clocking in two time cards. authorities say others would clock in and then leave. this has been happening in italy. the mayor said all the suspects are under house arrest or they've been suspended. thanks for being part of the real story, i'm shannon bream. it's time for shepard smith. it's 3 clock on the west coast, we'll look at his sitdowns with the governor there, mike pence, and newt gingrich and others as the clock ticks towards the convention. and perhaps the most decision of trump's campaign, it comes as there are new polls showing him gaining grounds in a few swing states and it looks like hillary clinton's trust issues may have something do with her new troubles, expect other brand-new polls show just a little bit different. also the islamic state promised its own caliphate with its own laws and its own government.

the caliphate is potentially falling apart and isis starting to warn its own followers its plans are crumbling. let's get to it. now "shepard smith reporting" live from the fox news deck. and first, republicans, the center of the political universe, for a moment, is indianapolis. donald trump in the hoosier state heating with two men, said to be finalists, the former speaker of the house, newt gingrich, and the indiana governor, mike pence. and fox news has learned the new jersey governor, chris christie, met last night with some members of trump's family. earlier, he joined trump on the campaign trail, and the campaign indicates an announcement could come by this friday, two days, and trump himself tells special report anchor brett beher, he's

narrowed down his choices. >> chris christie is somebody i've liked a long time. he's a total good guy. a lot of people don't understand that. but i'm narrowing it down. i'm at flthree, potentially fou but in my own mind, i probably am thinking about two. >> like brett said, narrowed it down to two. you can watch the full interview with trump on special report tonight 6 eastern, 3 pacific on fox news channel. we'll also have more on the running mate search in just a moment. but first, the polls. donald trump, taking the lead in some key swing states. this is a quinn nipiak survey, ahead of hillary clinton in both florida and pennsylvania. in addition, they're tied in ohio. the biggest change is florida, where secretary clinton had an 8 point lead just last month. the polls are saying in each of the swing states, secretary clinton lost ground to trump on questions about moral standards and honesty. they also point out no candidate

has won the white house without taking at least two of these three states since 1960. meantime, the latest poll from nbc news, the wall street journal, has clinton leading in iowa, a state quinnpiak did not show, but clinton is leading in pennsylvania in this survey by 9 points. micah emanuel, covering the campaign, first, carl is in indianapol indianapolis. jeff sessions just showed up, what's up with that? >> reporter: it was the first senator to endorse trump, and helped trump cast his immigration policy, and the chief of policy for the trump campaign is steve miller, who is an individual who has been working for jeff sessions until he joined the trump campaign for years on capitol hill in the u.s. senator's office. trump really likes sessions'

advice, likes his temperament, and acknowledges it's jeff sessions who gives him a valuable perspective and calms him down. you played the sound bite in which it's probably down to two. sessions is likely at the back end of the short list. the short list was ten, it went down to five this weekend, it was four just a couple days ago. sessions is probably getting a cordial meeting now and being told i'll talk to you in the next couple days, but he's probably not the top two. earlier today, newt gingrich was here. newt gingrich is likely to be one of the top two. trump has been talking about him, said heel definite'll defi a job in his administration somehow, and then there's the question of chris christie. he's a longtime friend of donald trump, their families have spent recreation, leisure time and things like that and they really get along. they're pals. but christie may not get the nod either because mike pence has been the center of the

attention. when you think about it, all of these three came to trump. trump came to indianapolis, and this is the state where he's the governor. they had breakfast this morning, so an awful lot of the speculation turning on the hoosier governor. and when it comes to trump's decision, because it's a real illustration of judgment, and in the case of pence, he's an executive of a state. he's been a legislator, in the republican congressional leadership. he's a very stanch conservative, and while tough, he's much more mild-may bor mil mild-mannered. trump said he doesn't need a pit bull. he needs someone with some experience and can work in washington and help unite the country. pence, we know that would fit that bill and trump's family is where the big money is going to be bet. and as you said, the expectation is he'll announce it on friday. >> you were in the room when brett interviewed trump.

