>> aaron watson and his band are playing in lancaster. you can catch it if you are there. thank you for being here. >> thank you for having me. neil: fox on top of a lot of storms bearing down all at once it seems welcome everybody happy weekend i'm neil cavuto. you are looking live right now quincy massachusetts emergency crews are out in full force after a monster storm that turns roads and rivers forcing a lot of people from their homes up and down the east coast, this story was playing out again and again in town after town. more than a million people are still without power, airports scrambling to get things back to normal after thousands of flights were delayed. and cancelled outright. officials saying the threat is not over yet. we are on it. we are also looking live at our nation's capital where the heat is turning up on the

investigators. the top republican on the house intelligence committee warning that the justice department, the fbi, may have broken the law with those fisa applications. how? we'll ask chairman devin nunes he's here. also looking live outside palm beach florida where the president the expected to return. his latest move sparking fears from wall street to main street, we're about to enter a nasty trade war. that's where we kick things off. since it seemed to affect some traders and some stocks. let's get the latest from tracy. tracy? >> good morning, neil. that's right, a real tariff war could be erupting right now. let's take a look. wall street reacting quickly to the president's sudden and somewhat vague announcement on thursday afternoon ig viting a -- igniting a sell off in a market already on edge on rising u.s. interest rates and bond

yields. the idea of what essentially would be a 25% tax on imported steel and 10% on aluminium sent stocks tumbling. investors spooked by the prospect of a global trade war. stocks tried to recover on friday as wall street and the world await more details from the white house next week. but for this week, the dow, s&p 500, and nasdaq all ending in the red. stocks in europe and asia also finishing the week in negative territory following the announcement as countries around the world began reacting and warning they will retaliate if tariffs hit companies in their homeland. however, president trump defending his decision with a number of tweets, saying, quote, we must protect our country and our workers. our steel industry is in bad shape. if you don't have steel, you don't have a country. he also said, quote, trade wars are good. and easy to win. secretary of commerce down played the impact tariffs could

have on consumers on fbn. here's what he said. >> i bought a can of campbell's soup today at the 7-eleven. it was $1.99 for the can. there's about 3 cents worth of steel in this can. if it goes up 25%, that's a tiny fraction of one penny. that's not a noticeable thing. >> sure, it may not be a huge difference for a tin can, but what about a larger purchase like a washing machine, a new car, ford, general motors and toyota responding to the tariffs with toyota saying car prices would go up, quote, the administration's decision to impose substantial steel and aluminium tariffs will adversely impact automakers, the automotive seller community and consumers. again the white house says it is ironing out the details and should learn more next week. the president says he hopes to

sign something very soon. neil? neil: thank you very much. i don't know if it's more remarkable in the commerce secretary's explanation of this the fact the impact of this would be so minimal or the fact that a billionaire pops into a 7-eleven to pick up a can of soup. let's get a read on this with my guests. where is this all going? >> if these tariffs aren't stopped, it is going to do serious damage to the american economy, u.s. consumers, and businesses that actually use steel and aluminium to produce goods that we all use. i think that these tariffs punish the many, and i mean americans. i mean, regular old folks like my mom and dad to help the few. and i think that when you have a billionaire cabinet secretary holding up a can of campbell's that this is a diversion. it is a ruse to distract from the real damage that this could

do to americans. and i mean, i mean consumer prices going up because quarter of a car is cost is tied to the price of steel. number one, a few thousand dollars extra on a car is a hit to many americans. it's a hit to those very automakers, but this also is about jobs. >> you can't stop in at 7 eleven to get a car. >> no, by the way, it is like lecturing me yesterday on the air about -- >> i saw that. >> do you know how much a six pack of beer is going to go up? you know what? you know, it's more about than a cost of a six pack of beer. it is about the retaliation by countries who are our greatest allies. we have already heard from europe about 3 1/2 billion dollars worth of penalties on harley-davidson, bourbon makers. this will destroy jobs. history shows it will do a lot more damage than it helps. >> so you like it? [laughter]

neil: david, what do you think of this? david: couple of things, first of all, we just made fun i think rightly so of nancy pelosi calling a thousand dollars in tax breaks crumbs. remember that? that was just a couple of weeks ago, how soon we forget. and now suddenly you add up all -- it is not just the tin cans. it is the couple hundred dollars extra you are paying for a car and everything else that we use steel and aluminium in and you get well over to a thousand dollars. that's not crumbs to most americans. dagen is right. it also a question whether wilbur ross bought that can of soup. i don't doubt that he did. i do know a little bit about his history. he made a lot of money buying distressed steel companies. i'm wondering if a man who made all this money buying distressed steel companies through a conglomerate that he was on the board of is the right person to be lobbying for -- neil: you made a great point. we're told this was not universally shared at the white house, for example, some were

