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covering it all at the white house as it goes down. hi, kevin. good to talk to you, and you are right, no shortage of topics to discuss between these two world leaders. i find it very interesting the body language. you need tanya ryman out there walking us through what we saw there appear those pictures were quite dramatic and obviously the two leaders will get a chance to address the press very shortly here at the white house. let me give you a tick-tock of some of the things that you leaders are expected to discuss. they have plenty to talk about, most notably, they will be talking about trade, after all, merkel is bringing the ceos of several big german companies including bmw and siemens to the white house. they will talk about cooperation especially in the war on terror, migrant crisis that continues to show no sign of letting up in europe in a very frank conversation about the role of the u.s. and nato. the president has been skeptical of the body frankly because he felt like the u.s. is shouldering more of the bird and then it ought to. it is said that you are supposed it spent about 2% if you re in nato, germany is close to spending 1.2%. we strongly support nato, we only ask that all of the nato members make their full improper financial contributions to the nato alliance, which many of them have not been doing. many of them have not been even close. and you have to do that. you could say germany is closer than a lot of the nations in nato. it is also a good bet that they are going to talk about the refugee crisis. obviously, it has been overwhelming many nations in europe. the president critical of the german chancellor for allowing a million refugees into germany. it is also expected that the president will ask angela merkel her opinion about dealing with vladimir putin. keep this in mind. she s been in office an awful long time, they have met more than 20 times, that you read leaders during their time in office, and so it might be good intel for the president to see what merkel has to say about him. and this conversation of wiretapping, we talked about that, right? this idea that may be president trump was wiretapped by some other country, and it is a controversy to say the least. the white house has talked about it. going to talk about it and see if it happens during the press conference coming our way supposedly at 1:20, doesn t look like it s going to be on time. leland: back to the white house as it happens, thank you, kevin. heather: meantime right now, new outcry over the president s budget proposal, boosting spending for the military and border security while slashing funding for agencies like the state department. house democrats say that the america first plan, that is what it is called, would have a devastating impact on american families. the epa says that the cuts will hurt the great lakes amongst some other things and the nypd said that the cuts will leave new york city more vulnerable to terrorism. john bresee is an associate editor for the wall street journal and joins us now with more. so the debates begin that this is going to take a wild to resolve. that is the right way to think about ap this is the opening salvo, political statement by the trump administration. no huge surprises here, this is what he was talking about on the campaign trail, boosting military spending, cutting a lot of other so-called discretionary spending. there is a good story on this in today s journal that looks at what constitutes those cuts. there interestingly even though congress will write the budget so it now goes into rewrite and congress in a lot of mulling heather: that always happens. this is how it works, so this is the president s proposal, congress writes the budget, they put stuff back in, take stuff out but very interestingly, he a lot of the cuts that the president is proposing are in areas that were profoundly pro-trump in the election, things like the appalachian section of the united states would get fairly significant cuts in the aid that goes to the appalachian area. heather: the governor of kentucky had something to say about that, going to the president and suggest ways to keep those programs. even paul ryan has been muted on his response to the budget. everyone is looking at this and saying, they are going to be cuts to meals for seniors, school kids, that affects my more impoverished areas. rural areas, these were zones that the president really appealed to in cultivating the kind of movement, the kind of political action that resulted in his getting elected. heather: 21% cut in the department of agriculture also attacking rural farmers, so there is a lot. why do you think he did that? i think, again, this is a president who is keeping the message and so there is a little bit of public relations in this, you elected me to do these things, i am doing these things. but now, the congress will take over, you can always blame congress for putting the money back in. the issue is also going to be where is the spending going? heighten military spending, border security. heather: those are things he talked about in the campaign. director mick mulvaney said yesterday that you can take a look at what he said in the campaign and that is what they put in the budget. exactly right, omb director, and he was very clear on this, very compelling at the press conference for he said we are being compassionate here even and cutting meals on wheels because we are being compassionate to taxpayers who are paying for programs that we, the trump administration, feel are not performing as they should. that is widely open to debate, and it will be debated now whether those are effective programs are not. but the language that you just described, articulate it by mick mulvaney yesterday, was part of the campaign speech. the issue now will come down to the spending for military and border security, doesn t need to be as high as the president proposes? heather: he also talked about one specific example along the lines of what you were just talking about, it kind of made sense to me. why should you have a coal miner nursing a mom at home paying for pbs when he was talking about cuts to the arts. that could be an enormous debate and there will be those who say the public broadcasting system plays an important role in forming the american public or the arts play an important role in enlightening the american public. these will be debates that take place. the monies that are