Transcripts For FBC Cavuto Coast To Coast 20170811

Now. On these talks, senior diplomat, rick, somebody speaking on the north korean side, back channel talks they tell us continue to take place. Surprising encouraging anything we should take away from that. It is not surprising. It is encouraging. Weve had sixparty tax going on a long time. Weve been trying to talk to the North Koreans. I think the bigger diplomatic talks are with china. They hold all the keys. Were making progress although there needs to be more action. One of the problems, connell, the chinese who are supposed to implement past sanctions and new sanctions, they havent done a good job of implementing those sanctions even though they raise their hand inside of the Security Council to go along with that we need to pressure china and watch. With have the program, the psi, which is in japan, south korea and United States and others. We watch all of the ships and flights going in and out of north korea. We have stop. We have authority through the Security Council, stop, board those. That needs to be aggressive right now. We have to shut down any trade that violates the u. N. Sanctions. Really important. Connell to follow up on those points in couple different ways, with china, you mentioned the word trade there. You talk about violation of the u. N. Security councils. I wonder how important using trade, carrotandstick approach, something the president mentioned in the past seems to have gotten away from this particular conflict. Can that be effective with the chinese . How can we put pressure on them . It is such a good question. I think it goes to the heart what really the solution is. In the past we made moral arguments with countries like china and russia. Follow the sanctions and do this because it is the right thing to do. President how many however said something differently, showed us he is willing to mix trade policy with foreign policy. He told the chinese specifically early on this year that if irwilling to help us on north korea you will get a better trade policy. Intermingling those policies is exactly what diplomats want to see because we bring all of the tools from the u. S. Government into the debate, and into the negotiations. So im hopeful that we have commerce, agriculture, energy, all of the departments within the u. S. Government who have power, bilaterally with china, are pressuring china. Connell i would think, correct me if im wrong, i would think the chinese need to believe the president is serious about military action if theyre going to move, no matter what we say about trade. Do you think xi xinping thinks donald trump is serious about reacting or preemptively reacting with north korea . I think so. What you hit on a military threat and a credible military threat. It is very hard for diplomats to sit at table trying to negotiate a settlement without behind us a credible threat of military action. What donald trump is giving us is a very credible threat. We see what happened in syria and afghanistan. Make no mistake, japan and south korea, our allies, know when donald trump says we will react, we will protect, they know that is a good thing. The chinese also know that. Connell on the issue of preemption i think it is interesting we have expert after expert come in here this week, not everybody, but i think a lot of coming in saying there is part of that that isnt so viable in their view because you would have to put up with so many civilian deaths in places like south korea and potentially in japan the threat is credible with that. Diplomats like me trying to solve this without military action. Diplomats around the world need to be in per one issue needs to be north korea. Pressuring companies in the middle east and africa to stop doing trade with north korea. We have to implement sanctions. I want diplomats going up to the very enand never stopping. The president and nsc decide to transfer the case with the pentagon. Connell were heading into a weaken that could be quite tense. This week has been quite tense. We you think there is deadline, art firm, next tuesday, the 15th, mentioned as possible attack on guam or message to guam, put it by the North Koreans. What is your sense you think will happen . No hose. I think we still have room for diplomacy. What i would like to see us to watch very closely if the chinese stop doing trade, if they shut it down, if were getting action. If were not getting action by end of this weekend from china, serious action, i think we should go back to the u. N. , try for Oil Sanctions. We should bilaterally, unilaterally implement banking sanctions. I know that is painful for the Financial Community and for people who shop and buy chinese products, the price will go up. But i think it is too serious to not. Connell banking sanctions unilaterally. Connell from the u. S. Against, that would be, how would that work . Well look, again i dont want to be too flippant here, it is not without pain but it is serious enough situation where i think we say to china, either you have access to the u. S. Banking system, either youre going to work with us, or youre going to work with north korea. We want to see you shut it down immediately. The chinese really do have power. We have power with the chinese. We havent implemented the serious Oil Sanctions at the u. N. The chinese tossed them out of the u. N. Resolution. Connell right. This last go round. They didnt want to see the Oil Sanctions. I believe we should have stuck them in there. We should have negotiated harder to have Oil Sanctions there. Since we dont have them, lets give the chinese a little more time to see if theyre acting. If theyre not acting fast in this situation, then i think we should implement banking sanctions, call another Security Council meeting and try for Oil Sanctions. Connell youre right, that would be serious but these are serious times. Ric, thanks for starting us off. We always appreciate your expertise, ric grenell. China, lets talk more about this is a Tipping Point been reached or is china tipping its hand . There is oped in staterun newspaper that china should stay neutral if north korea would fire first. But then it goes on to say if u. S. And south korea carry out strikes and three to overthrow the north korean regime, change the political pattern of the korean peninsula, china will prevent them from doing so. We have a retired fourstar navy admiral robert matter is next. The idea that chinese would get involved if we fired first. What do you make of that . The United States has been consistent that well explore and exhaust all diplomatic effort first. I would not anticipate the United States initiating military action unilaterally. Connell so your interpretation of everything that President Trump has said so far this week, obviously some has been very aggressive from fire and fury on to the tweets this morning to the comments in new jersey yesterday, everything is a reaction to the North Koreans doing something first and if so, what is that something . Whats the line . Is it an actual attack on a u. S. Territory or is firing a missile near a territory like guam enough to it elicit the reaction . Well i think it would be military action. The definition of that is pretty broad these days. Connell yeah. If one fires a missile at a u. S. Territory without us waiting to see if it is going to hit or not and we have to take defensive actions on our own, in my view that is military action on the part of north korea. Connell from what i understand, again im sure you know more, when a missile is fired we can pretty much tell with our technology where it is headed . So if we can estimate that and we can tell it is 20 miles outside of guam, which is what the North Koreans have been speculating about, is that enough . Is that the red line . I wasnt clear yesterday, i think a lot of people werent clear exactly what the president meant . I dont want to get into a fine definition after fine red line. Connell okay. I think there has been enough talk about red lines over the last 10 years or so. The reality is that this country and certainly our military want to exhaust allp diplomatic efforts to resolve this issue without using military force. Connell maybe you heard part of our previous conversation which kind of was related to this in terms of the u. S. Trying its best to pressure china. Do you think that will work . If so, what do you think is the best way to do it . Is it additional sanctions . Is it hitting them with trade or carrotandstick approach with trade . How do we put pressure on china to play a bigger role, more effective role . I think the real secret here is not trying to put pressure on china, point out to china this is in their interests. Reality if you take this thing to the final step, if we allow north korea to have Nuclear Weapons, if you were japan wouldnt you want Nuclear Weapons . What about south korea . Those steps would not be in chinas interests either. So there are very significant vested interests on the part of the chinese. I think the emphasis should be on a diplomatic solution on this very difficult situation. Connell i will ask the final question i asked ric, how do you think this plays out, what do you see happening this weekend . Well the way i see this thing hopefully resolving itself is for the chinese to Talk Straight with north korea, and trying to get this thing resolved diplomatically. That is in everyones interests and i would argue it is in north koreas interests. Connell admiral matter, thank you, sir. China seems to be a key player in all of this. With the markets weve been talking all week if anything were seeing a little bit of a bounce today which is interesting. The markets this week, are to the downside. Those are the overall numbers that youre looking at. Today, were buying the dip a bit. So well see what that means, coming up. Also, straight ahead, are senator mcconnells days leader in the senate numbered . President trump getting tough. Other republicans falling suit. The fallout there as the feud heats up after this. Its time to rethink whats possible. Rethink the experience. Rethink your allergy pills. Flonase sensimist allergy relief uses unique Mistpro Technology and helps block 6 key inflammatory substances with a gentle mist. Most allergy pills only block one. And 6 is greater than one. Rethink your allergy relief. Flonase sensimist. The dinosaurs extinction. Got you outnumbered. