other countries. i don't want these big, massive auto plants built in other countries and i don't think they will be doing that anymore. general motors makes most of its money in the united states and too bad they spent billions and billions of dollars outside of the united states before i got here. one of the things very important in the usmca which we have to have approved for, not only for the unions but for the auto workers but for the farmers and for the manufacturers, everybody, everybody wants usmca. it is very important even more so now than it was two weeks ago but people really want it. i'm sad to see the strike. hopefully it will be a quick one. reporter: [inaudible] >> no. it is never exhausting. in fact the crown prince can tell you, especially in your part of the world it is never exhausted until the final 12

seconds is that right. >> that is correct. >> it is not exhausted. nothing is exhausted. i think they would like to make a deal. they would like to make a deal. they would like to do it on certain terms and conditions and we won't do that. at some point it will work out in my opinion. the problem was the deal that was signed by the previous administration was a disaster, which by the way would be expiring in a very short period of time also. so you really don't have a deal. that deal was a very short term deal. they made a deal but it was for a very short period of time. so that deal would be expiring soon. yes? reporter: are you asking israel and saudis to work together on this issue and -- >> always. i encourage everybody to work together. the middle east is an interesting place. historically have not been working together too well. no, israel is starting to work together with a lot of countries you wouldn't have thought possible two years ago. yes? reporter: did you promise the saudis that the u.s. will protect them? >> no, i haven't.

no, i haven't promised the saudis that. we have to sit down with the saudis to work something out. the saudis want very much for us to protect them but that was an attack on saudi arabia. and that wasn't an attack on us but, we would certainly help them. they have been a great ally. they spend $400 billion in our country over the last number of years. $400 billion. that's a million 1/2 jobs. and they are not ones unlike some countries where they want terms. they want terms and conditions. they want to say can we borrow the money at 0% at 400 years? no. saud -- saudi arabia pays cash. they helped us out from the standpoint of jobs. they have helped us, i would call, say listen, our oil prices, our gasoline prices are too high. you got to let that go. i would call the crown prince, you got to help us out. you got to get some more in.

all of sudden the oil starts flowing. gasoline prices are down. no other president can do that. no other president is able to do that or maybe they didn't try but i've done it. so now they're under attack and we will work something out with them but they also know that, you know, i'm not looking to get into new conflict but sometimes you have to. reporter: [inaudible] >> excuse me? reporter: what is your message to iran right now? >> i think i will have a stronger message or maybe no message at all when we get the final results what we're looking at but right now too soon to say. there is plenty of time. there is no rush. we all will be here a long time. there is no rush. but i will have a message, whether it's a strong message or maybe no message at all depending on the final results. reporter: how concerned are you about all-out war? >> i'm not concerned at all. reporter: you're not concerned

about -- >> i'm not concerned at all. we have military power the likes of which the world has never seen. i am not concerned at all. i would like to avoid it. when i came here, three years ago, almost, general mattis told me, sir, we're very low on ammunition. i said that's a horrible thing to say. i'm not blaming him. i'm not blaming anybody but that is what he told me. because we were at a position where a certain country, i won't say which one we may have had conflict. he said to me, sir, if you could delay it, because we're very low on ammunition. and i said you know what? general, i never want to hear that again from another general. no president should ever, ever hear that statement, we're low on ammunition. and we now have more ammunition, more missiles, more rockets, more tanks, we have more of everything that than we've ever had before. more jet fighters. when i came here 50% of our jet

fighters didn't fly. you know that. and they were in bad shape. now we have the best fighters in the world. everybody wants to buy them. are you buying our jet fighters? >> we are, sir. >> which one? >> the f-16. >> that's great. you have good taste. that's a great one. so we are very high on ammunition now. that is story i never told before, breaking news we were very low. i could even say it stronger. i don't want to say no ammunition but that gets a lot closer. i said, i never want to hear that again. i want another president of the united states to hear that again. could you imagine as president when they say we're very low on ammunition? by the way, stronger than that but i'm not going to go there. that was what i was told. i said, i never want to be in a position like that again. and he said, could you delay, if we do something, sir, could you delay it as we fill up? and that is what i inherited from the past administration and in all fairness to president

obama, two administrations before president obama. that is what i got stuck with. we fixed it. we fixed it good. the crown prince understands, 700 billion. the next year 718 billion. the next year which is right now, we just got approved, $738 billion. and that is a lot of money even for bahrain. >> that is a lot of money. >> even for bahrain. bahrain has a lot of money. reporter: election coming up tomorrow, how does that affect the timing of middle east peace plan? >> we'll have to see steve. i can't tell you what will happen. i can make a prediction. i sort of have a feeling. that is a big election. that is one we'll all be watching. reporter: [inaudible] >> certainly has a good chance. it's a 50/50 election. a lot of people if you look at polls and everything else it will be very close. so we'll see what happens.

