>> it is noon on the west coast. a man credited with helping president trump to win the white house will no longer be welcome. there steve bannon is out of a job. ahead, complete coverage of how it unfolded. and who will take over in his role and what might change about the trump presidency? will this help heal the rift. tennessee's representative bob corker questioning whether donald trump is stable.

we'll look at the fight between the president and his own party. steve bannon is only the latest inside tore leave the administration. who is resigned and who has the president forced to leave. it is a big day. let's get to it>> shepard: bannon got the boot or resigned and one of those, he's out. steve bannon no longer in the white house. steve bannon has been a lightning rod inside of the administration. he is a former breitbart leader and striebed the conservative side the platform for the alt- right. and n there is no shortage of bannon taking on close advisors including the president's son-in-law jared curb mer. but the rummar mill started when

general kelly was made chief of staff. bannon expressed concerns to the president. and others believed that steve bannon was leaking stories about mcmasters whom general kelly gave more power. this week on tuesday in a stunning new's conference. president trump said this. >> i like mr. bannon. he is a friend of mine. but mr. bannon came on very late. i went through 17 senators and governor and one all of the primaries. i like him and a good man and not a racist and he is a good person and gets unfair press in that regard. but we'll see what happens with mr. bannon. >> shepard: good man and we'll see, not a racist. the dismissal is fraught with danger with the white house.

steve bannon won candidate trump in the russ belt and contributed to a book crediting himself for the president's success and that angerred mr. trump. and the president was furious to the interview steve bannon gave to the american prospect. in that interview, bannon controdicted the president's fire and fury and saying there is no military solution here, they got us. in that same interview steve bannon talked about the white supremist and his own role in flaming the far right. bannon said his losers and a collection of clown. bannon said he thought the interview was a good thing because it drew fire away from president trump and the charlottesville's comments.

he not only failed to stop the fire from the president but rained it down on himself. breitbart said he resigned 11 days ago. there is a piece, bannon backed by billionaire prepares to go to war against mcmaster and jared kutcher and his daughter ivanka. he's out. but not silenced. the chief white house. what are we hearing inside of the administration. >> this was not done today. this has been going on for sometime now. it goes back to the sixth of august. and over the last few days, i

amed to by a source inside of the administration that the interview or it is tyra d e did not help. you can't go out and contradict the president and say you know all things without the president deciding you need to be dressed down or out of the door. clearly it is another example of the power that john kelly, the new chief of staff has got. he has reviewed all positions inside of the white house and took a look at bannon and clearly thought it was not a member of the team and that he wanted on the team going forward. and that's why we saw the statement. white house chief of staff johnicle and he will and steve bannon mutually agreed today would be steve's last day.

interesting it was the president who said he would be gchlth it was steve bannon and john kelly mutually agreed today is the last day. and what president trump would miss. steve bannon was a connection to the base & kelly ann conway is in good standing with the president. and she has a good connection with the base. those 19 conservative groups when wind of steve bannon's departure swirled around said steve bannon and kelly ann conway faithfully represented the position in the white house. >> shepard: this is a new

development but it was happening for months. >> he was simpattico with the president and he was ininstrumental in getting the president-elected and bias you power and in the white house he was in tannedum with reince priebus and at some point they would depart the white house. a lot of people thought he would have departed before now. and on two walls was white boards with all of the things he wanted to accomplish. and a lot of things were checked off and some not. and some grumbling that bannon's aggressive agenda was not getting through. reports of steve bannon on the outside and closest people in

donald trump's sushgle. how much is it that you know. >> his distaste with the establishment republican and how he wants to fight against them and through breitbart or team up with robert mercer and launch war with the white house and congress would not be too much of a stretch. it is early going and we don't know what bannon will decide to do. >> shepard: nice to see you back, john. a republican senator questioning whether president trump has what it takes to lead our nation. the president blamed both sides for the violence in the white supremist neo-nazis kkk rally in charlottesville. during that protest the car plowed in a counter demonstrators and killed a woman.