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Find your awesome with the Xfinity Stream app. Included with xfinity tv. More to stream to every screen. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Connell to the other big story of the book, another warning shot fired by President Trump at the Senate Majority leader Mitch Mcconnell, fellow republican, leaving the door open whether he maybe should step down, when he was asked about it yesterday. So where we are on all of this, from politico is with us. America rising pac, executive director alex smith is with us, independent womens forum senior policy with us patrice luca is with us. Let me start with rachel on this. Can you explain, is there any scenario you see all of this makes sense from President Trumps point of view politically, the back and forth within his own party with the majority leader . I would say the general consensus coming from the hill they say no, they feel trump is shooting himself in the foot on this. On one hand he is frustrated, a lot of republicans are across the country are furious at senate pubs failing to live up to the sevenyear Campaign Promise to repeal obamacare. On the other hand strategically if trump has to get his agenda done he needs to get it through congress and that relationship exactly. Connell patrice, what rachelle says he is shooting him is in the foot. President is hurting himself depends where you check on twitter, but where is your opinion on this. His base supporters will continue to support him. Americans asking for repeal and replace, yeah he is holding feet to fire of members of congress who dont have enough skin in the game. I think he tweeted about kind of ending the congressional exemption and insuring that congress and their staff actually, who have obamacare have to feel the same pain that regular americans who do have obamacare feel. Connell right. So he is just trying to exert himself or assert himself as the leader of the Republican Party and the conservative movement. Connell if you think about it, in a lot of ways could you argue that both of are you are right. We see it all the time, people tweeting, we cant stand Mitch Mcconnell. Cant stand paul ryan, you get them, President Trump but to the first point made by rachel, alex, he does need Mitch Mcconnell to get something done. Which outweighs the other in the way this all plays out . I think it is important to maintain some perspective here. It is august recess. Not a lot of other things are going on other than north korea. This is the big political story to talk about, come september this isnt what well be talking about mainly because the president and Mitch Mcconnell arent that far apart. They both want a pass obamacare replace and repeal. They want to accomplish tax reform. They want to get to infrastructure. Theyre really not that far apart. I think what is bigger story here, and what this is all papering over is the fact that there are 46 democratic senators, 10 whom come from states that donald trump won, five of which by double digits, that refuse to come to the table. Theyre going home during this august recess. Theyre talking the talk. Theyre saying theyre looking forward to working with President Trump. That they really do want to get to the table, yet theyre voting in lockstep with chuck schumer. Connell right. That is the real intransigence. Connell you think the president can work with mcconnell . That is your point, they can Work Together to get stuff through . Absolutely. Connell patrice, do you agree with that or these guys not like each other period . I agree with alex. This is a pretty tough time, im sure the president is upset or disappointed that congress is out on august recess they said they would stay in for a little bit longer, gaveled out early, considering list of things that needs to get done is so high. Let me add to the list, we still have a budget that needs to be passed and debt ceiling. Connell the budget is almost a precursor, get that, avoid a government shut down, otherwise we dont get to tax reform what most of our views tell us they want to see. That still seems like really bigtime long shot, unless you disagree i dont know. Way i see it a bigtime long shot to get done by end of this year, at best next year early on taxes. What do you think . I tax reform is republicans redemption after failing to repeal obamacare. The reason why you see this back and forth, should trump put pressure on senate or move on to work with him on tax reform, focus on that, i think effectiveness of this machiavellian approach he has taken to the hill to exert pressure on them is fading a little bit, right . He did this in the house. I think one reason why the house actually got its Obamacare Repeal and replacement done is because of trumps pressure. Were talking about the senate. They are way more independent. They dont like to be pressured. They dont like to feel theyre being bullied. Connell he doesnt like it, being mcconnell, he doesnt like it, what would he say . He is ready to move on to tax reform. They tried a whole bunch of different things. Only thing they can agree on they dont like obamacare. They cant figure out how to replace this thing. If you talk to mcconnell and put that aside and work on tax reform. Connell does that hurt the president , on tax reform, if he gets done, i will really like him. If he get this is done, he is my guy. Tax reform would be huge. There would be no, a lot of the bad feelings in the Republican Party right now, you know against each other, this inner party war would evaporate if they get tax reform done. That would be huge. Connell i know it is looking backward, alex, maybe they should have started with that, maybe if they passed a tax cut or tax reform in the beginning, i know it couldnt be large with the health care component. Hindsight is 20 be 20 20, some people think. What do you think . Democrats took years to Pass Health Care reform. We knew this would be complex process. In terms of tax reform polls out there show, majority of americans, majority of democrats want them to work with the president on tax reform. And so i think that these Senate Democrats are really going to have some angry voters to answer for, answer to when they go back to their districts or their states when they cant provide a single answer why it is they wont work with the president on key matters they really care about. Connell sounds like all three of you are telling us to calm down with the feud. Patrice, you want to finish this off . You dont think for example, if we go back to ask the president the question as he said down the line there is any chance Mitch Mcconnell is out as majority leader . That is just not going to happen . I think so. When Congress Comes back into session they actually deliver a budget, they deliver a debt ceiling raise and deliver the instructions for tax reform i think the president would be placated. Connell that is what he said. That is what he said. Only come back and ask him if it doesnt get done. Anyway, boy something to talk abouts awe said in the summer, but that north korea is pretty big thing as well. Thanks to all three of you, appreciate it. Thank you. Connell the story that has blown up is the google story, this diversity controversy. The latest that got critics eyeing the whole tech world is coming up next. There was an Interesting Development on this just last night. Speaking of tech, amazon, is amazon going to be the company that saves you from everything, including excessive fees you have to buy when buying a ticket to a big he devent . Amazon continues to get into everything they can including this. Well talk about it in just a moment. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Connell business alert, the market is very interesting to watch today, the old buy on the dip. Were up a little bit. Still down for the week if you look at numbers with north korea. There is question about strategy. Whether it shakes things up even more, or buying when you get a little bit of a dip when you go from here. Nicole petallides,. Were taking a look at stocks right now. Were seeing the dow up. 2 of 1 . S p 500 up a quarter of 1 at 12. 