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Transcripts For CSPAN2 Key Capitol Hill Hearings 20150212

once they get into the system they are happy with the service. can you speak to the article that is just coming out today and whether or not you would be willing to do an op-ed piece because i think it's important that veterans are not -- we are definitely headed in the right direction. >> yes maam. i actually met with the comptroller general and we were talking about whether or not he should put va on the high-risk list. i encouraged him to and the reason i did that as we are a health care system and we are going through a large amount of change right now. during that time and the organization goes through a large amount of change we need to make sure that we have the appropriate oversight, the leadership as well as those responsible for it so while i think the va system is absolutely essential to american medicine we trained 70% of u.s. doctors. we have developed innovations that are critical for american medicine, the first liver transplant, the first implantable pacemaker, nicotine patch and a bar code to connect patients with medicine. we have to make sure we have a robust bea and so is because the this change i am thankful that you and your oversight role and others will be helping us get through this change and develop this robust system that this country and our veterans need. thank you. >> i want to again thank you all for your service. >> mr. secretary and everybody at the table thank you for being here today. you are excused. [inaudible conversations] [inaudible conversations] >> i invite the second table to the panel and welcome mr. carl blake the associate executive director of the government relations paralyzed veterans of america who is going to be testifying to the committee on behalf of the co-authors of the independent budget. accompanying mr. blake is mr. mr. joe vilante director of dav. mr. ray kelley director of national legislative service veterans of foreign wars ms. diane zumatto national legislative director of amvets. we are also going to be having testimony from mr. en's de planque legislative director of the american legion. mr. blake you are now recognized for five minutes. >> thank you mr. chairman and members of the committee. on behalf of the co-authors of the independent budget city near the table i would like to thank you for the opportunity to testify on the 2016/2070 budget. our ask that our report of independent budget for the department of veterans affairs for fiscal year 2016 and 2017 be admitted into the official hearing record. >> without objection. >> thank you mr. chairman. let me begin by saying we believe this is probably the best va budget we have seen in my years being up here on the hill. that being said recent media reports have pointed out that the a's have hundreds of millions of dollars in resources carried over in recent years. the va has done a questionable job of managing and sufficient resources that have been given in the past that we believe the axis problems in the long waiting lists identified over the last year clearly affirmed that point. however we also believe the va prior to this year has continuously requested and sufficient funds to adequate provide health care and benefits services to veterans. congress has given the administration virtually everything it has requested yearly but that certainly does not mean the va has requested what it truly needs. perhaps the office of management and budget would have something to say about this. this does not mean the va should not be properly scrutinized for what it does bender does not spend. we wholeheartedly support this notion but it should be screwed me grounded in facts not in rhetoric or poorly formulated assumptions. the independent budget recommendation represents our view of the actual resource needs of the va to provide services across the entire spectrum of programs and their views are not quantified by a particular gender politics. despite the closeness of our requirements development for the administration released its most recent budget request. it is not bloated with unnecessary resources and ministries supported i'll call your attention to the clear differences between our recommendations for budget line items general administration an i.t. to affirm that point. our recommendations focus on areas for services medical services major and minor construction to veterans benefits administration national cemetery of administration and other key areas. the couple of those areas were identified in our policy agenda we released in january. those include women veterans programs and caregiver support programs and we appreciate the emphasis the committee is put on these two areas. we appreciate the fact that the committee held a hearing back in december to review the caregiver support program. it's a high priority for many of our members. those issues are particularly critical issues in this years budget. clearly they are wide-ranging opinions about how the va manages it's capital infrastructure. we have no doubt the va construction contract management has been a disaster. the only people to suffer the consequences of these failures are veterans seeking care particularly in the denver area. none of this changes the fact that the va has a future backlog of valid building projects at various stages from initial planning to near completion. nevertheless we believe the va has not shown the level or degree of commitment in its request for resources to get all of these projects moving in the right direction or to complete them. we stand with the committee to resolve these construction management problems and we hope that will be done quickly. lastly i would like to comment on a couple of pointed and raised here. with regards to the question about costs for care we are certainly not expert but i would suggest in all of the briefings i've received about the bees help your role in projection model wanted to know how it caused a particular procedure in any region of the u.s. at that model would produce number. that is what we have been told over the years when we have been briefed on this so what i would expect the committee would want to know how much to do a colonoscopy came up in the cost for care hearing that the va can produce a number. we appreciate the fact that the va is committed to providing better information with regards to cost for care and we look forward to having the opportunities to review that information and lastly the question about choice program which the va has brought out into light of day. i think independent budget probably agrees with the principle the secretary is laid out that it should be obligated to spend that money's been given for one singular purpose. i thought the secretary's analogy that he used about gas versus food to perfectly describe the need to shift money around. that being said i'm not sure we agree with taking a program now that is clearly in its infant stage predicted the program has to be given time to flush itself out and see what occurs. three months of circling out of time to do a thorough evaluation of the utilization of the program. until there has been more time to fully evaluate what would happen i'm not sure we support what the administration has requested. with that mr. chairman i would like to thank you for the opportunity to testify that be happy to answer any questions you and the members the committee may have. >> thank you. mr. de planque. >> i would like to thank secretary mcdonald and his staff for their words today. i'm very fortunate to sit here and speak on behalf of the american legion for a national commander bicom for the 2.4 million members throughout the country that make up the backbone of the world, nations largest wartime organization. they focused on getting things right not just for members but 20 million members beyond that people struck by something secretary mcdonald said earlier today. this is a team sport. we can't do it by ourselves. i think everyone agrees the country owes a great service to the veterans in the country owes a lot of things to veterans. i think everyone here at the table and everyone in this room know that we work together on this. i have spent two of the last four weekends at various grassroots in nebraska and kansas with blue cappers like myself who were there out there wanting to go out and go into the va hospitals and health out in whatever way they can. we had over 7000 legionnaires donating almost a 1 million hours of volunteer service to va. this only works if we are all on the same page and ranking member moran you mentioned earlier h.r. to 16 is an important resource and tool that would help with that. i think we agreed and in a legislative hearing there was a lot of agreement on both sides of the aisle about that. we have to be able to look back to compare these things. i was speaking with a colleague of mine about strategic capital investment plans and whether or not they are putting enough money into these things. american legion four years ago was talking about looking at the ace construction figures. was going to take them 60 years to complete the 10 year plan if they went forward with those numbers for trying to compare the figures together you are pulling up a budget from one ear and trying to hold it next to another having it all laid out their before you were all the stakeholders can participate. chairman miller when that bill was up in the legislative hearing you spoke about the transparency and we need to have that same kind of transparency planning for the va budget so we can maximize the resources that everyone is putting into this. we have a lot of great organizations. we have a lot of great veterans out there trying to make this a better system. we believe in the va system. we believe the choices are important because we have to get access to care for veterans but we want to make sure the veteran still have access to that system. secretary mcdonald talked about the demand expanding beyond b.a.s capability. we need to make sure the resources are allocated to meet those demands that we can't lose sight of the focus. the va that we want to be the leader in pioneering medicine that is the utmost expert in so many conditions. you look at traumatic brain injury preview look at post-traumatic stress disorder. you look at amputation injuries. there is no reason the va should not be the world's leading authority on that and we need to make that happen. that comes from everybody working together and everyone being on the same page. american legion is devoted to that. the a's request for an additional 770 full-time employees who work on the claims backlog it's important and it's a good point they have been given more staff and were supposed to have been increasing their productivity. you can't deny the fact that they have been on mandatory overtime for four years. go through four weeks of mandatory overtime so you might have a bit of a problem. for years on mandatory overtime you might not have enough people to do that. we don't know how many people we need and that is why we need to be able to look these at these figures on the same page together. working together we can do that and we are very committed to being a major partner in that in helping to drive that. we want the system to be the best it can be for veterans. i think the committee has been generous in giving budgets to the va to work with and we need to keep working on the same page we can accomplish that. thank you for having the american legion here to speak on us and thank you to all the veterans and i look forward to for questions. >> thank you very much free testimony. i would like to ask either of you if you would the critical components and probably one of the toughest things to secretary is having to be confronted with is going to be closing outdated substandard or underutilized facilities. it's not easy politically. it's not easy as the secretary have already alluded but i would like to know if you feel like that's an important step that the secretary has to look at. >> mr. chairman i will to defer to my colleague. >> mr. chairman absolutely. if ea is holding property that it no longer uses orts underutilized they need to find out how to get rid of that property but in the process of figuring out how to get rid of it they need to have that conversation with the community to ensure those veterans understand they are going to be services still there. my hospital is going away and therefore my services are going away. they need to understand that continuum of care was to be in the community and is just going to be the right size for that community. there's no need to spend $3 per square foot to maintain a building that is no longer being used. >> if i could dovetail onto that the thing that comes to mind is hot springs which the american legion has been involved in that community desperately wants to keep their medical center. i can absolutely understand if you have an unutilized building taking up into money and not serving veterans in the community. certainly there are probably regions words not affected but we have to make sure veterans are included as a part of the planning process and they are being listened to. there has been a tremendous amount of frustration and hot springs that the community is vehement and has been organized and has tried to avoid it at every step along the way. we need this facility here. this is serving veterans in the area and they are concerned that is not being heard. it's important to be able to open up to some possibilities but let's make sure we are still serving the veterans. >> any other comments? >> mr. chairman i would only add one thing we would caution as they make a determination -- determination of where facilities are unutilized we have talked for years about using some of the base for the homeless veterans issues and one of the challenges of homelessness is having supportive housing that allows them to transition to finding a job and being able to become a productive member of society. before they choose to close a facility i would hope they would think outside of the box in some of the areas where these facilities can serve a purpose. that doesn't mean some facility shouldn't just be closed especially if they are sitting empty and have been sitting empty for too long. >> mr. blake where specifically do you think the administrative costs within the va could be reduced and where could those funds be reallocated. specifically we are talking about page three in your testimony. >> i would suggest mr. chairman from the perspective of the recommendations we have made we have sort of stuck to the same principle over the last couple of years that we have directed most of our recommendations at the services line where the rubber meets the road for providing health care. there has been discussion about the general of ministers and line items have allowed the office here in washington d.c.. we have also had conversations with the committee staff about the administrative cost that exist across the various layers that exist within vha. we are interested to see the plan to transition to the regional framework of the va. what we would certainly hate to see as we transition to a fiber channel and where we go from 22 with 150 staff to five regions that are just those people shifted into regional alignment and we didn't streamline your ministry of support at all. >> if i could the secretary asked mr. coffman to ask a question to the vso's and since mr. coffman is no longer in the room i will ask the question on behalf of the secretary. have you seen a difference in the va? >> mr. chairman the fact that the secretary and his leadership team are still here answers that question. i think we are all impressed of what he and deputy secretary sloan gibson have done in the short time they they have been here. i would have to say yes we appreciate what he is doing in trying to do and hope you will work with them to make sure these changes happen. >> mr. kelley. >> we see a difference in spots. they are going to be areas that are slower to change than other areas but we are seeing pockets of improvement. just solving the problem in west l.a. but the plan management issue in a short time is something that has been around for years is an indication that he is hands-on and he's going to get things done and he expects people at all levels to do the same. >> my time has expired but could i just get a yes or no? >> i will give a yes. >> mr. de planque. >> definitely a yes. >> ms. zumatto. >> i agree with my colleagues. >> i agree too there's a difference and i would also say ms. brown's h.r. 216 is scheduled to be marked up tomorrow and so we would expect to see that pass very quickly. ms. brown. >> thank you. i would like to associate myself with her remarks to the gentleman from florida. i absolutely think it's a change in va and it changed in a positive direction rude when you talk about va i remember going to l.a. and we have four brand-new units sitting for over two years that we have built those units, 400 units four separate buildings that stood vacant for two years because we built them but the state of california did not have the money to operate. we have got to make sure this does not happen in future and i'm very pleased he was able to go in and resolve those issues. for the first time we have forwarded a budget in all categories. can you give me a response as to how you feel about how this is going to help the va move forward? i just want to hear from all three. >> i would say ms. brown we would offer support for legislative hearing at the legislative hearing it a few weeks ago. i think mr. de planque have an important point. allow more transparency as it develops needs going forward. i would also suggest that you know the secretary what i appreciate seeing as i believe it is the first time i've seen va takes areas is required as part of the preparation process. for the last several years until this past one of our chief complaints has been that the congress passes an advance appropriation as requested by the va and then the next year there is no real adjustment or consideration given to how that should be adjusted. this is certainly the first year i can remember were a substantial analysis review and free estimate has taken place so we appreciate the fact that this leadership team in particular seems to have taken this requirement far more seriously than in the past. >> i also want to note, you're not going to have veterans who are worried about not getting their checks. they can get a budget passed and i'm not worried about that immediately but that's important down the road. i also think the planning component going along with your legislation is a critical handshake with that bill. the ability to plan the forward funding things and to look down the road at the anticipated results. i think they are hand-in-hand with each other and helpful. >> let me mention when i first came here we were going per process and of course we support closing some of the va facilities but keep in mind as long as you don't in florida but that's the mentality of the members of congress. as we work through it we have to keep in mind it is a team effort and as communities need to have input and involvement and we evolve as to what we want the va to look like. we are sitting up here saying this is the best thing for the country but when they go to some little place in hot springs that community feels they are going to be disenfranchised so the question is how do we have everybody involved in those decisions? don't think that politics doesn't play apart because when when you get ready to close it when they scent at weizen and we are interested in what is best for the country that is not isaac hayes. so i want to thank you all for your service and for your presentation and any closing remarks? i have 30 seconds. >> i would say this ms. brown. it's nice to see see some other folks have been more open to dealing with us on a more regular basis. i've had two briefings on the va model and their costs for care. since the cost for care hearing two weeks ago prior to that her last hearing with the va employees on the health care model was back in 2009. they are clearly in tune with the concerns of the committee and the concerns we have reason trying to get us involved in discussions with know what they are doing. whether we necessarily fully supported at least give a better idea of where they are going and what they're doing. >> i think i've been over there four times at 8:00 in the morning and i want to get the entire community over there to review like a town hall discussions that we have a better feel as to what's going on over there. i think it's very exciting to have the employees involved in what we are doing not from just the top down but the input of employees too and veterans. thank you mr. chairman. thank you for the hearing and i yield back the balance of my time. >> thank you very much. dr. abraham. >> as a new congressman and a new member of this committee i am honored to be here and six weeks ago i was a practicing physician that was privileged to see veterans in my clinic. i am jumping up and down for this choice program. my question is on these guys levels are you getting feedback on the implementation of the choice? is it working? is it fairly seamless? where is it stand from your members perspectives? >> the vfw has commissioned a survey fair membership to get feedback and we are doing a two-part survey. we cut it off at the beginning of this month so for two months period we have found a good portion of the veterans who called for an appointment to va when they interacted with the va to get an appointment were not told they had a choice. now that we are in the second phase of this survey where finding more veterans are understanding they have a choice choice. va employees are being educated to provide that choice so we are seeing that trend go up but at the same time early on the perception of choice was positive an experience of choice is positive. there seems to be a trend now that it has gotten more people and it that there is a slight downtick in people's opinion of it about the care they receive. it's something we'll continue to monitor and we will have a report sent. >> i wanted to touch on that because i recently talked a number of people. one of the biggest concerns there was a lot of confusion over whether people work eligible. we get calls from the office in d.c. as well. we have been working hard to educate better about that. the 40-mile straight line when you're in a rural area i am close to the clinic but the clinics don't have the services they need as was mentioned by mr. shields camp in camp -- kansas. if you are driving 40 miles to get summer so there was a lot of concern about that but we have heard feedback from members. as far as to whether they want to use the choice program or the va we have people that have been happy with the care that they got at the va. they want to get back into the va. on the other hand some people were excited about the options. we are continuing to monitor that and the biggest part we have noticed early on is the confusion about eligibility particularly with the 40-mile circle and how that interacted with the condition they had. >> i think the playing field is unlevel and we are trying to evaluate it. we can say that won the va doesn't have to meet the demand as we see it. the same time we don't know the private sector truly has the capacity's the private health care system that they might find challenges. we find challenges using private insurance now by trying to get an appointment for specialty at george washington university in town but be six months. there were challenges on the va at the private sector side. allow the va to get its footprint firmly planted by expanding its capacity and i think we can do real thorough analysis. >> from the dav standpoint we are getting ready to go out with a survey of her members to see what they're hearing. we are not hearing complaints. there's some confusion as has been said. i get x amount of miles for travel but then i apply for this and they tell me i'm not that far away because that's the way the law was written. we are more concerned of being forced out of the system thinking if they live more than 40 miles away for have to wait longer than 30 days they wouldn't be able to come to the va and that concern them greatly. >> this information is available. i think what we envision here is the veterans who needs primary care and i don't mean to minimize going to choice dr.. he has the option to go to the va facility he wants. we just wanted seamless for the veteran but i guess my question was are we slowly attaining that goal? >> right now it's early and in terms of making analysis about the utilization of the program is and understand the secretary stated before it wasn't so much about what the utilization was and trying to give a warning light that they might need to be appropriate. for us it's a little bit early to make decisions about that because people are just starting to get their feet wet with the program is something we are and the groups appear are watching closely to see how this interacts. >> i'm out of time. >> mr. or work. >> thank you mr. chairman. the secretary and his team are here and i want to make sure it's noted for the record. if we are going to be successful on this team approach is going to take all of this literally being in the same room listening to each other. i want to ask any table 2 -- anybody the table to respond to this. the president mentioned working collaboratively in terms of how we build medical care beyond this question of the choice act. an example we talked about last week in the hearing was as possible $604 million now 1 billion originally supposed to be affiliated with an academic institution and affiliation that was broken. i couldn't help but get the sounds veterans in the area and perhaps were insistent that be solely a va facility and that might have cost consequences. what is your openness or what are your thoughts in this idea of working collaboratively and involving non-va institutions in the provision of health care or development of facilities or organizing how they can live without health care in a community like el paso. i don't know that we need a hospital and i don't know if we can get a one million-dollar facility so we may have to work collaboratively. if i could start with you and work the way down the table. >> we have mix feelings and we have seen other facilities particularly dod facilities where pov -- dod is coming together. the troops get deployed in the service to start lacking but some of the facilities in great lakes may be working fine but their federal va emphasis. depends on the area and how it's structured. >> we have to look at every option. we have to look at building stand-alone va hospitals. we need to look at public-private partnerships in intergovernmental partnerships. we just have to. it has to be right-sized in the services need to be in place for veterans. every avenue not just with university hospital's partnerships but with county hospitals and city hospitals. as they start planning what they are going to replace for their needs if there is room for va at the same campus and it's a co-purchase and services are interoperable to include you mention sitting county but to include private sector in an area where there's a gap and va care. >> mr. blake. >> it would be unreasonable to think they shouldn't take advantage of the opportunities and partnerships to maximize the opportunity for health care. that being said you mentioned aurora. part of a the problem with that over the years was figuring out i can remember a time when the vision was a joint facility that have a mix of veteran patients and non-veteran patients. he you ran into challenges with something as simple as identification of the two and then he got into more complicated issues like governance and prior give access to service they have to be careful when you get into that concept. the denver issue is clearly, think it's even more unique than las vegas and new orleans that are going on in orlando. the denver project has been going on for 20 plus years now. if nothing else veterans are being left unsatisfied because there are many promises that have been made and it's a clearly underserved population. >> i think it clearly is important and it clearly is a country that takes care of veterans. we have seen in the past work in conjunction with va facilities and they are great partnerships that can be achieved there. obviously the va is at the core of that. there is a reason our veterans like the va. they understand them but at the same time if they are going to be innovative and if they are going to be leading the way like i was saying leading authorities on tbi and ptsd that's going to involve partnership in finding the best. >> mr. chicken i have 30 seconds for ms. zumatto? >> i would say well be a certainly has many doctors and experts they don't corner the market. there lots of people in the civilian community who could bring new ideas research and other possibilities. to say we shouldn't be considering public-private partnerships i think would be a serious mistake. >> thank you all for your answers. >> thank you very much mr. brown. do you have any other questions? no sir thank you for this hearing. >> thank you very much for being here. we appreciate it. expect questions to the second panel post hearing questions and to the first panel. there are some issues we were not able to bring up given the time that mr. secretary thank you for staying through the entire budget hearing and without a request that all members have five legislative days to revise and extend their remarks could without objection so ordered. this hearing is adjourned. [inaudible conversations] [inaudible conversations] [inaudible conversations] thursday in the u.s. senate members -- wednesday the government accountability office said minutes as high-risk lists looking at government waste and inefficiencies. the house oversight and government reform committee held a hearing to examine the report and hear from the heads of agencies cited in the assessment. this is two hours and 40 minutes. >> the committee on oversight and government reform will come shorter. the chairman is authorized to declare recessive and 10. we have an important hearing today and we appreciate the people that are here to participate in that. we also appreciate the patience with those on the floor that will be called a little bit later. that always serves as the primary thing we do in the afternoon around here so we appreciate your patience. nevertheless we do have a very important hearing highlighting the general accountability office is high-risk report, five years of problematic practices. this year marks the 25th anniversary of the gao's high-risk list. i have a full statement but in the essence of time i will insert those comments into the record and with my other members to do the same. i would like to recognize the ranking member mr. cummings. >> thank you very much mr. chairman. i'm going to do the same. i want to thank all of our witnesses and i will submit my statement for the record. i want to always as usual thanks you mr. dodaro and the gao employees to do a great job. with that i yield back. >> thank you. i will hold a record open for five legislative days when a member who would like to submit a written statement they would like to recognize our first witness. jean dodaro comptroller of the united states government comptroller office accompanied by a panel of experts and on behalf of both of us in his whole body we thank the thousands of men and women who served in the gao who work hard to create a work product and presented here today. we welcome all. pursuant to committee rules the chairman will be sworn in before he testifies and swear in the panel behind. if you could all rise, please. if you rise and please raise your right hand. do you solemnly swear or affirm the testimony you are about to give will be the truth the holster the nothing but the truth? thank you. let the record reflect all the witnesses answered in the affirmative. mr. dodaro have testified before to me several times so we will give you great latitude that we would appreciate you summarizing your comments and then your entire written statement will obviously be made part of the record. you are now recognized. >> thank you mr. chairman to get afternoon to you ranking member comings and members of the committee. very pleased to be here today to discuss gao's latest high-risk update. we do this at the beginning of each new congress to identify areas we believe are at the highest risk of fraud waste and abuse and mismanagement in the federal government to need a broad-based transformation. a report today discusses solid steady progress in most of the 30 high-risk areas that we have had on the list since our last update in 2013. of all the areas according to five criteria to get off the high-risk list you have to have leadership commitment top-level attention. you have to have the capacity to resource people with the right skills to be able to fix the problem. you have to have a good corrective action plan that addresses the root cause and good monitoring effort with milestones and metrics and engage progress and demonstrate you are fixing the problem. you don't have to be 100% fixed but we have to be convinced we are on the right path to rectifying the problem and reducing the risk and eliminating waste and improving government services. of the 30 areas 18 have at least partially met all five criteria and 11 of those 18 have at least fully match one or more of the criteria and partially met the others. two areas where recognizing progress so that we are narrowing the scope of the high-risk area versus fda oversight of medical devices. we are pleased with their efforts to get the recall process under better control and discipline and also to have a good process to review the applications for new devices on a more risk-based approach. we are so concerned about the need to oversee the global marketplace for medical products and drugs. 