polls are often wrong. reporter: [inaudible] >> i don't want to talk about that but certainly it is something, we're told about they would like to do, no, i don't want to be talking about that. it is too soon. reporter: why the decision was taken yesterday to release the strategic reserves? why did you -- >> just in case we ran a little bit low on oil, we have so much. with the strategic reserves. plus being the number one producer we can fill them up very quickly, very, very quickly and one of the things i'm doing also, i'm approving pipelines in texas. we have a tremendous pipeline system that is being held up by various agencies for very good reason, for going through the normal process and we're going to have to avoid the normal process because if we do that, texas is a massive distributor, massive producer of oil, far bigger than anybody would have even thought five years ago. so what i'm going to do is

expedite the pipeline approvals that will get us another 25% energy, additional energy. i know this is exactly the opposite of the democrats. they want to have wind, solar and i guess make believe would be the third alternative, right? no. this is something we have to do. we have the greatest wealth in the world and we want to be able to capitalize on it, especially when it comes to safety. okay? thank you all very much. thank you. reporter: [inaudible] >> yeah. or the port what are your plans for baltimore? what are you trying to do there, helping the city rise up from the rodent-infested place. >> i think when i've done for the inner cities is more than any president has done for a long time. i did that with opportunity zones, i did it with tim scott, a tremendous guy.

it was his initiative. he came to see me. they're having a tremendously positive impact on the inner cities, including baltimore, including a lot of other cities, you wouldn't necessarily think, oakland, california. we're having tremendous success in the inner cities base of the opportunity zones. criminal justice reform, i was the one got it. nobody else. we had people that helped but a group of extremely liberal democrats came to the office and they said we cannot get it. president obama was unable to get it as you know. president bush, they were all unable to get it. and i got it. and i got it with some very conservative senators and people that wanted it to happen. and nobody else could have done it. it is sort of interesting because they don't like mentioning my name, i guess now people are understanding it. we got it. we got it done. we formed a coalition with very conservative people as you know, and some very people that are very far left. we did a thing called criminal

justice reform. something that nobody thought, crown prince has seen this, nobody thought this could possibly happen. and i'm very proud of criminal justice reform. so we did that. we did the opportunity zones, a lot of other things. our job numbers for african-americans are best in history. new ones came out. they are better than they were two-month ago. hispanic, the best in history. asian the best in history. overall they're phenomenal. the best in 51 years. i think we'll soon be historic on that one too. the economy is doing great. and that is the best thing i can do. reporter: [inaudible]. >> no, when i drove through i looked at it. we flew every but we also, you have some sections need a lot of help. you know what people don't know, i had a great meeting with elijah cummings in my office during my tenure. it was a meeting with drug prices. i saw him getting emotional

about drug prices. seriously emotional. i was seriously impressed. he cared about it. i would certainly meet with elijah and other people if they like. i saw emotion and feeling that they had for reducing drug prices. we worked hard. we actually had the first year in 51 years where prices went down. we can get them down much further if we get help from congress. so i think we'll do much lower drug prices over the next year. i think if elijah cummings would want help i am here but i did see him at a moment that was actually, i thought a very beautiful moment. i talked about it often because i see the political rhetoric every once in a while. i said that is not the same guy i had in my office. that was a very caring man that wanted to see drug pries lower. he wanted that for the community, for his community. i look forward to working with elijah, i look forward to working with a lot of people. opportunity zones are tremendous