27 p. M. We had a threeday selloff. Stocks are to theside. For the week we note were down a percent for the dow. The dow ask on worst pace for early april. The stock market is doing particularly well. The dow, for example, up 10 . Nasdaq is up 15 and also the s p 500 up almost 9 . Of the today much like strategy investors used cautiously over the last year, buy a dip, its a strategy that worked well for more than a year. Theyre doing much of the same today. Over all on earnings season, it was very good earnings season, 91 of companies have reported, 73 beat earnings per share. If you take out tech, that was better, with 88 beating earnings per share. Gold an treasurys, it was interesting after gold traded up 27 last two trading days it is gaining again. The 10year bond yield with a sixweek low, that is still moving lower the 10year bond yield, 2. 19 right now. Back to you. Connell we see north korea, bond market and gold. Stocks are interesting, as you say buying on this dip. Opportunity, rather than panic the nicole, thanks. Lets bo go to google story this week. Google canceled what was supposed to be allstaff diversity meeting. The reason it canceled the meeting it says of safety concerns after employees names with published online. The Tech Industry as a whole has been faces pressure to diversify. We heard more about it because of the memo written by a google employee you see on the screen after he was fired earlier this week. Angela is down on d. C. , you say, angela, this firing of this guy went too far . Well, google did by firing this engineer they proved him exactly right. His memo was about google being idealogical echo chamber. Anyone who tried to challenge the status quo would just be dismissed. Connell right. So they actually proved him right by firing him. Google, a company that has been historically a company all about innovation, that is a huge step backwards. Connell i have a question about the meeting. Jessica, what sure your meeting whether or not he should be fired . I dont think he should be fired. Everyone should read david brooks column on this issue. It is free speech and diversity, what google is supposed to be all about. That town hall i dont know wht security concerns but they connell they put peoples names on line. Milo did. He is always so helpful. Connell i guess they say, they say there were safety concerns about their employees but you know, angela, what do you think . I think, what jessica is getting at as well, there has to be some sort of irony or some other word for this you have diversity meeting s that for me, jessica . No. Neil you have a diversity meeting, all of sudden you cancel the diversity meeting sounds like there is too much diversity of opinion, sound like you dont like everyones opinion on it. That is way it comes across. That is weird. That is hypocrisy and double standard for conservatives working in tech. The memo said men and womens brains are different. Male and female brain are not exactly the same. He never said men and women are unequal. He never said anything of that sort. If you read through the memo, you can scan through it after hearing all the controversy, my question, where is the lie . Where is he saying something that is not correct. Men and women are equal but were biologically different. Fields that men and women are better in and that is 80 male and 20 female. Connell which is an issue we can talk about. I think it is severe loss we dont have the conversation about women in tech. Connell that may not be biological by the way. You can disagree, my point you can disagree with the guy what he says in the memo. Absolutely. But have the conversation. Connell in fact it should spark a conversation. A lot of female employees, polling actually overwhelmingly google employees didnt want this guy to be fired. There was another poll saying they did and they are scared, uncomfortable situation. What really hurts here is the women, that were singled out. Theyre already going into this male dominated environment, having their wits about them and be as competent, perform at higher level when theyre often pushed into higher male environments to do that. And now they have this conversation. Connell do you have any idea yourself why those numbers are so skewed in that direction . 80 20 . I think a lot has to do how we teach stem in this country, engineering and mathematics. Connell mat, right. That is not correct. Connell it is bigger, systemic education reform. This isnt left or right issue. Connell that is the conversation. That may or may not be right. That is an opinion on it. Maybe some people do think it is biological. Whether theyre right or wrong, angela, that is the discussion we could have had, were having it, but could have had it at google. Maybe at some point they will. Exactly. Connell what do you think how skewed the numbers are between men and women in the Technology Industry . You have to look at the pool of candidates for these jobs who are both interested and qualified. When you look at male and female people as young as two months old, machine gravitating towards objects and women gravitating more towards people. Why most nurses are women. Most kindergarten teachers are women. Theyre in high human contact jobs. Why more men are in things like drilling for oil and things that deal with objects and it is not wrong. Im not about to go all, we should have genderneutral toys and thinks like that but i think that movement has a point. You already know at two months. What are toys being given to little boys and little girls . What are systemic challenges facing young women in entering fees fields that show up. Connell google could have had at this meeting last night. I believe they will eventually. I dont know if the ceo will be fired in the interim. No matter what is causing this connell we have to go, guys. Thank you so much. Appreciate it. Thanks, connell. Connell angela, good to see you as well. Well talk a little bit more next hour. Meantime, game of thrones, held for ransom. How about this hbo story. There are signs that hbo may be open to negotiating with hackers which some say is never a good idea. We have a cyber pro coming up what that means. President trumps new comments about Robert Mueller could have trump backers breathing easier today, the reason for that. The details on that coming up. Yes. So let me ask you this. How does diabetes affect your heart . It doesnt, does it . Actually, it does. 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Symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. Do not take jardiance if you are on dialysis or have severe kidney problems. Other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Tell your doctor about all the medicines you take and if you have any medical conditions. So now that you know all that, what do you think . That its time to think about jardiance. Ask your doctor about jardiance. And get to the heart of what matters. Connell we have a sports related story that came in to us, and it is big one. Nfl is is suspending dan last cowboys running back eseek cool elliot, suspending him six games without pay. There were Domestic Violence allegations surrounding mr. Elliot. This will be a big story and remember nfl teams play 16 games. If he is suspended six of them that will have a effect on Dallas Cowboys season. That is Domestic Violence issue is surrounding not only Ezekiel Elliot and but nfl. They clearly thought this was necessary. Is is out six of 16 games. Snap shares alltime low, slowing revenue and user growth in the second quarter. Losses there quadrupled compared to a year ago. Snap is down today. Amazon, it continues on the path it is on to take over the world. Looking to get into the ticket selling business. What does that mean . Maybe well pay lower fees on tickets well buy in other places, or maybe not. Jeff flock joining from us the streets of chicago with more on amazon. Hey, jeff. Reporter tell you i have a good one for you, connell. If you think ticketmaster which is the big player in this market is going to roll over, you would be wrong. Since we began our reports this morning on fox business, fox news channel, the mark marquee changed from advertising indina menzel, took that and and put up live nation and msg presents. That is the Parent Company of ticketmaster a big player in this. If you think theyre rolling over for amazon. They sponsored this event. They spend a lot of money in sponsorships. Amazon will have to pony up big time in order to do that. Reuters is reporting that amazon wants to get into the ticket business. If you look at amazons stock compared to ticketmaster or you i should say live nation stock, live nation released their financials yesterday, huge quarter for them. Revenue, 2. 