any more news out of that? >> reporter: a lot of news, actually. you'll want to watch tonight, what he said about ruth bader ginsburg. trump is really upset and really questioning her judgment and more, so watch for that. but more than anything, people who only get to see trump at the podium and on the campaign trail, see the larger-than-life ndidate that he is and not the behind-the-scenes guy. trump was cordial, flighpolite friendly. he give us a couple sort of pushbacks, but it's a very, very different person that donald trump is behind the scenes, and that's the person who is wrapping up these discussions with his potential running mates. down to two, pence and christie, the likely two, sessions -- excuse me -- pence and gingrich, the likely two. christie and sessions probably at the back end of the short list that went from four to two

overnight. >> huh. and we're learning of a lawsuit involving a trump aide. do you have any details on that? >> reporter: yes, one particular person in the communications department was let go and trump is suing this individual for breaking the nondisclosure agreement. trump makes many staffers and employees sign what's called nda's, nondisclosure agreements. you can't talk. this guy is accused of leaking to the press, and for that he's being sued. that's uncommon. litigation against a staffer for talking to the press when they're in the accountant's office is not something i've heard before in presidential polit politi politics, but he's had 3,500 lawsuits over the course of the last decades and now he's suing a former staffer for violating that nda and leaking to the press. trump is very, very careful

about secretcy. >> carl, thanks so much. bernie sanders will campaign and heavily for hillary clinton, especially in key battleground states, what both campaign managers tell politico as they came together ahead of yesterday's endorsement, they said a major factor of adopting some of senator bernie sanders policies, moving forward on healthcare. secretary clinton gave a speech today. she went after donald trump in a big way and for a long time. >> that's right, shep. >> reporter: she got pretty tough with donald trump saying we don't need his kind of fear mongering, and hillary clinton said donald trump is dangerous and as divisive as we've seen in our lifetime, and here in springfield, the land of lincoln, at the historic old state house, clinton took this swipe at her opponent, trump. >> this man, is the nominee of the party of lincoln.

we are watching it become the party of trump. and that's not just a huge loss for our democracy. it is a threat to it. >> reporter: clinton was clear to say although we face some serious challenges in this country, they are not as serious as those faced by lincoln in his era. >> unit, uniting the country seems to be a theme from secretary clinton. >> there's no question about that. she made reference to the terrible violence we saw in places like dallas, minnesota, and louisiana, and called for unifying the country. there were references by clinton to the wrong people getting their hands on weapons, and she called for doing more to stop gun violence. clinton spoke about her vision of the future. >> we do need criminal justice reform to save lives, and make

sure all americans are treated as equals in rights and dignity. we do need to support our police departments that are trying to get it right, and honor the men and women who protect us every day. >> reporter: after the endor endorsement from bernie sanders yesterday, clinton is hoping the democratic party is unifying, then she hopes to bring the country together, but she's making the case that she is the kind of leader that can do just that. shep? >> micah manual, thank you. turn to david cantonese now, the u.s. senior writer. what do you think? polls. >> they're all over the map. you've got some good moves for trump in the headlines over hillary clinton last week, comey clearing her of charges but saying she did a lot of wrong things on that private e-mail server. but look you've also got nbc polls out today that show clinton with battleground leads.

and look n two weeks, all of these polls won't matter because we'll have gone through conventions and things will shift around even more. i think big picture is clinton has a fundamental advantage because she can lose more of these states that n trump can. trump has to carry florida where it's close, and has to carry ohio where it's in a battleground state. so she just has more wherewithal to move around the elect ororelp and carve out avictory. >> he tends to be acting different s. that for his good, to his detriment? what is it? >> i've talked to my colleagues. you're definitely seeing the influence with the advisors, with the teleprompter reigning in his remarks in rallies and interviews, but there's something lost there when trump is onteleprompter, when he's too scripted. i'm sure he's wrestling and the campaign is wrestling with it because i'm noticing he's losing

a bit of pizazz. it's not as sort of free-wheeling as we've seen it. so i think that is going to be really important to watch for next week at the republican convention. does he show any of that free-wheeling flair, or is it straight to prompter, and he's not the trump a lot of the base and a lot of the republican voters liked and propelled him to victory. >> here's what i don't get. you're in the middle of a vp search, or roll out, your opponent's having a bad week and you file a $10 million lawsuit against a low-level staffer, what is that? >> he is spiteful. trump is spiteful and he likes to punish people who cross him. this is an aide who was fired because of some racist facebook posts. trump got rid of him and he threw him over board. sam nunburg does talk to the press. he also had a big beef with cory

lewandowski, who trump fired. one thing we know is trump likes to file lawsuits, as carl cameron cited, the number he's filed over the years. this is not the -- you know, he still has his about interests at heart, even through a presidential election. >> david cantonese, formal u.s. world report, thank you. i'm all choked up. brett's interview is coming. two brand-new polls for virginia and colorado. these are fox news polls and break will review them on 6 eastern, 3 pacific. how do you keep thousands in the city when things could get violent? you'll hear from the united states secret service about plans for protecting the convention in cleveland and beyond. also, pokèmon go. we'll get to that.