foreigner cities. criminal justice reform is something we're proud of. thank you very much. thank you very much. >> i don't think i have to do outside, can i? can i go directly? can i go directly to the helicopter now? we'll probably stop by. connell: president trump a short time ago. melissa: he will stop by and chat. connell: almost no doubt about it. president in oval office a short time ago. first chance on camera to talk about the attacks over the weekend in saudi arabia that sent the price of oil skyrocketing. the president was asked at the beginning of those remarks whether iran was responsible for the attack. he said it i'm quoting, it is looking that way. >> also said, when he was asked how the u.s. would respond, it not like it was an attack on us. which was a telling moment, a lot of people have been saying you stand with your late. and he went on to talk about

from there any type of response. as the president said himself, we may hear more in a few minutes when he leaves on the south lawn of the white house, probably will stop to talk to reporters again. we'll see if we get that. meantime we have a market to talk about. melissa: stocks down across the board after oil is higher snapping a an eight-day winning streak. i'm melissa francis. connell: good to be with you. i'm connell mcshane. this is "after the bell." s&p 500 and nasdaq both down, second session in a row we've seen that. oil was the big story settling up in the floor session nearly 15%, following attacks on the saudi oil facilities. this is the biggest gain we saw for oil since december of 2018. melissa: that's right. i will be interested to see if we give it back tomorrow. meantime fox business team coverage. blake burman at white house, deirdre bolton on floor of the

new york stock exchange, phil flynn with all the action from the cme. we have grady trimble from a gm plant in detroit. we'll start off with blake. reporter: melissa, as we heard 23 minutes from president trump speaking inside of the oval office, most of it on the attack in saudi arabia at oil facility where most signs are pointing to iran at this point, as that was going, as that was happening saudi arabia's ministry of foreign affairs simultaneously put out a statement as president trump was speaking which basically echoed what the president said which was at this point all signs are pointing to iran but they are not definitely ready to say yet that it is absolutely for certain iran and where it was launched. this was a statement put out by saudi arabia as president trump was speaking. quote, initial investigations have indicated that the weapons used in the attack were iranian weapons. investigations are still ongoing to determine the source of the attack. as you heard from president trump say there, he said it looks like this was an attack

that was leveled by iran and at this point, while the u.s. military can take on any fight that may come its way, he said he doesn't necessarily want war in this case. here was president trump a little while ago. >> it is looking that way. we'll have some pretty good, having some strong studies done. it is looking that way. reporter: do you want war with iran? >> do i want war? i don't want war with anybody. reporter: president talking about the oil situation as you went over at the top of the show. the president said the spike in oil prices today, quote, not a problem. part of the argument the administration is laying out connell and medical medical medical melissa, said we heard this from energy secretary rick perry suggested maybe even five years ago oil prices would have gone up higher but the

trump administration is pointing to the successes in oil production over the last few years. perry, the energy secretary said it would be premature to tap into the strategic petroleum reserve. melissa: blake, you know all that is true. as we watch oil prices rise about six bucks, on the day a little more than 12%, the dow was only down 142 points. which is not a huge drop. it tells you that investors are not that worried about this meaning we have control over the oil supplies a lot of proof what you have said there, blake. thank you. we have retired lieutenant colonel dakota wood from the heritage foundation. let me start with the idea if it wasn't iran who could it possibly be? what are the possibilities out there in your mind who could have set these drones to cause these problems? >> right. well the houthis have executed something like 1000 or 1200 attacks on saudi arabia, various locations, airports oil fields et cetera.

it is technically possible that it could have been them. when you look at the location of this oil refinery, the distance from yemen, you know, i agree with the assessments that are coming out there are very few entities, iran being the chief one. whether it came from iran proper or southern iraq via shia-backed militia groups, that remains to be announced by the white house but all the evidence points to iran in this case. melissa: is there anybody else who would have the motivation? i would point out as the price of oil goes up everybody in the region benefits? even saudis ironically. price of oil goes up it helps them. there are a lot of conspiracy theories the idea maybe the president was thinking about sitting down with, anyone from iran at this upcoming meeting we have here at the u.n. and this would put that further away? i don't know what are your thoughts? is there anyone else it could be? >> if we were writing fiction, get into speculation and conspiracy theories -- melissa: no.