tennessee's bob corker said he faces peril if he doesn't change his way. >> the president hasn't been able to demonstrate the ability, or the confidence that he needs to demonstrate in order to be successful. senator bob corker of tennessee. and senator tim scott had this to say about president trump's behavior. >> what we have seen the moral authority compromised by the lack of clarity. and by what we have seen the pivot back wards which is unsettling for many americans to include me. >> shepard: that from vice news. president trump blasted republican law makers and target the lindsay graham accusing him of spreading lies and the president tweeted of jeff flake

of arizona calling him toxic and another presidential group is calling it quits over the president's comments. they called on the president to resign if he does not see a problem with his comments. john? >> reporter: it is a week that could have been avoided if the president would have given thoughts. he could rightly i think assess that it was one of the worst weeks ever for the president. splitting the republican party and openly defying him. and now as you saw by listening to corker and are james scott, there are members of the party which are in open revolt against the president and newt gipping rich leaving the president more

isolated than he was before. >> he's more isolated than he realized and he has on the hill far more people to sit on one side and not help him right now. he's taken a good first step with bringing in general kelly. but he needs to think about what is not worked you don't get down to the 35 percent range of approval and have people in your own party. >> he was supposed to came down and make a statement and instead he called an audible and fumbled the ball badly when he answered the question about charlottesville. >> shepard: the mother of heather heyer and the woman who died in the violence said she will not speak to president

trump because of his comments after her daughter's death. >> i am not talking to the president now, i am sorry about what he said about my child. i saw a clip of him equating the protestors like miss heyer with the kkk and white supremist. you can't wash this away by shaking my hand and saying i am sorry. >> is there something you want to say to the president. >> think before you speak. >> president trump paid tribute to her daughter calling her a special young woman who will be long remembered by all. that is tough stuff. >> reporter: that's the reason why people in the white house didn't think it was a good idea

for the president to veer off script. he was supposed to make a statement to turn it over to chow and mu mitchin. and he took questions on charlottesville, and his aides knew it would be about charlottesville and not end well. the president blamed both sides and but he knew a moral equivalence between the protestor and white supremist. he called it fake news. there was a lot of members of the president's own party who are up in arms. and this created a split in the republican party that will be difficult to repair when the members of congress come back to washington. >> shepard: it is hard to imagine that he will get any

legislative accomplishments after the summer break. >> reporter: that said though, when corker and scott are asked are you going to vote yes or no on tax reform, the president will probably get the results he wants. >> shepard: steve bannon's exit could shake-up white house. it could be big changes from the tax plan to national security. and president trump is taking a real chance with this move. we'll explain coming up on friday afternoon. surprise! (vo) living with ammonia odor? not a pretty picture. (vo) luckily, tidy cats lightweight with new ammonia blocker tackles tough odor, even ammonia. so long stankface! (vo) ammonia like that? there's a tidy cats for that. but prevagen helps your brain with an ingredient

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a place for mom. you know your family. we know senior living. together we'll make the right choice. >> shepard: steve bannon out at the white house. josh is here, senior reporter at politico. pretty beg move fraught with peril. >> it could impact policy areas and steve bannon held the line for the trump campaign policies for the populs areas in taxes and probably in the area of military as well. bannon was skeptic about the long wars that the u.s. was engaged in, in afghanistan and causing trump to hold the line on immigration. but don't think bannon is out of

the picture because he is out of the white house. he might be influencing more to the administration on the outside than inside. >> shepard: preparation for war against the president's family among others? >> we are seeing members of the right angry about the things going on. mike flynn's son lashed out against the move to fire bannon and taking shots at hr mcmaster. and we'll see all of that intensify if bannon joins those efforts. >> mercer. a billionaire donor? >> a prominent donor on the right who has supported breitbart and media outlets that are supportive of the president

