Prices and lack of demand. Oil is up about 2 amid more tensions with iran. That countrys foreign minister is threatening allout war in the event of a u. S. Or saudi military strike. Meanwhile, facebook chief Mark Zuckerberg heading to capitol hill today, trying to promote his vision for moderate internet regulation, as antitrust investigations are heating up. Plus, we have news on a possible isis connection to that mechanic who tried to sabotage an American Airlines plane. And Major Tv Networks are saying no to advertising ecigarettes. Varney company starts right now. David first to washington, d. C. , where midlevel china trade talks are kicking off today and they seem to be having a positive effect on the markets. The Dow Jones Industrial went from negative to positive on the news. Edward lawrence joining us live from the white house right now. Hi, edward. Whats going on . Reporter yeah, literally right now, the talks with the chinese delegation have started. The delegation has walked in there. These are deputy level talks that will set up the talks between the heads of the two trade delegations in early october. Now, about an hour ago, in an interview that was aired on mornings with maria an exclusive interview with Vice President mike pence, he says china must address the structural issues around protecting intellectual property and trade. President trump is going to stand firm til china comes forward, opens their markets to our goods and ends the practices that really, really have harmed american businesses and American Private property for decades. Reporter chinese sources say that among the discussions that are happening is the chinese buying more u. S. Agriculture. Also, the chinese laying out a plan in this discussion to further reduce the number of forced joint ventures, showing their commitment to protecting intellectual property. Also, the chinese talking about during the deputy level meetings increasing the number of Holding Foreign owned enterprises within china. China wants to talk about discussions related to removing themselves from a currency manipulation list treasury has them on, also reducing or removing tariffs now in place. Again, these are deputy level talks to set up the main event in early october but we will get a sense of the progress thats happening right now. David . David good stuff. Thank you very much. President trump weighing in on the fed decision, as you might have expected, to cut rates by just a quarter point. He wasnt happy with it. Roll tape. I dont think he knows how to play the game very well. Theyve raised too fast and i have been saying this openly, and they have lowered too slow. So im not thrilled with the fed but despite that, we have an incredible economy and we dont have inflation. Chairman powells job is safe . Its safe. Yeah. Its safe. I mean, sure. Why not . Hes got a job and you know, im disappointed in him. Im very disappointed in him. David hes got a job. Joining me, former dallas fed adviser danielle dimartinobooth and former Kansas City Fed chairman herman cain who also ran for president. Danielle, first, your reaction to all this. Yesterday, he said no guts, no vision about his fed chairman. What do you think . Well, look, hes going to continue to berate and bully powell. This is great. Hes collecting a paycheck, this is what were supposed to take from trump. But you know, in powells defense, we have had fresh data out this morning, jobless claims remain very low, Philadelphia Fed came in stronger than what was expected. So we are still seeing a lot of green shoots in the economy to suggest that the fed doesnt have to go hit the panic button, and ease as dramatically as say, the europeans. David but you cant ignore the europeans, can you . They keep lowering their Interest Rates and part of the job of the fed is to make sure that the United States currency is sort of in parity with whats going on around the world, right . You are absolutely right. But the other point relative to the fed is that they are inherently cautious. So thats probably why we only saw 25 basis points. But what the president is alluding to is we are not taking advantage of some of the things that the europeans and other countries are taking advantage of because we are lowering too slow. I believe that that was the president s point. David well, the new york fed, this is something that seems to be ominous to some people, have been stepping in recently to help money markets, putting billions of dollars in overnight for folks, banks and others who were caught short on cash. Danielle, is this a big problem . Well, i think its a big problem if the fed cant get its arms around whats happening right now. Theres a supply demand imbalance. They came out, they did another operation this morning. These are theoretically emergency measures that theyre taking but you cant take an emergency measure every day. There are some facilities and other options that have been discussed at the fed that powell certainly had the option of rolling out yesterday that he chose not to do. Again, it wasnt until he mentioned that if pressed, quantitative easing would be back on the table. It was not until that moment in his press conference that markets began to turn around and come off their lows. David but herman, we think back to 2007, there were some money market problems that sounded a little similar. They were short on cash, the new york fed had to intervene. Happening again now. Is it just a coincidence that it happened in 2007 . I dont think its a coincidence and i think that the key question is did the new york fed have to do that. Danielle alluded to it. I dont know all the details, but remember, one very important point, the