america's news headquarters pretty just heard from the president taken questions on north korea following that security briefing. more will be to follow on fox news channel. thank you so much for joining us. i'm sandra smith and here is chap. >> >> shepard: it's noon on the west coast. 3:00 p.m. on the east coast. president trump just doubled down on his fire and fury comments about north korea saying maybe he didn't go far enough and that north korea better get its act together. no sign of that happening. in north korea, thousands rallying for kim jong-un. he's threatening to fire missiles towards our base in guam. this is new test of sorts planning to land them in the waters miles offshore. our japanese allies say fear not. they got this. plus, the president with his battle with the top republican

in the united states senate and it has just turned up another notch. mr. trump again ripping into the majority leader, mitch mcconnell for failing to repeal obamacare. mcconnell says the president has excessive expectations for congress. wait till you hear about their phone call. also, are the russians taunting president trump? a spy plane in moscow over d.c. and the president's golf club. what will d.c. do about it? nothing. it's legal. let's get to it. maybe the fire and fury statement wasn't tough enough. that from president trump just minutes ago during a meeting with his security team at his golf club in new jersey. >> frankly, the people that were questioning that statement, was it too tough, maybe it wasn't tough enough. they've been doing this to our country for a long time, for many years. it's about time that somebody stuck up for the people of this country and for the people of

other countries. and if anything, maybe that statement wasn't tough enough. >> shepard: the president said north korea needs to get its act together or it will be in trouble like few nations have ever known. the president said you threaten us, you'll file the fire and fury. well, they're threatening. red line crossed. the hermit kingdom is mocking president trump. the general for the rocket military called the trump's fire and fury threat a load of nonsense. he said he's made a pointed announcement, north korea announcing they're about to take military action. the leaders are working to finalize in the next week a plan to launch missiles to splash down near guam. the north korean general says the president's comments are

getting on the nerves of the regime's soldiers. here's part of a statement from north korean state run media that got pretty personal. >> we cannot have a sound dialogue with a senile man that can't think rationally and absolute force can work on him, this is the judgment made by our soldiers of the strategic force. >> shepard: the north korean general also said the military is finalizing plans to fire those four midrange missiles to fly over japan and land just 20 to 25 miles off the coast of guam. if the dictator kim jong-un could give the okay by the middle of the month. they're standing by for the order. president trump just responded to this. >> if north korea does anything in terms of think about attack of anybody that we love or we represent or our allies or us, they can be very, very nervous. i'll tell you what, they should be very nervous. >> two days ago, it was

threatening bad things will happen and now it's do something bad things will happen. rick leventhal has the breaking news in bridgewater, new jersey where the president is on a working vacation. rick? >> shepard, just for context, these comments we believe were made just before the security briefing that the president scheduled to receive along with his national security adviser, m.r. mcmaster and john kelly, his chief of staff. vice president pence was standing next to the president on the front steps of his clubhouse when he came out and briefed reporter, the press pool before we believe -- before he wept into the meeting. we're told we will get more when the meeting concludes. as you mentioned, the president doubling down on his fire and fury comments warning north korea to stop in its tracks and not make anymore threats and certainly not take any actions directed at guam or anywhere else because as the president said, thing will happen to them like they have never dreamed of and have never seen before.

so he's clearly sending a message to north korea to stand down or else. >> shepard: rick, the drama and mixed messages from within the trump administration over north korea continues. the state department spokesperson claiming everybody is staying in their lanes. all speaking from one voice. not on different pages. that was jed. from heather nauert, "the washington post" reports the deputy assistant told the bbc "you should listen to the president. the idea that secretary tillerson is going to discuss military matters is simply nonsensical." this is a new quote. "it's the job of secretary mattis to talk about military option and he has done so unequivocally." woe be to anyone who militarily challenges the united states. that is his mandate. quoting now, secretary