at the end of his campaign and could offer breitbart unlimited funds to mount efforts he makes to pursue and try to keep trump to the themes he struck in the campaign and avoid him from falling in the globalist camp. >> shepard: and a war, jared kutcher and ivanka trump. how will that go over? >> the president hasn't defended them publicly to at this time degree he might have. there is a constant sniping back and forth between jared and ivanka camp and the bannon camp in the press. how much is coming from bannon or his ally and having that coming out in front of the curtain could be unpleasant. people on bannon's sign now the president has a democratic might

white implying that jared or ivanka don't have the republican's party at heart. >> shepard: there are many stories how it went down. breitbart said bannon put his resignation on the sixth and others say it was mutual and then others said he was tis missed. >> the writing was on the wall. when was the president left to deal with a problem he needed to deal with a long time. it was decided effectively from the point john kelly was brought on as chief of staff. there was no sense of them working together. and then introduce this week where bannon seemed to be way off the reservation in terms of public comments. that seemed to put the nail on

this. >> shepard: thank you, josh. more republican law makers coming out against the president's comments. remember no one on the side of the neo-nazis is good.

>> shepard: president trump's battle with his own party and steve bannon out of the a job. we'll turn to peter nicholas. with the wall street junioram. good afternoon. the tennessee senator bob corker said donald trump has not demonstrated to lead. and scott said the moral authority is compromised and what some may be a stunning editorial board, obviously you

are a reporter there and you don't have contact. but this is what the editorial board wrote this morning. the men and women who joined the trump's administration, they have no illusions on the character flaws. they are trying to serve their country. every person has to decide how long they serve in good conscience. we hope they stay for the good of the country. washington journal editorial board asking the team to stay on for the good of the country. not a good sign. >> after the president's remarks in charlottesville. it is a member of conscious. gary cohenwas at the president's

side and was upset by them. will he stay on or leave. and looks like what we hear from white house sources, he was disturbed but will stay. and i think every official in the white house will ask themselves do i stay or go and do i want to be in align with the administration or distance for sake of reputation. >> shepard: which are we expecting? >> so far the center is it holding. john kelly seems to be in conversation with people about what he said. and so it seems like we haven't seen mass defections yet. but we have seen in congress. mainstream republicans on good terms with the president bob

corker from tennessee questioning president trump's competence and stability and we have to take note of that. corker is not a bomb threer. he's flown on the president's plane and considered secretary of state and if he is and asking those questions. that is happening in the white house and elsewhere in congress. >> shepard: you described the statements as a tipping point? >> yes, i do think that we saw in tim scott, the senator from scouting carolina and bob corker that what the president said in his equating counter protestors with white national demonstrators that that is not okay and crossed a line of convention and discourse in american politics.

and the question is, so it looks like a tipping point where more people reach the conclusion and announce they will not be aligned with president trump and that could create problems. he needs to pass a tax reform plan and raise the debt ceiling. and open question. anything can happen. and the president is attacking back as he said it against the detractors like mccain. bob corker is a loyal supporter. do we have any idea how the president is reacting to the comments. we haven't seen reaction on twitter yet. but we have to watch it closely

and you just wonder, politics is a gachl addition and not subtraction. you are supposed to take your base and expand and not just have people flake off and dismiss people. and tell people you are not welcome. to distance himself with bob corker and it seems serious. you wonder where the support is. who is left and who are the true blue trump allies. he took a swipe at mitch mcconnell. >> is there any defending the president's comments? >> i am not aware of that off the top of my head. mark meadows is supportive of the president and concerned about the firing of steve bannon. but i am not sure we heard

people rallying to the president's defense about the remarks in charlottesville. >> shepard: thank you. >> thank you, shep. >> shepard: steve bannon not the first major shake-up and a look at the revolving door of the west wing as we approach the bottom of the hour and top of the news. cleared 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. 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