u. S. Economy and the World Economy are very complex entities and so one move by one Federal Reserve board does not necessarily tell you everything that might be going on. As i said, the key question was did they have to do it rather than was it the right or wrong thing to do. David good question. Good question. Yes, they did, to answer that question. David we will hear more from herman in just a moment. Facebook chief Mark Zuckerberg has a plan for moderate internet regulation and will pitch it on congress. Whats going on . Susan first time hes back in d. C. Since his two days of testimony in 2018. Hes here, yes, to sell his vision of selfregulation of facebook to the politicians but also to shake hands and of course, a Charm Offensive is on. David on both sides, by the way. Susan so last night, he was at a dinner apparently, according to our sources at fox business, he met with senator blumenthal, senator cantwell and today he will meet with mike lee, chairman of the subcommittee on antitrust of the senate. We deal with politicians on both sides of the aisle talking about a breakup of names like facebook. Do they have too much control over the internet and over the discussion, not only antitrust, privacy concerns and content moderation. David for all those concerns complaints, they are wining and dining each other. Susan the stock up 40 this year. Teflon. David look at u. S. Steel. Its going in the wrong direction, down big time heading into the open. Ashley, whats the deal . Ashley weakening steel prices is a big problem. We also have restructuring costs in the case of u. S. Steel. They expect a loss earnings per share of 35 cents this quarter. The estimate was for 6 cents. Since the tariffs were announced last year, the shares of u. S. Steel makers, not just u. S. Steel, have been in a slump. We had Steel Dynamics also recently reporting lowering prices for steel and the trade tensions, and global slowdown thats hurting demand. You put all that together, its been a tough go and certainly for the steel industry. By the way, those tariffs were put in place to help the steel industry. David of course. [ speaking simultaneously ] david of course the World Economy is slowing down. Well, President Trump campaigning in california, trying to broaden his base. Hes also trying to do that by wading into the gm strike. Of course, hes been reaching out to africanamericans in a big way. But according to a latest fox news poll, its not really helping that much. Hes trailing all the major Democratic Candidates in headtohead matchups. So herman, clearly hes widening the base, clearly hes trying to do what other republicans have failed to do, and i think he is succeeding in a lot of areas but why isnt it showing up yet in the polls . You remember the phrase silent majority . I think you have some silent blacks when it comes to them saying how they feel about trump. I know anecdotally from black people that i talk to, they love the results that this president is getting. Our challenge, the communications worlds challenge, is how do you communicate all of the positive things that hes done. I believe that some people simply dont know it. Secondly, you have a lot of democrats that are already predisposed to be in favor of some of these very radical democrat president ial candidates, so i dont think that these numbers truly reflect the number of people who understand whats really going on from this president thats helping not only blacks and african americans, but helping everybody. David absolutely. Starting with the unemployment figures which are just extraordinary. More jobs than ever before in american history. Herman, great to see you. Thank you very much. Thanks, david. David check the futures, they are up and they were down all morning until we had several things happening. One, this meeting that was talked about among officials leading into the major trade discussions with china coming up in october, then we also had a very interesting meeting with larry kudlow on mornings with maria speaking positive about the china trade talks. That i believe has led to a turnaround in the futures. Well see what happens in about 20 minutes when the markets open. Meanwhile, the new iphone coming out tomorrow and according to reports, preorders have been strong, but is this an indication the phone will be a big hit . We will ask one of our top tech watchers later this hour. Secretary of state mike pompeo says theres no doubt iran was behind the saudi oil attack, so can we punish the iranians by blocking them from coming to the u. N. General assembly in new york next week . That story coming next. Fact is, every Insurance Company hopes you drive safely. But allstate actually helps you drive safely. With drivewise. It lets you know when you go too fast. And brake too hard. With feedback to help you drive safer. Giving you the power to actually lower your cost. Unfortunately, it cant do anything about that. Now that you know the truth. Are you in good hands . Why accept it frompt an incompyour allergy pills . E else. Flonase sensimist. Nothing stronger. Nothing gentler. Nothing lasts longer. Flonase sensimist. 