The summer seems to last forever. And if i have the choice. Yeah, i was going to be there. Those were the best days of my life. Cheryl first day of summer, everybody. Welcome to fbn a. M. Good morning, im cheryl casone. Lauren it might start to feel like summer today. No rain in the forecast here in new york. Good morning, im lauren simonetti. Cheryl lets take take a look at how your money is moving on this first day of summer. Right now, futures are slightly lower, dow is down 31, s p is lower as well. June shaping up to be a great month. The dow on pace for the best month since october 2015. All the major averages up more than 7. 3 this month. Lauren the yield on the 10 year treasury is trading up by 4 basis points. Cheryl we continue to follow the tensions between iran and the United States. Lets take a look at oil. Weve seen move nonet the upside movement to the upside in oil. Oil is slightly higher, by a few kepts right now. Lauren gold is slightly lower, down 4 at 1392 an ounce. It did hit 1400, havent seen that level in six years. Cheryl asian markets mixed on iran, u. S. Tensions, the shanghai the only market thats up in the green this morning. Lauren this is how european stocks are trading, arrows a up arrows across the board. Cheryl oil is up 19cents, 57. 28. Breaking news this morning. The Trump Administration may made preparations for military operations against iran last night. Officials say the plan was withdrawn at the last minute and as tensions escalate in that region, the faa is barring american planes from operating over parts of the persian gulf. Lauren blake berman is at the white house, he has more. Reporter the pentagon is describing the shooting down of the u. S. Drone as a quote, unquote, he esclatory attack. President trump suggested irans regime may not have authorized the strike. I have a feeling, i may be wrong, i may be right, im right a lot, i have a feeling it was a mistake made by somebody that shouldnt have been doing what they did. I have a hard time believing it was intentional. It could have been somebody that was loose and stupid that did it. Reporter he made those remarks as he was meeting with Justin Trudeau to talk about the usmca deal. He didnt give any indications as to how the u. S. Might respond to iran. Well find out. Well find out. Obviously, you know, were not going to be talking too much about it. Youre going to find out. They made a very big mistake. Reporter also on thursday, the situation room was filled with key members of congress as they received a briefing on the ongoing tensions with iran. Back to you in new york. Lauren blake, thank you. Ill pick it up from there. After the briefing, Chuck Schumer and House Speaker nancy pelosi expressed concerns over the situation. We told the room that the democratic position is that congressional approval must be required before funding any conflict in iran. We must act in a way that does not that does deescalate and does not escalate the tensions and the situation there. Lauren democratic president ial candidate joe biden calling the president s iran strategy, quote, a selfinflicted disaster. He issued this statement. Two of americas vie l tall interests in the vital interests in the middle east are preventing ra iran from obtainia nenuclear weapon. Veal more on this later in the program. Cheryl President Trump is meeting with canadian Prime Minister just continue true dougJustin Trudeau as partof ana replacement for the north American Free trade agreement. Lauren Edward Lawrence has he details for us. Reporter Prime MinisterJustin Trudeau said he had an excellent trip here to washington, d. C. He made the trip to make a personal pitch to House Speaker nancy pelosi and Senate Majority leader Mitch Mcconnell to ratify the usmca. He said he wanted to answer any of their questions and reassure them that this is a good agreement for workers as its written. We had a very frank and positive conversation about the path forward to creating a better opportunity for citizens, for workers, on both sides of our border. I fully respect the conversations and discussions going on in their ra ratificatin process. Its offered to be helpful in responding or allaying certain fears. Reporter whats next is the debate in the house of commons. Their house went on break. The canadian ambassador to the u. S. Told me the Prime Minister would call them back to special session if the u. S. Took up ratification in july. Mexico has already ratified this agreement. The Prime Minister saying that he believes no changes need be made to the usmca. President trump also saying this is a good agreement as is. Its great for the farmers, manufacturers. Its really great for everybody. And unions. Its great for unions. We have tremendous Union Support too. Its a tremendous it shows a partnership between three countries and its sort of three countries in a trade sense, were competing with the european union, were competing with. China. It gives us a bigger dialogue, a big r r platform. Reporter the canadian Prime Minister said he and the president agreed on a a preclearance agreement that would allow people and goods to flow back and forth between canada and the United States with a precleared situation. That would mean that goods could travel back and forth quicker, possibly increasing the amount of trade that could happen according to the Prime Minister. He said this would work in conjunction with usmca. Back to you. Cheryl President Trump also talking trade in an interview with telemundo last night. He suggested tariffs could be brought back to be