arthel: this is a fox news alert, president trump keeping up the pressure on iran, saying he will impose further sanctions against the regime. tehran not backing down, vowing to respond to any threat from the u.s. hello, everyone. welcome to america's news headquarters, i'm arthel neville. eric: welcome back. i'm eric shawn. the president also telling reporters this afternoon before he left for camp david, a few hours ago, that military action against iran is still on the table. that after he called off the retaliatory military strike thursday, claiming the estimated death toll of 150 people would not have been proportionate to

iran's downing of an unmanned u.s. drone with no loss of life. here is the president, earlier this afternoon. >> everybody was saying i'm a war monger and now they say i'm a dove. and i think i'm neither. you want to know the truth. i'm a man with common sense. this is not about disgrace. this is -- this is not about the straits. this is about iran cannot have a nuclear weapon, very simple. eric: we have details on what we can expect. >> reporter: president trump on the ground right now, meeting with senior advisors with camp david. he'll come back to the white house tomorrow. he has a lot of work ahead for him, especially when it comments to the iran policy. he'll be talk about other issues but iran will be top of mind. president said that war is not something he wants. he says sanctions appear to be more realistic. tensions increased this week when iranians shot down a u.s.

drone. its was unmanned. minutes before the strike, the president announced he aborted the mission, citing the potential casualties. >> i don't want to kill 150 of anything or anybody, until it's absolutely necessary. and most people very much awithe with what i'm doing. if the leadership of iran behaves badly, it's going to be a very, very bad day for them. but hopefully they're smart and hopefully they really care for their people and not themselves. >> reporter: before any dialogue takes place it looks like sanctions are the next step. the president without citing specific examples of sanctions says he has new sanctions ready to go on top of the sanctions already in place on iran. >> iran right now is an economic mess. they're going through hell. the sanctions have hit them hard. more sanctions are going to be

put on, a lot more. it's hard to believe you can even put them on. but it's a mess. all i want is no nuclear weapons. >> reporter: i asked the president if he would consider speaking with senio senior leadp in iran, all the way up to the ayatollah. he says he want to be friends ws with iran, but he admitted it may not happen. the president will be back from camp david tomorrow. a rare trip to camp david. eric: could be stuff as they still chant death to america and consider us the great satan. arthel: we're going to bring in christian whiten, a former state department senior advisor under the trump and bush administrations. christian, thanks for being here. >.listen, president trump cleary does not want a war. he's bending over backwards to give iran an off-ramp to diffuse

development of nuclear weapons and an on-ramp to diplomatic talks, saying he wants to help make iran great again. is president trump playing this right, christian? >> i think the last couple days have been a little bit disappointing. i've been a strong supporter of this administration's foreign policy but to have an attack sort of in the works, thrown together very rapidly and apparently not involving any of our allies, we have all these gulf partners, all of whom we give a de facto defense guarantee to. and for just the united states to be the one on the hook for all of this retaliation, this isn't going to war against iran, we're not going to invade, we're not going to do democracy building or nation building but just a counter attack to their attack on us, not involving allies was a little unfortunate and then to turn it off as it was also a little weary. it sets a precedent doesn't it that you can perhaps shoot down an aircraft clearly marked with

the insignia of the u.s., what happens if the chinese decide they're upset with us, are we going to start seeing u.s. military aircraft shot down in the south china sea? the saving grace i think is this isn't over. i think the president is still deliberating what to do. arthel: we're going to get to that. do you think that it counts that iran said okay, listen, they made sure not to shoot down any aircraft that is manned. so not to have any u.s. troop casualties. >> no, i don't think that counts. the problem, success of u.s. presidents have looking at discrete individual events when iran has committed a transgression and taken a along sometimes they only look mildly appalling. if you look at iran's conduct going back to mid-april when it said it bodie would disrupt shipping, it did, it wounded according to secretary pompeo four u.s. troops in afghanistan, it attempted sabotage on four tankers before the two it successfully mined. and if you look at the 40 years