not keen on this urging the president against doing this. there's some division within even the white house on this. nevertheless it is what it is. sometimes the president does this, bill, to send a message so you never have to enact the tariffs and all this other stuff and countries, you know, sort of bend. do you see that happening? >> i don't know, neil. you know, i often don't like what he says, but generally like what he does. in this case, i don't like either one. and, you know, there's so many places to go with this that i'm concerned. he tends to say these things and then he is a bit of a protectionist and may tend to follow through. but i agree with dagen, i think this is not a good thing for anyone. and the disappointment to those of us in the business community, is we were making so much progress deregulating the economy and then we throw this right back on top. where does it stop? do you go to cars next? textiles? where does this stop? i think ultimately it leaves confusion and sort of disappointment in the business

community, and that's not a good thing. i think that's what the market reacted to when it sold off. neil: i understand where the president is coming from on this, there is frustration you can't find many american cars in places like japan and china. they make it tough for american companies to make in-roads in its respective markets but yet the world goes nuts if we recognize and state that and try to do something about it. was this the way to go about it? what do you think? >> i think i'm going to be the lone voice in the wilderness here, neil. but i didn't know exactly how to react to this, but there are a couple things, one is this president has been saying this was a problem these unequal trade agreements we have with the rest of the world for a long long time. and so we should have known when we elected him that this was probably forthcoming. secondly, we have the master negotiator in the oval office. let's not forget that this guy knows what he's doing in terms of creating leverage which is exactly what i believe he's doing in some of this. and then i think lastly, you

know, if we were in a war today, and we looked back, neil, and we could have made some of these decisions to have more control over our steel and our aluminium, it's needed in a war. i don't think we regret paying 1 cent on a soda can or even 20 grand on a 727 airplane. i think that some of those costs in wartime, if we could look backward, would have been worth to it. neil: i don't know, i'm not going to buy a 727 now. i'm not going to do it. i need to make a statement. david: he was this close but he's not going to do it. neil: i was so so close. [laughter] neil: i want to get your sense on the thing. i appreciate where you are coming from, the notion it's minimally impact, the message it sends is maximal. it will send a message and let countries know don't even toy with us and they are going to do something. dagen: they are going to retaliate against american companies. >> you don't buy the trump

argument -- dagen: no i don't. you've already seen evidence -- look back in history. david and i were talking about the show started bush imposed in 02 steel tariffs. according to economic analysis, it destroyed more jobs than the total number of people employed be i the steel industry -- employed by the steel industry at that time. neil: he was getting heat from both sides though, the left and the right was whining about it. >> president trump should be getting heat from everybody in the country who understands simple economics quite frankly. it destroyed jobs back in 02 when there were only about 188,000 people employed in the steel industry. david: can i bring up the fact too that yes there was a big increase in imported steel in 2017, 15% increase, but in 2017, nucor, the biggest u.s. steel manufacturer increased its profits and increased its revenue by 25%. so yes, there was an increase in imported steel. no, it did not hurt steel profits, u.s. steel company profits they were making more

money in 2017 than they were in the year before. dagen: steel dynamics, record sales, record income, record shipments last year, even u.s. steel posting a profit last year. david: are you willing to punish the consumer that much for an industry that is not being punished that much from a growing economy? dagen: by the way holding up a can of soup or lecturing somebody about the cost of a six pack of beer, it's condescending. is this messaging so tone deaf because hope hicks isn't there anymore? i know she just resigned. but again, you've got to think about the way this looks because that looked bad and it sounded worse. neil: bill, is there a way to fix this and make it right to address some of these trade inequities? the president is right about that. there are some disparities. how do we go about changing it? we talked about it before and

those disparities continue, they exist. >> well, i think you have to continue to put pressure both diplomatically and on businesses in these countries, but the reality is, neil, that you have to be careful because it works both ways. back to dagen's point, i can tell you when i ran heinz, we produced baked beans in the u.k., using tin plate produced in europe but the beans were almost totally sourced in michigan. what if the british in response say let's put a tariff on navy beans. this thing has repercussions way beyond a simple statement. i worry about this is the unintended consequences on this, lead to production inefficiencies and really ultimately damage businesses. i recognize why he's doing this. i understand it plays to middle america. as a pittsburgher i get it, but still i don't think it's the right way to do it. neil: gina? >> you know, neil, here's how i gauge things that the president

does. i watch for the left to go into total -- and then i watch for the eu to start threatening us. when those two things are happening, i think the president is on the right track. neil: it is not just the left -- >> i do think neil that in the long run we will see he's always playing the long game. he's always playing chess. watch and see. i bet this goes well. david: by the way the left is very happy, the support he's getting is from the democrats and the unions. the left is not unhappy with this move. neil: guys i -- >> i meant the leftist media. that's a different thing than the censor of the democrat party. that's a different thing. david: it is a mistake. neil: everyone here has to hug. [laughter] neil: another story. -- telling delta airlines enough is enough over its stance on the nra backing away from the nra, that is delta, the republican