28 billion, a half billion more than expected. Growth of revenue by 30 . Income by 50 . This is a huge market. People now, you know we talked about retail ice age, people now instead of buying a new shirt or new suit or whatever, they want to buy experiences, like sporting events, like theater, live theater, live music. This is where these guys play. An now, as you report, amazon would like to get into it. The way they do business they tend to drive prices down they want to be very competitive and bring people into amazon prime. This would be a great way to get more people into that. Already amazon prime has almost as many subscribers as espn for gods sakes. They are doing great but would like to do better. Connell youre right, they include all these things in the prime subscription. Your question is the right one, how much will it cost them, and will the costs make sense. Could be good for consumers. Jeff bezos willing to spend money to make money. Connell always has been from day one at amazon. Thank you, jeff flock. New reports meantime revealing somebody inside of hbo offered 250 grand as a quote, unquote bounty payment to hackers. Hbo hacking story . Cyber expert paul viola joins us now. This idea of offering money to hackers, almost like hey dont negotiate with terrorists. That is the saying we always hear. This does not seem like a good idea, does it . Connell, it is ridiculous thing to do, for a company as wellorganized as hbo, for them to take a stab at this its ridiculous. And the hacks are exemplifying that poor decision by shooting this back out, if to say to the general public, are you kidding me . This 250,000, well not negotiate with you. Connell let me explain the story. Hbo gets hacked. The hackers reportedly want 6 million, something in the neighborhood. Right. Connell somebody at hbo, an employee says well give you 250 grand for this bug bounty program. They bring in Tech Professionals as part of this program, they pay them to find vulnerabilities. So they say they were just trying to buy themselves some time. Is any of that maybe legitimate . That you have to do something if youre one of these companies or no . Connell, really, i just shake my head when i hear that you are not going to break into the encryption that this group has to lock down hbo. You want to Start Playing a game, minute by minute, hour by hour, that thats costing you money . You think they will negotiate with you. To me it is an absurd way to make a decision, hackers of this magnitude are going to negotiate with you. I cant believe they even did it. Connell the key, paul is prevention, if youre not going to negotiate. The connell, the key is prevention. You and i talked about before. This came from inside job. This is multiple point access. In all likelihood advanced phishing campaign. Preemptive training to employees to identify emails to open, not to open is paramount. It is inexpensive. It can avoid this. Most companies simply dont do it. That is their point of entry. Connell dont you need only one . Say you have, most Big Companies have thousands, tens of thousands of employees, right . Connell you need one person half paying attention, dont you . Is that all the guys need to get in with phishing emails . Exactly, connell, that is the point. Once they get in they could horizontal, called islandhopping. They get access and spreads throughout the organization. You can prevent this employees can be taught red flags, that email doesnt look like, i need to challenge the email. You sent me email the im not sure that it came from connell. I call or text. You verify fine. If you dont i wont open. I wont expose contamination to my system. Connell usually address is is something ridiculous. If you hold your mouse, it is not real email address. People are busy sometimes. They shouldnt click on something they shouldnt. Only takes one. Youre right, paul, keep them out. Dont negotiate once theyre in. Absolutely. Connell good to talk to you. Another paul, paul manafort, another story. Could be changing the whole strategy in the russia investigation. How . 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He you am going to dismiss him. Im not dismissing anybody. There is no collusion. You know why . I dont speak to russians. I won because i suppose i was a much better candidate than her. Connell President Trumps comments in knew jerusalem yesterday. That was in in new jersey. That was plans he has no plan to fire Robert Mueller. He is frustrated about the narrative in general. Paul manaforts legal defense, we have break burman in from d. C. With the latest on that. What are we learning, break. Reporter in washington there is law firm on every or the corner seems like. Paul manafort is taking a change in representation, from wilmer heal, to another highlyrespected firm. Here is the rationale given by a spokesperson for manafort. I quote. Wilmer hill is outstanding law firm, exactly what you want engaging with capital hill. Miller is a specialized firm, expert in international tax. That is where seems the special prosecutor is putting resources and paul is adjusting accordingly. End quote. The heat was turned up on manafort, two, three weeks back at end of july, one of the d. C. Suburbs, manaforts home after fbi agents raided that home after he had given testimony up here on capitol hill. President trump was asked about that yesterday in new jersey and says he was surpriserred to learn of it. I thought it was very, have he strong signal or whatever. I was surprised to see it. I was very, very surprised to see it. Reporter the president s outside legal counsel, john dowd, has also questioned that fbi raid telling email to a wall street journal report, describing it as a gross abuse of the judicial process by the special counsels office. Connell. Connell blake burman there in d. C. One of the other things the president was talking about yesterday was the Opioid Crisis. In fact he declared that crisis a National Emergency. The Opioid Crisis is an emergency. Im saying officially right now it is an emergency. Its a National Emergency. Were going to spend a lot of time, a lot of effort and a lot of money on the Opioid Crisis. Were going to draw it up and were going to make it a National Emergency. Connell what does that mean . Our friend dr. Devi from nyu. Great to see you too. Connell the fact its a National Emergency means more federal money, right . Yes. Connell what does that mean. For treatment with addicts, people on the border of substance abuse. We should use some of that money to develop new treatment options. Our Current Treatment options dont have the greatest success rate. There is a lot of relapses. If we could develop new drugs for addictions other preventions that could treat pain, that would be good. A lot of issues with the Opioid Epidemic relate to prescription medication. Connell it seems to the layman counterintuitive to develop more problems. To your point the drugs are the issue, you become addicted and cant got aoff those drugs. Is there ways to make them less addictive. We have medications. Tylenol, antiinflammatories they are not as effective for severe pain. There are other drugs in the pipeline. If we could develop something that doesnt kill people and not as addictive but treat pain that would connell is it red tape . Sometimes funding. Morphine has been around for send hetries. We see different variations of morphine, short are acting, longer acting. It is easier for pharmaceutical companies to rehash something that will sell than develop from scratch something new. Connell how much is prescription writing the problem . Are doctors to blame for a lot of this. They are in part. Some of that may originally because they didnt totally understand how to prescribe these medications or how harmful they were. Now people do. Connell i was asking, is there more training we could do . Is that somethings we could use federal money for . We could use more training and support doctors that say no. Couple weeks ago a physician was murdered for not prescribing opioid to a patient or maybe an addict. But it was opioids. Another issue is long term addiction and treatment, what about in the short term, in terms of deaths . We antidote for opioid overdoses that lax sown. Maybe they could get naxolne. Connell is that treatment available . If they give people naxalone they might give people more medications. We could save lives having that more available. If doctors prescribe it along with medication after surgery, et cetera that would be out there for people to use to save someones life. Connell if nothing else this will put more attention on the problem which we all know its a huge problem. We need to decide how to use that money wisely i guess. Dr. Devi, we appreciate it. The United States is engaging in talks we learned from the Associated Press with north korea. Back channel talks. Positive sign, encouraging sign. Well talk about that coming up. Will the gop get tax cuts through and get them through this year . House ways and means chair kevin brady has an update on that when we come back. Hour number two straight ahead. Nah. Not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] mmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Call to save 500 off bath walls with your walkin bath or visit kohlerwalkinbath. Com for more info. Connell were into hour number two of cavuto coasttocoast. We have developments coming into us, first of all on the news the United States is Holding Diplomatic talks with north korea. Backchannel talks is whats being reported, and the report is theyve been happening for several months and they continue to happen. President trump meantime threatening the north publicly once again, telling them in a tweet earlier today that the u. S. Is, quote, locked and loaded. And secretary of state rex tillerson, National Security adviser h. R. Mcmaster, weve learned they are meeting today with the president at his golf course in bedminster, new jersey. Some have wondered whether this National Security team is really on the same page dealing with the growing north korean crisis. Rebecca grant is with us so is former navy s. E. A. L. Rebecca, first to you on the question with mcmaster and tillerson sitting down with the president today. Do you think the administration and all the senior officials are on the same page in dealing with north korea . Yes, i do, absolutely. They briefed congress back in april so you can be sure the options are ready. What does locked and loaded mean . Theyve briefed the options, Pacific Fleet has ships in