friends." he will be with us in the 7:00 hour and we hope you are, too. >> i will be here. and brian will be on radio right after the show. >> from 9:00. i hope everybody watches and listens. you can see it on fox nation. >> sandra: thank you for joining us. top of the hour. president trump firing back following a flurry of criticism out of the democratic national convention last night. the blistering back and forth ahead of tonight's grand finale when joe biden will formally accept his party's nomination for the presidency. i'm sandra smith. >> trace: i'm trace gallagher. senator kamala harris is making history last night becoming the first woman of color to accept a major party's vice presidential nomination but it was the keynote speech by former president obama that made headlines. the 44th president not mincing words delivering what is being described as unprecedented criticism of his successor. first here is kamala harris.

>> donald trump's failure of leadership has cost lives and livelihoods. the constant chaos leaves us adrift. the incompetence makes us feel afraid. the callousness make us feel alone. >> for close to four years now he has shown no interest in putting in the work. no interest in finding common ground. no interest in using the awesome power of his office to help anyone but himself and his friends. no interest in treating the presidency as anything but one more reality show that he can use to get the attention he caifshs. -- craves. >> president trump: the reason i'm here is because of president and joe biden, because if they did a good job, i wouldn't be here. >> sandra: we've got team fox coverage for you this morning.

john roberts is standing by at the white house. we begin with jackie heinrich in wilmington, delaware this morning. what's the reaction we've seen so far to the big night last night? >> good morning, sandra. former president barack obama didn't hold back unleashing on president trump warning the country his successor is on the brink of destroying democracy. it is the first major unfiltered speech from obama who only truly started campaigning for his former v.p. after biden locked up the nomination. it broke but shattered the tradition of former presidents avoiding to issue critiques. as president trump live tweeted reaction in all caps obama said president trump is unsuited to handle the pandemic and economic crisis. accused him of spanning hatred and racism and using his office for personal gain. >> donald trump hasn't grown

into the job because he can't. the consequences of that failure are severe. 170,000 americans dead. millions of jobs gone. while those at the top take in more than ever. >> obama was initially scheduled to close out the evening. the speaking order was rearranged leaving the country's first black president to lead into the nomination of its first black and south asian vice presidential nominee. she focused on the significance of that moment and what it means to all who came before and who will come after her? >> i'm so inspired by a new generation, you are pushing us to realize the ideals of our nation. pushing us to live the values we share. decency and fairness, justice

and love. >> it was surreal to witness not the history being made but you could feel how much coronavirus changed this convention. there was no live audience reacting to obama's words. kamala harris accepted the nomination to a live audience of only a few dozen members of the press. the only clapping you could hear when she accepted it was from kamala herself. at the end no big hug between joe biden and kamala harris. biden will accept the democratic presidential nomination tonight. the very same way here at the dnc. >> sandra: thank you, jackie. >> trace: president trump heading to joe biden's hometown of scranton, pennsylvania, this afternoon set to give a campaign speech just hours before biden accepts the democratic nomination for president. this after president trump fired a barrage of tweets at barack obama and kamala harris last night slamming them for

their critical remarks. the chief white house correspondent john roberts live on the north lawn. good morning to you. what is the president's response today? >> sticking by his principle when he gets back he hits back harder. it ignited a war of wards between the president and former president that will extend into the president's remarks in pennsylvania this afternoon and likely beyond that as well. the president tweeted before the beginning of the dnc last night quote, welcome barack and crooked hillary. see you on the field of battle. in his speech last night president obama spent the bulk of his time talking about president trump, not joe biden saying he had sat in the oval office with the then president elect 3 1/2 years ago. listen here. >> i did hope for the sake of our country that donald trump might show some interest in taking the job seriously. that he might come to feel the weight of the office and

discover some reverence for the democracy that had been placed in his care. but he never did. >> the president responding to president obama in all caps saying why did he refuse to endorse slow joe and why did he try to get him not to run, the president adding president obama saying he spied on my campaign and got caught. yesterday the press secretary refused to say if president trump would accept the results of the election if it didn't go his way. last night president obama accusing president trump of trying to suppress the vote. listen here. >> they know they can't win you over with their policies so they are hoping to make it as hard as possible for you to vote and to convince you that your vote does not matter. >> 3:00 this afternoon the president will be right next door to biden's hometown of scranton, pennsylvania. he will be in old forge where

he is expected to give a scathing address ahead of biden's acceptance speech. among i'm told the things the president will say is that biden left scranton 70 years ago and spent the last half century ripping off the residents of pennsylvania with bad policies and trade deals and remind that biden wants to raise taxes by $4 trillion and the biden support for the green new deal would devastate the energy industry in pennsylvania, among other things, trace. >> trace: john roberts live on the north lawn. thank you. we'll have brand-new reaction from the white house on all of this when press secretary kayleigh mcenany joins us trait ahead at 9:20 a.m. eastern time right here on "america's newsroom." >> sandra: first let's go to dan henninger deputy editor of the "wall street journal" editorial page. dan, great to see you this morning. what a night last night was. looking forward to your takeaways. first to all the time spent attacking donald trump on the part of former president barack

obama, very little time was spent talking about joe biden. >> yeah, that's right. there isn't all that much to say about joe biden remarkably given all the time he has been in public life. it is very hard to associate him with taking a stand on any big battle or any particular principle. it is clear that from watching the dnc the past three nights that they're running against donald trump on the basis of two things, coronavirus and character, which is to say they're running on the basis of what the opinion polls are showing to be the president's weakest point. i was struck how in two recent polls and of those people voting for joe biden close to 60% say they aren't voting for joe biden, they're voting against donald trump. so obviously the democrats are just going to drive the issue of character over and over again to make suburban voters especially where i think the

election will be decided, full of anxiety about the current president. and that is the message that we're hearing over and over. i will say, though, that i think they're overdoing it especially barack obama. several times, including mr. obama, they have said that the president is responsible somehow for all the people who have lost their jobs during the coronavirus pandemic. that is ludicrous. governments -- economies were shut down all over the world. the lockdown was pushed by most of the media. so i think serious people out there recognize that sort of thing and they are probably being a little put off by the exaggerations that they're hearing from most of these prominent democrats the last three nights. it creates an opening for the president, i think. >> sandra: historic night for kamala harris, formally accepting her v.p. nomination. here is a bit of her speech.

>> in this election, we have a chance to change the course of history. we're all in this fight, you, me and joe together. what an awesome responsibility. what an awesome privilege. so let's fight with conviction. let's fight with hope. >> sandra: she tried to inject some positivity putting out that message last night. did she move the needle in this race? did she sway any voters, dan? >> well, possibly. i don't think too many voters. it is very interesting kamala harris, the speech especially. there were a lot of high expectations for kamala harris in the democratic primaries. she didn't do very well at all. i thought the high point last night was, in fact, the video

that they assembled around kamala harris and her family and the aspirations of young women of color. that was quite moving. the thing about kamala harris is, though, when she starts to present as she presented that speech, it always comes across somehow as plodding and make no mistake, politics is performance art. i think senator harris is just not particularly good at that aspect of the performance. it was simply a straight forward speech hitting the points she had to make, but not really animating people in a serious way. and the thing is about kamala harris the most important vice presidential pick in history with the expectation that within the first term if mr. biden wins or by the end of the first team she would be the next president of the united states. and i'm not sure she came across last night as somebody who is ready to step quickly into the president's shoes. >> sandra: we'll have a lot more reaction to last night

throughout the morning. dan, appreciate you coming on this morning. thank you. >> this area has to be cleared. >> trace: the scene in portland last night. police declaring a riot again as protestors targeted a customs enforcement building downtown and we're hearing from a portland man the victim of a brutal attack on sunday. he said he pulled his truck over to the side of the road to help someone in the chaos when the crowd turned on him. >> someone was down there that got a bag taken. i seen a bag taken right in front of me and i'm just like they were hitting the person. i tried to step in between it trying to get the crowd to spread a little bit. by the end of it i'm wrecked and unconscious on the side of the road. >> trace: the unrest in portland has stretched for more than 80 straight nights. >> sandra: the trump

administration cracking down on violent crime through operation legend. at a news conference wednesday attorney general bill barr said there have been nearly 1500 arrests since july. barr also says violent crime could continue for the rest of the year. >> this spike may have a lot of reasons behind it. i think some of it may be the pent up aggression prompted by state and local quarantine orders. i definitely feel a lot of it is due to the pre-mature release of dangerous criminals by the courts and by prosecutors. and i think it also is related to the efforts that we've recently seen to demonize police and to defund their work. >> sandra: barr says many of those arrested were carrying illegal guns and now face federal charges. >> trace: fox news alert now as teachers across the country

threat en to strike over safety concerns about schools reopening during the pandemic. plus a new war of words between president trump and barack obama trading jabs over their performance in the oval office. white house press secretary kayleigh mcenany reacts to all of this next. >> president trump: i listened to that and then i see the horror that he has left us, the stupidity of the transactions that he made. i look at how bad he was, how ineffective a president he was. he was so ineffective, so terrible. i can't wiat to share at&t's big 5g news... (shouting through the glass) at&t has nationwide 5g? yup! and that's faster? faster, yea! but is it reliable? ah huh and secure! you should consider making a big deal about it! bigger? i said bigger! oh, big-bigger deal bigger than what i'm doing? it's not complicated.

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>> trace: florida becoming the fifth state to report more than 10,000 deaths from covid-19 confirmed cases in the state now around 584,000. the governor pointing to some positive signs, though, as the state works to get the pandemic under control. >> as we started to see this resurgence not only across the state but across the whole sun belt i was mindful of shutting down the state and having all these problems exacerbated. we were not going to do that. the numbers went down from the time disney opened. we really focused on keeping society functioning.