80% of the ingredients of active drugs come from other countries. about 40% of finnish drugs than half of medical devices. we need to do more there and also it to address drug shortages. the secondary as contract management. we believe the department of defense is focused more attention on top leadership on contracting techniques and reducing the risks associated with contracts where they start contract work without having a clear agreement that the contractor or they're using time and materials which is a risky approach rather than having deliverables. they still have to improve their areas in their opposition workforce, service acquisitions and improve their use of contracting and operational environments to support military operations in the theater. we are adding two new areas to the high-risk list this year. the first is the a's provision of health care service for veterans. we are very concerned about this area. there are five fundamental problems we have identified, ambiguous policies inconsistent processes inadequate oversight and monitoring of the activities activities. i.t. challenges, inadequate training of staff and unclear resource needs and allocations. congress has passed legislation recently. we gave them an additional $15 billion to help address this problem and legislation had to be implemented properly. we have over 100 recommendations that we have made to the a that have yet to be fully implemented so this is an area that needs congressional oversight and continued attention. second their i.t. acquisitions and operations across the federal government too often the federal government and we enumerate this the senate report, there's a litany of efforts that have failed after spending hundreds of millions of dollars and many years. there is a longer list of problems with her cost overrun schedule slippage is where slippage is what they fail to deliver the promised functionality and make improvements in the program and delivery of services. here again the congress has passed legislation late last year. this committee was benjamin told passing legislation of the federal technology reform act giving an additional authority to put in place better practices that have more disciplined approaches to i.t. management. here again in last five years alone we have made 737 recommendations and only 23% have been fully implemented. we believe this is a critical area. we are also expanding two areas in the administration's tax area. we have been focused on the tax gap which at last count was $395 billion. we are expanding that to include identity theft and the irs was able to stop about $24 billion in fraudulent returns potentially but they missed by their own estimates about $5.8 billion. we have fixes to this that we can talk about in q&a. we are also expanding cybersecurity and critical infrastructure protection to include privacy issues. initially we designated computer security across the entire federal government, the first time we have ever done that in 1997. we had a critical infrastructure protection so most of the computer asked -- assets are in the 2003 and now there's a lot more incidents involving personally identifiable information. the number of incidents have doubled. the privacy law was passed in 1994 and is sorely in need of updating. we have a number of recommendations to protect the sensitive information. the american people deserve their information to be protected properly while we address the cybersecurity issues. thank you for the opportunity to be here today and look forward to answering your questions. >> thank you. we will now recognize the gentleman from georgia for five minutes. >> thank you mr. chairman. one quick question thank you for joining us this afternoon. since enactment of the veterans access choice and accountability act i have a number of veterans in our district who because of their location where they live they have not been able to utilize the va medical center so they have opted to use non-va doctors and so forth. one of the issues they are facing are significant delays of the va pain goes medical providers. is there anything that the jal plans to do in the future to evaluate this issue and to report on it in the future? >> actually we have addressed that issue and issued a report talking about the problems they were having in paying providers in a timely manner. we are also concerned about the fact that the va doesn't always have information to make sure they are making the right decisions in terms of whether they should be providing care for access purposes and for making sure it's a cost-effective approach. her secretary is expert in this area. we have already addressed this issue in the plan to follow up. >> we actually conducted work a year or so ago and we made a number of recommendations around infrastructure surrounding the non-va care. a lot of the issues were not paying claims promptly. we do have concerns about non-va care and we have concerns that it may not be the panacea that people envisioned it to be. there is not really the infrastructure in place or wasn't in place when we took a look at the work. you are talking about putting people, the va system is a difficult system to navigate so now you are asking them to navigate another system outside of the va. there a lot of issues around non-va care and the other issue is wait times for non-va care is not on track so no one knows how long people are waiting to get care in their community. there a lot of issues and is something we'll be looking at. the choice that does have several mandates to look at non-va care. >> obviously the concern is that these payments are slow and i am fearful that her veterans will receive diminished health care across-the-board and that is my concern. i yield my time. >> i'm concerned gym will stay on top of that. >> i now recognize the ranking member mr. cummings from maryland. >> thank you very much mr. chairman. mr. dodaro one of my major concerns has been drug shortage and 99% of all hospitals in this country have drug shortages. there are people mr. dodaro as you know who are unbeknownst to them getting second and third rate roads and even my own district 1 of the number one hospitals in the world johns hopkins they have told us that they have those problems. can you comment briefly on that and where we are and what we can do about that? >> is very important issue congressmen to one of the things we have suggested to congress and they have ads on that board drug manufacturers didn't have to notify fda if they would have potential shortages and now they have to provide adequate notice ahead of time. that was one step in the right direction. marcia cross or expert in the area will talk about work is done in recommendations we have made to address the issues. it's one of the reasons the va is on the high-risk list. >> congressmen we agreed it's a big concern and one of the areas that's keeping fda on the high-risk list. as the comptroller general mentioned congress to take action to require dense notification to fda if the manufacturer was going to produce a drug. congress a little over a year ago and acted the drug quality and security act that we believe can help particularly with this issue of substandard drugs because it is enacted requirements for tracking of drugs to the system that can help reduce the possibility of the grey market drugs that i know you have been concerned about and counterfeit drugs getting into the system because there will be a system of tracking. it's not implemented and it will take a number of years to go into effect. that act we think also has potential to address that. we are continuing to track drug shortages and we have ongoing work. we no the number of shortages are coming down but there are still some better persisting for long periods of time for multiple years for certain drugs. >> i'm glad that her committee plan to locate generic drugs. again every single member of congress has this problem and many don't know it. the drugs are going up some times as much of -- as much as 800 times. a lot of it's it is about. the book may go into another issue. the whole issue of cyber you know i just want to read from your report mr. dodaro and you say quote increasing accuracy with malicious intent and the extent to which federal agencies and private companies collect sensitive information about individuals have increased the risk of personally identifiable information being exposed and compromised. that is inaccurate statement come is that right? >> yes. >> your report goes on to say that quote number of security incidents involving federal agencies increase significantly in recent years the number of high-profile pieces have occurred in commercial entities. for these reasons we had a at protecting the privacy guide in this area end of quote so your report highlights the fact that both public and private sector entities. one thing these attacks seem to have in common is that hackers want access to personal information as many americans as possible. that's a major problem come isn't that right? >> that's exactly right and that is why we are adding -- though they are projections by informed parties that the amount of information collected stored and disseminated will double and triple every two or three years so this problem is on a trajectory to get a lot worse before it gets under control. >> so this could be anywhere in new orleans come is that right and they could be state sponsored or international criminals? they could be domestic actors or any of the above. is that right? >> yes. tonight i see you have your fellow cyber expert handy here. what can we do about that? please identify yourself. >> my name is greg wilshusen and i think they're a number of things we can do to collect information first with the federal agencies. agencies need to implement security programs that adequate protect the confidentiality and integrity of their information to include not only identify information but other information. we have found over the years that they have not done a very good job. for example in fiscal year 2014, 17 out out of 24 agencies covered by chief financial officers have reported either a material weakness or significant deficiency in their information security controls for financial purposes. ig had 22 of the 24 agencies identified cybersecurity or information security is a major national challenge for the agency. >> thank you mr. chairman. sin i now recognize osama from texas mr. hurd for five minutes. >> i enjoyed reading your report report. one of the questions i have 80% of the administration knows to maintain legacy systems. many of those system most americans would be incredibly out of date. .. spinning the 15 billion on new developments put operations and maintenance. maintenance. we have inefficiencies consolidation. about $10 billion on the table as we consolidate data centers appropriately. >> the report highlights 10,000 data centers. on the major federal agencies right now. focused. probably not going to be another $0.5 billion. move the inefficient spending. >> thank you. my question play an important role and oversight governments. >> others that aren't. that's why the the conventional issues, instrumental in passing the time. the been instrumental going forward. they need to be held accountable. it is to be more uniform we should achieve those goals. on the area area of accountability, how long is the with gal? >> this year and 43 years. >> people have benefited been picture was a result of it. i can't believe any specific personnel actions of them but they're have been people suddenly retired. so i yield back. >> with my colleague you'll just for a 2nd? brought up an important.on cios and other legacy. the bill does address all three things. the mande status in the consolidation also requires 3rd 250 people spend out. so rather be. accountable. so that's what hopefully with the implementation of the bill we will see progress. >> thank you. the gentleman yields back. the gentlewoman from the district of columbia. crossover on at the defense department will be gone. >> am very interested in this i was closed. eleven listening for a long time and i never knew much about how you get on it how you get off it. considering that gal must look at what must be hundreds or thousands of agencies in order to drive's list. i must say whatever there's good news it seems to me this committee are to be the 1st to know, but i didn't no our study your 1st page commences progress has been made in the vast majority of high-risk areas. i don't believe of significant language for your reports. you say that so i would like to no how you get on it and how you get removed. >> via publish criteria published criteria that we very with the executive branch years ago. how you how you get on as we look at in quantitative terms for at least a billion dollars in risk. there have to be issues that either a public safety issue important to national security economic security of the country risk of program failures, programs actually not achieving their objectives and so there is a long list of factors. we also look as to whether or not the agencies have corrective action plans in place. if they have a plant that looks like it we will be good it may be successful we may hold off. the agency sustained. the numbers and resources to be able to fix the problem. interim milestones and metrics and demonstrate that you are fixing the problem. if if you meet those five criteria come off the list. part of the high risk area winner of that. likely mentioned this year we did in two areas. areas. so that's how you do that. >> i noticed the 2nd criteria mentioned the word resources. would it be fair to say that a a significant challenge for getting off the list would be a scarcity of funding? >> well, my resources we mean the skills necessary. >> i doesn't mean funding at all. is funding a significant challenge. >> it could be. it could be that they are using the funding may have very well. it doesn't necessarily mean that they need more funding. >> could i ask you what congress can do assuming that congress is not going to do much we will well taken area of specific interest to me real estate. that is the area the federal government's government's handling of its real estate portfolio has been under constant criticism. can you tell me how considering the leasing and construction how real estate portfolio is formed. >> first, i would say in the high risk list we have asked ruggeri is whether congress is to take action in order to help address the area. there is a substantial a substantial number of the 32 areas that we have already designated. postal service is one, cyber security is another. financing the nation's transportation infrastructure is another. we have designated major areas where congress needs to be part of the solution to the problem. problem. and the real property area where congress can do one of the areas on the list is the overreliance on leasing. we have tried to convince the agencies to put forward a case to the congress this is to one welcome our it would be cheaper to own this particular property rather than release these properties, but they have been reluctant to do so. we think the congress often mandate that they do that were also underutilize the properties that the congress could give additional authority in pilot areas to try to provide these things. there are a lot of barriers we have identified that the congress to help alleviate for the agencies to do this, but they need a good strategic plan. they have not yet presented the congress with a good strategic plan. we have have recommended it. there working on it right now. there are hopeful to see it. hopefully it we will provide a good for them in the congress. >> thank you. very useful. >> where it's warm >> and rather be from florida right now. have you ever seen the movie groundhog day? >> yes. over and over. the seven. >> well welcome i'm sitting here and i swear a lot of the recommendations are the same recommendations you brought us before. i segue from this mortons and your comment. frankly, i just read the chairman myself. we have been interested in excess property. and you can't get people to move on dealing with excess property. i think we found 14,008 gsa then we did the 1st hearing. but an extra 13999. we got about six more in we got about six more in vacant property. but am only going to be hear so long. even this guy is young. we can do a hearing on every property. what concerns me, and you just said it in your report file in the in conjunction with landholding agencies could improve its capacity in action by implementing this report we will to see where the flaws are know problem with the data property. >> that's right. one, they didn't no what property they had. they didn't no the condition of the property they had. you didn't no the status of the keep in. i downline. they gave us lists that we checked that showed that what they were giving us was totally incorrect. >> that is correct. this is something's happening for some requirements for these agencies. if omb won't do what we can do it statutorily. i know he's committed to get the bill through the house and the senate that we will would get a handle on this we have to have triggered from milestones, some measure of them achieving a goal or performance. >> like any major mental form that has been successful over time as a statutory underpinning. that will transcend administration. >> coming soon. >> the german from virginia. >> thank you, mr. chairman. this is maybe five i actually really look forward to this hearing every year. i congratulate jail for the intellectual underpinning of identifying these risk categories. it's an incredible helpful public policy document. i hope it's a youthful management tool. so much of what you're talking about is all about our agenda. agenda. hopefully it we will also take it to heart and respond accordingly. you actually endorsed our bill. how important is it to that that get implemented? >> it's very important. as one of the reasons actually that we put it acquisitions of operations on the list in order to elevate attention to make sure the bill is implemented effectively. >> if it doesn't have attention and am also concerned going to the last two years of this administration, it has to be sustained in the next administration is critically important. it it gives us in the congress needs to hold people accountable. it's absolutely critical to rectify this problem we have identified. >> and there are real potential savings. >> absolutely. and the billions. >> in the billions, mr. german and original work on a bipartisan basis to have oversight hearing with respect to this whole subject you're familiar with the 25-point implementation program that was issued september 9 2010. >> yes. i'm familiar with it. it. i'm joined by our it expert. >> and i assume that you both -- was that a helpful document in terms of laying out goals and objectives. >> sets the foundation going forward. >> and for example when it talks about funding of major it programs on they would at least three basic criteria the program team use a modular approach with functionality delivered every six months. the huge multiyear complex systems integration so that there easier they are easier to manage and use specialized it acquisition professionals. do you do you think those are three helpful criteria? >> absolute. >> did we follow that advice from the white house itself when the website for the healthcare rollout was occurring? >> no, we did not. >> so hopefully the guidance that was issued from the white house in an embarrassed. >> was issued nine factors that are critical to successful efforts that have been put in place. there's guidance best practice. the basic problem that i've seen over the years is a lack of discipline to follow good practices. we get off the rails. no one is held accountable. think of mental development. one of the basic tenants of 1996 1996 legislation. i hope congress work on passing it. it just hasn't been implemented. i commend this committee for your recent legislation look forward to working with you, but it we will require congressional oversight. >> a lot of what we did was codify recommendations and so hopefully it we will be seen that way delays management tool. some very significant efforts. >> efforts. >> better services to the public. thank you, mr. chairman. >> the gentleman yields back. >> the work for the gal. been very helpful to me on this committee. a been hear 26 years. when i tell the newer telling your members they look at me like him from outer space. my my main committee has always been transportation and infrastructure community >> he seems like a good man. i just want to say that i think the gal does a great job, and i appreciate what you all do. >> thank you very much my know they're are other witnesses you want to no what his magic is. >> recognize the gentlewoman from the virgin islands apartments. >> thank you, mr. chairman. good afternoon, sir. i really wanted to thank you for all the work for your agency does and to talk to you about one of the primary things that you all do uncovering waste and fraud and abuse and identification of the risk of integrity of the federal program. we know however, that there is also best practices that your agency tries to identify that only for the public sector but for the private as well. and we understand now that the cyber attack is not just on the federal agencies but also on private. private. we know we have heard about home depot and the compromise is about 50 6 million companies in credit card and debit card information as well as anthem, the nation's second-largest health insurance company with more than 80 million records that may have been compromised. i see that one of your colleagues. >> or cyber expert. >> great. >> we sent the cyber question. >> you sense very well. one of the things i want to talk with you about is this notion of segregating duty. if you could explain what that concept is and how it works. >> yes. it has been been one of the major problems identified over the years. greg can explain the importance. >> it is vitally important. protected from unauthorized modification and basically relates to the activities of one individual or group are countered by the activities were overseeing, if you will, by the activities of another group. one group. one group does not have full control of the transaction or of a process in which you can then perform unauthorized activities without protection. within the cyber realm and often relates to having, for example, software developers being able to operate in the production environment where real-life actual data is being processed because it could potentially make undetected changes to the software processing that data and you don't want that to happen. software developers in this case should be confined to a development environment. >> my understanding, and i'm not -- my children will tell you i have 25 i am a lead eight, i have no technological knowledge, but kind of like a submarine when there's a leak in one area you can close off at section and then another area where the leak occurs does not affect the other areas of the segregation of duties. is duties. is that occurring now in the federal agencies? >> yes. there are instances where they have weaknesses. i think it's about 14 agencies that have weaknesses in segregation of duty controls. in the example you highlighted actually also speaks to defense in depth and that's another security defense possible, that agencies should put layer upon layer of security controls so in the event that one layer may be circumvented penetrated that other controls help to protect the data. >> one of the reasons i mentioned home depot and anthem, we know this has occurred and other private sector areas what is the relationship that you all have with trying to assist those private sector individuals and best practices? because of the and of the day all of the systems connect with one another. >> yes. for the department of homeland security that has an overriding role within the federal government for helping in assisting with individual infrastructures. it would provide assistance and guidance. >> exhorting for years more dialogue and information sharing between the public sector and the private sector. both have been reticent for additional reasons to share information, but that is really the only way to this problem is eventually going to be solved. congress has made some overtures in this area. we believe more legislation can be helpful. >> i'm hopeful this body we will continue to assist you in making sure that that happens, and i yield the balance of lifetime. >> and now recognize the gentlewoman from massachusetts for five minutes. >> thank you, mr. chairman, linking member. good to see you again. i agree with the remarks of this may not be the most sexy hearing of the year. >> objection. >> i think it may reflect the mission of this committee. i do notice in your list of areas of concern you have a list of the 2015 high risk that the va health is on that list for the 1st time. as one of the two new areas. this designation comes in light of a long-standing and systemic witnesses -- weaknesses, excuse me inaccessibility and quality of care. we saw the problems we had down at the phoenix va my terrible situation and we also have a quite frankly, i huge increase in the number of veterans that are now for the 1st time in their lives relying on the va for the healthcare. 6.8 million veterans in 2,002 to 9.4 million enrollees in 2,015. put a huge amount of pressure on the system including 1.4 veterans from operation iraqi freedom and enduring freedom in afghanistan. and mindful that most of those folks to multiple tours. i was in kandahar province but long ago and asked how many folks run their 1st tour, 2nd tour. il the way up to seven tours of duty before i ran out of things. most of them most of them had been there three or four tours of duty. that repeated cycle does a lot of damage to the psychiatry of serving among our young men and women find that they were going to see reverberations in the healthcare system. actually the ranking democrat on the national security subcommittee that will address those. i like forward to your good work continuing in that area especially especially with some of the new implementation and we have had allowing veterans to be treated at non-va facilities if we do have a backup an appointment on command that has been a constant a constant problem for us not just in the northeast but all across america. florida america. florida is all backed up because of the number of retirees. they have had a very long backlog. some of the areas in texas as well. virginia, my friend mr. connolly. and also we we have got another provision that allows them to go to non-va facilities where there travel to a facility is more than 40 miles. so it all builds up to a greater reliance on our ability to conduct oversight i look forward to working with you. you have a great staff, our good cohort of people behind you have worked tirelessly. we have no shortage of issues to work on. i just appreciate the work that you do every single day >> how many times have you been to afghanistan? >> iraq about 14 times from afghanistan about 12 times. often times with folks that mr. todaro works with them a special inspector general's iraq construction afghanistan reconstruction as well. >> i just want to say for me you have been a model of oversight and commitment to the work in both countries. >> i would just say that only we have more veterans going back, back, but there going to be living water thanks to modern medicine. this problem will occur over decades. we need to get a a handle on it. more veterans coming back. this is a very significant long-term issue which is one of the reasons we put on the high-risk list. >> thank you. the gentleman you back. [inaudible conversations] >> late to the community because i was at a meeting on cyber security which is one of the biggest challenges we face as a nation and an area that we will work together to address. i want to mention today the assessments that you found dealing with cyber attacks. the report found that many agencies and and consistently implement the policies and procedures for responding to a data breach involving p1 one. can you explain those areas in which jail found that agencies were inconsistent in they're implementation of policies for responding to data breaches and what we do about it. >> our expert will address the. >> we conducted a review of several federal agencies over their procedures and policies for responding to security incidents. one of the things we identified is that agencies did not consistently identify the risk to the affected individuals and the harm that could occur the impact that occurred. in addition they're were inconsistent at what.they provide additional services to those. for example, whether or not to provide credit monitoring services or other types of services in order to help information is being compromised. >> and to the.of what can congress do to assist in advocating that federal agencies are being consistent in carrying out policies that respond to these breaches? >> we believe that the privacy act originally passed in 1974 is to be updated and congress should take that upon their responsibility. the privacy act deals with records and information. the definitions are very broad which leads to inconsistent application. there is not enough notice. typically in those those days it was through the federal register. so the carcass is to update the privacy act._be happy to work with this committee or other committees to do so. >> finally you state agencies may not be consistently taking action to limit the risk of p1 one related data breaches. so what specific actions agencies can take right now to improve their ability to respond to data breaches? >> one of the actions they can take is making sure that they have appropriate policies and procedures in place before incidents occur so that they no how to act. indeed, our workers on the number of incidents is climbing and every agency is affected can include having a dedicated team available that has the roles and responsibilities previously identified and trained in order to act appropriately and timely. >> finally, how can congress be most useful in ensuring that this is fulfilled, that agencies consistently take the necessary actions needed >> the comptroller general mentioned and update the federal laws protecting privacy and personal identifiable information and another is holding oversight hearings and holding agencies to account and assuring that they appropriately implement proper projections of the personally identifiable information that may be compromised. >> thank you. if no other member have a question they would like to thank the gal specifically mr. todaro and the great work that so many of you do. i asked that the clerk change the table and i would like to mention something as we do this in the absence of. thank you. go ahead and make the change. on what to talk about the artwork you see in i like to make a bit of a statement as we change out the names. if you're on the 2nd panel please come take a seat. when i became the chairman made some alterations to the artwork. i felt it would be best to highlight the people that we serve rather than the past committee chairman. i feel strongly that we should be inspired by the american people. that's we serve. they have done great things over generations of time when those of the of people we should be inspired by. we get this next panel ready i will tell you that they are all real photography real photos. i would like to start here with this one. taken by a photographer, the name a photographer, the name of charlie lantz, the ben franklin bridge. contrasting the urban setting we have this new photo that was taken in my congressional district in utah. it looks like like a painting, but it's an actual photograph. there in the distance and went to live in a very beautiful spend. the urban setting and the moral setting is part of what i want. going here on this side of this is a photo that is taken 1st published in march 1966. the photographer for u.s. news & world report. a good number of people for decades, generations of and doing good work. utah copper miners. people in the mining industry. using a rock drill machine. this next photo was taken in afghanistan. the american flag flag capturing the morning's 1st rays of sunlight forest posted from one of the peaks of the mountain. on the outskirts of galveston shot november 112010. not a professional photographer. the saga that photo that he took that day honoring veterans day. outside kabul. surgery & send in afghanistan and we honor them and should be thinking about. one of three marches. people gone to a lot of hardship. i appreciate them providing at us as well. taken on may 10. while stanford to join israel's to form the 1st transcontinental railroad across the united states bridging the east and the west together. the next photo is really the only portrait that i i would consider but interestingly enough this was 1st published in 2,006 from the library of congress, the lincoln memorial is obviously one of the best we have in this country and certainly in the united states. when he was congressman lincoln he served on the post office and post roads committee and the expenditures of the department of war committee. what is now known as the oversight and government reform committee. we have two more. this this photo comes from the library of congress. it it was published sometime between 1914 in 1918. it's of women making and cramping fiber powder containers. the company facility in chicago illinois. again can migrate to sacrifice in this country. i love the patriotic nature that we will. finally i want you to look closely at this photo of you have a chance. excuse me. this is the steel worker on the framework of the empire state building high above the city with the chrysler building, the building probably displacement back. i work. my apologies. first published in 1930. not exactly kosher wine. that gentleman sitting on the precipice of death working hard to build this country without the safety harness, without the types of things that our workers have now. a good deal of people and make these kind of dedications and sacrifices, and i'm glad that they captured a photo of it. these are the type of people i think should be on this committee weather than just the committee chairman. we made those those changes. i hope the committee appreciates that. i am honored to have these photos in here and think the members remind indulgence. >> i did know what you're going to do. but i must tell you all of those who had anything to do with selecting these photographs the absolutely beautiful. i used to say a father who had a second-grade education to my used to say that i was inspired by his aspirations and when we look at these pictures the working americans and the pursuit of happiness should inspire almost be the very best we can other ones that show our environment and it should be a reminder. the environment is is just good as or better our environment from our ancestors same thing about our democracy. mr. chairman, you really did a hell of a job. i'm right they're because it just reminds me every time i look at it for four years before that in baltimore and the rising of us little kids marching trying to integrate the pool called riverside pool. and it was all white. we were beaten so we marched in the pursuit of happiness. i am hoping that these photos will be an aspiration, and inspiration because of his aspirations of these folks that made america what is. >> the gentleman and joined us, and i would like to recognize his panel of witnesses. i am pleased to on the honorable john costigan and alan f estevez principal deputy to under secretary of defense for acquisition acquisition, technology, and defense of the united states department of defense. mr. john mcwilliams senior advisor at the united states department of energy and shouting arbor will. >> the deputy administrator and director of the center of a program integrity of the centers for medicare and medicaid services. robert amway for junior. we thank you for your patience. it's been a while to get in his this panel that we appreciate you here. all witnesses be sworn before they testify. raise your right hand to use all is well worth the testimony are about to give will be the truth, the whole truth, and the truth? thank you. i'll witnesses answered in the affirmative. you may be seated. we will start with you. your. you. your full statement will be introduced into the record of the we ask that you and your testimony to five minutes. >> thank you chairman ranking member of members of the community. thank you for the opportunity to discuss the government accountability office is high as high-risk list as it pertains to irs operations. i'm delighted to announce that one of our programs was removed from the list in 2013 after being on the list since 1995. its removal came about because of the advances the irs is made of many years and the dressing with citizen of technology and financial management. turning now to tax enforcement that jail has identified this as a high-risk area because of the size of the tax and the difficulty of her time in narrowing the gap. the most recent irs study of the tax released in 2,012 the tax is $389 billion. the irs is. the study dollars. the irs is. a study of the tax that next 2010 and will be based on august on between 2,082,010. ongoing research on the tax and of the compliance rate is high for income that is subject information reporting. income subject to 3rd party reporting only about 8 percent of the time not subject to any 3rd party reporting over the old. the underreporting of business income by individual taxpayers with total $122 billion in 2,006. the lack the lack of reliable and comprehensive reporting and withholding of this type of income is the main reason for such a high level of reporting. a good example of a recent efforts to improve compliance involves a legislative requirement to send this information from business credit card receipts on a knew form ten 998. the 1st were filed in 2012 for transactions in 2011. am 2011. am pleased to report we really is a positive impact compliance. the useful not only because they help the irs to collect the collective mount attacks the because they encourage voluntary compliance. the importance of voluntary compliance cannot be overstated. a 1 percent increase in the level of voluntary compliance brings in about $30 billion annually in tax receipts. i would note that it is not possible to eliminate the tax debt completely. getting to 100% tax compliance would require a huge increase in knowledge and be significantly greater for 3rd party reporting and withholding have now. realistically would not work because the burden on taxpayers and the strain irs resources will be far too great. our our budget situation represents a serious challenge to ability to keep making progress. the number of difficult steps in 1800 enforcement personnel. these 2 billion in revenue that otherwise would have been collected. additionally the reductions in our findings have forced us to make taxpayer service. if we can't provide the services taxpayers need to need to fulfill there tax obligations voluntary compliance. this concludes my statement and i'm happy to take your questions which thank you. >> thank you, chairman ranking member members of the community. specifically supply chain management and weapons acquisition. improving our supply chain the weapon system acquisition are complex. complex theories are by there nature entails level of risk. the best system to have the best weapon system in the world and logistics capabilities unparalleled. due to the scale and complexity of these functions inside the department of defense even the six sigma levels of tolerance there we will be some deficiencies. we must continually strive to improve. we must simultaneously sustain forces in afghanistan, supporting the war a complete the mission to controllable. at the height of operations we provided 1.1 billion gallons of fuel for a 35000 euros to deliver medical supplies at record levels for us. dod manages over five items valued over $9. actions to improve network performance will maintain overarching performance and help reduce substantial results that have been acknowledged by jail. implementing a comprehensive inventory management. since 2012 and reduce government managed inventory by $14.4 billion, the 1st reduction in government inventories of the 90s. implementing a new forecasting methodology which is producing improved material availability decreased backorders and produced germans. with that said, there is more work to be done on our supply chain performance command we remain focused on doing so. second area of high risk of want to address his weapon system acquisition. it's important to recognize the weapon system acquisition process has provided the united states with dominant military get booties. the rise of foreign ability coupled with ongoing, operations from commitment and reduced budget is jeopardizing our technological superiority. i weapon system acquisition process must deliver combat capability to war fighters as effectively as possible. our program for continuous process improvement that we call that are buying power is focused on medical. gal cost and schedule to grow. the department sets and enforces the affordability's we are tracking performance against established to ensure compliance. affordability's guide to requirements. the drive active engagement between acquisition of requirements leadership. during weapon system development to ensure the requirements associated with programs address the war fighter needs in a cost effective and affordable way dod instruction 5,002 which formerly institutionalized and the improvements resulting including emphasis on systems engineering, cost analysis and testing. in addition to the actions already mentioned we were formerly measuring our own performance. the 1st two provided data that the department is using to increase the performance of the acquisition process. process. the gal is also using those reports. they will continue to work with the jail to address the underlying causes that have resulted in high risk designation. we are and continue to be focused on removing ourselves from these lists. thank you for the opportunity. >> thank you. i appreciate the opportunity to appear before you today to discuss the department of energy's efforts at improving. this is the topic of great importance to the secretary and know deputy secretary. manages some manages some of the largest most complex and technically challenging projects. the public with the private sector. the portfolio the portfolio of large projects undertaken by doe is unique not only from other projects in the public and private sectors but also each doe project is unique from other. one-of-a-kind with uncommon challenges in light of these challenges doe has historically struggled with projects contract management only been on the jail high-risk list since the inception in 1990. we've made some important progress that has been recognized by gal and others in 2009 moved from the office of science. in 2013 the jail again narrowed its doe focus to projects over $750 million in the department's office of environmental management and the national nuclear security of ministration. the the department remains very focused on getting business. to to meet this challenge the secretaries instituting changes to the department performance. performance. one of the 1st actions he took when he became secretary was to create an undersecretary for management and performance to focus specifically on improving project management and providing direct supervision of many of doe's most challenging projects. the secretary also established a working group that she asked me to leave to conduct an in-depth analysis of project-management. this working this working group was comprised of doe seniormost project management experts. the group divided opinions as to why projects either fail or succeed in the doe. the working group's findings were findings were issued a report which was released in december, and that report, report, if you can find on our website. the report by the several reasonable mentation of several efforts to improve project management. restraint in the energy system acquisition advisory board. all our view all projects with an estimated cost of a hundred million dollars not. and the board which is chaired by the deputy secretary and comprised of the seniormost department officials will now me at least quarterly and focus on projects that didn't be at risk of not reading performance baselines. second we established a knew committee. this is comprised of the senior project managers who are the same folks that wrote the report. and that is providing risk assessment and advice to the department senior. baseline change proposals and providing peer reviews and in-house consultant to projects across the departments. finally, the sec. has taken a series of actions aimed at improving lines of responsibility and improving peer review process. the apartment is improving accountability by ensuring that for each project the appropriate undersecretary must now designated a clear owner. there must also be a clear line of responsibility that extends from the undersecretary to the project on the federal project director. in addition word doesn't exist already each undersecretary is now establishing a project assessment. the reforms and processes that were instituted a critical steps to meet our solemn responsibility to be responsible stewards of taxpayer dollars. we are encouraged by the work that has been done which has been focused on affecting permanent structural and cultural change. thank. thank you. i'm pleased to answer questions. >> without results. the intention is to have the next two gentlemen give their opening statements but we we will not get the questions until after votes. we anticipate that that will happen sooner than 515. each of you two gentlemen have up to five minutes. please be swift in your. it will be entered in the record. >> chairman, ranking german, ranking member, members of the committee. best