24 hour nondrowsy allergy relief david we have some breaking news out of israel. Prime minister netanyahus opponent benny gantz has declared victory in israels elections. You have more on this . Ashley this is going nowhere fast. Gantz, the former army chief of blue and white party, yes, he may have the lead but its like. 77 after the election two days ago. This is deadlocked again. The idea of a unity government where two parties, perhaps gantzs party and netanyahus party comes together. Gantz says no way. What happens now is the israeli president rivlin will meet with the parties separately and try to decide if he believes one of them can actually form a government that can get a majority. David the dealmaking thats going on right now. Ashley third election looking likely. David secretary of state mike pompeo accusing iran of being behind the saudi oil attack, calling it quote, an act of war. Heres what President Trump said about military action against iran. Roll it. Well see what happens. A lot of things could happen. We could have a peaceful solution, thats good. Its possible that that wont happen. But theres never been a stronger country militarily, not even close. David joining us is congressman adam kinzinger, republican from illinois and former air force pilot. Congressman, nobody wants a war but on the other hand, the iranians keep racheting it up. We dont do anything, they keep racheting it up. We are tightening, we are squeezing them economically but should there be something more than that . Absolutely. Think about it, theres really three options but taking the history basically from 1979 on, this is nothing new with iran. Now, its been speeding up here pretty recently as we saw with the drone attack which, by the way, was the economic equivalent of losing ten f16s. It wasnt a small your uncles barbecue drone. The size of an airliner. The president should have struck then. But i think whats happening is iran is going to continue to push the limit until they provoke a u. S. Response. Its like if a bully is pushing you around, you got to punch him in the face. Thats where were at right now. He can either strike oil fields, the equivalent oil facility in iran, he can take out the military equipment iran used or what i think is actually maybe even better is going after iranian assets in syria. I think thats proportional. I think it would have an impact and look, too, the israeli strike iranian assets in syria all the time with no response. David i didnt realize that we were not doing that. We were not going after their financial interests. A lot of new yorkers, by the way, are dreading the coming u. N. General assembly because the streets get more crowded than usual. Its a big mess. Is there any way we can keep the iranians from coming there . It is on u. S. Soil. I know its historically open to all parties no matter how obnoxious they may be, but what about keeping iranians out of new york . Yeah, its possible. I dont think it will be done because of just what you said, its kind of considered basically a diplomatic immunity zone to bring all these World Leaders together and of course, iran has a big stake in terms of some of the happenings in the middle east now. But i hope that iran finds a very unfriendly audience in the u. N. I hope the people, you know, like kneejerk blame america stuff is getting pretty old when all you have to do is look at yemen, for instance, and see that the iranians overthrew the legitimate government of yemen and put only military aid in there and no humanitarian aid. Really bad nation doing bad things. David quickly, what do you think their next move will be if we just keep on the economic track and dont do anything militarily . It will be something else. It will be another tanker seizure, another strike somewhere. David do we have to wait for an american to die before we do something . I dont want to wait until an american dies. I want to stop them from killing americans. Yeah. Thats my concern, too. Because that will be eventually happening, more than likely, and then we will be forced to respond. Better to punch the bully early and shut him up. David congressman kinzinger, you make a lot of sense. Appreciate it. Take a look at the futures. Markets are up after having been down for most of the morning, though they have lost a little steam. They were up in the futures about 58 moments ago, now theyre up 40. Still a good sign, all the indices are up. Well see what happens in about 14 minutes when the markets open. Meanwhile, the American Airlines mechanic who allegedly tampered with a plane before takeoff had ties to isis and propaganda from the terror group on his phone. What more did he have . Was he actually in contact with isis . That story coming next. Imagine a world where nothing gets in the way of doing great work. Where an American Icon uses the latest hr tools to stay true to the family recipe. Where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. Where the nations Biggest Party store can staff up quickly as soon as its time for fun. This is the world of adp. Hr, talent, time, benefits and payroll. Designed for people. Now you can, with shipsticks. 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Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. David cbs, warner media and viacom all say no more ecig advertising on tv, including juul. Kristina partsinevelos has more on this one for us. Thats about 2. 2 million worth of ads in just two weeks theyre pulling according to ispot, a company that measures advertisements. Why they are pulling it is because theres still no final word as to the safety of these ecigarettes. They are still investigating. We know theres been seven deaths, 400 people that have been fallen ill after vaping. We have talked about this before, the big thing is what is the issues smoking vaping products with thc, is it nicotine or the black market for all the flavored goods. We know juul is one of those major advertisers. Their products are being pulled from shelves. The flavors are now illegal in the United States, india banning all ecigarettes. China pulling a lot of the ecigarette advertisements from retailers. You are getting it across the globe. Those companies you mentioned, viacom, cbs, warner media, said they may p