used against mexico if the country stops complying with the u. S. Demands at the border. They can easily stop this tremendous migration to the United States and then we have all these the illegals coming in. Its no good. Mexico has been great for the last week andahalf. Now, i signed the agreement a week andahalf ago. But theyve been great. Theyve honored the agreement. If they werent great, i would put tariffs. Cheryl after three days of intense negotiations, mexico agreed to increase its efforts along their southern border with guatemala including deploying National Guard troops. Lauren autopsy results connected to mysterious deaths in the Dominican Republic will be released today. The tourist minister insists the island is safe despite the deaths. Health Officials Say one of the men likely died of shock after seeing her fiance dead. The families of two more tourists are coming forward. Chris palmer from kansas passed away in april of last year and Barbara Mitchell died after getting sick at a resort back in 2016. Cheryl protesters in hong kong took to the streets again this morning. Lauren Tracee Carrasco has the details. Whats going on now . Tracee angry crowds gathered outside the government headquarters and then moved to surround police headquarters. Government offices were forced to close. The demonstrators are demanding the resignation of chief executive carrie lamb and the withdrawal of an extradition bill. Investors showing their love for flack. The stock surging in its trading debut on the New York Stock Exchange yesterday. The stock ending its first day well above its socalled reference price, giving flack a valuation of about 21 billion. But flack has its challenges. Of the 600,000 customers that use it, only 95,000 pay for it. Mcdonalds is giving us a peek into the future. Its testing voice activated drivethrough as part of a plan to speed up service. Those efforts also include robotic deep fryers and automated beverage equipment. And today is a big day for fans of harry potter. The new augmented reality game launches in the u. S. And britain. A day earlier than expected. The game was developed by the maker of pokemon go. Youll remember in 2016, pokemon gos popularity caused server crashes and game outages. And they is whats happening now. Lauren you know what interested me there . The flack, its trading 4 higher today in the premarket and one of the analysts said, there might be truth to this, flack is to businesses what whats app to consumers, if you look at it like that, its a must have product. Nice reaction. Cheryl lets take a look at futures on your friday. June is shaping up to be a great month. All the major averages up over 7 . Were looking at red arrows right now. Dows is down 22, s p down 5 and a quarter, nasdaq down 16 and three quarters. Well, the president reportedly pulling back on an order to strike iran. So why would he change his mind and what should he do next . And forget big brother. Amazon has its own plans to keep an eye on you. Youre watching fbn a. M. Private eyes, theyre watching you. They see your every move. Private eyes, theyre watching you. Private eyes. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Lauren tensions with iran escalating, a report that the Trump Administration made preparations for strikes on iran last night in retaliation for the downing of a u. S. Drone but called off the operation. We bring in gil berndale and phil flynn, a fox business contributor. Gil, why the aboutface . I think the president has been pretty consistent the last few days and has seemed to have real reticence about a fullblown war with iran, about launching into real military action, absent a greater provocation than what weve seen so far. Lauren we saw an aboutface a little bit on the price of oil, on that report. We really did. I think that what were seeing from that is the market is concerned about whats going to happen in this part of the world and this is a very important choke point for oil. It could have a major impact on the global economy. And i think President Trump, even though he pulled back from a military strike, doesnt mean that the United States isnt going to act somehow. He might just do it smarter and more effectively and by doing so, reduce the tensions of a conflict that could actually have a bad impact on the global economy. Lauren what is really, phil, moving the price of oil now . Is it whats going on in iran . Or is it this trade, Global Demand issue . Yeah, its a combination of everything. I dont think you can just throw out the iran situation, even though the u. S. Is the biggest producer in the world right you now. It still is a global commodity, its still going to have an impact. Theres a lot of other things going on here right now. A couple weeks ago we were telling the world that the u. S. Is going into a recession, the worlds going into recession and everybody wag doom and gloom about u. S. China trade deal, it wasnt going to get often and everybody was gettin get bearisn demand. Prices went down, demand spiked up. Looks like we could get a u. S. China deal. Whats interesting is you have the Federal Reserve talking about cutting Interest Rates next month. Then of course youve got europe cutting Interest Rates. China adding stimulus to the system to react to a h slowdown that may not happen. Thats going to be explosive for oil demand and i think trade is starting to get that. Lauren it feels like everything is kind of at this boiling point. We have the g20 next week. Were t waiting on what the u. S. Response to iran will be. What are some of our