being spent there are not as significant as some people might think. some of these programs that are being cut. still, they are going to get trimmed. heather: i want to ask one more important thing because it s going on today. with the crisis in north korea, we have rex tillerson over there right now. do you think the cuts to the state department need a second look? the defense department has said for sure that it does. we need our diplomats out front, making sure that we do not walk into military operations that we could have precluded through diplomatic negotiations. north korea is a separate issue, though? we ve got 20 years of this with north korea. this was coming to the fore during the obama admission or in this administration. something has to happen here. it either has to happen diplomatically with china putting the pressure on north korea or some other mechanism to force and forestall a bigger problem down the road. heather: in the meantime, tillerson said he could make it work with the budget cuts. he said he could do it more efficiently. these are significant cuts in the state department. these are not small. these are major cuts in our efforts and ability to project ourselves diplomatic abroad. heather: we were just talking about march madness, and this is like you would say the opening shot of the game, by no means is anywhere near the final. the debate begins. heather: thank you so much. leland? leland: a lot of debate about this story as well. house lawmakers want to know if the intelligence community is following their own protocols when it comes to protecting the identity of americans during foreign surveillance peer chief intelligence correspondent catherine herridge lift from our d.c. bureau with what this all means. thank you. with today s deadline looming, the house intelligence committee wants the cia, nsa, and fbi to explain who in the administration identified among americans whose phone call conversations were tapped during foreign surveillance? they call this incidental collection which is when a foreign element like the russian ambassador is tracked and then the foreign messages or text messages of an american is picked up, based on our reporting, that is how michael flynn s communications were captured paired with this letter, the committee is asking if others from the trump team and clinton campaigns were involved. i have been very clear about my concern about number one, the incidental collection, how that was put into a product, how it was unmasked, how it was leaked to the public, several crimes have been committed here. meantime committed senior democrat on the house government oversight committee released a new document late yesterday that showed my claim was paid more than $33,000 by a kremlin backed tv outlet to appear at a 2015 moscow event where he sat next to the russian president. the democrats are calling for an investigation because they say that payments may violate a constitutional provision that bars gifts from foreign governments. leland: so many implications to this from the house side, we have the letter, how is the senate intelligence committee playing in? also yesterday afternoon, we had the joint statement from the republican chairman richard burr and the ranking democrat mark warner, both on the senate intelligence committee, and it really went beyond the presidents wiretapping claim, and it stated they see no indication that trump tower was the subject of any kind of surveillance either before or after the 2016 election. and for some context, this statement has a lot of weight because the senate committee leadership has access to some of the most sensitive intelligence. meantime, we have heard from another former senior intelligence official, and he says there is no evidence of collusion between russian intelligence and the trump campaign. we don t have that obviously, but i can tell you that is what he said. and we will get more at the briefing. take my word for it. leland: you know, we always take your word for it. i am honored by that. leland: with that, a very happy st. patrick s day. see you next time. leland: heather, better luck with this. heather: if you trust anybody, it is catherine herridge. we are minutes away from the start of a joint news conference with president trump and german chancellor angela merkel, we will take you live to the white house as soon as it begins. plus, an up close look at the majesty of mother nature. taking a wrong turn, sparking a mad dash to get out of the way. roller derby. now give up half of em. do i have to? this is a tough financial choice we could face when we retire. but, if we start saving even just 1% more of our annual income. we could keep doing all the things we love. prudential. bring your challenges. youthat s why you drink ensure. sidelined. with 9 grams of protein and 26 vitamins and minerals. for the strength and energy to get back to doing. .what you love. ensure. always be you. itbut one i think with quesa simple answer. we have this need to peek over our neighbor s fence. and once we do, we see wonder waiting. every step you take, narrows the influence of narrow minds. bridges continents and brings this world one step closer. so, the question you asked me. what is the key? it s you. everything in one place, so you can travel the world better. heather: welcome back, ten people injured during an explosion, massive eruption at out at sicily. look at that, a film crew catching and all on camera, first eruption sending smoke and steam billowing into the air. you hear some screams there, also followed by a second explosion raining rocks and lava. people scattered to get out of the way. no one was seriously injured, but some folks did have to go to the hospital. scientists say this happens when lava flows over snow, creating high-pressure pockets of steam. you learn something. leland: fox news alert as we await the start of the joint news conference by president trump. you see the picture from the white house, scream left, german chancellor angela merkel will be there with the president, top on the agenda, talking terrorism, strengthening nato, and paramount is forging a new relationship after both leaders, shall we say were critical of each other during the presidential campaign, and that may be talking about it nicely. to talk about that, fellow with the foreign policy initiative and author of the new book the end of europe dictators, demagogues and the coming dark age. it sounds like a warm and fuzzy read, doesn t