of conduct of this regime since it came to power in 1979, killing americans, 241 marines in beirut, blowing up the kobar towers bar racks in saudi arabia, killing more than 1,000 americans in iraq in the last decade or two. this is a regime that killed americans across the middle east. so just saying well, it's okay that they didn't kill -- i think that's sort of missing the big picture. arthel: meanwhile, president trump says he likes having people like national security advisor john bolton who he described as a hawk and other advisors who don't take that position. let's listen to the president and we'll talk about it. >> john bolton is doing a very good job but he takes it generally a tough posture. i have other people that don't take that posture. but the only one that matters is me. because i'll listen to everybody. and i want people on both sides. having people on both sides to me is very important. arthel: so president trump

again taking a definitive leadership position. what do you expect iran will do next and what will president trump consider a move in the right direction? >> i think he would consider a gesture, one that's been i'll lieu sieveelusive, but toward negotiations. you have pompeo, secretary of state, playing bad cop, having a long list of 15 or so demands that iran has to meet, not on just the nuclear program but on generally improving his behavior. the president himself making clear that what he's interested in is in the 23450 the nuclear . my guess is iran isn't willing to do that. prime ministe medicine abe was n with that offer, and the result was they attacked an oil tanker that was japanese owned.

arthel: perhaps that power struggle could prevent iran from going to the diplomatic table. >> that's another factor, although i think that's often exacerbated. the president himself implied, well, maybe this wasn't done because it's such a stupid act to attack a u.s. military aircraft, maybe it wasn't done with the full authority of their command authority. flipping that around, i don't think that someone in the iranian military or the irgc would have attacked without a clear authority going to the very top of the regime. for the longest time, experts in washington have said there are mod rests in iran who are -- moderates in iran who are willing to come out. this is why the reagan administration got in trouble, trading arms for hostages. we sent arms to iran, on the theory it would empower moderates. clinton, the same thing, trying to create an opening. i think the regime is more on the p same page about hating the united states and seeing us an enemy with whom there is no chance for negotiations.

hopefully that changes. but i think this is a fairly unitary regime. arthel: based on the history of iran and you stated you weren't in favor of the president's currently, what does the president do next? >> my advice is actually to retaliate. we're not going to war. we're responding to something they did. i think it's important we have our gulf allies involved in a retaliation. there's safety in numbers. that will make clear to iran and the world that the iranian regime is isolated and the president's absolutely right, to keep an open door to negotiations. i think they're going to need to be softened up over time. they're going to need to see the president's reelected because a lot of tyrants around the world don't know that. arthel: with your saying retaliate. retaliate how? >> maritime assault, first against the ships and one involving surface to air missiles. i think we should degrade their maritime capabilities especially

along the coast, especially along the strait of hormuz a and we make it clear we have escalation dominance, we're willing to come back if they continue their misconduct and perhaps targeting their nuclear activities especially in the tonnes where the uranium enrichment takes place and the reactor which yields nuclear waste which includes plutonium that could be reprocessed and turned into a bomb. arthel: i'm sure we will be discussing this again and let's home this does tamp down. nobody wants a war. thank you. eric: president trump defending the expected illegal immigrant raids by ti the immigrations and customs agency, those expected to start tomorrow amid major pushback from democrats. the president saying the round-up will target illegal immigrants who have been on the run from the law, people deported before. the raids are set to be planned for 10 major cities across the country, including lawsuit

atlanta, chicago, los angeles and new york. the president addressing the raids and the border crisis as he departed for camp david this morning. >> it starts during the course of this next week, maybe earlier than that, and again, everybody that came into the country illegally will be brought out of the country very legally. now, with that being said, the border's in much better shape, mexico's doing a good job. we need congress to fix the loopholes and fix asylums and we'll have the cleanest border there is. eric: christina coleman live in lonlos angeles covering this sty for us. hi, christina. >> reporter: hi, eric. well, it is just hours before the raids are set to begin. it's top of mind for president trump. he commented on the white house south lawn this morning, saying members of law enforcement who will be involved in the raids are good people following the law. just now, house speaker nancy pelosi released a statement,