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>> shepard: headlines, severe floods killing 400 people in asia in bangladesh and india and nepal. emergency workers said millions of people are at risk of disease and hunger and one of the worst humanitarian disasters to hit that area in a decade. and a car slammed in to a car at 100 miles per hour. a deputy chased a suspect

despite the sheriff officer saying not to do so. nasa launching a new satellite in orbit. scientist said the satellite will help the earth access data from the international space station and hubbell telecope.

it's just a burst pipe, i could fix it. (laugh) no. with claim rateguard your rates won't go up just because of a claim. i totally could've - no! switching to allstate is worth it. >> shepard: happy last day of infrastructure week. in the middle of the white house shake-up and chief strategist out president trump is holding a major meeting with the national security team and not in his home in south florida but camp david in maryland. it would be on national security and border and military. president trump and his advisors expected to talk about strategy from winning the war in afghanistan. and earlier today, before the bannon announcement, homeland

security and law enforcement are on alert and watching for signs of trouble. our boards are tougher than before. kevin? >> reporter: shepard, there is a cynical saying here in washington and it is unfortunate it happens on both sides. you never let a tragedy get in the way of the agenda. pictures are tough to come biechlt this is a president making a phone call to the president of spain. and offering any assistance that the u.s. may offer the spaniards and then pivoted to the politico and the president writing. radical islamic terrorism must

be stop. and the court must give back our protective right and have to be tough. and this is when the democrats call obstructionist and making it difficult to secure the home land. they make it difficult for him to get the agenda over the finish line, shepard. >> shepard: do we expect to get word on a new strategy. >> reporter: it seems that will be coming in the days ahead. you saw the president tip his hand in talking about it. that is the with reason why the meeting is here. i can tell you this is a circumstance, shepard that has seen the president ask when is enough, enough? 17 years and trillions of dollars and thousands of american live and casulty and so

the question is, how to flesh out the strategy to a new pathway forward in afghanistan? here's what the president said about it a couple of days ago? >> wheelmake a determination, peter as to afghanistan. it is our longest war in history. 17 years, that is unacceptable and we'll make decisions and look at that closely. mattis said he expect its in the near future. i am keep you posted. for now, back to you. >> shepard: kevin, thank you. steve bannon went out of his way to criticize his colleagues in the state department. >> reporter: the state department approach to asia,

china and north korea. bannon said there is no military solution here. saying they got us. secretary tillerson offered no comments and then said we have been clear the policy and posture toward north korea is it. james mattis followed with a promise of strong military consequences if north korea attacked and bannon said the u.s. was at an economic war with china and the state department reacted to that. >> a lot of us have worked here with susan and she's part of the tip of the sphere dealing with them and make its look effortless and i can't imagine it is. but she handles her well. >> bannon singled out and had

susan thornton. and tillerson went right over to thornon and shook her hand earlier this month. andment secretary of state called her work stellar even before steve bannon's remarks, he went out of the way to compliment her work in the state department. >> shepard: steve bannon is the latest in the string of departure. 11 high level staffers left their post, trace? >> reporter: we'll leave out the 46 attorneys that president trump fired because they came on in obama's administration. and stick to those beginning with michael flynn who latested 24 days and flynn was fired because he lied to vice-president pence about his contact with a russian ambassador. katie walsh was forced out after

the version of the obamacare repeal. her departure was a signal that the trump administration was detaching for the traditional gop. and firing of fbi director james comey sent washington in a frenzy. comey was fired for mishandling the e-mail investigation and reince presbyterian was replaced by john kelly. communication's department is its own thing. this white house is on its fifth communication director. jason miller who turned down the job. mike dutke accepted it and they had an inability to put a positive spin and he resigned in may. sean spicer known for his

colorful press briefings was communication's director twice and along with being press secretary. he resigned after the president hired anthony scaramucci and the mooch lasted ten dags. hope hicks is now the interim communication director until a permanent replacement is found. but permanent may not be the best word. >> shepard: a look at up and down day on wall street, next. real cheese people know life is better with 100% real natural cheese. doesn't matter if it's served on a kitchen table or a picnic table. under a roof or a starry night. every table tells a story, we're happy to have a seat at yours. sargento. we're real cheese people.