the right place. It means bombers are ready, the devils own grim reaper and sister squadron are ready. Theres no question theyre on the same page. Trumps war of words is what we need. In 1953 president eisenhowerer thre threatened to nuke them if they didnt go to the negotiating table. Theyre all on the same page, no question. Connell going highlight tweets from senator Lindsey Graham of south carolina. No huge fan all the time of President Trump, not afraid to be critical, but hawkish on foreign policy, senator graham said republican and democrat president s for the past 25 years warned and complained about the nuclear program, President Trump inherited the mess. Those are two of six tweets he just put out on the issue. Hes with the president but appears in favor of a preemptive strike or talked favorably about that. What do you think of that strategy . I dont like the whole idea of a preemptive strike, i dont think its useful at all, i think it sends a different message than were trying to send. It keeps both sides at the brink. We show we are willing to retaliate with complete and utter destruction of north korea, not just the nuclear piece but north korea, and then we stage and post, and you are demonstrate that were going to do that. The problem is our credibility has been bad, but the first preemptive one, there is no guarantee its going to work, and two, it guarantees its going to escalate. Connell the key is retaliation, not preempt shun, the key question, what constitutes an act that needs to be retaliated against in your opinion . I ask that if north korea hypothetically fires a missile near guam within 20 miles but not at guam, is that an act that we should retaliate for . What do you think, dave, first, before we go back . No. Connell okay, let it go. Let it go, if we have the right indicators. Thats the last minutes as youre able to determine whether thats going towards guam or not. The other part is japan can shoot it down, that sends different cultural embarrassment message to north korea as well. I would encourage japan to be looking at this, they said in the collective defense structure, he would look at that. Its a good idea. Connell right, japan said they had our back on that particular one or had the regions back, their own region is the better way of putting it. How but, rebecca on the question of preemption versus retaliation . Guam is america, if you splash the missiles near that island, in my mind thats grounds for retaliation, we have options for precision Ground Options and china can help, too. Blip a little code across the border, step across the border and or shoot down one of the missiles, guam is america, we need to be ready to retaliate. Connell guam starts where . Thats the question david and i were talking about, you say it starts with, say 20 miles plus outside of guam in the waters, thats an attack to you . Absolutely. Im not going to pars that one that closely and we have good military options there, yeah, yeah, i think it means an attack, just to be clear. The consequences of that. I almost feel like we have to parse it quite closely, kim jongun, kind of a test and next thing you know you retaliate and one thing leads to another. Isnt that the fear, it gets out of hand quick . Thats right, its not a blackandwhite question if it comes near guam. If its outside the Economic Zone, what about the ones that went into the sea of japan . Is that close, in the Economic Zone of japan, pieces that were saying, it has to be parsed closely before you retaliate because the spiral of escalation, the retaliation is huge, and uncontrollable. Connell yes, one thing, only needs to sneak in one of the missiles, kim jongun into seoul, south korea or tokyo, whatever the case might be, as weve been outlining all week. What about diplomacy . We heard about the backchannel talk, the Associated Press reported on it theyve been happening but also they continue to happen with the senior u. S. Diplomat, i believe here in new york speaking to north korean counterpart. Is that something that could work, or is it more important to put pressure on china . What do you think . Both, yes, and no coincidence that all of this is happening after nikki haley lined everybody up at the u. N. Chinas pressure is important, they gave a great assist by warning north korea not to attack guam, okay . So i think this is going to end at the negotiating table. I think we can also retaliate without escalating. What history tells us, it takes 8 to 10 months to drive it to the negotiating table. We have two things weve never had before. One is a great layered missile defense. The circuit china fully integrated in the Global Economy and ready to help. I expect this to end the negotiations, china is military strong. Connell china and north korea to some extent, they need a way to save face so they dont look like they are completely capit lath, is there a way it happens on negotiation and everybody is able to avoid conflict . Negotiation can absolutely happen. Rebecca had important point. A and, b, we here in the United States we take a look at a or, b, negotiation or military. It can be both tracks at the same time, apply military pressure, look for diplomacy and negotiation. We have to show the regime and china that were not trying to get regime change, we want the status quo without Nuclear Weapons. They can retain the strategic nature of the korean peninsula, chinas happy, north korea needs to be told and convinced that it can exist with that. Connell thats the basic tillerson point. Dave and rebecca, good discussion, important discussion. President trump addressing another nuclear threat, and that would be iran. Lets movon to that. Here it is. But they are not in compliance with the agreement and certainly not in the spirit of the agreement in compliance, and i think youll see very strong things taking place if they dont get themselves in compliance. Connell okay, former air force assistant vice chief of staff, the Lieutenant General Tom Mcinerney joins us, good to see you as always. Iran obviously is another big component of this and doesnt get talked about as much this week, but could be a big part of what happens next. What about iran . Iran is a nuclear proxy or about to be, they may already have weapons. We dont know, connell. But the fact is that will be the next shoe to drop. It presents the same dilemma and same challenge to the Trump Administration that it did to the Kennedy Administration when they tried to change the balance of power in cuba, and so the way i look at it is both north korea and iran are related. They are nuclear proxies of russia and of china. Connell right. And we cannot let them have Nuclear Weapons that can reach the United States. That must be a line in the sand that we draw, and it is unacceptable listening to your previous guests, i would only say i would never let them fire missiles towards guam because he has said he is going to attack guam. He has intimated it. We dont know if the missiles hit guam or not. So once we see them lining up, before they launch, i would take them out, and i would make sure that north korea knew there are no more missile launches coming out of north korea because you have said that you will attack u. S. Territory. We can no longer accept that if thats harsh, so be it. But the chinese must understand that. Connell so youre taking it a step further, i believe, than what rebecca said, you wouldnt wait for the missiles to be fired, you would use intelligence to see when theyve been loaded and you would take them out then. What do you think would happen after that, general . Well, i think that North Koreans would think very hard about it because they may realize that their airborne bombers with Nuclear Alert with Nuclear Weapons on them, and that air launch cruise missiles that may have already got the launch authority. I would not let any rounds come into seoul, and i would have airborne alert. This is me. But i would have the old chrome dome that we used to have when i was a lieutenant, flying and id have them over in south korea. They must understand that we will not accept any potential threat to any part of the u. S. Or our allies, and that we are prepared to go to and preempt with a Nuclear Conflict if we have to. They must understand that. We cannot let them go down the road to where we dont have an opportunity and they have 50 icbms aimed at the United States or allies. Connell daves point was that it had to be agreed with you on that, they have to understand that, they have to understand that the military threat is a very real one, but that we have to make sure to retaliate rather than preempt. Why is that wrong . Why is that the wrong approach . Well, there are two options for us. Lets talk about the retaliation, if one round is fired on seoul from artillery, i would retaliate with nuclear missiles. Air launch cruise missiles with aircraft launch that could already have their launch Authority Given to them so they could be in north korea within five minutes. You know, we have a prethrag, 2,000 sorties that are already targeted. In this particular case, i would put the nuclear airborne alert on the prethrag, talk about and thats retaliation. Talk about a preemption. We can take out the artillery with conventional means, we dont have to use nuclear. If we decided that the situation and im not going to give you a lot of specifics, you can imagine 1,000 to 2,000 cruise missiles in the air from airsurface and subsurface systems, can you imagine b2s carrying two 30,000pound bombs, can you imagine moabs . 