she's encouraging faith leaders this sunday to pressure president trump to stop what she calls a heartless plan. she says in part, quote, yesterday the president spoke about the importance of avoiding the collateral damage of 150 lives in iran. i would hope he would apply that same value to avoiding the collateral damage to tens of thousands of children who are frightened by his actions. the raids are expected to target about 2,000 families in ten cities including here in los angeles, san francisco, atlanta, baltimore, chicago, and houston. immigration activists also speaking out. >> unfortunately, this is part of a policy by this administration to spread fear and terror among the immigrant community. >> what we see with these threats is really to create not just fear amongst the individuals that they're targeting but fear amongst the entire community. >> reporter: federal officials say a record number of migrant

families have arrived at the southern border in recent months. president trump says the people i.c.e. will apprehend have already been order todd be deported. he says the raids will help make cities safer. >> well, some cities are going to fight it but if you notice, they're generally high crime cities. if you look at chicago, they're fighting it and you look at other cities, they're fighting it. many of those cities are high crime cities and they're sanctuary cities. we're very focused, i.c.e., these are fantastic people. we're very, very focused on getting ms-13 out of this country. >> reporter: the mayors of baltimore, atlanta and san francisco don't support the raids. they're reminding immigrants of their legal rights and protections in case they are at risk of deportation. eric: we'll have a lot more on this tomorrow. also, tonight justice with janine, the judge has the acting i.c.e. director, be sure to

check that out tonight, 9:00 p.m. eastern right here. arthel: south carolina is the place to be for nearly all of the 2020 democratic contenders. they're making their pitch to voters at the state convention there and some also attending a planned parenthood forum. the state holds the first southern primary and could prove pivotal in winning the democratic nomination. peter doocy is live in columbia, south carolina. hi, peter. >> reporter: arthel, a few minutes ago bernie sanders brought a message to the stage about totally transforming the democratic party. we're at a democratic party convention and despite that, the crowd seemed to really enjoy what he had to say especially when he ran through the details about a recent condemnation from the left-leaning group, third way. >> at this third way meeting, i was called, quote, an

existential threat to the democratic party. now, why am ian existential threat? well, maybe it's because my administration will finally take on the insurance companies and the drug companies and pass a medicare for all single payer program. >> reporter: we also heard from the only top tier contender who did not address, jim clyburn's world famous fish fry last night, that's pete buttigieg who has been spending time in south bend, where he is the mayor, trying to reduce tensions after a police officer shot and killed a black man who was allegedly wielding a knife. that is something that buttigieg brought from south bend to south carolina this morning. >> a tragic shooting of a resident of our community by a police officer, it is as if one member of our family died at the hands of another.

and even as an outside process works, to determine what happened, we already know why such deep wounds are surfacing. >> reporter: and so biggest movers in recent polls have been mayor pete buttigieg and elizabeth warren. warren spoke this morning but her campaign is distributing t-shirts and pins that say i'm a warren democrat, they're trying to brand her as something different from the rest of the candidates. she was as well-received here in south carolina today and last night as anybody. arthel. arthel: seems like a full house behind you. hopefully they're all with open ears. peter doocy, thank you. eric: still ahead on the fox news channel, a sky diving plane goes down, making it one of the state's deadliest civilian crashes ever. with american tourists mysteriously dying in the

dominican republic, one resport has decided to go away with a common hotel room feature. we'll have that and more news, straight ahead. ♪ ♪ here i go again on my own ♪ goin' down the only road i've ever known ♪

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arthel: a sky diving airplane crashes in the ha hawaiian islad of oahu, killing all nine people on-board. it burst into flames upon hitting the ground. witnesses say it appeared to be having problems during take-off and was unsteady on the runway. the ntsb is sending a team to investigate the cause of the crash. this is one of the deadliest civilian plane crashes in the state's history. eric: the fall-out continues in dominican republic as authorities investigate the deaths of 11 american tourists who were on vacation in the past year. one popular resort is pulling mini bars from all of its rooms amid questions about if the deaths could have been caused by alcohol that may have been tampered with. jeff paul has much more on the investigation. hi, jeff. >> reporter: eric, the hard rock hotel in punta cana announced it

is going to be removing liquor dispensers from all rooms. the resort announced that it is bringing in and contracting with a u.s. health care facility to make sure that its on-site health clinic is up to u.s. and international standards. this comes hours after the tourism minister in the dr insisted that the situation has been exaggerated and fueled by speculation. he says there is nothing wrong with the dr and they have nothing to hide. >> we have shown that, first, there is not an avalanche of dead american tourists in the country. all of the deceased that have occurred, the causes that have been diamond an determined and s are there does not exist any mystery. >> reporter: his words are not sitting too well with some of the families of the 11 tourists who died in the span of the last 12 months. beginning in june of last year.