Transcripts For CNBC Closing Bell 20140519

technical analysis on wall street, and he's still very bearish on the small caps and the technology. he's been forecasting a 25% decline for the russell and the nasdaq, what he's calling a stealth bear market right now. >> 1080, that was the level we were watching on that russell indebt. we held that. today we're rebounding. we'll see what he has to say. separate lit obama administration going on the offense against a cyber security scuffle, actually filing criminal charges against chinese officials, but why now? and what's the end game? especially when the white house is currently under fire from cisco for intercepting equipment. a report on these growing tensions and what it may mean for several companies you may be invested in. >> "the avengers," why the spitderman," "ex-men" all super hero franchises that came out of mind of stan lee. he joins cleshl today for a very special interview and this is a time when the superhero genre in motion pictures has never been bigger or more popular, and the new "x-men" movie comes out this weekend, and it's the money part that's been a bone of contention for stan lee and many in that industry. i'm going to ask him how much he thinks he has spent on legal fees over the years. they are always in litigation, it seems. crazy. >> not to mention, by the way, jack kirby's case will be coming before the supreme court as well. lots of dimensions to explore on that one. the dimensions of the market heading into the close, an hour to go in the trading session. big merger news, of course. we'll get into all of that. the dow is up about 18 points today. meanwhile, the nasdaq, look at this, up israel .8 of 1% or 32 at this hour and the s&p 500, a reasonable rebound here to start the week of course, up about a third of a percent. 1884 is the level there. >> let's talk about it in our closing pebble exchange, kathy jones, bob from capital saq and michael melnick from southern polytechnic state university is here today, the author question the basics for economics for a modern manager" and a very specific reason to have him on and our own rick santelli is here as well. kathy, you're head of fixed i can at schwab. nobody can agree on why the bond market is reacting lately with interest rates going down and not up. what's your version of why that is happening right now? >> well, i think there are a lot of reasons, you know. the economy has underperformed expectations, not just here but in europe. worries about the slowdown in china, inflation has come in below expectations until just recently, but my interpretation of tapering is that it could be interpreted as bullish for the bond market. every time the fed has ended qe in the past, quantitative easing one and two, yields have actually come down, not gone up, and now we're tapering, and what we're seeing is yields start to come down again, so it could very well be that the prospect of less liquidity from the fed is what's allowing rates to go down. >> those were often accompanied by weaker performances in the stock market, and this could be a different story this time around, but i want to ask professor melnick who is joining us today for a specific reason. welcome, professor, thanks for being here. >> thank you. >> we are looking back at people who thought the ten-year interest rate might not rise this year, and it most decidedly has not as bill just made the point, but you actually thought that 2.5%, where we are today, is where we'd be. this is back in december so just a very simple question. why are we at 2.5%. what does it mean and how long do you think this lasts? >> actually your previous speaker did a very good job of describing the reasons, so i completely agree with kate, will you let me add a couple of terms here and expand this discussion a little because as an economist i have to acknowledge that any interest rate consists of two components. there is the real rate of return and then there's expected inflation. if we look at the real rate of return, in the short term that's completely controlled by the federal reserve, and i think that the federal reserve will remain in the picture for an extended period of time. in fact, as far as we can see in the future, but the long-term bonds reflect more of the fundamentals of the real interest rates, and one of the key fundamentals that determines the real interest rate is the productivity of capital. after all, what is the real interest rate? the real interest rate by definition is the price of capital so if we look at the marginal productivity of capital it has been decreasing on average and there's a number of reasons for that. it tollie has little to do with the recent crisis, the trend of the real interest rates that began before this crisis emerged. >> the demographics? >> not necessarily demographics, technology is the prime reason, because what happens is the cost of capital is determined by the capital to labor ratio. >> all right. before i ask you if this is going ton on the mid term can you tell us how much lower you think traits are going to go? i mean, is this a trend lower, or is this as low as it gets right now? >> i think at the moment, today, we're a little bit overshot, so -- but that doesn't -- but, however, i think in the long term, yes, the rates actually are either going to stay where they are now or retreat further, and here's another reason that both of your previous speakers touched on very nicely. first of all, the real interest rate in the united states will remain low, and this will remain low for a very long time, probably over a decade at least because the technology changes, so the real rate will remain low. the question really is what happens to inflation? at the end of last year there was a significant expectation that there would be inflationary pressure. >> yeah. >> however, inflation in the u.s. is highly unlikely and one thing that i argued last year and that seemed to be somewhat -- seemed to escape the main media. >> professor, let me go to our rick santelli. trying to read your body languaging a the professor is talking here. you're playing your poker face here, can't read you. do you agree or don't agree? >> i agree on a couple of components. i agree we could have interest rates for many more years but not necessarily for good reasons, and i do think there's a very simple way to place rates where they are at, and the first guest nailed it as well. after every qe we did see rates go down, and, kelly, you get the prize for why, because equities moved lower, but this qe is different. we keep stretching it out and stretching it out, but i'll keep it real simple. it's all about deflation of equity prices. the next time we see the nasdaq under its february 3rd low, 39 and change, that's when we're going to test 2 1/4. it's all about, in my opinion, the equities and i think we can really summarize the correlation between ten-year note yield, the nasdaq in this country and dollar/yen, almost all identical charts, that's how simple it will be. we'll stay here until the nasdaq cracks that low and then rates will follow. i don't see any linkage for the rest of the year, stocks up, treasury prices up. i think those days are gone. >> bob kaiser, do you agree? you want to comment on that? >> i agree with everything i've heard so far, but there's a definite conundrum here between the 2.5% yield on the ten-year treasury and when you look at forward earnings expectations for the s&p 500, because the equity market expects much healthier earnings. 10% to 12% earnings growth next year which implies the economy is going to get stronger. if that happens the ten-year note has been locked in a range of 2.5% to 3% for the past year since bernanke started talking about tapering and if the economy gets better we're at top of the range and yields head higher. >> michael, what do you think? >> i've got to disagree with each of those opinions. >> we have a contrarian here. >> you have a contrarian. >> let's remember, this was the consensus heading into the year. >> at the end of last year nobody wanted to own bonds, investors coming out of bonds. at the end of the year it made a big mistakes. investors going into bonds now are possibly making the same mistake all over again. i think we're way too complacent. >> you see the yields going up. >> i see them going up in the second half. >> i think we're way too complacent and we've gotten away from the notion that the market is in the business of fooling the majority of the people the majority of time. we're at that point right now. i think the economy in the u.s. is far better than what the numbers have said in the first quarter, and i expect to see better numbers going forward. >> if i may interject. >> i expect the bond market will determine the direction of interest rates and not the federal reserve. >> absolutely a great point. professor, i have this question for you. if you believe the u.s. economy is going to be in reasonable shape, why is the 30-year especially, should be sensitive to better inflation and better growth, why is it that yield, almost more so than any other part of the yield curve has come down so considerably, below 3.4% today? >> first of all, define what is a good performance for the u.s. economy. >> 2.5% to 3% which i know is not great. >> 3% in my mind would be a thunderstormal -- historical normal but right now we're in a different reality. this is something that's important to understand. the economy has moved to a different long-term equilibrium so in this new world 3% this year would be great, but i think that we're more likely to end up seeing closer to a 2% mark. >> okay. >> by means domestically generated inflation will be subdued. >> absolutely. >> inflation, when i go -- we have to understand inflation is measured by a variety of different measures, okay, so one inflation i feel when i go to best buy, or when i go to walmart and buy primarily products made overseas. foreign economies are not in such a great shape right now so as a result they are competing for our dollars here so that inflation is going to be limited. i want to go back to rick santelli's argument. we need to watch the u.s. dollar. the u.s. dollar will be a key indicator in terms of how that inflation comes into the country. it seems to me today we're not experiencing that and we're not likely to see that. >> the dollar against what, the europeans since the world economy is so great and the u.s. economy is so great they are thinking of putting neglect interest rates into the june 5th meeting. we're semi crippled as it is so why is the stronger dollar good again? >> stronger dollar is the indicator that that the inflation is subdued. >> stock inflation doesn't count. >> the fact that the dollar has been strengthening. >> it comes not because the u.s. economy is so strong but because other economies are so week. that's the reverse. >> we're still the island of prosperity and money flows into the united states. >> the bell is ringing. we have to go at this point. >> everybody else, hank you, always good to see you. have a good day. >> i could have kept that going for 25 minutes. heading into the close, picking up a couple. we'll have much more ahead on these markets. the godfather of technical analysis, ralph acampora and he's warning that he has a sick feeling about a 25% stock market dip ahead. acampora makes his bear case coming up. >> and using rick santelli's reasoning that could have a big impact on straits as well. we'll talk to ralph about that. >> another monday and another blockbuster buyout, at&t making a $45 million acquisition of directv. how it could affect your wallet and portfolio. >> can barely follow how it shaped out. stan lee, creator of the hulk and the fantastic four, he's speaking about whether the superhero craze is headed to the ultimate oversaturation flameout. pags >> denis: plus signs, minor plus signs today, but look at nasdaq, that's leading the charge today. lately you've seen the blue chips would move higher when the secondaries, the blue chips, the technology stocks or the small caps would move lower, that's not happening today. is the technology stocks and the small caps that are leading us higher, not a lot and volume has been very light, one of the lightest volume days of the year so far but we're getting. >> plus signs so far on wall street. at&t making a $48.5 billion bid. at&t down and directv down 1.5%. how does this change the media landscape and who is left looking for dance partners, morgan brennan has that part of the story. >> assuming this deal and the comcast deal square regulatory approval, the names now to watch, dish network and es have. already we're getting reports that dish may be talking to verdon, the other major telecom that could do a deal such as this, a partner have could go several ways, could be a merger or simply buying wireless's spectrum, something else to watch, how the deals helps regulators. >> another company to watch, charter communications, its their 20 billion divestiture deal with comcast which is also hending approval will make it the lone mid-sized player with two major giants, charter in the middle and smaller companies so we'll keep watching all the deals and see what the consolidation looks like. >> for more on what this media deals means for investors. >> gene, when the music stops, how do you see the dust ling-ling here? will we get all the mergers through? what do you think will happen here. >> good question. i think it's a good time to get deals through the regulators as there's very little pushback and cleary will they have been supporting consolidation so i think this deal is going to dictate the way a lot of other deals play out in the space. >> let's suppose all of these go forward, what does this new media broadband world look like in. >> this is ground breaking stuff to be able to get no a quadruple play so the landscape will be as content continues to be king. you'll push your business and continue to grow because everything is going to what we call the quadruple play which is video on the mobile. we'll see the video mobile push. at&t made a big move here with you. a year ago charlie irvin was looking at spint taking over and it's about content and about delivery. >> gene, is this -- is this good for consumers? i mean, i keep hearing that my bill is going to go up to consume media with all the consolidation what do you think, especially if they have to pay for the deals? >> doesn't mean much as at&t and directv have very little overlap. in the lock run it gives consumers more options and potential cost savings. >> larry says it's game-changing and gene saying it's not that big of a deal. >> this has to be some kind of important hank in the media landscape. it's a big deal that, look, understanding that many believe the acquisition of nidal ayyad is unreasonable. the reality is this is at&t tried to build out its paid tv business. currently at&t has 5 million and directv in the u.s. has about 20 in the u.s. in addition, the sheer size of this deal will allow them more negotiating bother with the likes of disney and t-mobile and lastly, you know, directv has built out a new latin american practice which at&t wants to capitalize on. >> that's why people -- so from the pint of view of what's best for the consumer to pick one here. should at&t be allowed to go forward, and if so, how big will they be and what does that mean for a time warner/comcast tie-up or other combinations a la dish and whomever. >> verizon we here now. >> may come about because of this space. do we need the new beefed up entities to compete with each other or are we going towards an ole gonebly. >> to consume all this content, there are carriers that went out to build these networks, built the broadband and banded when ile so a lot of times i see you'll see better stuff for consumers because you'll see more competition. this stuff is needed. what we're seeing here is ground breaking because you're seeing telecom get into pure content and what you're seeing is the deals going through. i think the most interesting part is there's no break-up fee so i believe that that shows you in a dish really wanted to get out of there, but it's all about mobile, you've got to have something to do that and that's whieringan wan aa aan -- this is about a fundamental shift in change in the whole business. >> sure feels like it. a lot of money changing hands, like we said. >> thank you both for that. >> 35 minutes to go until the close here. we're up 11 points on the dow, about 6 on the s&p. 30, it looks like, on the nasdaq and, again, interest rates today remain the focus. the extent to which you believe that lower rates are supportive of the economy versus warning about them is the essence of the debate happening on wall street right now. >> also, go pro has the cool factor locked in, but is the digital company -- a public offering coming up in a couple of minutes. >> stan lee, creator of superheros and countless of other comic hero, speaks to us and hear whether he thinks super hero are risking overexposure. stan lee joins us next. don't go anywhere. don't go anyw. whon a certified pre-ownedan unlimitedmercedes-benz?nty what does it mean to drive as far as you want... for up to three years and be covered? 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geico. fifteen minutes could save you fifteen percent or more on car insurance. marvel, the entertainment company that has been rolling out blockbusters like "the avengers," "ex-men" and "or inman" and on and on, celebrating the 75th anniversary and the name behind those names is here to talk about marvel's successes and the future of couplic book heroes and the media. >> joining us in an, conclusive interview is none other than stan lee. mr. lee, it is great to have you with us. congratulations, look, on all of the success that you've had with characters, and a lot of people are saying can there possibly be another comic book movie, tell vice show at this point. is it too much in your point of view? >> oh, i don't think it's enough. don't forget these comic books have been popular and growing in popularity for more than 50 years, always featuring the same characters, spider-man, the hulk, the avengers and so forth, so now we can put them on the big screen with special effects and 3-d. i think that they will just go on as long as we come up with good stories for them. >> yeah, and i would say you're not oversaturated as long as the money keeps rolling. in the new "x-men" movie opens this weekend, expected to be the big summer craw. special effects, that's really revived a lot of the comic book characters because you can do things on screen that you couldn't do years ago. you're doing things on your screen you were able to do with your drawings in comic books, right? >> it's incredible. we could not have made successes of these characters 15 years ago, 20 years ago, but now when you can see spied man swinging from building and building and you would sayre that's him that's doing it and if you see all the other things, even if the stories weren't as good as they are, just the fun of watching those special effects is enough to bring people into the theater. >> i just wonder if you have any regrets about your own relationship or marvel's relationship with the illustrator of all of these loved, universal heros, you know, these characters that were created, jack kirby. >> he didn't create all of them, though he was involved -- the word create is an odd word. the stories were there, and i gave jack the assignment to draw them, and he did the most magnificent job possible, and i don't know what to say. he was a freelancer, and he was paid as a freelancer, and -- and now. i'm in the same boat as he is. i was a freelancer and i was paid as a freelancer. >> for those who don't know, jack kirby's estate is suing for more royalties on a lot of these characters that came down, and actually this is going to be heard in the supreme court. they are deciding whether they are going to hear the arguments on it as early as next week year. how much money would you estimate, stan, that you have spent on legal fees over the years? this is not the only case that you've been stuck with here. >> well, i personally have not had many things. the companies have had lawsuits. >> right. >> but i'm sort of out of it. nobody is suing me for everything. >> do you think that back in the bay it was so casual and who knew that this much meter could be made by all these superoo characters one day. >> you're absolute will you right. the companies protected themselves pretty much. >> if you don't mind my asking, we deal in business and money here on cnbc obviously. when a picture like "x-men" comes out and makes $100 million, how much does a guy like stan lee make on this? >> not one penny. i don't get paid for the pictures. >> there's no royalty at all no, licensing fee, none of that for you? >> none at all. i do not own the characters legally, not at all. in fact, it was very funny. i keep looking at the internet and i see people saying stan lee is estimated to be worth $250 million. i don't know who makes these estimations. i sure wish that was true. >> you're 91 years old. i -- i'd be out reading comic books by now. you're still going at it, why the? >> i'm with another company. i have a company called pow entertainment. >> i know. >> and we're doing movies also. we have one with a chinese/american theme called the annihilator. we have an indian hero and i'm working on a latin hero, and i'm having the same fun that i had when i was doing those characters for marvel. i'm still involved with marvel and with disney, but luckily i'm able to work at pow also and we have so many projects in the work. we have one, an animated cartoon movie, called "stanley's mighty sevens" and i'm actually one of the stars in it. my voice is used. the story deals with me finding some aliens on earth and teaching them how to be super heros, and it's funny and it's exciting. >> in case there was any doubt that you are the latest superhero in your own franchise, final question, where do you think the great story telling will come from next in today's media age? in other words, comic books were unique creations to some extent of market forces and when was available in the 1960s. what do you think today will generate the next great cast of characters? >> comics will always generate new characters, but there's so many talented screenwriters that are coming up with new idea every day. the more people decide to get into that field and whether the raters have great emergency nation. that's where it comes from. >> mr. lee, always good to see you. thank you, sir, and we wish you well >> thank you so much. great being here. >> the new "x-men" movie comes out on friday and he gets no money from that. >> incredible. >> news on the nba and l.a. clippers. josh lipton has details. what's going on? >> yeah, this news just crossing from the nba regarding donald sterling and the los angeles clippe clippers. the nba initiating a charge seeking to terminate the ownership of donald sterling. the charges assert that mr. sterling engaged in conduct that's damaged and continues to damage the nba and its teams. the february was will to say the nba says mr. sterling has the opportunity to respond to the charge by may 27. guys, back to you. >> okay, josh, thank you for now. >> 25 minutes to go into the close here. by the way, sugar ray leonard is on next hour. curious to see if he's still potentially interested in this team. so many people have expressed interest. the dow is up now 26 points. the s&p almost 8 and the nasdaq 35 this hour as the rebound across tech and the small caps continues to some extent. >> ralph acampora sees stocks heading for a 25% move lower, 25%. ralph is a noted technical analyst and what he says carries a lot of weight. find out why he's so worried coming up. >> also come up. >> today we're announcing an indictment against five officers of the chinese people's liberation army for serious cyber security breeches against six american victim companies. >> u.s. attorney general eric holder charging chinese officials with cyber spying on american firms but what's the end game here in the u.s. sort of lives in a glass house. this is one of the hottest stories on our website cnbc.com, and we'll discuss what the u.s. ultimately hopes to accomplish. don't go anywhere. don't go anyw. . welcome back. plus signs today on light volume, dow up 29 points and the nasdaq leading the way to the upside about .85% hour, almost 1%, the russell 2000, the lag-yard is almost 1% higher. if that were the equivalent on the dow, nasdaq leading the way. what's driving the action. >> been a solid day at nasdaq. steadily climbing higher. as soon as we were able to hold above the levels, the bulls were coming in. take a look at the apple stock, on fire today, trading at a 52-week high and above that all important $600 a share mark, the level that a lot of people look at and it is leading the nasdaq the most. economically want to mention the biotech stocks, talking about this group so much but if you take a look at what's happening, today biotechs are bouncing back, up 1.5%, we might be at the bottom of the biotech buzz so certainly something to keep your eye on. >> nasdaq may be in positive territory but legendary technical analyst ralph acampora has a sick feeling, got everybody's attention that you have a sick feeling about what's ahead for the stock market. >> ralph joins us now. >> do you feel the same today? >> today was a nice day, hope it's not a one-day wonder, had very nice days and what i need to see, kelly, bill, i need to see across the board new highs, the russell and nasdaq. >> what tells you before we get there that we're going? why do you think there's a 25% correction coming. >> when we started the year the market was so extreme. had a great year. >> all-time high on the dow on december 31 and then a great first quarter, even stretched it further, you look at charts and i was getting a nosebleed so a lot of them needed to correct. we started to see some of the favorites coming down 30%, 40%, 50%, a mini bear market. i'm not convinced that that decline is over. you get a nice rally on apple and all those today and that's very nice. i'm from missouri. you need to show me more than that. the 25% move lower would be in the momentum stocks and small caps. >> and everybody says ralph is really bearish on the market. no, no, no, if that were to happen i think the large caps would probably settle down and drop 10% to 15%. i'm still a secular bull. happens between now and october and we'll have a strong fourth quarter. i was going to say the big index or blue chips or whatever you want to call it, the fact that they have held up all right while the names have collected 40%, 50%, is it a sign itself of technical strength? >> absolutely, is and then ask yourself why. at win point it seemed more defensive than anything else. 1994 we lived through something similar, very different of period, but the dow and s&p were in the tight trading range and the rest of the list got crushed and at that time i called it a stealth bear market. >> someone just tweeted and said what is a stealth bear market? >> something you can't see. >> somebody has his hand in your back pocket. >> how do you factor in the bond market in all of this, everyone thinks it's going higher and rick santelli said as long as stock prices go lower, yield will continue to move -- >> he's a bond guy but i kind of agree with that. by the way, rotation is very god for the market long term. there's a little bit more. >> decline. is it the case that there hasn't been 25% market corrections effectively since the bottom? >> having we learned from that. >> we've had more than that, 10% in two years, i would think, and that speaks to the health of a long-term market. that means we've got another 15 years. >> another 15 years. so the rumor mongers who say you've turned bearish you say no. >> looking for a correction. >> good to see you, ralph. >> 15 years, and 25 points higher on the dow. >> where do you think stan lee will be in 15 years? >> we also have about 15 minutes to the close right now. as i said, the dow is about 25 and the nasdaq up 8 and the s&p adding almost 35. go pro greerg up to go public. a sneak peek at how much. >> do you know the answer to this question? >> of the components of gdp which is the most important for long run economic growth? >> well, if you don't know the answer, get this. a high school kid did. steve listmouisman will join us the next hour of the show. don't go anywhere. anywhere.devs to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. 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[ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. inside the two-minute mark, all four major markets and just the exact opposite of what it's been. these due, the nasdaq and russell have lagged recently while the dow and s&p are moving into record territory and the russell is the better performer today, up almost 1% on the nasda nasdaq. >> up a tiny fraction for the dow. rick santelli was saying he thinks the bond market reacts to the stock market. >> do you see that? i think that makes sense. >> at this moment what we're seeing is there's a lot of uncertainty out there and as soon as the economy picks up bond needs will start rights. you've got the federal reserve and there's lots weighing down on the yields. >> a lot of people scratching their heads about bond yields. >> today is one of the lowest volume days of the year. >> not a lot of positive cat lifts, not a lot of negative ones either. the important thing, you've got the pandoras, et cetera, all up nicely and biotech now very stable, been stable for a couple of weeks. market much more stable. >> thank you both. modest gains and light volume. stick around and get the second hour of "closing bell," former champ sugar ray leonard joins kelly evans and company coming up. see you tomorrow. >> thank you, bill, welcome to "closing bell" on this monday. i'm kelly evans, here's how we're finishing up the day with grown arrows, the dow jones industrial average adding 19 points. we were down in the range of 50 earlier in the session. nasdaq adding 35. >> call it 0.9%. finally the s&p 500 up to 1884. the russell was participating and tech picking up. joining me now is author of the book "young money," our own kayla tausche and dom chu and kate kelly and "fast money" traitor tim seymour. your take, does this mean today that those who thought the dow and s&p was sending the right signal and the russell and nasdaq would follow suit, are they vindicated? >> i don't think it's about positioning. people are concerned about bond market positioning. people feel that crunching yields lower which to me is more. people covering short positions on trade that wasn't working in terms of pushing rates higher. a place where equities then in turn got scared. not any different than wednesday of last week and i think the bond market will probably move somewhat lower, heelds is back up higher. i don't think we'll break down below 2% which is what we were all talking about. this is a place where emerging markets and risk assets and even japan are catching a small bid and all that is relatively good news. >> that's interesting and tim gets the same sense as i do. this veals very much like classic consolidation. a digesting process that's happening. we knew utilities were the best performing stocks and now they are starting to underperform. knew that the biotech stocks and social media stocks were some of the worst performers going into this particular month and they are starting to pick up steam and what you're starting to see is positioning and rebalancing, not against wholesale rotations, just the idea that people are going to say, hey, you know what, saw some gainers, reinvest in other parts of the market and this is a battleground. not that far from record highs and that's the reason why. >> i knew that the volume hasn't been that strong today, but that shouldn't cover up what is in fact a battleground. there are people who feel strongly that what the bond market is telling us, that the economy will weaken and others think equities have it right, and if anything the lower rates will r going to be supportive of that. >> the market is having a little bit of an anxiety attack spread over multiple weeks. i was looking at a five-day chart. if you look at mid last week before the david tepper comments that we talked about a lot on thursday and the idea that it's nervous time and there's a little shakiness in the market and you saw a real fall-off and we're starting to climb back and not where we were four or five days ago in the market. i think there's a lot of uncertainty and i know people who are going to see a little more strength and a big fall-off, sometime in the summer and maybe in the third quarter. >> talking a little bit about the potential for some kind of mega correction within, by the way, a 15-year bull market in stocks. >> right. >> and still talking about if. >> almost, kelly, like the whole equity market is a momentum stock. it moves up when there's no news and when there is news it pulls back so every time you see a very quiet day, the direction in the market, however low the volume, however small the move is to the green, but whenever there is news it goes down. >> so true. >> what's interesting is today could have been one of the animal spirits kind of things, at&t bid for directv, a $50 billion deal but those two stocks were under pressure. >> i think what's interesting about the tepper taper from last week is i actually think it improved sort of the fundamental strength of the movement we're seeing on equities now. some of the skittish money got out, but now we're seeing it stabilize. maybe we should bring tepper out every week or so. >> that doesn't happen in one kay. >> yeah, tim. i don't think that happens in one day. people overdid the tepper comments, and i think they are largely misinterpreted. where we are in markets and what we've seen for the last two month is people shouldn't be -- >> point taken. i sat in the tepper remarks and he made a number of macro comments that people are also reacting to. his main thing was u.s. gdp not where he wants it tonight. the first quarter was a huge disappointment and he thinks that will be revised upwards but even if we in in the mid-2s, he wants us in the mid-3s and he doesn't feel good if we don't get there. concerned about china and europe aa lot of people share the china deceleration point, if not the europe. >> china, first of all, until we break a band of 48 to 52 on the china pmi people are just watching around with the same da data. >> china is the only major economic indicator. >> look at the consumption stories in china and there's consumer names doing very well but if you want to sell china fear there's a lot of places you can do it. the reality is the chinese data has been very sideways for a long time. >> so hats market. >> i would just note this really quick, guys. we've had china growth concerns for quite a while, known that europe has been a problem for quite some time and known that u.s. gdp and the jobs future hasn't been that great for some time and yet the market still sits at record highs. >> i have a question they on europe. does it say something bullish, dom, that we're seeing opportunism in europe? i'm hearing a lot lately about hedge funds buying troubled bank assets in europe. >> it seems like this is still a distress play that people have been talking about since 2010. maybe it hasn't made the returns that they thought it would in the prior years and finally feel like this is a bottom or the time. >> that's what i'm saying. >> that things have gotten so bad that you have a few grave dancers for lack of a better word that are finding it valuable to pick up assets. >> maybe you can tell us whether we're in the middle of a new silicon valley bubble. >> the definitive answer is maybe. we have -- >> well said. >> we have some crazy valuations, but they are mostly in the private markets. public companies are actually trading at somewhat reasonable multi-pals, and i think despite some of the sillier stocks that we've seen performing, you know, sporadically and erratically i think we're actually seeing some of the gas come back into the tech sector. >> today you saw a little bit of that for sure. >> i have a feeling we'll revisit this in six, 12, 18 months and there's great stories that come out of it. right now let's send it over to courtney reagan with an earnings report for us. >> check out shares of urban outfitters, stock moving lower after missing first-quarter estimates by a penny and revenues coming in a bit above consensus views. the stock trading down 3% after hours. executives will be speaking on the conference call. we'll see if they have anything to change the direction or momentum of the stock at this point. kelly, back to you. >> courtney, thank you you. >> urban outfitters hit here and this one has gone back and forth and lately been more of a darling, correct me if i'm wrong and also campbell's soup today. what's the story with the u.s. consumer right now or is it tough to generalize? >> tough to generalize and the reason why i say that is because you have staples companies, some are always outperforming and campbell soup is not a good story. retail stocks have not been great performers so far this year. they may in solid pockets have had a good run last year and looking at the overall picture for the consumer discretionary or the retail secretary ork this is the week that will tell us a lot more, perhaps not definitively, about whether or not we're seeing some signs of life again, home depot and lowe's and tiffany and all these other earnings. these are cat lifts, microeconomic and company specific and what you can do is add them to the overall picture. steve liesman has been saying for a couple of weeks now that the economic picture is very mixed at best. some data points is great, some are not. this is something that puts the scale one way or the other and the retail earnings will be key so currently will have her hands fu full. >> a couple of disparate things happening, the big capital raise at deutsche bank over the weekend, more focus on books about the crisis and the extent to which there should have been more relief for homeowners, for example, and more capital levels in the new york books, a big piece on -- >> some asset management conference whether they are talking about the black rocks, vanguards and fidelities are possibility too bug to fail. >> and we're expecting to see some news out of critics in terms of a potential guilty plea for these money laundering you are use. >> and yet that second- or was one of the leaders today. financials doing okay, tech doing okay. >> when you look at the leaders on the dow, goldman sachs, jpmorgan chase are two of the leaders today. i think the picture there is that investors are looking at these u.s. financials and saying, okay, they got out ahead of this. when they already have more capital than they need and more settlements out of the way and by comparison what's going on in europe makes the u.s. look even better. >> tim, quick last word what. are you watching tomorrow? >> i think naturals are very fascinating. deutsche bank has priced in a lot of this and their need to raise capital because they want to take more risk in fixed income. deutch looks interesting and you buy citibank, that valuation to me, rotation is all about the valuation you want to own. >> god to see you, tomorrow. catch more of tim seymour coming up with the rest of the "fast money" crew. they will be talking with kate spade, speaking of the consumer, about how bringing the brand back to basics has boosted the stock lately. don't miss that. just discussing citigroup, the company first failing the fed's capital stress test and deutsche bank raising concerns about its balance sheets. do investors need to worry about the health of the banking industry. we'll get into that next. also, not exactly a shocking, countries spying on each other. why is the u.s. filing its first ever cyber economic charges against china? we'll try to get to the bottom of what the white house is up to. a devastating coffee crop disease could be causing a cries spike for your favorite cup of joe. details later on "closing bell." you're watching cnbc, first in business world wide. siness worl. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. deutsche bank raising $11 billion in new capital, some will come from existing shareholders and the rest coming from a somewhat unexpected source. kate kelly has the details. >> kelly, surprising news really that broke over the weekend but was elaborated on today by deutsche bank. what they are doing is raising $11 billion in u.s. dollars, that mostly from a rights offering where you offer to your existing shareholders a chance to purchase additional shares but also with a cornerstone investment from qatar, the royal family of qatar. some analysts very critical of this. they say it's not enough money. a couple of people, one person downgraded the stock today and others have a sell rating on it in general. deutch has been considered to be one of the least well capitalized of the european bank and one note said they need to raise an additional $5 billion just to get in line with some of the least well capitalized peers. worth noting, they plan to use the money just to improve the capital ratios but also to reinvest in the base. they want to digitize their european operations and add staff on their wealth management side and a big believer in fixed income over the long term which is a big surprise to the banking community and is throwing his weight behind the investment banking too and sees deutch as the only investment bank with this foot fingerprint. >> and may have a big opportunity in the u.s. for more on how investors arguing deutsche bank's quest for cash and if this is a red flag broadly for the banking sector let's bring in the president of bell rock capital along with the rest of our panel. sass dra, welcome. what's your take on all of this? how symbolic is this? >> i don't think it's that symbolic for the entire sector. it's really specific to detroit bank and we're not concerned. like before you were talking about in the previous segment. look at all the american financials today, the domestic stocks are all doing very well, and so we are ahead of the curve here, and there's plenty of -- there's plenty of ways to make money in this sector and in some cases we think we're still in the very early stages of a bull market for the sector. >> and we just heard, of course, from tim seymour who says he likes citigroup, for example. >> absolutely in do you share that view. what are your top picks if your world view paps out? >> well, we like -- we like names like citigroup but we don't think from a long-term ownership perspective there's a lot more money to be made in regionals because the impetus for them to be taken over which would be something that would be very difficult for a citi or a jpmorgan so there's still that second layer of oomph of getting a return on investment when you look at it from that perspective? >> cassandra, the fed came out and said they were basically frowning on any bank mergers. it was assumed before the big banks would be the ones buying some of the regionals and then you also have the regionals being more susceptible to a from thening yield curve if we still have yields where they are for the long term. i'm wondering how you think they can overcome some of those challenges? >> how they overcome some of those challenges at the regional level is through making acquisitions of the step lower than them in the banking structure because there are a lot of banks that took advantage of some of the stock gaps in raising capital and some of those loss share agreements are coming due this year so you're going to see banks that took advantage of loss share agreements saying now this year what now? what are we going to do, and those are the banks that are the right side to be taken over by regionals, and that hides a lot. takeovers hide a lot of bumps. >> cassandra, just curious. what do you make of deutsche bank and comments about being a believer in fixed income over the long term, the first quarter being historically a big story, do you think the fixed income story is over, and do you put any credence behind his commentary? >> i think he's pretty much on the mark because at least our world view is that rate aren't going anywhere for the next several more years, three to five years, and so if you have that belief, then there's still a long-term, you know, game plan here in investing and building out your fixed income area. >> all right. it's still a call that appears contrarian in this kind of environment, cassandra, thank you for now. >> absolutely, thank you. >> helps explain some of the strength we saw across that space today. >> either they are an inexpensive stock or more fuel for the fire for those that think they are taking the wrong strategic path. >> one or the other. >> yeah. >> survey finds london has usurped new york's crown as the world's best financial hub, from price waterhouse cooper. tweet us your thoughts, new york versus london to unveil your thoughts later in the show. let's send it over to courtney reagan for a market flash. let's check orbitz announcing a selling stockholder. the underwriters of a 0-day stockhold stockholder. they will not receive any proceeds from the offering, shares down 1.33%, come back a bit but had a fairly appropriate to us drop when the news did come out. >> thank you. >> the white house is accusing china of spying on u.s. businesses. cisco ceo john chambers is accusing the white house of intercepting routers and sending they ever overseas. why is the u.s. literally making a federal case? 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[ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim from td ameritrade. alltoday is monday today, we greet you. treat you. care for you. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out. big, small, and yes, the best heart care in the nation. it's here everyday, for everyone. that's the power the power, that's the power of today. cleveland clinic. call today, for an appointment today. maybe tom cruise should try the united states for filing its first ever charge for hacking and cisco has its own spying beef with the nsa. i thought maybe you would be tom cruise there. >> not quite. >> this has cross-currents, allegations flying back and forth, five officials of the chinese military have been indicted. >> state actors who engage in economic esage, own over the internet like offices in shanghai will be exposed for their criminal conduct and sought for apprehension and bruce in be a american court of law. >> unit 6198 apparently operated from this building in chang hi to use fake e-mails to tap intoest whenning house. u.s. steal and solar world fighting unfair trade cases and alcoa and allegheny technologies and the united steel workers uni union wrapping up its campaign. cisco systems john chambers wrote to president obama to say that nsa has been intercepting products bound for china and modifying them for china. our customers trust us to be able to deliver to their doorsteps products that meet the highest standards of integrity and security. it looks as though, kelly, no one's hands may quite be clean. >> i want to talk more about what is the end game and how does it fit into the big picture. so this -- it would have been one thing if the white house came out with this by itself but accusations coming at a whole other level to this story. is this just business as usual in terms of countries spying on each other. what is your take. the president cakes the chinese atemds to commercially use the information derived from saying as a threat to the national interest of the united states. it's burly symbolic in that there's no chance that the chinese will extradite these five people back to the united states for trial so the attorney general's estimate that they will pursue these people is a little disingenuous. >> i just wonder, you know, dom, is there a there there? >> you know, i don't know. the whole idea behind this case is that it speaks to relations that have perhaps been improving over the past couple of years. the idea that the chinese are still large investors in the united states, not in terms of business but that the united states needs their dollars in terms of treasury purchases still speaks to the idea that you do at best have a slightly lukewarm relationship and i'm not sure what this kind of a case does and knowing that nothing is going to happen. >> have i about it from cisco's point of view. >> you also now have a u.s. that's actively, know, whatever the language is, doing what they are doing to the chinese. does that threaten to undermine guess. >> they have been very outspoken about not letting the nsa and others to encrypt into their vimt. >> what is going on in the white house i think is we're seeing a cyclical or structural declear in the relation this that you should see this indictments as part of a trend of taking a stuffer stand, the president wa -- >> that's going to have big implications for the tech sector. we're talking about a huge cl r clear. you didn't see this kind of outrage when the nsa was revealed to be spying on citizens through phone meta data but when it's their equipment and hardware and they were building back doors into theirs, then they want to do something about it and then there's outrage. >> does make you wonder. >> the charges were brought against nuclear, solar and natural resources companies. >> alcoa. >> what if some of their intellectual property had been stolen? wonder if they would come down the same way if it's in their own backyard. >> these companies didn't go to the u.s. government. i think the fbi in running its counterintelligence discovered this information and went to these companies and said we have discovered this. we're going to prosecute the chinese. i don't think the companies with large exposures in china in terms of their business would seek to indict members of the pla which they now is purely symbolic. they get little benefit except for a shot across the bough and the risk is that the chinese won't understand that this has been generated by the u.s. government, not by these companies and they would retaliate against these countries, against sysco and others which would not be good. >> is this kind of getting a glimpse of what goes on, or is this an actual important development with china, for example, companies with nal interests, that we shouldn't be too blase about this. >> companies need to be proactive and put protections together against this cyber intrusion. the specificity in the indictment is slightly more than what was in the mandia report several months earlier, that a lot of this was released earlier and the special physicali speci the specificity would indicate continue the conversations with the chinese on a quiet basis. when you deal with the chinese quietly and not publicly you get better resolution but clearly the obama administration is very frustrated with chinese behavior so they decided they needed to go public and this is a core interest of america. >> you're quite right. great to have your perspective. >> my pleasure. >> most adults don't have great financial literacy in this country but take a look at these high school students competing for the national economics challenge crown today and up next hear from the winning team as well as the alex trebek of this contest, our very own steve liesman, and just ahead. >> are you telling us absolutely everything? >> not exactly. we're also out of coffee. so out. okay. it may not be that bad but coffee prices could be spiking because of a troubling coffee crop disease. jane wells is brewing up the story later on "closing bell." o" peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. welcome back, earlier today our very own steve liesman co-hosted the 14th annual economics challenge where the nation's top high school students competed in a quiz bowl, think of it as "jeopardy" for high school brainiacs. it was a tough competition and with us now are the winners, fresh from ringing the new york stock exchange "closing bell," steve liesman with the students from bel-air high school, winner of the adams smith division and from hunter college in new york, winners of the david ricardo division. congratulations to everybody. >> thank you very much. >> let introduce them him. xu from baylor high school and laura zhang from bel-air and jonathan lin from hunter college along with aeksel feldman. did we run the bite. >> set up the winning question. >> we over not given the question. the question in case anybody missed it is which comb nebt of gdp is most important to the long-term direction. >> for future growth. >> do we want to run the sound of the -- by the way, folks, set the scene for you. the score is tied here. what was it, 10-10. >> 11-11. let's run the sound here. >> i think we have it. >> no sound, okay. >> okay. we'll imagine. >> hit the buzzer. which component of gdp is the most important for future growth, right there. >> investment. >> that was the main one, folks. >> and that's how it went down in what was a nail-biter. >> jonathan, what was it like to win? >> it was really exciting, our first year doing this, first year as a team and everything and we were really excited to come here today and at the end it all came down to that one question but it felt really great to win. >> i have to ask you this question. most kids if they won something would want to go to disney world. you got to go to the new york stock exchange, which was better? >> definitely the new york stock exchange. >> i've gone to disney world already. i'm 18 now so the new york stock exchange is much more in line with where i want to go. >> disney world. >> is this where you want to be in. >> definitely. here i can see my favorite stocks like national bank of greece. >> and you're playing for europe. >> what was it like to study for this thing? >> spent a lot of time just doing practice tests and learning new material, but it was fun because we bonded over practice sessions and we're all really good friend. >> and the two of you are juniors and you seniors, you're pretty much done with the school year now. >> yes. >> are you pursuing is economics in the fall and if so where? ? i'll be at yale. >> and i'll be studying economics at stanford. >> micro or macro? >> we don't specialize yet? what's your growth forecast for -- >> hold on a second, breaking news. we do have breaking news on credit suisse. eric holder, the attorney general, and irs commissioner john costigan have scheduled a 6:00 p.m. news conference to announce what they call a major enforcement action. no official word on what that will be, but we believe as reuters is reporting is that this will be to announce a guilty plea by credit suisse to charges of abetting the filing of false tax returns, agreeing to pay a fine in excess of $2 billion. this is something that bipartisan lawmakers on the hill have been pressing the administration to act on. there's a senate investigation. carl levin and john mccain, into foreign institutions that abet tax abeyance in the united states. >> just want to get reaction from our panelists, kate, kayla, kevin, dom, this is very specific with regard to credit suisse. we knew perhaps of issues related to this, but still a surprise, kate. >> yes, kelly. i think we have known there might be something later today, and it sounds like based on john's report it's not official yet that it will be cs but i'm certainly hearing the same idea and also hearing that the total fines, multiple regulators as well as the doj will likely exceed 2.5 billion which is the expected number. we'll keep the eye out. the u.s. attorney for the southern district of manhattan is known for his tough crackdown on financial fraud, obviously went after the hedge fund industry with various folks associated with s.a.c. capital, he said at a recent speech we should expect to see a major bank plead guilty or perhaps be indict federal they don't plead guilty sometime soon. something prosecutors have avoided since the toppling of arthur anderson and while folks may think there should be charges brought state side, this european bank is a very major one and it is a tough stance by the justice department. >> did we think it would be credit suisse, so focused on the u.s. still prosecuting to some extent the financial crisis or various other things with regard to what's happening in the 4x market. wondering if this doesn't catch people by surprise. >> with some of those situations you have to prove intent and i don't think prosecutors can prove that banks like bank of america, citigroup were proven to defraud. this is not exactly related to the financial crisis so while it is a marquee instance of this happening, we did get a sliver of a guilty plea when jpmorgan did admit some guilt but that was to the s.e.c. and on a civil basis so we haven't seen something of this and it doesn't relate to the financial crisis. >> there's a look at shares of credit suisse which do appear to be moving slightly lower. we'll be streaming eric holder's press conference live on cnbc.com at 6:00 p.m. now, at a time when boxing ruled the sports headlines, he was king, sugar ray leonard was a five-time champion and his pay-per-view bouts were some of the sports's biggest money-makers, we'll talk to him about the pay-per-view boxing and we want to know what you think, where is the financial center of the world? your thoughts coming up later in the show. the show. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning business even more rewarding. ink from chase. so you can. beautiful day in baltimore where most people probably know that geico could save them money on car insurance, right? you see the thing is geico, well, could help them save on boat insurance too. hey! okay...i'm ready to come in now. hello? i'm trying my best. seriously, i'm...i'm serious. request to come ashore. geico. saving people money on more than just car insurance. welcome back. apparently an economic recovery afoot and on cnbc it's topping the daily hot list but is it a recovery that will make you proud to be an american? explain to yourself, allen. >> a little feature worked up out of our european bureau and they took a report by schroeder's looking at how the u.s., when you compare to the rest of the world, we're actually recovering a little bit better than anyone else and the reasons for it are home grown, the shale boom and the dollar and that's likely to be served by domestic demand so the rest of the world used to latching on to our economic locomotive, so to speak, ain't happening this time, at least that's one theory. getting a lot of attention on the website, over 41,000 readers already, pretty good number for a monday. >> our number two story is basically walmart's big problem right now, its customers. they are too low economic. they feel the customers are so down against the wall there's no discretionary income and, therefore, walmart will never move ahead. fascinating analysis and lastly the fun one, food styling, done by katie little, went out and looked at how food stylists use blow to beches and glue and make it look pretty and look at the real sandwich doesn't look so pretty, a few side by side pictures which are really fun. >> those of us in television know a little bit about that. >> thank you, allen. >> take care, kelly. >> our next guest is one of the most iconic sports legends from a sport devoid of household names like his, sugar ray leonard, championship boxer in five different weight classes and the first ever to do so. thanks so much to see you. know you've got a great big charity event tomorrow and we'll get to that. want to start with the state of boxing today. in your day marvin hagler, roberto durand just to name a few. where are the superstar boxers and do you think the sport doesn't attract the best talent anymore? >> boxing is always ebb and flow, takes a dive every now and then and boxing is a sport that can jump back with one fight, but i think there's a lot of talent out there. i just think there needs to be more exposure. >> so i think there needs to be more media attention, not that the media attention has hurt the sport. >> not at all, not at all. just the boxers need to be exposed more. did a show many years ago cold "the contender" and that show told -- emphasized who that person is, where he's come from and why he's doing what he's doing so boxing just needs a jolt of electricity to get back. >> a jolt, dom. >> do you watch boxing? >> i grew up in the mike tyson age and remember all those guys, and they were the ones we always wanted to watch. these days i understand that you had some of these big-name boxers, manny back pacquiao and floyd "money" mayweather. do you think if they went back in time and fought you guys, basically the basis of a rocky movie, would they win and would they have a chance against you? >> no. >> so that can't mean that this is about exposure then. why would the exposure level, do you think, change the level of talent and the quality of these guys today? >> because basically when -- during my era there were other great fighters, other fighters that were comparable to my experience. now you have whether it's mayweather or pacquiao at the time, they were a step or so ahead from the other guys, from an exposure standpoint and from an experienced standpoint and that has changed. back in the '70s and '80s were great fighters. >> yeah. and by the way, you're still in great shape today. kudos to you for that, i know that's something you're a proponent of, and by the way, know also a little bit about your charity efforts, have a big charity event going on tomorrow. you're working on diabetes. how important is that to you? >> it's very important, kelly, the fact that, you know, juvenile diabetes is really very personal to mow and my wife. we started the foundation -- well, this is our fifth year. my father is diabetic, my friends, their kids are diabetic so it's a very personal journey and experience for me and i couldn't have done this for five years without my supporter and friends b. rowley and company. they have been amazing. so excited. can't wait until tomorrow. great to hear. >> any interest in the clippers here? >> well, maybe. i'll call you on that. >> okay. >> please do. we'd love to know. that's a story everybody is following, of course. sugar ray leonard great to have you here and good to see you this afternoon. appreciate your thoughts. >> thank you so much. >> something called roya may soon give caffeine drinkers a shake. it could affect how much you pay out for your morning joe and a new report out tuesday looking at financial impact of global warming on food companies. we'll look at which companies may be at risk. may be at risk.yu the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account. that's keeping you from the healthcare you deserve. at humana, we believe if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care. ♪ let's close the gap between people and care. in a we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. what if it's too soon?. it's not too soon. look at the tub. yeah, we're gonna buy a house based on a tub? you had crazy eyes when we saw the garage. trulia says the mortgage is the same as our rent and it's in a great school district. ya know, cause we're going to start making babies. let's do it. what? yeah. now? yeah. barb's right there. not that part. oh. yeah. that moment you decide to buy. that's your moment of trulia. you could win 50 thousand dollars for your next home. visit trulia.com slash win today. welcome back. let's start here with courtney reagan and a quick market flash. >> yeah, kelly, we've got another mover for you. this one has nothing to do with earnings. check out shares of opthotex. the company licensing its experimental eye drug outside the united states to a unit of novartis. currently trading up more than 24%. back to you. >> feels like march all over again. thank you, courteney. your morning coffee could be getting more expensive in the near future. a new threat to the central american coffee crops. jane wells takes a look at what's brewing out there. jane? >> brace yourself. you may need a shot of espresso to handle this news. as if coffee prices aren't high enough already, the entire crop in central america and the caribbean is being hit hard by a fungus nicknamed coffee rust which has reportedly caused a billion dollars in losses already. could cut production as much as 40% for the next two to three years for high-end arabica beans. so the u.s. is yumping in like a venti triple shot of caffeine to help because this is a national crisis. it may be happening south of the border, but america runs on coffee, dunkin' or otherwise. the obama administration is giving a total of $14 million in aid through a program at text a&m to find a program to combat coffee rust. but look at this. coffee futures were falling for the second day in a row. this of course is more of a brazil story which is a huge producer of arabica. last week prices spiked on concerns drought in brazil would impact production. now, that situation may be not so dire. that situation in brazil. looking at coffee-related stocks today. well, let's see. starbucks and we didn't mean dendreon. they don't make coffee that i know of yet, although they are doing testing right now. no. that was supposed to be dunkin'. starbucks was the only one up to date that i saw. j.m. smucker owns maxwell house. i'm going to have more coffee. >> we're going to look up dnkn which is the ticker for dunkin' which should be been in there, not dendreon. but i'm relieved to find there wasn't a big spike today anyhow. thank you, jane. we need some more thoughts on this final thought coming up next. there's dnkn, down about 1%, as you might expect. so it's a clash of the titans. a new study saying london is the world's new financial hub. the panel weighing in on that and coffee, next. peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. bwho would have thoughts masterthree cheese lasagnayork. would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*? welcome back. so we were asking earlier about new york versus london as a financial center. london loving the pwc just named it this in its latest economic competitiveness report. i wonder if testing their relative coffee offerings isn't the better way of conducting this analysis. >> coffee's a heck of a lot cheaper here than it is -- >> they're big on tea. they like tea, which -- >> earl grey hot. >> i can't get behind. >> i've seen transportation. the london tube so much more satisfying. than the subway system. >> by the way, we're going to close out the hour with some more breaking news. it's going to be a busy week. it's been a busy hour. >> gopro is filing for its ipo as expected. the ticker will be gpro. $100 million. we're just now getting the details. and when we have more we will bring it to you. we've got to get this out on the nasdaq. gpro, its ipo. >> win for the nasdaq here. >> yeah. certainly interesting. i think the big one is alli baba. they haven't decided which exchange they have but this is a notch in the nasdaq's belt. >> and alibaba comes when? >> we're expecting the first week of august. could extend that after labor day. they don't want to go in the back half of august. it's the first week of august or you're looking at after labor day. >> and now gopro. dom? >> it's interesting. with this ipo picture we've talked about so many times, these ipos have not come out as hot ouz of the gate as they have in the past, in the past maybe 12 or 18 months. but we are seeing select ones do well. again, i mean, i looked at the data. zoe's kitchen came out here and it was a 60%, 70% pop on that one day. you still see some of those big ones out there but they're not as easy to come by as they have been in the past. >> to the point we were making earlier, it's a real company. >> they have a real product unlike some of these other companies that sell social media, games, or what have you. this is something you can actually buy. it's a physical object. and and i think that is going to make it trade differently than some of these more ethereal stocks. >> you can throw a billion-dollar evaluation, by the way, to twitch that google's buying today? i had no idea that was such a big business. >> me neither. i don't watch a lost video game streaming. but apparently there are a lot of people out there who do. >> or watching everybody else. guys, thanks very much. really appreciate this. "fast money" is coming up in just a few moments. melissa lee is back. melissa, what's on tap? >> hey there, kelly, we're going to continue going through this gopro filing. josh lipton in the house. he's looking through that filing right now. also a cnbc exclusive with one of the top retail performers so far this year and for the past 12 months, the ceo of kate spade joins us in an exclusive. >> can't wait for that one. all right. over to you guys. >> thanks, kelly. "fast money" starts right now. live from the nasdaq marketsite in new york city's times square, i'm melissa lee. our traders tonight are tim seymour, dan nathan, karen finerman, and guy adami. tonight's top story, buying growth. while everyone's talking about the nearly $50 billion deal between at&t and directv, there are two other effect deadlines reportedly in the works, google looking to buy video game streaming service twitch for $1 billion and twitter looking to buy audio sharing company sound cloud. so are all of these tech deals just a desperate attempt for companies to find growth right now? and that, dan, seems to be at least for the twitter move and this audio. >> i don't know if it's growth because there's no earnings in nif these things. but it's really eyeballs. it brings you back to 10, 15

Transcripts For FOXNEWSW Special Report With Bret Baier 20200703