tillerson, it's his portfolio to handle those issues. rick, what is happening here? >> well, the president addressed these kinds of questions a short time ago during his comments to the press pool. he said that in fact the administration is on the same page. that yes, secretary mattis spoke forcefully about using strength and military against north korea. that secretary tillerson was following his track to deal with diplomacy. there's the u.n. sanctions that could cost north korea a billion dollars. he says the goal is to squeeze north korea economically and hope that prods some sort of diplomacy. the president says he doesn't think it's going to work. he's not convinced it's going to work. that's why this talk there's potential military action. the administration is asserting that they are on the same page, that all of these different people have these different jobs and following these different tracks. as you mentioned, sebastian

slapping rex tillerson saying you shouldn't be talking about military matters. you should be sticking to diplomacy. there's other examples the past few days and weeks that suggest that not everyone is on the same page. the administration insists that it is. >> shepard: rick, at the same time, the president has launched a bizarre war of words with mitch mcconnell and it escalated today. two escalations today. first, this morning the president tweeted, can you believe that mitch mcconnell, who has screamed repeal and replace for seven years couldn't get it done? must repeal and replace obamacare. and mitch get back to work, put repeal and replace, tax reform and cuts and a great infrastructure bill on my desk for signing. you can do it. that was this morning on the twitter. just a few minutes ago on the microphone, the president suggested that if leader mcconditional can't get his agenda pushed through, he should step down. this all started when the senate majority leader said the president had excessive

expectations about how congress works or doesn't work. fox news has learned the president really laid into mcconnell on the telephone. his quote from the day, which i thought we were about to play from you, which didn't make it -- let's play that quote from him. this is the sound bite. listen. >> well, i'll tell you what, if he doesn't get repeal and replace done and if he doesn't get taxes done, meaning cuts and reform, and if he doesn't get an easy one to get done, infrastructure, if he doesn't get them done, then you can ask me that question. >> shepard: you can ask me that question. that's a suggestion, rick, that if he doesn't get it done, he ought to step aside. he can't do anything without mitch mcconnell. >> doesn't sound like a ringing endorsement. we heard from ed henry about a phone call that the president made to mitch mcconnell that lasted ten minutes and got increasingly heated. the president obviously very angry.

apparently ripped into the senate majority leader over the comments he made regarding the delays in getting the held care bill repealed. blaming it in part on president trump's inexperience. the president told mcconnell that he didn't appreciate the criticism. he still expects republican leadership to repeal obamacare and former house speaker newt gingrich weighed in on "fox and friends" this morning. >> the president can't disassociate himself from this. he's part of the leadership team. he's not an observer sitting in the stands. he's on the field. it was a collective failure. >> ed henry reports that the president lashed into mcconnell over john mccain's lack of support on healthcare. he said he didn't understand why mcconnell was allowing mccain to keep his chairmanship of the senate armed services committee is since he's bucking the party. and the president said perhaps if mcconnell doesn't move

forward, he should be asked about whether he should resign. >> shepard: on top of all this, five lead stories in one day, on top of this, many of you i'm sure remember red, the vice president suggested -- well, there was a report that the vice president was getting ready to run for president in 2020 in case president trump was not available for whatever reason. he pushed back hard. the president and the vice president met for the first time today since then. what happened, rick? >> they had lunch today at the president's golf club at 12:30 p.m. sarah huckabee sanders was here for a briefing. i asked they are was there a reason why the vice president and the president were at lunch today. he said the two sat down together. the vice president is getting ready to take off on an overseas trip. this was a chance for the two to get together before the vice president leaves the country. mr. pence pushed back very hard on "the new york times" story when it broke calling it fake news and disgraceful and offensive to him and his team.

shepard, he says he's going to work very hard to get the president re-elected in 2020. >> shepard: all right, rick. very busy day at the golf course. back to north korea. a lot of new developments. let's get to rich edson at the state department. rich, i heard you asking questions of our former colleague there, the now state department spokesperson. she really fired back on some other matters. north korea was front and center. what did we get? >> it led off the entire briefing. the last couple days, the state department has dealt with the issue that the administration has dealt with, which is the questions of the president saying "fire and fury" and the secretary of state saying americans should sleep well at night and there's no imminent threat. t what the state department is saying in responding to the responses from the president had just come out and this is what the state department had to say at the top of the briefing. >> i'm not aware of the president's comments. i have not heard them myself.