options for retaliation here . I think we can respond in a more calibrated way. There are options that arent military options. Lauren like what . We can talk about cyber, we can talk about reacting to iranian proxies in lieu of actual Iranian Forces, things we can do inside the country in terms of stirring descent and other options. There are a lot of economic levers, information levers and other things we can do in the region, short of actually launching strikes on Iranian Forces and the escalation that follows from that. Lauren is it necessary that we respond . If we dont respond, does that send the wrong message to other adversaries, russia, north korea, even china . I think sometimes that idea of american credibility gets used to drive us down paths we would rather not go. This idea that we have to constantly display strength. People are under no allusions about american strength and even american resolve as well. So i think responding to a calibrated provocation and overdoing it, a disproportionate response i think is not going to im press people impress people. Lauren the New York Times article that reported we were preparing the attack, pulled back at the last minute, i found it interesting that no Government Official said hold this report, dont go forward with this report and the message that that sends, what is that message, essentially, that we want to send . But of course the market and certainly the oil market is looking at all this. Ill let you wrap it up here with us, phil. I think so too. I also think it shows the strength of president donald trump. He has a lot of hawks in his administration, probably recommending a strike. He held back. It shows that hes still in control. Lauren got it. Phil, gil, thank you very much. And look at that, your names rhyme. Thank you. Lauren happy friday, gentlemen. Cheryl all right. Lets take a look at your friday futures. See how i did that. Pretty good, right . Dow is down 20, s p up 5 and three quarters, nasdaq down 16. Remember june has been a really solid month for stocks. Well see how today shakes out. Also still ahead, chinas president holding another summit with kim jong un. This time in north korea. Why some say xijinping has other motives to visit the rogue regime. And if youre a taco bell fan, occasion, the vacation of okay, the vacation of your dream awaits you. Well explain, coming up on fbn a. M. Were going to keep on rocking. Baby, aint no stopping. You cannot stop us now. This is the couple who wanted to get away who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Expedia. The latest inisnt just a store. Ty its a save more with a new kind of Wireless Network store. Its a look what your wifi can do now store. A get your questions answered by awesome experts store. Its a now theres one store that connects your life like never before store. The xfinity store is here. And its simple, easy, awesome. Cheryl canadian Prime MinisterJustin Trudeau and President Trump meeting at the white house for talks on the revamped north american trade deal yesterday, coming together to push for passage of the usmca which so far only mexico has ratified. Its the largest trade deal, by far, ever entered into. Were very close to having phi finalizing. Were really competing against the world. Were not competing with each other so much. Cheryl the trade agreement faces an uphill battle on capitol hill where nancy pelosi says the Trump Administration is moving too quickly. Lets bring in Clark Packard of r street institute. Good morning. Good morning. Cheryl did you have any hopes . Were you more hopeful we would get the usmca being ratified after yesterday. True dough met with President Trump and trudeau met with President Trump and several other congressional lawmakers about getting usmca through. I think this is the president s top priority right now. I think ambassador lighthizer is doing a good job, reaching out to democrats, trying to make the case for the agreement and trying to come to some sort of consensus and they know that changes need to be made and they seem to be willing to make those changes. Cheryl all right. So changes need to be made. Thats what nancy pelosi says. Remember that democrats are getting pushback from union leaders, im thinking about Richard Trumka in particular. They want to make sure mexico enforces agreements when it comes to how they treat and how they pay labor south of the border. U. S. Union leaders worry more jobs to go to mexico. I i think that that has always been overblown argument. It doesnt shock me that Richard Trumka and the labor unions are bent out of shape about this. I think ultimately i do think that this agreement gets done and, again, theres going to be compromises made. Maybe youll see something on environmental issues, on pharmaceuticals, trying to lower pharmaceutical prices. A number of issues where i think theres going to be some sort of consensus between democrats and republicans in the administration. Cheryl speaking of trade, interesting pictures coming out this week. Were seeing president xijinping walking alongside of kim jong un in north korea. Of course, the g20 is next week. Many investors are looking ahead to that meeting. Do you think that president xi had ulterior motives to meet with the north korean leader. Is this going to help him do you think with an edge over President Trump when they finally talk . Its really tough for me to say and try to get in the mind of xijinping. But look, i think that the u. S. china relationship is the most important geo strategic relationship in the world right now.