the president and first lady in the air making their way to mount rushmore for the fireworks as you mentioned they will be having a remark tonight as they are in south dakota we expect the president will call out cancel culture and criticize those that want to tear down monuments of rewriting american history. >> were going to mount rushmore. >> president trump is kicking up the holiday weekend with a trip to south dakota mount rushmore where people are expected to watch a fireworks extravaganza. >> we will see a lot of people, a lot of different people. i think it will be a fantastic evening. >> organizers say masks will be divided back provided but people won't be required to wear them. south dakota homes are protesting though visits and they want mount rushmore torn down and the leader, they are riding we are the ones who live under the fear of those who have wronged us. the president will hold a salute to america event and inviting front-line workers including doctors and nurses to the celebration while tens of thousands are expected to gather on the wall for a flyover and fireworks. they are encouraged to practice social distancing. >> cdcs saying that larger gatherings are a higher risk any of the take into account whether you are at risk for live with someone who is vulnerable and you have to take measures to say safe. >> and the surgeon covid cases, dr. anthony fauci saying the virus may be mutating and essentially allowing it to spread more easily. more research is needed to know for sure. >> it sees the virus replicates better and may more transmissible, but this is still at this stage of trying to confirm that. >> president trump treated thursday the increase cases is easy to explain riding "there's a rising coronavirus cases because our testing is so massive and so good to. far bigger and better than any other country." the president's campaign is self-aware. >> trade deals with china and mexico steal our jobs. >> adding today only hours after the jobs report showing 4.8 million jobs were added last month. maybe the most clear sign yet that the trump campaign hopes to win voters over by appealing directly to the pocketbook. >> in the remarks today, president expected call a great and virtuous campaign but the payoff we seen the last couple weeks and the responsibility of the left wing mob appeared at mike. >> mike: leading us off on the north along, mark, many thanks. at least 40 states are seeing kleiman coronavirus cases and governors ordered the wearing of masks in public and families are being urged just to celebrate independence day at home. correspondent johnson looking at the concerning coronavirus trends across the country. >> the virus isn't taking a holiday. >> the u.s. grapples with a new spike in covid-19 cases, this july 4th promises to be like no other. with many cds canceling or scarinscaling back displays. >> i urge anybody who is thinking about a backyards fireworks show, don't. fireworks are illegal in as a aa truce it's an dangerous and untrained hands. speak of the blue angels announce they will not fly at the pensacola beach airshow and airbnb announced its banning parties against large gatherings including the sunshine state which set a new record for kobe cases on thursday. >> the surgeon general, you know , we need to be prioritizing be safe and responsible. >> party health officials are trying to appease the larger memorial day gatherings which they say contributed to a dramatic surge in covid-19 cases that appeared in the following weeks. even in the great outdoors, they encourage caution as the larger than usual numbers are expected a popular natural attraction such as the american river in california. >> we have to keep educating and asked them to wear masks, ask them to social distance and respect other people space. >> north carolina, today, reported the highest number of hospitalizations in new cases and officials are framing mask wearing as more than just an issue of public health. >> where a face covering because you want to reunite the economy and support businesses. where a face covering so our children can be back at school. >> today at kansas and texas began requiring people to wear face masks public and plenty of states with similar mandates but other states such as georgia are hoping that it's a voluntary appeals will be enough to encourage people to do the right thing. mike. >> mike: live in atlanta, jonathan, thanks a lot. if more on the coronavirus pandemic, joining me now is fox news contributor and doctor, it's great to see a period of >> thank you. >> we seen some the covid-19 hot spots closed on beaches and parks the independence day weekend and is that why. >> well, yes, there's the area of a break in for example miami and parts of arizona and parts of texas because of the concern is that close people in high density crowds they can transmit the virus from one person to another. they are safe it's just the condensed crowds which should be concerning. the reports of the july holiday weekend has the potential for a perfect storm with potential 10,000 new cases daily and hospitals maxing out the capacity they have to take aggressive action and try to celebrate the holiday weekend and home that minimizes person to person interaction with new people outside of your family. if really important in a course in addition to the physical distance and if you're going to go out and celebrate, try to keep six to 10 feet and socialize outdoors and of course where your masks. that's very important because masks can help the transmission reduction from about 17 to 3% which can save thousands of lives over the next few months. >> mike: as much as the country has reopened there's been out emphasis on the masks for americans who have quarantined fatigue and how much of a difference does wearing a mask make when you're out and about? >> wearing a mask does not mean you should not practice physical distancing and the lease data that we have shows that you could be protecting others and yourself and shows that by october 33000 lives would be saved. it certainly helps and it's not 100% and that's why in addition to wearing your mask, physical distancing and hand hygiene, avoiding clustered crowded areas with high density like bars and restaurants is important. the virus potentially could be mutating where it's three to time more transmissible in three or more times contagious. if that's a big issue and so we have the tools and the power and the knowledge to fight the virus and it's just a matter of compliance being attentive and then hearing to the cdc guidelines. >> mike: doctor, final moments and as you know young people think they're invincible and a final message to them heading into the independence day holiday weekend. >> be safe, be smart, we want to open up sooner than later. remember, the virus can affect anyone from newborn to children, senior citizens and together we can also protect one another and open up sooner than later. very important to galvanize one another to do the right thing so we can get back on her feet again. remember, it's better to act as if we are all carriers and get back on her feet again. >> mike: isn't smart to watch the fireworks from home and look up in the sky or on tv? >> definitely a safer alternative because of your outdoors in close contact with him on another, talking, shouting, to be transmit the virus and get into the nose, the mouth, the eyes of other people and it's definitely you can acquire the virus that way so any opportunity that we have the check ourselves and protect others we should certainly take that opportunity. >> mike: dr. jeanette, wishing you a safe and healthy independence day weekend and thank you for your time. >> thank you, mike, you too. >> mike: washington redskins after a thorough review of their name like sponsors nike and fedex and correspondent david is following that story. a good evening, david. >> good evening to you, mike even talk of the name change has been a long time coming when it comes to the team and you mention the washington redskins and just conducting a review and no final decision has been made at this point but the wheel started moving when fedex put out an incredibly direct to statements to aldus fans across the country and to the team management and want to read it to you. "we communicated to the team in washington and our request that they changed the team name." the single sentence got the redskins owner attention. the request comes just a day after 87 investment firms and shareholders sent a letter urging nike, pepsi, and fedex to stop doing business with the team until the team name changes. if going to the nike site if you want to tell by something redskins related, you can't in the company took all redskins merchandise off the site until there is a name change. it's important to people who are fans of the team and last october when the redskins play the vikings, demonstrators in minneapolis march against the team name. owner dan snyder released a statement this week "the process allows the team to take in account nods at the proud tradition of the franchise but in part from the alumni, national sponsors, national football league, the local community. it's proud to represent on and off the field. "quite a far cry from his quote seven years ago "it's never going to change the name. never." the new head coach, ron rivera, previously in charge says "the issue is a personal importance to me and i look forward to working closely with dan snyder to make sure we continue the mission of honoring and supporting native americans and our military. a clos"one of those names you can expect not to see the ol name for the team, the braves, but and if a leader said that he's supportive if the team wants to change his name. mike. >> mike: david spot reporting, david, thank you a lot. in a democracy 2020 report former vice president joe biden announces his choice in early august and he says it will be a woman. jacqui heinrich looks at some of the candidates. >> conventional wisdom said former vice president will pick a woman of color as his running mate most likely a black woman. the country is demanding by the dell mike dubke at the table, and black woman who voted at the highest rate of any racial and gender group and the 2008 and 2012 election. >> normally running mates, they don't help that much and there's no really political signs data that says that they do, and then 2020 is a whole different ball game. >> experts consider kamala harris topic on the national stage in her own presidential campaign she brings legislative and law enforcement experience despite progressive criticism of her record as attorney general. if congress woman bell dummy, former police chief of the swing state and black lives matter's t and in the impeachment manager. other pick like atlanta mayor, they lack a federal experience but she has it to del castro could hurt her for the voters. obama's former national security advisor when added to biden's foreign policy know-how. biden has not committed to choosing a black woman but experts say the choice will reflect the future of the party and there's a chance progressives get left behind. senator elizabeth warren in the running, but she is white and older. >> i don't think she would move a lot of voters but i think there would also be a level of disappointment and concern about, okay, joe biden where you going to make sure our voices are at the table? >> woman of color offering perspective and experience like senator tammy duckworth and asian combat veteran, experts think it's unlikely woman on the short list will make the cut. it's unifying the democratic party. it mike mike. >> mike: jacqui heinrich in new york, jackie thanks a lot. ghislaine maxwell is behind bars helping jeffrey epstein sexually exploit and abuse minor grows. one woman says when she was 14 years old maxwell recruited and raped her. if she were requested to be anonymous and bryan llenas has this report you may find disturbing. >> she is just as evil as jeffrey epstein. >> for the first time, a woman who wishes to conceal her identity is speaking publicly claiming that is elain maxwell d her. >> she is a rapist, it was a bust of the best years of my life being a high schooler, a cheerleader. >> coaching her, having sex with men and she stopped after being pregnant with epstein's baby and having an abortion. but for gordon's measures she said she quit again rape one last time. >> she was a part of it and i was drugged. getting raped and left in the lawn and the man that drove me home said i would never come back alive if i spoke about it. >> jane doe's legal team is researching whether she can pursue legal charges but looking for maxwell in the upcoming trial. >> absolutely, i would definitely take a stand and testify. >> people felt cheated when mr. epstein committed suicide in prison and they didn't get a chance to sit in the courtroom and see the judicial system play out. they're hoping there is a different result. >> they corroborated her claims when asked about the specific allegations in the attorney for maxwell said "no comment." mike. >> mike: bryan llenas, thank you very much. racial tensions in the 1960s and why they were attracted by the democratic president. fox affiliates around the country, our coverage tonight. if fox ten and police say a man rubbing a gas station convenience store fatally shot a bystander and the robber turned shooter was then killed in a wild west shoot-out with another bystander was injured in the exchange of gunfire. none of those involved were identicallimmediately identifie. reporting a major league baseball had 38 positive covid-19 tests as training resumes. at 31 players and seven staff are infected, spread across 19 teams. opening day has been rescheduled for july 23rd. this is a live look at denver from fox 31, one of the big stories there tonight colorado joining new jersey and new hampshire and allowing legal batting on the famous hot dog eating contest for the first time in the event's history. at the july 4th tradition will take place any undisclosed private location with a social distancing measures in place rather than coney island new york. that's tonight's live look outside the beltway from "special report." we will be right back. ♪ whoo! don't do it. don't you dare. i don't think so! 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[ baseball bat cracks ] you get relentless protection. bshouldn't prevent you from pushing your limits. because every baby deserves the very best start in life. because a changing environment should mean caring for the land that takes care of us all. at bayer, everything we do, from advances in health to innovations in agriculture, is to help every life we touch. at bayer, this is why we science. because now you can expewatch all your favorite hulu shows and movies on xfinity. you're only a voice command away from award winning shows like the handmaid's tale, to new hits like little fires everywhere. and fx originals you can only watch on hulu. that's just the beginning of what you can experience with hulu on xfinity. tv made simple, easy, awesome. ♪ >> the lid into 1960s, at the time, abreast of black and white, lipids and conservatives was established to look into the unrest. the group's conclusions were roundly rejected b by the country's democratic president. since then, history has repeated itself time and time again. correspondent douglas kennedy reporting on the commission's predictions and talking to the last surviving member. >> this is all really familiar. >> yes, this is a scene that has been repeated unfortunately as many times in the past. >> detroit, 1967. if los angeles, 1992. if ferguson, 2014. everywhere, 2,020. >> for some, it's the same thing all over again. if john costigan doesn't want to say i told you so. back in 1968 he worked for a commission that predicted it all. so, the commission was actually the first time the u.s. government testified racial inequality and institutionalized racism is the root cause of urban social unrest. >> that's why it's so controversial at the time. >> the most famous passage mourned and our nation is moving toward two societies, one black, one white. separate and unequal and they work conclusions that irritated then president lyndon b. johnson who wanted the commission to confirm that outside groups were the problem. organizing protests for nefarious political purpose. >> president johnson himself, unfortunately, believed that there were some conspiracy behind these riots. he thought that they were organized and we found that simply not true. >> former oklahoma senator fred harris if they last surviving member of the actual commission. >> the police have become more and more militarized, more separated from the community where they are supposed to protect and serve. >> the current commissioner concluded that racism was everybody's problem and that racial inequality would never be solved unless everybody came together to solve it. >> it's a sentiment that he is saying is much apparent as much today as it was back then. but today's protests are actually giving you a little bit of hope. >> well, yes, because i think what people have been able to see is visible representations of what african-americans have in the day-to-day relationship with a circular structure and with the police. >> both he and harris say we have a chance now to finally address the generations old problems and he says that we better take advantage of it. it just outside lafayette square and washington, d.c., douglas kennedy, fox news. >> mike: cap next, we hear from world war ii veterans ahead of the independence day weekend. first beyond our borders tonight. these forwar four people are ded 100 injured after our fireworks explosion and turkey. three people unaccounted for and efforts to control the fire were hampered by continuing explosions and cause unknown at this point. botswana's watching investigation after 275 elephant carcasses have been found in recent leaks excreted coaching, which is a problem in the country, has been ruled out as the cause. officials are using aircraft to better understand the mysterious loss of life. if covid-19 is considered a unlikely candidate, but for now nothing including poison has been ruled out. the u.s. as to why dwight, eisenhower has spent 169 straight days at sea, a record for an american warship. nuclear powered air shape carrier is currently in the arabian sea. some of the other stories beyond our borders tonight. we we'll be right back. ♪ the longest lasting aa battery in the world. 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(crowd applauding) therabreath, it's a better mouthwash. at walmart, target and other fine stores. ♪ >> mike: the fourth of july marks one moment of independence for america but the fight for freedom did not end in the 1700s. through many wars and political debates and centuries, the fight continued. with assistance from "national geographic" about my calling bret baier looks back at the greatest generation who helped win world war ii 75 years ago. >> bret: they are are among the last surviving voices of the second world war. >> i never thought i had a chance to become a pilot but world war ii came along. >> there's no make-believe or anything. whether or not, it's going to be the truth. >> bret: the stories of these two veterans and others are chronicled in "national geographic"'s coverage of the 75th anniversary of the end of world war ii in their june 2020 issue. that quarter-century milestone is being celebrated across the globe. >> the military parade in moscow's red square to celebrate the victory over nazi germany. they estimate over 3,000 world war ii veterans our life but the number declining every year, capturing the stories is more critical than ever. he restored served with the intent of the famed men remain today. >> i felt as though that aircraft was an extension of my body, as though my arms were the wings. >> he says he wants the tuskegee airmen to be remembered as good citizens who helped protect his country during the time of need. >> even in the face of discrimination, it's quite a thing. these guys had been segregated all the time. how did they fly? are they good pilots? the answer is, yes. of the speech of the postwar budget cuts forced stewart out of the air force, he was denied a position as a commercial pilot and transworld islands because of his race. >> i applied with a couple of airlines as a pilot and i was denied from being accepted because of my color. so i went back to school and i got my degree in chemical engineering. as the years passed, i would go to the airport to their end lo and behold there's african-americans sitting behind the controls and ready to fly the aircraft and the one that truly brought tears to my face was when not one, but there were two african-americans sitting in the cockpit they are. they were both women. so, that was quite a thing. >> bret: for victor greg, author of a hot "hot of tea" whe he signed up for the british army on his 13th birthday. up serving as a rifleman, his name was pulled out of a had for a parachute brigade. >> when we jumped, they said in the first hour, there'd be deceased guys because of the fire. now the 460 who jumped, there's only about 180 of them. those jumping who jumped off the deck i jumped off with the day before. >> bret: both served with a sense of duty to their countri countries. >> that's what were supposed to do. we done it, and that's it. we made the best of it. >> i'm a strong patriot, i feel it's like the constitution of the united states which is the most beautiful document anybody can ever read. the practice of it is not perfect and it's not perfect today and may not be perfect tomorrow, but it keeps getting closer and closer, and closer and in that vicinity. >> in washington, bret baier, fox news. >> mike: president trump pushes ahead with july 4th festivities despite spiking! virus numbers. the panel is next. ♪ kraft. for the win win. and my side super soft? yes, with the sleep number 360 smart bed on sale now, you can both adjust your comfort with your sleep number setting. come on pup, time to go. can it help me fall asleep faster? yes, by gently warming your feet. but can it help keep me asleep? absolutely, it intelligently senses your movements and automatically adjusts to keep you both comfortable. so you can really promise better sleep? not promise... prove. it's our 4th of july special, the queen sleep number 360 c4 smart bed is only $1,299, save $400. plus free premium delivery on all smart beds when you add a base. ends monday. ♪ >> mike: joined now mount rushmore, it's in great se and it's going to be in great shape for centuries to come. we're looking forward to it and i making a speech there and i'll be seeing a lot of people and a lot of different people. you look at what's going on, the mountains all over, i think were going to have a very strong cliche. >> every single person has to make up their mind and people going to beaches, barbecues, different environments and they still look at their individual risks. as you mention, cdcs has larger gatherings are a higher risk and the most important thing i would say the people as if if you do go out to a gathering in public, please come out where a face covering. >> mike: president trump making his way to mount rushmore and live look they are courtesy of the white house on the scene and folks waiting for the arrival of air force one and president trump and senior administration officials telling us the president will talk about the anniversary of america's founding and tell the truth about americans histories and tell about those trying to tear down and divide the country. key points the president is expected to make them out in america is a great and virtuous country, we carried on our history we will not be able to understand ourselves where americans destiny. the left-wing mob and those practicing tensile culture are engaging in totalitarian behavior that is completely alien to american life and we must not accept it. with that, bring in our panel. new york, chief political correspondent, julie pace, of the associated press and "washington post" columnist, marc thiessen, they're going to strike the night. >> one of the things they're going to talk about this essentially law and order in the time of unrest and he's been inconsistent in the way that he's dealt with that disorder across the country and needs to develop a consistent position. how many people have watched as crowds tried to tear down or torn down statues and a number of cities across the country and their first thought was "where at the police?" the president himself almost allowed them out to take down the statue of andrew jackson right in front of the white house. the president actually needs to get a stronger and more consistent position on that and make clear where he stands on all of this. >> mike: we are four months to the day from election day and president trump missed the opportunity to get out and speak to his crowd and going to mount rushmore tonight. your thoughts? >> talking to a lot of republicans this week and there's a hope that the president four months from election day would be trying to reach out to some of those republicans and independents who don't necessarily see the president reflecting their views and their concerns about public health crisis, the economy. if instead, i think we will see tonight the president who's really meaning in to the message that his face wants to hear. he sees the selection is one where he can win if the base turns out and really large numbers and i think he is signaling to those i can republicans who we talk to this week we would like to see him ever so slightly reach out to those independents that this is again going to be a campaign that is really targeted toward that base. >> mike: the luxury of having a former white house speech writer on the panel tonight, so your thoughts on the scene going into guides they could find allg event? >> dr. martin luther a king suggested the project and that the ideas funding was inherently racist and i would encourage him and anyone today or the a fourth of july weekend and go back and read the ""i have a dream" speech" because he embrace the rentable's of america's founding and we have to live up and he said we come o our nation's capital and when the architect of our republic wrote the magnificent words of the constitution and the declaration, they were signing a promissory note to which every american was to follow and a promise to all men, black men and white men guaranteed a unalienable right of her life, liberty and the pursuit of happiness and we've come to cash the check. it is the opposite message of the black lives matter of movement. not that racism was unfair, racism is un-american and a black lives matter movement as saying that the opposite of a debt that basically racism is american as apple pie and baste into our system and that is a message that martin luther king rejects. >> mike: hearing the president speak and of course, covid-19, here's dr. anthony found she sounding the alarm. speak of the data that we're showing, that there is the center of rotation makes the virus be able to replicate the data and have a high viral load the manager seems that the virus replicates in a way that's more transmissible. but the system at the stage of trying to confirm that. but some very good geneticists are working on that right now. >> mike: for four months out frm election, what are the covid-19 concerns? >> they are real, and the growing although there's a different characteristic to this wave of the disease in the sense that there are better treatments for aids and no doubt about that politically. i mean, part of the big problem of the president's rally in tulsa was that he held a large gathering indoors. that's really the highest risk of transmission. you think about the month rushmore event is that there will be a lot of social distancing and perhaps not everybody will wear a mask but it will be outdoors which is a much better idea. and the president took a lot of criticism for that. holding the rally and door and tellin tulsa, and most of thosee outdoors. >> mike: looks like a great crowd there mount rushmore in your thoughts heading into the event tonight with the covid-19 concerns? >> i think the challenge for the president right now is he so clearly wants to move past the pandemic and he really wants to focus on the economy and he wants to see it behind us but it's not. if he has this challenge as he addresses the crowd and talks to the nation over the next several months is to look as though he's not ignoring what's happening a lot of the states that were talking about right now where we see cases on the rise are battleground states. if at least come up the present has to win if he wants the determent. he saw a lot of advisors around him to address what's happening there. >> mike: the lightning round, the debate over renaming the redskins, and this week's winners and losers. ♪ nc i should get a quote. do it. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ car vending machines and buying a car 100% online.vented now we've created a brand new way for you to sell your car. whether it's a year old or a few years old, we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you, pay you on the spot, and pick up your car. that's it. so ditch the old way of selling your car, and say hello to the new way-- at carvana. ♪ >> in the same way the redskins have evolved and despite its history is an opportunity to learn. i think with the sensitivities of a mass of people has to do with a decent simple elementary respect. you don't use that word if you can avoid it. >> mike: late great charles on the redskins name change and the debate continues seven years later and back with the panel, byron, julie, and marc thiessen. if so some major sponsor saying we are pulling our money and so it's now a may be? >> listen, it's going to happen. if the idea of holding and making a study of the change is just a prelude to actually doing it. if the difference between now and what happened in the past is a change in corporate america and not only of the nfl business opposed to the name by the fedex and the company which purchased the naming rights to the redskins stadium. now they very clear once the name changed and other respondersponsorships as well. >> mike: julie, your thoughts? >> this isn't a public sentiment change and a lot of pressure on the redskins for a lot of years to take the step and i think a lot of this about money. when you start to lose sponsors in the main sponsor of your stadium, straining to say were not comfortable with the name, i really don't think they have any choice moving forward to. >> mike: marc, sounds like a new name could be a new merchandise and old gear could be retro. probably a lot of money to be made if changed? >> this is being done for the welcome but not the native americans and 90% of native americans are not offended by the name and 80% would not be offended if you came up and called them a risk into their face. if this is not done for the native americans and done for the mob lets terrines down the statues and terrorizing the country but you know what, they're coming after the chicago blackhawks and the atlanta braves in the kansas city chiefs next. this is only the beginning. >> mike: got a little excited about candidate casino and let's go there. okay, joe biden sweepstakes and byron where is your money going? >> i think the big question is whether the democratic base will be happy with eight all-white ticket and my guess is they will not so i'm still high on kamala harris with $40 and if they're okay with that, elizabeth warren next with $20. the bottom with $15, and the possibility at $10. >> mike: julie, waste your money going? >> i'm with byron, there's a lot of african-american women inc. attention and 30 on kamala harris who's leading the pack right now, $20 on val demings and the mayor of atlanta. $20 on the dollars on elizabeth warren, hanging on the favorite a lot of liberals. >> mike: it's marc? >> i'm agreeing with everybody it's going to be an african-american woman and i think it should be which is val demings because joe biden needs to reach what the base in the swing voters and get them excited. val demings was the impeachment manager and a former police chief and that would strengthen joe biden's message that he's a a moderate not just with the police. if $20 on kamala harris, and susan rice susan rice. >> mike: it's friday, it's time for "winners and losers." byron, you go. >> were and are is who for eight years was a translator for american troops in afghanistan and credited with saving five american lives while targeted with the taliban. this week, very happy and fun for everyone involved in the loser is elaine maxwell, jeffrey epstein's girlfriend and close associate for year. now she's been arrested and we might finally learn more about what epstein did with some of the very rich and very powerful friends. >> mike: going to julie, winners and losers? >> winner this week is the biden campaign. all the polls are moving in the direction and big fund-raising week and of course he don't want to be the winner in july. if my loser, fireworks. i love fireworks. >> mike: marc, take it away. >> my winner is the u.s. economy, creating 4.8 million jobs in the last month, 20 times and not only a record but 20 times the normal rate of expansion. we will have 20-30% economic growth and trump will be writing a economic wave into the campaign. if my loser joe biden because he was downplaying the good economic news and america has been through so much and are race riots, pandemic, the worst economy since the great depression and get some good news and joe biden says don't celebrate. it give me a break. >> mike: went all right, thank you very much an action-packed week. it will be come back, this week's "notable quotable's." ♪ right to the edge and the biggest slices in papa john's history. but it's bigger than pizza because $1 from each sale is donated to support communities. this crisis is going to be over know exactly when and we don't know exactly when the stock market will reach its bottom, we've got to be prepared for this to last a long time. if you assume that you're out of work for nine months but you end up only being out of work for three, well that's great. but if you think you're going to be furloughed for three months and it lasts for nine, well that'll be emotionally devastating. so, we've got to prepare ourselves. tangibly and practically, as well as psychologically and emotionally. or psoriatic arthritis, little things can become your big moment. that's why there's otezla. otezla is not an injection or a cream. it's a pill that treats differently. for psoriasis, 75% clearer skin is achievable, with reduced redness, thickness, and scaliness of plaques. for psoriatic arthritis, otezla is proven to reduce joint swelling, tenderness, and pain. and the otezla prescribing information has no requirement for routine lab monitoring. don't use if you're allergic to otezla. it may cause severe diarrhea, nausea, or vomiting. otezla is associated with an increased risk of depression. tell your doctor if you have a history of depression or suicidal thoughts or if these feelings develop. some people taking otezla reported weight loss. your doctor should monitor your weight and may stop treatment. upper respiratory tract infection and headache may occur. tell your doctor about your medicines and if you're pregnant or planning to be. otezla. show more of you. ♪ scream and finally tonight, it's friday so this week's "notable quotables." >> if you don't have confidence, you're not going to do very well. >> majority of new yorkers want respect and no violence and were going to strike the balance. >> marked the date on the calendar how long it's going to be having a conversation about new yorkers crying out for more police. >> today we announced the arrests of the villains in the investigation and slithering away to a gorgeous property in new hampshire. >> they are very concerned and unsatisfied what's going on because we are going on the wrong direction. >> people believe should treat this like a hurricane and a hurricane is coming to my community. >> i had asked on and i like te way i looked. it looked like the lone ranger. >> i can hardly wait to compare my capability to the cognitive capability of the man i'm running against. >> this present is the most informed person on planet earth when it comes to the threats we face. >> there's people who use the taliban over years and years as proxy forces. >> right? they don't smell right. >> god bless america. >> mike: amen, a wild week in the world of news and not over yet. president trump will speak tonight from mount rushmore and 10:00 p.m. eastern time we will have complete live coverage and following that i will be back for fox news at night. tomorrow, starting at 10:00 p.m. eastern right here on fox news channel we will bring you president trump salute to american celebration and be sure to join me this sunday when i sit in for chris wallace on "fox news sunday" among our guests, labor secretary eugene and also speaking about the spike in coronavirus cases across the country with the director of the harvard global health institute. thank you for inviting us into your home tonight. make it a safe and great holiday weekend. if "the story" hosted by jon scott. good evening, john, have a great show. >> good evening to you, mike, thank you. at this hour, president trump boarding air force run it kicking off july 4th weekend on mount rushmore. celebration fraught with controversy not only because of covid-19 concerns, but also because of the growing movement to eliminate historic monuments from sites around the nation and that push including mount rushmore. good evening to you, i'm jon scott in for martha maccallum and this is "the story." fox news learning that he will address the left wing mob practicing cancel culture. if we won't be able to understand our destiny if we cancel it. if the term management of homelands descending for rapid deployment teams across t

Transcripts For FOXNEWSW The Story With Martha MacCallum 20190717 23:00:00