i want to cover all the bases. i don't want to jump to conclusions. >> yeah. right you have to have proximity. you have to have a weapon. you have the ability to orchestrate a fairly sophisticated attack. so you could speculate somebody who acts as a spoiler to cause problems for the united states or israel or saudi arabia. could it be syria? could it be russia? could it be china through some intermediaries? i think all of those are so far beyond the practical realm. melissa: okay. >> of what makes sense that we stick with iran in this case. melissa: what did it mean to you that the president said it is not like it is an attack on us, it is an attack on saudi arabia and he put distance between us and what happened, what was your take on that? >> well i mean again, it is a great estimate of the situation. if it was iran that attacked saudi arabia, it would be inappropriate for the night to act unilaterally to conduct military strikes against iran.

so in the issue of sovereignty, countries needing to cede to their own secured measures. saudi arabia has front line equipment. they have people trained in american training pipelines in schools. so it is really up to them to decide whether their interests have been harmed and they should take the lead in some kind of a response to that. as an ally, we would provide support as requested by saudi arabia. melissa: yeah. dakota wood, lieutenant colonel dakota wood, pardon me. thank you. connell: let's go to the markets and the reaction to all of this. we talked about oil. it was the biggest gain we've seen for oil in a single day in almost 11 years. phil flynn coming out in chicago. an interesting point a few minutes ago, after what happened last night we expected this in the oil market. but it will be, we'll be watching to see, phil, what happens tomorrow, as well as what happened already today. take us through it? >> we really will. overnight it was amazing how the

market reacted. the cme on the opening we started to see circuit breakers being hit but considering the gravity of this attack the trading was fairly normal and we had a circuit breaker. things paused. there was a lot of action of the a lot of people covering shorts when they were in trouble. it was interesting to up watt market while president was speaking hey we're not ready to go to war right this minute. oil prices dipped down in the after-market. they seemed to creep back up. the possibility that oil prices could pull back, might be about 50/50 based on headlines that we get overnight. some of the early reports we're getting out of saudi arabia, it does seem to suggest that they are having some success getting some of the production facilities back online but that won't matter if they can't secure the site. so that will be another concern overnight. back to you. connell: phil, we'll bring in our market panel with more. dan heninger "wall street journal," gary b.

smith, kadena group president, both fox news contributors. we saw a fairly calm day, the dow down only. we'll see whether we have military response and all the rest? >> news certainly for president trump. i mean the stock market today is clearly subjected, vulnerable to these hair trigger events. we watched it go up and down for over a year on reports on whether there will be a trade deal with china. connell: yeah. >> you add in something like this. make no mistake president trump's incumbency is based on a continuing strong economy, strengthen the market. so i think what we saw there in that press conference was the president trying to damp down any idea or suggesting anything is in the works that would disrupt markets or disrupt their thinking about what is coming in the future. so they are going to try very hard here to try to stablize

this situation. but i got to tell you, connell, i think it will come out eventually that the iranians were behind this. they are trying to disrupt the president's maximum pressure campaign against them. they will be sitting there waiting to see if the united states is going to respond to an extraordinary event like this. if not i think there could be more to come. connell: there would be pressure certainly if there was definitive evidence, gary, if iran was behind this to respond but did you read into it? looked like from phil flynn's report, the oil market read it, the president's comments was telling everybody, wait a second, i'm not rushing into war here? >> exactly even before the president said that, that was reflected in the market action today. melissa said at the top of the segment, markets down only 140. that is exactly right. you talk about something, i thought the markets today, based on news came out this week,

we're going to open down 500, it only opened down a little. then it kind of moved sideways. so i would have expected almost to be honest with you, even without the news, a down day anyway because we're right near the july highs. i saw it, kind of oddly as a very positive day. i mean you had these attacks here. you had oil prices spiking as you said. went up like, 10, 12%. the markets were only down a little bit. connell: not much in stocks for 14 1/2, almost 15% in oil in the floor session. gary, dan. thanks a lot. melissa. melissa: saudi officials considering delaying aramco's ipo following the attack. deirdre bolton with the details this is very interesting part of this story, deirdre. reporter: it certainly is, melissa. it has been cause for conversation for a while but our colleagues at "wall street journal" broke this particular part of the story. aramco officially considering a delay. it had been gearing up for a