matt, i trust you. you're an excellent reporter. you always get it right. our position and policy and strategy hasn't changed one bit. >> remember, shep, it was last week the secretary of state himself before he went to asia said to kim jong-un we're not looking for regime change. we're just responding to your aggressive behavior. >> shepard: from what i understand, nauert said that the state department believes this pressure that the president is putting on, the fire and the fury, they think that is working. >> right. even despite the last ballistic missile tests, the state department is saying look, this pressure campaign takes time to get these nations to work together in concert. they point to the u.n. security council resolution as evidence this is going well. the question is pointed at china and whether china is doing enough. accounts for 90% of north korea's trade. what heather nauert had to say to that, china has made some progress here but china tends to lose momentum. so the u.s. is trying to stay on china to keep it up and to do

more. also, the state department is reiterating that it's not going to negotiate its way back to the table with north korea. north korea has to stop the launches before the u.s. will talk directly, shep. >> shepard: rich edson live at the state department. ahead we'll talk to a journalist that wrote a book on the showdown with north korea. he says the north is testing the president's fire and fury threat. so what should the united states do next? think of it. the president of the united states said to the north koreans, if you threaten us again, fire fury and power. it's coming if you threaten us again. well, they threatened. they threatened to send missiles towards guam to land in the water 20 to 30 miles off the shore. that's a thread, a red line crossed. now what?

experience unparalleled luxury at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now.

experience amazing at your lexus dealer. sargento balanced breaks.ow good things come in threes. natural cheese, dried fruit and nuts. three wholesome ingredients that are never, ever a crowd. sargento balanced breaks. find them in the sargento cheese section. alzheimer's disease the fi is out there.survive and the alzheimer's association is going to make it happen by funding scientific breakthroughs, advancing public policy, and providing local support to those living with the disease and their caregivers. but we won't get there without you. visit alz.org to join the fight.

>> shepard: the president says don't threaten us, north korea or fire and fury. and then north korea threatens us with missiles near guam. then the north koreans taunt the president calling him senile and untrustworthy. now the president said to the north minutes ago, do anything to us or anything we love, we're coming at you. let's bring in gordon change, author of "the nuclear show down, north korea takes on the world." rhetorically speaking, we're after it. >> certainly. there's things that president trump could do to punish -- >> shepard: what about what he's done already? how is this rhetoric going to

fly? >> the rhetoric about the firing the four missiles on guam, being specific about that threat, we have to do something before they fire those missiles. >> shepard: they say they're going to decide by the middle of august and the order is coming shortly. >> there's things the president can do immediately. they do not involve military force. >> shepard: like what? >> he can have his treasury department declare the bank of china -- >> shepard: he said he's impressed with china and how they're handling things. he respects them. >> i know. this is what he should do. if he does that, he demonstrates to the north koreans and the chinese that he has the political will to do what is necessary. nobody thinks that he would do this. bank of china has been laundering money for the north koreans and we know that because in 2016 u.n. report, they cite the bank of china. >> shepard: it's there. >> chinese banks have gotten away scott-free. if we do this, shep, i think

what it says to the north koreans is oh, any gosh, the americans are actually willing to do things to protect the american people. >> shepard: if you do that, you do exactly what you just said and the missiles come firing over to guam, then what do you do? >> well, depends where they land. the other thing that we can do after that is we fire a missile over north korea to land in the sea. i don't think it's going to get to that. there's these nonkinetic things on the menu. >> shepard: nonkinetic things on the menu? >> yes. going after the money laundering and going after other sources of cash the north koreans get from countries other than china. we know they go from africa through asia. we don't do anything about it. for decades, we've allowed this money to flow in and we haven't done anything. the other thing we can do, we can prevent north korea from shipping missiles to iran. we've been watching this through the bush administration and the obama administration.