>> trace: california,, no new jersey and texas have each had more than 10,000 people die from the virus. >> 170,000 americans dead, millions of jobs top take in mo than ever. our worst impulses unleashed, our proud reputation around the world badly diminished, and our democratic institutions threatened like never before. >> sandra: former president barack obama blasting the failures of the trump presidency during his dnc remarks last night. president trump firing back in realtime in a series of tweets questioning obama's late endorsement of joe biden. let's bring in white house press secretary kayleigh mcenany. you can tell by the president's tweets last night that he was watching the night three of the convention in realtime. >> he was watching and look, what we saw from president

obama was nothing short of appalling. president obama failed this country. the slowest economic recovery since world war ii and president trump reversed it. he talked about saving democracy. president obama and president biden refused to accept the results of the election. spying on the trump campaign, going after lieutenant general michael flynn. it was appalling what happened under president obama sending many factory jobs overseas, isis running wild. president trump reversed it all. president obama didn't talk about solutions, just lies about this president con sectively one after the other. >> sandra: the president tried to respond in realtime and also on this multi-state tour this week of key battleground states in the upcoming election, trying to counter the messaging. what you saw last night was a lot of talk about president trump, not a lot of talk in

particular in president obama's speech about joe biden himself. but when they go after the president, it's very clear over the first three nights of this convention that they are attacking president trump on his character. talking about a lack of empathy. you have heard this messaging from many key democrats that have been speaking at the convention. how does the president counter that message? >> the president -- baseless attack. i watch this president and seen him interact with families who have lost their children to violence in democrat streets. watched him comfort sick parents who have lost their children to disease. and i've watched him be emotional and show empathy and show great character that is exactly the opposite of what president obama has said. what this president is doing. he doesn't hide in basements, he talks to the american people. he has traveled more than 6,000 miles this week. out to pennsylvania today. he looks the american people in the eye. he talks directly to them while

democrats just have a bunch of politicians lie amongst themselves. >> sandra: 3/4 of the speakers last night were women nancy pelosi was one of them talking with women's issues. >> i've seen firsthand donald trump's disrespect for working families and women. disrespect written into his policies toward our health and our lives not just his conduct. but we know what he doesn't, that when women succeed, america succeeds. >> sandra: hillary clinton, nancy pelosi, liz warren brought out their key female stars trying to make the case they're the party for women pointing out key differences that are happening right now. economically. the female unemployment rate in the country got new jobs numbers this morning is higher than men. they were making the case to vote for joe biden because he will be better for women. "politico" this morning women

take the fight to trump. you know women are essential to joe biden winning this election. did he get a bump from the female voters last night? >> no, he absolutely didn't. in fact, the rasmussen numbers tweeted there is interesting movement in the polling in light of this convention happening. but what this president has done for women generational lows in female unemployment, paid family leave for federal workers, block grants for low income mothers and fathers to have childcare. this president has fought for women and what has speaker pelosi done? left town. didn't care about unemployment benefits and tax cuts to low and middle income workers. she left town. she is rushing back to get more money to the post office but no money to the american people. it is appalling and she should be ashamed of herself. >> sandra: parents across the country sending their kids back to school. some not able to. the president wants it to

happen. he is calling for all schools to open and get the kids back in the classroom. the teachers union sees it a much different way. >> everyone wants their schools open but we don't want them open if they're not safe. the minute we feel that the mayor is trying to force people into a situation that is unsafe, we go. we go to court, we go to job action. that's where we go. >> sandra: he is speaking for the united federation of teachers saying teachers don't feel safe. they want every student to be tested when they walk through the door of their schools. can the president promise that that will eventually be a possibility? will we have testing capacity to test kids before they go back to school? how does the president respond to that, the teachers not wanting -- they're threatening a walk-out or sick-out. >> our testing is nursing homes and vulnerable communities. in terms of the teacher's union and what they're saying. we believe teachers are

essential workers. the media never stopped working during that pandemic. our meat packers didn't stop working nor law enforcement nor should our teachers. america's children must come first. the president is clear. if you are a teacher in a vulnerable community don't go back. those who can go back should and we have to protect our children and that means getting them back to school. >> sandra: we all want our kids back to school and we'll continue to follow all of it. it's a huge debate and a huge stress on parents to see what happens next. meanwhile we're limited on time. so much to talk to you about. yesterday the president received a lot of criticism for comments that he made on q non-, they are just hearing this for a first time. the "wall street journal" this morning describing -- asking the question what is qanon, a right wing group that believes president frufrm is under assault by satan worshippers

made its way from social media into u.s. politics. as of today the president has retweeted four congressional candidates who promoted their conspiracy theory. ari fleischer saying the president would be better off denouncing them. they're a bunch of whacks, both parties have nutty fringe groups. we need to keep the sentiments of those people on the fringes. is the president supporting this conspiracy theory? >> the president is working for the american people. the media talks a lot about qanon. i never heard the president mentioned him. i often talk to him 10 times the day. not once did he mention the group. the media talks and asks about it. the president is focused on the pandemic. navigating a historic response for. the v-shape economy. the media can focus on qanon. >> sandra: he was asked about it yesterday. he said he has heard about the

online conspiracy theorists. and that they are people that love our country. it was puzzling to many people. >> he is talking about his supporters. he believes his supporters are good hard working people that love this country. he is not in the business of basket of deplorable politics. >> sandra: does he want the support of that group? >> he is not looking who qanon is. he is navigating a pandemic, economic recovery and foixed on the american people, not some group on the internet or out there that the media tends to focus on far more than we believe is merited. >> sandra: the f.b.i. released a memo last year warning that qanon followers that could be conspiracy theory extremists. the president did comment on it. saying these are people that love our country. if there is any further response from the white house, let us know.

final thought? >> there are a lot of children in the country who died in the streets of democrat cities. we're focused on capturing criminals and navigating the pandemic and the economy, not some group. >> sandra: thank you for coming on this morning. >> trace: just released unemployment numbers catching analysts offguard. what the data shows and how the markets are now reacting. we'll talk about it with maria bartiromo coming up next. plus dozens of wildfires raging across california. what is making it extremely difficult for crews to contain them? >> the size and complexity at which these incidents are burning is challenging all aspects of emergency response. it is critical that the community heed the warnings of law enforcement and remain prepared to evacuate at a moment's notice.

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issuing an air quality alert. >> sandra: 1.1 million americans applied for jobless benefits last week. up from the week before. when the number fell below 1 million for the first time since march. wall street opening lower on that news, marie bartiromo is with us to talk about it. great to see you. what is the takeaway from the new job numbers this morning? >> sandra, thank you so much. it definitely was a little hotter than we wanted. it was a little worse than expected with this rise back above a million jobless claims for the last week. but i've got to say that overall, we have been seeing a bit of a turn to the positive recovery notions. this week was a big week in terms of retail. i spoke with the ceo of wal-mart on mornings with maria. he is seeing a big burst of business in the last couple of months.

in fact, e-commerce was up 96% at wal-mart. so you do see those companies with the wherewithal to adapt to delivery adapt to this changing back drop as really among the winners in this pandemic. if you could call it any. like amazon, wal-mart has certainly benefited from strength in the consumer spending. that's what the ceo told me on fox business. having said that, unemployment was expected to take a breather in the month of july because you had those coronavirus spikes across the country. we're still expecting growth. we had a good week in retail this week and we also saw some good numbers in terms of jobs over the last several months in may and in june. we are expecting a v-shape recovery and growth to return at some point in the second half of the year. so i don't think this is much to worry about in terms of these jobless numbers today. it was pretty much expected that we would see a continuation of the unemployment benefits as they are at a stalemate in washington as far as more

stimulus. >> sandra: now the gop is expected to present the skinny bill, whatever it may be, maria. we haven't had a chance to talk since the u.s. stock market has been hitting brand-new highs. s&p 500, nasdaq record highs this week multiple days in a row. there is certainly optimism out there. what about getting help to so many people who are still struggling in this country as a result of this pandemic, who are still out of a job, still looking to get help, still looking to shore up their small business, maria? >> i do think we will get a deal in congress but they are far apart. the democrats want more than $3 trillion stimulus package and want to include things that don't have anything to do with coronavirus. the republicans are at just over $1 trillion. they'll have to come to the middle. both sides have to understand that this is a moment in time when we're seeing evictions and the rent due and people are

filing for all of these millions in unemployment benefits. i'll just point your attention to the federal reserve. yesterday jay powell, the chairman of the fed said there is still a lot of uncertainty out there because of the coronavirus and we need a stimulus package. but they were uncommittal about september in terms of what to do. on the stock market, just remember there are very few alternatives because when you are looking at equities and investing in companies that actually pay dividends, that's the best you'll get in an environment where interest rates are at rock bottom levels. if you have money in the bank now in your savings account you aren't making any money on that because rates are close to negative right now. you've got the 10-year at .6% and why you're seeing the rally in stocks because all the money is flowing to yield. people are looking for yield and any kind of return. can't get it in many places these days with interest rates where they are. >> sandra: larry kudlow talked about the economy and the job numbers this morning on "fox & friends." listen.

>> blame them for the virus as if he created it. it wasn't part of his policies, you know, the whole economy is suffering from something he had no control over. i'll just say if the other side wants the talk about the economy, that would be just fine. we inherited the worst, slowest economic recovery since i don't know probably the great depression. >> sandra: you look at the stock market, you look at some of these companies and you said you were interviewing the wal-mart ceo and wow their earnings, you look at their sales jumping 9500% their e-commerce sales. home depot, some of these companies have been doing very well. >> yeah. as i said a minute ago with the 95% increase in e-commerce sales just real owe zeros in on those companies that are able to have adaptability and have that delivery mechanism. if you are able to pivot and actually pivot toward delivery like wal-mart has been able to

do and ramping up its e-commerce site to compete with amazon for several years now having an om any channel where you have lots of different channels for potential revenue you will be able to ride this through. there are many companies that have been unable to pivot toward the delivery mechanism and omni channel like wal-mart. they are one of the winners. overall we saw a very good week in terms of retail. it certainly feels like people are spending money and generating economic growth even though they're still in a shutdown. >> sandra: we'll get to some breaking news in a second. you are talking about growth in the second half of this year and what that might look like. it is interesting. i know a lot of people are thinking this as i ask you about the stock market as so many people ask you all the time. what are you hearing about the sustainability of this rally? i mean, are the fundamentals there to back up what we're seeing as far as a record high for u.s. stocks, maria? >> well, i would say this. when you look at the valuation of the stock market it is still

relatively cheap. it is not necessarily expensive across the board. yes, the indexes are jam-packed with the so-called things like apple, netflix, google. the technology names that are leading things but not broad based. when you look at the broader market you aren't seeing the kind of incredible results that you are from this small component of stocks, the test las of the world. we're seeing money moving into the pharmaceutical sector as they scramble to come up with a vaccine. that created a lot of value as well. i think it is fundamentally sustainable but we're going to need to see the growth on the economy side in order to see it sustain over the long term. >> sandra: we have the breaking news now. see you soon. >> trace: breaking news is concerning steve bannon, president trump's ex political advisor was arrested in

connection with an online fundraising scheme. authorities say bannon was arrested in this connection illegally funding money from the we build the wall fund and we're trying to figure out exactly where that money was going and what the allegations are and what bannon is saying in response. keep in mind we know that steve bannon used to be an investment banker for goldman sachs, also in the military and then he became the political advisor for president trump before going into the media and running breitbart news for a short time. the question now becomes what exactly are the allegations against steve bannon who has been arrested for the online fundraising scheme and who else might have been involved in this and exactly where was the money being funneled? we'll have much more on the breaking news steve bannon arrested next. to fix the economy we have to get control over the virus.