family members of laila cox who died after vacationing in the dr said they are not buying the explanation. they don't believe she passed away from a heart attack and they find the situation very suspicious. >> i mean, it's absolutely disgraceful. it's disgraceful to dismiss the concerns of the families with everything that's going on over there. there's something not right with this story and, i mean, how many more americans are going to have to die before something is done? >> reporter: now, the son of laila cox went oven to say he would like to hear what the trump administration has to say about what's been going on in the dr. so far, no tweets or comments from president trump on the situation. but what everyone is waiting for right now are the results of three toxicology tests, the tests that the fbi is helping out with. eric: jeff, thank you. arthel: eric, one city zi decis

to pay a $600,000 ransom in the wake of a cyber attack. is that a good idea? and could something like this happen to your community? also, he's president trump's nominee to be the next pentagon chief. more on army secretary mark esper and his credentials amid tensions with iran. >> the fact is, we're not going to have iran have a nuclear weapon and when they agree to that, they are going to have a wealthy country. they're going to be so happy. and i'm going to be their best friend. ♪

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so you feel refreshed. aleve pm. there's a better choice. hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪ arthel: more staffing shakeups at the pentagon. president trump nominating army secretary mark esper to be the next secretary of defense, following the abrupt resignation of patrick shanahan earlier this week. gillian turner has more from the dc bureau. >> reporter: mark he's person currently the secretary of the army is already slated to become

acting secretary of destarting monday day. last night, the white house announced president trump hopes to ultimately make the secretary gig permanent. esper has served as the army secretary for a year and-a-half now. this comes on the heels of patrick shanahan's withdrawal from consideration this past tuesday. >> mark esper, a highly respected gentleman with a great career, a tremendous talent, was just named acting secretary of defense. i think he'll do very well. >> reporter: the white house has been touting his resume, saying he's a former vice president of government relations and a defense contractor. he's worked under senate committees. he has a doctorate in public poll sigh and he's a -- public policy and recipient of a dod model. news that he hopes to make esper permanent went over like a ton of bricks with democrats. >> i imagine you think it's important to have one, seems

like mark esper is the most likely person to take that role and to be nominated. if he is nominated, would you vote to confirm him? >> i will review his record but i'm not inclined at this time. >> reporter: this change-up at the pentagon is accompanied by changes at the national security council too. fiona hill, the president's top russia and europe advisor at the white house, will step down at the end of august and be replaced by tim morrison who joined the national security council last year as advisor for weapons of mass destruction. president trump cab''s cabinet s been a revolving door leadership. the department of homeland security is run by an acting secretary. that's kevin mcilinan. arthel: iran summoning a top envoy to iran as fallout continues over the downing of a

drone. iran complaining that the neighboring arab nation allowed the u.s. to have a base there to launched the unmanned aircraft. kitty he logan is in london with more on the story. >> reporter: iran essentially saying that it will not tolerate what it calls foreign sources on its doorstep, to show you the wider regional implications as tensions between the u.s. and iran continue to escalate. this all comes of course following the u.s. surveillance drone being brought down by an iranian missile on thursday. the u.s. says this drone was flying over the strait of hormuz which is international waters, iran insisting the drone was over iranian air space and is warning today it will respond to what it calls any u.s. threat. and as a precaution, it's interesting to note that several international airlines are rerouting their flights over iranian air space. the attack on the u.s. drone was carried out by the iranian

revolutionary guard, the first direct military engagement with iran during the latest standoff. there's diplomatic relations with iran that have worsened since the trump administration a announced the u.s. would withdraw from the iran nuclear deal. miamid all these tensions, the u.s. has an aircraft carrier in the gulf, the uss lincoln and is sending 1,000 troops to the region. president trump did call off the military strike as we know, to retaliate against the shooting down of the drone. he said that would have been a disproportionate reaction. he's saying now he would be open to talks but he's not ruling out military action in the future. but he has already announced more sanctions on tehran today. now, there is of course growing international concern about this standoff with iran and today we saw britain send a foreign officer delegation to tehran in the hope of talking to officials there to try and deescalate the