it? very uplifting. you always see, and we are going to get to the body language between these two leaders in a minute, but you got the sense there was an attempt at diplomatic niceties, then below that is the undercurrent. we know that president trump during the campaign said that german chancellor was ruining germany with allowing immigrants in, said what she was doing was insane, all of these really incendiary words. what are we looking for here? or you as an expert looking for here during the news conference? i think the two most important issues are going to be on security and trade. security, clearly the threat from russia which is continuing to wage a war in the ukraine and is threatening nato allies in eastern europe. i think chancellor merkel is going to want strong assurances from president trump that the unitommitted to nato. the comments he may direct the campaign of it being obsolete, making american support for nato conditional upon the amount of money its members paid on their militaries, that was very worrying to our european allies, and she s going to want him to come out and say the u.s. stance by nato because it is the bedrock of our alliance. and then on trade, germany a huge export economy, 50% of all german jobs derive from exports, german companies employ over 600,000 americans, and she has brought with her the heads of some very big german corporations, b&w, siemens, all of which have supply chains here in the united states. the protectionist rhetoric coming out of the administration over the past couple weeks is also very worrying to germans, so she is going to want a commitment that we are going to keep open trade between europe and the united states. leland: is going to be somewhat of a comp heated conversation for president trump who loves american jobs, think about portion of the huge factory here, mercedes-benz, bmw, all have factories inside the united states, employing americans, so it is not as easy as shutting off the border to say we re going to put a tariff on this car or that car. now onto this personal relationship. we know angela merkel and president obama had a very close relationship. kevin corke talked about that earlier. now we roll the tape of the first time that president trump is with the german chancellor, and shall we say, the body language is frigid. a kind of reminds me of president obama and benjamin netanyahu sitting there. let s not forget donald trump probably attacked angela merkel on the campaign trail more than any other world leader which is saying something when you think of the fact that germany is one of america s strongest allies. it was almost entirely over her response to the refugee crisis. he was really doing this for domestic political purposes, and i think the german chancellor understands this. she has dealt with some really tough guys. she s been in office since 2005. she has dealt with vladimir putin s ups and downs, speaks russian, famous photo of vladimir putin in their first meeting with merkel where he brought a dog into the room, knowing that she is afraid of dogs. there is president recep erdogan and turkey who had a very rough elation of the germany over the past few years it has called germans and chancellor merkel all sorts of names. there is a reason why the german people call angela merkel mother, she is sort of this reassuring figure, and she is almost like a mother figure dealing with these may be men. leland: the way you are talking about merkel leads me to this headline that we saw in reince priebus this morning. the leader of the free world meets donald trump. shocking on its face, but the way you talk, seems like you almost believe it. i think she is may be the default leader of the free rub pit obviously, germany does not have the military prowess or a global power that the united states does, but if we are talking about the liberal international order that the western countries have upheld since the end of world war ii, donald trump has really fundamentally question some key aspects of this. he does not seem to think the u.s. should play the same international role in upholding this order as previous presidents have. leland: you say that, though, and all of a sudden we have rex tillerson the secretary of state changing decades of u.s. policy when it comes to north korea, talking about the possibility of preemptive military strikes. as always, thank you for your insight. stick around. news conference coming up in a few minutes, and we will appreciate your analysis afterward. thank you. heather: we will come of course, have that for you. are awaiting it, president trump set to take some questions with german chancellor angela merkel following their meeting at the white house. we will cover it as soon as it happens. le want. honey, do we have like a super creamy cheese with taco spice already in it? oh, thanks. bon appe-cheese! okay. time for the can-am ispring fever sales event.year. get a cash rebate of up to $3,000 on selected models. or get the outlander l, starting at $5,499. don t miss out. visit your local dealer for details. hurry, offer ends soon. can-am. the ride says it all. heather: fox news alert for you, we have an update on the white house intruder from late last week, remember that? fox news capitol hill senior producer joins us now on the phone with some additional information, something new you have learned from a very disturbing. we are hearing that the white house interlude. interloper may have been on the property for 15 minutes last friday night before he was detected. i m told he came within close proximity of the white house and may have even jiggled the door to the white house. remember, they arrested him as a suspect here, charged him with carrying a dangerous weapon, getting close to a restricted building. said he had two cans of mace. but i also learn here is the house oversight committee chairman jason chaffetz has just fired off a little letter to bill callahan, acting director of the secret service, asking for retention of documents to make sure that they are straightforward here. that has not always been the case with the secret service. remember a couple years ago, there was a situation in september 2014 where omar gonzalez penetrated the white house property and actually got into the white house, in the secret service did not tell the truth that the suspect got that far in and flat out lied. that cost pearson who was then the secret service director her job. now congressman jason chaffetz has sent a