i'm releasing a plan to save lives in the months ahead.

we need to increase federal support for testing, doubling the number of drive-thru testing sites. we absolutely need a clear message from the very top of our federal government that everyone needs to wear a mask in public. every single frontline worker should have the personal protective equipment that they need to be safe. we need to support schools and childcare programs so parents, if and when they can return to work, are confident that their children will be safe and cared for. and finally, we need to protect the populations most at risk: our seniors, vulnerable populations with pre-existing conditions. we need real plans, real guidelines, with uniform nationwide standards. it's a simple proposition folks, we're all in this together. we gotta fight this together. we'll emerge from this stronger because we did it together. i'm joe biden and i approve this message. the freestyle libre 14 managday system...etes can be hard.

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>> trace: back on the breaking news of steve bannon being arrested, trump's ex-political advisor arrested in a connection with a crowd funding scheme called we build the wall. that's what it was known as. it was aimed at raising $25 million for building the southern border wall. the u.s./mexican border wall that steve bannon was a big advocate for. the concept of this is that authorities thought that the $25 million would all be going to the construction efforts to build the wall. well, now they're alleging that hundreds of thousands of dollars at least of that money has been taken now and funneled to fund the lavish lifestyles of those who were associated with the we build the wall effort and have been arrested along with steve bannon. steve bannon arrested with three others. for their roles in defrauding

hundreds of thousands of donors with the online campaign known as we build the wall. bannon was a former investment banker and knows financial sectors very well and in the media and president trump's advisor. it's key because you have these three or four people who have been arrested now and we still haven't heard from the other side as to what they're saying about these allegations that a bunch of this money was funneled to fund these lavish lifestyles. >> sandra: reading directly from the southern district of new york press release. the acting u.s. attorney, this is a direct quote. as alleged the defendants defrauded hundreds of thousands of donors capitalizing on their interest in funding a border wall to raise millions of dollars under the false pretense that all that money would be spent on construction. it goes on. so what we have right now is this press release from the u.s. attorney's office southern

district of new york. we'll likely learn more as this news breaks, trace. >> trace: the inspector in charge phillip bartlett said the defendant's allegedly engaged in fraud when they misrepresented the true use of donated funds. this case should serve as a warning to other fraudsters that no one is above the law, not even a disabled war veteran or a millionaire political strategist. again the allegations are they used this money for funding lavish lifestyles. we haven't heard from any of those suspects, including steve bannon. when we do we will bring that to you live. sandra. >> sandra: we'll take a quick break and we'll be right back. ♪ but come ye back when su-- mom, dad. why's jamie here? it's sunday. sunday sing along. and he helped us get a home and auto bundle. he's been our insurance guy for five years now. he makes us feel like we're worth protecting.

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>> words once came easily. today i struggled but i have not lost my voice. >> we're at a crossroads. we can let this continue or we can act. we can be on the right side of history. we must elect joe biden. >> trace: former congresswoman gabby giffords speaking out without presenting concrete solutions, mo elleithee executive director for the institute of politics and public service and fox news contributor. always good to see you. what do you make of the critics who say the democrats keep focusing on gun control issues and yet they still have not laid out any concrete solutions? >> look, it's a big issue.

it's a big issue in terms of dealing with the rash of gun violence and in terms of politics. and an issue that appeals very well to suburban voters. i'm not surprised that they focused on it last night. it wasn't the only issue they focused on. they did focus on it. i think they have been talking about some specific issues like universal background checks, like a ban on assault-style weapons, and certain clips. and have -- keep running into obstacles from the republicans on the hill. i wouldn't be surprised if you continue to hear about the issue. maybe not during the convention but over the course of the campaign among many other issues they'll be talking about. >> trace: there is this concern that they keep talking about gun violence and yet they are ignoring the violence, mo, happening in the cities across the country. michael goodwin of the "new york post" writes the following

especially these days with murder, violent crime and riots destroying decades of public safety gains in most cities the ideas that dems are anti-gun will strike some voters as more of a problem than a solution. already gun sales are reaching record levels. on that point there hasn't been a single condemnation in any of the convention's three nights of the epidemic of violence. is that a fair point, mo? >> i think democrats have spoken out against the violence in the street. i think, though, what you keep hearing democrats and where i think they're going to take the debate in the fall is more along the lines of dealing with the underlying problems, right? dealing with the fact that there are inequities in terms of access to capital and the economy, and healthcare in our urban centers as well as systemic inequities in how the police deal with certain communities and wrapping that

all in together. so i think that is going to be the approach to how democrats make that case in the fall as opposed to the way the president's campaign is dealing with it. >> trace: apologies for the short amount of time. we had breaking news. >> yeah, thanks. >> sandra: more on the former white house chief strategist to donald trump steve bannon. he and four others have been indicted for illegally funneling money from the border wall fund. in a statement from the department of justice this morning the defendants were arrested this morning. bannon will be presented today in the southern district of new york. we have more on the breaking details as we begin a brand-new hour.

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the open road is open again. and wherever you're headed, choice hotels is there. book direct at choicehotels.com. ♪ >> sandra: more on the breaking news on steve bannon, the former white house chief strategist to donald trump has been arrested. the doj confirming he and four others were arrested this morning for what the department of justice is describing the leaders of we build the wall online fundraising campaign. they have been charged with defrauding hundreds of thousands of donors. he was arrested this morning and be presented today in the southern district of new york. john roberts on that breaking news for us now. john, what are we hearing? >> this is a surprise to say the least. this is again a crowd funding campaign called we build the wall. it was steve bannon along with three other people.

they raised according to the acting u.s. attorney for the southern district of new york some $25 million in online fundraising and according to this complaint, which is also joined by the united states postal inspection service, bannon allegedly funneled more than a million of the $25 million into a nonprofit that was under his name but that according to the complaint was actually used, at least some of the money, to cover steve bannon's personal expenses. something that has been going on for some time online. bannon has stayed in the political realm with the war room podcast that he was hosting on an almost daily basis but also involved in this fundraising effort, which now according to this complaint was criminal in nature in that it

was allegedly defrauding online donors from millions and millions of dollars. at the same time as this news about steve bannon comes out, a judge in new york city has denied an attempt by president trump and his campaign to block a subpoena by cyrus vance junior as he seeks financial information including the president's tax returns in conjunction with an investigation that is underway at least in manhattan district attorney's office investigating payments to stormy daniels, karen mcdougal among other things as well. a loss by president trump on that front and the big loss for steve bannon who will appear in the southern district of new york later on today. you can appreciate getting news of all of this and trying to put together some of the pieces. the big headline steve bannon, former deputy campaign director

of the trump campaign as well as a big figure in the white house in the early days of the trump presidency arrested for allegedly defrauding hundreds of thousands of online donors funneling more than a million dollars to a charity in his name that the u.s. attorney for the southern district of new york says actually went to pay some of bannon's personal expenses. so big news at this hour. >> sandra: that's in the indictment. the indictment says that bannon via the nonprofit took in over a million dollars from the scheme and this is a quote, and at least some of it was used to cover hundreds of thousands of dollars in his personal expenses. any reaction from the white house yet this morning, john? >> nothing on this. it is just breaking at this moment. as you can appreciate what the white house is focused on this morning is responding to the dnc last night and in particular barack obama's speech. the president will be meeting an hour from now in the oval

office with the prime minister of iraq. it is likely the president will get asked about this during that meeting. i'm sure the president will say he knew nothing about it and then this afternoon the president will be in old forge pennsylvania outside of scranton where he will give a campaign speech which is expected to really be scathing in its critique of joe biden. i expect that the president will also respond to what was said at the dnc last night by former president obama, kamala harris, hillary clinton and others. there is a lot on the white house's plate to that. this adds to it. >> trace: there is no inference from anybody or anything that i read concerning anything that the president had to do or knew anything about this. >> no. >> trace: it's interesting because one of the people involved is a purple heart veteran, triple amputee. i remember a little over a year ago there was a controversy. the southern border wall is the

main emphasis of this. they were trying to build the wall. he was saying he would raise a billion dollars and they raised $20 million at that point in time. the people were donating saying where is the wall? what's the proof there? if you ever heard of the white house kind of getting involved in any kind of aspect of this because of the controversy surrounding the funding coming from the military for the border wall. anything on that at all? >> i never heard a connection between the white house and we build the wall. there are allegations contained in this complaint was funneled hundreds of thousands even though stated in the build the wall charter that the veteran would not receive a penny from it. the big controversy at the white house was taking money from the defense construction fund to put it toward the wall and taking money from other places in order to get up to

about $8 billion to fund the wall. but there was never any connection that i heard of between this private fundraising effort and the government effort to build the wall. now, it may be somewhere along the line things crossed and we just don't know about that yet but this does at least on the surface appear to be a separate fundraising entity. now according to the u.s. attorney for the southern district of new york a criminal enterprise. so we'll see what it all goes. >> sandra: that's about all we know at this point, john. we're looking for any reaction from the white house. you had mentioned top of the next hour, john, we will be seeing and potentially hearing more from the president as he has a big meeting coming up. so there is always that possibility that he will take questions from reporters. >> and yes, it is open, the white house pool will being into that meeting. it is expected the president will probably be asked about it and just i expect the president will say that he -- the first he has heard of it and doesn't know anything about the alleged