20 at a time . I was d. C. Operations and intelligence when they built the hardened artillery sites. We know the exact gps positions. Connell okay. Its on our side, if we wanted to preempt it conventionally. Connell general, always good to talk to you and get your perspective and expertise, we appreciate it again today. Boy, serious stuff. Thank you, sir . Thanks, connell. Connell no mess in the markets, weve been talking about that, and throughout the week we saw a selloff the last couple days, lost 200 points yesterday, and Charlie Gasparino is also coming up, hes back today. Hes got breaking news as a matter of fact on tax reform. Ill have charlie bring you that, after a quick break. Listen up, Heart Disease. you too, unnecessary er visits. And hey, unmanaged depression, dont get too comfortable. Were talking to you, cost inefficiencies and data without insights. And fragmented care stop getting in the way of patient recovery and pay attention. Every single one of you is on our list. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. The dinosaurs extinction. Got you outnumbered. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Find your awesome with the Xfinity Stream app. Included with xfinity tv. More to stream to every screen. Tax reform, by the end of the year. Yes or no . Yes, maam. We think its critical to the economy. Look the Unemployment Rate is down, thats good. President trumps created a million new jobs, thats good. We can do better, especially if we compete and win around the world, especially here at home. We cant be settled with the tax code weve got today. Connell the house ways and Means Committee chairman kevin brady, tax reform gets done this year. Charlie gasparino saying there is division among republicans, weve talked to him about it a number of times this week. And liz claman is here from countdown to the closing bell, nice job filling in for neil. You will be as polite to liz as chairman brady was . Shall i be as polite to liz as i was to asman. Connell i tried to get apology from david asman and he refuseed. Im friends with asman, hes a guy. Wait a minute. You are a lady and im not going to do that. Bring it on bring it gasparino, tax reform, tell us, where are we going here . Kevin brady is making the rounds now to various places and talking a good game. Hes a smart guy, a nice guy, but if you really push him, he will explain to you that there are divisions inside the Republican Party over certain key issues that could prevent tax reform from happening this year. Not saying it will prevent, it could. What is that . Big division over what is revenue neutral. Some supply siders, particularly the House Freedom caucus believes they should drop the revenue neutrality issue as the cbo scores it and do a dynamic counting like Ronald Reagan did. There is also big divisions over which deductions stay in and stay out. You have republican congressmen from new york, new jersey and california who are never going to vote for the elimination of the deduction for state and local taxes. Connell you are right. You could go on and on. And kevin brady is a smart guy, really good public servant. Connell seems like he when you push him, he will talk to you about the divisions and the divisions could stop this like it stopped health care. Connell or change it, seems like the debate is tax reform versus tax cuts. Tax reform simplification, we talked about that. I did push him on special interests, where are the gates going to be . Shut watertight closed or open just ajar for certain special interests to get through. You give it to one, the lobbyists come screaming and say i want my piece. One of the things he did let through during the interview when i told him about paul ryans individual card, he said we can do that, we will make it so much simpler to file taxes but feel we can fit mortgage deduction on that card. So what about what charlie brought up . The big states who will complain dramatically, not just talking about blue states, red and blue large states who suddenly are telling citizens you cant write off, you cant deduct. Connell you get the sense big picture republicans are willing to settle for something smaller and this will get watered down, maybe something gets through, not as big . They have to be ready for that. Its been 31 years since Ronald Reagan signed the last tax reform. They dont do something significant like get the corporate rate to 20 , they cant listen, the effective Corporate Tax rate is 27. 1 . Connell after you work through the loopholes. Close the loopholes and bring it down to 25, youre not doing that much. They know this. Again, when you push kevin brady and some of the guys, ask them what it means to be revenue neutral. Theyll tell you and they have to rely on the cbo and i believe that the houses own accountants, they dont score this dynamic. They want to get it past to reconciliation without the democrats. Right, but these guys believe in a sort of static analysis of how do you calculate the deficit and theyre stuck with it. So when you have that, you really cant do a big tax cut. Yeah, thats the sense, and done more reporting on it. Arthur laffer is not scoring this thing. Larry kudlow is not scoring this thing. Steve moore, some bureaucrat who believes in straightforward static analysis is scoring this. That is not going to allow for big tax i dont think. Connell especially with what happened with health care. Politically unstable. And twice at the top of the interview and the very end, skid twice, bluntly sir, will you have it done by the end of the year . First time he said yes, we can do it, the next time he said yes, maam. I cant beat up somebody who says maam. He specifically said, connell, the middle class deserves a tax cut, and he indicated smaller businesses or businesses in the Community Need a tax cut. Connell wonder if theyll raise taxes on the rich. Heres the thing, so many moving parts with this, you cant do it in a Television Interview because its so complicated. How do you treat tax cuts for scorp. S for pastors, versus the Corporate Tax rate, who gets the tax cut of individuals and when, and should you have a policy that gives a big middleclass tax cut when in reality the top 1 pays most. Connell bring up the markets and take a quick look, liz, at this week, down for a few days in a row, the stock market weekly figures, today a bit of a buy on the dip which is a surprise to some given everything thats going on with north korea. Bottom line, theres no panic here, gold is up a little bit, bonds down a little bit. The nasdaq had a drop yesterday, more than 100 points thats a significant ding but not hysteria. And at 3 00 p. M. Eastern on countdown, plug of the show. Connell working the plug. Always, were talking about nuclear nervousness. Connell in terms of markets . Yeah, jitters, investor jitters. I think the headlines unless something listen, nuclear war is not good for the markets or the economy or anything else. Connell get that out of the way. I think these are headlines that investors use to take money off the table because the market is running so high. I will say this two, thing us when talk to institutional investors, theyll tell you take out nukes and take out trumps personality, his regulatory agenda, even if he doesnt get tax cuts is anything clinton would have given you or any democrat because its more pro other. You cant deny how the market has performed since the day the world knew that donald trump won. Connell well, its seen as a Better Business environment. Think about it, you have free market capitalists in the regulatory bodies but heres one other thing, if the tax cuts are not priced into this, so lets say we do get a tax cut. Connell more, it can go up more. This is an upside surprise that could take the market higher. I know you have to agree with me in the fact that north korea is something hanging over investors cerebellum, they are watching it. A trillion dollars so far has been sliced off global markets. Not the u. S. Market, in combination, in the aggregate, a trillion dollars cut off. Go ahead, charlie. I hate to say this, if there was a Nuclear Conflict, if they bomb japan, you could see a flight to quality in the u. S. Lets be clear here, what do investors think about. They think about worstcase scenarios. They should be thinking about connell they are not thinking about a worstcase scenario, clearly markets would be crazy and theyre not. Theyre factoring that into the equation well watch the discussion about the markets and north korea this afternoon on countdown to the closing bell. Next, well talk about google. Thats become another big, big story with the company under fire over this diversity issue. Canceled a meeting last night. You have democrats in Congress Looking for answers. Why thats causing some alarm about that . All those stories coming up after a quick break on cavuto coasttocoast. Poor mouth breather. Allergies . Stuffy nose . Cant sleep . Take that. A breathe right nasal strip instantly opens your nose up to 38 more than allergy medicine alone. Shut your mouth and say goodnight, mouthbreathers. Breathe right. Is everything ok . Adt, i could hear crackling in the walls, and my mind went totally blank. All i remember saying was, my boyfriends beating me and she took it from there. When a fire is going on, youre running around, youre not thinking clearly, so they called the