letter to the secret service. he wants to know just how bad this was, and he wants more information on this by march 20th. they have been 143 security breaches at the white house over the past decade, and as congressman jack jason chaffetz says, this keeps happening over and over again. we have not had one and a wild but they want to get to the bottom of it. heather: i was wondering what is causing the discrepancy. i look this up, sean spicer was asked about how the secret service handles this situation right after it had occurred, and he said secret service did a phenomenal job and that they continue to provide phenomenal protection to the president and the first family. but if he was on the ground for 15 minutes, does that sound like a phenomenal job? even the president of the united states said that today, he said it was a fantastic job and said the suspect was troubled, and very bad, that is why you look for a pattern. there were problems under julia pearson when she was the head of the secret service, even this issue where the white house was shot at in 2011, president obama at that point was not there in november 2011, they did not even find damage to the building until a housekeeper and the president s residence found it some days later. the issue with that was that, i remember trey gowdy, congressman from south carolina, asked pearson, there seems to be gunfire in the area, and he said, the white house, can you hear at night is what he said. this is the white house, they need to protect this in a better form and are not doing it. heather: joining us live with some breaking information, we appreciate it, thank you. leland: fox news alert as we are awaiting the joint news conference of president trump and german chancellor angela merkel. they are going to take questions following their first ever meeting at the white house, potentially their first ever meeting ever. this comes as the two leaders set aside some differences, you might say, to try to strengthen some transatlantic ties, business ties as well. we are awaiting a tape player out of a business roundtable discussion that is going on right now between the president, the chancellor, and then some business executives from both countries along with them. joining us to talk about it all, emily scheier, political editor at bustle and a columnist at the washington examiner in republican poster. ladies, nice to see both of you here. we were talking about this with james a little bit earlier, you could feel through the television the uncomfortableness, shall we say, perhaps one of you has a source coming, if you have a tip, let us know. you can feel just how uncomfortable those leaders were in the oval office. you have to wonder if over the next 30-40 or so minutes before this news conference they can break the ice. angela merkel and donald trump have very different worldviews, very different postures on what borders should mean, how open those borders can become who you should or should not welcome into your country. so donald trump has used angela merkel as a foil for a long time. she is under fire in her own country because she has taken a very welcoming posture toward refugees coming from syrian conflict, and that created friction over in germany. you also over in europe have the e.u. where you have angela merkel and germany having a very strong role in that institution, and in some cases, there are voters in germany who think germany is doing too much to help out countries that have more struggling economies. donald trump on the other hand takes the view, america first, we have to make sure our borders are secure. it is the contrasting message to what merkel has been staying at home, and those two forces are in tension which is why this meeting is so fascinating. leland: we will have to see these two leaders, road leaders take the stage, traditionally the united states and germany are close allies. they are speaking to different audiences, as you note, now we listen to the president inside a business roundtable. chancellor, thank you very much. such a great honor to get to know you, to be with you. i want to thank all of the business leaders who have joined us to discuss a subject that is very important to me, training our workforce for the 21st century, especially with respect to manufacturing jobs. we are working every day to bring back jobs to our country, and thousands and thousands are already coming back. you are seeing it and reading about it in the papers every single day. we want to make sure we have the workforce development programs we need to ensure these jobs are being filled by american workers. germany and the united states have incredible opportunity to deepen our partnership as we continue to develop a strong workforce in both of our countries. both germany and the united states are pioneering job-training programs here in the united states, companies have created revolutionary high-tech and online courses. and of course, for decades, germany has been a model for successful apprenticeship is what i like as the name, apprentice programs. as a result, germany s youth and an employment rate is much lower than many of the other countries, especially the e.u. countries. i welcome collaboration between our two countries and are industry leaders. we have some of our great industry leaders here, as you know, chancellor. great people. we must embrace new and effective job trading approaches, including online courses, high school curriculums, and private sector investment that prepare people for trade, manufacturing, technology, and other really well-paying jobs and careers. these kinds of options can be a positive alternative to a four-year degree. so many people go to college for years, they don t like it, not necessarily good at it, but they are good at other things like fixing engines and building things. i see it all the time, and i have seen it when i went to school, i saw it. i sat next to people who were not necessarily good students, but they could take an engine apart blindfolded. companies across the country have a chance to develop vocational training programs that will meet the growing needs and to help us achieve greater prosperity. the german apprenticeship model is one of the proven programs to developing a highly skilled workforce. germany has been amazing at this. i am glad that the leaders of so many companies representing have launched a successful programs here in the united states. we need that because we are training people as the