crimes that were committed here. he might talk about steve bannon because he was an integral part of the white house, a major player here. but he left the white house after being here for not too long period of time compared to other folks. the president, you know, decided he wanted to go a different direction in terms of his top advisors. he will talk about it maybe in those terms. i will say the president will likely say that he doesn't know anything about this. >> sandra: john roberts on the breaking news for us. we'll have more on that coming up. john, thank you. the culmination of a decades-long quest joe biden set to accept the nomination for president as the party closes out its virtual convention. good morning, trace and great to be with you this morning. i'm sandra smith. >> trace: good morning to you as well. i'm trace gallagher. it was one for the history books last night. kamala harris officially accepted the nomination for v.p. becoming the first woman

of color on a major party ticket and she wasted no time in joining other democratic attacks on president trump. >> right now we have a president who turns our tragedies into political weapons. joe will be a president who turns our challenges into purpose. >> sandra: we have team coverage for you this morning. we're on the ground in pennsylvania where the president will be later today. we begin with griff jenkins. he is live in biden's hometown of wilmington, delaware today. what will the history books write about what happened there last evening? >> sandra, the daughter of immigrants who became the party's vice presidential nominee and talked about her personal story and praised the promise of this nation and issued a prosecutor's rebuke of president trump. >> i know a predator when i see

one. donald trump's failure of leadership has cost lives and livelihoods. >> last night seemed a more perfect union. in speech after speak from former secretary hillary clinton to speaker nancy pelosi it was clear that last night was a referendum on the trump administration and the most blistering indictment came from former president obama who unleashed on his successor calling him out by name. watch. >> i did hope for the sake of our country that donald trump might show some interest in taking the job seriously. but he never did. donald trump hasn't grown into the job because he can't. >> at the white house president trump swung right back. >> president trump: when i listen to that and i see the horror that he has left us, the stupidity of the transactions that he made.

look at how bad he was. how ineffective a president he was. >> so a war of words. we'll see if the president has more to say about it when he comes up to pennsylvania, sandra. >> sandra: more history will be made tonight. what's in store and what are the expectations? >> well, we'll find out because joe biden has waited 32 years to give the speech he will give tonight in the building behind me. he will be joined by his family. we expect him to look forward about what he intends to do for the country, not look backward and also see him joined by kamala harris along with senator cory booker, mayor pete buttigieg, keisha lance bottoms and gavin newsom. a final note. it is so surreal being outside this historical building and no political onlookers or anyone selling t-shirts, trinkets or buttons. >> sandra: so different this year. we'll see what the rnc looks

like. griff, thank you. >> for close to four years now he has shown no interest in putting in the work, no interest in finding common ground, no interest in using the awesome power of his office to help anyone but himself and his friends. no interest in treating the presidency as anything but one more reality show that he can use to get the attention he craves. >> sandra: former president barack obama accused trump of treating the presidency like a reality show and whether joe biden will use the same tone in his acceptance speech tonight. senator durbin joins us now. appreciate you coming on the show this morning. what messaging would you like to see from joe biden tonight? >> i think what you will hear from joe biden is pretty obvious. a hopeful view of the future of america that we can build this

country, our economy and conquer this virus in a positive way and move forward. that's what people look for in an election and a campaign. they want a promise to the future. i think that's what joe biden is going to address tonight. >> sandra: there has been a lot of talk about donald trump. you've clearly seen it yourself, you saw it in barack obama's speech last night. a large chunk of his speech was devoted to tearing down and attacking president trump. unprecedented historically to see that happen. is that a good tactic? is that a good strategy for your party to not focus on the candidate, joe biden? >> we have to do both. certainly contrasting what we can offer on the democratic side with the record that we face today is the starting point. the american people are very focused. three out of four in a recent poll said they thought things were going to get worse before they got better and you ask them what's your major concern, it isn't the economy. the first concern is the coronavirus. they realize that this

president from the beginning has told them not to worry about a pandemic which has now taken over 170,000 american lives. somehow it would mysteriously disappear. he rejected the advice and counsel of the medical experts and even got us into a political contest in america whether or not we should wear masks to protect ourselves and others. this is not the kind of thing that -- not the way to deal with a pandemic that is threatening so many lives in america. >> sandra: senator, you are in my home state of illinois and my home city of chicago has seen some turbulent times. it is not over. it is struggling. there hasn't been a lot of talk about that when it comes to democrats at the convention this week. why isn't that being addressed? doesn't that concern you? >> it does concern me and there are ways that the president can help the city of chicago deal with the gun violence that we've seen so often in the streets of chicago and nearby. first we are awash in guns.

we have guns coming in from northwestern indiana, coming in from gun shows by the trunk load into the city of chicago, being handed out to teenagers. use them to shoot innocent people and what are we doing about it? instead of having serious background checks to keep guns out of the hands of convicted felons and mentally unstable the president has done nothing. the republicans sadly in the senate refuse to even take up the issue. that's the starting point. >> sandra: but senator, go ahead. >> jond that -- >> sandra: i had kayleigh mcenany on the white house earlier. sorry about the interruption. we were talking about just that and what they are doing is pointing back to biden under president obama and why more wasn't done on what you are talking about right now in illinois, in chicago, she is pointing to biden's track record, obama's track record. eight years, what did they do? here she is last hour.

>> president obama failed this country. the slowest economic recovery since world war ii which president trump reversed. he talked about saving democracy accept president obama invites president biden subverted democracy. refusing to accept the results of the election, spying on the trump campaign, going after lieutenant general michael flynn. it was appalling what happened under president obama. >> sandra: is it fair to look back and say why wasn't more done then? >> of course she is forgotten the biden obama situation inherited a bad recession. they saved the automobile industry. many republican leaders said do nothing and the longest run of job creation in the modern history of this country. when it comes to spying on the trump campaign, here is what it

boiled down to. the intelligence agencies were monitoring the conversations of the russian ambassador to the united states and when that ambassador engaged with general kelly they picked up on the conversation. there is the spying. it had nothing to do with focusing on kelly, they were focusing on kislyak the ambassadors. when they talked about lifting sanctions on russia that's when the intelligence agency picked up on it. >> sandra: so much to dig into there. with the short time i have he left i want to ask you about your mentioning of the economy. i know it's part of your messaging in your state to get those workers back that went trump in 2016. do you see that happening? is biden doing enough to win their votes? >> i think that biden and harris can win their votes. imagine this if you will. imagine you are one of the 30 million unemployed americans counting on that $600 a week in federal payments that were discontinued at the end of july

and imagine what you have now is an executive order from the president as senator sass said unconstitutional slop in an effort to try to take some action and credit for returning the checks for three weeks. listen, those 30 million unemployed americans need a helping hand. this administration needs to join with the leaders in congress democrats and republicans. mitch mcconnell needs to come to the negotiating table. he has been boycotting these negotiations. he needs to come to them and we need to reach another bipartisan agreement. >> sandra: we're out of time. please come back soon. >> trace: joe biden set to make his acceptance speech tonight at the end of the democratic convention. people have slammed president trump. is that a winning strategy? we'll ask ari fleischer about that and his expectations for the convention's final night next. >> president trump: senator obama did not do a good job. the reason i'm here is because

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>> i never expected my successor would embrace my vision or continue my policies. i did hope for the sake of our country that donald trump might show some interest in taking the job seriously. that he might come to feel the weight of the office and discover some reverence for the democracy that had been placed in his care. but he never did. >> trace: former president obama speaking on historic third night of the democratic national convention as senator kamala harris officially accepted her party's nomination for vice president. the first woman of color to join a major party ticket. the former president delivered what may be his most direct

attack yet on president trump warning that he is a danger to democracy itself. ari fleischer, the former white house press secretary for george w. bush and also a fox news contributor. always great to see you. there is a worry among some democratic analysts that people are not voting, democrats are not voting as much for joe biden as voting against president trump. and then you have the former president last night not really building up joe biden, instead kind of using his time to tear down president trump. your thoughts on that. >> exactly right. look, former president barack obama is back doing what he does best, creating strawmen and attacking people's motives. say what you will about donald trump i don't think anybody can fairly criticize him for not taking the job seriously. might not like the way he is doing the job but he takes the job seriously. he does it differently than barack obama did. and it's just the constant strawman. one thing president trump has

said 100% accurate he wound have been elected if people liked the job barack obama had been doing. >> this is fox news analysis from the first two nights of the convention. we should note that. the speakers reference biden characters 294 times in the first two nights and mention his policies 120 times. they mention president trump's character 96 times. policies 56 times. we're focusing here on the personalities of the candidates versus what they plan to do in the next four years. >> fascinating. fascinating data. i think there are the three ps that are in play right now. people, policy, person. let me explain it. people. how many people are watching the democratic convention? judging by the second night it was a 48% plunge in the number of people who watched on the networks. that's not good. it's the debate of what

happened during the debates. p, policy. what are their policies? this convention has been an attack character convention against donald trump, fair enough that's part of politics but they won't talk policy. the only ones who did were the socialist bernie sanders and alexandria ocasio-cortez. and then personality, person. how is joe biden doing? i can't wait to watch the speech tonight. i think they'll be able to make sure it flows with tell prompters and the little pressure he will come across fine. we still don't know how he will hold up under the duration of the campaign if he really has to campaign and face the rigors of the campaign trail and the rigors of the white house. how is he doing personally? i suspect we have to wait for the debates. >> trace: interesting. yesterday before last night you tweeted the following. anyone notice the two people who have spoken most extensively about policy at the convention were bernie sanders and aoc?

two socialists. biden and his speakers have been mostly silent on policy. the socialists know they're driving the train on policy. you tweeted that before last night. would you change or amend that at all, ari? >> oh no, i would put a dot, dot, dot after it. it will continue. that's why -- look, kamala harris's speech was mostly platitudes. you didn't see much policy in there. i get the political calculation. it's not wrong. you can go after your opponent and go after president trump. the democrats' entire case is to make this election a referendum on donald trump's performance. republican's job and donald trump's job next week is to make it a choice between his policies and joe biden, bernie sanders and aoc's socialism and radicalism and what their plans will do for working class blue collar americans. many leaving the democrats to become republican. democrats want to have the race

on character. trump's job is to make it about policy with a dose of is joe biden okay? which is legitimate given his age. >> trace: big night tonight for joe biden. always good to see you. thank you. >> sandra: fox news alert now. the situation going if bad to worse in california. lightning strikes now igniting new wildfires. an update next.