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in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov the cleveland police chief has ramped up security for the republican convention after the deadly ambush of five police officers in dallas. the secret service reports there will be a security perimeter around quicken loans arena where most events will take place next week and if you plan to drive around the city next week, maybe change your plans. a lot of road closures expected.

fox business's blake berkman is live already. this is difficult isn't it? >> reporter: yeah, there are 73 different agencies, shepard, at every single legal, local, state, and federal joining in on this one, including the coast guard. if you live here, you plan on driving around, check a map. much of this place is going to be locked down. we're starting to get a little bit of a feel here that convention is here, but not entirely here. take a look at these steal barricades. these are slowly start to go up in the coming days. an agent in the secret service said they are rolling out different kind of operations like this, listen. >> in the last 72 hours, the secret service, we've started some of our preplacement of assets that will be going up to secure the national special security venues. in addition to that we have the

full support of the department of homeland security and department of justice through the federal bureau of investigations. >> reporter: just to give you an idea of where we are, shepard, the lake, and of course next to it where the cleveland browns play. so come on over this way. here's the convention center which will be barricaded across, and then about six blocks to the east, is the q. and speaking with the rnc, and with the local police commissioner here, or the agency that looks over the police officers, they say the convention center and the quicken loans arena where the convention will be, will be two of the safest places on earth, it's just what happens with the protesters outside of that. shepherd? >> blake burman outside of the q. whoever wins the white house, had best correct the move movers. there are two, 1,600 pennsylvania avenues. two of them? what happened in. >> this is 1,600 pennsylvania avenue southeast. it's the department -- >> southeast now. >> it's an apartment complex

about five miles from its much, much more famous neighbor, the white house, which is 1,600 northwest. developers petition for the change. they got it. now they can charge anywhere from $1,400 to $3,000 to live there. >> the price went up just because? >> it did. just because. it's got some nice views of the river, and corn hole, which the white house does not have. >> they'll have it if trump gets in there. >> maybe. of course they're saying some people are showing up because they think it's a mistake, but then you get there, you realize not quite. >> good for those developers. that's pretty hilarious. ryan, thank you. a little more than two years ago, isis terrors were announcing caliphate declaring state hood and demanding others swear their loyalty. now there's word the caliphate is on the brink of collapse and the terrorists plan to make up for it with more attacks on other countries. details on that, next.

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isis terrorists are getting ready for the possible collapse of their so-called caliphate, according to the washington post in today's edition. it warns the islamic state are warning supporters, their strong hold could fall. and isis is threatening more attacks around the globe. the long time islamic state oprittive said they are turning away supporters who want to come to the middle east to fight and instead, telling them to stay in their home countries and quote wait to do something there. ash carter said the pentagon is sending hundreds more u.s. troops to iraq, who says they'll help iraqi forces in the fight to take back mosul.

that city is the de facto capitol of iraq, and announced last month they liberated another strong hold, fallujah. a price winning pullitzer reporter, it's at washingtonpost.com. i appreciate it. >> it's a pleasure. >> the big picture they are telling people, the caliphate may be collapsing, state home and fight there. what does that mean for isis in the main? >> this is truly interest interesti because isis is all about the caliphate. they announced huge fan fair two years ago. everybody had to come fight with the caliphate, this world-changing event. it's not going to collapse next month, but they're starting to tell people the people we may lose this caliphate and we'll have this go underground again. >> does that hurt one of their strengths, their p.r. and their

recruiting methods? >> yeah, and we shouldn't get too confident about it. it means they don't have a sanctuary if they get drink out of the area they call caliphate. they lose a big propaganda point, but can still create terrorist acts, to show they're still around and relevant. >> it stands to reason if your p.r. is starting to get bad, you make big p.r. moves and that's blowing a bunch of people up and killing people. >> that's classic p.r. airport shopping malls, people in the diner. it's civilians in places that aren't guarded. that caliphate thing, we kind of have to forget about that, perhaps. >> fallujah, itself, there may not be much left, but retaking it from isis, seems to have been a successful venture. what are they thinking as they

move forward towards mosul? >> they're getting more and more isolated and supply lines are being retrained, perhaps cut off. the iraqi troops, the other forces helping us are getting closer and closer. we've got more people in the field. it looks like those cities may fall. the timeline is uncertainty. it may take weeks or much longer. clearly, the momentum is on the side of the u.s. at this point. >> toby warric, helped write the article for "the washington p t post." thank you. >> my pleasure. mourners gathered at the first funerals for those who e died in the police attacks, you'll hear from relatives as we approach the bottom of the hour and the top of the news. constipated?

