, very much. good report. that's not helping the dow right now. we are down about 318 points. a lot of it now on concerns that that planned september meeting with chinese negotiators and u.s. negotiators, it might not be a done deal. in fact, the chinese might not be coming at all. after this. there's a company that's talked to even more real people

than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room.

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.

i'm not wishing for a recession but if the farmers want to keep touching -- >> you should wish for a recession because that will definitely get him unelected. >> you don't really want a recession. >> i really do. we have survived many recessions. we can't survive another donald trump term. >> you will knock lower and middle income people out of work. neil: they clapped at that. clapping for a recession. whatever your political views, i don't know if that's something you would necessarily wish for. having said that, back with the panel. what do you think of that? >> it's so funny to me how little self-awareness hollywood has. they are getting more and more extreme. neil: he verbalized what a lot of people on the left think. >> what does that say to the guy who, you know, who is working a job whose wages increased, who got more back from the tax cuts?

i mean, it's just not, you know, in sync with the reality for most americans out there. i think that when they make statements like that, they further isolate themselves into these bubbles that most americans think they live in anyway. neil: what do you think? >> i think he's actually in a fairly protected industry because i was thinking, gee, if you have a recession, a lot of the viewers won't be able to afford their cable bills, et cetera. but health care, consumer staples, food, beverage, tobacco, tend to do well and you have got to be doing something while you eat, smoke and drink and that's watching tv. neil: there is that. then you play the economy which is always in an election and you could make the argument right now things are solid, things are going well, democrats' best hope is for some of that to turn south. >> that's why, i think your first point was the right one, he's verbalizing what a lot of political people, not just hollywood people, think but are afraid to actually say it because obviously, nobody should be on --

neil: the last thing you want another party to have is an economic juggernaut. >> look at the numbers, the one issue that the president has not been under water on has been the economy. so it's like what eric cantor was talking about a few minutes ago. a lot of people, wall street people, other people, look at the president's policies, i agree with his policies. what wasn't said there, a lot of people may not like the president personally so 'the economy goes south, he is in trouble. everybody knows that. but that's an interesting way of saying it. >> he just said something like that so we end up talking about it later on. it's free advertising. neil: are yyou are absolutely r. crazy like a fox. elizabeth warren is talking about putting higher taxes on guns and bullets. as part of a comprehensive gun control program. what do you think? >> well, look, i think in the wake of these mass shootings, not just the three that occurred in the last two weeks, but the many that have occurred before then, i think there's a lot of republicans moving towards this idea that there are things that can be done as long as they are practical and they are

constitutional and i think what the problem is for me with what a lot of liberals propose is they are neither of those things and they also wouldn't work to prevent the tragedies that we have seen. so i don't know how taxing, you know, you know, what law-abiding gun owners use for perfectly legal purposes out there is necessarily going to be a deterrent. i think if you are a madman, a psychopath, you are going to find a way to enact your horrible -- neil: she might be basing it on when we started hiking taxes on cigarettes. it did cut down cigarette consumption. i don't know if that's the case. i don't know how far she wants to go. >> yeah. i think we want to be able to remove this kind of stigma within our community and whatever ideas we can come up with that can help to do so, i think that would be good. but being able to say look, i see warning signs, let's report those warning signs, that's something that's important as well. >> different argument than saying i want to get rid of, you

know, assault -- or institute an assault weapons ban which you can debate and we did for the ten years -- neil: that was signed into law, had a ten-year time frame, real violent incidents picked up afterwards. >> afterwards, right. there's more debate about that. this case is a little bit different -- neil: that's not black and white. >> no. the cigarette example, i don't know if it really works, because if someone is smoking a cigarette, wasn't necessarily a criminal, whereas someone who is obviously going to use guns in this way is a criminal. neil: i can't believe sam made me use that example. real quickly, the market is, you know, in and out of session lows. sam, you follow this all the time here. apparently the latest wrinkle or provocation might have been talk that there are no talks scheduled. chinese might not come at all. >> it all has to do with uncertainty. where does it go from here. what kind of effect will it have. at the beginning of 2019, expectations were that earnings would be up about 5%. now the expectation is that they will be up by less than 1.5%. so the real worry is where is

the growth going to be coming from. you really can't have prices move higher unless you have justification for that. right now, earnings are not justifying it. neil: proof that trade is dominating everything. >> yeah. i think we can all kind of not assume, but think that maybe a deal's not necessarily around the corner. it may not happen before the 2020 election but where the real uncertainty comes, i think, is what are the actions each side is going to take between now and then. how many more tariffs are put in place, is it kind of a truce or a cease-fire until then or do things get racheted up between now and then which would affect, you know, your point, earnings. neil: all right. see you at 4:00 p.m. eastern time. thank you very, very much for coming, alex. sam, best to your dad and wonderful family. >> thank you. neil: we are down 300 points here. we will digest this and think what can happen in the next two hours 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. can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. . .

neil: well it's very clear tumbling interest rates are not helping banks. just the on system

bank of america, goldman sachs off more than 2%. jpmorgan very close to that the exposure to china probably doesn't help matters. the two together clearly not helping matters. here to sort it all out, my buddy, charles payne. charles: neil, thank you very much. good afternoon, i'm charles payne this is making money. stocks at the low of the session, sinking on u.s.-china trade fears. we have new warnings of potential recession, sooner before the potential tariffs going into effect. these warnings have been around for a year. whether this forces president trump's plan. hong kong protests are heating up. now the city is grounding all flights. we'll talk to someone right in the middle of the action where thousands of demonstrators filing to the airport. they're condemning the police, how they have been handling these long running protests. major immigration announcement t