>> shepard: for years. >> and you know, this -- >> shepard: here's why that matters. they have one cash crop in north korea. one thing that makes them money. missiles. that's it. they sell them to people. >> $2 billion to $3 billion is what they earn from iran. most of it missiles and nuclear weapons technology. the iranians have been on site for all five detonations. >> shepard: you sure of that? >> the first three are in open source. the two have been talked about by the intelligence community privately. >> shepard: we can't confirm that. i don't doubt it. we can't confirm it. go on. >> we know the iranians have been working with the north koreans on the nuclear weapons program as well. these are things that we can cut off these sources of cash. we haven't been doing them. when historians look back at this period, they wonder why the u.s. allowed this commerce to continue. it's deadly, affects the interest of the united states and our friends and partner and we allowed it to continue. >> shepard: i hear a lot of

analysts who i respect on different platforms saying the rhetoric, we have to tamp it down. you get going after it, you never know what crazy guy will do. is that fair? >> we have to tamp down the rhetoric but we also have to step up the pressure. there's ways you can say things without inflammatory words. i wouldn't have used fire and fury. >> shepard: neither did anybody else. he didn't run it by anybody. those were his own words. >> but he's got to put the pressure. the sanctions are effective. obviously they're not coming to their senses. we have to do more. we have already little in the way of sanctions on china for their help for north korea. we need to make them pay a cost. when the cost is much higher, the chinese will realize that they have to come to us. president trump needs to say to the chinese, you can support north korea, you can do business with the united states, you can't do both. if they believe him, we're well

on the way to a solution. the chinese cannot afford to cross the united states in the run up to the communist 19th congress a few months from now. x jinping is in real trouble. >> shepard: breaking news next. the dna summer sale is here. get your ancestrydna kit. spit. mail it in. learn about you and the people and places that led to you. go explore your roots. take a walk through the past. meet new relatives and see how a place and its people are all a part of you. ancestrydna. save 30% through august 15th at ancestrydna.com. yeah, 'cause i got allstate. if you total your new bike, they replace it with a brand new one. that's cool. i got a new helmet. we know steve. switching to allstate is worth it.

i even accept i have a higher risk of stroke due to afib, i accept i take easier trails than i used to. a type of irregular heartbeat not caused by a heart valve problem. but no matter what path i take, i go for my best. so if there's something better than warfarin, i'll go for that too. eliquis. eliquis reduced the risk of stroke better than warfarin, plus had less major bleeding than warfarin. eliquis had both. don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking eliquis, you may bruise more easily... ...and it may take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. i'm still going for my best. and for eliquis. ask your doctor about eliquis.

but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

>> shepard: it's a day of breaking news. minutes ago, the president suggesting the senate majority leader mitch mcconnell should step down if he can't push through the republican agenda, the ones set out by the president. it all began after senator mcconnell said the president had excessive expectations about how congress works. aaron zitner is here, news editor for the "wall street journal." the president is clearly trying to push the blame to the senate majority leader for the failure on healthcare, but it's the

president who must know that president obama dozens of time went out across the country to sell obamacare. the president never left his own property. the president won't take blame for it is clear. >> good to be with you this afternoon, shep. that's right. you heard newt gingrich say as much earlier, this is a collective failure. the president can't say he's waiting pen in hand for the legislation. this is quite a remarkable development. we just had a spectacular failure of the effort to repeal and replace obamacare. if you were looking for signs that the president was going to take that failure and change the way he approached congress, change the way he worked with legislators, you're not seeing it in the last few days. >> shepard: from what you know of mitch mcconnell, how will he react to this? >> mitch mcconnell is about as

sober and strategic a legislator as ever served. on some of the big things like the glue that is holding this party together right now is the prospect of passing big tax bill. that's probably going to stay on track. you have senior people in the white house, gary cohn, steve mnuchin in touch with the legislature coming up with shared principles that they hope to turn into legislation. everybody in the parties wants something to happen there. that will probably move forward unaffected. but you're seeing more and more signs that republican senators are feeling free to push back against the president and disagree. congress just sent him a russian sanctions bill he didn't want. they defended jeff sessions. you have to ask, will they fight for the border wall? are there things the president wants. >> shepard: if the president wants the wall, congressional republicans do not want the wall. >> that's more or less yes. most of them don't want the wall. >> shepard: the majority of