situation. arthel: kitty, thank you. eric: there are protests against the regime here at home and they took to the streets of the nation's capital, including in front of the white house. they shouted, free iran, as hundreds of opposition demonstrators marched against tehran, calling for tighter sanctions and democracy in the country. the protesters are followers of the largest iranian resistance group. and that march part of a series of global public demonstrations held against the regime. they started in brussels last week, aimed at european union leaders, urging them to follow in the foot steps of the u.s. when it comes to tougher policies such as designating the revolutionary guard as a terrorist organization. they called for more western sanctions like those imposed by the trump administration and point to iran's shootdown of the u.s. drone this week and to accusations in europe and at home that tehran plotted assassination terrorist attacks against opponents who want to

undermine the regime. the demonstrators saw a video from the group's leader who said it is the iranian people who are suffering under a quote, religious facist regime. she cited a litany of attacks. >> [speaking in a foreign language] eric eric: the demonstrations started out at the state department. they predict the pressure imposed on the regime could lead to the down fall. they then walked to the white house in what they called a march for regime change. officials are raising red flags about what's going on with iran, saying it could prompt cyber

attacks against our country. researchers say they have seen iran backed hacking attempts targeting the u.s. government and private sector, that in recent days. david weinstein joins us, chief security officer, former chief of technology for new jersey, so you know the state government systems and you know how this works. you've heard about russia, but what about iran? >> a lot of attention on russia lately but iran is a serious cyber actor. they certainly don't have the capability that russia has, but you have to remember, for iran particularly given the region they're in and the competitiveness they have with other gulf states, as well as the u.s., this is an existential battle for them. cyber warfare capabilities provides for them an asymmetric warfare capability they can use against threats in the region, as well as the u.s. eric: what types of attacks do you think we've seen? >> we've steyn two types of --

seen two types of attacks. the first, the most prominent directed to the u.s. and what the recent reporting has been about is focused on gathering intelligence, right, so iran is targeting military personnel through somewhat sophisticated techniques to try to gain access to their accounts and learn about the u.s. activities, particularly in the region. so we've seen a lot of targeted attacks against navy personnel, because obviously we have a huge naval presence in the gulf. the other side of the coin, and these tactics have been more targeted towards countries in the region, gulf states, namely saudi arabia and israel, are more destructive attacks. so they move from just gathering target information about networks and people and actually manipulating or destroying data. so they have demonstrated the capability. they have not used destructive attacks against the u.s. but iranian cyber activities are usually a pretty good proxy for

u.s./iranian relations, which is to say as relations deteriorate between the u.s. and iran as they have over the last week, significantly, we tend to see an uptick or escalation in iranian cyber operations and that's playing out right now. eric: that's exactly what the wall street journal was reporting. did navy personnel have anything to worry about personally if they're trying to target or find information about our men in service and women? >> not so much on a personal level but they are exploiting navy personnel. so the iranians can understand more about what the military is doing in the region and potentially gain access to their accounts as a means of furthering access into military networks. eric: this comes as a troubling situation of ransomware, these are someone getting into systems of local town and city governments and holding it for ransom. riviera beach, florida, the town council voted to pay $600,000 to whoever it is.

how does this work? this has been happening for a couple years now, where bad actors get into the computer system and say we're going to shut you down, unless you pay us. >> huge, huge problem. i spear yedge experienced this y as chief technology officer. have you a clear business case for criminal actor syndicates who lock up your data and extort the victims of this ransomware for payment which is usually tendered in bitcoin or some other crypto payment. eric: that's why you can't find out who they are? >> that makes tracing it back really hard, not to mention the fact that most of these folks, almost all of them are operating from overseas in jurisdictions that the u.s. does not have extradition treaties with. even if we do track them down, it's hard to bring them to justice. eric: who do you think it is? >> nameless, faceless hackers. these guys are everywhere. and they're a criminal syndicate. eric: eastern europe, russia