Fire Department for us. And all of this occurred in four minutes or less. Within five minutes. I am absolutely grateful we all made it out safely. Its kind of one of those things you cant even. You cant even thank somebody. People you dont know actually care about you. To protect what you love, call 1800adtcares. Connell back to the google story as the company canceled a planned diversity meeting they were supposed to have after that memo gate and the guy that got fired. Lauren simonetti joins us in the newsroom why things were canceled. Reporter the google ceo canceled the meeting an hour before it was supposed to start. Supposed to be a town hall event, google staffers would ask questions about googles response to memogate, the controversial memo written by the male Software Engineer about male in the software industry. He got worried for the workers when the questions were given ahead of time when questions and identities were leaked. Employees are getting harassed on social media for supporting the firing of the memos author james damore. One twitter account encouraged google to expose colleagues identities and, quote, ruin their lives. Eight had bios highlighted by wellknown political commentator, google ceo writing in memo to employees, this is a quote, googlers are worried they may be outed publicly for asking a question in the town hall. Google is covering itself here, dozens of women considering gender discrimination lawsuits against the company so, this is what happened. They cancel the meeting before it started. Connell the big point, the possible lawsuits. Lauren, thank you. Democratic lawmakers are getting involved with demanding answers on the fired google employees memo claiming the Tech Companies in general are not doing enough about diversity. That brings up a larger question about whether theres any role at all for washington in all this . Lets go to our panel and talk about it more. Sabrina schaeffer is with us, the democratic strategist wendy asay oh, joins us and conservative commentator carrey sheffield with us as well. Sabrina, is there a role for government trying to level the Playing Field in the way the democratic lawmakers would put it in Silicon Valley . Definitely not a role for washington. We should stay as far away as possible. I think there is room for larger conversation. I believe deeply in gender differences, i believe women have different aptitudes and strengths. I think that the tech environment does have challenges that they need to address, and i think ive talked to forbes on fox friend about this, and one of the things thats interesting is that in the 1980s there were more women in tech than today, which does suggest that proliferation of online chatter and the culture there has changed in some way, and thats something that Companies Like google have to tackle. Connell or that just all of us will, right . In some way, i brought this up earlier in the week on the air, i have two daughters, one is 14 and one 12. I could see one or both working in the Technology Industry in that theyre both interested in it, interested in math. I could easily see it. But the numbers are Something Else in terms of how many more men than women work in the particular industry, so whats your view, wendy . Something that has to be forced on the industry by government or something we need to talk about, what should we do . Should we do anything . Not necessarily, washington has every responsibility to assure, of equity and inclusion are not in the bulldozed. We make 59 of the u. S. Labor force but only 12 of the Tech Industry. To add insult to injury, we see that men honestly make 61 more than female counterparts in the Silicon Valley. So what we have here is not just nefarious attitudes towards women in the Tech Industry, we have opportunity gap. That opportunity gap is saying that women should not be in the Tech Industry. So we have to end that pervasive narrative that women are inferior, industries not only base hiring practices also on the narrative but also affects the selfesteem of women and girls in the s. T. E. M. Field. Connell i understand, carrey, that google said there are threats against the employees and canceled the meeting. Its ironic weve had two panels and had good discussions about it, maybe thats what google should have done last night. Thats just me, whats your take on all this . Comes down to culture. Any time you have government into fix the culture there are unintended consequences, you can see it across the board on many other scenarios. You look at the explicit Text Messages and harassment of women, women trying to get connell just not comfortable. The men are forcing them to try to have sex with them or date them and theyre trying to get investment for the tech company and theyre treated like objects. Connell thats a Company Issue not a government issue to regulate. Its a cultural problem. Its pervasive throughout Silicon Valley but thats something that when it rises to the level of harassment, that is something i think from a legal perspective the government should get involved. In terms of mass regulation, its not going to work. Connell sabrina, you agree that its a Cultural Technology specific problem . I think there is something unique to technology, whats interesting is were seeing a lot of women who are strong in math and science but turning energies to other fields where they can use, that environmental science, architecture, biology, veterinarian school. All of the areas where women have strengths are choosing to go into because of the culture, perhaps they can create a better worklife balance. The reality is its tech loss because women have the strengths and abilities and theyre going to lose them. Connell what about the fact that google wouldnt talk about it last night . Do we all accept on face value the fact that it was because of the online threats and that can be serious, maybe it was, to me it seems a little odd. Isnt that fair that they should at least that goes to the firing of this guy, if you disagree with the guy that we should have the discussion rather than firing people. Absolutely. We should have substantive discourse around the issues, when it comes to issues of inclusion, comes to issues of equity, we need to come together as a community and create dialogue on why the issues are happening. To address a comment made earlier. When it comes to the attitudes of women in the s. T. E. M. Industry, it doesnt just start in the workplace, this is something as an educator at the collegiate level, i see it in college and high schools. It starts in Elementary School and it comes from the narrative that women cannot do the same thing men do. I dont think that. Connell i dont think shes saying that, its the natureive. You look at cosmopolitan magazine, its all about sex, clothing, flirting, things that arent substantive. Have you looked at mens magazines. Thats what im talking about. Women have their role and men have their role. Connell hang on a second. Sabrina, we have to go but i know i wanted to make a point, go ahead. If you look at students enrolled at m. I. T. That top math and Science School in the nation, there are stark differences what men or women are choosing to major in. The soft sciences and men are going to Computer Engineering and science, and i think its important in this conversation, there maybe cultural problems but there are also genetics and gender differences. Connell and all of them, every single part of it is fortunate talk about, even if you disagree with someone, sabrina, wendy, carrie, appreciate it. Facebook expanding dominance in the tech world and what it all means for and you techs control over you and that part of the Technology Story coming up next. Its time to rethink whats possible. Rethink the experience. Rethink your allergy pills. Flonase sensimist allergy relief uses unique Mistpro Technology and helps block 6 key inflammatory substances with a gentle mist. Most allergy pills only block one. And 6 is greater than one. Rethink your allergy relief. Flonase sensimist. Connell more tech talk for you today. Look at the stock price, down 11 , snap inc. Is the Company Behind snapchat, disappointing user growth, something you do not want in this industry, facing pressure from instagram owned by facebook as this particular stock chart illustrates for you. The tech analyst is with us. Russ, the issue is whether snapchat can compete here not in terms of what the kids like on a daytoday basis but the economics of it. Facebook is dominating this space, why . You look at facebook has grown over the past 10, 15 years at this point, and built this network of ways to promote whatever theyre buying, whatever theyre focusing on. Instagram perfectly tied into that. Snapchat is like an island, have you all the kids and user interaction but havent found out a way to get people to spend money, make money, translate that. Connell kind of like twitter in that way. Very similar. The young kids love snapchat and all the journalists love twitter because they can watch what each other is saying and compliment each other, thats how we roll, and twitter doesnt make the money that facebook does. What is it facebook is doing so right . Simply being able to scale it because they are so large and dominant that way . Facebook is so broad. You have the wide age grapp, snapchat is younger, you have people that log in every day as a matter of course, not they saw something cool, i log in, its in the news feed. Connell