them. we have a little extra time here. the wars that have been happening inside the white house, internal squabbles and differences of opinions in white houses are nothing new. they have been going on. for them to be so public and so open is very unusual. your editorial board has weighed in on this war with bannon and mcmaster. what -- help our viewers understand this. well, there's been sniping since the beginning of this administration. there's a faction that are the true trump loyalists like steve bannon, kind of david axelrod role in the obama administration. defending the image, defending the platform that got him into office and then more establishment republicans in the military that are also -- didn't original from trump's orbit. shep, what is striking me is that we're having two

conversations at the same time. the most serious we can have, north korea and nuclear weapons. i'm feeling agitated. i imagine many people are. americans in times of crisis want to feel like they can rally around their president, there's a sober leader that is focused. the more that the president focuses on squabbles within his party and with mitch mcconnell, the harder it might be for him to rally the country and show that he's a sober focused leader at a time of crisis. >> shepard: your editorial page reads, mr. trump issued a let of support for mr. mcmasters. rather than question the loyalties, rather mr. kelly should question mr. bannon's loyalties. the former breitbart publisher has been a survivor but his warring habits have been responsible for much of the white house dysfunction. it finishes, mr. trump may worry about the damage mr. bannon and his allies could do to the administration if he no longer is part of the white house team.

if his minions continue to vilify his colleagues, how can anybody tell the difference? what is the editorial board saying here plain and simple? >> they're saying cut it out. this is the same -- by the way, i'm a news side person. i don't speak for them. >> shepard: i know that. >> this is the same editorial board that has said that past actions by the white house are political malpractice. they don't get on the same page and really stick to the highest priorities. you saw mr. gorca criticizing mr. tillerson for comments he made about north korea. john kelly came in as chief of staff to kind of set things right. his early focus was on controlling the flow of information to the president and access to the president to make sure the president had good solid information and a set of clear options for which he could use to make decisions. looks like mr. kelly might want to reach beyond the door of the oval office to try tone courage people around the president to

tone it down. >> shepard: aaron zitner from the "wall street journal." thank you. >> good to be with you. >> shepard: at the bottom of the hour, president trump's high level meeting with his security team on north korea. and so much has come out of it already. more on the threats to guam ahead. plus, as tensions rise with the north, the stock market is taking a tumble. the markets do not like uncertainty. we're in a period of uncertainty. the dow headed for the third straight loss. the s&p down as well. coming up, a live report from the floor of the new york stock exchange, this is the fox news channel. america's choice for news and information on cable.

>> i'm lea gabrielle with the fox report. more on today's headlines. a woman's purse exploded on her lap during a city council

meeting. happened south of las vegas, boulder city. no word on what caused the battery in her cell phone to explode. she had minor burns and will be okay. video of fireworks going off in a wendy's. we're just releasing the video now. police are looking for the teenagers that did. apparently a prank. a 18 wheeler spilled frozen pizzas all over an interstate. the truck scraped a bridge support sending the pies flying. news continues with shep after this.

>> shepard: 14 minutes. that's how long they tell us it would take missiles to travel there north korea to guam. that's according to the homeland

security official on the island. at a distance of just about 2,100 miles or so, guam is closer to north korea than any other u.s. territory. it's also home to u.s. military bases and thousands and thousands of american troops. north korea today announced they have a detailed plan for a missile strike near guam, not on guam using four intermediate range rockets. last night the governor of guam appeared on fox news, talked about how the threat is affecting people there. >> obviously for our administration and for the people of guam, there is concern and worry. but there's no panic. we're concerned that it does not ramp up. most of our concern here in guam is that decisions are not made that would cause some sort of a conflict over here. >> shepard: he encouraged people on the island to go about their lives as normally as they can. after all, they have heard