perhaps or north korea or nonpolitical but criminal syndicates. >> these are non-state actors. there is a large concentration of hearings coming from eastern europe and that part of the world but these are non-state actors. they have one motivation and one motivation only, which is profit and when towns like riviera beach and this is not an indictment of riviera beach, when they pay out, that validates the business. eric: it encourages them. baltimore paid $18 million. atlanta paid $17 million. can this be stopped? can it be stopped by the federal government? >> it's not to much a problem that the government can solve. the government can help with investigating these and ultimately deterring future attacks by bringing these people to justice. but the end users, the organizations themselves have a responsibility to make sure that their systems are up-to-date so that they're not being exploited by thi malware that ultimately s

it up. the other piece is, it's not a trivial matter, particularly for municipal governments, even state governments in some cases, to make sure all their systems are running the latest version of every software. the other mitigation step is to make sure your data is backed up elsewhere in a system that's isolated from your business network. so if you do fall victim to this attack, you can just have your machines reimaged and back up or recover the system. eric: that is sophisticated corporate operations of computer systems that i guess all the cities, towns and counties, they've got to get on the page on this. but it is difficult and it is a threat. david weinstein, thank you for joining us and for your insight. arthel: thank you. we are just away from a highly anticipated meeting between president trump and xi, the world and the markets will be watching as the two leaders could settle the trade war or make it worse. which way will it go?

gordon chang weighs in, next. (danny) let me get this straight.

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eric: it was another day of protests in hong kong, the demonstrators surrounding police headquarters and other government buildings, shutting them down, this coming as the government there refuses to soots phseasphitosatisfy demande controversial extradition bill. we have the latest from hong kong. hi, greg. >> reporter: it is quiet along the harborfront in hong kong, nothing like the scene that this neighborhood saw last night. yeah, thousands of pro-democracy activists beseiged the police headquarters, also several other government buildings, the whole thing lasted about 15 hours. it is an aggressive new phase of the unrest. they are upset about the proposed extradition law and a whole lot of other things. protesters hurled oil and eggs, scrawled graffiti along the

walls of the headquarters. the thing came very close to the rerun of the serious violence seen at a demonstration last week. the police later on branded it illegal and irrational. we watched as activists used a guerrilla style mobile strategy to stay ahead of the police. they say it is one to set a signal to the beijing authorities who now run the place. take a listen. >> i hope that those in power realize that without democracy in hong kong, we'll have these kinds of issues and these huge protests and these sort of occasional outbursts of major discontent happen again and again and again. >> this will go on? >> yes. >> reporter: the local government here has made some concessions, eric, but apparently not enough. there are more protests planned including one that could really see the numbers come out again

like we saw last sunday, when we saw 2 million people come out on the street, all of this to coincide in part with the g-20 summit next week in japan and attendance, chias knee presideni and, yes, president trump. arthelthere.arthel: there wille protests planned in hong kong ahead of the summit next week. president trump is scheduled to meet the chinese president xi there. the two leaders have a lot to discuss, including the situation with iran, north korea and of course the yet unresolved issues on trade. this is all happening after president xi traveled to pyongyang to meet with north korea's leader, kim jong un, earlier this week. so what can we expect to come out of this high stakes face-to-face? gordon chang is here now, he is an asia analyst and the author of the recently released book, losing south korea. always great to have you, gordon chang. what are you expecting to come

out of the meeting between presidents trump and xi. >> i think there will be a lot of nice words but i don't think there's going to be agreement on anything except maybe to continue talks which of course are now stalled. the chinese have been publicizing their position in public. and it's a hard line one. they're saying it's nonnegotiable, talking about war against the united states, a concept of a many people' peopl. this is not moving in the right direction for people who want to see a deal with beijing. the chinese have made it very clear that the only way you're going to have an agreement is if the u.s. ca capitulates to xi-jinping. arthel: president trump is not going to do that, so what's next? >> i think you'll see u.s. companies and others get out of china. the probe problem is uncertain s moment they know if there's an agreement it's probably not going to hold. there's going to be a number of companies, we've seen google already, apple talking about, nintendo, the list goes on and