jobs are pouring back in, and they are coming back in big league. i believe that both countries will be stronger if we deepen our bilateral cooperation on vocational training as we built off the best ideas, create the greatest opportunities for growth and improve the lives of so many workers. i want to think everybody in the room, think my daughter ivanka who is with us today and mostly and most of all, i want to think chancellor, thank you very much. it s a great honor to have you at the white house, great honor to have you in the united states, and i look forward to spending time with you. thank you. spacing with that, the president inside a business roundtable come after that they typically go around the roundtable and introduce the business leaders and have a couple laughs before they get to business. back with the panel, emily and kristin, dressed in appropriate colors, dare i say, for the conversation. emily, to you, it doesn t strike you when you listen to and watch angela merkel and the president that they are speaking to very different audiences. angela merkel now running for reelection in germany. she has got to speak to her domestic audience. at the same time, president trump inside his first 100 days and wants to drive home this idea of job creation, job growth, america first that worked so well for him during the election here. absolutely. donald trump supporters love the things that angela merkel is the exact opposite of. when it comes to support for nato, donald trump supporters disproportionately thought that belonging and nato was a negative, more than 30% according to most research post compared to 60% of overall americans who thought nato was hurting the u.s. donald trump supporters tend to want to pull away from the global leadership role. and angela merkel has come to stanford taking in so many refugees and immigrants, not only do downtime supporters but even many more americans were supportive of the travel ban, and you do not necessarily want to see donald trump bent on it the way and go over to angela merkel s side. what is interesting about listening to him talk right now is that he did, albeit in a less enthusiastic way, talk about german unity. he did not talk about import taxes, did not talk about trade imbalances, did not talk about threatening to pull funding from nato. it is really interesting that he did at least make an effort to try to emphasize things that they had in common, emphasized the sense of unity, certainly show somewhat of a sense of respect despite the earlier frosty photographs we saw from today, so it definitely seems to be in a slightly different direction. leland: we heard great honor, thank you for being here, welcome to america. chris didn t come from the posterior standpoint here, noera democrat or republican, conservative or progressive in europe, creating jobs for people is issue number one, it is the economy, stupid. where are these two leaders if they can find common ground, does that offset the differences emily just talked about when it comes to nato, when it comes to refugees, issues of islamic terror when it comes to their country s place in the world. you are right, the economy can trump almost anything, and hear the subject of the meeting they are having as apprenticeship programs, job trainings. germany has been an engine of european economic growth for a while. the way they are labor markets work, the way their economy works has allowed for more robust growth, and you have seen some other economies like italy or spain, so that has meant that donald trump would want to say, look, angela merkel may be doing things at the border i don t lie, but she has created economic growth there, the kind of growth i want to create here only we are going to do it even better here. so there is that subject they are talking about now, laughed when he made a joke about the apprentice when he was talking about the apprenticeship program, but talking about job training, workforce development is a place where there is room for common ground. the question is can that be enough for angela merkel to make the argument to her voters, look, let s keep doing and building on what has already made germany degrade over the last nearly a decade instead of changing course and following with these crises with refugees. leland: she is facing a much stiffer challenge than she thought she would from this populist movement, the one that brought donald trump in. more on this after the news conference with both of you. thank you for being here, ladies. emily and kristin, stick around, we may be back to you as things wrapped up there at the white house. we will see if they agree as much in private as they certainly seem to you in public there with the president talking. thinking both. thank you both. heather: we will bring you there live when it happens as promised. in the meantime, big story with the president s revised travel ban hanging in the balance, federal judges in hawaii and marilyn have ruled against the man and many come you see here, judge james robards of washington state has yet to rule after hearing arguments from immigrants. of course, the white house could appeal those rulings. jonathan hunt is live for us in los angeles. what are the next steps? the ball is very much in the court of president trump right now in every sense if you like. the white house have not told us specifically what their next step will be, but they have made us very clear that they are going to appeal both of these rulings from the courts in hawaii and maryland. listen here to sean spicer, the white house spokesperson. the danger is real, and the law is real. the president was elected to change our broken immigration system and he will continue to exercise his constitutional authority and presidential responsibility to protect our nation. the question is which venue the trump administration chooses to do that in? in terms of the hawaii ruling, they could appeal to the ninth circuit come but remember, the administration has already lost once and that court venue. in maryland, they could look at the fourth circuit, but there are those who believe that instead of going to the circuit courts, the administration should slow down if the appeals process and wait for the president supreme court nominee neil gorsuch to be confirmed and then let the supreme court rule on the case. the danger of the waiting approach, of course, is it tends to undermine the white house argument that this is an urgent national security