successful so far. those animals look good. thanks for inviting us into your home tonight, that's it for this to be 27. fair, balanced and unafraid. a lot of breaking news tonight, you can continue to see it right here with "the story" from martha. >> martha: busy day and busy night, thank you, bret, good to see you. so tonight, welcome everybody, expect president trump to come out swinging against the values and the policies of women known as "the squad." he has doubled down on his criticism of them and in front of this crowd tonight and just a short moment we expect in north carolina that he will likely trickle down this evening saying the democrats have no policy agenda that they are getting nothing done. his bowls have been on the rise lately, for which today he thanked the "vicious young socialist congresswoman." this battle are revving up his base and database as well as they get information on facebook going all these events. it comes at a time when democrats are struggling to get on the same page and the candidates are getting swamped by the attention that goes to these four women right now. no doubt the president's focus on them is magnifying that he's eating it up. a short time ago he was asked if he is enjoying this fight. >> i'm enjoying it because i have to get the word out to the american people, and you have to enjoy what you do. >> martha: here's why, watch. >> are you speaking to nancy pelosi? >> our teams are into medicatio medication. our chiefs -- >> but should it be face-to-face? >> she is speaker of the house, she can ask for a meeting to sit down with us for clarification. acknowledge the fact that we are women of color so when you do single us out, be aware of that and what you're doing, especially because some of us are getting death threats, some of us are being singled out in many ways because of our background. >> martha: at wow, very, very tense stuff there. so sean spicer and richard goodstein are standing by for more on the fallout of all of this tonight as we get ready for this rally, which we will take life, but first we're going to senator john kennedy of louisiana, a member of the senate judiciary committee. senator, good to have you here tonight. it would curse their mind as you listen to the sort of morning it sounds like from rashida tlaib and alexandria ocasio-cortez towards their speaker? >> well, i try to never get between a dog and a fire hydran fire hydrant, but it's clear that speaker pelosi is having trouble with some members of her caucus. we've known for a while, martha, that there are really two speakers of the house. one of course is speaker pelosi, but there's also a shadow speaker, congresswoman ocasio-cortez and i suppose you could other at the other members of "the squad" as well. >> martha: you are not referring to those three women as dogs, i assume. >> i'm sorry i didn't hear you. >> martha: you are not referring to those women as dogs, someone will accuse you of that when you talk about dogs and a fire hydrant. i wanted to give you a second to clarify. >> correct. that's what we call a metaphor. >> martha: exactly. it use it only a fool argues with bulls, or something to that effect. to expect -- do you think the president needs to clarify anything that he said when he was out there tonight, and you expect that he will? >> well, my original advice, for what it's worth, for was the president not to engage. i know some disagree with that, but when you argue with a full, it just means there are two. i've always believed that -- when your opponent is destroying himself or herself, you shouldn't interrupt. the so-called "squad" is doing a pretty good job of destroying the democratic party, which frankly i hate to see. i think having a strong system is healthy for america, but the point i'm trying to make is that if i didn't know better, i would think that the four congresswoman were g.o.p. plants, they are doing such a good job of moving the democratic party to the left so far that they are about to fall off of the cliff. >> martha: it's interesting. they are new to congress. they're getting an enormous amount of attention because they throw out -- >> it's more than that. it's more than that. look, this is america. the congresswoman are entitled to their opinions, but i'm also entitled to mine and they represent, in my judgment, a lot of what's wrong with washington, d.c., on both sides of the aisle. the congresswomen think that they are smarter and more virtuous than the rest of -- then ordinary americans, and they think that -- i think secretary clinton, during the campaign, called us "deplorables." the congresswomen think that only more government can make america great. government has never made america great, it's ordinary people doing extraordinary things that has made america great. i would also point out that calling someone a racist has become customary here in washington, d.c.? i don't think you see it in the rest of america. i listen to the democratic debates. if you don't support school busing you're a racist. if you believe in enforcing america's laws, including but not limited to its immigration laws, you're a racist. if you believe that america should stand up for itself, you're a racist. if you don't support reparations because you think it's a policy that makes no sense and can't be efficiently or effectively implemented, you're a racist. and most of the ordinary americans i know, they are not racist, and they are not misogynistic and they are not ignorant. >> martha: one of the things that we are going to talk about in a moment is just sort of where are democrats who don't agree with any of the things that you just listed? where are they left in this process as they move forward? >> i think they're scared to say anything. they have been threatened by the squad and others that they will be by married and they are all for diversity except they don't believe in diversity of opinion. >> martha: there's a story tonight about a trip that rashida tlaib, the congresswoman, and congresswoman omar are planning to go to israel and the question of whether or not benjamin netanyahu will allow that or will make a move to try to prevent that. there's no indication that he will try to prevent it but it's interesting when you look at this question. i just want to play this from congresswoman omar this morning when she was asked if she regretted any of her anti-semitic statements. watch this. >> oftentimes there are things that you might say, might not hold wait for you, but for someone else, right? the way that we hear and consume information is very different than how the next person might. >> so you don't regret your words either? >> i do not. >> martha: she does not. how does that sit with you, sir? >> i rest my case. congresswoman presley, it hasn't been reported by many members in the media, but she gave a speech last week, she said, and i'm going to quote, quote, "we don't need any more queers who don't want to be a queer voice." look it up, you will set it. you won't find it in the mainstream media buried in my calling her a homophobe? no. but i was offended by that. but yet her hand is not called when she says things like that. >> martha: senator, thank you. i know you're going to be watching this rally as we watch the president's latest response -- >> actually are not. i just started watching "breaking bad" and i'm on the ninth episode. i'm about two years behind so i'm going to watch episode ten. >> martha: more power to you, sir, because i started it after it ended and watched it pretty much straight through. it's really good. if you're going to have some good entertainment tonight, i promise you. >> way cool. >> martha: thank you so much, senator. good to see you tonight. let's bring in sean spicer and richard goodstein, were not going to be watching "breaking bad" tonight. going to be watching what we watch as we move over this evening. that was so funny. good to see about tonight, thank you so much for being here. in terms of the dilemma that democrats sort of find themselves in right now, richard goodstein, i want to show you a quote from a piece by thomas friedman of "the new york times" day. the title of which is "trump is going to get reelected, isn't h he." this is what friedman says. he says i was shocked -- talk about watching the first democratic debate and says basically he's looking for his candidate among this crowd and he says "i was shocked that so many candidates in the party want to get rid of private health insurance, were ready to decriminalize illegal entry into our country, support providing car brands of health care undocumented immigrants, and i was shocked by how feeble the front runner, joe biden,'s affront to the attack by kamala harris was in the extreme ideas promoted by those to his left." things started getting underway here, mike pence. give me an answer to that, richard goodstein, if you will. do you agree with tom friedman? >> actually generally do. he did miss one person, michael bennet, who george will just wrote a very glowing column in support of, who took issue with most of those positions. he's also at 1%. but i do think with the democrats going at the presidential candidate level is unhelpful. i think everything you just discussed with the senator misses the fact that the single biggest caucus of democrats are in the new dams, 103 of them, those new dimes are for flipping the house from red to blue. and in the generic ballot today, democrats beat republicans, who would you vote for for congress, by almost nine points. whatever "the squad" is doing, and joe biden is beating the president by nine, ten, 11 in the polls, so i agree it's bad news, and get it's not really kind of taking hold. reminds me of what the wrap was about the caravans in the run-up to the '18 election. i think the public is past that stuff. that's my opinion. >> martha: to exist, by the way. let me bring in sean spicer. to get things warmed up here for the crowd. your thoughts on that assessment? he called joe biden feeble, by the way, which is the same word of the president is using for them, and i don't think that's too good for the front runner. >> no. i think right now you've got the proverbial tail wagging the dog of the democratic party. these four freshmen are defining what these longtime politicians have to respond to. it's amazing -- joe biden has been the politics since 1973 and he is now taking his cues from a freshman democrat that's 29 years old to talk about what he wants to be for president. what used to be -- i know richard made a good point that all the people that got the majority, but the reality is moderate and blue dog democrats gone from being an endangered species in the democratic party to being extinct. the agenda is being driven by these four freshmen members of congress and it is an agenda that is going further and further towards socialism, embracing all of these things. in order for a democratic candidate for president to get ahead, they not have to embrace, but they have to one up. so as they do that -- and i disagree with richard, right now a poll means nothing. look at where donald trump was last cycle at this time. the reality is that when you have the front runners of the democratic party having to embrace and figure out how to one up this run to the progressive socialist left, they're going to have a big problem when it comes to explaining the cells to the american public and the general. >> martha: richard, very interesting to me, what friedman's argument, that he wants at this next debate, he wants one of them to step forward and say you know what, i'm not for any of those things that we just listed. i believe that if you cross the border illegally that you have broken the law. i believe that if you like your health insurance you can keep it. joe biden, for example, could really stand out if he steps forward and says, you know what, i don't agree with what they're saying on either side of me. there is a lane there for somebody who's willing to step into it. >> and again, what happened last cycle shows that there's a real kind of audience -- forget the national voters kind of generally for someone who on that moderate lane, and i agree it's kind of surprising so far that biden is not kind of forthrightly claiming that for himself. i would say that we find one controlled experiment, proof that the moderates are in control. border funding with a showdown between moderates and the liberals in the moderates toes won. >> martha: i think on the hill that's absolutely true. people are going to run against president trump and he's going to go out there and sort of paint your entire party as being in line with these for women's and thanked him and frankly so far what would seem doesn't really negate that. it sort of stands up. >> what still odd, with the economy doing as well as it is and with no new wars and everything, donald trump is low 40s -- i agree with sean, the polls aren't worth much but they are not nothing. >> martha: let me get sean here really quick. really quick. >> you've got to listen to what richard said. there is somebody occupying that lane. it's michael bennet and he is at 1%. the people were making up the constituency that will determine the primary and caucus goers for the democratic party aren't in that lane. there in the crazy left-wing shoulder. they're not even in the lane, they are literally driving on the crazy shoulder of the highway. the problem is that people who could win a general election by being in the moderate progressive pragmatic lane aren't able to win a caucus or primary in the current democratic party. >> martha: we are seeing that biden is losing traction, sanders is losing traction, harris is moving out. she's ahead in california and i'm watching south carolina because the newer polls that show there are going to be very interesting to keep an eye on. gentlemen, thank you. stick around, we're going to watch this as it unfolds but we are going to keep an eye on this of course and the other big story tonight, a small victory in the house after democrats, including the women that we just talked about called to impeach president trump this week. >> i urge house leadership, many of my colleagues to take action to impeach this lawless president today. >> it's time for us to impeach this president. >> i support impeaching as president. >> we are going to go in there and impeach the [bleep]. >> martha: remember that? to texas congress min al green has been behind this charge. the third time they try to do it but today the house voted 332-95 to kill the articles of impeachment that were actually introduced on the floor for the very first time since the president took office. the next opportunity to lay groundwork for this is going to be the mueller hearing. it will then leave breadcrumbs that democrats grab onto? during me now, congressman devin nunes, ranking member of the house intelligence committee, great to have you with us. >> were to be with you. >> martha: with regard to the mueller hearings, -- first of all, by the way, do you think they're actually going to happen connect >> i do. a pretty strong confidence level that mueller is going to appear. he's had enough time not to get briefed up. they expanded the time is going to be here so he's going to do a three hour hearing and a two hour hearing, two different committees. >> martha: in terms of what you expect in those hearings -- you believe democrats have been back channeling robert mueller in order to sort of in order to give him some ideas some helpful phrases that he could drop during this that might give them the momentum that they need to keep moving forward on the russia probe. >> i really expect the worst because bob mueller does not have to show up. he's doing this on his own free will. that tells me the last time he operated on his own free will everyone forgets, barr came out with a memo, was very clear about the decisions that he had made in a few days later, mueller decided on his own to go out and hold a nine minute press conference. so i am very concerned and i think we should expect the worst because he only has to say a couple things and the rest of the media -- are not seeing you here at fox, but 90% of the media will take one little phrase and run with it and try to run towards impeachment. >> martha: obviously we are not -- psychologist, but i'm just curious as you look at the history of robert mueller, a long history in washington, d.c., he didn't have to do this, as you say. something is motivating him, or someone is motivating him, perhaps the people who worked very hard on this project for two years would definitely want sort of their legacy to be understood in a way that perhaps is more favorable to the findings that they feel more substantial if not indictable. >> the whole report is a joke. i know there was no collusion and i know there was no obstruction, so in that sense it was fine. however, there shouldn't -- this whole investigation was an obstruction of justice trap. it was a trap and hope people understand why. mueller, when he walked in the door, knew there was no evidence of collusion and conspiracy, and they knew the only thing they have on obstruction of justice was comey's memos. comey illegally leaked those memos to the press and for what? in order to try to get a special counsel. >> martha: which he admitted. >> which he admitted. so sitting with this open for two years to me i think people should look at this as an obstruction of justice trap and then you can go through for the $40 million that we spent on this report, there are so many holes in this report. it was heavy on rhetoric and i'll would say it kind of read like a bad russian spy novel. >> martha: the folks on the other side of the aisle say exactly the opposite. they believe that most people haven't read the report. if they think lot of republicans haven't read the report, and they believe that this is an opportunity to sort of keep it alive and that once they ask their questions of robert mueller, sort of detailing some of those ten instances that were laid out in terms of possible obstruction, and then we who have read it know that when you get through the explanation it says but that is not what we found, ultimately, or it was indeterminable. >> believe me, we have went through this line by line, and that is how we know that especially in the collusion chapter, the collusion volume, he repeats himself. at the report repeats itself several times and one of the concerns that we are going to have is we expect someone who spent all this money to be able to answer the underlying questions to what built that collusion document. they had crazy things in that document. i will give you one quick one. but somehow the republican party tried to weaken its platform. that was a conspiracy theory. it's been debunked. there's no evidence for that. why was it even in mueller's report? they don't even look at fusion gps. the infamous trump tower meeting that was held -- it was like an 18 minute meeting with a russian lawyer. guess what? meeting the day off, the day before, the day after, with who whom? these are questions that mueller needs to answer. >> martha: we talked about them with you in the past. somehow you think that will go. what you expect robert mueller is going to say, that wasn't my mandate, that wasn't what we are doing to make other investigations that are doing that. and that likely what he was a? >> i think the american people -- if we are worried about his mandate originally was to look that there was any russian involvement in election. wouldn't you want to know who the russian lawyer, what other americans that russian lawyer was meeting with. why did that russian lawyer decide to go to the trump tower meeting? was her basic questions we would expect an investigator to ask, and my guess is he's either not going to answer, or they didn't interview fusion gps. which would be really bad. >> martha: we will see. something we are going to be watching very closely over the next few days. thank you very much, good to see you tonight. while we wait for the president in north carolina this evening, we will bring a trey gowdy, former chairman of the house oversight committee and now it fox news contributor. good to see you this evening si sir. i want to ask you about the contempt that two members of the administration were held in tonight. only a minute or two we think before the president comes out. also for commerce secretary wilbur ross. >> i will do it quickly. barr is ostensibly being held in contempt for not turning over a document he has no legal obligation to turn over. it would be against the law to do so. the counterargument, as you guys held eric holder in contempt. we did, 400 days after we asked for the documents. here's the good thing that wilbur ross and eric holder and william barr have in common, nobody cares what congress does. what we saw yesterday -- they can't even enforce their own house rules against their own members. there used to be a stigma attached to being held in contempt of congress. there ain't no more, so i would tell bill barr here a position to mike, your reputation is an incredible lawyer is intact. >> martha: what would you say to anyone who would say to you, well, because you guys held eric holder in contempt, lois lerner in contempt, you sort of -- ended up not amounting to anything, that that is what changed the contempt game? >> well, lois lerner was contemptuous of congress. eric holder, 400 days -- by one of the documents, not the drama. keep in mind we were still looking for the documents in 2018 long after holder and president obama were gone, we still one of the documents. 100 days. with respect to wilbur ross on the census, i think the administration mishandled it and they do have some explaining to do. it would be nice to explain it in front of a fair jury that has made up its mind. before mueller has issued a single consonant or vowel in his report, that ain't a fair jury. the one they wrote a letter together asking congress essentially to sort of discuss it further, to open a dialogue. to have an opportunity to go further. some look at the situation, say nancy pelosi doesn't want to go through the impeachment process with president trump. she sees that as a political pattern. the consort of a piece some of those that would like her to go down that road, but keep that whole story alive. >> there some of that that goes on on both sides. remember john boehner and ryan had another group they wouldn't call the squad but it was called the freedom carcass and they wanted to impeach rod rosenstein and they wanted to hold john costigan -- they want to impeach john costigan. so what happens, which congress has worked itself into obscurity, irrelevance. when you can go on the floor of the house is the president says, i'm going to do it with or without you and congress stands up and cheers, you have rendered that branch of government feckless and irrelevant. congratulations, the house doesn't matter anymore. white house and senate, doesn't matter. >> martha: can you give me a quick thought -- we will jump in there with the president when he actually start speaking. i guess is going to start speaking now. there he is, north carolina, standby, we will watch this together and we will jump back in a few minutes. see what we can further here. president trump. >> president trump: thank you, mike. we have all night. we can have a lot of fun tonight. nothing to do. we have nothing to do but make our country great again, and that's happening fast. it's wonderful to be back in this beautiful state with thousands of hardworking north carolina patriots, and thank you for your support. [cheers and applause] and thank you for that very big victory we had three years ago. time is flying. you getting ready? let's do it again, right? let's do it. i just heard that the united states house of representatives has overwhelmingly voted to kill the most ridiculous project i've ever been involved in, the resolution -- how stupid is that -- on impeachment. [cheers and applause] >> president trump: i want to thank those democrats, because many of them voted for us. the vote was a totally lopsided 332-95-1. 3:30 2-95. think of it, we have the strongest economy in history, the lowest unemployment numbers ever. we've rebuilt the most powerful military. it was totally depleted when i took office, and now it's rebuilt. [scattered applause] we passed the largest tax cuts and regulation cuts of any president or any administration in history. we took care of our great vets, including veterans choice and veterans accountability. [cheers and applause] and they want to try and impeach. it's a disgrace. so now we have that behind us. and i have to say this, and i will say it just once. what happened to me with this witch hunt should never be allowed to happen to another president of the united states. never, ever again. [scattered applause] and i want to thank republican leadership for what they've done for all of us by stopping that hoax, the russian hoax i call it, because america is winning again. america is respected again, and because we are finally putting america first. [scattered applause] our economic policy can be summed up in three very beautiful and simple words. jobs. jobs. jobs. we've created 6 million new jobs since election day. if i would have said that, nobody would have believed it. if i would have said that, the fake news would have said he is exaggerating. and i wouldn't have said it because i wasn't even sure we could do it. think of it, 6 million jobs since election day. [scattered applause] and by the way, north carolina has had its best economic year in the history of your state. [scattered applause] our country has added more than 180,000 people to the workforce, and think of that, through what we've done on a federal basis, you picked up over 180,000 jobs, north carolina. [scattered applause] think of that. and you have your lowest unemployment rate. if you have a lot of good things, but let's not talk too much about north carolina, lets win this election nationwide. [scattered applause] you remember, north carolina? that was going to be the clinton firewall. she spent a fortune here, and i kept coming in and coming out. they called it earned media. i earned it. i kept coming in and coming out and every time i left the set i don't think we will lose in north carolina. you know what? i was right, we won it. [scattered applause] so i just want to thank everybody. seriously, that was a big deal. november 8th, that was a big deal. donald trump has won the great state of north carolina. [scattered applause] a big deal. that was when you started to see the folks at a certain other convention, beautiful looking place. one of the most beautiful venues i've ever seen, but i don't want any part of it. it was unlucky. i don't want any part, but that's when he saw the people say what the hell is going on? what's happening? and then there was state after state. it was florida, it was south carolina. would love south carolina, right? [scattered applause] it was pennsylvania. remember, they wouldn't announce the numbers in pennsylvania, so there was 1% of the vote remaining. if i lost every one of those boats we still win by a lot, and they wouldn't announce it. they wouldn't announce it. and then we won the great state of wisconsin, first time in many, many decades. that a republican won. and then we had a surprise, but not a surprise to us, because we are bringing back the auto industry. brought so much back to the great state of michigan. that was a shocker, remember that? [scattered applause] do you remember a certain hand on that beautiful board and they said, you know, this board is getting awfully red, that's republican. there's a lot of red up there. we had a lot of that -- that was one hell of a night, wasn't it? [scattered applause] i think it was maybe -- there are those that say one of the most extraordinary and exciting evenings in history of television in the history of anything, and you know you can go all over the world. in some cases it was morning. you go to asia, you go to europe, you go all over and it was just record-setting. here's the point, we have to do it again. we have to do it. [scattered applause] [crowd chanting] >> president trump: and the reason we have to, not only to do new things, which we will, and you know statutorily, and we had all her somatic all sorts of arctic dominic which has all of her head. can you imagine if we didn't have to go through that hoax, i don't know if we would've done any better. to be honest with you, i think we've done more into and a half years than any president ever. first two and a half years. [scattered applause] but could you imagine what it could have been if we didn't have the witch hunt -- you said it. i won't say it, because it's a terrible word. so i will not say that this guy says if we didn't have the -- [scattered applause] no, no, could you imagine if we didn't have the time wasted, the time and everything. can you imagine -- a friend of mine said maybe you wouldn't have done as well. is that possible? that can happen. maybe we would have had too much time on our hands. who knows. i can say nobody in the first two and half years as any done anywhere close to what we -- not me -- what we've all done. so the unemployment rate. the unemployment rate among african-americans is the lowest in the history of our country. unemployment among hispanic-americans, where we are doing really well -- you know why? they want a strong border. they wanted because they understand the border better than anybody. they want that strong border. they want that wall that's being built right now. they want that wall and they really do. they understand the border better than anybody, and they don't want criminals coming in. they don't want crime coming in. they don't want to lose their jobs. they like the fact that their salaries are going up, that wages are going up. they will understand it better. so hispanic-american, the best unemployment numbers in our history. asian-americans, the best unemployment numbers in our history. [scattered applause] likewise women, 74 years. i'm sorry, women, i let you down, it's not in our history, but we are going to be there very soon, we are going to be there very soon. women are doing incredibly and women -- the men are going to get angry. [scattered applause] sorry, man. look at all those signs. women for trump. [scattered applause] wow, thank you. a lot of signs. remember last election? donald trump will never, ever get the women. then we got this tremendous number of women. we got this tremendous number of women and during the election night, they save what's going on? you know what it's called? suppression poles. suppression. goals are just as fake as the news itself, but women built a 60% -- i'm sorry to tell you this, men, they are going to sue me for discrimination now -- women fell felt 60% of all of w jobs created last year. women took 60%. what's wrong with you, men? but the radical democrats are trying to destroy all of our country's tremendous achievements and our country's tremendous success. unprecedented. we had unprecedented success. leaders coming from other countries, prime ministers, presidents, kings, queens, dictators sometimes. i hate to say it, dictators. they all start off by saying mr. president, i'd like to congratulate you on the incredible economy that you've created. the greatest anywhere in the world, by far. and sadly china will have a very good relationship with president xi, i really like them, but china has had -- it was announced -- or the worst year in 27 years. [scattered applause] and we had the best. and if our opponent ever got into office instead of being up to 2% -- instead of those 401(k)s of yours being up 60, 70, 80, 90%. crash, big crash. you would have had a crash the likes you've never seen before if they got an office because we freed up our country. we freed up our economy with -- especially with regulation cuts, but also with those big beautiful tax cuts. we freed them up. [scattered applause] the leading voices of the democrat party are left-wing extremists who reject everything our nation stands for. but again, i have to tell you, this boat was so big, after think many of the democrats. i really do, i respected. that was a slaughter, but many of those people that voted for us this afternoon, in somewhat of a sneak attack, a real sneak attack, many of those people that voted for us were democrats, and i want to thank them, because they did the right thing for our country. [scattered applause] republicans know that america is the greatest force for peace and justice in the history of our world, but these left-wing ideologues see our nation as a force of evil. the way they speak so badly of our country. they want to demolish our constitution. we can our military. eliminate the values that built this magnificent country. you have to look at some of the recent comments, which are never talked about. when you see the for congressman, isn't that lovely. [boos] i will give her just a bubble. i have pages and pages, but we don't want to bore you. don't want to go too long. but we have to give a couple because that's the great thing about live television. they can't cut it. representative ilhan omar -- [boos] of a really great state. i almost won, first time in decades and decades, minnesota. [boos] great state. [boos] [scattered applause] [crowd chanting "usa"] >> president trump: by the way, i keep hearing how much enthusiasm is in the radical left. i don't think i have enthusiasm, they are just fighting with each other. we have all of the enthusiasm. [scattered applause] he goes home now to mommy and he gets reprimanded, and that's the end. sorry, mommy. sorry, mom. didn't mean to embarrass you, mom. but it's true, we have the enthusiasm, folks. look at this, look at this. by the way, thousands and thousands of people outside and people that couldn't get in. thousands. we've got all the enthusiasm. they have gone so far left nobody wants to even think about it. so representative omar blamed the united states -- [boos] for the terrorist attacks on our country. saying that terrorism is a reaction to our involvement in other peoples' affairs. she smeared u.s. service members involved in black hawk down. in other words, she slandered the brave americans were trying to keep peace in somalia. omar minimized the september 11th attacks on our homeland saying some people did something. i don't think so. some people did something. yeah, some people did something, all right. she pleaded for compassion for isis recruits attempting to join the terrorist organizations. omar laughed that americans speak about china in a menacing tone and remarked that you don't say america with this intensity. you say al qaeda, it makes you proud. al qaeda makes you proud! you don't speak that way about america. and at a press conference just this week, when asked whether she supported al qaeda, that's our enemy -- that's our enemy. they are a very serious problem that we take care of what they always seem to come along somewhere. she refused to answer. she didn't want to give an answer to that question. omar blamed the united states for the crisis in venezuela. think of that one. and she looks down with contempt on the hardworking americans saying that ignorance is pervasive in many parts of this country. and obviously, and importantly, omar has a history of launching vicious anti-semitic screens. [crowd chanting] she talked about the evil is real, and it's all about the benjamin's. not a good thing to say. so that's omar. that's omar. and by the way, many other things. all you have to do is press the right button on your beautiful screen and you'll see -- you didn't hear this over the last two days. did you hear anybody talk about that? are collie, representative rashida tlaib -- [boos] agreed with omar's characterization of 9/11 and so that members of congress who support israel forgot what country they represent. and tlaib also used the f word to describe the presidency and your president. isn't that nice? even for me. she was describing the president of the united states, and the presidency with the big fat -- vicious, the way she said it, afterward. that's not somebody that loves our country. representative alexandria of cassio cortez. [boos] check out her scores, by the way, with her green new deal. the green new deal, where did that come from? she is conducted outrageous attacks against men and women of law enforcement. she compared american border agents managing a trinitarian crisis, that i always said was a humanitarian crisis, and they said it was manufactured. they don't say it was manufactured and we are stopping it. and i want to think mexico. they've got 21,000 21,000 soldw stopping people from coming into our country. [scattered applause] but cortez -- somebody says that's not her name. they said "that's not her name, sir." i said no, i don't know. i don't have time to go with three different names. we will call her cortez. it takes too much time. so cortez also said essentially nazis are running concentration camps. [boos] and when mike pence went down just a few days ago with members of congress and the media and you look at those so-called "horrible concentration camps" he said "wow, these places are clean. wow, they have air conditioning, they have water." and to be honest, it's not like they came -- we want to take care of people, we got to straighten out our immigration laws. you know, and a very short period of time, if the democrats would give us a few votes, we could solve the immigration problem, and it would be so great. [scattered applause] but these kids, and these people, come from rough places, and i will tell you what, some of them said "we've never lived like this before." they have water, they have air conditioning, they have things they've never seen, and we listen to her talking about drinking water from toilets, which was a lie, which was a lie. [boos] cortez said that illegal immigrants are more american than any person who seeks to keep them out ever will be. can you believe that? that's what she's saying. she described contemporary america -- that's you, that's me, that's all of us -- as "garbage." garbage. [boos] remember deplorable scope, right? that sounds worse. i think that's worse, but we will save it for whoever is going to be the nominee. right now sleepy joe is not looking too good. pocahontas -- pocahontas is gaining a little bit because we probably used the pocahontas a little bit too early, but that's okay. we will bring it out of retirement very soon. [scattered applause] may have a new one who knocked the hell out of buying during the debate. he said i wasn't prepared for that question, that's not a good answer. can you imagine -- according to the polls, i won every single debate, republican, and against hillary. can you imagine -- those are the polls. many, many polls. can you imagine if i said "i'm sorry, i wasn't prepared for that question." i'm gone. that's the end of trump. he's not prepared, he is not mentally prepared. that's his problem. but everybody that knows him knows that. but harris hit him with a pretty easy question on busing. what? i would say that's pretty easy. and he choked. he choked. and then he said i ran out of time. [scattered applause] he ran out of time! and you have a young guy. buttigieg. buttigieg. they are saying how to say his name. buttigieg. he's a beauty. he runs a failed city. his city is doing so badly. mike pence was the governor of that state. i said how was he as the mayor? mike is one of the nicest human beings you'll ever meet. [scattered applause] and mike said "he never did a good job. i'm so shocked to see him running." and then he goes back home and african-americans literally were so angry at him for the lousy job and he supposed to be a hot young star. if that's the hot young star, i guess i just don't know start them anymore. that's not a star. buttigieg. you say woot and then edge, edg edge. buttigieg. i don't see him dealing with president xi of china. i don't see him meeting successfully with kim jong un. i don't see him dealing -- and nobody has been tougher with russia than donald trump. i don't see him dealing with vladimir putin. [scattered applause] and we have good relationships with them and many others. except now we are no longer the suckers like with nato. we protect europe. we spent hundreds of billions of dollars and they are not paying their fair share. so last year i went and i said sorry, you've got to pay your fair share. 16 years was going like this, the contribution. now it's like a rocket ship $100 billion. [scattered applause] and i said to them, great people. 28 nations, including the u.s., i said to them, "listen, we are taking care of you. you screw us on trade and you don't pay her military bills. this is not a good deal for the united states." so we are taking care of trade. we want to do it nice and slow and easy. we have a world to balance. but european union is terrible to us on trade. frankly, they are as tough or tougher than china. just smaller numbers, that's the only difference. with china, $507 billion. you look over these for many, many years, they've been taking. and guys like biden say -- he was there eight years. "we'd stop that." no, trump is stopping that. trump is stopping that. [scattered applause] so representative ayanna pressley -- [boos] issue related in any way to elvis? i don't know. who knows? you never know. if she thinks that people with the same skin color all need to think the same. she said we don't need any more brown faces that don't want to be around voices. we don't need black faces that don't want to be a black voice. it would be over, right? it would be over. it would be over. but we would find a way to survive. we always do. here we are. here we are. we find a way. just this week she refused to condemn the nt for. are bad people. you know this? you notice they always attack people that really have never been attacked before. they attacked -- and i don't want to be disrespectful to people that have taken a lot of shots to the face, but they wouldn't attack some of these people in this room. they are not attacking bikers for trump. they are not attacking construction workers for trump. they are not attacking law enforcement or law enforcement -- or military for trump. they are attacking a single man standing there with the camera but never got hit or never got back before in his life. they don't attack the people that we wish they attack. that wouldn't be a pretty picture. that wouldn't look too good for them. antifa, these are bad people. these are sick, bad people. these are bad people. these are bad people, antifa. they don't get the bad press. the press doesn't want to talk to them. they are very evil. they are hitting people over the head with sticks. and i mean sticks. i mean that's even. they are whacking people with bats. very brave, they always show up with a mask and they are covered. because then they go home to mom and dad. they don't want mom and dad to know where they were. but they always attack people that really can't defend themselves very well, right? they are not attacking this group. they are not attacking north carolina. [scattered applause] so these congresswomen, there comments are helping fuel the rise of a dangerous, hard left, but that's okay because we are going to win this election like nobody's ever seen. [scattered applause] and tonight i have a suggestion for the hate-filled extremists who are constantly trying to tear our country down. they never have anything good to say. that's why i say, hey, if they don't like it, let them leave. let them leave. [scattered applause] they are always telling us how to run it, how to do this. you know what? if they don't love it, tell them to leave it. [scattered applause] i don't know. now watch, i will go back tonight, "sir, that was so controversial. sir." i'm just saying if their choice. they can come back when they want but they don't love our country. i think in some cases they hate our country. and they are so angry. even yesterday they went on a stage i said let me watch this. if the anger. if they were trying to be nice, but it's hard. it's hard for them to do. the choice for every american has never been more clear. the democratic agenda is anti-worker, anti-job, anti-citizen antifamily and anti-common sense. [scattered applause] with the exception of all of those democrats that voted for us today, we will give them. [scattered applause] they are fine. and they -- you know, you lose to them, it's different. it's okay. it's called normal political back-and-forth. but i want to tell you something. if the democrats are being so violent, so vicious, moving so far left, it's out of control. the republican agenda is pro-worker, pro-jobs, pro-family, pro-growth and hundred% pro-american. [crowd chanting "usa"] so we are thrilled tonight to be joined by several north carolina -- >> martha: president trump in greenville, north carolina, tonight laying out his case for what he sees as great successes