on, these countries want to reduce their vulnerability to china. it's because china is pushing them out with anti-foreign policies. arthel.arthel: where are they , those companies? >> some of them will land in the united states? black and decker is putting $90 million into fort worth. other countries will benefit. central america would be an important one for us. if companies go back to central america -- arthel: they get the money, they can maybe settle what's happening with the migrants trying to come here. >> you wouldn't have migrants coming up through mexico, pressuring our southern border. that would be a good thing. of course, vietnam, bangladesh, other countries in the region, they'll also make out with the factories coming down out of china. arthel: the first part of the factories coming to -- black and decker coming to the us, money going to central america, that's a win for president trump. even if he doesn't get exactly what he wants from china, he can say, hey, i'm producing

something positive out of this. >> he would be right about that. we need to solidify our own region. arthel: i want to talk about what you think is going to happen in terms of the discussion between president xi and trump on the situation in iran but i have to take a break. so hang onto that thought for me. okay. we're back in a moment. ♪ limu emu & doug mmm, exactly! liberty mutual customizes your car insurance, so you only pay for what you need. nice! but uh, what's up with your partner? oh! we just spend all day telling everyone how we customize car insurance because no two people are alike, so... limu gets a little confused when he sees another bird that looks exactly like him. ya... he'll figure it out. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ since my dvt blood clot i was thinking... could there be another around the corner? or could it turn out differently? i wanted to help protect myself. my doctor recommended eliquis.

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arthel: we're back with gordon chang. earlier, president trump hinted on how he thinks the discussion of iran could come up in osaka when he meets with president xi at the g-20. let's listen. >> we are the number one oil producer, oil and gas in the world by far. we're way ahead of russia. we're way ahead of saudi arabia. we don't really need the straits anymore. we take some, but we don't need it. the biggest beneficiary of the straits is china, 91% of their energy comes out of the straits. japan, indonesia, many other countries need it. so we're doing them a very big service by keeping the straits open. arthel: gordon, so japanese prime minister abe, shinzo abe is doing his part to help out with iran. will china do the same? >> i don't actually think so. right now they're looking for every single pressure point that they can use against the united

states in trade discussions. so for instance, you had xi-jinping go to pyongyang to meet kim jong un. he just left there. he sort of is dangling the north korean card. he might try to dangle the iran card as well. there's really i think little that xi-jinping can do in the middle east to really trouble us. and what trump said there is really interesting. he said, look, you really need us. arthel: you need iran's oil more than we do is what the president said. >> right. and by the way, i think the chinese are watching what's happening extremely closely. we don't need to have a military strike on the iranians but we do need to impose costs because the chinese have injured american pilots and diplomats this past year and he needs to show some sort of detense t deterrence toe iranians. arthel: is sanctions enough, yes or no? do we need military action? >> we don't necessarily need military action. what we need is really severe costs on the iranians so won't

do this again. you can do that all sorts of ways which are economic. arthel: take them to their economic knees is what you're saying, gordon chang. >> right. arthel: got to go. always a pleasure. you know that. we're back in a moment. but allstate helps you. with drivewise. feedback that helps you drive safer. and that can lower your cost now that you know the truth... are you in good hands? so, i started with the stats regarding my moderate to severe plaque psoriasis. like how humira has been prescribed to over 300,000 patients. and how many patients saw clear or almost clear skin in just 4 months - the kind of clearance that can last.

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"i'm okay." ♪ ♪ eric: team usa is on a roll, heading to what they call the knock-out stage of the women's world cup. the undefeated americans get a break this weekend but they're back in action on monday, when they face spain, kickoff set for

noon eastern time. you can catch all the world cup excitement, it's on fox and fox sports. man oh, man, they're really on fire. arthel: go, girls. we've got to go. we're back at 4:00 eastern. hope you can join us. eric: see you then. paulthen.paul: welcome to "thel editorial report." i'm paul gigot. president trump saying friday he is in no hurry to respond to iran, following this week's downing on an unmanned american drone over the strait of hormuz, after a day of escalating tension the president called off planned air strikes thursday night saying the response was not proportionate. let's bring in jonatha jonathan. thanks for coming in. what do you make of the president's decision which he has confirmed that he called off a strike in mid-mission. >> well, there are probably two ways of look