issue. heather: and mr. trump s own words coming back to bite him in this case. absolutely, both judges made reference to this comment we all remember from the presidential election campaign. listen here. donald j trump is calling for a total and complete shutdown of muslims entering the united states. as i say, the judges in hawaii and maryland both mentioned that statement and others from trump s advisors as evidence that the travel ban is religiously motivated. they also suggested the administration haven t proven that immigrants court tourists from targeted countries were any more of a national security risk than they might be from many other countries. the bottom line is that president trump faces an uphill battle legally speaking to get this travel ban instigated, although he insists he absolutely has the right to follow these travel ban steps and believes ultimately he will be able to do just that. heather: a lot of the legal experts we have talked to says the judge was completely overreaching, he was not supposed to include his opinion of rhetoric during the campaign in his decision. we will see what happens. asked to lawyers for an answer on anything come you will get different answers, or three if you pay enough. heather: good point, thank you. leland: any minute now, you make it a lot of answers from this press conference at the white house. you can see the number of reporters that have taken position, audience just waiting on president trump and angela merkel. they are meeting inside the oval office, and it was shall we say, frosty. in the past, we have seen frosty meetings in the oval office and up and result in frosty press conferences. clearly, two leaders with very different worldviews about to take the stage there at the white house. back to the white house live when it happens. i ll never find a safe used car. start at the new carfax.com show me minivans with no reported accidents. boom. love it. [struggles] show me the carfax. start your used car search at the all-new carfax.com. whattwo servings of veggies? v8 or a powdered drink? ready, go. ahhhhhhhh! shake! shake! shake! shake! shake! done! you gotta shake it! i shake it! glad i had a v8. the original way to fuel your day. heather: welcome back pure first of all, wants to tell you as you look there on the side of the screen we are keeping an eye on the east room in the white house where it chancellor merkel and president trump will be giving a press conference shortly, and as soon as that happens, we will take you there, we promise. in the meantime, it has been a very, very busy day news widespread we have some new details on a potential timeline for the g.o.p. health care bill and the house. house rules committee chairman says that he expects an all-day session on wednesday. the rules committee is the final stop before a bill hits the house for which then could happen on thursday. this comes as house republicans are showing a more united front today, if you been listening in the fight to pass the american healthcare act, republican greg altman is chairman of the committee and wants me now with mark, thank you very much for joining us. apologize ahead of time because we might have to cut you off. understood. heather: this has been a priority for you for some time. how do you feel about the things we have been hearing today? the president now throwing his support behind it, speaker ryan as well, secretary price. i feel really good. i think what you are seeing is what happens when a president that is known for his negotiating skills and rolls up his sleeves and negotiates well. so we are in a really good place, getting better. we have the cbo score, we know we need to make a few adjustments here and there appeared dr. price is going to make a lot of changes in the market that will bring about lower rates for insurance and better opportunities for people, better choices, so we have a lot of doomsday people out there who don t understand this will take some time like a couple years, and we will have rescued the market, and have something much better than obamacare with returning power to the states, and i think the president has done a great job moving it forward. heather: the president has made it clear he is open to negotiation, open to changes. what do you think those changes would or could be to bring everyone on board? you need 218 in the house to move forward. i think again it is back to making sure that the medicaid program works effectively and some options for the states. am i getting into all of the details here because some of these discussions are still going on, but you saw today, the biggest block for republicans in the house, the committee came out with a meeting with the president, went to the press and said we are fully on board. that was a big move forward. they ve been a terrific player in this process. we have worked with them closer, the speaker has, i have, the president has, vice president, dr. price was in our conference today speaking with the new head of the centers for medicare and medicaid, she is terrific, innovative, really we want to get to a patient-centered system that works better than the one we have today. heather: i was just looking at my notes because right before we begin this hour, there was this information that passed from our guy up at capitol hill, the g.o.p. governors there, governor john kasich from ohio, michigan, nevada, you know where i m going with this, arkansas, they sent this letter and are saying that what you were just talking about, there is still not enough leeway here for the states. i don t blame them for wanting more flexibility. we cannot do all of that in the legislative confines in which we have to operate under the senate rules. what you have is dr. tom price now over at hhs, health and human services, with forton hundred 42 different authorities under the law where he can make a lot of the changes. he has written a letter back to the governors to say come forth with your requests for flexibility in your states. we stand ready to work with you in partnership, and there is a lot more to come. give us a little time to get it done because there are a lot of steps along the way both at the administrative side, legislative side, and then the third pocket we talked about where we are going to tackle the issues of tort reform, medical liability reform, that drives costs through the roof and causes extra procedures to hold up lawsuits that are unnecessary. we are looking at the ability to do association