rhetoric before. tens of thousands of people in north korea gathered in pyongyang square protesting the united nations latest round of sanctions. normally they don't just show up. they get a coaxing from the government. here's pictures there. people lined up in rows, marching through the streets. workers wearing matching button-down shirts and red ties. you can see the bands are playing. all very that. fist raise in solidarity with kim jong-un. this next image, they're holding signs here. this particular sign roads a propaganda poster, the nuclear sort of justice. this sign on the left-hand side, this one over here that looks like maybe a pepsi ad in another language. but it isn't. it says "strike the united states with nuclear thunderbolt."

very frightening. of course, the freedom of speech is prohibited in that rogue nation. you don't have that there. no workers probably had very little to say whether they attended this thing. they're all there together. greg palkot is with us. he's traveled to north korea multiple times and is in the london newsroom tonight. strangely it's not night yet. high, greg. >> hi, shep. that's right. orchestrated is a key word when you look at demonstrations that you're talking about and seeing in pyongyang. we have spent the day talking to contacts regarding the north korean threat. the consensus that we're getting from these people are that the worst probably won't happen. but the dangers remain very real. the missiles that north korea claims it will be sending towards guam, we had a chance to see first hand at a military parade in pyongyang in april. it all looks bristling. one of the hitches is that since then, they've had one successful

test firing out of four. so there's questions about accuracy and dependability. there's no question though that guam for north korea remains a natural prime target. b-1 bombers continue to fly out over there to continue to conduct overflights of north korea and drives kim jong-un crazy. amid all of these orchestrated protests that you're just showing and pyongyang, the state media again has been branding president trump a guy "bereft of reason" and also "a load of nonsense." we'll probably hear more. regional neighbors taking all of this very seriously. japan said if the threat happens, it would be a national emergency. south korea saying its response will be stern and strong. yes, officials in guam are hoping that the u.s. land and sea base defenses around their

territory will keep them safe. experts tell me that they in fact would be overwhelmed if that barrage of threatened missiles were to hit. if i could sum up the opinions i've heard all day and they have been diverse, there's one consensus everybody has told me, the biggest rick, bigger than nukes, bigger than missiles from this whole thing is the risk of miscalculation on both sides. that could lead to real trouble. back to you. >> shepard: greg palkot in london. the stock market in the u.s. has been on a roll for months and months smashing records left and right. new high every day. now it's down for the third straight day. uncertainty after president trump threatened north korea with fire and fury. a live look at the dow. 21, 876. we're talking about things going down. well -- nicole has the news live on the floor of the stock

exchange. if you're looking for a flight to safety a reason to take money out, why not fire and fury? >> that's right. you really put great perspective on it, shep. we've seen three days of selling. to your point, this basically, trump's election, last year, the stock market has been up 20% and making one new high after the other. we hit 22,000 recently. the move of three days of selling, that we don't see too often. in fact right now, we're down 180 points and we're right at the session low. this is after two days of selling. the threats and concerns and tensions with north korea have been weighing on stocks. so much so that people have taken the risk off of the table for now. you're not seeing technology, you're not seeing financials doing well. you can see right there, president trump's comments, the fire and fury, like the world has never seen, that's where you see the selling off beginning. that continues. there's one group that has done well this weekend, it won't come

to any surprise to you, defense socks. these are missile defense systems to combat incoming missiles. we're seeing lockheed-martin, northrop grumman hitting new highs. as i said, they're taking risks off the table and taking profits and they're moving to areas that are a little safer. we know them well, including gold. gold has moved to a two-month high. the ten-year treasury bond, the yield is at a six-week low. right now it's a 2.21%. so those are the safer bets for the moment. big picture, people still positive long-term. three days of selling right here. it's a low right now. >> things, nicole. thank you. have you heard about what is happening in cuba? american diplomats there mysteriously lost their hearing. now there's word that this could be a deliberate attack to make them go deaf. how the united states is

responding. fascinating. just ahead. hey!

this is lloyd. to prove to you that the better choice for him is aleve. he's agreed to give it up. ok, but i have 30 acres to cover by sundown. we'll be with him all day as he goes back to taking tylenol. yeah, i was ok, but after lunch my knee started hurting again so... more pills. yep... another pill stop. can i get my aleve back yet? for my pain... i want my aleve. get all day minor arthritis pain relief with an easy open cap.