>> shepard: markets turned around this afternoon. a live look at the dow. see this green part here in wall street found out steve bannon was let g. the place erupted in cheers. and then the news of the day. i saw on another network theroar

in there. >> go easy on that one. >> shepard: it is what it is. >> i will give you two points. and that is bringing more stability to the white house and we are back on the agenda. and the cheers a tradition when people leave earliol friday they cheer on leaving happened in the same exact time. >> shepard: that is awesome. and there he goes 20 years. happens every pardon and just so coinicided with the news on bannon. but to your point say that the market did turn on the news, it brings stability to the market and we were down and up. it was 60 times up and down. and yesterday, we had so many wors. it was worries about a lot of things.

not only what was going on washington and charlottesville. and we had barcelona attack. and we sold off and yesterday. you can see caterpillar and chevron and exconand visa are higher. dow and s&p 500 down two weeks in a rouchlt we'll see what happens in the end of the day. and the markets this week. you can see the back and forth action and the big picture is that they are trending higher than they were last november. we were up to 22000. they were looking for a reason to take a breath. but big picture. trying to stay focused on the earnings and low interest rates and free money and trump agenda on the positive business and less so on everything yels. >> shepard: what are they thinking going forward.

>> they want stability and now with bannon out that makes gary kohn stay. and he brings stability to the white house and the business agenda, and tax reform and infrastructure and stimulus. that's what everyone wants to focus on for american and jobs they tonight want to focus on everything else in the agenda. we had back and forth 60 times according to our senior editor. the trend is still on the up side and hopefully the agenda and pro goth policy of the united states of america will number place in the future. >> shepard: nicole. have a fantastic weekend. investigators in spain said the terrorist who ran down innocent people in barcelona is either dead or still on the loose. that's what they said.

and what we uncovered about the attack itself and second show down in police and ended with bullets and blood. and we are tracking a new attack in northern europe. cops shot a man on a stabbing spree and slicing up a half dozen people. that's coming up.

barcelona weep, but is it not surrender. those words in the center of las ramblas. where one american and 12 others died in the terrorist attacks there yesterday. at this hour, police say the suspected terrorist, the driver of the white van is either among the dead or is on the loose

somewhere after he plowed throughout pedestrians on the historic promenade and leaving dozens of victims in the wake. in cam bis five men drove through a crowd of people and killed a woman and injured others. police shot and killed five attackers. benjamin is live in barcelona. there is amateur video with showing the cops in a stand off. >> reporter: we are for las ramblas where 13 people were killed in the white van. the attack kept going and the other attack took place in cam

bis but look at this. but watch this. [gunfire] [bleep] get down, get down. [bleep]ment -- [bleep] >> reporter: incredible footage and amateur footage from all of the scenes of the terrorist attacks. and the police saying it is part of a much larger network and they are worried about people being out there.

>> shepard: what do we know about the network. >> reporter: they are looking for the driver of the white van that went down las ramblas. and they think he might have been killed. the reason they think it is part of a larger network. on wednesday there was a big explosion an hour and half north of here and they believe that was the hub that the terrorist were using. that blue up because of one of the worries by the terrorist. they believe this attack could have been a lot worse if not for the quick response by the police and errors made by the terrorist, shep. >> shepard: police in finland are looking for more suspects after a man stabbed two and killed two and injuries others. police shot the suspect in the leg and took him in custody and

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there is two tops one on top above ofrmth they rise in florence thanks to competition that began 599 days. breaking news changes everything. it is cavuto time. >> steve bannon is out and stocks on the move and dow rebounding from steep losses on when bannon would be leaving and soon after the white might making it official. what is the fallout for the market. i am trish regan in for neil casitto. we'll talk to the congresswoman in a moment but john roberts has the latest. >> reporter: we are learning that this did not happen by happenstance. but it was discussed since john kelly came on board. but it was in recent days that things