>> sandra: it is the bottom of the hour. time for some of our top stories this morning. president trump calling for a boycott of goodyear tires after reports that the plant would not allow workers to wear clothing with maga or blue lives matter on it but does along clothing for black lives matter. the statement from good year says -- >> trace: a top critic of vladimir putin is in a coma. press secretary for the man said she believes somebody poisoned his tea yesterday. the kremlin has not commented on the case. >> sandra: a new study finds the odds of catching coronavirus on a plane are relatively small. seven people had the virus in march. only two people near them tested positive. researchers believe the plane's airflow system may have limited

transmission. >> trace: continuing coverage now breaking news. authorities say president trump's ex political advisor steve bannon was arrested in connection with an online fundraising scheme and will appear in the southern district of new york today. let's bring in judge andrew napolitano, fox news senior judicial analyst. great to see you. the context for the audience is a man named brian kolfage the face of we build the wall. kolfage's promise was he would raise $1 billion to raise the southern border wall. he raised $25 million. the people who started donating the money were saying where is the proof? where is the construction? he couldn't provide that and so they complained and my question to you is what does the southern district of new york have right now? you've seen these cases before. what kind of documentation do they need to indict these people? >> good morning, trace, always

a pleasure to be with you. we don't know what the documentation is other than what has been revealed in the indictment. now the indictment was voted by grand jurors sitting in manhattan and it discloses the bank accounts of steve bannon and the others into which the funds were put. so to continue the narrative that you gave, this entity we build the wall promised its donors that not a penny, quote, not a penny, would go into their pockets. so rather than putting the money directly into their pockets, they funneled it to third party charities and those charities paid the money, according to the indictment, to steve bannon and to the others. in bannon's case, the person that is most of interest to our viewers because of his former relationship to the president, in bannon's case the government alleges and the indictment charges him with receipt of

over a million dollars. so there are two charges here. one is wire fraud, obtaining money through email using false pretenses by promising not to pay yourself and paying yourself anyway. and the other is conspiracy to do that. trace, they're facing 20 years each for the money that they paid themselves in defiance of their promises not to do so. >> trace: the allegation as you specified there, judge, is that steve bannon took a million dollars and of that million dollars he used several hundred thousand to cover hundreds of thousands of dollars in his personal expenses to fund a lavish lifestyle. the same accusation against the other people in this thing. taking the money out and funding their own lavish lifestyle. we all know that steve bannon was in politics. when you look back and you see that he was also with goldman sachs, financial advisor and knows the money game very well,

what is steve bannon's defense going to be in a situation like this, judge? >> well, i guess his defense is going to be that even charities are allowed to pay their officials and though the payment was high, a million dollars to steve bannon, if this number is accurate, as compared with $25 million raised, there are other charities who pay that percentage to their leading officers. but the problem that he confronts is the publicity that they issued and the means they used. they had hundreds of thousands of donors who donated this money believing that all of it -- i'm quoting from the indictment -- all of it would go to building the wall and not a penny would go to those who are organizing it. and then the use of the third-party charities to actually pay them, so as to hide the payments from the

donors and presumably from the government, is an effort to cover your trail because they knew they had misled the donors. it doesn't look good for him right now. they've known about the case since october. that's when the government began knocking on their doors. what did they start doing in october? draining their bank accounts so there would be no money there for the government to seize. again, i don't know that this happened. i'm recounting what the indictment alleges. >> trace: we should point out that the complaints from the people who donated this money started in may of 2019. so the ball has been rolling for quite some time. always great perspective, judge. thank you for your insight. good to see you. >> sandra: president trump capping off his week to visit battleground states with a stop near joe biden's birthplace of scranton, pennsylvania today. the president finishing his counter messaging tours just hours before biden accepts the democratic nomination for president.

we're live in old forge, pennsylvania, this morning. what are the expectations for what the president may say? >> good morning. we're expecting a particularly scorching speech against joe biden by president trump here in old forge, pennsylvania. we're less than four miles away from scranton, which is the birthplace of the former vice president and a source telling our john roberts the president will say look, biden left pennsylvania some 70 years ago and will give his campaign speech saying he feels as though biden has ripped off the residents of pennsylvania through 50 years of bad economic policy while he was in washington, d.c. look, for the president his message is for the white blue collar workers in northeastern pennsylvania that propelled him to a win. he will talk a lot about fracking. 600,000 jobs in one estimate of direct and indirect fracking jobs or natural gas jobs in

pennsylvania. he will drive that issue, biden has said he is not for an outright ban of fracking but kamala harris has said she is. expect a lot of talk on that. he will also have a message for the farmers particularly about china and how he will be tough on them. and then also take a look at this map. frankly you can tell how important these rural communities are to president trump. in 2016 he won by just 44,000 votes in pennsylvania and experts say he is going to need those same big margins in rural communities this time around. >> the key for him is not just winning by 30 to 35 points but winning it with the same number of voters as he did four years ago in order to offset which probably be a slightly weaker performance at the very least in those swing counties in northeastern pennsylvania. >> for the biden campaign there have been efforts now to really bring out the black and hispanic vote in the urban centers in the state. the black vote was down in pennsylvania in 2016. a part of that message is all

about the coronavirus pandemic which has disproportionately affected those groups. when you speak to state republicans as we have, they say actually the coronavirus pandemic is something that they feel confident president trump can defend. listen. >> if you look at the states that had the highest unemployment rates and pennsylvania at one time was the number one, it is the democratic governors, their actions, their steps that they took in restricting and limiting businesses and continuing to do so. >> the unemployment rate in pennsylvania 13%. i spoke to the afl-cio president of pennsylvania who says he believes it is really important that biden's campaign is very clear on where they stand on fracking. a lot of jobs depend on it and he thinks they need to be very clear it is a transitional energy, not something they want to get rid of entirely. natural gas very important. >> sandra: we'll see the president later on today. brian, thank you.

>> trace: president trump urging people not to by goodyear tires. his own presidential limo is equipped with goodyear tires and nascar doesn't have any plans to replace them on their trump 2020 car. the controversy and goodyear's response with money man charles payne is next. >> the reason he called for the boycott was over maga. that's unanimous with blue lives matter these days.

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>> president trump: i'm not happy with goodyear. they're playing politics. there is something wrong with the top of goodyear and what the radical left does is they make it impossible for people to do business if they are republican or if they're conservative, they put out all sorts of effort don't shop there. >> sandra: president trump calling for a boycott of

goodyear tires saying don't buy goodyear tires they announced a ban on maga hats. this is what the radical left democrats do. two can play the same game and we have to start playing it down. charles payne is the host of making money. what do you think of all this? >> you know, in this new woke era where these companies, these corporations are being much more aggressive in terms of laying out what their thinking is and goals are with respect to being good to the environment and society i think it proves to be a double edged sword. i personally liked it a lot better when i didn't know too many things about the ceo particularly politically. i like to be able to buy a product and not have to worry if the ceo might be against something i'm strongly for. other people think differently. goodyear tire stock was down 2 1/2%. leveling off today.

the company -- this was a $35 stock now $9.50. they have their own issues. the last thing you have to do is have a swath of people, primary customers thinking that you aren't for them and so they've dug themselves in a major hole right now. remind you of harley davidson. it hasn't worked out well for harley since then. >> sandra: what surfaced was a message to employees that they were not allowed to wear anything maga related or blue lives matter but they were allowed to wear something or talk about black lives matter. that was where the controversy emerged. goodyear has said that message was not part of a diversity training class originally reported. they also put out this statement saying yesterday goodyear became the focus of a conversation that created misconceptions about our policies and company of the goodyear has supported both equality and law enforcement

and will continue to do so. i'll ask you if that puts the issue to rest, charles, but i'll also ask you in the broader context of an election year and how many companies do have to deal with this because there is such a divisive nature to this election. >> well, i think any company out there -- first of all, i don't think it puts to rest. it muddles it more. why couldn't employees leave something that supports the police? black lives matter is tougher. an obvious statement that 99.999% everyone agrees with. it's a political movement that's a little murkier that's more of a marxist leaning break up the family values type of thing. two different things. if you have say you believe black lives matter but also wear one that supports the police as well and why would

management want to make rules about this? the nuance will get more complicated. it is a big issue into this election season. again, i just think these companies particularly those companies built on the hartland of this country have to be careful you don't turn off your core constituents. >> sandra: apple hitting a $2 trillion valuation, all-time high. unbelievable some of the things happening in the stock market. we'll talk about again soon. thank you. >> sounds good. >> trace: we're awaiting the arrival of the iraqi prime minister at the white house today. he will join with president trump in the oval office for a bilateral meeting. so when they got a little surprise... two!? ...they didn't panic. they got a bigger car for their soon-to-be-bigger family. after shopping around for insurance, they called usaa - who helped find the right coverage for them and even some much-needed savings.