two-part ipo. the plan was to list to investors first on local saudi exchange. then with shares internationally. the original saudi exchange was supposed to be in november. the way they were doing it was dodged by questions, if you like. was it really the right way to go public, starting local, then going international. that may change but our sources are now saying the company may want to fully restore production to normal levels before getting back on schedule. it is clear the recent attacks are arguably now the biggest hurdle to going public. as we know, even analysts from barclays putting out a note, melissa reminding us all, saudi arabia is one of the largest exporters. also holds one of the biggest reserves in the world. obviously this will affect that company and the rest of the oil sector as we very well saw today. back to you. melissa: amazing. deirdre. they have been talking about ipo for so long. that is another wrinkle to this

story. there may be a delay on that. interesting. connell: the timing is really interesting for lack of a better term. president trump is set to leave the white house shortly. we heard from him a few minutes ago. we heard from him again, maybe stop, speak to reporters on the south line. wasn't clear whether he will or not. if he does you will hear it here. breaking headlines from the white house this hour. melissa: general motors, tens of thousands of employees picketing and voicing their demands. we're live in detroit as the two sides remain far apart. that's next. ♪ seminole fact is, every insurance company hopes you drive safely.

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from gm's global headquarters. grady? reporter: melissa, the picketers you see behind me is small snapshot what is going on across the countries. 50,000 united auto workers union members are on strike. contract negotiations going on from here as you mentioned. those are behind closed doors. we're trying to get a better understanding what is happening in those meetings. someone close to the negotiations tells us so far today, they have been tense. there was exchange of words between the two sides but essentially they want to get back on track since the strike starred overnight. the meeting started 10:00 this morning. the main sticking point a representative tells gm, gm has a big foot print in mexico. they have in mexico out of all the detroit automakers. so far they are refusing to bring back production. we have been talking to workers today. some of them brought up mexico, they're fighting for better pay,

better benefits and job security. job security is important particularly at this plant outside of detroit. this plant is scheduled to close in january of next year. listen. >> i think it is more for the future. middle class has been eroding. we've been losing, losing. we've been making concessions for the past three contracts. >> of course job security for them would be general motors committing to a new product for this facility. we have that issue across the country in many of our plants that don't know. so the job security issue is one of the big issues outstanding. reporter: gm had nothing officially further to add about today's negotiations. they said they put forward a fair offer which includes billions of dollars of investment into u.s. plants as well as thousands of new jobs. we'll stick to this story and we'll bring you the latest as it comes. guys? melissa: grady, thank you. connell: quick analysis on this,

dan henninger from "the wall street journal" still with us. we should point out president trump is taking questions on the south lawn of the white house as expected. when we get a play back of that, we may hear from the president on this and other topics. interesting to hear grady's reporting on some demands or complaints from the workers, gm's footprint in mexico is coming up. these workers may have more of a friend with this than the average republican, what do you make of all this? >> they have a big friend of the president especially it is so important for mr. trump to carry michigan in the 2020 election. you have a whole lot of angry auto workers out there on the street. i don't think mr. trump wants their anger directed at him. it was interesting to me the way he put his thumb on the scale here, going on complain about gm moving production out of the united states. look, connell, they didn't want to move that production out of the united states. they did it because the labor structure, the cost structure

that has built up over the years is such that it has been making very difficult for general motors to make money on vehicles produced inside of the united states. connell: right. >> there is a real issue at the center of these negotiations. and i think it is not clear at all that the union is going to be able to provide all of the demands that this union is asking for and still being able to make money. the president is making it clear to them, don't even think about moving out of the united states. connell: because that issue, just the economics of it would be so tough as you suggest to work its way through, does that mean that the bet would be this strike might be a longer one rather than a shorter one? >> yeah. i think so, connell. i think both sides, the union has got, you knee, they're under pressure themselves. leadership is under pressure. gm is not in a position where they can make big concessions. they want giveback on labor costs, legacy health care costs. i think it is possible this