Transcripts For FOXNEWSW Americas Newsroom With Bill Hemmer And Martha MacCallum 20160615

continue. >> we will bring in some fresh eyes, additional personnel to continue with the search. last night at 9:00 pm this child was playing at the edge of the water of foot or so into the water when this alligator came up and attacked the child, the father did his best to rescue the child to no avail. >> we hope that changes. peter, where are we now on this story based on what you have learned? >> so far authorities have caught and killed four alligators in the area. they looked inside those gaiters but no evidence that any of the alligators they found had anything to do with the disappearance of this boy who was splashing around in a few inches of water. >> we are not focused on what is the outcome going to be? we are searching hopefully for a little boy to bring a family some comfort. >> rare for people to be attacked by alligators. very rare. >> this happened one monorail stop from the magic kingdom just after 9:00 last night. authorities worked all night long looking for the boy. when the sun came up they brought in more people to aid in the search using helicopters and pointing sonar at the man-made lake which is 14 feet deep in places and does connect to other waterways at disney world. divers are standing by if the sonar hits on anything but it is no longer considered search and rescue, it is considered search and recovery at this point although officials have a sliver of hope for a happy ending. >> the family is from nebraska. where were the boys's parents when this happened? >> his dad was standing right there. as best we understand from what officials say his dad tried to keep a grip on his toddler well the alligator grabbed him and tried to wrestle him away but the dead ended up with scratches on his hands and arms and that was it. his son was gone. the whole family is with counselors somewhere nearby and there are signs that say no swimming but there are not signs that warn of alligators which is something you see in a lot of places in florida. >> they often have fireworks, don't know if that was happening at the time. inside the magic kingdom, you are at a facility that is rated very high, police earlier said today that he was in the water a foot or 2 and his parents were nearby. what more have you gathered about that? >> there were fireworks happening, a family with young children, three young children, two parents got here on the 12th and we understand, camped out looking at the fireworks, the sun was splashing around in this lake nearby at the grant floridian as part of the landscape they designed every inch of by hand. it is all man-made and obviously the alligator came out of nowhere and their vacation took a horrible turn but they are here just hoping authorities can find their son alive. >> will police give another briefing soon or have you heard? >> we were just asking about that. there will be information given to us at a podium that is set up as it comes. >> back to you when we get headlines. >> we are getting new details in the orlando terror attack as we learn the gunmen's wife may face charges herself, this comes following reports that she not only knew about her husband's plan but drove him to the nightclub to scope out the area. she made her first public appearance yesterday, retrieving some of her belongings from the apartment she and the gunmen shared. she consultants correspondent catherine herridge is live in washington with more on the story. what more are we learning here? >> the shooter was checking out his facebook page during the massacre, he wrote about tasting the vengeance of the islamic state. two sources confirm to fox news there is evidence of significant premeditation and he did surveillance three targets before buying the gun a week before the massacre. we understand the surveillance included the pulse nightclub, a second gay nightclub in downtown disney. the house intelligence committee was briefed by the fbi homeland security and national counterterrorism center said he was unbalanced, prone to fits of rage where he mouth off about al qaeda, possibly conflicted about his own sexuality and layered on top with the kind of slowburn radicalization. >> he may not have fully noted himself. in previous years he would yell out, chanting about isis, al qaeda, talk about the sniper on the night itself. this seemed to be building up anger inside of him. islamist hatred, cracked at the end. >> we confirmed through law enforcement sources there questioning the wife, she is cooperating to a degree, she admitted she knew about the plans in advance but she did not do anything to stop the killing. this would be his second wife, second partner if you will. we are learning about some warnings from the army. >> fox news obtained this morning to army command center is a direct response to orlando just yesterday, there is no credible intelligence of a follow-on threat but major military events in june culminating with july 4th coincide with the holy month of ramadan and potential for similar attacks may be enhanced. ramadan may prevent unique incentives and opportunities for terrorists. many violent extremists claim heavenly benefits for achieving margin during ramadan especially in the last ten days. homeland security secretary jay johnson addressed the current threat level on special report. >> we will be issuing a new bulletin on or before june 16th when the old one expires and we will have some things to say about orlando and the current threat picture. i have literally taken pen to paper on this document and it is going to be something we will be issuing very soon. >> the army threat bulletin emphasizes the importance of identifying attackers or suspicious activity in advance of major events and that is the window where these individuals were most vulnerable and we saw this with omar mateen in orlando. >> now to the election. president obama jumping head first into the race for the white house taking on donald trump directly. trump doubling down on a temporary ban on muslim refugees in the wake of the attacks in orlando. president obama making a statement on the investigation and responded to donald trump this way. >> we now have proposals from the presumptive republican nominee for president of the united states to bar all muslims from immigrating to america. where does the stop? do republican officials agree with this? that is not the america we want. >> donald trump firing back. on the trump campaign what is he saying? >> reporter: a new rally at the fox theater were donald trump is expected to continue the war of words he is waiting with hillary clinton and barack obama. clinton and obama hammering on the divisive rhetoric that is absolutely inappropriate from the mouth of a presidential candidate. trump hearing from paul rhyne who said the proposed ban on muslims is not in the best interest of the country but trump is not backing down insisting he is merely pointing out doing the same thing over and over again when it comes to terrorism is not working. there needs to be a seachange in our approach, also suggesting barack obama's anger is misplaced. >> i watched president obama today and he was more angry at me then he was at the shooter. one of the folks on television said trump has gotten under his skin. he was more angry, the level of anger, that is the kind of anger he had have with the shooter. >> trump's most ardent supporters behind him but not everybody is that she is turning some people off with his talk. a new poll in the washington post shows 70% disapproval rating for donald trump. the only saving grace that hillary clinton's numbers are not much better, she is at 55%. >> we will wait for that report throughout the morning. i want to bring in john mccormick, good morning to you. there is a three way war here, trump on one side, president obama on the other. this is likely a matter of time. >> it was. in presidential elections with an incumbent president, that election hinges on whether you want more of the same or you want change and that is what we are seeing explicitly between trump and obama. great indicator who is going to win this election, with the president's approval rating is. compared to trump obama's approval rating has picked up in the last few months. hard to tell how the latest round will shake out but lately it seems as trump has surged obama has improved his image among the american people. >> you are making the case trump is making obama look better to voters. in what way? >> on the one hand you have trump making obama look better by responding to the terror attack, his first tweet was appreciate the congrats about being right about islamic terrorism. was not presidential or dignified. then he made cryptic comments about president obama that he gets it better than anybody understand referring to islamic terrorism. what does that mean? some ugly things. out of left field he decided he wants to know about the troops handing out cash in iraq, suggesting soldiers were stealing in a widespread basis. president obama is trying to make trump look better when he response to a terror attack by politically correct nonsense about more gun control, that is his response to a terror attack. americans want to see a strong effective response and have more confidence in our war against isis abroad, people have more confidence in obama and talk about gun control that doesn't inspire a lot of confidence. jon: we will talk to the trump team in a couple minutes. thank you. now the battle has been joined. >> we will talk more about it for the next two hours. security officials are on high alert. a new bulletin warning isis fighters may be heading to one particular city to carry out more attacks. we have those details. jon: using the term islamic radicalism will not change anything in the fight against isis. house homeland security committee mike mccullen answers that in a moment. jason chafe it's on this topic this morning. >> exacerbating the situation because he does not have a strategy. the president will not define the enemy and has no strategy or plan to defeat it. olay regenerist renews from within... plumping surface cells for a dramatic transformation without the need for fillers. your concert tee might show your age... your skin never will. olay regenerist, olay. ageless. and try the micro-sculpting cream you love now with lightweight spf 30. ♪ i could get used to this. now you can. when you lease the 2016 es 350 for $329 a month for 36 months. see your lexus dealer. i felt like i got hit by a train; i did. first thing he thought of was ...how am i gonna to take care of my family? 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not once has an advisor said to me if we use that phrase, we turn that around. >> president obama going off script fired up, two words matter. the chairman of the house homeland security committee from washington dc, welcome back. words matter certainly, so do actions. how did he argue how actions are winning the war? >> it is not a military strategy to say radical islam. the fact is he hasn't had a military strategy for the last three years. isis is not on the run, it is on the rise in sinai, egypt, growing in tunisia, libya, making some gains in iraq and syria. it is longer to take military action there. from iraq and syria to bomb isis. it has taken him three years to get to this point. you have to define the enemy to defeat it. that is a military strategist axiom. churchill didn't dance around the nazis, he called it fascism. president reagan and kennedy called it communism and they defeated communism. now we have a generational threat, struggle called islamicist extremism. we need to define it to defeat it. jon: with brett last night on gun control in america. >> this environment, sensible gun control where we minimize the ability of terrorists to get his hands on assault weapons. a matter of homeland security. a matter of homeland security. >> nobody wants terrorists to get weapons but their weapon of choice is ak-47, 100 million of them. this man is not on a watchlist at the time he purchased the weapons so it is a red herring and the federal courts have held that the weapon is protected by the second amendment. we have to do this in conformity with due process in our constitution and jay would agree. >> the killer works for security company. he had one weapon already and he bought two more. police have alerted small extremist groups en route to belgium. at this current rate it will go on and on. it is not going to stop. >> this was the next attack in the united states. the euro cup is a big target, the regional target that they converted when they became operational at the brussels airport. there is a big threat scream at the euro cup, multiple gains taking place in the same cell network from the brussels terrorist attacks targeting the cup in france. we are worried about this. i talked to french counterterrorism officials and belgium. we are all for good reason. jon: mike mccullough wrote the book failures of imagination, deadliest threats on the homeland. thank you for your time out of washington dc. we will speak again very soon. >> the democratic national committee database hacked including all the opposition research on donald trump. wait until you hear who was behind it. jon: president obama and donald trump going at it face-to-face on the republican nominee's proposed non-muslims, trump saying the president just does not get it. >> common sense. no documentation. we don't know where they come from. this could be a trojan horse. you are going to be 67. and on that day you will walk into a room where 15 people will be waiting... 12 behind the sofa, 2 behind the table and 1 and a half behind a curtain. family: surprise! but only one of them will make a life long dream come true. great things are ahead of you when your health is ready for them. at humana, we can help you with a personalized plan for your health for years to come. if yo...well do i haveen it all, a surprise for you. it's red lobster's new lobster and shrimp summerfest! with the lobster and shrimp... ...you love in so many new dishes, you're gonna wanna try... ...every last one. like the new coastal lobster & shrimp. with a wood-grilled lobster tail, ...wild-caught red shrimp crusted with panko, ...and shrimp fresh off the grill and brushed with... ...summer ale bbq sauce. or try the new lobster & shrimp overboard, ...because when a dish can wow you like this, ...overboard's the only way to describe it. but hurry, this ends soon. jon: the first vote to censure irs chief john costigan and. he is accused of mishandling the tea party scandal. if passing this committee the vote would move to the entire house. we will see which way that goes. activity is underway. heather: the washington post reporting the russian government hacked into the computer network of the democratic national committee and gained access to a database containing opposition resources on donald trump. more on that story, what exactly do the attackers get? >> they were able to access all emails going in and out of the dnc since last summer. that according to cofounder of the security from that investigated this breach. these hackers in the russian government have inside information on the democratic strategy for 2016 and that includes a lot of the opposition research on donald trump. yesterday the russian government denied involvement of a security firm that uncovered this breach saying they have evidence that indicates two groups tied to the kremlin, when is affiliated with russia's military intelligence arm, the other is the same group that believed to have targeted the white house, state department and joint chiefs of staff. >> what does this mean for hillary clinton? she has email security issues of her own. >> one of the big concerns about a secretary of state using a private email server has been the potential to be breached by foreign hackers. whether that actually happened is unclear but here is how hillary clinton responded when asked about the most recent breach. >> i will be absolutely focused on it because whether it is russia or china, iran or north korea more and more countries are using hacking to steal information to use it to the advantage and we can't let it go on. >> the chair of the dnc says the hackers have been kicked out and their networks are secure but the information that was taken is gone for good. heather: thank you. jon: tends moments of violence at a walmart and a man holding people hostage inside. we will tell you what happened next. heather: a desperate search for this toddler dragged into a lagoon by an alligator. an update on that story next. >> three children, trying -- cannot come to grips to what it must have been like to be in that situation, i can't imagine. think fixing your windshield is a big hassle? not with safelite. this family needed their windshield replaced but they're daughters heart was set on going to the zoo. so guess what, i met them at the zoo. service that fits your schedule. that's another safelite advantage. ♪ safelite repair, safelite replace. ♪ jon: tragedy in florida, working for more information on this. efforts to find a toddler dragged by an alligator has become a search and recovery mission. search cruz desperately looking for missing 2-year-old boy for more than 12 hours now. pulled into the lagoon by an alligator at the grand floridian at 9:20 in the evening. grews using helicopters and sonar to find the boy, locate the alligator. divers standing by in case sonar hits anything. this is what we understand, family of 5 out of nebraska on vacation waiting in the 7 seas lagoon at 9:20 last night at the same time the fireworks went off at disney. the father tried to rescue his son, clearly unsuccessful. of the report suggest the mother was in the water as well. the alligator said to be anywhere from four to 7 feet long but the exact size is not known. the beach area is part of a luxury resort, the grand floridian across the lake from the magic kingdom theme park, 50 law enforcement personnel searching that lagoon, two marine units trying to help with the effort through the night, police say the boy was on the edge of the water, perhaps, get this, only a foot or two in the water when the alligator attacked. there are signs all over the place about no swimming but when you are a foot or two in the water you probably think you are in a safe area. police described this body of water on the left side of the screen, it is large. it will take some time to go through all of this. we are going to talk to the police in orange county 30 minutes from now, we will have the latest on what they are learning today, 9:33. >> treating all muslim americans differently? are we going to start subjecting them to special surveillance? are we going to start discriminating against them because of their faith? we have heard these suggestions during the course of this campaign. >> president obama firing back at donald trump after the present of republican presidential nominee proposed a ban on all immigrants from countries with a history of terrorism in the wake of the orlando shooting. donald trump saying the president's anger is misdirected. >> i watched resident obama today and he was more angry at me then he was at the shooter. a lot of people have said this. the level of anger, that is the kind of anger he should have with the shooter and these killers that shouldn't be here. >> joining me now, alan calls, host of the alan coleman show and kristin anderson, washington examiner columnist, author of the selfy vote where millennial's are leading america. thank you for joining us. i will start with you. we heard president obama speaking yesterday, he was clearly angry, at times indignant, very impassioned. is it appropriate for president obama as a sitting president to do this, responding to donald trump? should someone else be out there doing it like joe biden? >> president obama is frustrated with donald trump's response. donald trump's response is far from perfect and there are lots of things he has done in the last 48 hours i haven't loved but america is looking for the president to have a moment like ronald reagan had after the challenger disaster where you offer comfort to america, hope to america and what president obama has done is by going after donald trump, by not talking about the fact that this attack was caused by someone who was a radical islamic terrorist, someone pledged his allegiance to isis you are not able to make the distinction between peaceful muslims and this man who pledged allegiance to a horrible horrible radical strain. if president obama is going after people for using the phrase radical islam that is misguided. heather: he carefully did not say radical islamist or radical islamic terrorism. he in fact said the terrorist in this particular incident in orlando was not using radical religion. instead he compared this to a thug. that appropriate? >> this was not about donald trump. the speech which was 12 or 13 minutes had one line about a guy who tweets and goes on cable shows, nothing other than that to do with donald trump. donald trump always makes everything about him. he talked about and he is right to say what these people are doing is a perversion of islam. it is not islam. it is a perversion of this great religion. the other point he made which is important is isis would like to make it a fight between islam and the west and by using that phrase which he eloquently described reasons for not using, by the way george w. bush didn't use that phrase either, we are playing into their hands using that phrase. george w. bush was careful too. heather: he said it was a political talking point and a distraction. if he believes it is nothing but a distraction and a political talking point and hillary clinton herself now since she is willing to use it, why not use it? >> the context of that was i am happy to say it if you want need to say it but it is not relevant. that is not what the issue is. this mono mania people have about whether barack obama or democratic candidates use the phrase is absurd. as the president pointed out this won't help our military efforts, this won't help defeat isis. this isn't a strategy that will get us where you want to go. isis isn't going to surrender if the president says islamic terrorism. all right, we given. heather: every military leader that i spoke to have always said you need to define who the enemy is. >> you don't think the president knows who the enemy is? heather: michael collins said compared to kennedy or reagan who both used the term communism, churchill used the term fascism. why is president obama different? >> you mention things that are ideologies, not religions. the president is very clear, as was i want to say again george w. bush did not use the phrase either, never incurred this kind of criticism against that we are using against obama. >> when someone says in the middle of -- 49 people in orlando, doing it because i pledged allegiance to the islamic state, he is using the phrase the islamic state. the islamic state says we are people -- >> should be happy he said islamic state. >> horrible her version of a religion but if you don't understand these people are being driven by religious fervor you can't have the right strategy to defeat them. perversion -- they are calling themselves radical islamists. these attacks during ramadan because it has a special meaning. if we say we are creating a caliphate, it is important to us to understand -- i don't understand why president obama's response is a talking point. the sky is blue and this man killed innocent people because wedging allegiance to the islamic -- >> you think -- if i could get a word in here. heather: he called him a loan actor and also said that he was self radicalized because of the internet. >> if you think this president doesn't understand who the enemy is, he did away with usama bin laden, killed more leaders of al qaeda than any previous administration, the idea that he will only know who the enemy is if he says a certain phrase that will make the right wing happy is insanity. >> not about saying a certain phrase but having a strategy. calling them -- nothing to defeat them. heather: thank you, people impassioned on both sides. jon: certainly can appreciate the fire. an explosion rattling the neighborhood. >> oh my gosh! jon: those flames breaking out at a warehouse in the middle of the night. a murder investigation. what happened inside? heather: what did omar mateen's wife know about the nightclub shooting and the charges she faces. >> we are looking for needles in a nationwide haystack. we are also called upon to figure out which pieces of hay might become needles. >> the muslim band is not in our country it's interest. it is not reflective of our principles not as a party but as the country. the smarter way to go in all respects is to have a security test, not a religious test. jon: paul ryan responding to criticism about donald trump. trump under fire after renewing his call for a temporary ban on muslim refugees coming into the united states. the senior advisor to the trump team with us live. thanks for coming back. i have a lot to go through in the next few moments. the disconnect with republican leaders when paul ryan talk like that, is this highlighted more than before? is it back? >> i certainly don't think so. i think the real issue is who keeps our country safe and i think donald trump in contrast to hillary clinton is the stronger person. poll after poll has shown americans trust him on national security infinitely more than they trust hillary clinton. at a time that is critical and important as this i think republican leaders certainly would rather see donald trump, most americans would rather see donald trump in the white house been hillary clinton. jon: paul ryan is talking about a security test, not a religious test. what is wrong with a security test? >> the problem is we don't have one. donald trump is calling for a temporary ban until we have a system in place that does keep our country safe and right now we don't have that and he is asking we put a temporary ban on muslims coming from countries that have had these issues not across the board, but we have to focus on keeping our country safe and until we have something in place that helps us do that and put some type of temporary -- we don't know who these people are or where they are coming from or why they are coming here but until we have a better system in place to do that, we need a better -- >> expanded to more countries this past week. is that what voters are responding to? give me a sense of the evidence that supports that. >> the support is people are tired of political correctness and are looking for a leader who is completely focused on putting american interests first, keeping our country safe, this is the worst attack since 9/11. our enemies don't fear obama and not hillary clinton but they will fear donald trump. that is what we need right now. that is what we need to focus on, someone who will put that first. jon: you mentioned polling numbers, abc and the washington post. is on favorability now is 70%. she is at 55. this is an all-time high for donald trump. how do you handle that? >> the very clear answer is drawing the contrast between donald trump and hillary clinton. right now this is one of the biggest issues facing our country, who is better on national security, poll after poll has shown people trust donald trump on that issue. another big issue americans care about most is the economy and more americans trust donald trump and hillary clinton. at the end of the day they are more concerned about where our economy is and who is going to keep them safe then who they like the most of that moment and as this campaign goes further and people see the contrast it will be -- donald trump will win in november. jon: if the number 2 issues, the top two wishes are the economy and national security do you think that is your winning hand? regardless of what republicans and republican leadership are saying? >> it certainly has to be one of the biggest focuses. that is what people care about not just because that is what they care about but that is what is driving our country. if people are safe here, people can't get jobs we don't have a country. if we are not safe. we can't go out on a sunday night. jon: you are banking on winning without the party behind you. >> not at all. more than the party, the american people, donald trump won in 17 person primary and is beating hillary clinton head to head in a lot of places. polling will fluctuate but continuing this campaign you see the contrast between donald trump and hillary clinton there is no doubt that donald trump will beat hillary clinton in november. >> here we go with donald trump in north carolina last night, play it for the audience and get an explanation why he said this. >> iraq, crooked as hell, how about bringing baskets of money, millions and millions of dollars and handing it out. i want to know who are the soldiers that had that job? i think they are living very well right now whoever they may be. jon: where did that come from? >> he was referencing iraqi soldiers and the corruption taking place over there. there is no person in this race that has been more committed and more focused on our active military, rebuilding our military and taking care of our veterans. to insinuate donald trump is anything other than that as democrats try to do. jon: he wasn't talking about american soldiers? >> he was talking about iraqi soldiers and the corruption that has taken place. >> the trump team sent an email saying he was referring to iraqi soldiers. we will see further clarification today. thank you for coming back, live in little rock, we will talk again. heather: new poll numbers between donald trump and hillary clinton. what the new numbers reveal about the state of the race. jon: tension between police and the gunmen inside a walmart. what set off this deadly experience. >> found a lady hiding, brought her around. do not come to the back of the building. e, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov wrely on the us postal service? 