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>> trace: senate republicans are now floating a so-called skinny stimulus package that leaves some funding for the postal service but leaves out some things the democrats have demanded. chad, any chance of a deal? >> there has been no talks in days here. that's one thing that's very concerning. republicans feel that they have to try to do something or at least give the appearance that they want to do something. one of the persons pushing this the most is the white house chief of staff mark meadows. >> i think the outlook for a skinny deal is better than it's ever been. we're still not there. let's add in the things we can agree upon. perhaps funding for school, ppp, maybe even the stimulus check although i don't know we could get an agreement on that. >> nothing exists in a vacuum on capitol hill. the talks went dark two weeks ago some lawmakers might try to breathe new life into a

revamped bill. mnuchin spoke with nancy pelosi a week ago yesterday. they're ramping up their attacks on the speaker. >> i have been very frustrated with how political and partisan she has been in the covid relief space where they walked away from three different offers provided by senate republicans. >> here is what the gop plan would do. costs around a trillion dollars, provide $300 of assist answer of people off the job and provide money for schools and testing. knee need democratic votes to move it through the senate and they would need democrats to get the senate back into session. >> trace: the house debate on the postal service bill. will that help this? >> that's a narrow bill just for the postal service. house democrats will tell you they passed a bill on coronavirus back in may. here is tom swazy, a democrat from long island. >> we will vote on saturday to make sure that we are funding

the postal service and then we will challenge and ask our republicans colleague from the u.s. senate to join us. >> most republicans will vote no. there are a double digit number of republicans who will vote yes on saturday. trace. >> we'll see, chad pergram live on capitol hill. >> sandra: fox news alert from the white house. president trump set to welcome the iraqi prime minister a short time from now. the two leaders are expected to talk about the future role of u.s. troops in iraq among other issues and joe biden gearing up for the biggest speech of his life when he accepts the democratic nomination for president. a preview of what to expect top of the brand-new hour coming up. (calm inspirational music)

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visit findingtruepeace.com to find answers. again, that's findingtruepeace.com. (calm inspirational music) >> sandra: fox news alert now on steve bannon's arrest and newly leveled allegations from prosecutors against the one-time top strategist to president trump. bannon is accused of tricking president trump supporters into handing over cash. all of that coming up. welcome to a new hour of "america's newsroom," good thursday morning to you, trace. i'm sandra smith. >> trace: i'm trace gallagher. part of president trump's campaign that electricry filed supporters and got a rally chant build the wall. prosecutors say steve bannon and others took advantage of that excitement by creating a fundraising campaign to help pay for the wall's construction. >> sandra: an indictment said bannon and others used money to

live a lafshish lifestyle. the feds made their move arresting four people in total. >> trace: david lee miller is live in new york city with more on this. david lee. >> this indictment is 23 pages long. in the southern district of new york. it names the former trump advisor steve bannon as well as three other men. they are accused of conspiracy to commit money laundering and conspiracy to commit wire fraud. they allegededly defrauded donors for a crowd funding campaign known as we build the wall. that effort raised more than $25 million. bannon and the three others brian kolfage, them piche' and andrew badolato of florida were taken into custody this morning and each will appear in federal

court today. bannon, through a nonprofit organization that he controlled, received more than $1 million of the donations. some of that money was allegedly used to cover bannon's personal expenses. last august bannon spoke on fox about his efforts to try and build a wall along the mexican border. at that time he said that the portion of the wall he was focusing on was along the el paso sector, the more dangerous part where the wall needs to be built. page 15 of the indictment describes the scheme of the four in some detail. it says and i quote, the defendants repeatedly and intentionally led the public to believe that none of their donations would be used for personal benefit of the defendants. as kolfage noted to badolato in a text message explain. as far as the public knows, no one is getting paid and the salaries will never be disclosed. according to the indictment the

defendants are accused of using fake invoices and accounts to launder the donations. interestingly all four of the defendants were in different parts of the country when they were taken into custody. steve bannon will appear in the southern district of nrk. one will appear in florida and new york and florida. each of them charged with two counts. conspiracy to commit money laundering and conspiracy to commit wire fraud. both of those charges each carries a 20-year sentence. trace. >> trace: david lee miller live in new york. thank you. >> sandra: we're just hours away from the biggest speech of joe biden's political life as he gets ready to accept the democratic party's nomination for president. the culmination of a career in washington spanning nearly half

a century and his speech comes against the back drop of extraordinary times for this country. from the coronavirus pandemic to the economic turmoil to the deadly violence gripping cities across the country. he needs to take that into account with the speech that meets the moment. >> a hopeful view of the future of america that we can build this country, our economy and conquer the virus in a positive way and move forward. that's what people look for in an election. the campaign they want a promise to the future. >> what this president is doing he doesn't hide in basements, he talks to the american people. he has traveled more than 6,000 miles this week. out to pennsylvania today. he looks the american people in the eye. he talks directly to them while democrats have a bunch of politicians lie amongst themselves. >> sandra: we're live in wilmington, delaware this morning. jackie, good morning. >> good morning. despite biden's 48 years in

politics there is very little that can prepare him for this moment accepting the democratic presidential nomination virtually on his third run. remember, biden was born during world war ii. when he was sworn to the senate bill clinton was a law student. barack obama was 11 years old. obama showed last night he knows his way around the camera and can translate that energy on screen. tonight will be a big test for biden. but he is a known quantity and a party elder now trying to unite the progressive and moderate factions of his base and appeal to the other side. dnc programming says he will unleash the same criticism of president trump describing the country under the current administration in a state of chaos and crisis and delivering his vision for the future. so far the dnc lineup has resisted policy talks that would leave an opening of attacks from the trump campaign. warren and biden talked about what's at stake but not how to

remedy it. climate activist, sexual assault survivors and undocumented immigrants sharing their stories. gabby giffords, now a gun control activist being shot in 2011. biden is expected to deliver a clearer picture of policy. big names tonight include four former presidential candidates, senator cory booker, mayor pete buttigieg, andrew yang and michael bloomberg and tammy baldwin and tammy duckworth. biden will probably have a small circle alongside him before he accepts his nomination to a largely empty room with a live audience of only a few dozen members of the press. >> sandra: all eyes on him tonight. jackie heinrich, thank you. >> trace: fox news alert out of the white house. president trump meeting with the iraqi prime minister this hour. we're monitoring this and will play the video when it comes in and later today the president

will give a speech in joe biden's hometown of scranton, pennsylvania. we're now learning the president won't be ulling any punches. >> >> after the meeting with the iraqi president he will issue a scathing critique of the vice president joe biden later this afternoon ahead of biden's acceptance speech. the white house press secretary responded to president obama's torching of her boss. listen to kayleigh mcenany here. >> what we saw from president obama was nothing short of appalling. president obama failed this country. the slowest economic recovery since world war ii which president trump reversed.

he talked about saving democracy except president obama and vice president biden refused to accept the results of the election. >> last night president trump responding to president obama in realtime on twitter. why did he refuse to endorse slow joe until it was all over and then was very late? why did he try to get him not to run? the president added of president obama, he spied on my campaign and got caught. today the president is expected to say that joe biden left scranton 70 years ago and spent the last half century ripping off the residents of pennsylvania with bad policies and trade deals and say biden wants to raise taxes by $4 trillion and biden's support for the green new deal with devastate pennsylvania's energy industry. we also may hear from the president on his take on last night's speeches at the dnc and maybe some reaction to the indictment against steve bannon, his former campaign and white house official because the meeting with the iraqi

president will be open and the president will likely take a few questions. >> trace: the president's appointee for postmaster general testifying tomorrow in front of congress. what do we expect from him? >> likely he will probably get some friendly questions from republicans, probably some tough questions from democrats when he meets with the senators in front of the homeland security and governmental affairs committee. senator chuck schumer of new york, minority leader, sent a letter to dejoy with a series of five questions. senator schumer saying quote there is a lot of mistrust between the american public and the u.s. postal service right now because of statements you and president trump have made about cutbacks in mail delivery during the covid-19 and election day. he sent a letter to the post office board much governors asking for details how dejoy was selected and what role president trump and steve

nufpin played. they wanted dejoy to hear before the senate tomorrow to give him a chance to tell his story. we expect monday he will come under withering attack. 90 democratic house members sent a letter to the u.s. postal office board of governors about his job. he will have a more friendly crowd tomorrow. >> sandra: back to the democratic national convention night four. what joe biden needs to say to convince undecided voters to come on over to their side. kristin soltis anderson is a polster. what does joe biden needs the say tonight? >> he needs to set at ease any voters who may say i'm uneasy with trump, maybe i voted for him last time but not as happy with how things are going but perhaps they worry joe biden is too old for the job of president.

maybe they worry that he is being pulled too far left by some of his advisors and those around him. he needs to set at ease those who might be uneasy about both of the choices they have ahead in november. it really means addressing issues key to working class voerts. a lot of last night at the convention democrats focused on issues like guns and climate change. they are somewhat removed from the economic concerns that drove a lot of voters to switch from being obama supporters in 2012 to being trump supporters in 2016. >> sandra: we asked dick durbin about just that. he said that will be the biggest challenge in his state to try to win those back. meanwhile lara trump works on the trump campaign, daughter-in-law of the president. she is making the case that what they've seen so far at the democratic convention paints a very dark picture of america and that's not going to work. watch. >> so far my assessment of

tonight and of the entire dnc has been a very dismal, dark, depressing vision of america. i wasn't inspired. i didn't feel like anything they did pushed people to vote for joe biden. they are desperately propping him up. >> sandra: to her point, are democrats and those shining stars in their party that they brought up there to speak, have they focused enough on joe biden and what he is telling american voters what he is going to do with the presidency? >> so far most of the speakers who have talked about joe biden have spoken to his character. they've talked about him personally and what characteristics he would bring to the office. less than the policies that he would pursue. otherwise they spend most of their time with criticism of president trump. being less focused on a specific agenda. the criticism they're being too dark it was something that people criticized president trump for four years ago.

the republican convention was pretty dark and dismal saying america is in trouble and only trump can fix it. where the democrats had the optimistic upbeat convention and it didn't read the mood of the room quite right. americans are still feeling things aren't on the right track because of the covid and the economic crisis. maybe a darker tone is where a lot of voters are at but in the end you want someone who can be uplifting. it will come down to joe biden that he can prove to be the one to lead people from the darkness to the light. >> sandra: lindsey graham senator just put out a tweet this morning saying his assessment of what he heard from former president barack obama last night was a downward spiral from hope to hate. that being said symone sanders painting the picture, advisor on the biden campaign what we'll see from joe biden tonight looking forward. here she is. >> this is going to be very forward-looking and going to be

about joe biden's plan for america. really speaks to this moment we're in but also how we can go forward. >> sandra: sets expectations high. final thoughts. >> it certainly sets expectations high. i think the expectations are fairly high. the biggest speech of joe biden's political career and he has been very absent and invisible over the last few months during covid. this is a big moment for voters to say i haven't heard from him. what does he stand for? he has to answer that question tonight. >> sandra: it's always great to have you. thank you. >> trace: a mob ram pages through some big chain stores. trashing the place. the message that rioters left for police and for founder of amazon. plus back to school time looking very different this year with last-minute changes due to the pandemic.