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melissa: breaking news, president trump speaking to reporters right now. the president saying he agrees with secretary pompeo that iran is responsible for the saudi attacks. president trump also commenting on how the stock market is reacting. we'll bring you more of his comments when we have them. that is just a taste. connell: all right. as we wait for that repercussions from the thousands of lawsuits linked to the opioid crisis. oxycontin creator purdue pharma officially filing for chapter 11 bankruptcy protection last night and here with some legal insight is fox news senior judicial analyst, judge andrew napolitano, who is also host among many other responsibilities "the liberty file" on our "fox nation" platform. so this is a perfect story. we've been wondering, waiting whether it would happen, it did, the bankruptcy filing. so a lot of people had sued. i guess the company figured let's file. it will be years and years of

litigation being costly. what happens to those people, the first question, the people who sued? >> all the litigations are stopped, including rather well-known controversial one in federal court in cleveland, defendants, oxycontin and others asked a federal judge to recuse himself because they don't like some of his preliminary rulings. that case stops much the 2,000 or so cases that have been filed stop. the agreements crafts just last week, connell with a dozen states attorney generals those agreements are all being paid. that is pre-bankruptcy. the important thing for people who believe they have been harmed by oxycontin to know, they're likely to get far less money from a bankruptcy judge, than they would from a jury. right now purdue pharma is not run by the board of directors. they are run by a federal bankruptcy judge, who will appoint a receiver, a human being, a lawyer, experienced in

these matters. that person will begin to accumulate all of the claims against purdue. that person will amass all the asset that perdue has, and decide how the assets can be used to pay claims without harming the essential core of purdue's work which is to produce pharmaceuticals that have been approved by the fda a. connell: sounds like if you were advising the company in this case this was a no-brainer in many ways as difficult as a bankruptcy filing and work-through can be the alternative, thousands and thousands of lawsuits, years and years of costly litigation would be just too much. >> connell, they have paid over 250 million, a quarter of a billion in legal fees. not a single case reached trial yet. they have surfed almost, almost irreparable pr damage because of all the negative press this has gotten. so they decided to cut their losses. they will not go out of business but the bankruptcy court, is not, will not, cannot be as

generous to claimants as juries would be. connell: doesn't matter what the merits, people have opinions all over the place. be curious to know what yours is, merits of some of these cases, the arguments the company was less important than the cost of litigating? >> this is not on the merits this is a business decision. which is a more efficient way to address these 2,000 lawsuits. bankruptcy or 2,000 trials. they obviously decided bankruptcy. they have very valid defenses. their product was approved by the the fda it is a lawful product. the paperwork for the company went to doctors. every word there was approved by the fda these cases are not slam dungs for states attorneys general and for the plaintiffs, but purdue made a business decision and this is it. connell: yeah. >> it is closely held. we don't know what the shares of stock are worth. we know people that own the stock are billionaires many times over. connell: this would have been a very, very costly process as you

said. already was, hadn't even gotten much of the way through it. judge. thank you. >> always a pleasure. melissa: vowing to solve america's housing crisis. bernie sanders unveiling his housing plan, admitting it is an expensive one. listen to this. >> under this plan we will invest more than $32 billion over the next five years to end homelessness in america. under my plan we will establish a national rent control standard, capping annual rent increases throughout the country at no more than 1 1/2 times the rate of inflation or 3%, whichever is higher. melissa: the total plan would cost $2.5 trillion. sanders says he wants to pay for it, with a, you guessed it, a wealth tax. here is glenn hubbard, columbia

business dean emeritus and head of the council of economic advisors under president george w. bush. >> my pleasure. melissa: emphasize the that we'll pay for this taxing 175,000 families at the top. their money has been spent and respent some times by the candidates. let me start with the idea they will not increase rent. it will be against the law, a cap, 1 1/2 times the rate of inflation. to me that seems like it would mean why would people become landlords if you know that exact return and it is limited? would there be rental properties? >> i think you put your finger on a huge problem with the proposal. basically the issue of with rent control is really restricting the supply. you simply won't have as much housing. that has been the experience in other cities. or that you would have run-down housing stocks. basically mr. sanders they want to ask, what problem he is trying to solve? and if it is getting more people into housing, a lot of great

cities have their own regulations that stop new construction, stop housing development, ill conceived rent control policies. it's a bad idea in search of a problem. melissa: that is one of the big complaint people say out of l.a. is that there are some regulations in the area about building shelters or any kind of building that can have a lot of different tenets inside of it. people don't want apartment buildings next to them, they're spending all money on homelessness, no one is building any place because they don't want it next to them. he proposed a federal investment of $32 billion the next five years to end homelessness to provide critical outreach services for those experiencing homelessness. no clarity what he is talking about? is it psychiatric services? yeah. >> we don't know. obviously a laudable goal and many serious people, economists and others studied the problems of homeness for many years.