health plans, buy health insurance across state lines, there are lots more things to come into this market which will bring reforms and bring more choices for individuals and our goal is lower prices. heather: what about the more conservative members of the republican party who have a problem with the reliance on these tax credits? it is interesting because many of those who are speaking out today have acted as cosponsors of legislation in the past that has done very similar things. i think as we have an opportunity to sit down and work through what this is, why it is important, we don t want people to fall through the cracks, don t want people to be out there with insurance they cannot afford. these tax credits really matter peer they are actually a good private sector conservative viewpoint that has been embodied and embolden along the way. we have all had this support in the past, so we have to get it right, we are listening to them, but we are going to move forward on this. i will be before the rules committee next week for the better part of the day, then we will have it on the house floor on thursday. heather: here s the thing. you are relying on people to have this choice and go ahead and purchase this health insurance. what if they don t? this is america. by the way, it is like saying do we have a federal requirement to watch fox news or pay a penalty to the irs, this is the same sort of thing. your ratings might change, not saying they would, but if you took the mandate off, people might make a different choice. we don t force you through the irs to buy anything else i am aware of other than to pay your taxes. why would we do it on healthcare? the problem is people are not buying it because the program isn t working. it is failing, collapsing, prices have gone through the roof in my own state, 50% of the last few years, the individual market in 1,022 counties, 1 out of every three, people have one choice and that is before humana pulled out. if we don t rescue the market and stood back and did nothing, this market will collapse. people in many states in some states, i should say many counties will be left with no choice on the above exchange appeared we have a responsibility to fix that before that happens. heather: a lot more things to be taken place, we will see if it heads to the floor of the house next thursday as there are a lot of promises today about that. thank you very much for joining us. you re welcome, thank you. leland: the white house now running 30 minutes behind, scream left, you can see the two podiums set up for a president trump and german chancellor angela merkel. they will take the stage shortly, facing press from both the united states and germany as well. bring it back in james, fellow with the foreign policy initiative for a little more insight and analysis. this is just crossing the wires in the past couple minutes from thompson readers. white house official says trump pressed merkel hard about nato s dues in meeting. we don t know whether that happened before or after that video we talked about where they were, shall we say, a little frosty in their body language toward each other. this has been the big sticking point, and we heard from president trump who hasn t changed a little bit on this. he is to say i m not sure about nato, now he says he is sure about nato but he wants everyone to pay their fair share. germany has a robust economy, not exactly leading the way in terms of paying their full weight. it s been a bugbear for him over the past year and a half. let s be clear about what is required. it is by 2024, the countries of nato are supposed to spend 2% of the gdp on defense. leland: i thought that was from the very beginning, the formation of nato. no, this was agreed to in 2014 at the wheels nato conference, so they set a marker threshold that by 2024, all countries would reach that hurdle, five of them do including the united states. it takes time, and it s true, germany should spend more on their defense, they only spend 1.3%. what s remarkable is a lot of the countries in eastern and central europe who had a difficult history with germany many decades ago want to see a more assertive germany militarily because they fear russia. they want their germans to spend more money on their defense and to perhaps even send soldiers eastward into their countries to permanently deploy them in the baltics and poland to serve as a stronger deterrent against moscow. leland: speaking of moscow, angela merkel has had a lot of experience in terms of taking on vladimir putin although some would say that she caved a little bit, especially when it comes to ukraine. how influential would she be in brokering, if there can be, some type of deal or a good relationship between the united states and russia? is president trump try to use her in some way as a good cop/bad cop routine? i would have preferred her to be stronger on ukraine and giving them defensive weapons, but you have to understand there are many countries in the e.u. she has become basically the de facto leader. she has to account for all of the different viewpoints within europe. there was just no way that the e.u. or nato as a whole was going to give weapons to the ukrainians. she has held the line on sanctions. there are several countries in europe that have really protested the e.u. sanctionsther economy. they don t want to continue sanctions on russia. every six month, those sanctions come up for a vote in brussels, and for the past three years, they have been maintained. a lot of credit for that goes to angela merkel. leland: how does north korea play into this? this is the major foreign policy issue of our time here we know president obama and his very first meeting with then president-elect trump said north korea is a real threat that we are facing at this moment, not only their nuclear program but there icbm program. as this is happening at the white house, we are also seeing secretary of state rex tillerson in south korea changing decades of u.s. policy and suddenly saying preemptive u.s. military action is on the table. is that something these two leaders talk about? if so, is it something they find common ground on? absolutely. i think north korea is clearly a threat. more of a regional threat whereas russia is in much greater strategic right considering how it just borders europe it is meddling in european politics and threatening our allies there. absolutely come north korea is a threat. i think donald trump has maybe