>> announcer: no one loves a road trip like your furry sidekick! so when your "side glass" gets damaged... [dog barks] trust safelite autoglass to fix it fast. it's easy! just bring it to us, or let us come to you, and we'll get you back on the road! >> woman: thank you so much. >> safelite tech: my pleasure. >> announcer: 'cause we care about you... and your co-pilot. [dog barks] ♪safelite repair, safelite replace.♪ no, please, please, oh! ♪ (shrieks in terror) (heavy breathing and snorting) no, no. the running of the bulldogs? surprising. what's not surprising? how much money aleia saved by switching to geico.

fifteen minutes could save you fifteen percent or more. >> shepard: very strange happenings in cuba. u.s. investigators are blaming some sort of covert device after american diplomats stationed in cuba suffered severe hearing loss. in other words, something happened and they couldn't hear anymore. that's according to the reporting of the associated press. yesterday the state department announced they removed two cuban diplomats from washington after u.s. officials in havana came down with "a variety of physical symptoms." a state department spokeswoman, heather nauert, refused to give any details. today heather nauert said investigators have been speaking with cuban officials. >> they're responsible for the safety and security of our diplomats. while our diplomats are serving in that country.

our americans were not safe, they were not secure obviously because something has happened to them. we take that very seriously. the safety and security of americans at home and abroad is our top issue and we'll continue to investigate that. >> shepard: officials in havana says the state department's decision to kick two diplomats out of washington because we can't hear anymore in havana is unsubstantiated. phil keating with more. now officials in canada say same thing happened to them. what is this deaf stuff all of a sudden? >> yeah, the allegation is ultra sonic sound blasts into their bodies and into their heads causing these effects of hearing loss. canada, the government there, confirming in the past hour that one of its diplomats stationed in havana at its embassy has been treated for hearing loss. the u.s. state department says there's been a series of bizarre incidents all dating back to late last year to multiple american diplomats stationed in

havana at the embassy. their symptoms, physical ailments and symptoms like a concussion. u.s. investigators say the cubans or possibly a third country, not ruled out yet, have been subjecting the diplomats with a covert sonic device operated outside the range of round inside their home or outside. here's the state department again 40 minutes ago. >> we consider them to be incidents. we're still trying to determine the actual cause of their situation. they have had a variety of physical symptoms. that's as far as i can go in describing that. we don't have the definitive answers yet, this is an active investigation. >> reuters is reporting that several u.s. diplomats that have since returned home for medical treatment will have to wear hearing aids the rest of their

lives. shep? >> shepard: are cuban officials pointing at anybody for this? >> they're playing the role of we don't know what this is. they say they have been investigating it for months. they're even reaching out to the united states for more cooperation to get to the bottom of this. cuban state tv last night, the news anchor read the statement and it says "the ministry categorically emphasizes that cuban has or nor would it ever allow the cuban territory be used for any action against a credited diplomatic agents or their families without exception". they reiterate their willingness to cooperate in the clarification of this situation. back to the possible third party maybe being involved a third country. keep in mind that north korea, iran and russia all have very large diplomatic ministries in havana, shep. >> shepard: thanks, phil. a russian spy plane buzzed the capitol, the united states capitol. how this got our government's

okay coming up. when my doctor told me i have age-related macular degeneration, amd, he told me to look at this grid every day. and we came up with a plan to help reduce my risk of progression, including preservision areds 2. my doctor said preservision areds 2 has the exact nutrient formula the national eye institute recommends to help reduce the risk of progression of moderate to advanced amd after 15 years of clinical studies. preservision areds 2. because my eyes are everything. atmore than one flavor, oruch texture, or color.ing. a good clean salad is so much more than green. and with panera catering, more for your event.

panera. food as it should be.