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has died in a hospital in italy at 83. he spent more than four decades before his capture, on the run in the italian countryside. a mall in pal o alto, saying a robot ran over her 1-year-old son's foot, according to the san jose mercury news. the boy is okay, and the robots are supposed to alert security guards of central crimes. video shows a bear cub that got itself trapped inside a car. would you look at this? happened at a camp site outside denver. two deputies had to open the rear hatch to let the bear out and said the cub probably opened the door on its own since it didn't damage the car.

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they say a bull crashed into a group of people and gored a man from new jersey. gored him in the leg. we're told nobody was seriously hurt, but bulls have gored four americans since the festival started last week. four americans who put themselves in the way of the bulls. it's not like the bulls came out of the area and decided to attack them. that's not how this works. some images in our slideshow this afternoon of this year's running for the bulls in pamplona. here's is a picture of one person scrambling to get out of the way. today more than 1,000 people took part. it lasts only two and a half minutes before everybody makes their way into the bull ring. this man seems to be trying to take a selfie, and the file is "things i don't understand." there you have it. another thing i don't understand. here's one of them getting the m m mattador who put himself in front of the bull, and check

this photo of a man leaping in front of a bull. things i don't understand. you could be dead and we would still be talking about you, but were you dead, we would not show the picture because it's too gory for people who want to see you jump over it but they don't want to see you crushed to death by the thing. we wouldn't show it if you died, but since you just jumped over it like the fool you are. 12 people have gotten hurt in this year's festival, which kicked off last week, and it was a great time for everyone, especially the bulls. funerals began today for the five officers who died protecting the people of dallas as a gunman went on a rampage targeting police. we edited taps there. they didn't do it that way. fellow officers, and family mourning the officers of brent thompson. his children thanked the people for their support and said they remember their father as a hero who worked countless hours of

over time but never missed a christmas. >> one thing i would always say to my dad when he walked out the door was, good-bye, daddy, i love you, be safe. and tonight, we say our final good-bye, daddy, we love you, be safe. >> brent thompson was a marine, a grandfather, a marine, a newly wed, with a fellow transit officer. his is one of three funerals of heros that died. rick leventhal, at dpd headquarters, another tough day, ric. >> reporter: all of the men being remembered as you brave warriors e protecting and serving who ran towards the gunfire as t 2400k

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so, if you walk around somewhere, especially in new york city these days, you see a

bunch of people intensely staring at their phones, potentially ignoring everything around them, which is sort of like every day. you worry maybe they're going to get clipped by a cap, or mugged or something wonderful like that. they're not even tourists, they're gamers playing pokèmon go. it's caught on like really nothing we've ever seen. nearly as many activity users on twitter and android. you know how it works, just walk around with your phone and if you see a little pokèmon on the screen, you have to capture it, but you have to get out of the house to do it, which is a world changer. try not to walk into traffic, or a lake, or into a mugger. here's one of our college associates capturing pokèmon weedlo obviously in midtown manhattan. streets, parks they're all fine, be careful. on this list of things we should not have to say, police don't play at national cemeteries, or holocaust memorials because that's been happening, and that said, two marines playing the

game, did help police catch an attempted murder suspect in southern california. they were out playing when they spotted a suspicious guy in a park, and it seemed the guy had an outstanding warrant after calling the cops. so pikachu saved the day. and the correspondent at large in nashville. i have an addicted personality, because i've not downloaded this already. but i see everywhere, they're out. what are they doing? >> we . >> they're pokèmon trainers, and trying to catch them all over the world and all over the country. pokèmon go hasn't had its global launch yet. we're in a beta phase, if you can believe that. >> people at home are sitting home watching and don't have any idea what we're talking about. what is pokèmon go? 101 level? >> it's a free game, ios or

android. if you remember the whole craze from the 90s, this is all based on that, all the characters, all the ideas. it's an app, and basically, you sign in for free, you go through a couple steps and then you walk around hunting for pokèmon. now, the power of this thing is that it uses real maps , it use real information. it's connected to these poke stops and these pok evee centert real landmarks, and here's the other big thing, it uses augmented reality. so when a pokèmon is around, you can basically feel a buzz on your phone and there it is on screen. >> you can see him? like on the rock in central park in. >> if it were in studio, maybe it would be right here, and you're flicking the pokèmon ball at it, and trying to capture them, and goes into your poke decks. millennial knows what i'm talking about because they spent their lives playing things, and plays off the millennial

nostalgia. it makes some sense. i've played and i have had fun, and it becomes this communitial thing f. there's pokèmon in one area, it's there for everybody. it's not like one person gets it and there's none for anyone else. and it's a game with levels. you can level up. once you level up, you can go to a gym, which is basically -- >> which might be aunt fern's house. >> by the way, the other crazy thing about this, is some people are learning and finding historical landmarks and there's picture about it, so they're learning about their environment, outside of their home, off their couches, which is kind of nice. >> there are thousands of pokèmon go stories. one guy found a dead body -- or a live body. but one guy found a dead person,