kids say facebook is only for old people, and you thought its going to fade away, the next big thing will come up. It never happens and still a lot of people have the accounts, i guess they use them, the younger people. Is there anything that they lose because theyre an older site . I think facebook has been smart about push notifications, stuff like that to keep people engaged with the website, with the app. Connell now tv, the messaging, look at facebook, just this year. We had jeff flock reporting on the story that amazon is going to get into the ticketing business. A story every day of the week, amazon getting into x business, amazon taking on ticketmaster. What do you think . Genius, fits perfectly with the Current Business model, they have a Subscriber Base with amazon prime, so many people are paying 80 bucks a year. Think about a credit card, if you have amex card you can get access to certain events so now theyre expanding more services to this prime deal. The other really good thing is they have the back end to make really good websites that sell tickets, something that ticketmaster does not have. If you try to buy ticketmaster tickets, total disaster. Connell frustrating for people. Thats interesting, so the Consumer Experience will improve here, i wonder pricingwise what will happen, thats amazons mo, they lower the prices by undercutting there. Can they include it with prime or maybe have to raise prime prices at some point . I dont know. I think prime will be a big part of that, you get service prices, but also theres so much demand to move away from ticketmaster, i dont think they have to under cut them that much. Connell they do a better job. Amazon has made a living on make good websites and back ends, im not worried about amazon being able to pull it. Connell with prime subscription you get good deals and streaming tv and music and on and on, if it is including tickets and food and food delivery and the whole foods acquisition, is there any risk of amazon overreaching or as we say the path to world dominance . Theyve got a good cash cow, this deal in particular is not a huge money sink for them and they are smart about when they invest in something thats not quite working out, they dont throw good money after bad. They pivot and try Something Else. Theyve been smart with the new expansions and all of them have a long growth to them. Connell yeah, anything else can you think theyre not in that they would get in . You name it. Connell theyre almost in everything. Partnering with tesla, doing automated car stuff, who knows. Connell not a bad idea. Order a tesla. Good to see you, russ. Cheers. Connell two interesting topics to talk about there. Back to the politics of the day and everything going on with President Trump, and maybe using trade. We talked about the possibility of doing that with china, put more pressure on the chinese, the president s talked about it in the past. Could he bring it up again . Would it work . Good . Bad . Dangerous . 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Liberty mutual insurance. I think china can do a lot more, yes, and i think china will do a lot more. Look, we have trade with china. We lose hundreds of billions of dollars a year on trade with china. They know how i feel. Its not going to continue like that. But if china helps us, i feel a lot differently for trade. A lot differently for trade. Connell President Trump, possibly, as you heard him talk about there using trade as leverage to involve china more with the diplomacy when it comes to north korea. Chinese state media saying it may come out against us if we strike first. Something we talked about earlier in the show. From Heritage Foundation Bruce Clinger on if we can do that. Is it possible, bruce, something the president talked about trade policy can be used in the carrot and stick approach with the chinese, it would come in handy with north korea, or would it . Linking separate lanes in the road can give you leverage across the board and certainly trade is leverage. Im leery of doing that with north korea, you should go after National Interests in each of the lanes in the road, china, taiwan, south sea, et cetera for u. N. Resolutions, should not be backing away from what is required under the resolutions and also holding punches on what we should be doing to enforce law, the chinese and other violators weve been holding back, should be implementing secondary sanctions, so if china comes across with favorable trade terms, do you back away from what you should be doing on north korea . I dont think so. Connell separate the two and more that we can do. I understand that. Whats in chinas interest . That gets into the heart of what they might do here. Is it in their interest to help us with north korea . They dont want to see war in the region, right . Shouldnt we be able to put pressure on them to help solve this peacefully . Right, i think what we can do is by using u. S. Law, we can wean away the chinese banks and businesses engaging with north korea. Connell right. The vast majority of all International Financial transactions are denominated in dollars, therefore have to go through u. S. Banks, including north korean transactions as well as chinese banks and businesses engaging in north korea. They are using correspondent accounts or their own accounts in the u. S. Weve been holding back connell if we do that, sorry to interrupt. If we use banking sanctions, and obviously maybe this is why we havent done it yet and only do it if its something we need to do, but hurt our financial industry too, right . Well, i would argue why would you not enforce u. S. Law . Why would you not protect the Financial System against criminals, whether theyre chinese or any other entity. And what you presented to as the secretary treasurer did when we sanctioned the one chinese bank, were not saying the Chinese Government is complacent, were not behind, it were enforcing our own laws, why would china take umbrage at that if we are enforcing our laws. Connell you would wonder. I guess the final question is, do you think we have enough at our disposal from everything youve outlined and talked about that this can play out peacefully over the next week or so . Prediction is such a poor way to put it, but how do you see this playing out . Separate from the u. S. Trade issue or the china issue, u. S. And north korea are at loggerheads. North korea made very specific public plans about what its going to do with missiles. In the past theyve said dont forget guam is within range. By giving specific even down to number of seconds, the missiles are in flight. I dont think its a strike, i think its military demonstration, the question on the u. S. Side is do you try to intercept . Certainly if its going towards u. S. Soil or guam or within a certain range outside in the ocean, you know, and then we could argue whether thats provocative or will that prevent a further escalation by north korea. Connell that will be the big question if it comes next tuesday or whenever it comes. Bruce, thank you, sir. In terms of what the president has been saying about this, dealing with the back and forth with Mitch Mcconnell, and you know, that has a lot, apparently, of you fired up. Were going to look at what youre saying about it. Trumpmcconnell. After a quick break. Potsch you each drive a ford pickup, right . in unison russ, leland, gary yes. Gary i have a ford f150. Michael ive always been a ford guy. Potsch then i have a real treat for you today. Michael awesome. Potsch im going to show you a next generation pickup. Michael lets do this. Potsch this new truck now has a cornerstep built right into the bumper. Gary super cool. Potsch the bed is made of highstrength steel, which is less susceptible to punctures than aluminum. Jim aluminum is great for a lot of things, but maybe not the bed of a truck. Potsch and best of all, this new truck is actually gary all laughing oh my. Potsch the current chevy silverado. Gary im speechless. Gary this puts my ford truck to shame. James ill tell you, i might be a chevy guy now. laughing . Connell a few final point in hour on the president s feud with the Senate Majority leader generating loud response to put it mildly on our social media pages. Here is tweet. Throw the bums out. He blames potus for expectations. No more excuses the buck stops with you, ryno. Janice says, all americans are tired of the swamp, republicans and democrats. President trump will have hard time giving them life of luxury on the peoples money. Norma on the twitter. Laysry republicans need to get off their rears and work. They may lose the next election if they do not produce. Keep them coming tweets and everything else. Team can cavuto. Like norma says, get off the rear. Trish regan is here to take you through the next hour. Hey, trish. Trish i like that green on the screen. Thank you so much, connell. President trump doubling down on the stern warning to north korea today, you better think twice before you make the next move because our military solutions are fully in place. The dow snapping a threeday losing streak. Im trish regan. Welcome to the intelligence report. We have a lot boeing on with President Trump warning president kim jongun, dont test me because you will see our countrys military might because youre messing with the wrong person and the wrong country. You watch him here. He has disrespected our country greatlyhe has said things that are horrific. With me isot