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[bleep] jon: a warehouse in california. police found five bodies underneath that building. the 20 when-year-old homeless man set the fire with intent after an argument with another homeless person. that man being held on $1 million bail. heather: texas police say there is no reason to believe a hostage situation at an amarilla walmart has any ties to terrorism. yesterday afternoon the 54-year-old suspect and four employees held his manager and another person at gunpoint in a dispute over a promotion. casey siegel joins us from dallas with more on this story. >> that is why police characterize this as workplace violence. they say that man was a disgruntled employee and he showed up at that walmart in amarillo yesterday, fired at least one gunshot into the ceiling. investigators believe 54-year-old mohammed was upset because he was passed up for a promotion. cops say he forcibly took the store manager and one other employee hostage inside an office at that store. frantic shoppers and workers diving for cover and calling 911 for help not knowing what was about to happen next. >> found a lady hiding her clothes rack, bringing around with gunfire inside. do not come to the back of the building. >> the back of the building where the office was located, the government was holdup, a swat team made entry into the store, shooting and killing the armed suspect. nobody else hurt. hostages were okay. authorities in amarillo, texas do not believe this was tied to terrorism in any way, just an angry employee who snapped. heather: thank you. jon: we watched that story yesterday. heather: with else going on your mind go there. jon: we have been covering this news out of orlando, now we have this out of disney as well, a 2-year-old boy out of nebraska playing in the water with his family last night, his parents were nearby during the fireworks show, at 9:20 in the evening. we were told the boy was in the water afford or two and was dragged into that lagoon by an alligator. there is a search underway and they are looking through this fast water area into the lagoon that overlooks the magic kingdom. so far they located several alligators but not the boy, search and rescue operation, search and recovery, search and rescue operation, there so far has been no sign of this 2-year-old. the father went into the water, the mother went into the water to no avail. heather: they have found four alligators so far. jon: police are on the line, we will talk to orlando police and find out what they can tell us in a moment. while that is happening, the wife of the orlando killer could be in serious trouble. grand jury looking at possible charges against her. judge andrew napolitano argues she could face the death penalty for what she knew and for what she did not say. the judge will make his argument on this developing story live next. zzzquil is different because why would you take a pain medicine when all you want is good sleep? zzzquil: a non-habit forming sleep-aid that's not for pain, just for sleep. mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle. and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.com and get up to six hundred dollars. >> ... ♪ bend me shape me, any way you want me as long as you love me, it's alright bend me shape me, any way you want me... shape the best sleep of your life. sleep number beds with sleepiq technology adjust any way you want it. the bed that moves you. only at a sleep number store. so we don't have to wad to get clean.t charmin ultra soft gets you clean without the wasteful wadding. it has comfort cushions you can see that are softer... ... and more absorbent, and you can use up to 4 times less. enjoy the go with charmin. another tragedy unfolding overnight in the orlando area, a two-year-old boy out of nebraska on vacation with his family at walt disney world attacked and dragged into the water by an alligator. brand-new on america's newsroom, some of the aerials we are getting from disney world. heather, good morning again heather: i'm heather childers in for martha maccallum. you can imagine if these were these parents, crews searching for the boy for more than 12 hours ba it happened at the seven seas lagoon in an area where no swimming signs have been posted. this from the police. >> is two-year-old child was playing at the edge of the water, a foot or so into the water when an alligator came up and attacked him. the father did his best, tried to rescue the child, however to no avail. they are extremely shaken up. there's been some pictures we've seen, very beautiful, happy family so imagine if it were you . bill: i can only imagine. the spokeswoman at the orange county sheriff's office leaving those search efforts and thank you for your time. it's been 13 hours now. what can you bring us up-to-date on? >> during the last couple of hours, we have been able to recover for alligators from the lagoon and they have been euthanized and have been checked for any evidence of the child and unfortunately we have not found any. bill: so the search continues. can you give us a description of what this lagoon is like and how far normal patrons would be from their in the 9:00 hour with fireworks going off in the distance? >> it is a massive body of water that is behind the grand floridian resort area. it is a man-made beach, there's sand and there's a shallow entrance and that lets out into a bigger body of water and i don't know exactly how many people would be in that area at that time but again, people are vacationing, they're relaxing, families are out there thinking their children are just enjoying themselves and then kids love beaches and that's the reason why they are made there. bill: give us a sense of what the authorities are doing. how many people do you have on this and what is this search and rescue or search and recovery efforts, what is it like at this time? >> well, we have multiple units still on scene and in addition to that we also have another florida agency, florida fish and wildlife conservation commission, they are out here. they are the ones trying to track the alligators and we have the helicopters, we have our marine unit with their boats, we have our dive team also, they are on standby so we have a large amount of people and resources being used for the search. bill: two more quick ones. do we know, do we have a fix on how many alligators could be in that lagoon? >> we don't know. we just know that for have been recovered at this time. bill: and can you give us a sense of the family now? apparently there from nebraska and they must be under in norma's emotional strain. >> of course. as you can imagine. it's a family of four visiting from out oftown , possibly their dream vacation and they are here and or something like this to happen, it's so tragic and it's unfortunate and as the mother of two small children myself, i definitely sympathize and i can't even say that i can imagine. i know what they're going through. bill: rose silva, thank you for your time. we will be in touch with you and your office today and try to figure out some answers. our best to you on this story and the family as well. thanks, four minutes past. heather: in the meantime, also in orlando investigators tracking down brand-new leads in the terror attack and prosecutors convening a grand jury to consider charges against the killer'swife . she may have known about the plans for the massacrebut may have done nothing or tried to do nothing to stop it. leland joins us live from orlando with what charges she could face, leland ? reporter: and if these charges and accusations are true, it certainly means that the tragedy and massacre that unfolded behind me was completely preventable. noor zahi salman is mateen's second wife, the shooter's second wife. she could be charged with 49 counts of accessory to murder, 53 counts of accessory to attempted murder and failure to notify the fbi of a potential terrorist attack. it means that he knew of mateen's plans to carry out the attack, knew he had purchased the gun and may have even helped in one way or another, perhaps driving him on the surveillance missions either to disney world or here to the pulse nightclub. the fbi has visited her family's house out in california. what evidence was recovered, we don't know.we don't know and have been told the fbi leads them to convene this grand jury. that could take a while for the prosecutors to present that evidence, get an indictment and that when he would get an arrest. heather: at least three visits to disney world. any other red flags that could have prevented the massacre? reporter: it seems that way. early on in the investigation we learned the fbi had looked at mateen on two separate occasions, one because of his connection to a person by the name of abu-salha who was the first american suicide bomber. they closed that investigation and said they didn't think there was enough a connection between the two to keep mateen on the terror watch list. it turns out now those two may have been a lot closer than originally thought and that's something the fbi is going back and looking at and in a larger sense, it begs the question were there.not connected? were there red flag that could have prevented this attack? heather: thank you leland. bill: we got this isis propaganda group raising the killer online, urging others to follow his example. they are encouraging attacks on civilians in public venues like this peter, the hospital, the amusement park. new hampshire senator kelly ayotte, on the armed services committee with me now and good morning to you area the first time we've spoken since orlando. what are we to do here and how much have we learned and what can we do now? >> i think for most we need to understand why did the fbi close this investigation into the terrorist and what was missed here? we need to understand fully what was not connected, what information that we should have had and making sure we have the intelligence to prevent attacks like this though that's priority number one and if the fbi, why did they closed the investigation? were going to be meeting with the fbi director today and i look forward to hearing what confusion was there and what was missed . we can have this happen. bill: that's your first question. >> that is my first question. that's on everyone's mind here. someone they were investigating and we need to understand that because our intelligence system has to work and when the fbi has someone in their sites, they need to understand they had them on the terror watch list, took it to him off. why did that happen? had he still been on the terror watch list, they would have been notified when he purchased the firearm so this is a real issue for us and i think that's number one. number two, when we look at what they're doing on social media, we've got to continue to go after isis more aggressively in the middle east and dismantle their infrastructure, have that counter narrative on social media. don't allow them to promote the success of this .bill: is it possible, in this is not an excuse, is it possible the fbi is just threat too thin and do not have enough to do the job? >> bill, i think that's a real possibility and that's a question were going to ask as well. do they need more resources. >> what do they need more agents and if they do, we need to give them the resources they need to make sure there are no gaps because unfortunately, we continue to see isis encourage attacks on our soil , against our allies. they are going to continue to do that. we've got to dismantle them, dismantle their network and make sure on the ground in america we have the resources we need to stop them. bill: one thing i heard repeatedly in orlando during our coverage of the last day is that the department of justice has handcuffed the fbi. is it true and if so, how? >> i don't know. i want to get to the bottom of that as well. we don't want the department of justice handcuffing the fbi based on political correctness or maybe just, they put the rules so strictly in place that they can go after information they need to and we better get to the bottom of that as well and i think that's a fair question today for director comey. we want them to have all they need to prevent attacks like this on our country and go after the terrorists wherever they are. bill: jay johnson with brett last night were talking about how the terrorists are becoming smarter. that is not just true here, it's true everywhere and you wonder how much longer we are going to have to go with this. because it's not getting better, it's only getting worse. >> bill, you're right, it's only getting worse and unfortunately we continue to face these threats from radical islamist terrorists and we do have to go after them and unfortunately with what happened in orlando, it's not getting better but we seem that obviously in san bernardino, we seem terrorist in brussels and ... bill: chattanooga, forthood. >> dismantle them, eliminate their capability and make sure they understand wherever you are you we're going after you . bill: kelly ayotte with a lot ofquestions for the fbi. we will follow up with you, thank you senator . heather: another question, what did omar mateen wife know about his plot to attack the orlando nightclub? the serious charges she could face. judge napolitano ways in next . bill: the president saying that radical islam, using that phrase will not change anything but colonel ralph peters reacts to that and a lot more. first, homeland security chair on america's newsroom. >> it's not a military strategy to say radical islam read the fact is, he hasn't had a military strategy for the last three years. we've been briefed on the isis and isis is not on the run, it's on the rise. >> i'm terrible at golf. he is. but i'd like to keep being terrible at golf for as long as i can. new patented ensure enlive has hmb plus 20 grams of protein to help rebuild muscle. for the strength and energy to do what you love. new ensure enlive. always be you. i felt like i got hit by a train; i did. first thing he thought of was ...how am i gonna to take care of my family? i did come across cancer treatment centers of america and i said oh, this place sounds awesome. when i got to cancer treatment centers of america, i got a great oncologist. also a naturopath, a nutritionist. they all worked together as a team to come up with a treatment plan designed specifically for me. we believe in whole body treatment. and we have all those care providers here who communicate with each other to come up with the plan for the patient. i knew i was in good hands. it was that simple. at cancer treatment centers of america, we treat cancer, every stage, every day. it's not one thing we do, it's the only thing we do. i've got a new outlook on life. call or go to cancercenter.com. appointments available now. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ bill: we have learned a bit more about this man arrested in california with weapons and explosives in the car, being held on $2 million bail. police in santa monica say 21-year-old james howell was headed to a gay pride parade when he was arrested. they found a loaded assault rifle rigged to double its shooting capacity along with several other weapons and 15 pounds of explosives. we do not know what the motive was, if anything. the fbi also investigating how he could end up facing federal charges as well. more to come on that story, 15 past the hour.>> what i have said publicly numerous times and i think there's repeating is that when someone self radicalize, is almost always someone close to that individual who sees the signs. heather: that is homeland security secretary jay johnson on what role the life of orlando gunman omar mateen may have played in the deadly terror attack. authorities telling fox that noor salman knew of her husband's plans but did not stop him. the grand jury will decide if he will face charges. andrew napolitano is the judicial analyst andhe joins us now with more. before joining us. the charges she could face, what are those? >> there's a long list of charges she could face , providing assistance to, or agreeing to participate.the highest and greatest charge, the reason i mention this is because the federal government likes to charge her with the highest charge supported would be conspiracy to commit mass murder, conspiracy is an agreement by two or more people to commit a crime. once the crime is committed and the person actually committed is dead, the remaining conspirators in this case one person we believe, is as liable as the person who pulled the trigger . heather: and she she could face what as a result? >> the death penalty. i don't know if the federal government wants to pursue that with her because by charging her with the highest crime they would expect her to plead guilty to something less which would incarcerate her for the rest of her life, get a dangerous person off the street and send a message to other bad guys and other confederates that we willcome after everybody . heather: and other people in general to if you see something, say something if you tell me you're going to rob a bank, i have a moral obligation to tell the bank and probably the police but i don't have a legal obligation to tell the back but if you ask me to help you rob the bank and i help you but you actually do the robbing, i am liable as well.that's what we're facing here. we don't know, i'm surprised the fbi ... heather: all this information now coming out, how do we know the fbi, why are they releasing it. >> i don't know why they release it midstream, is out of character for them whether they are under some political pressure to show some progress perhaps, whether they want to send a message or a dog whistle to others that might be involved, this is how tough were going to be, i don't know but it's out of character for the fbi to release it. asking where the fbi agents were interrogated her yesterday are this morning, the grand jury. because only in front of a grand jury, telling the grand jury what she told them, seeking an indictment on some charge that the federal prosecutor and the grand jury will agree on. heather: reportedly that questioning was a lie detector test. >> there's a lot of procedural correctness the fbi has to comply with. they have to tell her she can remain silent. they have to tell her she's entitled to a lawyer. they have to tell her silence can't be used against her. they have to tell her the results of the lie detector test can't use against her. that she doesn't have to consent to the lie detector test. the fbi is very good at donning-crossing its teeth. can be used against her so if she says my husband and i went to the club at a certain time and cell phone records show she was 15 miles away, they're going to present her with a discrepancy and charger with lying to the fbi and independent crimes but if independent records like cell phone records or video corroborates what she says, then they have real, solid evidence to present to agrand jury and presumably to a trial jury . >> we do know they've been coming through at least three differentlocations , her home with her parents and their home where they live and his home where his parents lived as well. >> the fbi is the best law enforcement agency on the planet when it comes to gathering evidence in a crisis situation, gathering it lawfully, gathering it constitutionally and efficiently. sometimes they seem to gather things that fracture the head but they are looking for all the pieces of the puzzle which when put together give them the full picture. heather: so looking into her background and her family background as well. thank you so much. bill? bill: we are getting word donald trump will meet with the nra to talk about how to get guns out of the hands of those on the terror watch list. it is an issue that is not that simple. this killer in orlando was removed from the no-fly list so we will give you details on what donald trumps saying on twitter about that in a moment. plus, hackers target donald trump through the dnc website. strange story. federal officials call it a breach, that is disturbing and much more. >> is a concern that we take very very seriously. and it's a concern, frankly that we rate, a deep concern. it's not the us government, the democratic national committee is a political government organization not a government organization but it's true that we be deeply concerned. >> family road trip! fun! check engine. not fun! but, you've got hum. that's like driving with this guy. all you do is press this, and in plain english, "coolant", you'll know what's wrong. if you do need a mechanic, just press this. "thank you for calling hum." and if you really need help, help can find you, automatically, 24/7. because you put this, in here. hum by verizon. the technology designed to make your car smarter, safer and more connected. put some smarts in your car. bill: here's what we know based on a statement from donald trump moment to go on twitter. he will meet with the nra to talk about how people on the no-fly list, who checked out on the terror watch list, how the government can prevent them from buying guns. this today after a gunman killed 49 in orlando. the catch on this story however is that the killer was on the no-fly list and then taken off two years ago. senator kelly ayotte who was with us 15 minutes ago, were going to meet with the fbi later today, that his/her primary question. why was he taken off the no-fly list? what information did they have? in the meantime, we will see what happens with this meeting with the nra and donald trump. also this today. a russian hacker breaking into the democratic national committee database to dig up information not on hillary clinton but on doll trump. two different spy groups believe to be working for the russian government said to have reached the dnc system which stores files of research on the republican nominee. there would have been a lot of information , the kennedy ceo trust set and a white hacker out of cleveland. david, good morning to you. it happened in late late april. can you make sentence of this question mark. >> i can. the russian government typically uses any type of information they can do about geopolitical areas that are of interest to them to act into databases to grab research on who might be the next president, where their policies may be good at this is something the government would be interested in . bill: why wouldn't they look for hillary clinton's information? >> they're probably looking at all of them, it just hasn't been discovered yet. the technique they use takes a long time to actually go and find how the hackers actually broken so hillary's information weight may have already been taken. hillary's emails were potentially compromised as well so it's of interest to both of them to understand both their policies in political terms. bill: don't you find theirony here? she's under active fbi investigation about her own server being hacked . this is extraordinary. >> it is and what's extraordinary is that other governments are using acting as a method to extract that information and the techniques they use are pretty well known in advance. there's researchers like matthew graber, they did a lot of research already that the hackers already use to break into these systems so these techniques are well known anddocumented but it's hard to actually go in . bill: what are those techniques? can you describe them in sync civil language? >> one of the hardest techniques to stop is what we call spearfishing. it's a technique of sending you an email saying this is something of interest you would want to open and this soon as you open the email goes and hack your computer. there's a technique called power shelf which is a method microsoft uses for communication, it's legitimate but hard to detect. these techniques are very easy to infiltrate these organizations. bill: the dnc said they knew it was happening while it was underway. they acted as quickly as they could to kick them out. is that easy?>> there's conflicting reports there. some folks are saying it took almost a year to detect the initial intrusion but they detected other entry points but they were changing their techniques of how they did it. they said they may have access to other information such as email or other communication so this might be much larger than just going after trumps information. they may alsobe looking at components around the dnc and how they are strategizing their campaign . bill: what kind of information would be there? if you're looking for stuff on trump, what would be on their database? >> all the political priorities of trump, his policies, what he may be going for, anything that could be used against trump from a strategy standpoint to win the campaign. i'm sure you are aware but vladimir putin said he has respect for trump so maybe russia has different interest in actually seen trump elected that they could use to help trump in some circumstances area who knows? but it's used for intelligence purposes and military preparedness and this is something the russian government wants to access. bill: why russia? are they that good? >> there's a lot of good folks out there. china's very good, we are very good, russia is very good, iran is developing their capabilities. north korea is a little more amateurish at the top three are russia, the united states and china. it's going to happen again, right? >> it's happening all the time. bill: david kennedy, great stuff. ceo which is trust stack which is security out of cleveland ohio. thank you. heather: very interesting. democratic life rivals face-to-face, hillary clinton sitting down with bernie sanders after the final primary the season. wilburn now step aside? bill: president obama says it doesn't matter if he uses the term islamic terror but the front runner disagrees. donald trump with the answer, ralph peters will weigh in also. >> the killer's afghan father supported the taliban and which believes in violently oppressing women and gays. once again, we've seen that political correctness is deadly. >> this is lulu, our newest dog. mom didn't want another dog. she said it's too much work. lulu's hair just floats. uhh help me! 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(laughing) trap and lock up to 4x more dirt, dust and hair than the store brand stop cleaning. start swiffer ing bill: more from disney, apparently they are closing all their beaches, that announced minutes ago as the search for what happened with his two-year-old boy. 13 and a half hours ago, he was in afoot or two of water and an alligator snatched him . off the beach, away from his parents as his father and reportedly his mother both went into that lagoon to try to rescue their son. it is a horrific story. we've been in touch with the police down there, the sheriff department in orange county florida and hope to get more information as to where they are now in terms of the search of this lagoon that we have been told is massive. a big body of water so the beaches are all closed. disney on edge and for very good reason. 10:33 now, back to that story in a moment. we've also got this.out of miranda, the mayor talking about details on the massacre. investigators learn more about the killer and his wife. who is under extraordinary legal pressure today. mary mayor buddy dyer saying the gunman was driving around that evening, visited the locations before the massacre and he brought explosives to the hostages, causing police to peter possible booby-traps. meanwhile, the president lashing out at donald trump after trump blasted the president for refusing to use the term radical islam when talking about the attack in orlando. >> what exactly would using this label accomplished? what exactly would it change? would it make isis less committed? not once as an advisor of mine said man, if we use that phrase we are going to turn this whole thing around. bill: that was a major headline, got a lot of attention. ralph peters, fox news strategic analyst. how are you doing and good morning. the address guns and labels in the fight. did he address the strategy for eradicating isis no, because he doesn't have one. i wish president obama would spend more energy protecting americans and a little bit less defending his lawn. his claim was absolutely dishonest and disingenuous. the idea that the words would make a positive difference. using the correct terminology , jihad, islam is fanaticism, radical islam and its plenty others that apply. that has legal implications, it has strategic implications. it has military implications. it has no end of important meetings and let me turn around area i tried to talk about this specifically what difference it would make to call it what it is area. bill: if josh earnest were sitting here, he made this case two days ago at the white house. he said they want to carry the mantle of this religion and we are not going to allow them, afford them the opportunity to use that phrase. does that matter? >> it's absolute nonsense to say something like that. let's turn it around. we have censored our law enforcement agents. we have censored the pentagon and our military that they can't teach certain things, they can't teach the history of jihad honestly, they can't use these terms. the fbi is restricted from using certain terms. i would ask mister president how does that help us? but beyond that, we have made nice not only since obama came tooffice but all the way back to 2001 , and this administration was reluctant to use terms like islamic jihad so for 15 years we have avoided calling this phenomenon what it is area and i would ask the president how has that helps? are there fewer jihad is now? are there fewer terror attacks? on the contrary. where there were a few thousand jihad east there are now hundreds of thousands and tens of millions of supervisors and we've got to stop saying that this isn't islam. if jews and christians have no authority to say what is and isn't islam, muslims have that authority and hundreds of millions of muslims believe that this is at least one ... bill: i don't care what you call it, just kill it. do you think those people in florida, what they went through, or san bernardino before that or ottawa or fort hood or boston and on and on it goes. a republican from nebraska, quote. telling the truth about radical islam is a direct situation. a strategy, admitted you don't have. it is the commander-in-chief duty to identify our enemies and help the american people understand the challenge of violent islam area i would say you haven't heard enough on that at all . >> it's a matter of honesty. if you refuse to face a threat, if you refuse to call it what it is, you can't get there from here but again, we have allowed, the administrations have allowed muslim activists here to block certain lectures from speaking at military schools or the fbi academy. we have allowed radical muslim activists here in the united states to control the curriculum at our law enforcement and military training schools. it is a phenomenal error and if we can't see, if you can have an open and honest debate, here from both sides about the history of jihad, radical islam, what have we come to? this is orwellian doublespeak. war is peace, peace is war. you've got to use language precisely and he has legal, military and culturally strategic implications and they matter.bill: extraordinary colonel, thank you. ralph peters in washington today. they matter indeed . heather: that hillary clinton and bernie sanders hold a closed-door meeting on tuesday as the presumptive nominee wrapped up the democratic primary season with a convincing win in washington dc. sanders underpressure to endorse clinton so far . he has declined. mike and manuel life for us in virginia, that is where clinton is holding a national security discussion with veterans today. mike, what has been clinton's message on national security following the orlando massacre? what's she saying there today? reporter: this whole area of virginia is huge in terms of the military so clinton will hear from those directly affected by national security decisions made by our president about what they want from future commander-in-chief and clinton says she's not afraid to use language to describe our enemy. >> i have clearly said that we face terrorist enemies who use a perverted version of islam to justify slaughtering innocent people. we have to stop them and we will . reporter: clinton said she would not demonize or declare war on an entire religion. heather question mark. heather: what do we know about last night big meeting? the summit between clinton and bernie sanders, what happened there? reporter: they met for nearly 2 hours last night in washington. you get a sense she was trying to assess what she needs to do to earn bernie sanders endorsement for president while the sanders camp, they were trying to figure out exactly how committed she is to some of bernie sanders top priority issues. clinton folks are talking about unification while sanders ahead of the meeting checked off some of his checklist in terms of what he wants from the deal. >> number one, i do believe that we have to replace the current democratic national committee leadership area we need a person at the leadership of the dnc who is vigorously working to bring people into the political process. reporter: the primaries are now over after clinton's victory in washington dc yet sanders is still hanging around hoping to advance his agenda. heather? heather: he does not like debbie wasserman-schultz. bill: .comslamming hillary clinton as being unfit for office hillary clinton, especially in these times will be a terrible president. her secret service agent said she's a disaster. she talked about my temperament. my temperament is great. it's a tough temperament, but that's what we need. her temperament, she's wacky. bill: more in a moment from truck and sean hannity after polling numbers tell us an intriguing fact on this election. we will get to that in a fair and balanced debate and show you the numbers seven, never before seen surveillance video of a hero student as he ends the 2014 shooting spree at the college in seattle by taking down the government. >> hidden valley cucumber ranch. just one of our delicious ranch flavors. whe gets a ready for you alert the second his room is ready. so you know what he gives? 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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. bill: new video showing the moment a student shot stopped the shooting spree in seattle. footage from 2014 shows john mays confronting the gunman as he tried to reload. mays hit the suspect with pepper spray, hit him in the face and tackled him. the shooter killed one person, wounded to others at the seattle pacific university campus. that trial in that case will start in three months in september.heather: time to look at poll numbers are now, a brand-new one showing hillary clinton has opened up a double-digit lead over presumptive nominee donald trump. according to bloomberg , take a look, clinton leads 49 percent to trumps seven percent. at rollins with campaign director for president reagan's 1984 reelection campaign and chief strategist of the trump super pack great america. joe trippi the former campaign manager for howard dean, thanks for coming in. let's talk about this first for the bloomberg, 12 points, hillary clinton over truck at this point. is he in trouble? >> it's only one pole but with the country this polarized with the pole being so close, we see one move into double digits like this, that could be an aberration but it could spell real trouble here and there are other polls out that are showing some of his negatives going. heather: he's running while at the same timehillary clinton's numbers are going up , and. >> she's had a couple good weeks. she won california and new jersey and close out with washington dc. the party is surrounding the nominee, which she did about a month ago. it's a long way to go. the his campaign, he's got to worry about his negatives going up. i think that's what he has to be very consistent on and he's talked about the economy, talked about the jobs and not the last couple of days, he had to talk about but it's along those lines. heather: speaking of that, this goal that came out was taken before the shooting that happened in orlando. so do you think that will change his numbers? >> i think he projects and i think this is an important part of him. part of that whole, those numbers did change slightly after he was strong on terrorism. heather: let's take a look at this school and i want you to respond to it. this poll asks as the obama administration made america stronger or weakerwestmark in light of the terrorist attacks that happened in orlando . you think hillary clinton and her numbers will suffer when people look at this and they already see that america is less safe, that we are weaker under obama? >> it's not clear, that gets back to my conversation about it being polarized. we are polarized, people decide one way or the other and it's a close choice as we saw in those numbers. what you're seeing is, look, both hillary clinton and trump have high negatives, we know that but trumps are starting to soar. they're starting to become ... heather: we can pull that up while you're talking about it. his unfavorable's at 70 percent and we haven't seen that number since before his campaign began. 71 percent i've never seen that number in my 50 years in politics so he clearly have to get thatdown. if people like you, they're not going to vote for you. he's got to project strength, talk about things that matter. >> hillary has high negatives to . heather: 55 percent. >> it's abnormally high but it's still in a range that we are used to seeing, that we seen in the past. 70 is something, i agree with head. i've neverseen that number and i'm not sure the last few days help there. it may have helped , i understand what ed is saying but i think he tends to just overstep on things so he will make a point and then. heather: say a little bit too much. >> i think that increases his negatives even while he may be convincing people that he's strong. heather: the latest being this argument between donald trump and president obama. >> he needs a strategy and the strategy is what issues he's going to run on? economy, terrorism. heather: he has to get independence. >> he has to get independence and go run a real campaign. he hasn't done that today and that's one of the things he has to do in the next few weeks the seven call the, let him know.and, joe, thank you. bill: a busy day for you as well, john. what are you working on. jon: we are going to continue the conversation about donald trump parking outrage with his comments after the orlando massacre. hillary clinton and president obama slam the presumptive gop nominee as republican leaders join in. we have brand poles on the state of the race plus, the orlando gunman was previously investigated by the fbi so is the federal agency cast with keeping america safe equipped to stop more lone wolf attacks? and prosecutors in the freddie gray murder trial calling the driver of the police than the culprit what could gray have caused his own injuries? we look into it. bill: see you then, top of the hour. an eight year veteran of the u.s. navy it's a nasty note from veterans. she's one of them. her reaction has gone viral, wewill show you that coming up.and a nine-year-old boy setting records . by going for a swim. >> i wanted to turn back but i kept on going. i believe you can do it. >> so we asked them... are you completely prepared for retirement? okay, mostly prepared? could you save 1% more of your income? it doesn't sound like much, but saving an additional 1% now, could make a big difference over time. i'm going to be even better about saving. you can do it, it helps in the long run. prudential bring your challenges she glows colorful mystery and adventure she's a guide she's a route a story and a song she is this day she is this moment she is this place and she belongs to you only in minnesota bill: a new female navy veteran in north carolina issuing a stern response after receiving a scathing note on a parking space. rebecca hayes is her name, finding this note on her car that reads the following: this parking spot is for veterans, lady. learn to read and have some respect. although she's an eight year veteran and now she's reacting. carly shimkus, fox news headlines 24 seven reporter on sirius xm with me. how are you carly, good day to you. give us some back story. this is a parking spot in north carolina. she's parked there before? >> she has. this isactually her first time parking there. her husband has. she really turned the tables on this anonymous critic. she responded on facebook saying , i know i parked in one of the veteran parking spaces today, it was hot. was the first time and i won't do it again and i'm sorry. i'm sorry that you can't see my eight years of service in the united states navy . i'm sorry that your narrow, misogynist worldview can't conceive the fact that there are female veterans read i'm sorry that i have to explain myself to people like you. she's all goes on to say mostly, i'm sorry we didn't get a chance to have this conversation face-to-face and that you didn't have the integrity and intestinal fortitude to identify yourself. which leads me to one question. i serve, did you? bill: it's gone viral now. >> that is a droppable mic moments, isn't it? bill: what has been the reaction? >> because the responses going viral, a lot of people are only thanking her for her service, they're also thanking her for reminding people there's more than just one kind of veteran and she says her husband parked in this parking space before, he only receivedthank you for your service comments so she is really shining the light on that . bill: i'd like to hear from him. >> he hasn't said anything yet. bill: it's my guess that she will do that again and she should. she has sacrificed. >> thank you for your service. bill: check her out at 1:15, carly shimkus here in the studio. p7 coming up, a fast-moving investigation uncovered new evidence as prosecutors consider targets against the orlando killer's wife. did she know about plans for the deadly massacre and did she say nothing? could she be arrested? d chicken. at panera. food as it should be. .. olay total effects a skin transformation that rivals the leading department store moisturizer. revives skin to fight 7 signs of aging. with olay, you age less, so you can be ageless. olay. ageless. [phone buzzing] some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility. this is the pursuit of perfection. >> this 9-year-old boys the youngest person to swim to alcatraz and back. a little more than two hours to complete the 3-hour swim. he struggled in the open water because of all the waves and strong currents but pushed through. 's goal next time is to swing the length of the golden gate bridge. it is 1.7 miles. "happening now" starts now. catch you later. bill: new details about the orlando gunman and his widow. investigators want to know what she knew about the killer's plans, when she knew it and why she didn't tell the alarm before the master that left 49 people dead. welcome to "happening now". i am john scott. heather: i am heather it now or. and for jenna lee. she knew about her husband's plot in advance and a grand jury is taking a look at possible charges. we have

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