there is not a silver bullet solution after new federal program. housing is a complicated matter. for sure the way to start isn't restricting supply. melissa: what do you think of the idea he wants to propose 70 billion in investment, which means spending our tax dollars to repair existing housing units and 50 billion in grants for states, cities and towns to establish land trust that will enable a million households to purchase affordable homes over the next 25 years? >> certainly worth every state and the federal government reconsidering affordable housing policy. but the right way to go about this isn't a kind of single one size fits all new federal program. we're already spending a lot of money at the federal level on affordable housing. the question are we spending it well? the candidates seem to be falling all over themselves for new programs, new ideas but with little clue how it will be paid for. melissa: yeah. glenn hubbard, thank you so

much. wish we had more time the president is coming up in a couple sections. appreciate it, sir. connell: president trumps remarks just wrapped up as we understand it. he has left the white house via the south lawn on marine one. he is on his way to joint base andrews. he will take off for new mexico with a rally in albuquerque tonight. his remarks are much shorter. we will get the play back in a minute. melissa: we got a preview of it, he commented on what secretary pompeo said whether iran is truly responsible for the attacks in the saudi oil field. he made a joke in the oval office with the crown prince of bahrain i may not and stop to cameras on the way out. still i have to do that? we found out he definitely has as he headed to albuquerque. >> the big topics of the day, gm strike, we talked to dan henninger a few minutes ago, to use dan's terminology putting his finger on the scale, of course attacks in saudi arabia.

once again here is the president moments ago. >> if you look what is happening with respect to the stock market is holding pretty firm considering what happened with respect to saudi arabia. but i think we're doing very well. okay. reporter: [inaudible]. >> federal mediation is always possible if that's what they want. hopefully they will be able to work out the gm strike quickly. we don't want general motors building plants outside of this country. and we're very strong on that. 9 uaw has been very good for me. the members have been good from the standpoint of voting. the relationship is food. hopefully they will work this out quickly and solidly. i just gave a pretty big news conference inside. we will be late for new mexico. we can't ever do that to

new mexico. reporter: mike pompeo is very certain iran is behind the attack. why are you not? >> we'll look at final numbers. you look at a vector, a lot of different things we could look the a, david. we'll know for certain over next short period of time. reporter: [inaudible] >> then we'll going to decide. then we're going to decide. reporter: [inaudible]. >> sate it again. louder? reporter: [inaudible] >> would this be proportionate, is that what you're asking? i would say yes. i would say -- i don't know who is going to new mexico with me, but i'll see you on the plane. [shouting questions]

reporter. [inaudible] >> can i what? reporter: [inaudible] >> oh i think so. they want to find out also. i think they probably feel they know but we're going to know very quickly. we have pretty much all the material we need. we'll know very quickly. reporter: [inaudible]. >> i think "the new york times" made another terrible mistake. it is a shame that a thing like that could happen. i see they're making a big correction today. they have just announced a correction but to do that about a supreme court justice is a terrible thing. it is a false accusation. whatever happened with the "new york times," i mean i can tell you personally they never check. they, we used to have a thing called fact-checking. they don't do fact-checking anymore. they used to call, say what about this, what about that? how can they do a thing like that and destroy somebody's

life? they're destroying lives. and it is fake news. it is just fake news. but it's a very fair question. they have to be very embarrassed but much more importantly what they do is wrong. they do it all the time. reporter: [inaudible]. >> well we have the strategic, if you look what we have, we have tremendous amounts of oil in our country. we're independent of everybody now of the we have more than anybody else. we're the number one energy producer in the world which took place very recently. we will soon be substantially more than anybody else. so it won't affect us. and ultimately i don't think it will affect the world either but it won't affect the united states. reporter: will it affect the economy? >> no, i don't think so. it will be fine. reporter: [inaudible]. >> we're going to see some of the african leaders at u.n.,