>> shepard: the russians are buzzing us. an unarmed rush spy plane made a low flight over parts of district of columbia and new jersey where the president is vacationing at his golf club. u.s. defense officials say it was perfectly legal. here's the video flying over the capitol building. it's similar to a mid size passenger jet. the maneuver is allowed under international agreement. i want to show you a map of the flight path around the district. here it is. just a zigzag thing. the plane never flew directly over the capitol building itself. trace gallagher with the rest of the details.

the russians can fly over trump's golf course but nobody else can? >> that's because from august 4-21, that part of new jersey has a t.f.r. in place, which is a temporary flight restriction. there's a strict no fly zone around the bedminster golf club and lesser restrictions for a 30-mile radius. on the treaty on open skies signed by 34 separate countries, as long as russia notifies the federal government in advance and has u.s. military officials on board their plane as escorts, which they did, they can fly wherever they want. the temporary flight restrictions around the trump golf course have infuriated some local airports by the way because it's costing them a bunch of money. so six members of congress from new jersey and pennsylvania have sent the secret service a letter asking them to loosen the restrictions because the president spends a lots of time after his golf club in bedminster. shep? >> shepard: what is this talk of

the russians possibly violating the treaty? >> member nations are obligated to make all of their territory open for observation, which is way they were allowed to fly near the golf club. but russia has banned foreign countries for flying over moscow or chechnya. there's worry when moscow will fly over the u.s., they could be used digital cameras and high tech sensors that have not been certified under this treaty. all of the information gathered during these flights is supposed to be shared between the countries that transparency is hard to police and the treaty with russia, we have each flown over their countries a combined 165 times, shep. >> shepard: thanks, trace. we'll be back with a look at early mass transit got a boost on this day in history.

before fibromyalgia, i was a doer. i was active. then the chronic, widespread pain drained my energy. my doctor said moving more helps ease fibromyalgia pain. she also prescribed lyrica. fibromyalgia is thought to be the result of overactive nerves. lyrica is believed to calm these nerves. woman: for some, lyrica can significantly relieve fibromyalgia pain and improve function, so i feel better. lyrica may cause serious allergic reactions or suicidal thoughts or actions.

tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, muscle pain with fever, tired feeling, or blurry vision. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. with less pain, i can be more active. ask your doctor about lyrica.

i can be more active. it's ok that everybody ignoit's fine.n i drive. because i get a safe driving bonus check every six months i'm accident free. because i don't use my cellphone when i'm driving. even though my family does, and leaves me all alone. here's something else... i don't share it with mom. i don't. right, mom? i have a brand new putter you don't even know about! it's awesome. safe driving bonus checks, only from allstate. sometimes i leave the seat up on purpose. switching to allstate is worth it.

>> shepard: on a this day in 1885, america's first commercially operated electric street car began running in baltimore. before that, horses used to pull street cars along the fraction. an inventor installed a new three-rail system which provided electric power, the third rail. by 1905, the street car made billions of trips across the country. subways and standards were the standard. and now an effort is underway to bring back the technology that debuted 132 years ago today. careful what you ask for, brooklyn and queens. careful what you ask for. the market is down. down almost a percentage point now. sometimes late in the day, things rally.

they put a little money back, take some profit at the end of the day is normal. sometimes we get a rally. uncertainty. the markets don't like it. don't now and not ever have. "your world" with neil cavuto is next. see you later. >> the people that were questioning that statement, was it too tough? maybe it wasn't tough enough. they've been doing this to our country for a long time, for many years. it's about time that somebody stuck up for the people of this country and other countries. if anything, maybe that statement wasn't tough enough. >> the president standing by his fire and fury remark now saying maybe it didn't go far enough. as tensions continue to heat up with north korea, stocks getting clobbered. the nasdaq with the biggest day down, i'm liz claman in for neil cavuto. this is "your world