lieutenant governor of georgia, with us right now. governor, very good to have you. you led this charge to stop this tax incentive that delta and other airlines use in georgia because it is separating itself from the nra. now, the head of delta saying he won't be bullied. are you trying to bully him? >> well, first of all, neil, it's great to be with you. i think it is important to note that actually they did not have a tax cut. they were asking for jet fuel exemption that would move to zero on paying any tax on jet fuel. that was in the context of a larger tax bill that we were moving through the legislature. neil: i understand, but you were taking it away from them -- >> no, neil, they didn't have the tax cut. neil: i understand that, sir, but i'm just saying they wanted it, they didn't get it because of this position on the nra; correct? >> that is correct. neil: is that right to do? you think it is. others say it is a slippery

slope. and you're going to chase them right out of your state if the governor of this state new york where i am now has his way, he will try to woo him here. >> i mean i think you would agree that capitalism is less about social policy and more about fiscal policy. i think the fiscal policy for delta is very strong here in our state. we're the number one state to do business in, when you look at our low tax environment, you also look at the cost of living, the system, along with our world class workforce, we're in a great position. delta's in a wonderful position to continue to make record profits. the issue here was there were many individuals that were already concerned about giving a special tax cut to delta, and then when they weighed in on the boycott, that really was obviously i think the issue that came to the forefront, and honestly conservatives are getting tired of being kicked around. and i'm one of those.

i think -- neil: governor, there was a time where there was a transgender debate going on north carolina a lot of groups were punishing north carolina and states that supported that move, that north carolina saying they essentially went too far. there was a lot of back and forth on this, but a lot of conservative groups were united a lot of conservative politicians were united that punishing north carolina went too far. yet, you are punishing delta for taking this tact, and i'm wondering if that is hypocritical. >> well, i totally take issue with that, neil. i do not think that we're punishing delta or any other company for that matter. neil: why would delta ceo say our values are not for sale? he wanted simply to stay away from the controversy, pro or con; right? any company is going to avoid that like the plague. you want to stay away from controversy. you are punishing a company for maybe purposely valid reasons

governor because it didn't welcome the controversy you're very comfortable embracing? >> well, absolutely. and they have a choice to make. i'm not telling them that they can't make that choice. i'm just simply saying that obviously if delta, you know, wanted to weigh in, after they already negotiated a benefit for the convention of nra, which they did, on a national boycott, i find that wrong because that flies in the face of conservative values that we believe in. had they treated everyone equally and said we're suspending all of our benefits that we have negotiated, that would have been one thing. now, for delta, they have come forward, along with the ceo and said we are very pro 2nd amendment. and i think that's a step in the right direction. let me very clear, delta is part of our family in georgia, and so i have had a long long record of supporting and helping delta,

back when they went through the bankruptcy, i was there in the legislature to actually do away with this jet fuel to help them financially get back. but corporations need to be focused more at their fiduciary responsibility to their shareholders versus trying -- neil: would you extend to other companies that do business? i don't know if you have a dick's sporting goods in georgia. certainly have a lot of wal-marts. they have made moves already to address gun, gun sales, raise the age for those who want to purchase those guns. >> neil, that is perfectly within -- neil: what would you do? >> that is perfectly within their right. they are treating everyone the same. they are not singling out a one individual -- neil: but the nra opposes those moves. you are penalizing a company that had an awards program for nra members to, you know, to take advantage of that and by group sales on ticket prices, that sort of thing. a lot of people look at it let their investors, customers decide whether that is a good or

bad move. we will see it prove out in their business. you have added another element to strong arm of the state government in this case if they don't tow the line; right? >> well, i mean, you're right, i've basically, you know, have been very supportive of delta and will continue to be supportive of delta. neil: what if i'm a company, sir, that wants -- you are running for governor. you get to be governor. and then i hear that a lot of companies, you know what? i might want to set up shop in atlanta or georgia in general, and now i don't know because, you know, the political winds there could be very fickle and i may not get the treatment i want or the sort of government free environment i want. i might choose some other states. >> that's a false narrative. a total false narrative. when you look at the fortune 500 companies we have in our state, you look at the fact that we are the capital of the south. no one really compares to who we are. and people and companies make

decisions based on financial reasons. okay? and we're not being punitive, nor will we be punitive. neil: what would you say if delta said we're leaving, what would you say? >> delta came out and said they are not leaving. neil: they are still digesting this. if they were to leave, how would you feel? >> they are not going to leave. first of all. neil: okay, all right. >> they have a huge financial presence in our state. they are making record profits, and they know that they have a state that has their back, and they are going to be able to make more money than they ever have right here in our state. but again, you know, this is a great lesson for all of us to learn, both in terms of politics, but also in terms of business too. neil: okay, governor. >> let's stay focused on the business issues. neil: all right. we will see how it all pans out in the meantime, we've got that other storm, the real storm, the life and death storm that's a nor'easter that's not going away, particularly in upper new england.