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>> sandra: brand-new video of protests that turned violent in new york city over the weekend. that happening in the williamsburg neighborhood in brooklyn. members of antifa on a rampage trashing a whole foods and apple store there. they also vandalized buildings tagging one with the message murder bezos, a reference to the billionaire founder of amazon. >> there is a now-to video for hackers looking for get money from atms. a flaw in the system that allow us people to use pre-paid debit cards to withdraw more money than is what on the card. police swarmed a bank in staten island, new york looking for two scammers. >> sandra: defunding first responders. the plan in new york has a

paramedic union chief said people will die. deblasio said budget cuts in october would force the city to lay off hundreds of emts and paramedics. it needs financial aid to keep the force at current levels. it could cost the jobs of nearly 400 first line workers. the warning of budget cuts coming as the "new york post" reports on major spending at the mayor's mansion. bill deblasio's wife oversees a staff of 14 employees costing some $2 million. among the staffers the post reports a speech writer making more than 100,000 dollars. public relations advisor who makes the same and a videographer. >> trace: a texas area plastics plant is still on fire started by a falling power line. there are no reports of injuries, no evacuations have

been ordered. the grand prairie assistant fire chief believes this will be burning until maybe late this evening. michigan reportedly reaching a $600 million settlement for victims of the flint water crisis. residents were exposed to toxic heavy metals in the drinking water. 80% of the settlement will go toward -- [inaudible] >> sandra: back to school or not? classes canceled for most of the week in an arizona school district after too many teachers called out sick. in-person learning was supposed to begin monday but that did not happen after many teachers revolted staging a sick-out. the school district began virtual classes this morning. the students could head back to school at the end of the month. >> trace: thousands of students are returning to colleges on the east coast.

schools are now grappling with how to handle the new normal. molly line live in boston. colleges face big challenges in the effort to prevent covid-19 outbreaks, right? >> this week unc chapel hill had a spike in covid-19 cases and now a group of students from the university of connecticut have been kicked out of on-campus housing because of a crowded dorm room party. ominous sign. the transmission rate in massachusetts is the lowest in the country. the greater boston area has more than 100 colleges and universities raising fears that tens of thousands of arriving students will bring a new surge of cases. >> my concern is all these students coming from these states, red states that are high coronavirus right now and we're hoping that students quarantine. >> they demand all travelers from outside a specific list of states quarantine for two weeks

or negative covid test. experts say compliance is vital to containing the spread. >> if students are going to return it is essential that the governor's order around quarantine and testing be followed and that the test results come back within 24 hours. >> to meet that ambitious target boston university set up its own lab. >> we have the best test it's in-house. the results will be turned around quickly. >> when a bu student schedules testing to wear masks, report symptoms and abide by quarantine rules. but other universities are asking students to agree to really unprecedented things like waivers or risk acknowledgement forms. a whole new world out there, trace. new normal for college universities and students. >> trace: molly, thank you. >> sandra: happening moments ago. the prime minister of iraq arriving at the white house.

the brief entry and the president greeted him there ahead of an oval office meeting happening now. reporters were just allowed into that meeting and we'll bring you the president's comments as soon as they come in. we'll watch that. vladimir putin's critic is on life support. while they think he was possibly poisoned. steve bannon arrested with online fundraising scheme. trey gowdy will be here to react to that.

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♪and they're always glad you came♪ ♪you want to be where you can see♪ ♪the troubles are all the same♪ ♪you want to be where everybody knows your name♪ applebee's. all your favorite burgers, all just $8.99. now that's eating good in the neighborhood. >> sandra: this morning steve bannon has been arrested and charged with fraud in a border wall campaign in an indictment it says bannon, nonprofit took over a million dollars from the scheme and quote at least some of it was used to cover hundreds of thousands of dollars in his personal expenses. as we've been telling you, the president is inside the white house in the oval office meeting with the iraqi prime minister and he just commented on steve bannon's arrest said and he feels very badly.

we are going to have that tape play back for you shortly. kayleigh mcenany, the president's press secretary also put out a statement saying the president has no involvement in this project and felt it was only being done in order to showboat and perhaps raise funds. she attached a july 12th, 2020 remark from the president showing his disagreement with that and she also said that the president has always felt the wall must be a government project and it is too big and too complex to be handled privately. she said president trump has not been involved with steve bannon since the campaign and the early part of the administration and he does not know the people involved with this project. steve bannon was arrested along with three others in connection with those charges. we'll have more on this coming up and the president's comments inside the oval office for you. when we have those, we'll play them for you. >> trace: continuing coverage of breaking news, bring in trey gowdy, former prosecutor and fox news contributor and author of the new book "doesn't hurt

the ask." the allegation here staying on the steve bannon allegations. the allegation here is that they ran this money through a shell company and i'm quoting here from the document it says they did so by using fake invoices and a sham vendor arrangements among other ways to insure that brian kolfage noted in a text message that his pay arrangement remained confidential and kept on a need to know basis. they had other text messages that apparently said that kolfage went on to say salaries will never be disclosed. i'm not a lawyer. i know enough to know when the feds have your text messages it's a bad thing. >> trace, let's make sure your viewers know who steve bannon is. the same guy who claimed credit for the president's victory. then wrote a book and said zero chance the president didn't

know about the trump power meeting. he backed roy moore. that's steve bannon. having said that i'm not one who wants to burn the justice system down. we have a presumption of innocence. the indictment is a formal charge, not evidence. what you just laid out what the southern district just laid out is a classic fraud scheme. >> trace: it's interesting. i want to play this sound bite from 2019. steve bannon talking about the we build the wall program and i'll get your thoughts on the other side. >> we built the wall down in el paso sector in the most dangerous part. really going up the side of a mountain. we have stopped the incursions 100% since we built the wall. >> trace: we do stories all the time about the crowd money funding and distributed the wrong way and they say those were administrative costs.

that will probably be an excuse here, congressman. you know, they said again and again that not a penny of this money would ever go to anything except for building the wall. >> they said that and also what kind of personal expenses? are all of the expenses related to his role in this fund or is he buying suits? he is paying his utility bills? it depends on -- even if you can spend the money. people in congress campaign money you can use it for certain things but you can't use it for other things. so look, he has been indicted. that's the first step. let's see what a jury of 12 does with it. >> trace: exactly right. i want to move to politics if i can. the theme here as you watch this convention which i'm sure you have, the theme seems to be that if we can just get president trump out of office the riots and the murders and other lawlessness around the country will end and the quote here is from a real clear

politics op-ed are voters expected to believe that a handful of nuts is the reason homicides have spiked by 24% in the 50 largest cities or the same tiny group of tireless and omnipotent agitators is the reason twitter has become the gill owe teen of today's revolution? >> they're having to figure out are they trying to convert old trump voters or trying to reenergize the obama coalition that got him elected twice? i don't hear that much moderate coming out of this convention. redistributing wealth is not moderate. equivocating between violent protestors and the cops, that is not moderate. telling folks that you are going to have to power your house with a windmill in the backyard, that's not moderate. so it's a very -- this is the part i don't get. you say the president is racist

and misogynist and narcissist. how do you say that about him without also including the millions of people who support him? you can't have it both ways. you can't say he is terrible but oh by the way we want his supporters to come around to our way of thinking. i think his supporters are too smart for that. >> trace: dismissing after the country and asking for their vote estimate. trey gowdy, good to see you. thank you. >> thank you. >> sandra: the army is now investigating two soldiers who appeared in a video during the democratic national convention. it was shown during the roll call vote. the soldiers were standing -- as you can see they're standing in this dnc video here. pentagon officials say wearing a uniform to a partisan political event is prohibited. this year's democratic convention feels different and not just because everything is virtual. a celebratory conventions that we've seen in the past have been replaced now with somber

warnings and speeches critical of the trump presidency. an article in the national journal comparing this message to 2016. both are hoping for anti-trump animus instead of making promises to democratic voters. richard fowler is a fox news contributor. i was looking forward to asking you about this. how do you think this convention has gone for your party so far? >> thanks for having me, sandra. let's acknowledge the truth, right? we wish we were all in milwaukee covering the convention. sadly this is an unconventional convention and i think what we can say is this. this convention is going very well given the circumstances and what the party is tried to do and done very well tried to incorporate the voices of everyday people. some of those people are a nurse in connecticut, right, who works during the covid-19 outbreak in his state and caught it. the other was a young girl who

had a book club and put it online so other young girls could read books with her. so they're trying to incorporate real americans with real struggles and trying to make it clear they're the party that stands up for these americans and sees these americans eye-to-eye and wants the talk to them about the issues facing them. >> sandra: important to point out that there has been a lot of celebrities that appeared throughout the convention as well to which the convention received some criticism for. richard, what is the message? in a lot of the analysis so far of this convention, it has been we're hearing a lot about donald trump, not a lot about joe biden. here is barack obama last night. listen. >> i did hope for the sake of our country that donald trump might show some interest in taking the job seriously. that he might come to feel the weight of the office and discover some reverence for the

democracy that has been placed in his care. but he never did. >> sandra: was it a lost opportunity to get joe biden's message out there and for barack obama to throw his full support publicly for this candidate? >> well, one, i think the president did that throughout his speech when he talked about joe biden being the last person in the room before he made major decisions. number two, i think we'll hear joe biden talk about what he will do for the american people himself tonight. but number three and more importantly i got a chance to talk to my mom as you know a retired nurse about how she felt around this convention and what i heard from her was very telling. she is somebody who lost a number of co-workers including a doctor, ob/gyn who lost his life fighting covid-19. he says what we feel as healthcare workers we feel

forgotten and like nobody has heard us. how could you want to reopen the country so quickly understanding the impact covid-19 has already had on healthcare workers? the democratic party is trying to speak to my mom, nurses, doctors, families across the country when in contrast you have a president who says everything is fine, we should reopen, amazing texting. when we know the reality is there are hot spots across the country. >> sandra: here is your opportunity then hi to mom, thank you for her service. what is your party's message to her? what is your plan? what is joe biden going to do for her? >> that's a great question. number one, we need to reimagine healthcare. i'm not saying we need socialized medicine. i'm saying every american can agree we need a healthcare system that can take care of at least 1% of our population without being overburdened. something the democratic will do. we need to look out for small

businesses, last night we heard from a young african-american small business owner saying she felt alone. we need to make sure no small business owner never feels alone. the third thing we have to do is across this country there are so many families that can't afford rent, that can't afford to pay their mortgage and it is time that congress does something about it. they bailed out the airline industry, they bailed out multiple big businesses. now it's time to bail out the american people who are suffering because of this global pandemic and we just want to get that done. this should be a democrat or republican issue. it is an american issue. 30,000 million unemployed americans. >> sandra: hard to finger point one direction there. richard, appreciate you coming on. thank you. >> trace: the united states is looking to renew its pressure campaign on iran. why the trump administration is now calling for a snapback of sanctions against the regime. plus what kind of impact might

congresswoman alexandria ocasio-cortez and the socialist ideology have on the election in november. dana perino joins us with her take next. our agents helped make saving on insurance easy usaa. what you're made of, we're made for. usaa