yes. reporter: [inaudible] >> i will see prime minister modi. we'll meet with india and pakistan. i think a lot of progress has been made there thank you. thank you. reporter: [inaudible] >> i don't know anything about it. reporter: [inaudible] connell: president trump on the south lawn moments ago off to new mexico, one thing, edward lawrence joins us from the white house. similar line of questioning from the president, we heard from the president basically twice in about an hour, about potential responding to attacks on saudi arabia, whether the response would be proportional. the president said yes it would. pick it up from there. reporter: the key themes do we know who did the attacks. the president hedging his bets, likely it came from iran. he will have the facts and

figures to try to figure that out. he said he is determining exactly where those shots, the strike came from and he is going to figure out the locations and respond appropriately there he also talked about, he talked about about justice kavanaugh, how that has been the situation there with "the new york times." he said, that it is just disgraceful what has happened to him. he said by leaving that out with the correction that was made there. he also talked about pakistan and india. very interesting about the general assembly coming up next week. the president saying that he is possibly going to meet with the president of pakistan and president of india to see if they can work something out between the two of the countries. maybe let's see, get them in the same room together. who knows on that front. i will tell you just quickly on china, they have learned from the u.s. trade representatives office, those deputy level talks will happen thursday and friday of next week. so we have confirmed thursday and friday the deputy level talks that will set up the face-to-face meetings for the

heads of the trade deems in early october. back to you guys. connell: while edward is speaking those are live pictures of joint base andrews of president trump boarding air force one after to new mexico for political rally. edward lawrence at white house. thank you. melissa: hit bit oil price hike. china facing a uphill climb from weak manufacturing and how this impacts trade negotiations coming up next. just another reminder of the value you'll find at fidelity. open an account today. of the value you'll find at fidelity. ♪ ♪ award winning interface. ♪ ♪ award winning design. ♪ ♪ award winning engine. ♪ ♪ the volvo xc90. our most awarded luxury suv.

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prices, whether these things hurt china enough to make them want to deal. what do you say? >> look, it does contribute to downward pressure on the chinese economy and i think chinese leadership is very mindful of the sort of aggregate cost of a trade war and it's a price they don't need to pay right now but i'll tell you something else. they have a more important goal here, which is to maintain their political dignity and maintain their leadership position, meaning no chinese leader can be seen as having caved or given in to outside pressure. connell: that's a bigger deal than the turn in the economy such as it is. by the way, what's it like now, you were just in shanghai. for example, is it obvious the economy is slowing down there? >> i would say somewhat the opposite. if you were in shanghai, the city is booming. it's bustling. it's a hungry, dynamic city. the overall growth in china has been upwards of 6% in china, it will be 7%, 8%, 9% economic growth. it's a very dynamic city. connell: in that city. in other places, rural areas --

>> yeah, rural areas in china suffer from a combination of brain drain and the rural areas aren't getting the investment, so you really have a huge urbanization over the last 10, 20, 30 years in china with younger folks want to live in the city, who wants to work on the farm. what took place in america over 100 years ago is taking place in china in one generation. connell: that's why some people thought now maybe oil prices do go up there, it hits their consumer, you know, they have been kind of hanging in there, hit by other things. as a final point, big picture, you expect some sort of deal soon or are you in the camp it drags on? >> i think, look, i think both sides know they will be better off. they will be better off resolving this and taking that pressure off the economy but they have to do so in a way that allows each side some measure of dignity and to have some sort of conclusion on their own terms. little bit of quiet statecraft will get us to the finish line. connell: fair enough. frank, thanks for coming in and hanging with us throughout the breaking news this hour. good to see you again. melissa: a lot of news this hour.

we heard from the president twice, we watched the markets close down but not as bad as it could have been given everything that happened over the weekend and everything going on in the markets. connell: you made the point at the top, let's see what oil does tomorrow. thanks for joining us. see you tomorrow. melissa: "bulls & bears" starts right now. that was a very large attack and it could be met with an attack many many times larger very easily by our country but we are going to find out who definitively did it first. david: locked and loaded. that's the president's warning after a fiery weekend of drone attacks on two key saudi arabian oil facilities. those drone strikes raising new war worries and sending oil prices soaring nearly 15% to their biggest gain in almost 11 years. and the president says would have been a lot worse if he hadn't made the country more energy-independent. hi, everybody. good to be back. this is "bulls & bears." i'm david asman. joining me on the panel today, jonathan hoenig, liz peek, gary