matured a little and office and has seen the importance of having strong alliances with japan and south korea, which are two other countries that he would attack quite frequently on the campaign trail just like he did germany s same date they were not paying us enough to have our soldiers there. i think he s come to appreciate now why it is an american interest to have 50,000 troops in japan, 25,000 troops along the 38th parallel in south korea. this is in our interest as a global power to contain north korea from threatening the region. leland: also as you would point out, hundreds of thousands of american troops, sailors, airmen, marines over in europe as well. always great to have you here. urinalysis is so good. going to ask you to stick around for a third time, stand by. heather has more. heather: were actually going to go to the east room where this is happening. our kevin corke is standing by to kind of set the scene for us. kevin, i also want to ask about this. this is just crossing, and this is important information. we just learned that a laptop has been stolen from a secret service agent out of his car. that laptop included floor plans for a trump tower, details on the criminal investigation of hillary clinton s use of a private email server, other national security information, including information on merkel meeting, chancellor merkel. what is being said about that, have you heard anything yet? i m glad you mentioned it because a number of people here in the press corps obviously are aware of this particular story. while i have not had a chance to ask the president specifically about that, certainly this will be a story that people will be interested in throughout this day. as you pointed out come the information apparently on the laptop can be wiped remotely according to security officials, so that would certainly be one level of security to consider. it is also important to point out that because this laptop apparently contain information about trump tower, there is a great deal of interest in that particular building, so it could be interesting to see what if anything the white house or secret service has to say about that as the day progresses. we will give you an update on what we do find out. again, multiple agencies reported that laptop was stolen in new york city, but we also are made aware of the fact that they are able to wipe it clean remotely. it is encrypted as well, and there are certainly confident right now they will be able to locate that laptop. that is a mystery that we are continuing to follow this afternoon. as you point out, also still waiting for the president and german chancellor to make their way out here. the rim is buzzing a little bit as we continue to await their arrival almost an hour behind schedule, but let me see. we are pushing 40 minutes behind schedule should they come out here. of course, i will step away and we will listen to the two world leaders. i want to point out one thing i think will be obviously discussed, and that is what the president has said previously in the campaign admittedly about this idea of germany taking on upwards of a million refugees. he was very critical of the german chancellor s decision to do that. it will be very interesting to see what if anything that you have to say about that here today. heather: thank you so much, kevin corke life for us. we will go back to you when it is warranted, thank you. a little bit more, though, the secret service has issued a statement apparently online regarding this laptop that was stolen out of a vehicle here in new york city, that is what happened. what does it say? leland: this is crossing from a number of folks saying that the secret service issued laptop contain multiple layers of security. this is what kevin corke was referencing including full disk encryption and are not permitted to contain classified information, adding to kevins reporting that these can be remotely wiped, a little bit like the find my iphone app, they have the same thing for the laptop. if it is turned on when it connects to the internet, they can make the hard disk erase itself, probably not summing the secret service is thrilled about having out there, especially after the reporting from chad that the white house intruder from this weekend was running around the grounds for up to 15 minutes. before being caught. it does hearken back to those times a couple years ago when the hits just kept on coming for the secret service. heather: information on that stolen laptop also includes evacuation protocols, we mentioned the floorplans at trump tower, but also the evacuation, and there was a source that said that all of this came to light after it was revealed that the secret service was investigating allegations that two of its agents assigned to protect one of the trump s grandsons were taking selfies as the grandson slept. lots to take a look at. leland: a lot for the secret service to answer for come this weekend. off to the 2:00 p.m. show, melissa francis is in, is that right? melissa, take it away. melissa: fox news alert for you, we are awaiting the start of a joint news conference between president trump and german chancellor angela merkel. hello, everyone, i am melissa francis. the president and chancellor merkel have had a strange relationship to say the least. since the presidential campaign. when mr. trump accused merkel of ruining germany with the influx of refugees, the refugee crisis in europe is the basis for the president s travel ban, he says, and is most likely one of the topics of discussion today. kevin corke joins us live from the white house with more on this one pure they are running a little behind schedule, right? they certainly are. i m glad you mentioned that because keep in mind these two leaders are speaking to domestic audiences as much are they are speaking to the international audience that will be watching this news conference very carefully here today. your requirement right, the present was actually in the critical of the german chancellor and the run-up to the election talking about the fact he felt like i taking on upwarda million refugees she was not ony changing the culture in the tons actually endangering the german people. you ve heard the president suggest that is important behind the reasoning of this so-called travel ban that we have heard so much about it has been shot down by the ninth circuit on a couple of occasions. i m sure that will

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