and people kept going up to his door. sudden suddenly, he had a gym there and he had to tell neighbors he's not selling drugs out of the dang place. >> when you see people clustered around, they're probably searching for pokèmon. >> john and emily are here, our college associates because in the new world you don't get to have interns anymore. paige, emily, do you play? >> i do not. >> why not? >> i'm not big on upon as aapps games. i went out yesterday and tested. >> how was that? >> it brought back memories from when i was young. >> from like a week ago. >> and go on. tell me about the memories. >> my brothers used to play pokèmon, so i thought that was kind of interesting, it was coming back now. i thought it was totally out, but the bizarre thing is we were testing it out and people were walking by on the street, looking at the same little pokèmon guy we were looking at. >> that's creepy. >> it was creepy, i have to say.

>> or fun. >> creepy and fun can coexist, but never beautifully. >> and i had a friend come into the city and he came an hour early to play. >> to play pokèmon? >> to play pokèmon, to run around the city and play. >> i tell you something, my daughter sits on the couch, usually snapchating. she went out last night, to the town just to catch pokèmon. so this is -- this is changing lives. >> there are grandparents watching. should they fear this? >> they should because you don't know where it's going to lead the -- the children, and for me, i'll admit, i did come into work a little bit earliey yesterday just to see if there were any pokèmon. >> are there any here at world headquarte headquarters? >> there are. >> have you checked with fox security? >> no, but i should. i caught two in front of the building. >> you caught two in front of the building? >> i did. >> but them in jail. >> thank you. >> thank you. happy pokèmoning. >> i don't know, but i think

we're going to own this. i think we're probably going do a pokèmon story every day. not this long or have the college associates here, but i feel like it's relevant. >> when the movie comes, making the movie. >> is it a fox movie? >> i don't know. >> it better be. never mind the risk. we'll be here in a minute. beyond has a natural grain free pet food committed to truth on the label. when we say real meat is the first ingredient, it is number one. and we leave out corn, wheat and soy. for your pet, we go beyond.

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well, the united kingdom has a new prime minister, theresa may. she took over today after david cameron turned in his resignation at buckingham palace. queen elizabeth minister to mak official, and courtesied and made it normal. >> following the referendum, we face a time of great national change and i know because we're great britain, that we will rise to the challenge. as we leave the european union, we will forge a bold, new,

positive role for ourselves in the world. >> well, before that, david cameron wished her well as he stood outside number 10 with his family. cameron did not support the campaign to leave the eu, and said he would resign after the vote for brexit. theresa may also opposed leaving the eu, but has promised to make it a success. greg palkot in london tonight and i see she has a cabinet now with some familiar names. >> reporter: unbelievable, shep. standing outside of number 10 downing street, the official residence and office of the prime minister, now the new prime minister, theresa may, i'm reminded how glacial politics are. she was in parliament, and buckingham palace, and over here talking to the public. tonight she has been naming names. she has been naming her cabinet. we've been watching folks pass by us. one big name the folks in america will know, boris

johnson, the former london mayor. he has been named foreign secretary. that is crucial. that's one of the biggest jobs that she's got. he was anti-european union. this and other appointments indicate she is trying to cross over the divide and try to include everybody and she'll have another four years to do it. there's not a general election until 2020. she's a hard worker and she will be working hard. back to you, shep. >> thank you, greg. and we'll be right back. managing my diabetes has been a struggle. i considered all my options with my doctor, who recommended once-daily toujeo®. now i'm on the path to better blood sugar control. toujeo® is a long-acting insulin from the makers of lantus®. it releases slowly, providing consistent insulin levels for a full 24 hours, proven full 24-hour blood sugar control, and significant a1c reduction. and along with toujeo®, i'm eating better and moving more. toujeo® is a long-acting, man-made insulin used to control high blood sugar in adults with diabetes.

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79 years ago today. when news breaks out, we break-in. breaking news changes everything on fox news channel. everybody is a new high, new high on the dow. exciting isn't it, sandra? >> all right, the buzz is building as donald trump meets with indiana governor, mike pence, and later, with former house speaker, newt gingrich. who will trump pick as his vp? someone on that short list is here. welcome, everyone, i'm sandra smith in for neil cavuto, and this is "your world." we are going to be speaking to lieutenant general michael flynn, in just a moment, but first, where the veep-stakes is at full throttle. >> reporter: several high profile meetings, potential vice presidential running