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neil: you are looking live at quincy, massachusetts, a lot of flooding going on there, water rescues in the state going on as we speak. powerful storm that's wreaking havoc across the east, particularly there. on the phone is massachusetts emergency management director. director, thank you for taking the time. man oh man this thing looks like horrible. >> it's been a long 36 hours. mother nature has really just thrown everything she has at us. you know, damaging winds, rain, snow, and massive coastal flooding. neil: it certainly looks that way. a lot of people were caught off-guard, despite the warnings. what can you tell us right now? what's the latest read?

>> you know, along our entire east and north-facing coast, you know, we have had 30 or more communities that have already gone through two very high, high tides with major coastal flooding, and we're going into a third one in about an hour and a half. so we've seen prolonged destructive flooding across our entire coastline. it's forced, you know, thousands of people out of their homes. it's caused local officials and state public safety personnel and national guardsmen to have to rescue hundreds of people. and, you know, it is too early to tell, but it certainly looks like we're going to have a lot of homes that have been significantly damaged and a lot of infrastructure destroyed. and then when we move away from our coast, where we received, you know, in some areas 5 inches

of rain at the same time that we had hurricane-force winds, we had gusts yesterday up to almost 100 miles-per-hour, and they are still gusting over 60. so we've got areas that in many communities that are simply impassable. hundreds and hundreds of downed trees. we're over 450,000 people without power yesterday. we're down about 380,000. so we have a lot of work ahead of us in the coming days, but we're still in emergency response mode, and hopefully we'll transition into a clean up and recovery over the next 12 to 24 hours. neil: yeah, i can't believe -- be safe yourself, director. thank you for taking the time. appreciate it. >> pleasure, thank you. neil: much has been made meanwhile about hope hicks, before the house intelligence committee, the admission that she sometimes tells white lies for the president. a lot of people are wondering how did that get out so fast

because that was vealed as the questioning was -- that was revealed as the questioning was going on. virginia house judiciary chair, congressman, you know, it is weird. i have talked to a number of people about this, regardless of the white lies comment and what it meant and what she was implying there, the fact that everyone seemed to know about it. what do you think? >> leaks are a serious problem in washington, and they have to be dealt with. we just learned yesterday that the former deputy director of the fbi was authorizing leaks in his official capacity to the "wall street journal" regarding the investigation into the hilary clinton e-mail matter. so it's an ongoing problem. people should wait for the facts. in this case, with regard to mr. mccabe, the facts will come out when the inspector general of the department of justice michael horowitz releases a report which is just weeks away.

this is a leak however of what's expected to be in that report. neil: do you have faith in mr. horowitz's report? do you? >> i have a lot of confidence in the inspector general and his office to do a fair job. i think it's important that that report get out as quickly as possible. and i don't believe that just the inspector general looking into all of this is sufficient. a long while ago, last year, i and many other members of the house judiciary committee called on the department of justice to appoint a special counsel to look into the fbi's handling of the whole clinton e-mail investigation. and not just because of the things that director comey did back then in terms of making a decision before he had interviewed the witnesses, writing this and then having it changed to fit his narrative instead of to fit the law, when

he made his statement back last summer. neil: right. >> but also what happened in, you know, this democrat should be very worried about what happened right before the election, a week, ten days before the election. neil: but that didn't -- but jeff sessions going the route he did, you're comfortable with at least that, unlike the president is not? >> i'm comfortable that as long as that new request by jeff sessions does not delay the release of the report regarding the investigation he was already conducting, i'm fine with that, but i also don't believe that's going to be sufficient, and the judiciary committee and the oversite government committee, trey gowdy and i will continue to investigate these matters until there is an appropriate outside investigation with prosecuting powers.

neil: alabama senator shelby does not have confidence. this is from a couple days ago. if you are jeff sessions, why do you stay attorney general? >> that's a question of the day right now. do you stay -- neil: would you? if it were you senator in that capacity, would you stay? would you be humiliated and happily humiliated day in and day out? >> absolutely not. i wouldn't stay at all unless the president wanted me to stay and he appointed me. i wouldn't be under anybody's -- i wouldn't be anybody's whipping boy. i wouldn't be belittled because the president is saying you don't have any confidence in me. that's jeff's challenge right now. what he wants to do and how he does it, and he's a good man. he's going through a lot. he's got a lot of challenges. neil: what do you think about that chairman? what do you think about that chairman? >> jeff sessions is a good man. it's very unfortunate he found it necessary t