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no appraisal. and no out of pocket costs. nobody works harder for veterans than my team at newday usa. >> trace: turns out it's pretty stressful being a blood thirsty dictator. kim jong-un is easing up some of his powers. south korea spy agency reports he transferred some power to his sister, it comes as the north faces economic disaster and shortages of food. meantime the united states is taking aim at iran's economy looking to slap that country with crippling sanctions. secretary mike pompeo is headed to the united states in new york to demand a snapback to the economic punishments that were in place before the nuclear deal president obama signed. president trump took the u.s. out of that deal. >> sandra: at least 23 major

wildfires still burning in california. they are being fueled by the extreme heat there. more than 100 structures now destroyed in wine country. that is double the amount from yesterday. in the san francisco bay area ashes and smoke are coming down on many of the streets there. even as the fire is several miles away. the national weather service says the air quality will be very poor for the foreseeable future. now to the midwest. thousands still have no power after a series of powerful wind and rainstorms there. at points they brought up to 90 mile-an-hour winds and caused extensive damage from south dakota to ohio and lasted for 14 hours and covered over 700 miles. >> trace: we have 40 seconds waiting for tape playback. the president met with the iraqi prime minister a short time ago in the white house and also handled a couple of questions and he is going -- we'll play that back for you right now. one of the big things

transpiring this morning was the steve bannon has been indicted for apparently misusing funds for the we build the wall crowd raising thing, about $25 million was raised. the act -- accusation is that steve bannon took a million dollars of that and put into his own -- >> what is the reaction to the indictment of steve bannon? >> president trump: i feel very badly. i haven't been dealing with him for a long period of time as most of the people in the room noe. he was involved in our campaign. he worked for a lot of companies but he was involved likewise in our campaign. and for a small part of the administration, very early on. haven't been dealing with him at all. i know nothing about the project other than i didn't like when i read about it, i didn't like it. i said this is for government, this isn't for private people. it sounded to me like showboating. i think i let my opinion be

very strongly stated at the time i didn't like it. it was showboating and maybe looking for funds. you'll have to see what happens. i think it's a very sad thing for mr. bannon. i think it's surprising. but this was something as you know just by reading social media and by reading whatever it is and by speaking to mike and mike and all of them i didn't like that project. i thought it was a project that was being done for showboating reasons. i don't know that he was in charge. i didn't know any of the other people, either. but it's sad. it's very sad. >> roger stone, michael flynn, rick gates, paul man fort, michael cowan. what does it say about your judgment and the culture of lawlessness of people involved. >> the obama administration they spied on our campaign illegally and if you look at all of the things and all of the scandals they had. they had tremendous lawlessness. i know nothing about. i was not involved in the

project. i have no idea who was. i didn't know the three people that were talked about, they were people that i did not know. i don't believe i ever met them. i don't think that should be a privately financed wall. it's too complex and too big. we're now up to 300 miles almost. in another week and a half we'll be up to 300 miles of wall at the highest level. they were even having construction problems. i was reading the little i know about it i got from you. i was reading they were having construction problems with the wall that -- they had a small area to show people they could build a wall and they were having a lot of problems where it was toppling over and other things. i didn't like it because i didn't want to be associated with that. we built a very powerful wall. it was a wall that is virtually impossible to get through. it is very, very tough. it is very strong and it is everything the border patrol wanted and i didn't want to have a wall that was going to be an inferior wall. i felt this was going to be an

inferior wall. i didn't know that. i didn't know about bannon as involvement but i didn't know the other people and -- but i do think it's a sad event. again, steve has had a great career goldman sachs, had a career with a lot of other people. i haven't dealt with him at all over years now, literally years. and i guess this was a project he was involved in. it was something that the fact you can see i made statements about it a long time ago. something that i very much felt was inappropriate to be doing. [inaudible question] >> president trump: go ahead. >> mr. president, the end of the mission of iraq is one of the very important issues that divides the country in iraq. >> you are hard to understand. try it again.

[inaudible question] >> the united states helped iraq enormously in defeating isis and also in toppling hussein regime. we're working on building a strong relationship based on joint interests between iraq and the united states. it is based on economic interests for the better future of the iraqi people and the united states people. >> president trump: when we came into office, isis was running rampant all over iraq and syria. and we knocked out the 100% of

the isis caliphate. the obama administration did a very poor job. they were running rampant all over. we came in and did a real job and got rid of that. that was a good thing. now we're working with iraq. they use the great american dollar, the most powerful suren see in the world and they are starting to do well. and we are with them and this gentleman in particular we've developed a very good relationship and hopefully it is going to be very strong for your country. >> there have been certain attacks in the last 10 months on u.s. interests in iraq particularly in the green zone and u.s. military bases. how will you help iraq to hold these attacks by pro-iranian militia and hold these people accountable? if i may also there was some reporting u.s. troops would

withdraw from iraq totally. >> president trump: at some point we will be gone. we deal when there are attacks. we take care of those attacks and take care of them very easily. nobody has the weapons we have and nobody has anything of what we have. we have the finest, the greatest military in the world. when somebody hits us, we hit back harder than they hit us. we handle it. in addition to that iraq has been very helpful where necessary. but we have been taking our troops out of iraq fairly rapidly and we look forward to the day when we don't have to be there and hopefully iraq can live their own lives and they can defend themselves, which they've been doing long before we got involved. yes, please. >> about the bounties. you say we hit back hard. we haven't seen any definitive strikes back or bounties upon americans. >> president trump: you don't know about the bounties.

you don't know very much about it. if we found out that would be true, that would be a very -- it would be a fact what you just said we would hit them so hard your head would spin. >> how do you see the role of the kurds in iraq and how is important relationship between -- >> president trump: the kurds helped us greatly in defeating isis and getting 100% of the isis caliphate. we have a good relationship with the kurds and treated them very well. >> the end of the militia role in iraq it is very important for the country. how can america help ending the militia role and how can you help iraq in the democratic process? >> president trump: what we're doing is helping where we can. but again it's a country, a separate country. they have a prime minister and they have people in office and they have to run their country. we've been in iraq for a long

time. i won't say whether or not i said we should be there but frankly i didn't think it was a good idea. i was a civilian. who is going to listen to me. i made my point pretty clear. i guess as clear as a civilian can do it. but we were there and now we're getting out. we'll be leaving shortly and the relationship is very good. we're making very big oil deals. oil companies are making massive deals and that's basically the story. we're very happy with the relationship that we've developed over the last couple of years. i thought before that frankly the united states was being taken advantage of. but we're going to be leaving and hopefully we'll be leaving a country that can defend itself. >> mr. president on the -- mr. president -- >> there were air strikes of northern iraq killing one civilian. i know in your meetings here you talk a lot about the

sovereignty of iraq. is that something you are looking for help from the united states and mr. president, is that something iraq is asking for help in terms of the interference from their neighbors, but other neighbors where they are attacking northern iraq? >> president trump: they have to make a specific request. the prime minister has my ear. if he does that we'll take a look. they do have i would say very unstable part of the world and i'm not talking about iraq, i'm talking about the whole of the middle east. it is a very, very unstable part of the world but we are there to help and because of the relationship we would certainly be willing to lend you the kind of support that you need. [speaking foreign language]

>> definitely the turkish attacks are not accepted. on the other hand the iraqi constitution also does not allow iraq to become used to attack any neighboring country. we are entering dialogue with turkey to rectify this situation and i look forward to solving this problem with turkey and getting our -- enable the turks to understand iraq's circumstances. the iraqi constitution does not allow iraqi territory to be used to attack any neighboring country. >> president trump: i will say the united states and me in particular has a good relationship with turkey and president erdogan and we'll be talking to him. we have a very good relationship with turkey and

with president erdogan. >> follow-up on the question, sir, do you have a time frame for the full and complete withdrawal of u.s. troops from iraq? >> president trump: mike, what would you say to that? >> as soon as we can complete the mission. the president has made very clear he wants to get our forces down to the lowest level as quickly as we can. we're working with iraqis to achieve that. >> president trump: they're at the lowest level now, jeff. lowest level in afghanistan we've been in many years. down to 4,000 troops in afghanistan and that will be when? >> a couple months. >> president trump: within a couple months. as you know in syria we're down to almost nothing except we kept the oil. but we'll work out some kind of deal with the kurds on that. but we left. we kept the oil and we left the border. we said turkey and syria can take care of their own border. we don't have to do it. it worked out very well. i remember when i did that i was scorned by everybody. they said this is terrible, i

did it. now two years ago. we did it with mike pence went over and met with the various parties and very successfully and we removed our troops. nobody was killed, nobody. now they protect their own border like they have been for hundreds of years and we've left. but we did keep a small force and we kept the oil and we'll make a determination on that oil soon. >> a domestic question, sir. the case about your taxes has now ruled that you need to turn over your taxes. do you have a reaction to that? >> president trump: the supreme court said if it's a fishing expedition you don't have to do it. it's a fishing expedition. more importantly, this is a continuation of the witch hunt. the greatest witch hunt in history. there's never been anything like it. where people want to examine every deal you've ever done to see if they can find there's a comma out of place. the supreme court shouldn't have

allowed this to happen. no president has had to go through this. with the supreme court did do is say, if it's a fishing expedition, my interpretation is essential you don't have to do . we will probably end up back in the supreme court. this is just a continuation of the most hideous witch hunt in the history of our country. we beat mueller, we wanted every level in washington, in d.c., we wanted every level. now what they do is send into new york. we want an all democrat state, all democrats, and descended into new york. this should never be allowed to happen to another president. this is a continuation of the most disgusting witch hunt in the history of our country. all it is. the supreme court said fishing expedition. this is the ultimate fishing expedition. nobody has anything. we don't do things wrong. but they will say, "let's go and